Vishal Mega Mart Q2 FY27 results: net profit up 3.7% to ₹157.88 crore, revenue up 14.0%

How did Vishal Mega Mart perform in Q2 FY27?

Vishal Mega Mart reported consolidated revenue from operations of ₹3,399 crore in the quarter ended 30 September 2026, up 14.0% from ₹2,981 crore in Q2 FY26 and down 8.8% from ₹3,727 crore in Q1 FY27. EBITDA was ₹412.04 crore, up 4.4% year on year but down 24.3% sequentially, and the EBITDA margin was 12.1% against 13.2% in Q2 FY26 and 14.6% in Q1 FY27.

Profit before tax was ₹211.31 crore, up 3.4% from ₹204.37 crore a year earlier and down 38.9% from ₹345.96 crore in the previous quarter. Net profit was ₹157.88 crore against ₹152.31 crore in Q2 FY26 and ₹258.77 crore in Q1 FY27, while basic EPS was ₹0.34, up from ₹0.33 a year earlier and down from ₹0.55. The profit margin was 4.6%, 0.5 percentage points below the year-ago quarter and 2.3 percentage points below Q1 FY27.

On the standalone basis, revenue was ₹1,990.09 crore, up 14.0%, and profit after tax was ₹165.18 crore against ₹131.46 crore. The company said the shift of festivals from the second quarter to the third quarter reduced fixed-cost absorption and weighed on EBITDA and profit margins.

What changed in Vishal Mega Mart's costs and profit?

Total expenses rose 15.3% to ₹3,226 crore from ₹2,797 crore in Q2 FY26, outpacing the 14.0% rise in revenue. Employee cost was ₹222.99 crore, up 26.6% from ₹176.10 crore, other expenses were ₹315.05 crore, up 15.6% from ₹272.43 crore, depreciation was ₹191.93 crore, up 13.5% from ₹169.13 crore, and finance costs were ₹47.19 crore, up 14.5% from ₹41.23 crore.

Other income rose to ₹38.39 crore from ₹20.18 crore, an increase of ₹18.21 crore, while total income increased 14.5% to ₹3,436.92 crore from ₹3,001.66 crore. Tax expense was ₹53.43 crore against ₹52.06 crore a year earlier, and there was no exceptional item in either quarter.

Against Q1 FY27, employee cost rose ₹8.56 crore to ₹222.99 crore, other expenses rose ₹5.26 crore to ₹315.05 crore, and depreciation rose ₹6.45 crore to ₹191.93 crore. Other income was higher by ₹5.25 crore at ₹38.39 crore, while tax was lower by ₹33.76 crore at ₹53.43 crore. The company attributed the lower EBITDA and profit margins to operating deleverage from the shift in festive buying from the second quarter to the third.

How did the first half of FY27 go?

For the first half of FY27, consolidated revenue was ₹7,125.54 crore against ₹6,121.81 crore in H1 FY26, an increase of ₹1,003.73 crore or 16.4%. Total income rose 16.9% to ₹7,197.07 crore from ₹6,158.98 crore, while profit before tax increased 16.0% to ₹557.27 crore from ₹480.33 crore.

Net profit for the first half was ₹416.65 crore, up 16.3% from ₹358.38 crore, and EPS was ₹0.89 against ₹0.77. The company reported same-store sales growth of 7.7% for the half year, which it said was about 9.5% after adjusting for the festive-calendar shift.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹12,641.84 crore against ₹11,449.43 crore at 31 March 2026, and total equity was ₹7,896.15 crore against ₹7,413.26 crore. Inventories stood at ₹2,315.81 crore against ₹2,017.04 crore, trade receivables were ₹19.35 crore against ₹27.82 crore, and trade payables were ₹2,185.94 crore against ₹1,618.80 crore.

