Vishal Mega Mart stock crashes 4% after Q1 results despite 26% rise in profit, 19% revenue growth

Shares of Vishal Mega Mart Ltd fell 4 percent on Thursday after the retail chain reported its Q1 FY27 results, even as the company posted double-digit growth in profit and revenue. The stock was trading at Rs 107.5 in afternoon trade, down 4 percent for the day and among the top losers on the BSE Midcap index.

Vishal Mega Mart stock has declined 20.5 percent so far in 2026, compared with an 8.5 percent fall in the Nifty 50. The company commands a market capitalisation of around Rs 50,500 crore.

For the quarter ended June, Vishal Mega Mart reported a 26 percent year-on-year rise in consolidated net profit to Rs 259 crore from Rs 206 crore a year earlier. Revenue from operations increased 18.7 percent year-on-year to Rs 3,727 crore from Rs 3,140 crore in the corresponding quarter last year. Gross profit rose 19.9 percent to Rs 1,068.8 crore, while the gross margin improved marginally to 28.7 percent from 28.4 percent a year ago.

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EBITDA also rose 18.7 percent to Rs 545 crore from Rs 459.5 crore a year ago, while the EBITDA margin remained unchanged at 14.6 percent. Profit after tax margin improved to 6.9 percent from 6.6 percent in the year-ago quarter.

On the operational front, same-store sales growth stood at 10 percent during the quarter. The company added 27 gross stores and 24 net stores, taking its total store count to 819 across 559 cities, with a retail footprint of around 1.38 crore square feet.

Apparel contributed 47.4 percent of revenue during the quarter, followed by general merchandise at 27.3 percent and FMCG at 25.2 percent. Own brands accounted for 75.2 percent of revenue, while the company's quick commerce initiative had expanded to 767 stores across 520 cities by the end of June.

Commenting on the outlook, Managing Director and CEO Gunender Kapur said elevated inflation weighed on the demand environment during the June quarter, but added that the company expects the impact "to taper down in the subsequent quarters." He said consumption demand remained steady during the quarter, supported by resilient economic activity, while the retailer remained "confident and excited about the journey ahead," backed by its business fundamentals and growth strategy.