Retailing Q3 FY2026: Digital Expansion and Profitability

Retailing Sector: Comprehensive Analysis of Market Dynamics, Financial Performance, and Strategic Trajectories

The Indian retailing sector is undergoing a profound transformation, characterized by rapid digitalization, aggressive expansion into Tier 2 and 3 cities, and a fierce competitive landscape. This comprehensive analysis synthesizes data from 17 diverse companies across various retail formats—from traditional brick-and-mortar and large-format stores to e-commerce, quick commerce, and specialized online services—to paint a detailed picture of the industry's current state, underlying dynamics, and future trajectory. Key themes emerging include the relentless pursuit of growth through network expansion, significant investments in technology and AI to enhance operational efficiency and customer experience, and a nuanced approach to profitability amidst intense competition and evolving consumer preferences. While traditional retailers like DMart, Trent, and Vishal Mega Mart continue their physical footprint expansion, digital-first players such as Eternal (Zomato), Lenskart, Meesho, and Swiggy are leveraging technology to capture market share and redefine convenience. The sector also grapples with external factors like new labor codes and shifts in festive demand, which introduce volatility but do not deter the long-term optimism driven by India's vast consumer base and increasing disposable incomes.

A. Industry Overview & Market Landscape

The Indian retailing sector is a dynamic and multifaceted industry, encompassing a wide array of formats and product categories. It is characterized by significant growth potential, driven by a large and aspirational consumer base, increasing urbanization, and rising digital penetration. The market is segmented across traditional brick-and-mortar retail, modern retail (hypermarkets, supermarkets, department stores, specialty stores), and a rapidly expanding e-commerce and quick commerce ecosystem.

**Total Addressable Market Size and Growth Rates:** The overall retail market in India is vast and continues to expand. For instance, the eyewear market alone is estimated at ₹79,000 crore today, with a potential to reach ₹4,00,000 crore by FY45, indicating a substantial long-term growth runway. Lenskart highlights that 500 million people in India need vision correction, but the market currently serves less than 5% of this need, selling only 25 million eyewear units annually against a requirement of 500 million. This significant gap underscores the immense untapped potential. Similarly, the international eyewear market (US$19.1 billion in FY25) is projected to grow to US$24.6 billion by FY30, with D2C eyewear market CAGR estimates ranging from 7-10% in Japan, 10-14% in Southeast Asia, and 15-20% in the Middle East.

In the digital services realm, Eternal (Zomato) reported a B2C Net Order Value (NOV) of ₹25,732 crore in Q3 FY26, representing a 55% YoY growth and crossing an annualized run rate of ₹1 lakh crore. This indicates a massive and rapidly expanding market for food delivery and quick commerce. Meesho, another digital giant, achieved a Net Merchandise Value (NMV) of ₹10,995 crore in Q3 FY26, growing 26% YoY, with a 9M FY26 growth of 37%. This highlights the substantial scale and growth in online marketplaces, particularly catering to value-conscious consumers.

**Market Structure and Segmentation:** The market is broadly segmented into: 1. **Offline Retail:** * **Grocery & General Merchandise:** Avenue Supermarts (DMart) and Vishal Mega Mart (VMM) are prominent players. DMart focuses on value retailing in hypermarket format, with 442 stores across India as of 9M FY26, and a significant revenue share from Foods (57.19%). VMM, with 771 stores across 517 cities, also targets the "aspirations affordable" segment, expanding rapidly in Tier 2/3 cities. * **Fashion & Lifestyle:** Trent (Westside, Zudio, Star), Aditya Birla Lifestyle Brands (ABLBL), Aditya Birla Fashion and Retail (ABFRL), Vedant Fashions (Manyavar, Mohey, Twamev), and V2 Retail are key players. Trent operates over 1100 "large-box" fashion stores, with Zudio aggressively expanding in Tier II/III cities. ABFRL manages a diverse portfolio from Pantaloons to luxury brands and ethnic wear. Vedant Fashions dominates the Indian wedding and celebration wear segment. V2 Retail focuses on value fashion in Tier 2/3 cities, boasting 294 stores. * **Electronics:** Aditya Vision specializes in consumer electronics, with 192 stores primarily in Bihar, UP, and Jharkhand. * **Pharmacy:** MedPlus Health Services operates 5,112 stores across 13 states, making it the second-largest pharmacy retailer. 2. **Online Marketplaces & Services:** * **Food Delivery & Quick Commerce:** Eternal (Zomato) and Swiggy are the dominant players. Eternal's Food Delivery NOV grew 16.6% YoY in Q3 FY26, while its Quick Commerce (Blinkit) NOV surged 121% YoY, achieving profitability for the first time. Swiggy reported 20.5% YoY GOV growth in food delivery and is aggressively pursuing quick commerce (Instamart). Urban Company provides home services, with NTV growing 36% YoY in Q3 FY26. * **General E-commerce/Social Commerce:** Meesho is India's largest platform by annual transacting users and orders, focusing on non-GST sellers and value-conscious consumers. * **Specialized Online Services:** * **Recruitment/Job Search:** Info Edge (Naukri) is the clear leader, with a dominant traffic share and strong presence in mid-segment and premium hiring. * **Real Estate:** Info Edge (99acres) is gaining market share, with increasing traffic and listings. * **Matrimonial:** Info Edge (Jeevansathi) is a leader in Hindi-speaking markets. * **Education:** Info Edge (Shiksha) is pivoting towards counseling and marketing services. * **Automotive:** CarTrade Tech operates #1 platforms for new and used cars (CarWale, OLX, BikeWale), auctioning 1.9 million vehicles annually. * **B2B Marketplace:** IndiaMART InterMESH is a leading B2B marketplace, connecting buyers and suppliers, with 221 thousand paying suppliers. * **Mother, Baby & Kids Products:** Brainbees Solutions (FirstCry) is the largest multi-channel retailer in this segment, with 1,202 modern stores and a strong online presence.

**Key End Markets and Applications:** - **Urban & Metro:** High-value fashion, premium electronics, quick commerce, specialized online services. - **Tier 2, 3 & Rural:** Value fashion, affordable general merchandise, basic electronics, social commerce, expanding reach of quick commerce and food delivery. - **Wedding & Festive:** A significant driver for fashion and lifestyle retailers (Vedant Fashions, ABLBL, ABFRL). - **Health & Wellness:** MedPlus, and to some extent, private label offerings from general retailers. - **B2B:** IndiaMART, Eternal's Hyperpure (restaurant supply).

**Geographic Distribution and Regional Dynamics:** Companies are increasingly focusing on expanding beyond Tier 1 cities. - **Trent's Zudio:** Over 75% of new stores in the 9-month period opened in Tier II, III cities and peripheral new growth micro-markets. - **Lenskart:** New stores in Tier 2+ locations are outperforming, generating ₹13.2 lakh average monthly revenue. Potential for ~3,000 additional stores in Tier 2+ towns in India. - **Vishal Mega Mart:** Present in 517 cities, adding 24 new cities in Q3 FY26, with strongholds in Kerala and Northeast. - **V2 Retail:** Improving geographic coverage through a balanced mix of rural market entry and deeper penetration in Tier-II, Tier-III cities, with high presence in Uttar Pradesh (50 stores), Bihar (48), and Odisha (32). - **Aditya Vision:** Strong presence in Bihar (75% revenue contribution), Uttar Pradesh (13%), and Jharkhand (13%), with plans to expand into Chhattisgarh and Madhya Pradesh. - **International Expansion:** Lenskart (Japan, Southeast Asia, Middle East), Eternal (international quick commerce), FirstCry (UAE, KSA), Vedant Fashions (USA, UAE, Canada, UK, Australia), ABFRL (Galeries Lafayette in India).

**Market Maturity and Lifecycle Stage:** The sector exhibits a mix of mature and nascent segments. - **Mature:** Traditional grocery retail (DMart), established fashion brands (Trent's Westside, ABLBL's Lifestyle Brands), food delivery in metros (Eternal, Swiggy). These segments focus on densification, operating efficiencies, and customer retention. - **Growth/Emerging:** Quick commerce (Eternal's Blinkit, Swiggy's Instamart, FirstCry Qwik), D2C brands (ABLBL's TMRW), specialized eyewear retail (Lenskart), value fashion in Tier 2/3 (Trent's Zudio, V2 Retail), blue-collar hiring (Info Edge's JobHai), and home services (Urban Company). These segments are characterized by aggressive expansion, significant investments, and a focus on market share gains, often at the expense of short-term profitability. - **Nascent/Exploratory:** Smart glasses (Lenskart's B by Lenskart), new luxury retail formats (ABFRL's Galeries Lafayette), AI-led workflow automation (Info Edge's AI-Rex). These are long-term bets with uncertain near-term revenue contributions.

The market is also undergoing a structural shift towards digital adoption and omnichannel strategies. Companies like Lenskart, Trent, MedPlus, and FirstCry are integrating online and offline channels to provide a seamless customer experience, leveraging physical stores for brand presence, pickup points, and last-mile delivery.

B. Financial & Economic Profile

The financial and economic profile of the retailing sector is diverse, reflecting the varied business models and stages of maturity across companies. While some players demonstrate robust profitability and cash generation, others are in aggressive investment phases, prioritizing growth and market share over immediate bottom-line results.

**Industry Aggregate Revenue Scale and Growth Trajectory:** The sector shows strong top-line growth across most segments. - **Large-format Retailers:** * **DMart:** Revenue from Operations grew from ₹30,353 Crs in FY22 to ₹49,533 Crs in FY24, with projections of ₹57,790 Crs for FY25. This represents a strong CAGR. * **Trent:** Standalone revenue from operations grew from ₹1,348 Cr in Q3 FY22 to ₹5,259 Cr in Q3 FY26, demonstrating a remarkable CAGR of 40.5% over four years. * **Vishal Mega Mart (VMM):** Revenue from Operations grew 17% YoY to ₹3,670 crores in Q3 FY26, with 9M FY26 revenue up 19.9% to ₹9,792 crores. * **V2 Retail:** Revenue growth was an impressive 57% YoY to ₹929 crores in Q3 FY26, and 64% YoY to ₹2,270 crores for 9M FY26. * **Aditya Vision:** Revenues grew ~28% YoY to ₹649 crores in Q3 FY26, and 15% YoY to ₹2,047 crores for 9M FY26. * **MedPlus Health Services:** Consolidated Revenue reached ₹18,061 million in Q3 FY26, growing 15.6% YoY in pharmacy operations. - **Digital-first & Services:** * **Eternal (Zomato):** Consolidated Adjusted Revenue grew 190% YoY to ₹16,692 crore in Q3 FY26, driven significantly by Quick Commerce (Blinkit) which saw 776.1% YoY adjusted revenue growth. * **Lenskart:** Revenue surged 37.4% YoY to ₹23,077 Mn in Q3 FY26, with 9M FY26 revenue up 29.4% YoY to ₹64,866 Mn. * **Meesho:** NMV grew 26% YoY to ₹10,995 crores in Q3 FY26, and 37% for 9M FY26. * **Urban Company:** Net Transaction Value (NTV) grew 36% YoY to ₹1,081 crores in Q3 FY26 (excluding KSA impact), with Revenue from Operations up 42% YoY to ₹383 crore. * **Info Edge (Standalone):** Billings grew 11.8% YoY to ₹747 crores in Q3 FY26, and 12% YoY to ₹2,120 crores for 9M FY26. * **IndiaMART:** Revenue from Operations grew 13% YoY to ₹402 crores in Q3 FY26. * **CarTrade Tech:** Consolidated Revenue grew 18% YoY to ₹228 crores in Q3 FY26, and 24% for 9M FY26. * **FirstCry:** GMV grew 10% YoY to ₹34,247 Mn in Q3 FY26, and 10% YoY to ₹87,590 Mn for 9M FY26. Revenue from Operations grew 12% YoY to ₹24,236 Mn in Q3 FY26.

**Profitability Levels Across Companies (Gross Margin, EBITDA, Net Margin):** Profitability varies significantly, reflecting business models, competitive intensity, and investment cycles. - **Gross Margins:** * **Vedant Fashions:** Maintains high gross margins at 65.7% in Q3 FY26, reflecting its premium positioning and brand strength. * **Lenskart:** India Product Margin at 63.7% and International Product Margin at 75.8% in Q3 FY26, demonstrating strong unit economics in eyewear. * **V2 Retail:** Gross Margin at 32.4% in Q3 FY26, up from 32% last year. * **MedPlus:** Pharmacy Business Gross Margins around 25% in Q3 FY26, with Private Label Pharma Gross Margin significantly higher at 65-70%. * **FirstCry:** Consolidated Gross Margins at 34.8% in Q3 FY26, down from 37.0% in Q3 FY25, partly due to non-core categories and revenue recognition changes. * **Aditya Vision:** Gross Margins maintained at 15.8% in Q3 FY26. - **EBITDA Margins:** * **Info Edge (Recruitment Standalone):** Exceptionally high at 59% in Q3 FY26, showcasing the strength of its core business. * **Vedant Fashions:** Strong EBITDA margin of 44.6% in Q3 FY26, though down from 47.4% last year. * **CarTrade Tech:** Consolidated EBITDA Margin improved to 37% in Q3 FY26, up from 28% last year. Consumer Group EBITDA Margin was 43%. * **IndiaMART (Standalone):** EBITDA margin of 37% in Q3 FY26. * **DMart:** EBITDA Margin has fluctuated, from 8.2% in FY22 to 8.3% in FY24, then projected 7.9% in FY25, and 8.1% in 9M FY26. * **Trent (Standalone):** Op. EBIT margin improved to 13.8% in Q3 FY26 from 8.6% in Q3 FY23. * **Vishal Mega Mart:** EBITDA Margin improved to 16.5% in Q3 FY26 (vs 16.1% last year), and 14.9% for 9M FY26 (vs 14.4% last year). * **V2 Retail:** EBITDA Margin at 18.7% in Q3 FY26, broadly stable YoY. * **MedPlus:** Consolidated Operating EBITDA Margin at 5.4% in Q3 FY26, with Diagnostics at 15.5%. Store-level EBITDA margin for stores older than 12 months was 12.4%. * **Lenskart:** EBITDA Margin (pre-IndAS 116) expanded to 11.5% in Q3 FY26, from 4.7% in Q3 FY25. * **Eternal (Consolidated):** Adjusted EBITDA margin was 2.2% (₹364 crore on ₹16,692 crore revenue) in Q3 FY26. Food Delivery Adjusted EBITDA margin was 5.4% of NOV, while Quick Commerce (Blinkit) achieved a positive Adjusted EBITDA of ₹4 crore (0.0% margin) for the first time. * **Urban Company:** Adjusted EBITDA Loss of ₹17 crores in Q3 FY26, with India Consumer Services (ex-InstaHelp) at 5.6% adjusted EBITDA margin. InstaHelp is still in heavy investment phase, with an Adjusted EBITDA Loss of ₹61 crores. * **FirstCry:** Consolidated Adjusted EBITDA Margin at 6.3% in Q3 FY26, with India Multichannel at 10.0%. * **ABFRL:** Overall EBITDA Growth 13% in Q3 FY26, with margin at 15.6%. Ethnic Business margin was 22.7%. * **ABLBL:** Overall EBITDA margin 18.4% in Q3 FY26, up 180 bps YoY. Lifestyle Brands EBITDA margin 20.6%. * **Aditya Vision:** EBITDA Margin 8.2% in Q3 FY26.