Borrowings were nil at both balance sheet dates. Cash and cash equivalents were ₹278.84 crore at 30 September 2026, lower than ₹530.03 crore at 31 March 2026. For H1 FY27, cash flow from operating activities was ₹1,010.85 crore against ₹795.79 crore a year earlier, investing cash flow was negative ₹964.96 crore against negative ₹685.61 crore, and financing cash flow was negative ₹297.08 crore against negative ₹192.22 crore.

How has Vishal Mega Mart done over the last 8 quarters?

Revenue rose year on year in each of the last four quarters. Over the last eight quarters, revenue was highest at ₹3,727.01 crore in Q1 FY27 and lowest at ₹2,547.89 crore in Q4 FY25, before easing to ₹3,398.53 crore in Q2 FY27.

Net profit peaked at ₹312.92 crore in Q3 FY26 and was lowest at ₹115.11 crore in Q4 FY25. Profit was ₹157.88 crore in Q2 FY27, the lowest since that trough, while the EBITDA margin fell to 12.1% from 13.2% a year earlier and 14.6% in the previous quarter.

The shape of recent quarters has been uneven: revenue and profit both rose year on year in each of the last four quarters, but the sequential fall from Q1 FY27 reflects the shift of festive buying into Q3.

What else did the company announce?

The board of directors met on 21 October 2026 and approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026, based on the recommendation of the audit committee, and noted the limited review reports issued by M/s Walker Chandiok & Co LLP. The meeting ran from 11.50 AM to 12.55 PM IST.

The same-day filing included an earnings presentation on the unaudited results, which was disseminated on the company's website. The presentation recorded gross store additions of 26 in Q2 FY27 and 53 in H1 FY27, taking the store count to 844, and reported net new store additions of 25 in the quarter and 49 in the half year. No dividend or fund-raise decision was recorded in the filings.

What did Vishal Mega Mart's management say?

Management said Q2 same-store sales growth was 5.4% on a reported basis and about 9% after adjusting for the festival shift, which moved 3-4 percentage points of same-store sales from the second quarter to the third. Management reiterated a target of double-digit same-store sales growth for FY27, which requires Q3 growth above 10% for the first nine months to be double digit.

Management maintained the plan of more than 100 store openings in FY27 and said annual additions are expected to increase. Gunender Kapur, Founder, Managing Director and CEO, said: "Our endeavor would be to open 100-plus stores every year. And every year we would target to beat the previous store opening count."

On pricing, management said no further price increases are planned at current inflation and that gross margin is expected to remain broadly stable year on year in H2. Kapur said: "I want to maintain a stable pricing environment, and not expose our customers to volatility in terms of our pricing."

Management identified risks around renewed input inflation, uneven rainfall, elevated employee costs from minimum-wage increases, ESOPs and new stores, the unproven economics of the Belong & Co. pilot, and a large cash balance awaiting a board-reviewed capital deployment framework. On growth composition, Kapur said: "In this quarter, quarter 2, almost all our growth has come through market share gain and not through our existing customers buying more."

How did Vishal Mega Mart shares react?

The stock was down 1.0% within five minutes of the filing appearing in the market, and the move was 4.7% from the previous close by the close of the first session that could trade on the news. By the next day's close the stock was down 6.8% from its pre-results close, and it was down 6.9% by the close five sessions later.

The Diversified Retail sector's median move was 1.6% lower on the reaction day, 3.9% lower by the next day's close and 2.8% lower by five sessions. The stock therefore underperformed the sector median by 3.1 percentage points on the reaction day, 2.9 percentage points by the next day's close and 4.1 percentage points by five sessions.

How did other Diversified Retail companies do?

Five Diversified Retail companies were compared with Vishal Mega Mart this quarter, with a median revenue growth of 17.8%. Two peers grew slower than Vishal Mega Mart and three grew faster than the company, whose own revenue growth was 14.0%.

Of the four peers for which profit was compared, two reported higher profit than Vishal Mega Mart. The comparison covers the peers that have filed for the quarter as of 4 November 2026.