Vishal Mega Mart delivered robust financial results for Q1 FY27, with consolidated net profit rising 25.6% year-on-year to ₹258.77 crore. The company's revenue from operations increased 18.7% to ₹3,727.01 crore compared to ₹3,114.10 crore in the corresponding quarter last year. Same-store sales growth stood at 10%, indicating strong performance from both new store openings and increased sales from the established network. The company's gross margin improved by 30 basis points to 28.7%, while EBITDA increased 18.6% to ₹544.6 crore with margins remaining flat at 14.6%. Net profit margins improved to 6.9% in Q1 FY27 compared to 6.6% in the year-ago period, demonstrating enhanced operational efficiency. Earnings per share (EPS) improved to ₹0.55 during the quarter, reflecting the company's strong bottom-line performance, up from ₹0.36 in the previous quarter.
The board of Vishal Mega Mart approved a proposal on 23 July 2026 to cap the aggregate foreign ownership of the company at 49.99% of total equity instruments. According to reports from Business Standard, the decision was made during a board meeting held on this date. The cap applies to foreign ownership through depositories and covers any person resident outside India. The board also re-appointed an independent director during the same meeting, with Neha Bansal re-appointed as a Non-Executive Independent Director for a second term of one year from 23 September 2026 to 22 September 2027, subject to shareholder approval. As per TradingView News, the board also approved the re-appointment of an independent director during the same meeting, ensuring compliance with regulatory requirements for corporate governance standards.
The approved cap will apply to foreign ownership on a fully diluted basis, meaning it includes all potential equity instruments that could be issued by the company. As reported by Business Standard, this framework ensures that foreign ownership remains within the specified limit regardless of future equity issuances or changes in the company's capital structure. The decision establishes a clear framework for foreign investment in Vishal Mega Mart by limiting aggregate foreign ownership to 49.99% of total equity instruments, providing stability for both domestic and international investors. The proposal requires shareholder approval to ensure the company remains Indian owned and controlled.
Vishal Mega Mart continued its aggressive expansion during Q1 FY27, opening 27 gross new stores and closing 3, resulting in 24 net store additions. The company's network consequently increased to 819 stores at the end of June 2026, compared with 795 stores at the end of the March quarter. The retailer operated across 559 cities, 28 states and two Union territories, with a total retail area of approximately 1.38 crore square feet. Tier-III markets accounted for the largest portion with 423 stores, followed by 204 stores in Tier-I cities and 192 stores in Tier-II locations. The company had 311 stores in North India, 222 in the South, 204 in the East and 82 in the West and Central regions. Southern region expansion is a core focus, representing 10 out of the 27 newly opened gross stores, indicating strategic geographic diversification.
Vishal Mega Mart's own brands contributed 75.2% of product sales during Q1 FY27, while third-party brands accounted for 24.6%. Apparel remained the largest product category, contributing 47.4% of revenue with revenue increasing to ₹1,765.5 crore from ₹1,489.4 crore. General merchandise accounted for 27.3% of revenue at ₹1,016.7 crore, while FMCG contributed approximately 25.2% with revenue rising to ₹937.5 crore from ₹787 crore. The company reported 17.5 crore registered loyalty customers, representing year-on-year growth of 16%, with around 95% of gross revenue coming from registered loyalty customers. Digital registered users on the platform increased 44% year-on-year to approximately 1.41 crore, with quick commerce integrations now scaled to 767 stores across 520 cities - over 93% of the network. This rapid scaling demonstrates the company's successful hybrid retail model combining traditional brick-and-mortar with digital delivery capabilities.