• **Net Margins (PAT):**

The following table illustrates the diverse profitability across selected companies in Q3 FY26:

| Company (Q3 FY26) | Revenue (Cr) | Gross Margin (%) | EBITDA Margin (%) | PAT Margin (%) | | :------------------ | :----------- | :--------------- | :---------------- | :------------- | | DMart (9M/26) | 49,764 | N/A | 8.1 | 5.0 | | Eternal (Cons.) | 16,692 | N/A | 2.2 | 5.0 | | Trent (Standalone) | 5,259 | N/A | 13.8 (Op. EBIT) | 12.2 | | Lenskart | 2,307.7 | 63.7 (India Prod) | 11.5 (pre-IndAS) | 5.8 | | Vishal Mega Mart | 3,670 | N/A | 16.5 | 8.5 | | V2 Retail | 929 | 32.4 | 18.7 | 10.9 | | MedPlus | 1,806.1 | 26.2 | 5.4 | 3.2 | | Vedant Fashions | 492 | 65.7 | 44.6 | 27.4 | | CarTrade Tech | 228 | N/A | 37.0 | 27.0 | | Aditya Vision | 649 | 15.8 | 8.2 | 4.2 |

**Return Profiles (ROCE, ROE, ROIC) by Company:** - **MedPlus:** Store Level Operating ROCE for stores older than 12 months reached 77.7% in Q3 FY26, up from 61.7% in Q3 FY25. Overall ROCE (Pre-Tax) was 24.2% in Q3 FY26. - **Lenskart:** ROCE (9M FY26) was 13.1%, excluding IPO proceeds, it was 26%. - **V2 Retail:** ROE for 9M FY26 was 24.5%, significantly up from 10.7% in FY24. - **CarTrade Tech:** Achieved double-digit Return on Equity (ROE) for the first time in Q3 FY26. - **Eternal:** Expects ROCE of 40%+ from capex and NWC investments.

**Working Capital Characteristics and Cash Conversion Cycles:** - **MedPlus:** Net Working Capital improved to 53 days in Q3 FY26, down from 61 days in Q3 FY25. Inventory in warehouse was 34 days. - **Lenskart:** Net Working Capital Days (9M FY26) were 10.1 days, indicating highly efficient working capital management. - **V2 Retail:** Net Working Capital days were 69 days in Q3 FY26, up from 37 days in FY25, primarily due to a sharp decrease in payable days as the company prepaid vendors. - **Swiggy:** Net working capital is not expected to be beyond 18 days. - **IndiaMART:** Net Working Capital Days (9M FY26) were 62, down from 71 in FY25. Inventory Days were 85, down from 102 in FY25.

**Capital Intensity Requirements:** - **DMart:** Continues cluster-based expansion, adding 27 stores in 9M FY26, with 442 stores total. This implies significant capital expenditure for land and construction. - **Lenskart:** Store capex was ₹288 Cr for 420 new stores in 9M FY26, and manufacturing capex was ₹267 Cr (including Hyderabad facility). Capex per store is expected to increase due to automation and larger store sizes. - **Eternal:** Capex per store is expected to continue increasing due to automation and larger store sizes for quick commerce. - **Vishal Mega Mart:** Capex is projected north of ₹300 crores for FY26, for new store expansion. - **V2 Retail:** Capex per store is ~₹1.1 crore, with inventory investment of ~₹1.3 crores, totaling ₹2.4-2.5 crores per store. - **Aditya Vision:** Stores typically become profitable between 6 to 18 months, indicating initial capital outlay for new stores. - **ABFRL:** Invested in growth capex, adding net 5.5 lakh sq. ft. over the last 12 months. Galeries Lafayette store cost (fixed assets) is ₹125-130 crores. - **Swiggy:** Expects a little more spending on the capex side, especially on warehousing. - **CarTrade Tech:** Reports almost no capex, highlighting its asset-light digital model.

**Revenue Quality (Recurring vs One-time, Contract Length):** - **Info Edge:** Deferred Sales Revenue of ₹1,240 crores in Q3 FY26, indicating a significant portion of recurring revenue from subscriptions. - **IndiaMART:** Deferred Revenue of ₹1,775 crores in Q3 FY26, up 19% YoY, reflecting its subscription-based model for suppliers. - **MedPlus:** Observed On-Time Renewal Rate for health plans was 23% in Q3 FY26, suggesting recurring revenue streams from loyalty programs. - **Lenskart:** Gold membership has 8.1 million active members, with 37% of Q3 sales from Gold members acquired prior to Q3, indicating strong repeat business.

C. Competitive Structure & Dynamics

The competitive landscape in the retailing sector is highly fragmented yet increasingly concentrated in specific sub-segments, marked by intense rivalry, evolving consumer preferences, and the strategic deployment of technology and capital.

**Number of Players and Market Concentration:** The sector features a mix of dominant leaders in mature segments and numerous players vying for market share in emerging categories. - **Highly Concentrated:** * **Recruitment:** Info Edge (Naukri) is the clear leader, with dominant traffic share and a strong position in both mid-segment and premium hiring. * **Eyewear:** Lenskart is a leading player, serving less than 5% of India's vision correction needs but aggressively expanding its organized market share (estimated ~10% including 5+ location stores). * **Indian Wedding & Celebration Wear:** Vedant Fashions (Manyavar) is the category leader. * **Automotive Classifieds/Auctions:** CarTrade Tech (CarWale, OLX, BikeWale) holds the #1 position in India for automotive, used platform, and vehicle auction platforms. OLX alone lists 65% of all used cars sold in India. * **B2B Marketplace:** IndiaMART is a leading player, connecting a vast network of buyers and suppliers. * **Mother, Baby & Kids Products:** FirstCry is the largest multi-channel retailer. - **Moderately Concentrated:** * **Grocery/Hypermarket:** DMart holds a strong position in value grocery, but faces competition from other organized retailers and local kirana stores. Vishal Mega Mart also operates in this space, targeting affordable aspirations. * **Fashion & Lifestyle:** Trent (Westside, Zudio) and Aditya Birla Fashion and Retail (ABFRL, ABLBL) are significant players, competing with numerous national and international brands, as well as unorganized players. * **Pharmacy Retail:** MedPlus is the second-largest in the country, competing with other large chains and local pharmacies. - **Fragmented & Emerging:** * **Food Delivery & Quick Commerce:** Eternal (Zomato) and Swiggy are the two dominant players, but face intense competition from each other and potential new entrants, leading to "irrational competitive intensity." * **E-commerce (Value Segment):** Meesho is a major player, but the broader e-commerce market is vast and includes giants like Amazon and Flipkart. * **Home Services:** Urban Company is a leader in organized home services but operates in a largely unorganized market.

**Market Share Distribution (with specific percentages):** - **Lenskart (India Eyewear):** Organized market share ~10% (including 5+ location stores). - **Info Edge (99acres):** Traffic-time share increased to 46% (up from 44% in Q2), indicating market share gains against competitors like MagicBricks and Housing. - **Info Edge (Jeevansathi):** Emerged as a leader in Hindi-speaking markets with 45% profile share. - **CarTrade Tech (OLX):** 65% of all used cars sold in India are listed on OLX. - **MedPlus:** 2nd largest pharmacy retailer in India.

**Competitive Intensity Assessment:** Competitive intensity is a recurring theme across several segments, particularly in digital-first and value-oriented retail. - **Quick Commerce & Food Delivery:** Described as "elevated competitive intensity" (Eternal) and "irrational competitive intensity" (Swiggy, FirstCry). This manifests as low Minimum Order Values (MOVs), free deliveries, aggressive pricing, and heavy discounting. New entrants are "amping up spending on consumers" (Swiggy), often going after "vanity metric of orders, not orders that matter." This environment introduces volatility in NOV growth and can stimulate less durable demand. - **Fashion/Lifestyle:** "Competitive intensity in fashion/lifestyle market is high" (Trent). - **Value Retail:** VMM faces "competitive discounting" due to inventory pressure. V2 Retail acknowledges "new reality" of competition but focuses on its strengths. - **Eyewear:** Lenskart notes "competition is aggressive in rolling out stores." - **B2B Marketplace:** IndiaMART faces potential competition in the ad marketplace and a longer-term threat from AI search if buyer traffic shifts from Google. - **Matrimonial:** Jeevansathi operates in a "competitive matrimonial industry with leading platforms investing in marketing and offering discounts." - **Consumer Electronics:** Aditya Vision acknowledges competition but states it beats them with "different policies/schemes."

**Entry Barriers and Competitive Moats:** Companies are building various moats to sustain their competitive edge: - **Scale & Network Effects:** DMart's extensive store network, MedPlus's 5,112 stores, FirstCry's 1,202 modern stores, Eternal's 2,027 Blinkit stores, and VMM's 771 stores create significant barriers to entry due to capital requirements and logistical complexity. Info Edge's vast resume database (113 million) and CarTrade's 150 million yearly users are powerful network effects. - **Supply Chain & Infrastructure:** Eternal's Hyperpure (restaurant supply) is a "strategic moat" due to its national scale infrastructure. Lenskart's Hyderabad manufacturing facility aims to increase backward integration, capacity, and reduce costs. FirstCry's RocketBees and Qwik initiatives focus on asset-light logistics and faster delivery. - **Technology & AI:** Lenskart is an "AI-first company" leveraging AI for remote optometry, facial recognition, site selection (GeoIQ), hiring, customer service, and smart glasses. Info Edge uses AI for search quality, personalization, and AI-Rex. IndiaMART adopted AI for matchmaking a decade ago and is accelerating AI adoption. CarTrade uses AI for loan approvals, pricing guidance, and product listing checks. - **Brand Equity & Customer Loyalty:** Trent's Westside and Zudio, Vedant Fashions' Manyavar, ABLBL's Lifestyle Brands, and DMart's value proposition foster strong brand loyalty. Lenskart's Gold membership (8.1 million active members) drives repeat purchases. Pantaloons' Greencard loyalty program contributes >70% of revenues. - **Data & Proprietary Content:** Info Edge's "large volumes of proprietary data, millions of daily interactions" are structural strengths. CarTrade's use of its own public, private, and private consumer/customer data for AI is a key differentiator. - **Hyperlocal Presence & Delivery:** MedPlus's hyperlocal store presence enables 2-hour delivery and lower customer acquisition/delivery costs. Urban Company's micro-market density for InstaHelp is crucial.

**Pricing Power Dynamics and Pricing Trends:** - **GST Impact:** GST changes have influenced pricing and consumer behavior. Trent noted the "continued impact of new GST regime" where customers prioritized bigger ticket products with higher GST reduction benefits. Eternal's reported NOV was reduced by ~3 percentage points due to GST changes. Vedant Fashions saw a GST increase from 12% to 18% on 90% of its products, impacting gross margins. Lenskart benefited from GST reduction from 12% to 5%. - **Price Increases:** IndiaMART implemented a price increase in its silver subscription tier, leading to some moderation in gross additions. Info Edge's long-term average pricing increase is 5-6% per annum. - **Discounting:** Competitive discounting is prevalent in quick commerce and value retail, impacting margins and growth (Eternal, Swiggy, Meesho, VMM). - **ASP Growth:** Lenskart saw 7% YoY ASP growth in India in Q3 FY26 due to mix improvement. V2 Retail's Average Selling Price (ASP) grew to ₹363 in Q3 FY26 from ₹343 in Q3 FY25. Aditya Vision expects mobile prices to go up by 4-6% from January onwards.

**Consolidation Trends and M&A Activity:** - **Info Edge:** Actively invests in startups (Eternal, PB Fintech, Aisle Network, Zwayam, DoSelect, NoPaperForms, etc.), acquiring 100% ownership in Aisle and Zwayam. Its M&A strategy is open to "acqui-hires, acquiring for technology, products, small businesses, and adjacent areas that build a technology moat or new capabilities." - **CarTrade Tech:** Acquired OLX India, which has shown strong revenue and EBITDA growth post-acquisition. Pursued the CarDekho deal but put it on hold, preferring to hold inorganic opportunities due to high potential in its own business. - **ABLBL:** Acquired Reebok and TCNS, integrating them into its portfolio. - **FirstCry (Globalbees):** Rationalizing non-core brands to focus on core categories, indicating a strategic consolidation within its D2C brand portfolio.

**Competitive Advantages of Each Player:** - **DMart:** Value proposition, cluster-based expansion, efficient operations. - **Eternal:** First-mover advantage in food delivery, aggressive quick commerce expansion, Hyperpure infrastructure, AI/ML capabilities. - **Trent:** Strong brand portfolio (Westside, Zudio), aggressive Tier 2/3 expansion for Zudio, omnichannel traction. - **Lenskart:** AI-first approach, vertical integration, strong product margins, Gold membership, international expansion. - **Swiggy:** Dominant in food delivery, aggressive Instamart expansion, focus on supply chain efficiencies. - **Meesho:** Largest platform by users/orders, focus on non-GST sellers and value, strong logistics initiatives (Valmo). - **Info Edge:** Dominant market share in recruitment, strong investments in other classifieds, AI integration, vast data. - **Vishal Mega Mart:** "Aspirations affordable" proposition, rapid store expansion in Tier 2/3, strong own-brand contribution. - **Urban Company:** Leadership in home services, focus on quality supply, new growth avenues (InstaHelp, Native). - **IndiaMART:** Early AI adoption, B2B network effects, focus on software/tech, strong treasury. - **ABLBL:** Diverse brand portfolio, disciplined execution, strong network expansion, emerging brands growth. - **Vedant Fashions:** Category leadership in wedding wear, high gross margins, strong brand equity. - **CarTrade Tech:** #1 position in automotive platforms, high organic traffic, strong auction business, AI interventions. - **ABFRL:** Diverse portfolio from value to luxury, strong loyalty programs, strategic investments in new formats. - **FirstCry:** Multi-channel leadership in mother/baby/kids, strong home brands, innovative logistics, parenting community. - **MedPlus:** Second-largest pharmacy network, strong store-level ROCE, private label growth, omnichannel. - **V2 Retail:** Value fashion focus, rapid store expansion in Tier 2/3, strong volume growth, improving ROE. - **Aditya Vision:** Regional dominance in electronics, disciplined cluster-led expansion, strong festive growth.

D. Operational Characteristics

Operational efficiency, supply chain robustness, and technological integration are critical differentiators in the diverse retailing landscape. Companies are investing heavily in these areas to manage scale, reduce costs, and enhance customer experience.

**Capacity and Utilization Trends Across Companies:** - **Store Network Expansion:** A primary operational focus for most physical retailers. * **DMart:** Increased store count from 284 in FY22 to 442 in 9M FY26, adding 27 stores in 9M FY26. Total retail business area reached 18.3 mn sqft in Q3 FY26. * **Trent:** Operates over 1100 "large-box" fashion stores across 274 cities, with a footprint of over 15 million sqft. Added 17 Westside and 48 Zudio stores in Q3 FY26. * **Lenskart:** Rapidly expanded to 3,144 active stores globally in Q3 FY26 (2,439 in India, 705 International), adding 195 net new stores in Q3 FY26 alone. * **Vishal Mega Mart:** Total store count reached 771 as of December end, with 13.2 million square feet of trading area. Opened 29 new stores in Q3 FY26. * **MedPlus:** Operates 5,112 stores across 13 states and 1 union territory, with 2.6 million+ square feet. Added 182 net new stores in Q3 FY26. * **V2 Retail:** Expanded to 294 stores (approx. 31.9 lakh square feet) as of Q3 FY26, with 35 new stores added in Q3. * **Aditya Vision:** Reached 192 stores as of December 31, 2025, primarily in Bihar, UP, and Jharkhand, adding 4 new stores in Q3. * **ABFRL:** Overall retail network of 1,226 stores (7.7 million sq. ft.) as of Q3 end, adding 50 new stores in Q3 FY26. * **ABLBL:** Operates 3,300+ stores across 785+ cities, with 4.8 million square feet of trading area. * **Vedant Fashions:** Has 648 EBOs in 241 cities in India and 16 overseas, with a retail footprint of 1.79 mn sq. ft. * **FirstCry:** Operates 1,202 modern stores (including FOFO & COCO) as of Dec 31, 2025. - **Digital Infrastructure:** * **Eternal (Blinkit):** Reached 2,027 stores in Q3 FY26, adding 211 net new stores. * **Swiggy (Instamart):** Warehousing capacity more than doubled over the last 4 quarters, with space expansion of almost 100% YoY. * **FirstCry (RocketBees):** Expanded to 22 cities by December end, covering 45-50% of total volumes by mid-2026. * **Lenskart:** Next-day delivery expanded from 40 cities (Mar'25) to 67 cities (Dec'25).

