Vishal Mega Mart reported a 6.7% rise in net profit for the quarter ended September 2026, reaching ₹172 crore. The company's revenue grew 14% year-on-year to ₹3,398 crore, showing strong sales despite challenges. However, profit margins declined, leading to a drop in share price to a 52-week low.
- Revenue increased 14% to ₹3,398 crore in Q2 FY27.
- Net profit rose 6.7% to ₹172 crore.
- Operating EBITDA grew 3.7% to ₹262 crore.
- Operating EBITDA margin fell by 80 basis points to 7.7%.
- Profit margin decreased by 30 basis points to 5.1%.
- Apparel segment's revenue share dropped from 42.2% to 40.6%.
- General merchandise and FMCG segments increased their revenue shares.
- Company added 26 new stores, totaling 844 stores.
How did Vishal Mega Mart's revenue perform in Q2 FY27?
The company’s revenue for the quarter ended September 2026 rose 14% year-on-year to ₹3,398 crore, up from ₹2,981 crore in the same period last year. This growth reflects strong sales across various segments, despite some shifts in consumer demand.
What changes occurred in the revenue composition by segment?
The apparel segment's contribution to total revenue declined from 42.2% in Q2 FY26 to 40.6% in Q2 FY27. Meanwhile, the general merchandise and FMCG (fast-moving consumer goods) segments increased their shares to 29.6% and 29.7%, respectively. This shift indicates a diversification in the company’s sales mix.
How did the company's profitability and margins change?
Operating EBITDA rose 3.7% year-on-year to ₹262 crore, compared to ₹252.9 crore in the previous year. However, the operating EBITDA margin decreased by 80 basis points to 7.7%, down from 8.5% in Q2 FY26. Net profit increased 6.7% to ₹172 crore, but the net profit margin fell by 30 basis points to 5.1% from 5.4% the previous year. These margin contractions affected investor confidence.
Why did Vishal Mega Mart's shares hit a 52-week low?
Despite revenue and profit growth, the decline in operating and net profit margins disappointed investors. This led to a nearly 6% drop in share price, reaching a 52-week low of ₹86.6 on the National Stock Exchange. Margin pressures often signal rising costs or pricing challenges, which can impact future earnings.
What was the impact of festive season timing on sales?
The company reported a same-store sales growth of 5.4% for the quarter. However, this growth was affected by the shift of the festive season from Q2 to Q3, which typically boosts sales. This timing change likely delayed some sales that would have otherwise occurred in Q2.
How many new stores did Vishal Mega Mart add in Q2 FY27?
During the quarter, Vishal Mega Mart added 26 new stores, increasing its total store count to 844. Expanding the store network supports the company’s growth strategy by increasing market reach and customer access.
Frequently Asked Questions
Q: What was Vishal Mega Mart's net profit growth in Q2 FY27?
A: The net profit grew by 6.7% year-on-year to ₹172 crore.
Q: How did the apparel segment perform compared to other segments?
A: The apparel segment's revenue share declined to 40.6%, while general merchandise and FMCG segments increased their shares to nearly 30% each.
Q: Why did the company's margins decline despite revenue growth?
A: Margin decline was due to increased costs or pricing pressures, which reduced operating EBITDA and net profit margins.
Q: How did the timing of the festive season affect sales?
A: The shift of the festive season from Q2 to Q3 led to lower same-store sales growth in Q2, as some sales were delayed.
