Vishal Mega Mart Q1 FY27 Results (NSE: VMM)
Signal: Growth decelerated
The read
Vishal Mega Mart delivered a solid Q1FY27 with 18.7% revenue growth (10% SSSG) and PAT growth accelerating to 25.6% YoY, driven by steady store expansion (24 net adds) and stable margins despite inflation headwinds. EBITDA margin held flat at 14.6%, while gross margin improved 30bps to 28.7%. The company’s own-brand penetration remained high at 75.2%. Management expects inflation impact to taper, supporting confidence in continued execution.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹3,727 Cr | 18.7% | 19.7% |
| Net profit | ₹258.8 Cr | 25.6% | |
| EBIT margin | 14.6% |
P&L walk
Revenue grew 18.7% YoY (Q1FY26: ₹3,140 Cr) to ₹3,727 Cr, driven by 10% SSSG and 24 net new stores; gross margin expanded 30bps to 28.7%; reported EBITDA margin stable at 14.6% despite inflationary headwinds; PAT grew 25.6% YoY to ₹258.8 Cr, margin improving to 6.9% from 6.6%.
Key positives
- Revenue growth of 18.7% YoY with strong SSSG of 10.0% demonstrates underlying demand resilience.
- PAT growth of 25.6% YoY outpaced revenue growth, with PAT margin expanding 30bps to 6.9%.
- Gross profit margin improved 30bps to 28.7%, indicating healthy product mix or cost control.
- Store expansion continues with 27 gross and 24 net adds in the quarter, taking total stores to 819 across 559 cities.
- Own brand contribution at 75.2% supports pricing power and margin stability.
Key concerns
- Reported EBITDA margin flat at 14.6% YoY, indicating no operating leverage despite revenue growth.
- Management noted elevated inflation weighed on demand in Q1, with recovery expected only in subsequent quarters.
Research and educational content only. Not investment advice.