**Production Economics and Cost Structures:** - **Private Label Strategy:** Many retailers are increasing the share of private labels to improve gross margins. * **Vishal Mega Mart:** Own Brand Contribution was 74.5% to revenue for 9M FY26, up 100 bps. * **MedPlus:** Private Label Pharma Sales contributed 11.6% of total revenues in Q3 FY26, with a gross margin of 65-70%, significantly higher than branded pharma (13-14%). * **FirstCry:** Home Brands share in India Multichannel GMV increased from 37% in FY20 to >55% in FY25. - **Operating Leverage:** Companies with expanding scale are seeing benefits of operating leverage. * **V2 Retail:** Employee Expenses per Square Feet decreased due to operating leverage. Blended Cost of Retailing (including rent and OpEx) decreased to ~₹195 for Q3 FY26 from ~₹205 last year. * **Urban Company:** Native business benefits from operating leverage, R&D, product development, people costs, marketing, and brand building. * **Eternal:** Food Delivery demonstrated operating leverage, with Adjusted EBITDA margin at 5.4% of NOV. * **ABFRL:** New stores maturing lead to future growth and operating leverage. - **Logistics Costs:** A significant component for e-commerce and quick commerce. * **Meesho:** Logistics costs were 27.5% of direct costs. Building a competitive logistics ecosystem with a mix of captive (Valmo) and third-party logistics. * **Eternal:** Dropped delivery charges in some markets for quick commerce, indicating cost absorption. * **Swiggy:** Focus on structurally improving supply chain efficiencies to manage delivery costs.

**Supply Chain Structure and Dependencies:** - **Vertical Integration:** Lenskart is increasing backward integration with its Hyderabad manufacturing facility for frames, lenses, and components, aiming for self-reliance and reduced currency risk. It also invested in iNeer (South Korea) for AI-enabled eye testing and lens edging equipment, and Sunrise (Thailand) for frame manufacturing. - **Omnichannel Integration:** Leveraging physical stores as part of the supply chain. * **MedPlus:** Hyperlocal store presence enables 2-hour delivery. * **FirstCry Qwik:** Leverages COCO stores, stockist network, and dark stores for faster delivery. * **Trent:** Westside online and Tata Neu platform show traction. * **V2 Retail:** Planning to launch omnichannel, using store inventory as dark warehouses. - **Third-Party Logistics:** Reliance on 3PLs is common, but also a source of risk. * **Meesho:** Faced challenges with logistics capacity due to partner cessation, leading to inferior costs in Q2 and Q3. * **FirstCry:** Inconsistencies from third-party logistics service providers led to customer pain and delivery delays.

**Technology Landscape and Innovation Pace:** The sector is rapidly adopting technology, particularly AI and ML, to drive efficiency and enhance customer experience. - **AI-first Approach:** * **Lenskart:** Uses AI for remote optometry (369 stores in India, 613 including Japan), facial recognition (100,000+ daily scans), GeoIQ for site selection, AI in hiring (100% of store employees), and customer service (reduced contact-to-order ratio by ~30%). * **Info Edge:** Launched AI-Rex, an Agentic AI-led workflow automation platform, serving 100+ clients and closing 20,000 job mandates. Uses AI for search quality, personalization, and B2C offerings like Naukri 360. * **IndiaMART:** Early adopter of AI/ML (behavioral data-based matchmaking a decade ago), accelerating adoption for product quality, user experience, and engagement. Uses Voice AI for 80% of buyer interactions. * **CarTrade Tech:** Created CarTrade Laboratories to build cutting-edge products, using AI for loan approvals, pricing guidance, and product listing checks. - **Automation:** * **Lenskart:** Investing in supply chain automation to reduce picking times and improve inventory allocation. * **Trent:** Investments in automation and technology (e.g., pan network RFID) aided stable operating economics and boosted productivity. - **Digital Platforms:** * **Meesho:** Focuses on building intuitive, language-connected, product-connected platforms for rural users. * **Eternal:** Investing in automation opportunities to increase productivity in quick commerce. * **Urban Company:** Exploring subscription and multi-day booking offerings for InstaHelp.

**Operational Efficiency Benchmarks:** - **Store Payback Periods:** Lenskart reports new store payback periods of under 12 months, indicating strong unit economics. - **Store Throughput:** Eternal's Blinkit achieved an average NOV per day, per store of ₹750,000 in Q3 FY26. Swiggy aims for a 25-30% increase in throughput per store. - **Delivery TATs:** FirstCry's RocketBees witnessed 20% improvement in delivery TATs. - **Customer Service:** Lenskart's AI-powered customer service reduced contact-to-order ratio by ~30%, with processing times moving from hours to real-time for 50%+ transactions.

**Key Performance Indicators:** - **Same-Store Sales Growth (SSSG):** * **DMart:** Like For Like Growth (>24 Months) has been decelerating, from 8.3% in Q3 FY25 to 5.6% in Q3 FY26. * **Trent:** Like-for-like growth for fashion portfolio in Q3 FY26 was marginally negative (due to festive shift), with 9M FY26 LFL in low single digits. * **Vishal Mega Mart:** Adjusted SSSG was 9.6% in Q3 FY26 (adjusted for Durga Puja shift), with reported SSSG of 6.1%. 9M FY26 adjusted SSSG was 10.3%. * **V2 Retail:** Normalized SSSG (adjusted for Durga Puja shift) was 12.8% in Q3 FY26, with reported SSSG of 2%. 9M FY26 SSSG was ~8.6%. * **Aditya Vision:** SSSG was 17% in Q3 FY26, compared to 12% in the previous year, and 5% for 9M FY26. * **Vedant Fashions:** SSSG for 9M FY26 was 1.8%. Twamev SSSG was 12% in Q3. * **ABFRL (Pantaloons):** LTL (adjusted for Pujo and EOSS shift) was 3% in Q3 FY26. Ethnic Business LTL was 10%. TCNS LTL was 8%. * **ABLBL (Lifestyle Brands):** Like-to-like growth was 5% in Q3 FY26. - **Customer Metrics:** * **DMart:** Total Bills Cuts reached 10.3 Crs in Q3 FY26. * **Eternal (Food Delivery):** Average Monthly Transacting Customers (MTC) were 24.9 million in Q3 FY26. Blinkit MTC were 23.6 million. * **Lenskart:** Quarterly Transacting Customer Accounts were 5.0 Mn (+27.7% YoY) in Q3 FY26. Eye Tests Performed were 6.3 Mn (+53.8% YoY). * **Meesho:** Annual Transacting Users (ATU) reached 251 million (+34% YoY). * **Urban Company:** Strong new user addition and steady revenue retention. * **FirstCry:** Annual Unique Transacting Customers (AUTC) were 11.3 Mn (+10% YoY). - **Average Order Value (AOV) / Average Bill Value (ABV):** * **Eternal (Blinkit):** Net Average Order Value (NAOV) was ₹547 in Q3 FY26. * **V2 Retail:** ABV was ₹964 in Q3 FY26, up from ₹924 in Q3 FY25. ASP was ₹363, up from ₹343. * **FirstCry (International):** AOV was 4.3 times compared to India Multi-Channel AOV in Q3 FY26.

E. Growth Dynamics & Drivers

The retailing sector's growth is propelled by a combination of macroeconomic tailwinds, strategic expansions, and continuous innovation. Companies are leveraging India's demographic dividend, increasing digital adoption, and rising disposable incomes to fuel their expansion.

**Historical Growth Trajectory (3-5 year view with specific rates):** - **DMart:** Revenue from Operations grew from ₹30,353 Crs in FY22 to ₹49,533 Crs in FY24, representing a CAGR of 27.9%. - **Trent:** Standalone revenue from operations grew at a CAGR of 40.5% from Q3 FY22 to Q3 FY26. - **Lenskart:** Revenue grew at a 29.4% YoY for 9M FY26. India Product Margin improved by 550 bps from 58.2% in FY23 to 63.7% in Q3 FY26. - **CarTrade Tech:** Revenue CAGR of 32% from FY23 to FY26, with EBITDA CAGR of 112% and Profit CAGR of 83%. - **V2 Retail:** Revenue grew 64% YoY for 9M FY26, and 57% YoY for Q3 FY26. PAT grew 119% YoY for 9M FY26. - **MedPlus:** Consolidated Revenue grew 15.6% YoY in Q3 FY26. - **Info Edge (Recruitment B2C):** Billings grew at a CAGR of ~20% over the last few years. - **FirstCry (India Multichannel):** YoY Revenue Growth improved sequentially from 7.5% in Q1 FY26 to 8.9% in Q3 FY26.

**Current Growth Rates and Acceleration/Deceleration:** - **Acceleration:** * **Eternal (Quick Commerce):** NOV surged 121% YoY in Q3 FY26, with like-for-like NOV growth of 130%+ YoY. Adjusted Revenue grew 776.1% YoY. * **Lenskart:** India SSSG was 27.8% in Q3 FY26, and SPSG (Sales per Store Growth) was 35.8%. International NTV grew 79% YoY. * **V2 Retail:** Revenue growth accelerated to 57% YoY in Q3 FY26. * **Vishal Mega Mart:** Adjusted SSSG was 9.6% in Q3 FY26, up from 6.1% reported. * **Urban Company (Native Business):** NTV up 93% YoY in Q3 FY26. * **CarTrade Tech (OLX):** Revenue growth of 18% in Q3 FY26, with EBITDA growth of 70%. - **Deceleration/Moderation:** * **DMart:** Like For Like Growth (>24 Months) decelerated from 8.3% in Q3 FY25 to 5.6% in Q3 FY26. * **Eternal (Food Delivery):** NOV growth was 16.6% YoY in Q3 FY26, with management expecting it to "inch up gradually towards 20% over time." * **Trent:** Like-for-like growth for fashion portfolio in Q3 FY26 was marginally negative due to festive shift. * **Meesho:** NMV growth of 26% YoY in Q3 FY26 was impacted by festive demand moving to Q2. * **Info Edge (Recruitment Mid-segment):** Moderated volume growth to 4% in the mid-segment (₹5-30 lakhs CTC). * **IndiaMART (Paying Suppliers):** Declined by 1 thousand to 221 thousand in Q3 FY26, partly due to price increase and festival season.

**Volume vs Price Contribution to Growth:** - **Lenskart (India Q3 FY26):** Growth driven by "volume expansion from new customers (31% YoY eyewear units), deepening relationships through Gold membership/repeat purchases, modest ASP increase from mix improvement." - **Vishal Mega Mart (9M FY26 SSSG):** Approximately 70% from increase in transactions (new footfall/market share gain), 30% from increase in average bill value. Highest price points (fashion) grew 14% SSSG, mid-price points 9%, opening price points 6%. - **V2 Retail (Q3 FY26):** Volume growth of 48% YoY, with ASP increasing to ₹363 from ₹343. - **Aditya Vision (Q3 FY26):** Volume from UP and Jharkhand contributed 26%.

**Organic vs Inorganic Growth Components:** - **Organic Growth:** * **Store Expansion:** DMart, Trent, Lenskart, VMM, MedPlus, V2 Retail, Aditya Vision, ABFRL, ABLBL, Vedant Fashions, FirstCry are all aggressively expanding their physical footprints. * **New User Acquisition:** Meesho (251 million ATU, +34% YoY), Swiggy (22% YoY MTU growth in food delivery), Lenskart (5.0 Mn transacting customers, +27.7% YoY), Urban Company (strong new user addition). * **Product/Category Expansion:** Meesho expanding into beauty, personal care, kids, baby care, home and kitchen. VMM introducing higher price points and new categories. MedPlus adding new non-pharma assortments. * **Geographic Expansion:** Focus on Tier 2/3 cities (Trent, Lenskart, VMM, V2 Retail, Aditya Vision), and international markets (Lenskart, Eternal, FirstCry, Vedant Fashions, MedPlus, ABFRL). - **Inorganic Growth:** * **Info Edge:** Strategic investments in 21 unlisted companies, and listed entities like Eternal and PB Fintech. Acquired 100% ownership in Aisle Network and Zwayam Digital. * **CarTrade Tech:** Acquired OLX India, which is now a significant growth driver. * **ABLBL:** Acquired Reebok and TCNS, which are now contributing to growth. * **Lenskart:** Minority stake in iNeer (South Korea) and 50% stake in JV with Sunrise (Thailand) for backward integration.

**Geographic Expansion Opportunities and Progress:** - **Tier 2/3 Focus:** * **Trent (Zudio):** Over 75% of new Zudio stores in 9-month period opened in Tier II, III cities and peripheral new growth micro-markets. * **Lenskart:** Potential for ~4,500 additional stores in India (~3,000 in Tier 2+ towns). New stores in Tier 2+ locations are outperforming. * **Vishal Mega Mart:** Present in 517 cities, adding 24 new cities in Q3. Stronghold in Kerala and Northeast. * **V2 Retail:** Expanding in 25 states, with high presence in UP, Bihar, Odisha, MP, Jharkhand, and growing markets in Assam, West Bengal, Punjab, Delhi. Planning 60-70% expansion in existing clusters, 30-40% in new geographies. * **Aditya Vision:** Fortifying presence in Bihar and Jharkhand, expanding aggressively in UP, Chhattisgarh, and MP. - **International Expansion:** * **Lenskart:** 705 active international stores. #1 brand in Singapore, profitable in Japan (largest international market). Growing 2x in Middle East (UAE). * **Eternal (Quick Commerce):** International 9M FY26 EBITDA (pre-IndAS 116) margin of 6.1% with 705 stores. * **FirstCry:** Replicating successful playbook in UAE and KSA, with AOV 4.3 times higher than India. * **Vedant Fashions:** 16 overseas EBOs (USA, UAE, Canada, U.K., Australia). * **ABFRL:** Launched India's first Galeries Lafayette luxury departmental store.

**Product/Service Innovation Pipeline:** - **AI-powered Products:** * **Lenskart:** Soft launch of Smart Glasses (B by Lenskart) in Q4 FY26, built on Qualcomm AR1 chip, powered by Google Gemini Live. * **Info Edge:** Naukri 360 (AI-powered profile, resume, interview prep, job discovery), Naukri Minis (short-form content), AI-Rex. - **New Formats/Offerings:** * **Vishal Mega Mart:** Opened 4 new small format stores (total 10 operational), performing decently. * **Eternal:** Bistro (quick food delivery service with managed kitchen infrastructure), launched District Pass membership for Going-out. * **Urban Company (InstaHelp):** Exploring subscription and multi-day booking offerings. * **FirstCry (Qwik):** New initiative for faster delivery (3-hour promise) across full range of products. * **CarTrade Tech (OLX):** Elite Buyer Program, Verification Product. * **ABFRL (Pantaloons):** Refreshed strategy, moving away from value-led fashion, building premium brand proposition. * **ABLBL (Louis Philippe):** Opened a bridge-to-luxury store called 'Philippe'. - **Assortment Expansion:** * **Eternal (Blinkit):** Focus on assortment expansion. * **Vishal Mega Mart:** Deliberately introducing higher price points with better fashionability and functionality. * **MedPlus:** Adding new non-pharma categories like food, wellness, cold pressed oils.

