More Stories

Informist, Thursday, Jul. 23, 2026

 

Please click here to read all liners published on this story

--Vishal Mega Mart: To start small-format stores in Uttar Pradesh, Haryana 
--CONTEXT: Vishal Mega Mart mgmt's comments at post-earnings analyst concall 
--Vishal Mega Mart: See opportunity for over 3,000 small-format stores 
--Vishal Mega Mart: Lower promotion expenses aided Q1 gross margin 
--Vishal Mega Mart: Raised prices in premium category 
--Vishal Mega Mart: Do not see possibility of further price hikes in Jul-Sept 
--Vishal Mega Mart: Retain double-digit growth view for same-store sales 
--Vishal Mega Mart: Acquired 7% new customers in Q1 leading to mkt share gain 
--Vishal Mega Mart: Apr-Jun inventory stood at INR 19 billion 
--Vishal Mega Mart: Confident of keeping gross margins at current level in Q2
 

 

By Astha Oriel and Adhithya Aji

 

NEW DELHI – Vishal Mega Mart Ltd.'s management does not expect any further price hikes in the September quarter. The company has implemented price hikes when they were necessary, the management told analysts during the post-earnings conference call Thursday. 

 

Price increases have largely been confined to the highest price points, which cater to the most affluent consumers in the company's target group, management said. "At this moment, we do not feel the need to take any further price increases beyond what we have already done. This is of course based on the assumption that the situation will continue as it was." 

 

Management said the company has not raised prices in price-sensitive categories such as children's clothing and staple foods. "Our focus this quarter has been to ensure that we maintain prices and to ensure that all the numbers add up, etc. The impact of maintaining prices has been pretty good on our sales-to-sales growth," the management said.

 

Lower promotional expenses helped the company's gross margin improve to 28.7% in the June quarter from 28.4%. Management said it was confident of maintaining gross margins at around the current level in the September quarter.

 

"If the current assumptions and the current cost structure continue, we are quite confident there is absolutely no challenge... But if the current circumstances continue and do not even improve, we do not see any sustainability issue." The company also retained its guidance for double-digit same-store sales growth. Same-store sales growth stood at 10% in the June quarter. 

 

On store expansion, the company said it will continue to roll out small-format stores in Uttar Pradesh and Haryana to cater to neighbourhood customers and plans to expand the format to more states over time. "But at this moment, the small format is focused in UP (Uttar Pradesh) and Haryana, where we have to a large extent exhausted the opportunity for the larger format." The company sees potential for more than over 3,000 small-format stores across India. 

 

Management said the company acquired 7% new customers through market share gains during the June quarter. Inventory stood at INR 19 billion at the end of the quarter.

 

The company reported a net profit of INR 2.59 billion on revenue of INR 37.27 billion for the June quarter. Thursday, shares of Vishal Mega Mart closed 1.9% lower at INR 109.87 on the National Stock Exchange. The Haryana-based retailer announced its June quarter earnings during market hours.  End

 

Edited by Saji George Titus

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.