The Daily Brief Diwali, discounts and disposable income: The value retail story
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Dec 2, 2025 Discover the surprising surge in value retail, with major players like Vishal Megamart and Vmart reshaping the market landscape. Learn how calendar shifts skew year-on-year comparisons and the strategies these retailers employ to attract price-sensitive customers. Explore SEBI's crackdown on DroneAcharya for misleading disclosures and dubious shareholder activities. Also, catch up on the latest market tidbits including EV trends and textile research. Tune in for insights into the evolving dynamics of consumer spending!
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Different Growth Paths In Value Retail
- Vishal Megamart, Vmart and V2 serve lower-middle-class India with value clothes and goods, but their growth paths differ widely.
- Seasonal timing (early festivals) distorted year-on-year baselines, complicating comparisons and analysis.
Vishal's Scale And Margin Edge
- Vishal Megamart grew ~22% and added ~100 stores while improving per-store sales and margins.
- Its operating and after-tax margins were the healthiest among peers, showing scale and efficiency.
Vmart's Profitability Is Fragile
- Vmart's revenue rose ~22% from store openings and same-store-sales, but profitability remains fragile after accounting adjustments.
- Reported margins look strong under Ind AS116, yet core profit fell to a small loss of Rs 9 crore.