**Adjacent Market Opportunities:** - **Blue-collar Hiring:** Info Edge's JobHai (blue-collar play) is viewed as a medium-term opportunity, aiming to be 10-15% of Naukri India in 5-6 years. - **Restaurant Supply:** Eternal's Hyperpure (restaurant supply business) grew 33% YoY in Q3 FY26, and is projected to be a $1 billion topline business with 4-5% Adjusted EBITDA margin in three years. - **Accounting Software:** IndiaMART's investments in Busy Infotech, Vyapar, and Livekeeping Technologies target different segments of the accounting software market for SMEs. - **Used Car Financing:** CarTrade Tech is working on a fintech perspective for used car financing (marketplace model with banks/NBFCs).

**Customer Acquisition and Penetration Trends:** - **Digital Acquisition:** * **Meesho:** Still the most downloaded shopping app in India, with 251 million ATU. * **Eternal (Food Delivery):** Continuing investments in customer activation (21% YoY growth in average MTC). * **Lenskart:** Strong new user addition, with 49% first-time eye exams in India. - **Offline Acquisition:** * **FirstCry:** Long-standing partnerships with 13,000+ Hospitals and Maternity Clinics, delivered 2.5 Mn+ FirstCry branded Boxes in FY25. * **MedPlus:** Existing stores act as branding sites, lowering customer acquisition costs. - **Loyalty Programs:** * **Lenskart (Gold membership):** 8.1 million active members, driving repeat purchases. * **Pantaloons (Greencard Loyalty Program):** Contributes >70% of revenues.

F. Risk Landscape

The retailing sector, while offering substantial growth opportunities, is also exposed to a range of risks, from macroeconomic shifts and intense competition to regulatory changes and supply chain vulnerabilities.

**Industry-wide Systematic Risks:** - **Consumer Sentiment:** "Consumer sentiment in Q3 FY26 relatively muted" (Trent), "Muted, especially in middle-class segment" (Vedant Fashions), "Muted in Q3, but definite optimism due to income tax and GST changes" (VMM), "Demand moderation in December due to shift in wedding dates" (ABFRL). This directly impacts discretionary spending and sales volumes. - **Cyclicality and Economic Sensitivity:** The demand for discretionary lifestyle categories and high-ticket items can be sensitive to economic cycles. A slowdown in the non-IT market (Info Edge) or overall macro-consumption trends (Lenskart) can impact growth. - **Festive Season Shifts:** The timing of festivals (e.g., Durga Puja, Diwali) can shift demand between quarters, making YoY comparisons challenging and impacting reported quarterly growth (Trent, VMM, Meesho, Vedant Fashions, ABFRL). For example, Durga Puja shifted from Q3 to Q2 in FY26, impacting Q3 revenues for several retailers. - **New Labor Codes:** Several companies mentioned the impact of new labor codes, typically as a one-time exceptional item in P&L (Trent, Info Edge, VMM, Urban Company, IndiaMART, CarTrade, ABFRL, MedPlus, V2 Retail, Aditya Vision). Management generally expects a "small pass-through impact" (Swiggy) or "no material impact on P&L or long-term margin guidance" (Eternal, Lenskart, Urban Company). However, the final rules are still being monitored.

**Regulatory and Policy Risks by Geography:** - **GRAP Regulations (Delhi NCR):** Slowed construction for quick commerce dark stores (Eternal). - **GST Changes:** Can impact reported revenues and pricing strategies (Eternal's reported NOV reduced by ~3 percentage points, Vedant Fashions' gross margin impacted by GST increase from 12% to 18% on 90% of products). Lenskart benefited from GST reduction from 12% to 5%. - **Gig Worker Legislation:** Potential impact on gig worker payouts (Swiggy, Meesho). While companies anticipate minimal long-term impact, it adds a layer of uncertainty.

**Technology Disruption Threats:** - **AI Search/LLMs:** IndiaMART acknowledges a "potential longer-term threat if buyer traffic moves from Google search to AI search." CarTrade Tech addresses the "risk of disintermediation" by LLMs by going deeper into the user journey. - **Online Competition:** Pure online players face higher logistic and customer acquisition costs (V2 Retail's perspective).

**ESG and Sustainability Challenges:** - **Trent:** Has a detailed sustainability strategy focusing on resource efficiency, responsible design, and people consciousness, including targets for renewable energy, packaging waste reduction, and ethical sourcing. This indicates increasing pressure and focus on ESG aspects. - **Urban Company:** Emphasizes social security benefits (life/accidental/health insurance) for its service professionals, and initiatives like Project Nidar for women partners.

**Supply Chain Vulnerabilities:** - **Geopolitical Disturbances:** Can lead to "supply-chain challenges" (Trent). - **Logistics Partner Inconsistencies:** Meesho faced challenges due to "partner cessation," leading to inferior costs. FirstCry experienced "third-party logistics service providers' inconsistencies" causing customer pain and delivery delays. - **Inventory Management:** Risks of "competitive discounting (due to inventory pressure)" (VMM) or "inventory correction phase" (ABLBL's Innerwear). - **Supply Chain Volatility:** "Volatilities in a few select categories impacted overall growth by ~200bps in Q3 FY26" (FirstCry).

**Competitive Threats (New Entrants, Substitutes):** - **"Irrational Competitive Intensity":** A major risk for quick commerce and food delivery players (Eternal, Swiggy, FirstCry). This involves aggressive pricing, low MOVs, and free deliveries, which can lead to customer switching without loyalty and impact growth and profitability. - **Aggressive Store Rollouts:** Competition is "aggressive in rolling out stores" (Lenskart), potentially impacting market share and profitability of existing players. - **Discounting:** Widespread discounting by competitors can force other players to follow suit, impacting margins (VMM, Vedant Fashions). - **New Entrants:** "New entrants are also amping up spending on consumers" (Swiggy), often with "me-too" products and discounting as their primary weapon. - **Cannibalization:** Urban Company is monitoring for "nothing meaningful yet" between InstaHelp and core consumer services.

**Customer Concentration Risks:** - **IndiaMART:** While having a large base, the decline in paying suppliers due to price hikes or competitive pressures is a risk. - **Aditya Vision:** High revenue concentration in Bihar (75% in Q3 FY26) could be a risk if regional economic conditions deteriorate.

G. Capital Allocation & Investor Returns

Capital allocation strategies in the retailing sector are primarily geared towards funding aggressive growth, enhancing operational capabilities, and, for mature companies, returning value to shareholders. Investments are concentrated in network expansion, technology, and strategic acquisitions.

**Capex Trends and Requirements (Growth vs Maintenance):** - **Growth Capex Dominance:** Most companies are in a growth phase, with significant capex allocated to expanding their physical and digital footprints. * **DMart:** Continues "cluster-based expansion," adding 27 stores in 9M FY26. * **Lenskart:** Store capex of ₹288 Cr for 420 new stores and manufacturing capex of ₹267 Cr for 9M FY26. Capex per store is expected to increase due to automation and larger store sizes. * **Vishal Mega Mart:** Projected capex north of ₹300 crores for FY26, primarily for new store openings (expected to be 100+). * **V2 Retail:** Capex per store is ~₹1.1 crore, with total investment per store (including inventory) at ₹2.4-2.5 crores. Plans to add 150 more stores in FY27. * **Aditya Vision:** Store additions are a continuous capex requirement, with 17 stores added in 9M FY26. * **MedPlus:** Opened 228 stores in Q3 FY26, with a target of 600 new stores for FY26. * **ABFRL:** Invested in growth capex, adding net 5.5 lakh sq. ft. over the last 12 months. Galeries Lafayette store fixed assets cost ₹125-130 crores. * **Swiggy:** Expects "a little bit more spending on capex side, especially on warehousing piece." * **Eternal:** Capex per store for quick commerce is expected to continue increasing. - **Asset-Light Models:** Some digital players maintain an asset-light approach. * **CarTrade Tech:** Reports "almost no capex" due to its digital platform model. * **Meesho:** Aims to "stay asset-light, not invest in other assets like warehousing," focusing on technology and logistics partnerships.

**R&D Investment Levels as % of Revenue:** - **Technology-driven companies:** Invest heavily in R&D, particularly in AI and ML. * **Lenskart:** Positioned as an "AI-first company," with continuous investment in AI-enabled platforms, remote optometry, facial recognition, and smart glasses. * **Info Edge:** Investing in AI-Rex, AI-powered features for Naukri, and embedding AI into internal processes. * **IndiaMART:** Accelerating adoption of AI-enabled technologies to enhance product quality, user experience, and engagement. * **CarTrade Tech:** Created CarTrade Laboratories to build new cutting-edge products and invests in product engineering, design, and AI talent.

**Dividend Policies and Payout Ratios:** - **Info Edge:** Board approved amendments to the Dividend Distribution Policy, revising the payout ratio to up to 65% of PAT, up from 39% last year. This indicates a commitment to progressively improving shareholder distributions as the company matures and generates strong cash flows.

**Share Buyback Programs:** - No explicit mentions of share buyback programs in the provided data.

**M&A Activity and Strategy:** - **Strategic Acquisitions/Investments:** * **Info Edge:** Active investor in startups, acquiring 100% ownership in Aisle Network and Zwayam Digital. Its M&A strategy focuses on "acqui-hires, acquiring for technology, products, small businesses, and adjacent areas that build a technology moat or new capabilities." * **CarTrade Tech:** Acquired OLX India, which is now a key growth driver. * **ABLBL:** Acquired Reebok and TCNS, integrating them into its portfolio. * **Lenskart:** Minority stake in iNeer (South Korea) and 50% stake in JV with Sunrise (Thailand) for backward integration. * **IndiaMART:** Investments in accounting software companies like Busy Infotech, Livekeeping Technologies, and Simply Vyapar Apps. - **Focus on Core:** Info Edge is "unlikely to do major diversification in the near future," focusing on its core classifieds businesses.

**Cash Generation and Free Cash Flow Profiles:** - **Strong Cash Balances:** Many companies maintain healthy cash reserves. * **Info Edge:** Cash Balance of ₹4,825 crores as of December 31, 2025. Cash from Operations (before Taxes) was ₹376.1 crores in Q3 FY26. * **Eternal:** Cash balance of ₹17,820 crore at end Q3 FY26, with a cash surplus of ₹196 crore. * **Meesho:** Cash balance of ₹7,277 crores. Reported Free cash flow of ₹56 crores for LTM. * **CarTrade Tech:** Cash Reserves of ₹1,145 crores in Q3 FY26. Operating cash flow to PAT (excluding finance income) was 95% for trailing 12 months. * **IndiaMART:** Treasury Balance of ₹3,051 crores as of December 31, 2025. Cash generated from Operations was ₹129 crores in Q3 FY26. * **MedPlus:** Closing Cash & Bank Balance of ₹6,080 million in Q3 FY26. Operating Cash Flow was ₹905 million. * **ABFRL:** Gross Cash of ~INR 2,100 crores as of December 2025. * **FirstCry:** Reported positive Free Cash Flow for 9M FY26. - **Profitability-driven Cash Flow:** Companies achieving profitability are generating strong cash flows. * **Info Edge (Recruitment Standalone):** Cash from Operations of ₹373 crores in Q3 FY26. * **FirstCry:** Cash Profit After Tax of ₹1,155 Mn in Q3 FY26, up 23% YoY.

**Capital Efficiency Improvements:** - **Working Capital Management:** Companies like MedPlus and Lenskart are demonstrating improved working capital cycles. MedPlus reduced Net Working Capital to 53 days from 61 days YoY. Lenskart's NWC days were 10.1 days. - **Operating Leverage:** As scale increases, many companies expect to realize operating leverage, improving profitability and capital efficiency (Eternal, Urban Company, V2 Retail). - **Store Payback:** Lenskart's new stores achieve payback in under 12 months, indicating efficient capital deployment.

H. Future Outlook & Projections

The future outlook for the Indian retailing sector remains largely positive, underpinned by strong demographic fundamentals, increasing digital penetration, and a growing aspirational consumer class. Management guidance across companies points towards sustained growth, albeit with varying profitability trajectories depending on the maturity and competitive intensity of their respective segments.

**Industry Growth Projections (with timeframes):** - **Eyewear Market:** Lenskart projects the Indian eyewear market to reach ₹4,00,000 Cr by FY45, from ₹79,000 Cr today. The international market is projected to grow from US$19.1 billion (FY25) to US$24.6 billion by FY30. - **Childcare Products Market:** FirstCry projects the Indian childcare products market to reach INR 5,150-5,450 billion by FY29. - **Digital Ad Spend:** CarTrade Tech anticipates a "long secular trend" of manufacturers/dealers spending more on digital ads. - **Used Car Industry:** CarTrade Tech expects "massive growth in next 12-15 months." - **Hyperpure (Eternal):** Could be a $1 billion topline business with 4-5% Adjusted EBITDA margin ($50 million or INR 450 crore) of annual Adjusted EBITDA profit in three years. - **Going-out (Eternal):** Expects to become a $3 billion NOV business with 5% Adjusted EBITDA margin by FY30.

**Management Guidance Across Companies:** - **DMart:** Implied revenue growth of 16.5% for FY25, with EBITDA margin projected at 7.9%. Continues cluster-based expansion. - **Eternal (Zomato):** * **Quick Commerce (Blinkit):** Confidence on margins expanding to 5-6% of NOV in the long term. Expects to open 3,000 stores by March 2027 (or 3,500-4,000 if competition moderates). NOV per day per store expected to continue to grow. * **Food Delivery:** Expects YoY growth to "inch up gradually towards 20% over time." * **Consolidated:** Adjusted EBITDA to break even by Q3 FY28 (latest). - **Trent:** Outlook over the medium term is positive. Intent to grow presence in existing and new micro-markets/geographies. - **Lenskart:** * **India EBITDA (pre-IndAS 116) margin:** Long-term path to 25% steady state margins. * **Store Expansion:** Potential for ~4,500 additional stores in India (~3,000 in Tier 2+ towns). * **Smart Glasses:** Not projecting material revenue contribution in the near term. - **Swiggy:** * **Food Delivery:** Growth rate guidance of 18%-20% (unchanged), confident about hovering near the upper end. Contribution margin to continue to increase, steady state at 4.5%-5% of GOV. * **Quick Commerce (Instamart):** Contribution margin guidance of breakeven by AMJ'26 (Q1 FY27). Losses should start going down on an EBITDA basis. - **Meesho:** * **Contribution margin:** Will converge back to Q1 FY26 levels in next two quarters. * **Bottom line (absolute adjusted EBITDA losses):** Peaked in Q3 FY26, should decline in next two quarters. * **Ad revenues:** 5.5% to 6% of GMV in steady state. - **Info Edge (Naukri):** Expects to sustain healthy growth. JobHai aims to be 10-15% of Naukri India in 5-6 years. Committed to progressively improving shareholder distributions (up to 65% of PAT). - **Vishal Mega Mart:** Expects around 10% SSSG and 19-20% total sales growth in the near to medium term. FY26 new store openings at upper end or slightly over 100. Aim for net debt closer to zero in next three years. - **Urban Company:** * **Consolidated EBITDA:** Expected to break even by Q3 FY28 (latest). * **India Consumer Services (ex-InstaHelp):** Long-term guidance of 9-10% of NTV, with ambition to grow at north of 20%. * **InstaHelp:** Expected to break even at minimum by FY31. * **FY31 Adjusted EBITDA:** Projected at 1000 crores. - **IndiaMART:** Target 10% from customer addition and 10% from ARPU addition for 20%+ growth. - **ABLBL:** Ambition for a steady 12% growth on the top line. Expect 11-12% pre-Ind AS EBITDA margins steadily. Emerging brands expected to be one-fourth of overall business in next 4-5 years. - **Vedant Fashions:** Expects gross margin of 65% plus. Store openings expected to start normalizing from next 2-3 quarters. - **CarTrade Tech:** Very optimistic about current quarter and future quarters. Expects margins to keep growing. - **ABFRL:** All businesses firmly on long-term growth trajectories. TCNS targeting double-digit growth and double-digit pre-Ind AS margin over medium term. - **FirstCry:** India Multichannel growth rate will be much superior in FY27. International business to achieve breakeven faster than India. - **MedPlus:** Adding 600 new stores in FY26, with similar numbers expected for FY27. SSSG expected to remain at current levels for at least the next quarter. - **V2 Retail:** Adding 150 more stores in FY27. SSSG target 8-10%, revenue growth target 50% for next year. Gross Margin target 28-29%. - **Aditya Vision:** On track to cross 200 operational stores in FY26. Aiming for at least 20% growth this financial year. Expects higher levels of growth next year.

