Vishal Mega Mart Ltd

Vishal Mega Mart Limited reported revenue from operations of INR3,399 crores for Q2 FY27, a 14% growth year-over-year, with same-store sales growth at 5.4% (adjusted for festival shifts, around 9%). Operating EBITDA was INR262 crores, up 3.7% YoY, with a margin of 7.7% (down from 8.5% last year). Profit after tax, adjusted for ESOP charges, rose 6.4% to INR172 crores. For H1 FY27, revenue grew 16.4% to INR7,126 crores, with same-store sales growth of 7.7% (adjusted to 9.5%). Operating EBITDA for the half was INR649 crores, up 12.5% YoY, with a margin of 9.1% (down from 9.4% last year). The company added 26 new stores in Q2 and 53 in H1, expanding to 844 stores across 582 cities. Private brands contributed 74% of H1 revenue. The Belong & Co. pilot store, targeting young urban consumers, showed early positive feedback with conversion rates above 50%. Management emphasized maintaining pricing stability at lower and mid-price points, with higher price points absorbing inflation. They noted no significant impact from inflation on gross margins, attributing resilience to cost reengineering. The company aims to open over 100 stores annually, prioritizing profitability and expansion into Tier 2/3 cities. Management expressed confidence in demand momentum despite inflation and festival shifts, with no signs of moderation in consumer spending.

The document highlights strong revenue growth, successful store expansion, and positive customer feedback on new initiatives, with management expressing confidence in demand and operational resilience.