Vishal Mega Mart shares surged as much as 12% to an intraday high of ₹115.40 on Monday, August 24, after the company announced the reappointment of Gunender Kapur as Managing Director and Chief Executive Officer for a fresh five-year term from September 1, 2026 through August 31, 2031. The stock was trading 10.89% higher at ₹114.69 as of 10:33 AM, putting it on track for its highest single-day gain since its listing in December 2024. According to CNBC TV18, the stock opened at ₹109 and was trading at ₹112.40 as of 9:50 AM, significantly outperforming the broader market with BSE Sensex up only 0.15% at 77,658. Around 39 million shares had already changed hands on BSE and NSE combined during the session.
Kapur's current tenure was originally scheduled to expire on June 26, 2027, having been appointed as managing director and chief executive officer for a three-year term with effect from June 27, 2024. As per the latest exchange filing, Kapur has been reappointed for a tenure of five years from September 01, 2026 through August 31, 2031 and redesignated as 'Founder, Managing Director & Chief Executive Officer' of the company. The board approved the reappointment based on recommendations from the Nomination & Remuneration Committee, with shareholder approval still pending. Kapur holds a bachelors degree in engineering with honours from the Birla Institute of Technology and Science and a masters degree in business administration from the University of Delhi. He brings over 42 years of experience in management and investment in the consumer and retail sectors, previously associated with Hindustan Lever, Unilever Nigeria PLC, Reliance Industries and TPG Capital. The company clarified that Kapur is not related to any of its directors and is not debarred from holding the office of director by any Securities and Exchange Board of India (SEBI) order or other authority.
As reported by CNBC TV18, Vishal Mega Mart operates as a retail company offering products across three major categories - apparel, general merchandise and FMCG. As of 30 June 2026, the company operated 819 stores across 559 cities in 28 states and two Union territories, along with its mobile application and website. The company currently has a market capitalisation of ₹52,650 crore and is headquartered in Gurugram, Haryana, listed on both NSE and BSE under the symbol VMM. The company's extensive retail network spans multiple states and territories, positioning it as a significant player in India's retail sector. The retailer added 24 net new stores during Q1, taking its total store count to 819, while same-store sales growth stood at 10% year-on-year.
According to CNBC TV18, Vishal Mega Mart reported strong financial results for Q1 FY27, with consolidated net profit jumping 26% year-on-year to ₹259 crore compared with ₹206.07 crore in Q1 FY26. The company's net sales climbed 18.7% year-on-year to ₹3,727 crore during the quarter, demonstrating robust growth across key financial metrics. EBITDA increased 18.7% to ₹545 crore, with the EBITDA margin remaining stable at 14.6%. 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. The company has also expanded its quick-commerce initiative to 767 stores across 520 cities and had a registered user base of 1.41 crore. Managing Director and CEO Gunender Kapur noted that elevated inflation had weighed on demand in Q1, but the company expected the impact to taper in subsequent quarters, while remaining confident about its growth strategy.
According to Bloomberg data, 19 out of 20 analysts tracking the company maintain a 'buy' rating, with none recommending a 'hold' and only one suggesting a 'sell'. The average 12-month consensus price target of ₹148.78 implies an upside of 31.2%. However, the stock has faced recent pressure, falling 16.5% year-to-date and 24.7% in the last 12 months, and has been down 14% in the past three months. Despite this weakness, the stock trades relatively cheap compared to discretionary peers, with Morgan Stanley noting that it currently trades at 42.8 times its 12-month forward price-to-earnings multiple, which the brokerage considers attractive. The stock has recovered more than 15% since the recent decline to trade at current levels.