**Emerging Opportunities and Whitespace:** - **Tier 2/3 Market Penetration:** Significant headroom for growth in smaller towns for fashion, general merchandise, and electronics (Trent, Lenskart, VMM, V2 Retail, Aditya Vision). - **Quick Commerce:** Still in its early stages with massive potential for expansion and category diversification (Eternal, Swiggy, FirstCry). - **D2C Brands:** Growth of D2C brands and platforms like Globalbees (FirstCry) and TMRW (ABFRL) indicates a shift towards specialized, digitally native brands. - **AI-powered Services:** AI-enabled platforms for recruitment (Info Edge), eyewear (Lenskart), and B2B matchmaking (IndiaMART) are creating new value propositions and expanding TAM. - **Luxury Retail:** The launch of Galeries Lafayette by ABFRL signifies the growing opportunity in India's luxury market. - **Blue-collar Economy:** Info Edge's JobHai targets the largely unorganized blue-collar hiring market.

**Transformation Themes and Inflection Points:** - **Omnichannel Integration:** Seamless integration of online and offline channels is becoming crucial for customer experience and supply chain efficiency (Trent, Lenskart, MedPlus, FirstCry, V2 Retail). - **AI-First Strategy:** Companies are embedding AI across all operations, from customer service and marketing to supply chain and product development, to drive efficiency and personalization. - **Premiumization & Value:** A dual strategy where some players focus on premium offerings (Lenskart's Owndays, ABLBL's Lifestyle Brands, Vedant Fashions' Twamev) while others double down on value (DMart, VMM, V2 Retail, Meesho). - **Sustainability & ESG:** Increasing focus on responsible business practices, resource efficiency, and employee welfare (Trent, Urban Company).

**Long-term Structural Trends (5-10 year view):** - **Digitalization of Retail:** Continued shift towards online channels, digital payments, and tech-enabled customer interactions. - **Hyper-personalization:** Leveraging data and AI to offer tailored products and services. - **Convenience Economy:** Demand for faster delivery and on-demand services will continue to grow, driving quick commerce and hyperlocal models. - **Brand Consolidation:** Larger players acquiring smaller, specialized brands to expand portfolios and market reach. - **Formalization of Economy:** Benefits players like Info Edge (JobHai) and IndiaMART as more small businesses and labor formalize.

**Potential Disruptions on the Horizon:** - **Generative AI:** While currently an enabler, advanced AI could potentially disrupt search and discovery models, impacting classifieds and marketplaces. - **New Business Models:** Emergence of entirely new retail formats or service delivery models. - **Regulatory Changes:** Significant shifts in labor laws, data privacy, or taxation could alter operating landscapes. - **Macroeconomic Volatility:** Prolonged inflation or economic downturns could impact discretionary spending.

**Expected Margin Evolution:** - **Quick Commerce:** Expected to move towards profitability, with Eternal's Blinkit targeting 5-6% of NOV in the long term, and Swiggy's Instamart aiming for contribution margin breakeven by Q1 FY27. - **Mature Segments:** Companies like Info Edge (Recruitment) and Vedant Fashions are expected to maintain high margins, with potential for further operating leverage. - **Investment-heavy Segments:** Businesses like Urban Company's InstaHelp and ABFRL's TMRW are expected to see losses reduce sequentially as they scale and achieve operating efficiencies, eventually moving towards breakeven. - **Private Label Growth:** Continued increase in private label penetration is expected to support gross margin expansion for many retailers.

I. Company-by-Company Profiles

1. Avenue Supermarts Limited (DMart)

**Brief Description:** DMart is a leading Indian hypermarket chain offering a wide range of products including foods, non-foods (FMCG), and general merchandise & apparel. It operates on a value-for-money proposition, primarily through a cluster-based expansion strategy.

**Scale Metrics:** * **Revenue from Operations (FY24):** INR 49,533 Crs * **Revenue from Operations (9M/26):** INR 49,764 Crs * **Store Count (9M/26):** 442 stores * **Retail Business Area (Q3/26):** 18.3 mn sqft * **Key Product Categories (Share of Revenue 9M/26):** Foods: 57.19%, Non-Foods (FMCG): 19.83%, General Merchandise & Apparel: 22.98%

**Financial Performance Summary:** * **Revenue Growth (FY22-FY24 CAGR):** 27.9% * **EBITDA (9M/26):** INR 4,024 Crs * **EBITDA Margin (9M/26):** 8.1% (fluctuated from 8.2% in FY22 to 8.7% in FY23, 8.3% in FY24, 7.9% in FY25 projection) * **PAT (9M/26):** INR 2,499 Crs * **PAT Margin (9M/26):** 5.0% (fluctuated from 5.3% in FY22 to 6.1% in FY23, 5.4% in FY24, 5.1% in FY25 projection) * **Like For Like Growth (>24 Months) (Q3/26):** 5.6% (decelerating from 8.3% in Q3/25) * **Revenue from Sales per Retail Business Area sq ft (Q3/26):** INR 9,290

**Strategic Priorities and Focus Areas:** * **Cluster Based Expansion:** Continues to be the core strategy for growth, with consistent store additions (50 in FY22, 40 in FY23, 41 in FY24, 50 projected for FY25). * **DMart Ready:** Focus on e-commerce/delivery service in key large towns, expanding city presence (1 city in 2016-17 to 25 cities in 9M/25, then 19 cities in 9M/26, indicating some rationalization). * **Value Proposition:** Maintaining its core strength of offering products at competitive prices.

**Competitive Advantages and Positioning:** * **Efficient Operations:** Known for its lean cost structure and efficient supply chain. * **Strong Brand Loyalty:** Attracts a loyal customer base due to its value-for-money proposition. * **Scale:** Extensive store network and retail area provide significant buying power.

**Key Metrics and KPIs Specific to the Company:** * **Total Bills Cuts (Q3/26):** 10.3 Crs * **Year Wise Store Additions (9M/26):** 27 * **DMart Ready City Presence (9M/26):** 19 Cities

**Management Outlook and Guidance:** * No explicit guidance or outlook statements are present in the provided presentation, but the consistent store expansion implies a continued growth trajectory.

**Recent Developments and Initiatives:** * Continued robust store additions, reaching 442 stores by 9M FY26. * DMart Ready's city presence has seen some consolidation, suggesting a focus on optimizing its e-commerce operations.

2. Eternal Limited (formerly Zomato Limited)

**Brief Description:** Eternal operates a multi-faceted digital platform primarily focused on food delivery, quick commerce (Blinkit), restaurant supply (Hyperpure), and going-out experiences.

**Scale Metrics:** * **B2C NOV (Q3FY26):** INR 25,732 crore (55% YoY growth) * **Consolidated Adjusted Revenue (Q3FY26):** INR 16,692 crore (190% YoY growth) * **Food Delivery NOV (Q3FY26):** INR 9,846 crore * **Quick Commerce (Blinkit) NOV (Q3FY26):** INR 13,300 crore (121% YoY growth) * **Quick Commerce Store Count (Q3FY26):** 2,027 stores

**Financial Performance Summary:** * **Consolidated Adjusted EBITDA (Q3FY26):** INR 364 crore (28% YoY growth) * **Consolidated PAT (Q3FY26):** INR 102 crore (PAT margin 5.0%) * **Food Delivery Adjusted EBITDA Margin (as % of NOV) (Q3FY26):** 5.4% (all-time high) * **Quick Commerce (Blinkit) Adjusted EBITDA (Q3FY26):** INR 4 crore profit (positive for the first time, 0.0% margin) * **Hyperpure Adjusted EBITDA (Q3FY26):** INR 1 crore profit (positive for the first time) * **Going-out Adjusted EBITDA Margin (Q3FY26):** -4.7% (loss of INR 121 crore) * **Cash balance (end Q3FY26):** INR 17,820 crore

**Strategic Priorities and Focus Areas:** * **Quick Commerce Expansion:** Aggressive store additions (211 net new stores in Q3FY26) and shift to inventory ownership (90% of NOV on own inventory). * **Assortment Expansion:** To drive customer engagement and order frequency. * **Profitability Focus:** Driving all businesses towards profitability, with Blinkit and Hyperpure achieving positive EBITDA for the first time. * **Category Creation:** Investing in the "Going-out" business despite current losses. * **Bistro:** Developing quick food delivery service with managed kitchen infrastructure.

**Competitive Advantages and Positioning:** * **Market Leadership:** Dominant player in food delivery, rapidly gaining ground in quick commerce. * **Supply Chain Depth:** Hyperpure serves as a strategic moat with its national scale infrastructure. * **Technology & Data:** Leveraging data for disciplined order selection and operational efficiencies. * **Hyperlocal Presence:** Extensive network of dark stores for quick commerce.

**Key Metrics and KPIs Specific to the Company:** * **Quick Commerce Orders (Q3FY26):** 243.3 million * **Quick Commerce Net Average Order Value (NAOV) (Q3FY26):** INR 547 * **Food Delivery Average Monthly Transacting Customers (Q3FY26):** 24.9 million * **Quick Commerce Average NOV per day, per store (Q3FY26):** INR 750,000

**Management Outlook and Guidance:** * **Quick Commerce:** Confidence on margins expanding to 5-6% of NOV in the long term. Expects to open 3,000-4,000 stores by March 2027. * **Food Delivery:** Expects YoY growth to inch up gradually towards 20% over time. * **Going-out:** Expects losses to reduce sequentially towards breakeven in the next 4-6 quarters, aiming for a $3 billion NOV business with 5% Adjusted EBITDA margin by FY30. * **Hyperpure:** Could be a $1 billion topline business with 4-5% Adjusted EBITDA margin in three years. * **Overall:** ROCE of 40%+ expected from capex and NWC investments. Consolidated EBITDA to break even by Q3 FY28 (latest).

**Recent Developments and Initiatives:** * Blinkit achieved quarterly Adjusted EBITDA profitability for the first time. * Hyperpure also turned Adjusted EBITDA positive. * Shifted to own inventory model for Blinkit, which is margin accretive. * Leadership transition with Albinder Singh Dhindsa appointed CEO, Deepinder Goyal continuing as Director and Vice Chairman.

3. Trent Limited

**Brief Description:** Trent, part of the Tata Group, is a prominent fashion and lifestyle retailer operating multiple formats including Westside (department stores), Zudio (value fashion), and Star (grocery).

**Scale Metrics:** * **Revenue from operations (Q3 FY26 Standalone):** ₹5259 Cr (16% YoY growth) * **Westside Store Count (Q3 FY26):** 278 stores (6.5 Mn+ sq. ft. retail area) * **Zudio Store Count (Q3 FY26):** 854 stores (9.2 Mn+ sq. ft. retail area) * **Total Stores (as of 31st December 2025):** 1164 stores * **Total Retail Area:** 15.8 Mn sq. ft.

**Financial Performance Summary:** * **Revenue Growth (Q3 FY22 to Q3 FY26 CAGR):** 40.5% * **Op. EBIT (Q3 FY26 Standalone):** ₹727 Cr (13.8% margin, up from 8.6% in Q3 FY23) * **PAT (Q3 FY26 Standalone):** ₹640 Cr (12.2% margin, up from 7.4% in Q3 FY23) * **Westside Online Revenue Growth (Q3 FY26):** 38% (contributing >6% of Westside revenues) * **Like-for-like growth (fashion portfolio Q3 FY26):** Marginally negative (due to festive shift)

**Strategic Priorities and Focus Areas:** * **Store Expansion:** Aggressive expansion, particularly for Zudio in Tier II, III cities and new micro-markets (48 Zudio stores opened in Q3 FY26). * **Emerging Categories:** Growing beauty & personal care, innerwear, footwear (contribute >21% of revenues). * **Omnichannel:** Strengthening Westside online and Tata Neu platform traction. * **Product Proposition:** Enhancing product proposition and driving premiumisation. * **Operating Control:** Prefers to retain operating control of stores and ownership of merchandise. * **Sustainability Strategy:** Focus on resource efficiency, responsible design, and people conscious initiatives.

**Competitive Advantages and Positioning:** * **Strong Brand Portfolio:** Westside and Zudio cater to different segments, providing broad market appeal. * **Value Fashion Leadership:** Zudio's rapid expansion and value proposition make it a strong player in its segment. * **Omnichannel Presence:** Leveraging digital platforms alongside physical stores. * **Operational Efficiency:** Investments in automation and technology for productivity gains.

**Key Metrics and KPIs Specific to the Company:** * **Zudio New Stores (9-month period):** Over 75% opened in Tier II, III cities. * **Westside Online Contribution to Westside Revenues (Q3 FY26):** Over 6%. * **CDP - Climate Change 2024 evaluation:** Maintained "B-".

**Management Outlook and Guidance:** * Outlook over the medium term is positive. * Intent to grow presence in both existing and new micro-markets/geographies. * Expect initial outcomes from revenue density and profitability from greater presence in select clusters. * Focus on optimising costs and realising operating efficiencies.

**Recent Developments and Initiatives:** * Significant Zudio expansion in Tier 2/3 cities. * Continued focus on omnichannel growth for Westside. * Investments in sustainability initiatives.

4. Lenskart Solutions Limited

**Brief Description:** Lenskart is an AI-first, vertically integrated omnichannel eyewear retailer, offering a wide range of eyeglasses, sunglasses, and contact lenses. It operates in India and internationally, with a strong focus on technology and customer experience.

**Scale Metrics:** * **Revenue (Q3 FY26):** ₹23,077 Mn (+37.4% YoY) * **Revenue (9M FY26):** ₹64,866 Mn (+29.4% YoY) * **Active Stores (Q3 FY26):** 3,144 (2,439 India, 705 International) * **Eyewear Units Sold (Q3 FY26):** 8.9 Mn (+29.7% YoY) * **India Eyewear Market:** ₹79,000 Cr today, potential ₹4,00,000 Cr by FY45.

