Vishal Mega Mart Limited has informed stock exchanges about a regulatory penalty imposed on its subsidiary company following a food safety inspection. The disclosure was made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Court Order Details

Airplaza Retail Holdings Private Limited, a subsidiary of Vishal Mega Mart, received an order from the Court of the Adjudicating Officer-Cum-Additional Deputy Commissioner, Rewari on February 19, 2026. The court imposed a penalty following allegations of violations under the Food Safety and Standards Act, 2006.

Inspection and Violation

The regulatory action originated from an inspection conducted by the Food Safety Officer at the subsidiary's store in Rewari on September 20, 2024. During the inspection, the officer collected a sample of 'Maida' stored at the premises for testing and analysis.

Subsequently, the Food Safety Officer filed a complaint before the Adjudicating Officer alleging violation of provisions under the Food Safety and Standards Act, 2006. Following the complaint proceedings, the court imposed the monetary penalty on the subsidiary.

Financial and Operational Impact

The company has assessed the impact of the penalty order on its operations and financial position:

• Financial Impact: Limited to the penalty amount of Rs 1,00,000
• Operational Impact: No material impact on company operations or other activities
• Recovery Mechanism: Penalty amount will be recovered from the concerned manufacturer as it involves a third-party manufactured product
• Legal Response: The subsidiary is reviewing the order and evaluating next steps

Regulatory Compliance

The disclosure was made in compliance with SEBI regulations, specifically under Regulation 30 read with Sub-para 20 of Para A of Part A of Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company secretary Rahul Luthra signed the disclosure document on February 19, 2026.

The company emphasized that since the violation relates to a third-party manufactured product, it expects to recover the penalty amount from the respective manufacturer, thereby minimizing the financial impact on the subsidiary's operations.

Vishal Mega Mart has unveiled an ambitious expansion strategy, announcing plans to open 100 new stores by the end of FY26. This significant growth initiative was revealed during a recent management concall, highlighting the company's commitment to strengthening its retail footprint across the country.

Expansion Strategy Details

The retail chain's expansion plan represents a substantial increase in its store network, with the company targeting the addition of 100 new outlets over the specified timeframe. This strategic move underscores Vishal Mega Mart's confidence in the retail market and its ability to capture additional market share through geographic expansion.

Growth Implications

The planned store expansion indicates the company's focus on scaling its operations and increasing its market presence. By adding 100 new stores by FY26, Vishal Mega Mart aims to enhance its accessibility to customers across different regions and potentially drive revenue growth through increased retail touchpoints.

This expansion strategy reflects the management's optimistic outlook on the retail sector and the company's operational capabilities to support such significant growth in its store network.