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Informist, Thursday, Jul. 23, 2026

 

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--Vishal Mega Mart Apr-Jun consol net profit INR 2.59 bln 
--Analysts saw Vishal Mega Mart Apr-Jun consol net profit at INR 2.54 bln 
--Vishal Mega Mart Apr-Jun consol revenue INR 37.27 bln 
--Analysts saw Vishal Mega Mart Apr-Jun consol revenue at INR 37.65 bln 
--Vishal Mega Mart Apr-Jun consol PAT INR 2.59 bln vs INR 2.06 bln yr ago 
--Vishal Mega Mart Q1 consol revenue INR 37.27 bln vs INR 31.40 bln yr ago 
--Vishal Mega Mart board approves limiting foreign ownership in co at 49.99% 
--Vishal Mega Mart Q1 consol reported EBITDA INR 5.45 bln vs INR 4.59 bln 
--Vishal Mega Mart Q1 consol EBITDA margin 14.6%, unch from year ago 
--Vishal Mega Mart Apr-Jun same-store-sales growth at 10% 
--Vishal Mega Mart net added 24 stores, total count at 819 
--Vishal Mega Mart: Sees inflation impact on demand to taper in coming qtrs 
--Vishal Mega Mart: High inflation weighed on demand environment in Apr-Jun 

 

By Arya S. Biju 

 

MUMBAI – Slightly better than expected same-store sales growth amid steady consumption demand helped Vishal Mega Mart Ltd. report decent top line and bottom line growth for the June quarter. While the company managed to beat analysts' expectation for its bottom line, it failed to meet the Street's estimate for its top line by a slight margin. Higher costs related to purchase of stock-in-trade and employee benefits kept the company's bottom line growth in check during the quarter under review. 
 

The hypermarket chain operator's consolidated net profit for the reporting quarter rose around 26% on year to INR 2.59 billion, beating analysts' expectation of INR 2.54 billion by a slight margin. The growth in net profit was, however, slower than the 46% on-year rise it reported in the trailing quarter. It was also the second slowest on-year rise in the company's net profit since its shares were listed in December 2024.

 

The retailer's consolidated revenue for the quarter rose nearly 19% on year to INR 37.27 billion, but was slightly below the INR 37.65 billion estimated by the Street. The on-year growth in revenue was also the second slowest since listing. The company's other income for the June quarter jumped 95% on year to INR 331 million, taking its total income to INR 37.60 billion, up 19% on year.

 

The company's same-store sales growth in the June quarter was 10%, slightly above the 9-9.5%, estimated by the Street, but below the adjusted same-store sales growth of 13.2% it reported in the March quarter and 11.4% in year-ago quarter. Same-store sales growth is a key revenue barometer for the retail industry. It refers to the increase or growth in revenue of a company's retail stores that have been in operation for at least a year. Hence, it discounts revenue additions arising from new stores and helps measure how each store is performing on an average. Higher same-store sales growth essentially leads to top line growth for retailers.

 

During the June quarter, Vishal Mega Mart gross added 27 stores and net added 24 stores. As on Jun. 30, the company operated 819 stores across 559 cities. Of the 27 stores, 10 were added in southern India, a market where the company continues to see strong momentum and is actively deepening its presence. "Consumption demand trends during the quarter remained steady, supported by resilient economic activity," Gunender Kapur, managing director and chief executive officer of the company, said in a post-earnings press release. 

 

The company's total expenses for the quarter grew 18.5% on year to INR 34.14 billlion, largely in line with the 18.7% rise in total sales. This was mainly on the back of a near 21% on-year jump in costs related to purchase of stock-in-trade at INR 25.31 billion. The company's employee benefits expenses for the quarter jumped over 25% on year to INR 2.14 billion and other expenses rose 19% to INR 3.10 billion. Its tax expenses for the quarter rose 25% on year INR 872 million. 

The company's reported earnings before interest, tax, depreciation, and amortisation grew nearly 19% on year to INR 5.45 billion on a consolidated basis, slightly below the INR 5.48 billion estimated by the Street. Its consolidated EBITDA margin for the quarter remained unchanged on year at 14.6%. The company's operating EBITDA for the quarter grew 19.3% on year to INR 3.87 billion, and the operating EBITDA margin improved 10 basis points on year to 10.4%. 

 

"While elevated inflation weighed on the demand environment in Q1, we expect the impact to taper down in the subsequent quarters. We remain confident and excited about the journey ahead, underpinned by strong fundamentals of our business and continued execution of our growth strategy," Kapur said. 

 

Along with the June quarter earnings, the company's board also approved a proposal to cap the aggregate foreign ownership of the company at 49.99% of the total equity instruments issued by the company. The proposal has been approved considering that the existing business of one of its wholly-owned subsidiaries requires the company to be an Indian-owned and controlled company, it said.

 

Post the earnings announcement, shares of Vishal Mega Mart fell more than 5% to INR 106.31, their lowest level in nearly four months. The shares, however, came slightly off lows and were trading nearly 2% lower at INR 110.10 at 1355 IST.  End

 

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

 

Edited by Avishek Dutta

 

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