**Financial Performance Summary:** * **EBITDA (pre-IndAS 116) (Q3 FY26):** ₹2,649 Mn (+237.8% YoY), 11.5% margin (up 6.8%p YoY) * **PAT (Q3 FY26):** ₹1,327 Mn (+237.9% YoY), 5.8% margin (up 3.4%p YoY) * **India Product Margin (Q3 FY26):** 63.7% (550 bps improvement from FY23) * **International Product Margin (Q3 FY26):** 75.8% (493 bps expansion from FY23) * **ROCE (9M FY26):** 13.1% (26% excluding IPO proceeds) * **Net Working Capital Days (9M FY26):** 10.1 days * **India SSSG (Q3 FY26):** 27.8%

**Strategic Priorities and Focus Areas:** * **AI-first Company:** Leveraging AI for remote optometry, facial recognition, GeoIQ for site selection, AI in hiring and customer service. * **Vertical Integration:** Investing in Hyderabad manufacturing facility for backward integration, capacity, and cost efficiency. * **Omnichannel Ecosystem:** Combining online and physical stores, with 45%+ digitally influenced transactions. * **International Expansion:** Replicating India's success in Japan, Southeast Asia, and Middle East. * **Product Innovation:** Soft launch of Smart Glasses (B by Lenskart). * **Gold Membership:** Deepening customer relationships through loyalty program (8.1 million active members).

**Competitive Advantages and Positioning:** * **Technology Leadership:** Pioneering AI applications in eyewear retail. * **Strong Unit Economics:** High product margins and efficient working capital. * **Rapid Expansion:** Aggressive store rollout and new market entry. * **Customer Experience:** High NPS (80.9 in India) and focus on personalized recommendations.

**Key Metrics and KPIs Specific to the Company:** * **Eye Tests Performed (Q3 FY26):** 6.3 Mn (+53.8% YoY) * **Net New Stores Added (Q3 FY26):** 195 (+141% YoY) * **Quarterly Transacting Customer Accounts (Q3 FY26):** 5.0 Mn (+27.7% YoY) * **New store payback periods:** under 12 months.

**Management Outlook and Guidance:** * **India EBITDA (pre-IndAS 116) margin:** Long-term path to 25% steady state margins. * **Store expansion:** Potential for ~4,500 additional stores in India (~3,000 in Tier 2+ towns). * **Growth:** Prioritizing growth over near-term margin optimization. * **Smart Glasses:** Not projecting material revenue contribution in the near term.

**Recent Developments and Initiatives:** * Hyderabad manufacturing facility on track for commissioning. * Investments in iNeer (South Korea) and Sunrise (Thailand) for technology and manufacturing. * Soft launch of Smart Glasses. * Kids Eye Test started across all India stores.

5. Swiggy Limited

**Brief Description:** Swiggy is a leading online food delivery and quick commerce (Instamart) platform in India, connecting consumers with restaurants and grocery stores.

**Scale Metrics:** * **Food Delivery GOV Growth (Q3 FY26):** 20.5% YoY * **Food Delivery MTU Growth (Q3 FY26):** 22% YoY * **Quick Commerce (Instamart) Warehousing Capacity:** More than doubled over last 4 quarters.

**Financial Performance Summary:** * **Food Delivery Contribution and Adjusted EBITDA Margins:** Expanded in Q3 FY26. * **Quick Commerce (Instamart) Contribution Margin per Order (Q3 FY26):** Worsened to INR 19 per order. * **Cash balance:** Almost $2 billion. * **Implied take rate:** Coming down (due to mix shift).

**Strategic Priorities and Focus Areas:** * **Instamart Monetization:** Focus on monetization with brands and optimizing credit days/margin structures with brand partners. * **Efficiency & Rationalization:** Pulling back inefficient investments and modulating marketing spending. * **Supply Chain Improvements:** Structurally improving supply chain efficiencies, especially in warehousing. * **Customer Value Proposition:** Interventions to ensure value proposition for early users not diluted by irrational competition. * **Maxxsaver:** Committed to habit-building program.

**Competitive Advantages and Positioning:** * **Market Leadership:** Dominant player in food delivery, strong position in quick commerce. * **Extensive Network:** Growing warehousing capacity and delivery network. * **Brand Recognition:** High brand recall and customer base.

**Key Metrics and KPIs Specific to the Company:** * **Instamart MTU addition (Q3 FY26):** Roughly 0.8 million. * **Instamart 25% of stores:** Contribution margin positive.

**Management Outlook and Guidance:** * **Food Delivery:** Growth rate guidance 18%-20% (unchanged), confident about hovering near the upper end. Contribution margin to continue to increase, steady state at 4.5%-5% of gross order value. * **Quick Commerce (Instamart):** Contribution margin guidance of breakeven by AMJ'26 (Q1 FY27). Expects losses to start going down on an EBITDA basis. Throughput per store target of 25%-30% increase. * **Overall:** Expects a little bit more spending on capex, especially on warehousing.

**Recent Developments and Initiatives:** * Aggressive expansion of Instamart warehousing capacity. * Focus on optimizing Instamart's contribution margin towards breakeven. * Monitoring new labor codes for potential impact.

6. Meesho Limited (formerly Fashnear Technologies Private Limited)

**Brief Description:** Meesho is India's largest platform by annual transacting users and orders, focusing on value-conscious consumers and enabling non-GST sellers to sell online.

**Scale Metrics:** * **Net Merchandise Value (NMV) (Q3 FY26):** Rs. 10,995 crores (26% YoY growth) * **Annual Transacting Users (ATU):** 251 million (+34% YoY) * **Annual Transacting Seller Base:** 846,000 (+81% YoY)

**Financial Performance Summary:** * **Contribution margin (Q3 FY26):** 2.3% * **Free cash flow (LTM):** Rs. 56 crores * **Cash balance:** Rs. 7,277 crores * **Logistics costs:** 27.5% of direct costs.

**Strategic Priorities and Focus Areas:** * **Logistics Optimization:** Deciding the right mix between captive logistics (Valmo) and third-party partners for lowest cost. Investing in technology for logistics. * **Product & Technology:** Improving product and investing in better technology for sellers, expanding categories (beauty, personal care, kids, home & kitchen). * **Meesho Mall:** Growing branded products segment. * **Ad Engine:** Building an AI-powered ad engine for small to medium-sized sellers. * **User Acquisition:** Focus on organic traction and product relevance for rural users.

**Competitive Advantages and Positioning:** * **Largest User Base:** India's largest platform by annual transacting users and orders. * **Value Proposition:** Caters to the value-conscious segment and non-GST sellers. * **Logistics Ecosystem:** Building a competitive logistics network. * **Technology-driven:** Investing in AI for ad targeting and platform improvements.

**Key Metrics and KPIs Specific to the Company:** * **NMV to GMV ratio:** Moved up from ~57% to ~60%. * **Meesho Mall growth:** ~70% YoY. * **Top quartile users:** Transact more than 20 times a year.

**Management Outlook and Guidance:** * **Contribution margin:** Will converge back to Q1 FY26 levels in next two quarters. * **Bottom line (absolute adjusted EBITDA losses):** Peaked in Q3 FY26, should decline in next two quarters. * **Ad revenues:** 5.5% to 6% of GMV in steady state. * **Logistics costs:** Will fix and optimize Valmo, aiming for 2%-2.5% of NMB range. * **ATU growth:** Faster than frequency growth over next 1-2 years.

**Recent Developments and Initiatives:** * Launched product supporting non-GST sellers. * Aggressively invested to increase growth rate in marketing, people, and technology. * New subsidiary for Valmo financials visibility.

7. Info Edge (India) Limited (NAUKRI)

**Brief Description:** Info Edge is a leading Indian internet company operating various online classifieds businesses including recruitment (Naukri.com), real estate (99acres.com), matrimonial (Jeevansathi.com), and education (Shiksha.com). It also has a significant investment portfolio in other internet companies.

**Scale Metrics:** * **Billings (Q3 FY26 Standalone):** Rs. 747 crores (+11.8% YoY) * **Recruitment Database:** ~113 million resumes. * **Employees:** 6,150 (as of Dec 31, 2025). * **Investments:** Listed entities (Eternal, PB Fintech) and numerous strategic/unlisted investments.

**Financial Performance Summary:** * **Revenue from Operations (Q3 FY26 Standalone):** Rs. 765 crores (+13.9% YoY) * **Operating Profit (Q3 FY26 Standalone):** Rs. 297 crores (+12.9% YoY) * **Operating Profit Margin (Q3 FY26 Standalone):** 38.9% * **Recruitment Operating Profit Margin (Q3 FY26 Standalone):** 59% * **Cash Balance (as of Dec 31, 2025):** Rs. 4,825 crores * **Deferred Sales Revenue (Q3 FY26):** Rs. 1,240 crores

**Strategic Priorities and Focus Areas:** * **AI Integration:** Enhancing search quality, personalization, productivity, launching AI-powered features (AI-Rex, Naukri 360). * **Premium Segment Offerings:** Naukri Top Tier, iimjobs, hirist. * **Value Segment:** JobHai (blue-collar play). * **99acres:** Rollout of 99Shorts (short video feed). * **Jeevansathi:** Product improvements to drive engagement, platform free for women. * **Shiksha:** Pivoting towards counselling and marketing services, diversifying study abroad offerings. * **M&A Strategy:** Open to acqui-hires, acquiring for technology, products, small businesses, and adjacent areas.

**Competitive Advantages and Positioning:** * **Dominant Market Share:** Clear leader in recruitment, gaining share in real estate and matrimonial. * **Proprietary Data:** Large volumes of proprietary data and daily interactions. * **AI/ML Capabilities:** Deep integration of AI and ML across platforms. * **Strong Investment Portfolio:** Strategic investments in high-growth internet companies.

**Key Metrics and KPIs Specific to the Company:** * **Recruitment B2C Billings (Q3 FY26):** Rs. 39 crores (+17% YoY). * **99acres Traffic-time share (Q3 FY26):** 46% (up from 44% in Q2). * **Jeevansathi Billings (Q3 FY26):** Rs. 36 crores (+29% YoY). * **AI-Rex:** Serving 100+ clients, closed 20,000 job mandates.

**Management Outlook and Guidance:** * **Overall:** Committed to progressively improving shareholder distributions (up to 65% of PAT). Continue to make investments for future growth. * **Recruitment:** Expect to sustain healthy growth. * **99acres:** Positioned for continued growth, outpaced the market. * **JobHai:** Medium-term opportunity, can potentially contribute meaningfully to recruitment revenue over time, aiming to be 10-15% of Naukri India in 5-6 years.

**Recent Developments and Initiatives:** * Board approved revised dividend payout ratio. * Launched AI-Rex platform. * Acquired 100% ownership of Aisle. * Shiksha pivoting its business model.

8. Vishal Mega Mart Limited (VMM)

**Brief Description:** Vishal Mega Mart is a value retail chain in India, offering fashion, general merchandise, and food products with a focus on affordability and aspirational products for Indian customers, particularly in Tier 2 and 3 cities.

**Scale Metrics:** * **Revenue from Operations (Q3 FY26):** Rs. 3,670 crores (+17% YoY) * **Revenue from Operations (9M FY26):** Rs. 9,792 crores (+19.9% YoY) * **Total Store Count (as of Dec end):** 771 stores * **Trading Area:** 13.2 million square feet * **Cities Present:** 517

**Financial Performance Summary:** * **Adjusted SSSG (Q3 FY26):** 9.6% (adjusted for Durga Puja shift), Reported SSSG: 6.1% * **EBITDA (Q3 FY26):** Rs. 605 crores (+19.8% YoY), 16.5% margin (vs 16.1% last year) * **PAT (Q3 FY26):** Rs. 313 crores (+19.1% YoY), 8.5% margin (vs 8.4% last year) * **Own Brand Contribution (9M FY26):** 74.5% to revenue (up 100 bps) * **Net Debt (as of Dec end):** Rs. 800 crores (reduced from INR1,000 crores in Sep end)

**Strategic Priorities and Focus Areas:** * **New Store Expansion:** Accelerated momentum, opened 29 new stores in Q3 FY26 (total 80 in 9M FY26), with focus on South India, Gujarat, Maharashtra. * **New Format Stores:** Opened 4 new small format stores (total 10 operational). * **Quick Commerce:** Expanded to 723 stores across 485 cities, with 12 million registered users. * **Product Strategy:** Deliberately introducing higher price points with better fashionability and functionality, continuously improving quality. * **Emerging Business Portfolio:** Growing Reebok, Van Heusen Innerwear, and American Eagle.

**Competitive Advantages and Positioning:** * **"Making aspirations affordable" proposition:** Resonates with a large customer base. * **Rapid Tier 2/3 Expansion:** Strong presence in smaller cities and towns. * **High Own Brand Contribution:** Drives margins and differentiation. * **Omnichannel Approach:** Leveraging physical stores and quick commerce.

**Key Metrics and KPIs Specific to the Company:** * **SSSG Components (9M FY26):** ~70% from transactions, 30% from average bill value. * **Winter Merchandise SSSG (Q3 FY26):** Double-digit. * **Reebok Network:** Expanded to 200+ stores (doubled from 100 at acquisition). * **Innerwear Retail Like-for-Likes (Q3 FY26):** North of 30%.

**Management Outlook and Guidance:** * **SSSG:** Expect around 10% SSSG in the near future. * **Total Sales Growth:** Expect 19-20% on average in the near to medium term. * **New Store Openings:** FY26 expected to be at the upper end or slightly over 100 stores. Retain guidance of 80-100 for FY27. * **Net Debt Reduction:** Plan to reduce by another INR75-100 crores, aiming for net debt closer to zero in the next three years. * **Emerging Brands:** Expected to be one-fourth of overall ABLBL business in next 4-5 years.

**Recent Developments and Initiatives:** * Launched winter and festive marketing campaign with Manushi Chhillar. * Undertook store right-sizing in Karnataka. * Significant expansion of Reebok and strong recovery in Van Heusen Innerwear.

9. Urban Company Limited (URBANCO)

**Brief Description:** Urban Company is a leading home services platform, connecting customers with trained professionals for a wide range of services. It operates in India and internationally, with new growth initiatives in quick-delivery services (InstaHelp) and product sales (Native).

**Scale Metrics:** * **Net Transaction Value (NTV) (Q3 FY26 Consolidated):** ₹1,081 crores (+36% YoY, excluding KSA impact) * **Revenue from Operations (Q3 FY26 Consolidated):** ₹383 crore (+42% YoY, excluding KSA impact) * **InstaHelp Orders (Q3 FY26):** 1.61 million

**Financial Performance Summary:** * **Adjusted EBITDA Loss (Q3 FY26 Consolidated):** ₹17 crores * **India Consumer Services (ex-InstaHelp) Adjusted EBITDA Margins (Q3 FY26):** 5.6% of NTV (up from 4.4% in Q3 FY25) * **Native Business NTV (Q3 FY26):** Up 93% YoY * **International Markets Adjusted EBITDA Margin (Q3 FY26):** 2% of NTV * **InstaHelp Adjusted EBITDA Loss (Q3 FY26):** ₹61 crores (loss per order reduced from ~₹760 in Q2 to ~₹381 in Q3)

**Strategic Priorities and Focus Areas:** * **Investment in Growth:** Continue to invest thoughtfully in new growth opportunities like Native and InstaHelp. * **InstaHelp Supply Chain:** Building a high-quality, reliable, trained supply pool at a micro-market level, with extensive background verification, training, and social security benefits. * **Native Business Strategy:** Scaling the business and making year-on-year improvements in margin profile, leveraging operating leverage. * **Core India Consumer Services:** Aiming for instantaneous delivery (within the hour/half an hour) wherever applicable. * **Manufacturing Partnership:** Partnered with Amber for water purifiers (Native business) to reduce risk and improve product quality.

