Vishal Mega Mart , a leading retail player in India, has announced robust financial results for the first quarter, while management predicts a flat gross margin for the full year.

Financial Highlights

• Revenue from operations surged by 21.00% year-over-year to ₹31,403.00 million
• Gross profit increased by 21.60% to ₹8,913.00 million, maintaining a gross profit margin of 28.40%
• Adjusted EBITDA (pre-INDAS 116 and pre-ESOP charges) grew by 33.70% to ₹3,244.00 million, with margin expanding to 10.30%
• Profit After Tax (PAT) saw a significant jump of 37.20% to ₹2,061.00 million

Operational Performance

Vishal Mega Mart demonstrated strong operational metrics during the quarter:

• Same-Store Sales Growth (SSSG) of 10.50% (Adjusted SSSG of 11.40%)
• Addition of 23 gross new stores, expanding the company's retail footprint
• Total store count reached 717 across 472 cities, covering a retail area of approximately 12.40 million square feet
• Loyal customer base grew to about 151 million

Management Commentary

Mr. Gunender Kapur, Managing Director and Chief Executive Officer, commented on the results: "We continued to deliver a strong performance in both revenue and profitability and demonstrated the strength of our purpose-led strategy of making aspirations affordable for consumers across geographies in India."

He added, "Growth was mainly driven by continued strength of our own brands portfolio, strong footfall and store additions. We expanded our presence in South India (Karnataka, Kerala, among others) and opened new stores in Gujarat and Maharashtra."

Gross Margin Outlook

During a conference call update, Vishal Mega Mart's management forecasted that the company's gross margin will remain flat for the full year. This projection comes despite the strong growth in Q1, suggesting potential challenges or strategic decisions that may impact margins in the coming quarters.

Category-wise Performance

The revenue contribution by category was:

The company's own brands continued to perform well, contributing 75.80% to the overall revenue for the quarter.

Digital Initiatives

Vishal Mega Mart's quick commerce initiative has shown promising growth:

• Extended to 670 stores across 445 cities
• Registered user base increased to 9.80 million

Looking Ahead

While the company has demonstrated strong growth in Q1, the management's forecast of a flat gross margin for the full year suggests a cautious outlook. Investors and analysts will likely keep a close eye on how Vishal Mega Mart navigates potential challenges while maintaining its growth trajectory in the coming quarters.

The company remains focused on its strategy of offering affordable and aspirational products, backed by cost efficiency and strong execution to create lasting stakeholder value.

Vishal Mega Mart has announced strong financial results for the first quarter, demonstrating significant growth across key metrics.

Revenue and Profitability Surge

The company reported a substantial 21% year-on-year increase in revenue from operations, reaching ₹3,140.30 crore, up from ₹2,596.20 crore in the same quarter last year. This growth was primarily driven by healthy double-digit same-store sales growth (SSSG) of 10.5%.

Profitability saw an even more impressive uptick, with EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) rising by 25.6% to ₹459.00 crore. The EBITDA margin expanded by 60 basis points to 14.6%, despite facing higher costs during the quarter.

Net profit surged by 37.3% to ₹206.00 crore, compared to ₹150.00 crore in the same quarter of the previous year. This substantial increase in bottom-line performance was supported by higher other income.

Operational Highlights

Vishal Mega Mart continues to expand its retail footprint across India. As of the end of the quarter, the company operates 717 stores spanning 472 cities, with a total retail area of approximately 12.4 million square feet. This extensive network allows the company to cater to a vast customer base of 151 million.

The company's Quick Commerce initiative has also shown significant traction, now covering 670 stores across 445 cities. This service has attracted 9.8 million registered users, indicating strong adoption of the company's omnichannel strategy.

Category-wise Performance

For the quarter, Vishal Mega Mart's revenue contribution by category was as follows:

Management Commentary

Mr. Gunender Kapur, Managing Director and Chief Executive Officer of Vishal Mega Mart, commented on the results: "We continued to deliver a strong performance in both revenue and profitability and demonstrated the strength of our purpose-led strategy of making aspirations affordable for consumers across geographies in India."

He further added, "Growth was mainly driven by continued strength of our own brands portfolio, strong footfall and store additions. During the quarter, we added 23 gross new stores, in-line with our store opening momentum. We expanded our presence in South India (Karnataka, Kerala, among others) and opened a new store in Gujarat and Maharashtra each and are encouraged by the early response."

Future Outlook

The inclusion of Vishal Mega Mart in the MSCI Standard Index is expected to potentially attract inflows of $258.00 million, which could further boost investor interest in the company.

With its robust financial performance, expanding store network, and growing omnichannel presence, Vishal Mega Mart appears well-positioned to capitalize on the evolving retail landscape in India.

The company's shares ended 3.5% higher at ₹144.85 on the day of the results announcement, reflecting positive investor sentiment towards the company's growth trajectory.