Vishal Mega Mart Limited (VMML) has reported strong financial results for the second quarter of fiscal year 2026, showcasing significant growth across key metrics. The company's performance was bolstered by early festive seasons and strategic expansion efforts.

Financial Highlights

• Revenue: VMML achieved a revenue of INR 2,981.00 crores in Q2 FY26, marking a substantial 22.4% growth compared to the same period last year.
• Same-Store Sales Growth: The company reported an adjusted same-store sales growth of 12.8%.
• EBITDA: EBITDA for the quarter stood at INR 395.00 crores, representing a 30.5% increase year-over-year. The EBITDA margin improved to 13.2% from 12.4% in the previous year.
• Net Profit: VMML's net profit reached INR 152.00 crores, showcasing a 46.5% growth. The net profit margin expanded to 5.1% from 4.3% in the corresponding quarter last year.

Operational Highlights

• Store Expansion: VMML added 28 new stores in Q2 FY26, bringing the total store count to 742 across 493 cities in India.
• Geographical Presence: The company expanded its footprint to 19 new cities during the quarter, focusing on deeper market penetration.
• Private Labels: Revenue from own brands in the first half of FY26 accounted for 74.7% of total revenue, showing a 185 basis points improvement year-over-year.
• Quick Commerce: VMML's quick commerce service expanded to 695 stores across 460 cities, with registered users increasing to 1.08 crore.

Strategic Initiatives

• Supply Chain Investment: The company is investing in a 600,000 square feet fully automated warehouse in Haryana to support future growth.
• New Format Pilot: VMML is piloting a smaller format store for towns with approximately 50,000 population, with nine stores currently operational under this format.
• Southern Expansion: The company is seeing positive traction in Kerala, with 16 operational stores and plans for further expansion.

Market Factors and Outlook

Vishal Mega Mart's management expressed optimism about future consumption trends, citing several favorable factors:

1. The recent GST rate rationalization is expected to stimulate consumption, with VMML committing to pass on these benefits to customers.
2. Income tax rate adjustments for the middle-income group, implemented on April 1st, may contribute to increased spending power.
3. Favorable rainfall patterns for the Kharif crop season could potentially lead to improved rural demand.

The company remains focused on maintaining its competitive edge in opening price points while introducing more aspirational products at higher price points to facilitate customer upgradation.

Conclusion

Vishal Mega Mart's Q2 FY26 results demonstrate the company's ability to capitalize on market opportunities and execute its growth strategies effectively. With its continued focus on store expansion, supply chain improvements, and adapting to evolving consumer needs, VMML appears well-positioned to maintain its growth trajectory in the coming quarters.

Vishal Mega Mart reported a robust financial performance for the second quarter, with significant growth in both revenue and profitability. The company also announced a substantial grant of stock options to its employees.

Financial Highlights

Vishal Mega Mart's net profit for Q2 jumped 46.4% to ₹152.30 crore, up from ₹104.00 crore in the same period last year. The company's revenue saw a healthy increase of 22.4%, reaching ₹2,981.00 crore compared to ₹2,436.00 crore in the corresponding quarter of the previous year.

Operational Performance

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) rose by 30.7% to ₹394.00 crore, with the operating margin improving to 13.2% from 12.4% in the previous year.

Store Expansion

Vishal Mega Mart continued its expansion strategy:

• Added 28 new stores during the quarter
• Opened 51 stores in the first half of the fiscal year
• Total store count reached 742 across 493 cities as of September 30

Management Commentary

Managing Director Gunender Kapur attributed the growth to the strength of the company's own-brand portfolio, healthy footfalls, and store expansion. He noted that the quarter's revenue was marginally impacted by early Durga Puja festivities in September compared to October in the previous year.

Stock Option Grants

In a separate announcement, Vishal Mega Mart's Nomination and Remuneration Committee approved the grant of 40,25,000 stock options to eligible employees under the Vishal Mega Mart Employees Stock Options Plan 2019. The grants are structured as follows:

Key details of the stock option grants include:

• Each option is convertible into one fully paid-up equity share of ₹10 face value
• The exercise period for vested options is 10 years from the date of grant
• The plan is in compliance with SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021

Market Response

Vishal Mega Mart's shares closed marginally higher at ₹138.55 on the National Stock Exchange following the announcements.

The company's strong financial performance, coupled with its continued expansion and employee stock option grants, signals confidence in its growth trajectory and commitment to aligning employee interests with those of the company.