**Competitive Advantages and Positioning:** * **Market Leadership:** Dominant player in organized home services. * **Quality Supply Pool:** Focus on training, background verification, and partner welfare. * **Technology Platform:** Leveraging technology for booking, matching, and service delivery. * **International Presence:** Established operations in UAE and Singapore.

**Key Metrics and KPIs Specific to the Company:** * **India Consumer Services NTV Growth (Q3 FY26):** 21% YoY. * **International Markets NTV Growth (Q3 FY26):** 79% YoY (like-to-like). * **Top performing partners:** Doing between 140 to 150 or more hours per month.

**Management Outlook and Guidance:** * **Consolidated EBITDA:** Expected to break even by Q3 FY28 (latest), sustainably. * **India Consumer Services (ex-InstaHelp):** Long-term guidance of 9-10% of NTV, with ambition to grow at north of 20%. * **InstaHelp:** Expected to break even at minimum by FY31. * **Native:** Expected to break even and generate very healthy margins over time. * **International Markets:** Expected to grow profitably and continue to compound profitably. * **FY31 Adjusted EBITDA:** Projected at 1000 crores.

**Recent Developments and Initiatives:** * Significant reduction in InstaHelp loss per order. * Partnership with Amber for water purifier manufacturing. * Exploring subscription and multi-day booking for InstaHelp.

10. IndiaMART InterMESH Limited (INDIAMART)

**Brief Description:** IndiaMART is India's largest online B2B marketplace, connecting buyers with suppliers across various industries. It provides a platform for businesses to discover products, services, and suppliers, and also invests in accounting and business enablement SaaS solutions.

**Scale Metrics:** * **Revenue from Operations (Q3 FY26 Consolidated):** Rs. 402 crores (+13% YoY) * **Collections from Customers (Q3 FY26 Consolidated):** Rs. 426 crores (+17% YoY) * **Deferred Revenue (Q3 FY26 Consolidated):** Rs. 1,775 crores (+19% YoY) * **Paying Suppliers (Q3 FY26):** 221 thousand (declined by 1 thousand QoQ) * **Unique Business Inquiries (Q3 FY26):** 28 million (+4% YoY)

**Financial Performance Summary:** * **EBITDA (Q3 FY26 Consolidated):** Rs. 134 crores (33% margin) * **Net Profit (Q3 FY26 Consolidated):** Rs. 188 crores * **Cash generated from Operations (Q3 FY26 Consolidated):** Rs. 129 crores * **Treasury Balance (as of Dec 31, 2025):** Rs. 3,051 crores * **ARPU Growth (Q3 FY26):** 6% YoY (currently Rs. 67 thousand)

**Strategic Priorities and Focus Areas:** * **AI Adoption:** Accelerating adoption of AI-enabled technologies to enhance product quality, user experience, engagement, and trust. * **Buyer Acquisition:** Continuing to tune-in product market fit for buyers to generate more buyers. * **Advertising Strategy:** Optimizing for cost and finding more keywords for buyer and supplier advertising. * **Busy Infotech:** Investing in enhancing product experience and growing sales channels for sustained high growth. * **Platform Upgrade:** Opportunities for upgrading user interface, user experience, multi-model, multilingual capabilities, chatbots, and content moderation. * **Strategic Outlook:** Expanding buyer & supplier network, focusing on large & medium enterprises, improving engagement through commerce enablement, fintech & accounting, and business enablement SaaS.

**Competitive Advantages and Positioning:** * **Market Leadership:** Largest online B2B marketplace in India. * **Network Effects:** Vast network of buyers and suppliers creates a strong moat. * **Early AI Adoption:** Pioneer in using AI/ML for matchmaking. * **Strong Treasury:** Significant cash reserves for strategic investments.

**Key Metrics and KPIs Specific to the Company:** * **Busy New Licenses Sold (Q3 FY26):** 10 thousand (total 431 thousand). * **Repeat Traffic:** Running at all-time high of 58-59% repeat inquiries. * **Voice AI:** Already using voice AI for 80% of buyer interactions.

**Management Outlook and Guidance:** * **Market Saturation:** Market is not saturated; there is unlimited demand for quality leads. * **Business Model:** Will remain a software and tech-oriented company, will not move to a fulfillment model. * **Collection Growth:** Mid-teen growth (14%) sustainability needs to repeat for 1-2 quarters to confirm trend. * **Growth Strategy:** Target 10% from customer addition and 10% from ARPU addition for 20%+ growth. * **Churn:** Expect "plus/minus 0 customer addition" for one more quarter.

**Recent Developments and Initiatives:** * Implemented a price increase in the silver subscription tier. * Investments in accounting software companies (Busy Infotech, Livekeeping Technologies). * Accelerating AI adoption across the platform.

11. Aditya Birla Lifestyle Brands Limited (ABLBL)

**Brief Description:** ABLBL is a part of the Aditya Birla Group, managing a portfolio of lifestyle brands including fashion, innerwear, and emerging businesses like Reebok and American Eagle. It focuses on offering aspirational products at affordable prices.

**Scale Metrics:** * **Overall Revenue (Q3 FY26 Consolidated):** INR2,343 crores (+10% YoY) * **Overall Revenue (9M YTD FY26 Consolidated):** INR6,222 crores (+6% YoY) * **Total Footprint:** 3,300+ stores, 4.8 million square feet, 785+ cities and towns. * **Reebok Network:** 200+ stores (doubled from 100 at acquisition).

**Financial Performance Summary:** * **EBITDA (Q3 FY26 Consolidated):** INR431 crores (+21% YoY), 18.4% margin (up 180 bps YoY) * **PAT (Q3 FY26 Consolidated):** INR100 crores (+66% YoY) * **Lifestyle Brands EBITDA Margin (Q3 FY26):** 20.6% (highest in last four years) * **Emerging Business Segment Revenue Growth (Q3 FY26):** 13% (19% on comparable basis, excluding Forever 21) * **Net Debt (as of Dec end):** INR800 crores (reduced from INR1,000 crores in Sep end) * **Lifestyle Brands Like-to-Like Growth (Q3 FY26):** 5%

**Strategic Priorities and Focus Areas:** * **Disciplined Execution:** Sharply focused and disciplined execution across brands. * **Product Portfolio Upgrades:** Targeted upgrades, particularly in wedding-like categories. * **Enhanced Retail Experience:** Ongoing renovation, addition of relevant assortment, focused efforts to attract new customers. * **Network Expansion:** Added around 90-plus stores during Q3 FY26, with a strong pipeline for future expansion. * **Emerging Brands Strategy:** Clearly defined strategies around growth and profitability for Reebok, Van Heusen Innerwear, and American Eagle. * **Women's Wear:** Identified as another growth opportunity in Van Heusen and Allen Solly.

**Competitive Advantages and Positioning:** * **Diverse Brand Portfolio:** Caters to a wide range of consumer segments and price points. * **Strong Network:** Extensive retail footprint across India. * **Operational Efficiency:** Focus on disciplined execution and cost optimization. * **Emerging Brands Growth:** Reebok and Van Heusen Innerwear showing strong growth and profitability improvements.

**Key Metrics and KPIs Specific to the Company:** * **Reebok Apparel Contribution:** 36%+ (from 25% at acquisition). * **Van Heusen Innerwear Retail Like-for-Likes (Q3 FY26):** North of 30%. * **Louis Philippe Network:** 500+ stores, opportunity for 1,500 stores.

**Management Outlook and Guidance:** * **Overall Growth:** Expect growth momentum to remain strong and profitable. Ambition for a steady 12% growth on the top line. * **EBITDA Margin:** Expect 11-12% (pre-Ind AS margins) steadily. * **Net Debt:** Plan to reduce by another INR75-100 crores, aiming for net debt closer to zero in the next three years. * **Emerging Brands:** Expected to be one-fourth of overall ABLBL business in next 4-5 years. * **Innerwear Business:** Hopeful for a profitable year by FY28. * **Reebok:** Poised for very aggressive growth, with exponential scale-up possibilities.

**Recent Developments and Initiatives:** * Opened a bridge-to-luxury Louis Philippe store ('Philippe') in Delhi. * Continued strong performance and network expansion for Reebok. * Significant recovery and loss reduction in Van Heusen Innerwear.

12. Vedant Fashions Limited

**Brief Description:** Vedant Fashions is a leading Indian company specializing in wedding and celebration wear for men and women, with prominent brands like Manyavar, Mohey, Twamev, Diwas, and Mebaz.

**Scale Metrics:** * **Sale of Customer (Q3 FY26):** ~INR 692 crores * **Revenue from Operations (Q3 FY26):** INR 492 crores (-3.8% YoY) * **EBOs (9M FY26):** 648 in 241 cities & towns in India, 16 overseas. * **Retail Footprint (9M FY26):** 1.79 mn sq. ft.

**Financial Performance Summary:** * **SSSG (9 Months FY26):** 1.8% * **Gross Margin (Q3 FY26):** 65.7% (vs 67.3% last year, impacted by GST increase) * **EBITDA Margin (Q3 FY26):** 44.6% (vs 47.4% last year) * **PAT Margin (Q3 FY26):** 27.4% (vs 30.9% last year) * **Profit After Tax (Q3 FY26):** INR 135 crores (-14.6% YoY) * **Twamev Overall Growth (Q3):** 40%, SSSG: 12%

**Strategic Priorities and Focus Areas:** * **Retail Business Focus:** Strengthening quality, enhancing customer experience, deepening design offerings, attractive price points, strengthening retail training. * **Store Expansion:** Selective expansion, rationalizing smaller format and underperforming locations. * **Marketing Strategy:** Integrated across brands and channels (digital and traditional), with campaigns like 'The Manyavar Shaadi Show'. * **COCO Stores:** Conversion from franchisee stores for experimentation. * **Price Point Strengthening:** Introducing products at competitive price points (e.g., Kurta-set and jacket at INR 2,624).

**Competitive Advantages and Positioning:** * **Category Leader:** Manyavar is the leader in branded Indian wedding & celebration wear. * **Strong Brand Portfolio:** Caters to various segments (premium, value, regional). * **High Gross Margins:** Reflects premium positioning and brand strength. * **Disciplined Operations:** Focus on inventory turns and KPI management.

**Key Metrics and KPIs Specific to the Company:** * **Blended ASP (current YTD):** ~INR 5,000 (Manyavar below INR 5,000, Twamev INR 15,000-16,000, Mohey INR 6,000-7,000). * **Net Square Feet Addition (Q3):** ~5,500 sq. ft. * **Wedding Days (Feb '26):** Very strong (almost double-digit).

**Management Outlook and Guidance:** * **Focus:** Core strength and ongoing initiatives for sustainable long-term growth. * **Consumer Sentiment:** Optimistic about government initiatives supporting revival. * **Store Openings:** Expected to start normalizing from next 2-3 quarters. * **Gross Margin:** Expect 65% plus.

**Recent Developments and Initiatives:** * Launched Twamev exclusive brand outlet of 9,000 sq. ft. in Mumbai. * Implemented various marketing campaigns across brands. * Reviewing existing fleet of stores for rationalization.

13. CarTrade Tech Limited

**Brief Description:** CarTrade Tech is a leading online automotive platform in India, operating #1 platforms for new and used cars (CarWale), bikes (BikeWale), and used products (OLX). It also runs a vehicle auction business.

**Scale Metrics:** * **Highest Ever Revenues (Q3 FY26):** INR 228 crores * **Yearly Users:** 150 million across 3 platforms (CarWale, BikeWale, OLX). * **MAUs (Q3 FY26):** 85 million. * **Vehicles Auctioned:** 1.9 million vehicles a year. * **Used Cars Listed on OLX:** 65% of all used cars sold in India.

**Financial Performance Summary:** * **Revenue CAGR (FY '23 to FY '26):** 32% * **EBITDA (Q3 FY26):** INR 78 crores (up 56% YoY), 37% margin (up from 28% last year) * **Profit After Tax (Q3 FY26):** INR 62 crores (up 35% YoY) * **Adjusted EBITDA (Cash Proxy) (Q3 FY26):** INR 101 crores (first time crossed INR 100 crores) * **Cash Reserves (Q3 FY26):** INR 1,145 crores * **Return on Equity (Q3 FY26):** Double digits (first time) * **OLX Revenue Growth (Q3 FY26):** 18% (highest ever), EBITDA Margin: 37%.

**Strategic Priorities and Focus Areas:** * **Labor Code Provision:** INR 6.5 crores during Q3. * **Elite Buyer Program (OLX):** Commercially fully launched, large revenue opportunity. * **Verification Product (OLX):** To be launched to enhance trust and safety. * **Used Car Financing:** Working on fintech perspective (marketplace model with banks/NBFCs). * **Combined Offering:** Launched combined CarWale OLX subscription for all dealers. * **AI Interventions:** To improve user experience (e.g., loan approval, pricing guidance, product listing checks). * **Data Usage:** Using own public, private, and private consumer/customer data for AI.

**Competitive Advantages and Positioning:** * **Market Leadership:** #1 automotive, used platform, vehicle auction platform in India. * **High Organic Traffic:** 95% organic traffic. * **Asset-Light Model:** Almost no capex. * **Strong Auction Business:** 1.9 million vehicles auctioned annually. * **AI Capabilities:** Investing in AI talent and cutting-edge products.

**Key Metrics and KPIs Specific to the Company:** * **Consumer Group EBITDA Growth (Q3 FY26):** 55%, Margin: 43%. * **Remarketing Business Profit Growth (Q3 FY26):** 68%, Margin: 30%. * **OLX EBITDA Growth (Q3 FY26):** 70%.

**Management Outlook and Guidance:** * **Overall Outlook:** Very optimistic about current quarter and future quarters. * **OLX Growth Rate:** Expected to go up. * **Consumer Group Growth Rate:** Sustaining (32% over 9-month period). * **Margins:** Expected to keep growing. * **Capital Allocation:** Long-term intent to return money to shareholders; inorganic opportunities considered.

**Recent Developments and Initiatives:** * Full commercial launch of OLX Elite Buyer Program. * Planned launch of OLX Verification Product. * Created CarTrade Laboratories for new product development.

14. Aditya Birla Fashion and Retail Limited (ABFRL)

**Brief Description:** ABFRL is a leading fashion conglomerate in India, with a diverse portfolio of brands spanning across value (Pantaloons), premium (Louis Philippe, Van Heusen, Allen Solly), ethnic wear (Tasva, Sabyasachi), luxury retail (Collective, Mono Brands, Galeries Lafayette), and digital-first brands (TMRW).

**Scale Metrics:** * **Revenue Y-o-Y Growth (Q3 FY26):** 8% (INR 2,374 crores) * **Overall Retail Network:** 1,226 stores (7.7 million sq. ft.) as of Q3 end. * **Ethnic Portfolio:** 650+ stores. * **TMRW Annual Revenue Run Rate:** INR 1,100 crores (including Wrogn).

**Financial Performance Summary:** * **Overall EBITDA Growth (Q3 FY26):** 13%, 15.6% margin (vs 14.9% last year) * **Reported Loss (Q3 FY26):** INR 141 crores (Normalized Loss: INR 115 crores) * **Ethnic Business Margin (Q3 FY26):** 22.7% (up 350 basis points) * **Pantaloons LTL (adjusted for Pujo and EOSS shift) (Q3 FY26):** 3% * **Ethnic Business Q3 Revenue (Q3 FY26):** INR 703 crores (up 20% YoY), LTL: 10%. * **TCNS Losses YTD (pre-Ind AS):** Declined by over 50% vs last year. * **Gross Cash (as of Dec 2025):** ~INR 2,100 crores.

