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Vishal Mega Mart Ltd.
(VMM)
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Rating:67Neutral
Price Target:
₹102.00
▼(-5.56% Downside)
Action:Reiterated
Date:10/21/26
The score is driven primarily by materially improved financial performance in 2026 (earnings and free-cash-flow strength, plus a solid equity-backed balance sheet). This is partially offset by weak technicals (price below key moving averages with negative MACD) and a high P/E valuation. Earnings call commentary is constructive with supportive growth and margin-stability guidance, but recent margin compression and execution requirements temper the outlook.
Positive Factors
Revenue and earnings growth
The sharp 2026 increase in revenue, operating profit, and net income indicates stronger scale and improved earnings conversion. If sustained, this growth can support reinvestment in stores, formats, and capabilities while strengthening VMM’s position in value retail over the next several quarters.
Negative Factors
Operating margin compression
Margin compression shows that higher sales are not yet translating proportionately into profitability. Even if festival timing contributed, weaker operating leverage reduces earnings resilience and means VMM must execute effectively on cost control, store productivity, and gross-margin protection.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and earnings growth
The sharp 2026 increase in revenue, operating profit, and net income indicates stronger scale and improved earnings conversion. If sustained, this growth can support reinvestment in stores, formats, and capabilities while strengthening VMM’s position in value retail over the next several quarters.
Read all positive factors
Vishal Mega Mart Ltd. (VMM) vs. iShares MSCI India ETF (INDA)
Market Cap
₹406.17B
Dividend YieldN/A
Average Volume (3M)1.10M
Price to Earnings (P/E)45.1
Beta (1Y)1.08
Revenue Growth17.83%
EPS Growth19.87%
CountryIN
Employees21,913
SectorGeneral
Sector StrengthN/A
IndustryDepartment Stores
Share Statistics
EPS (TTM)1.92
Shares Outstanding4,684,808,600
10 Day Avg. Volume1,209,833
30 Day Avg. Volume1,096,852
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)6.61
Price to Sales (P/S)3.80
P/FCF Ratio37.82
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹125.00Price Target Upside15.74% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)2.19
Revenue Forecast (FY)₹153.14B
Vishal Mega Mart Ltd. Business Overview & Revenue Model
Company Description
Vishal Mega Mart Limited, founded in 2018 and headquartered in Gurugram, India, operates in the wholesale, trading, and retail sectors, offering a diverse range of products. The company's extensive apparel collection caters to all ages and genders...
How the Company Makes Money
VMM primarily makes money through retail sales to customers in its stores. Its key revenue stream is the sale of merchandise across (i) apparel (often a major draw in value retail), (ii) general merchandise such as home/lifestyle and utility produ...
Vishal Mega Mart Ltd. Earnings Call Summary
Earnings Call Date:Oct 21, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Feb 04, 2027
Earnings Call Sentiment Positive
The call was strongly constructive, with double-digit revenue and profit growth, resilient demand, rapid store and city expansion, encouraging early Belong & Co. feedback, and progress in quick commerce and supply-chain investment. The main negatives were Q2 and H1 margin compression, festival-related operating deleverage, elevated employee costs, temporary weather disruption, and the need for Q3 same-store sales growth above 10% to support the full-year objective. Highlights significantly outweighed the lowlights.Positive Updates
Q2 Revenue Growth and Adjusted Same-Store Sales
Q2 FY2027 revenue from operations grew 14% to INR 3,399 crores. Reported same-store sales growth was 5.4%, while management said it would have been around 9% after adjusting for the 3%-4% impact from festivals shifting from Q2 to Q3.
Negative Updates
Q2 Operating EBITDA Margin Decline
Q2 operating EBITDA was INR 262 crores, up 3.7% year over year, but the operating EBITDA margin declined to 7.7% from 8.5% last year. Management attributed the impact to lower fixed-cost absorption and operating deleverage caused by the shift in festive buying to Q3.
Read all updates
Q2-2027 Updates
Positive
Negative
Q2 Revenue Growth and Adjusted Same-Store Sales
Q2 FY2027 revenue from operations grew 14% to INR 3,399 crores. Reported same-store sales growth was 5.4%, while management said it would have been around 9% after adjusting for the 3%-4% impact from festivals shifting from Q2 to Q3.
