Vishal Mega Mart Q1 result: Net profit surges 37.2% YoY to ₹206 crore; EBITDA margin expands

Vishal Mega Mart on Wednesday, August 13, reported a 37.2% year-on-year (YoY) surge in its consolidated net profit to ₹206 crore for the first quarter of the 2025-26 financial year (Q1FY26). In the corresponding period of the previous fiscal year, its profit was at ₹150 crore.

Its profit growth was propelled by improved cost efficiencies across the board and the benefits of operating leverage that came with its expansion.

The company’s revenue from operations increased by 21% YoY to ₹3,140.3 crore during the quarter under review, compared to ₹2,596.2 crore in the June quarter of FY25, it said in a regulatory filing.

The surge in revenue was bolstered by a healthy same-store sales growth (SSSG) of 10.5%. Furthermore, the Eid and the preponement of the Ugadi festival to March 2025, from April 2025, also impacted revenue growth.

At an operational level, the firm’s EBITDA (earnings before interest, tax, depreciation, and amortization), also known as operational profit, stood at ₹459 crore in Q1FY26, marking a 25.6% increase from ₹365.4 crore in the year-ago period.

Its EBITDA margin expanded to 14.6% during the reporting quarter, as against 14.1% in Q1FY25.

During the reporting quarter, its category-wise revenue contribution was 47.4% for Apparel, 27.3% for General Merchandise and 25.1% for FMCG.

As of June 30, 2025, the Company operates 717 stores across 472 cities spanning a total retail area of about 12.4 million square feet. Furthermore, its customer base stood at approximately 151 million.

Commenting on the earnings, Gunender Kapur, the Managing Director and Chief Executive Officer of Vishal Mega Mart, said: “In Q1FY26, we continued to deliver a strong performance in both revenue and profitability and demonstrated the strength of our purpose-led strategy of making aspirations affordable for consumers across geographies in India.”

The company’s growth was mainly driven by the continued strength of its brand portfolio, strong footfall, and store additions. During the quarter, it added 23 gross new stores. It expanded its presence in South India (Karnataka, Kerala, among others) and opened a new store in Gujarat and Maharashtra, he added.

“The Indian economy remained steady in Q1FY26. Moderation in retail inflation, coupled with favourable tax policies, is expected to offer relief to household budgets and improve consumer confidence,” Kapur said.

Shares of Vishal Mega Mart closed 3.45% higher at ₹144.85 apiece on the National Stock Exchange (NSE) on Wednesday. However, the results were announced after the markets closed.

The retail company has a total market capitalisation of ₹67,519.96 crore, as of August 13, 2025, as per data on the NSE.