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Informist, Friday, May 15, 2026

 

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--Vishal Mega Mart: Small-format store agenda progressing well 
--CONTEXT: Vishal Mega Mart mgmt's comments in post-earnings analyst concall 
--Vishal Mega Mart: Optimistic about FY27 despite inflationary fears 
--Vishal Mega Mart: Co had dealt well with past inflationary situations 
--Vishal Mega Mart: See full impact of West Asia war playing out in May-Jun 
--Vishal Mega Mart: Discounts to remain on par with market leader 
--Vishal Mega Mart: Seeing inflation in pdts using petroleum derivatives 
--Vishal Mega Mart: Have margin levers in place to pull, if required 
--Vishal Mega Mart:7% of FY26 same-store sales growth came from new customers 
--Vishal Mega Mart: Performance of new stores in line with past trends 
--Vishal Mega Mart: Confident about not slowing down on expansion 
--Vishal Mega Mart: Co's vendors faced LPG, labour availability issues in Q4 
--Vishal Mega Mart: Will continue to invest on co's brands in future 
 

 

By Shakshi Jain and Astha Oriel

 

NEW DELHI – Hypermarket chain Vishal Mega Market Ltd. is optimistic about its prospects in 2026-27 (Apr-Mar) despite concerns about higher inflation due to the war in West Asia. "...the reason for that is that 75% of our revenue is now from private brands and that gives us an ability to cushion our customers and consumers from the impact of very serious inflation," Managing Director and Chief Executive Officer Gunender Kapur said in a post-earnings conference call with analysts on Friday.

 

Kapur stressed that the company has dealt with such challenging situations "quite nicely" in the past. The company plans to offer discounts at least on par with market leaders in the sector and will not slow down on expansion, as per the top executive. "We also have a few (margin) levers to pull (if needed)," Kapur said.

 

While the inflationary impact of the war is currently visible in input prices of products using petroleum derivatives, the full impact of the crisis is likely to play out in the remaining part of May and the month of June, according to Kapur. "That's why we've not seen any impact on demand so far," he said.  

 

The company's vendors faced challenges in the March quarter due to shortage of liquefied petroleum gas amid the war, and unavailability of labour due to an exodus triggered by some state assembly elections, Kapur said, adding that these were getting resolved.

 

For the March quarter, the retailer posted a consolidated net profit of INR 1.68 billion, up nearly 46% on year. Its revenue from operations rose over 22% to INR 31.14 billion for the three months. Kapur said the company increased promotion intensity during the quarter to clear the then existing inventory and make way for new spring and summer merchandise. "And the second of course is that, as I mentioned earlier, we saw an uptick in consumption. And we were quite determined to maximise our share of that growth," he added.

 

Kapur also assured that the company would continue to invest in promotion of its brands in the future as well.

 

For the full year FY26, the company's consolidated net profit rose almost 33% on year to INR 8.39 billion while its revenue rose over 20% to INR 129.06 billion. The company's same-store sales growth for the 12 months stood at 11% – 7% from new customers, 2% from existing customers buying more items, and 2% from existing customers resorting to higher price points, Kapur said.

 

On the performance of new stores, Kapur said this was in line with past trends and the agenda tied to small-format stores was progressing well. The company opened three new small-format stores in the March quarter to take its overall tally in the category to 13. 

 

At 1400 IST, shares of the company traded nearly 2% higher at INR 120 on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Avishek Dutta

 

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