Read all positive updates
Company Guidance
Management’s guidance was for double digit same-store sales growth for the full-year, with Q3 having to be higher than 10% for the first 9 months to look like double digit growth; gross margins are expected to have no material impact further going into quarter 3 and quarter 4, and to be roughly held YoY in 3Q and 4Q at a gross margin level even if crude remains at 100 for the rest of the fiscal, while gross margin is expected to be stable on a YoY basis in the second half. The company is confident of opening more than 100 stores this year, with an endeavor to open 100+ stores every year, beat the previous store opening count, and target 100+, 100++, and 100+++ in successive years; small format stores could represent an opportunity to open upwards of 3,000 such stores across the entire country. EBITDA margin could improve by 30 basis points every year, with growth expected to be double digit and cost inflation at the store level 6%-7%, while SSG of anywhere between 8%-10% is good enough to offset the higher employee expense. At the current level of inflation, management sees no reason for further price increases, with about 18%-20% of revenue from opening price points, about 24%-25% from the highest price points, and the balance, about 50%, in the middle.Vishal Mega Mart Ltd. Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
81
Very Positive
| Breakdown | TTM | Mar 2025 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 139.10B | 129.06B | 86.78B | 88.92B | 75.63B | 55.73B |
| Gross Profit | 35.38B | 36.68B | 9.78B | 24.14B | 20.10B | 15.39B |
| EBITDA | 20.69B | 19.70B | 15.89B | 12.82B | 10.51B | 8.64B |
| Net Income | 8.97B | 8.39B | 6.32B | 4.62B | 3.21B | 2.03B |
Balance Sheet | ||||||
| Total Assets | 126.42B | 114.49B | 99.93B | 85.06B | 82.89B | 82.18B |
| Cash, Cash Equivalents and Short-Term Investments | 23.28B | 17.38B | 8.08B | 931.61M | 2.01B | 6.31B |
| Total Debt | 21.23B | 19.88B | 17.29B | 14.83B | 14.62B | 17.90B |
| Total Liabilities | 47.46B | 40.36B | 35.92B | 28.84B | 31.33B | 33.93B |
| Stockholders Equity | 78.96B | 74.13B | 64.01B | 56.22B | 51.56B | 48.25B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 12.96B | 116.07M | 5.80B | 4.13B | 4.99B |
| Operating Cash Flow | 0.00 | 16.21B | 146.91M | 8.30B | 6.36B | 6.57B |
| Investing Cash Flow | 0.00 | -9.88B | -72.17M | -1.30B | 1.77B | 271.97M |
| Financing Cash Flow | 0.00 | -5.00B | -4.79B | -6.58B | -8.65B | -7.10B |
Vishal Mega Mart Ltd. Technical Analysis
Negative
108.00
Price Trends
100.58
Negative
107.28
Negative
113.17
Negative
Market Momentum
-4.10
Positive
24.72
Positive
22.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:VMM, the sentiment is Negative. The current price of 108 is above the 20-day moving average (MA) of 94.28, above the 50-day MA of 100.58, and below the 200-day MA of 113.17, indicating a bearish trend. The MACD of -4.10 indicates Positive momentum. The RSI at 24.72 is Positive, neither overbought nor oversold. The STOCH value of 22.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:VMM.
Vishal Mega Mart Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | ₹59.20B | 4.51 | ― | 0.13% | 19.09% | 104.43% | |
67 Neutral | ₹406.17B | 45.10 | ― | ― | 17.83% | 19.87% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | ₹39.38B | -343.17 | ― | 0.16% | 8.68% | -161.79% | |
42 Neutral | ₹48.90B | -6.26 | ― | ― | -27.21% | -53.22% | |
41 Neutral | ₹1.96B | -0.79 | ― | ― | -0.49% | 6.19% |
* General Sector Average
IN:VMM
Vishal Mega Mart Ltd.
86.70
-59.00
-40.49%
IN:ABFRL
Aditya Birla Fashion and Retail Limited
40.22
-42.76
-51.53%
IN:FEL
Future Enterprises Ltd
0.49
0.00
0.00%
IN:SHOPERSTOP
Shoppers Stop Limited
357.35
-162.25
-31.23%
IN:SPENCERS
Spencer's Retail Ltd.
21.71
-29.83
-57.88%
IN:VMART
V-Mart Retail Ltd
743.90
-93.23
-11.14%
Vishal Mega Mart Ltd. Corporate Events
Vishal Mega Mart Conducts Eighth AGM via Virtual Platform
Sep 18, 2026
Vishal Mega Mart Ltd. held its eighth Annual General Meeting on September 18, 2026, via video conferencing and other audio-visual means, in line with the Companies Act, SEBI Listing Regulations, and relevant MCA and SEBI circulars. The virtual AGM...
Vishal Mega Mart Secures Upgrade to IND AA+ Credit Rating
Sep 2, 2026
India’s value retail and wholesale specialist Vishal Mega Mart Limited operates a large network of discount-oriented hypermarkets, focusing on affordable merchandise for mass-market consumers. Headquartered in Gurugram, the company’s b...
Vishal Mega Mart boosts capital with ESOP share allotment
Aug 12, 2026
Vishal Mega Mart Limited has allotted 500,000 equity shares following the exercise of an equal number of stock options by an eligible employee of its subsidiary under the Vishal Mega Mart Employees Stock Options Plan 2019. The new shares, issued a...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.