**Strategic Priorities and Focus Areas:** * **Pantaloons Refresh:** Moving away from value-led fashion, building premium brand proposition, new retail identity, larger stores. * **Ethnic Portfolio:** Focus on design-led and premium ethnic segments (Tasva, Sabyasachi, Tarun Tahiliani). * **TCNS:** Focused product strategy, pivot towards higher mix of occasion wear, streamlining network. * **Luxury Retail:** Deepen consumer engagement, add new/relevant brands (Galeries Lafayette). * **TMRW:** Building omnichannel presence, strong back-end technology and data science-led capabilities. * **Network Expansion:** Invested in growth capex, adding net 5.5 lakh sq. ft. over last 12 months.

**Competitive Advantages and Positioning:** * **Diverse Brand Portfolio:** Caters to a wide spectrum of consumers from value to luxury. * **Strong Loyalty Programs:** Pantaloons Greencard loyalty program contributes >70% of revenues. * **Strategic Investments:** Expanding into high-growth segments like ethnic wear and luxury. * **Omnichannel Presence:** Leveraging digital and physical channels across brands.

**Key Metrics and KPIs Specific to the Company:** * **Pantaloons Customer Base:** 16 million+. * **Tasva Network:** 85 stores. * **TCNS Network:** Streamlined from ~650 stores to 480 stores. * **Galeries Lafayette Brands Launched:** ~250 (70% don't exist in India).

**Management Outlook and Guidance:** * **Business Trajectories:** All businesses firmly on long-term growth trajectories. * **Profitability Focus:** Driving profitability, with ABFRL (excluding TMRW) EBITDA positive on pre-Ind AS basis YTD. * **TCNS:** Targeting double-digit growth and double-digit pre-Ind AS margin over medium term. * **TMRW:** Improving profitability trends, breakeven somewhere between FY '29. * **Pantaloons LTL Target:** Mid- to high single-digit growth, overall double-digit growth.

**Recent Developments and Initiatives:** * Commenced operations of India's first Galeries Lafayette flagship luxury departmental store. * Rebranding and relaunch of OWND! * Signed a celebrity for Pantaloons marketing, repositioning strategy.

15. Brainbees Solutions Limited (FirstCry)

**Brief Description:** FirstCry is India's largest multi-channel retailer for Mothers', Babies', and Kids' products. It operates a comprehensive ecosystem including online platforms, physical stores, home brands, and a parenting community, with international presence through FirstCry and a D2C brand aggregator (Globalbees).

**Scale Metrics:** * **Annual Unique Transacting Customers (AUTC):** 11.3 Mn (+10% YoY vs Dec 2024) * **Gross Merchandise Value (GMV) (Q3 FY26):** 34,247 Mn (+10% YoY) * **Revenue from Operations (Q3 FY26):** 24,236 Mn (+12% YoY) * **Modern Stores:** 1,202 (incl. FOFO & COCO, as of Dec 31, 2025). * **SKUs Offered:** 1.9 Mn+ from 7,833 brands.

**Financial Performance Summary:** * **PAT (Q3 FY26 Consolidated):** Positive (adjusted for ESOP cost) * **Consolidated Adjusted EBITDA (Q3 FY26):** 1,538 Mn (6.3% Adjusted EBITDA Margin) * **Cash Profit After Tax (Q3 FY26):** 1,155 Mn (+23% YoY) * **India Multichannel Adjusted EBITDA (Q3 FY26):** 1,638 Mn (10.0% Adjusted EBITDA Margin) * **Globalbees Revenue (Q3 FY26):** 5,150 Mn (+22% YoY), Adjusted EBITDA grew 147% YoY. * **International Business Adjusted EBITDA Losses (Q3 FY26):** Reduced by 25% YoY.

**Strategic Priorities and Focus Areas:** * **RocketBees:** Internal, asset-light logistics initiative for improved delivery TATs. * **Firstcry Qwik:** New initiative for faster delivery (3-hour promise) across full range of products. * **Offline Channel Strategy:** Realigning product portfolio to a "width to depth" strategy to address more footfalls and conversions. * **International Business Strategy:** Laser-focused on sustainable growth, reducing adjusted EBITDA losses, improving home brand mix. * **Globalbees Strategy:** Rationalizing non-core brands to focus on core categories. * **Customer Engagement:** Extending customer engagement beyond early childhood, hyper-personalizing app experience. * **New User Acquisition:** Partnerships with 13,000+ Hospitals and Maternity Clinics.

**Competitive Advantages and Positioning:** * **Largest Multi-channel Retailer:** Dominant position in Mothers', Babies', and Kids' products. * **Strong Home Brands:** BabyHug is a leading brand in Asia Pacific. * **Innovative Logistics:** RocketBees and Firstcry Qwik initiatives. * **Parenting Community:** India's largest and most engaged parenting community. * **Omnichannel Ecosystem:** Seamless integration of online and offline channels.

**Key Metrics and KPIs Specific to the Company:** * **Home Brands Share in India Multichannel GMV:** >55% in FY25 (from 37% in FY20). * **Mobile App Downloads:** 159 Mn FirstCry India mobile app downloads. * **International Segment AOV:** 4.3 times compared to India Multi-Channel AOV. * **RocketBees:** Expected to cover 45-50% of total volumes by mid-2026.

**Management Outlook and Guidance:** * **India Multichannel:** Structurally, growth rate will be much superior in FY27. Continues to be PAT and Free Cash Flow positive. * **International Business:** Focus on sustainable growth and reducing Adjusted EBITDA losses, expecting to achieve breakeven faster than India. * **Globalbees:** Endeavor to complete brand rationalization by Q1 FY27. Core categories delivering consistent 30% YoY growth. * **Overall:** Super confident about structurally delivering superior growth in FY27.

**Recent Developments and Initiatives:** * Expanded RocketBees to 22 cities. * Piloted Firstcry Qwik in Pune, Bangalore, Hyderabad. * Rationalizing non-core brands within Globalbees portfolio.

16. MedPlus Health Services Limited

**Brief Description:** MedPlus is India's second-largest pharmacy retailer, operating a large network of stores across multiple states and offering a wide range of pharmaceutical and non-pharmaceutical products, including a growing private label portfolio. It also has a diagnostics business.

**Scale Metrics:** * **Consolidated Revenue (Q3 FY26):** 18,061 million * **Network Size (Q3 FY26):** 5,112 stores (2.6 million+ square feet) * **Presence:** 13 states and 1 union territory, serving ~800 cities. * **Private Label Sales (of total revenues) (Q3 FY26):** 22.2%

**Financial Performance Summary:** * **Consolidated Operating EBITDA (Q3 FY26):** 96.8 crores (5.4% margin, +21.1% YoY) * **Store Level EBITDA Margin (stores older than 12 months) (Q3 FY26):** 12.4% * **Store Level Operating ROCE (12+ months) (Q3 FY26):** 77.7% (up from 61.7% in Q3 FY25) * **Net Working Capital (Q3 FY26):** 53 days (down almost 10 days YoY) * **Diagnostics Operating EBITDA Margin (Q3 FY26):** 15.5% * **Private Label Pharma Gross Margin:** 65% to 70% (vs 13-14% for branded pharma). * **PAT (Q3 FY26):** 577.9m (3.2% margin, +26.0% YoY)

**Strategic Priorities and Focus Areas:** * **Store Openings:** Aggressive expansion, opened 228 stores in Q3 FY26 (net 182 additions). * **Geographic Expansion:** Going deeper into existing states, then adjacent states (Chhattisgarh, Kerala started). * **Omni-channel:** Expanding target addressable market, increasing retention, extending <2 hour delivery to more locations. * **Private Label Contribution:** Increasing in pharma products (sub-chronic and chronic ailments) and FMCG products (nutrition and wellness). * **Warehouses:** Operationalizing new warehouses to improve availability. * **Employee Retention Scheme:** Launched in three cities to improve attrition rates.

**Competitive Advantages and Positioning:** * **Extensive Network:** Second-largest pharmacy retailer with a strong hyperlocal presence. * **Strong Store-Level Economics:** ROCE of over 70% for mature stores. * **Private Label Strategy:** High-margin private label products drive profitability. * **Omni-channel Capability:** Ability to service 100% market (acute + chronic) with 2-hour delivery.

**Key Metrics and KPIs Specific to the Company:** * **Stores Operational for Less than 2 Years:** 23%. * **Active Plans (as on Dec 31):** 1,80,000 (covering 3,68,000 underlying lives). * **Repeat Business (Pharma and Non-Pharma Private Label) every 3 months:** close to 90%. * **Store Level Revenue Growth (12+ months) (Q3 FY26):** 10.5%.

**Management Outlook and Guidance:** * **New Stores Outlook FY '26:** Adding 600 new stores. * **FY '27 Store Additions:** "at least be the similar numbers of this year". * **SSSG Outlook:** Expected to remain at current levels for at least the next 1 quarter. * **Operating Margins:** Confident about reaching 6% over time.

**Recent Developments and Initiatives:** * Tweaked incentive structure at store level to consider total sales growth. * Launched employee retention scheme in three cities. * Expanding into new states like Chhattisgarh and Kerala.

17. V2 Retail Limited

**Brief Description:** V2 Retail is a value fashion and lifestyle retail chain in India, primarily targeting the "neo middle class" and "middle class" population in Tier 2 and 3 cities. It offers a wide range of apparel and lifestyle products.

**Scale Metrics:** * **Revenue Growth Y-o-Y (Q3 FY26):** 57% (Rs. 929 crores) * **Total Store Count (Q3 FY26):** 294 stores (approx. 31.9 lakh square feet retail space) * **Presence:** 25 states in India, across 225 cities. * **Revenue Mix:** Men's Wear 41%, Ladies Wear 27%, Kids Wear 24%, LifeStyle 8%.

**Financial Performance Summary:** * **Normalized SSSG (adjusted for Durga Puja shift) (Q3 FY26):** 12.8%, Reported SSSG: 2%. * **EBITDA (Q3 FY26):** Rs. 174 crores (+56% YoY), 18.7% margin. * **PAT (Q3 FY26):** Rs. 102 crores (+99% YoY), 10.9% PAT Margin. * **ROE (9 Months FY26):** 24.5% (vs 23.2% in FY 2025, 10.7% in FY 2024). * **Volume Growth (Q3 FY26):** 48% YoY. * **Average Bill Value (ABV) (Q3 FY26):** Rs. 964 (vs Rs. 924 in Q3 FY25). * **Average Selling Price (ASP) (Q3 FY26):** Rs. 363 (vs Rs. 343 in Q3 FY25).

**Strategic Priorities and Focus Areas:** * **Investments:** In analytics-driven merchandising, supply chain responsiveness, and operational discipline. * **Geographic Coverage:** Improving through balanced mix of rural market entry and deeper penetration in Tier-II, Tier-III cities. * **Expansion Focus:** Disciplined expansion (35 new stores added in Q3), efficient inventory deployment. * **Lease Terms:** Reassessed for store leases, aligned with industry peers. * **Vendor Payments:** Prepaid vendors to be best paymasters and maintain priority. * **Omnichannel:** Planning to launch (using store inventory as dark warehouse). * **Leadership Hiring:** Looking for a new CEO.

**Competitive Advantages and Positioning:** * **Value Proposition:** Strong customer traction due to price value positioning, product refresh cycle, assortment, quality, pricing. * **Rapid Expansion:** Aggressive store rollout in Tier 2/3 cities. * **Improving Profitability:** Strong EBITDA and PAT growth, improving ROE. * **Operating Leverage:** Decreasing employee expenses per square feet.

**Key Metrics and KPIs Specific to the Company:** * **Full Price Sales Contribution (Q3 FY26):** 92%. * **Older Stores (>5 years old) SSSG (last two years):** >20%. * **New Stores Contribution:** To EBITDA from first month of operations. * **CAPEX per Store:** ~Rs. 1.1 crore.

**Management Outlook and Guidance:** * **New Stores Outlook FY '27:** Adding 150 more stores. * **SSSG Target Next Year:** 8% to 10%. * **Revenue Growth Target Next Year:** 50%. * **Gross Margin Target:** 28% - 29%. * **Q4 Momentum:** Expect to maintain. * **Omnichannel Sales Target:** ~5% of total sales.

**Recent Developments and Initiatives:** * Completed physical verification for property, plant, and equipment, resolving an earlier audit qualification. * Reassessed lease terms for store leases. * Utilizing QIP proceeds to prepay vendors and for marketing. * Resolution passed for stock split.

18. Aditya Vision Limited

**Brief Description:** Aditya Vision is a regional consumer electronics retail chain in India, primarily operating in Bihar, Uttar Pradesh, and Jharkhand. It focuses on disciplined cluster-led expansion and offering a wide range of electronics products.

**Scale Metrics:** * **Revenues Growth Y-o-Y (Q3 FY26):** ~28% (INR 649 crores) * **Revenues Growth Y-o-Y (9 Months FY26):** 15% (INR 2,047 crores) * **Store Count (as on 31st December 2025):** 192 stores. * **Revenue Contribution (Q3 FY26):** Bihar 75%, UP 13%, Jharkhand 13%.

**Financial Performance Summary:** * **Same-Store Sales Growth (Q3 FY26):** 17% (compared to 12% in previous year), 5% for 9 Months FY26. * **EBITDA Growth Y-o-Y (Q3 FY26):** 14% (absolute terms), 8.2% margin. * **PAT Growth Y-o-Y (Q3 FY26):** 18% (excluding exceptional expense of INR 1.5 crores), 4.2% margin. * **Gross Margins (9 Months FY26):** Maintained at 15%. * **AC Category Growth (Q3):** 22%, Washing Machine: >30%, Panel Televisions: 30%, Mobile: 20%.

**Strategic Priorities and Focus Areas:** * **Store Expansion:** Disciplined cluster-led manner, fortifying presence in Bihar and Jharkhand, expanding simultaneously in UP, Chhattisgarh, MP. * **Sales Drive:** Concentrated on driving sales through incentives and promotional activities. * **Western UP:** Moving towards expansion in this region. * **Presence Fortification:** Fortifying presence in Bihar and Jharkhand.

**Competitive Advantages and Positioning:** * **Regional Dominance:** 26 years of consistent execution in its core markets. * **Disciplined Expansion:** Focus on cluster-led growth. * **Customer-centric Policies:** Beats competition with different policies/schemes. * **Strong Festive Performance:** High growth during festive periods.

**Key Metrics and KPIs Specific to the Company:** * **New Stores Added (Q3):** 4. * **Total Store Additions (9 Months FY26):** 17 stores. * **Stores in First Year of Operations:** ~30 stores (out of 192). * **Mobile Prices:** Expected to go up by 4% to 6% from January onwards.

**Management Outlook and Guidance:** * **Store Count FY '26:** On track to cross 200 operational stores, hope to better it. * **Growth Target This Financial Year:** Aiming for at least 20%. * **Q1 FY '27:** Expected to be absolutely very good (pent-up demand). * **Expansion Pace:** Much accelerated and aggressive in UP, Chhattisgarh, MP. * **EBITDA Margin for Full Year:** 8.7% (if not better, similar).

**Recent Developments and Initiatives:** * Preponed expansion plans into MP and Chhattisgarh. * Focused on driving sales through incentives and promotions after a weak Q1. * Opportunistically built AC inventory due to OEM discounts.