Kedaara Capital, a prominent private equity firm and promoter of Vishal Mega Mart , is considering the sale of an additional 13% stake in the retail chain. This potential move could reshape the ownership structure of one of India's leading retail players.

Key Points of the Potential Stake Sale

Implications of the Potential Stake Sale

Ownership Structure

If the sale proceeds, it would result in a decrease in Kedaara Capital's ownership in Vishal Mega Mart.

Financial Implications

The stake sale is expected to provide liquidity for the private equity firm, potentially allowing it to reallocate capital or return funds to investors.

Market Dynamics

The offering of a discounted price may attract potential investors looking for opportunities in the retail sector.

Strategic Considerations

This move could signal Kedaara Capital's evolving strategy for its investment in Vishal Mega Mart, possibly indicating a gradual exit plan or a rebalancing of its portfolio.

It's important to note that at this stage, Kedaara Capital is only considering the stake sale. The final decision and the actual execution of the deal, if it proceeds, will depend on various factors including market conditions and potential buyer interest.

Investors and market watchers will likely keep a close eye on further developments regarding this potential stake sale, as it could have implications for both Vishal Mega Mart's future and the broader retail sector landscape in India.

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.