Vishal Mega Mart Q1 FY27 Revenue Up 18.7% YoY

Quarter Ended June 30, 2026 (Q1 FY27):

Revenue from operations: ₹3,727 crores, representing 18.7% year-over-year growth
Same-store sales growth: 10%
Operating EBITDA: ₹387 crores, with 19.3% YoY growth
Operating EBITDA margin: 10.4% (improved from 10.3% in Q1 FY26)
Profit after tax: ₹259 crores, with 25.6% YoY growth
PAT margin: 6.9% (improved from 6.6% in Q1 FY26)
Gross margin: 28.7% (improved from 28.4% in previous period)
Closing inventory: ₹1,900 crores as of quarter end

Store Expansion:

Small Store Format Strategy:

Added 3 small format stores in Q1 FY27 (total 16 small format stores operational)
Small format stores are approximately half the size of regular format stores
Currently focused on Uttar Pradesh and Haryana where larger format opportunities are largely exhausted
Small format stores demonstrate same revenue per square foot and return on capital employed as larger formats
Company sees opportunity for approximately 3,000 small format stores nationwide
Expansion pace to accelerate going forward

RFID Implementation:

Currently rolling out RFID technology across all Delhi NCR stores
Pilot completed with 2 stores in Delhi NCR showed significant benefits
Full network rollout expected to take slightly over 1 year
Benefits established: better inventory management (weekly stock counts possible), reduced shrink, improved merchandise analytics
RFID tags cannot be removed unless merchandise is checked out/paid for
Separate supply chain required for RFID-tagged stores

Loyalty program covers 17.5 crore customers
Loyalty customers contribute approximately 95% of total revenue
Customer acquisition: 8% new customers served in Q1 FY27
Existing customers bought approximately 3% more compared to same quarter last year
Quick commerce initiative: 767 stores enabled, 1.4 crore users
Quick commerce contributes 2-9% of store revenue (5% in majority of stores)
Average bill value for quick commerce: ₹800
20% of quick commerce customers are net new to Vishal franchise
Private brand share in quick commerce: higher than 75% (compared to 75% in offline)

75% of total revenue comes from private brands
Apparel: 100% private brands
General merchandise: 75% private brands
FMCG: 60% by volume from private brands
Kitchen appliances: 50% market share with Tandem brand, 50% with third-party brands
Company maintains price discount to market leaders, ensuring private brands remain attractive

Gross margin improvement attributed to lower promotional expenditure
Price increases implemented only in higher price points, not in opening price points
No price increases in highly sensitive categories (children's clothing, staple foods)
Fashion merchandise (highest price points) grew at 13.9% same-store sales growth
Company committed to maintaining or increasing price discount to market leaders
Assumption: no further price increases needed if current cost structure continues

Company proactively implementing 49.99% foreign holding cap
Current foreign holding approximately 20%
Decision driven by multi-brand retailing business in wholly owned subsidiary Airplaza
Company remains Indian owned and controlled

Employee cost per square foot increased 13% YoY
Attributable to minimum wage increases across multiple states (Haryana, UP, Telangana, Karnataka)
Company will continue optimization efforts but acknowledges structural change

Management:

Analysts Participating: