Vishal Mega Mart Q2 net profit rises 3.7% YoY; shares hit 52-week low as margins dissapoint

Vishal Mega Mart shares are in focus on Wednesday, after the company released its quarterly earnings for the period ended September 2026. The shares fell nearly 6% to hit a 52-week low of ₹86 apiece on the NSE on Wednesday. The company’s revenue showed resilient performance, but margin contraction soured investor sentiment.

Vishal Mega Mart Q2FY27 results

For the quarter ended September 2026, Vishal Mega Mart’s revenue jumped 14% YoY to ₹3,398 crore as compared to ₹2,981 crore in the same period last year. The apparel segment’s contribution to total revenue fell from 42.2% in the previous year’s same quarter to 40.6% in Q2 FY27. On the flip side, the general merchandise and FMCG segments saw gains during the same period, rising to 29.6% and 29.7% of total revenue.

The same-store sales growth for the quarter stood at 5.4%, largely impacted to shift of the festive season from Q2 to Q3.

At the operating level, the operating EBITDA (Earnings before interest, taxes, depreciation and amortisation) rose 3.7% YoY to ₹262 crore as compared to ₹252.9 crore in the same period last year. However, the operating EBITDA margins collapsed by 80 bps to 7.7% for the quarter ended September 2026, vs 8.5% for the quarter ended September 2025.

Lastly, the net profit grew by 3.7% YoY to ₹157.9 crore as compared to ₹152.3 crore in the same period last year. Similarly, the profit margin also dropped 30bps to 5.1% as compared to 5.4% in the same quarter last year.

During the quarter, the company added 26 new stores, taking the total store count to 844 as of Q2FY27.

Management Commentary

Commenting on the results, Mr. Gunender Kapur, Founder, Chief Executive Officer and Managing Director, said, “We delivered another strong quarter, supported by the strength of our own-brand offerings, our customer-first approach and disciplined execution. Demand conditions remained steady despite renewed inflationary pressures across key raw material categories and an uneven monsoon”

While commenting on profitability, he said PAT for Q2FY27 grew by 3.7% to ₹157.9 crores and for H1FY27, grew by 16.3% to ₹416.6 crores. PAT growth was achieved despite lower fixed-cost absorption due to the shift in festive buying to Q3 and inflationary pressures during the quarter”.

Lastly, the net profit grew by 3.7% YoY to ₹157.9 crore as compared to ₹152.3 crore in the same period last year. Similarly, the profit margin also dropped 30bps to 5.1% as compared to 5.4% in the same quarter last year.