V-Mart Retail Ltd

- There is no indication of any current or future fundraising through debt or equity. - Management highlighted positive cash flow generation of INR33 crores in the current year versus negative last year. - The company has no long-term debt on its books. - Capex plans for new stores, refurbishments, and technology investments are funded through internal accruals and operating cash flows. - The business model is designed such that store EBITDA and cash flow generation sufficiently cover refurbishment and expansion needs. - No mention was made about plans to raise capital via equity issuance or taking on additional debt in the near or medium term.

- Capex for the fiscal year ended FY26 was INR 159 crores, spent on new store additions, store refurbishments, and technology investments including AI-led initiatives. - For FY27, the planned capex is estimated around INR 170 to 180 crores. - About 50-60% of fabric requirements for upcoming 6-7 months have been pre-booked to manage inflation and supply. - Store refurbishments are a continuous cycle occurring every 4 to 6 years to keep stores updated, with associated capex expected to continue. - Capex per store remains around INR 1.3 to 1.4 crores on average, including cases for slightly upmarket stores. - Additional capex spend beyond new stores and refurbishments is directed towards tech enhancements and backend infrastructure to support frontend store growth.

- V-Mart is confident of continuing strong same-store sales growth (SSSG) of around 5-10% driven by disciplined expansion and operational efficiencies. - New stores are opening with better-than-network throughput, supporting network-wide sales growth. - South Indian markets, especially Tamil Nadu and Karnataka, are key focus areas for sustainable, profitable store expansion. - Management sees large untapped opportunity in India, with over 60% retail still in unorganized sector, indicating strong room for growth. - The company aims to increase the consumer lifetime value and annual spend through better product mix including more aspirational and fashionable products. - Expansion plans include balancing store additions and refurbishments with technology investments (AI-led) to drive efficiencies. - Sales per square feet at Unlimited format expected to improve closer to V-Mart levels, though some delta will remain. - Management remains optimistic despite competitive and inflationary challenges; growth will be supported by internal efficiencies and vendor partnerships.

- Management aims to achieve medium-term PAT margin improvement, targeting 5-7% SSSG translating into better margins, but exact timeline is uncertain (Page 12). - Same-store sales growth (SSSG) is expected to sustain at 5-10%, supported by strong operational efficiencies and ongoing improvements (Page 17). - Margin expansion driven by operational efficiencies, supply chain improvements, and better inventory health is expected to continue (Page 7). - EBITDA margin improved by 220 bps to 10.9% in the last year; PAT grew 6x to INR124 crores with a PAT margin nearing pre-COVID levels (~3.3%) (Page 7). - Capex for FY27 is guided at INR170-180 crores focusing on store additions, refurbishments, and tech-led investments supporting growth (Page 7 & 15). - Management cautious but optimistic—competitive pressures and inflation pose risks, but loyal customer base (~72%) provides stability (Pages 17-18).

- V-Mart Retail Limited has already secured around 50% to 60% of its total fabric demand till December. - The blocking of orders for the forthcoming 6-7 months is in progress, with part already executed and part enclosed. - The company is working on longer-term fabric sourcing to factor in development time and ensure availability. - Efforts include securing production inventory well in advance, amid challenges like inflation and supply chain disruptions. - There is no expectation of a margin jump from this orderbook, but improved product availability and better value for consumers are anticipated. - V-Mart is also exploring alternate sourcing options, including imports, to mitigate raw material constraints.