Vishal Mega Mart shares declined 5.1% to touch an intraday low of ₹106.31 on Thursday following the retailer's Q1 FY27 results announcement, with the stock trading at ₹109.53 as of 2:19 PM on the NSE. According to latest reports, the stock has fallen more than 2% in the past week and 7% over the month, with a year-to-date decline of 19%. The value retailer continues to benefit from healthy consumer demand, double-digit same-store sales growth and an expanding retail footprint during the quarter. The company maintains a total market capitalisation of ₹51,368.13 crore as of July 23, 2026.
Despite the market decline, Vishal Mega Mart delivered robust financial results for the quarter ended June 30, 2026. The company posted a 25.6% year-on-year surge in consolidated net profit to ₹258.8 crore compared to ₹206.1 crore in Q1 FY26, as reported in the regulatory filing. Revenue from operations increased 18.7% year-on-year to ₹3,727.10 crore from ₹3,140.32 crore in the corresponding quarter last year. Earnings Before Interest, Tax, Depreciation and Amortisation grew by 18.6% to ₹544.6 crore from ₹459.2 crore earlier. EBITDA margin remained stable at 14.6%, while the net profit margin expanded by 38 basis points to 6.9% from 6.6% a year ago. Basic earnings per share increased to ₹0.55 from ₹0.45 and diluted earnings per share rose to ₹0.55 from ₹0.44. The company reported profit before tax of ₹346 crore, up 25.4% from ₹276 crore a year ago, with PBT margin improving to 9.3% from 8.8%.
On the operational front, according to the latest reports, same-store sales growth stood at 10% during the quarter, indicating healthy demand across existing stores. The company added 27 gross new stores during the quarter, taking its total store count to 819 across 559 cities, compared with 795 stores at the end of March. Tier-III cities remained the biggest growth driver with 423 stores, followed by 204 stores in Tier-I cities and 192 stores in Tier-II markets. The retailer now operates in 28 states and two Union Territories, covering a retail area of approximately 1.38 crore square feet. Apparel contributed 47.4% of revenue, followed by general merchandise at 27.3% and FMCG at 25.2%. Own brands accounted for 75.2% of revenue, while the company's quick commerce initiative had expanded to 767 stores across 520 cities by the end of June, with a registered user base of 1.41 crore.
The company's digital ecosystem continued to strengthen significantly during the quarter. The loyalty programme registered 17.5 crore customers as of June 30, 2026, up 16% year-on-year, with around 95% of gross revenue coming from registered loyalty members. The digital business expanded with 767 stores offering hyperlocal delivery across 520 cities, while registered online users increased 44% to 1.41 crore. This digital growth complemented the company's physical expansion strategy and enhanced customer engagement across multiple touchpoints.
Commenting on the outlook, Managing Director and CEO Gunender Kapur noted that elevated inflation weighed on the demand environment during the June quarter, but added that the company expects the impact to taper down in subsequent quarters. He stated that consumption demand remained steady during the quarter, supported by resilient economic activity, while the retailer remained confident and excited about the journey ahead, backed by its business fundamentals and growth strategy. During the quarter, the company opened 10 stores in the Southern region, a market where it continues to see strong momentum and is actively deepening its presence. The company also announced that it has decided to cap aggregate foreign ownership at 49.99%, keeping total foreign shareholding below the 50% mark, though it did not disclose current foreign ownership levels.
