V-Mart Retail jumps 10% on posting Q2 update; should you buy or sell?

V-Mart Retail shares jumped 9.5 per cent in trade, logging an intra-day high at ₹794 per share on BSE. The buying on the counter came after the company released its Q2FY26 business update.  At 9:39 AM, V-Mart Retail shares were trading 5.23 per cent higher at ₹763 per share. In comparison, BSE Sensex was down 0.23 per cent at 80,798.22. 

V-Mart Retail Q2 business update 

In the September quarter (Q2FY26), V-Mart Retail reported a total revenue from operations at ₹807 crore, as compared to ₹661 crore last year reflecting year-on-year (Y-o-Y) growth of 22 per cent. Its same store sales growth (SSSG) stood at 11 per cent for the quarter (V-Mart at 11 per cent and Unlimited at 11 per cent).  

The company opened 25 new stores and closed two stores during the quarter, bringing its total store count to 533 as at September 30, 2025. The 25 new stores include five stores in Karnataka, four stores each in Uttar Pradesh & Bihar, two stores each in West Bengal & Jharkhand, and one store each in Jammu & Kashmir. 

What should investors do?

Motilal Oswal reiterate its 'Buy' call on V-Mart Retail for a target of ₹1,035 per share, which implies an upside of 42.7 per cent from Wednesday's close of ₹725.1 per share. The brokerage believes strong 11 per cent SSSG should lead to further margin expansion.  In a report dated September 30, 2025, HDFC Securities raised its rating on V-Mart Retail to ‘Buy’ from ‘Add’. The brokerage has also hiked the target to ₹840 per share from ₹830, as it sees risk-reward favourable. The target price implies 15.8 per cent upside from Wednesday’s close. The upgrade comes as the brokerage highlights steady core performance, clear signs of recovery in the Unlimited (fashion stores chain of the company), easing losses at LimeRoad, and a sharp correction in the stock price since September 2024. 

In the past one year, V-Mart Retail shares have slipped over 35 per cent, as compared to Sensex’s fall of 4.7 per cent. HDFC Securities sees this stock correction as “overdone” as the performance of core V-MART stores has remained steady, while Unlimited’s turnaround seems decisively in play with 40 new stores added since the acquisition are now firing at 5-6 per cent pre-IND AS EBITDAM, as compared to 1.5 per cent for legacy stores.  Ebitdam refers to Earnings before interest, tax, depreciation, and amortisation margin. The format added 11 new stores (net basis) in the past four quarters, vis-à-vis a muted FY23-25 period. Limeroad (LR) losses continue to ebb.