Synopsis: Vishal Mega Mart Limited reported 19% revenue growth and 26% profit growth in Q1 FY27. Jefferies maintained a Buy rating with a target price of Rs. 160, implying 47% upside, supported by strong demand, margin expansion, and store expansion.
This Mid-Cap Stock, engaged in operating retail supermarkets, offering apparel, grocery, household goods, personal care products, and general merchandise through stores across India, is in focus after the company reported June quarterly results and Jefferies gave a Buy target of Rs. 160, which has an upside potential of 46.59 percent.
With a market capitalization of Rs. 51,035.54 crore, the shares of Vishal Mega Mart Limited were currently trading at Rs. 109.15 per equity share, down nearly 0.64 percent from its previous day’s close price of Rs. 109.85.Â
What is the News?
Jefferies, a prominent brokerage firm, has recommended a “Buy” call on Vishal Mega Mart Limited with a target price of Rs. 160 per share, indicating an upside potential of 46.59 percent from its current price of Rs. 109.15.
Jefferies has maintained its Buy rating on Vishal Mega because the company continues to deliver strong business performance. Sales at existing stores are growing at a healthy double-digit pace, showing that customer demand remains strong.
The company also reported a slightly better-than-expected EBITDA, supported by improved gross margins. At the same time, it is steadily opening new stores, including smaller-format outlets, which should help expand its reach across more locations.
Another positive factor is the company’s focus on increasing sales of its own private-label brands, which generally offer better profit margins. Management has also taken selective price hikes without changing entry-level prices, helping protect affordability while improving profitability. These steps are expected to support further margin expansion over the coming quarters.
Jefferies also noted that the proposal to keep foreign ownership below 50 percent could lead to a private equity stake sale, which has been a concern for investors. If this uncertainty reduces over time, the market may focus more on the company’s strong growth, improving margins, and store expansion. Given these positives and the valuation discount compared with DMart, Jefferies believes there is room for the stock to move higher.
Q1 FY27 Result Walkthrough
Coming into the quarterly results of Vishal Mega Mart Limited, the company’s consolidated revenue from operations increased by 18.69 percent YOY, from Rs. 3,140 crore in Q1 FY26 to Rs. 3,727 crore in Q1 FY27, and grew by 19.69 percent QoQ from Rs. 3,114 crore in Q4 FY26.
In Q1 FY27, Vishal Mega Mart Limited’s consolidated net profit increased by 25.73 percent YOY, reaching Rs. 259 crore compared to Rs. 206 crore during the same period last year. As compared to Q4 FY26, the net profit has increased by 54.17 percent, from Rs. 168 crore. The basic earnings per share increased by 25 percent and stood at Rs. 0.55 as against Rs. 0.44 recorded in the same quarter in the previous year, FY2026.
Stores Network
As of June 2026, Vishal Mega Mart operated 819 stores across 559 cities in 30 states and Union Territories, covering a retail area of 1.38 crore sq. ft. During Q1 FY27, the company added 27 new gross stores, further strengthening its pan-India presence and expanding its reach to more customers.
The company has a strong presence across different regions, with 311 stores in North India, 222 in South India, 204 in East India, and 82 in West India. By store format, it operates 423 Tier III stores, 204 Tier I stores, and 192 Tier II stores, highlighting its strong focus on serving customers in smaller cities and towns while steadily expanding into larger urban markets.
Operational Highlights
In Q1 FY27, Vishal Mega Mart generated 75.2 percent of its product sales from own brands, while 24.8 percent came from third-party brands. The higher contribution from private labels reflects the company’s focus on improving margins, offering value-for-money products, and strengthening customer loyalty through its exclusive product portfolio.
Region-wise, North India contributed the highest share of revenue at 39.5 percent, followed by the East at 28.5 percent, South at 23.4 percent, and West at 8.6 percent. The balanced regional mix highlights Vishal Mega Mart’s strong presence across India, with North and East remaining its key growth markets.
Company Overview
Vishal Mega Mart Limited is an Indian value retail company that operates a nationwide chain of supermarkets and hypermarkets focused on affordable shopping. The company primarily serves middle- and lower-middle-income households through a combination of apparel, general merchandise, and fast-moving consumer goods (FMCG), and has expanded into one of India’s largest value retail chains.
Annual Performance of FY26
Vishal Mega Mart Limited’s revenue has increased from Rs. 10,716 crore in FY25 to Rs. 12,906 crore in FY26, which has grown by 20.44 percent. The net profit has also grown by 32.75 percent from Rs. 632 crore in FY25 to Rs. 839 crore in FY26.
Vishal Mega Mart Limited’s revenue and net profit have grown at a CAGR of 24 percent and 48 percent, respectively, over the last five years. In terms of return ratios, the company’s ROCE and ROE stand at 14.8 percent and 12.2 percent, respectively. Vishal Mega Mart Limited’s debt-to-equity ratio is 0.27x.
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