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Informist, Saturday, Oct. 25, 2025

By Shakshi Jain

MUMBAI – Hypermarket chain Vishal Mega Mart Ltd. is expected to report strong year-on-year growth in top line as well as bottom line for the September quarter, helped by the addition of new stores and healthy growth in same-store sales.

Same-store sales growth refers to the increase in revenue of retail stores or restaurants that have been in operation for at least a year.

Vishal Mega Mart's consolidated bottom line for the reporting quarter is expected to rise 31% on year but fall almost 20% sequentially to INR 1.36 billion, according to the average of the estimates of four brokerages. The highest estimate for net profit is INR 1.43 billion by Kotak Securities Ltd. and the lowest is INR 1.25 billion by JM Financial Institutional Securities Pvt. Ltd.

The company's revenue for the September quarter is seen rising 20% on year to INR 29.14 billion. However, this would mean a sequential fall of 7%. The highest estimate for revenue is INR 29.61 billion from Emkay Global Financial Services Ltd. and the lowest is INR 28.64 billion from JM Financial. 

JM Financial estimates that Vishal Mega Mart added 22 new stores in the September quarter to take its overall tally to 739. As of Jun. 30, Vishal Mega Mart had a total of 717 stores across 472 cities with a retail area of 12.4 million square feet.

The company is expected to report INR 3.69 billion in earnings before interest, tax, depreciation, and amortisation for the September quarter, according to the average of estimates from four brokerages. The company had recorded an EBITDA of INR 3.03 billion for the year-ago quarter.

Motilal Oswal Financial Services expects a 40-basis-point year-on-year improvement in the company's EBITDA margin for the reporting quarter on account of operating leverage. In the June quarter, the company's EBITDA margin had improved 50 basis points on year to 14.6%. Its gross margins improved marginally on year to 28.4% in the June quarter.

Vishal Mega Mart has decided to keep its gross margins flat in 2025-26 (Apr-Mar) and any gains from the rise in gross margin will be invested back into the company to improve the "quality of the business," Managing Director and Chief Executive Officer Gunender Kapur had said in August. Kapur had added that the company's EBITDA margin would continue to improve due to operating leverage.

Vishal Mega Mart had reported a consolidated net profit of INR 1.04 billion for the year-ago quarter on revenue of INR 24.36 billion. The company is yet to announce a date for the disclosure of its September quarter results.

On Friday, shares of Vishal Mega Mart ended at INR 148.29 on the National Stock Exchange, up 1.3% from the previous close. The stock is up nearly 3% since the company reported its results for the June quarter on Aug. 13. Shares of Vishal Mega Mart were listed on exchanges in December last year.

All the six research recommendations on the stock available with Informist have a 'buy' or equivalent rating on Vishal Mega Mart with an average target price of INR 153.

Following are the Jul-Sept earnings estimates for Vishal Mega Mart from four brokerages in descending order of the estimate of net profit in INR million:

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Edited by Avishek Dutta

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