Vishal Mega Mart’s shares surged by upto 8% after the company posted a strong financial performance for the first quarter of the current fiscal year. The retail chain reported a 37% year-on-year jump in net profit, driven by robust sales growth, improved operational efficiency, and expanding store footprint.

For the quarter ended June 30, Profit After Tax (PAT) rose 37.2% to Rs 206.10 crore from Rs 150.10 crore in the same quarter last year, with the PAT margin improving to 6.6% from 5.8%. Revenue from operations grew 21% YoY to Rs 3,140.30 crore, compared to Rs 2,596.30 crore in Q1FY25. Gross profit stood at Rs 891.30 crore, up 21.6% from Rs 733.10 crore a year ago, translating to a gross profit margin of 28.4%. 

Management attributed the performance to a combination of factors, including targeted promotional campaigns, strategic inventory management, and a sharper focus on high-margin categories such as apparel and home essentials. The company also benefited from operational cost optimization, which helped improve EBITDA margins by 80 basis points to 9.2%.

Vishal Mega Mart continued its aggressive expansion strategy during the quarter, adding 24 new stores, bringing the total count to 670 outlets across India. The company aims to cross the 750-store mark by the end of the current fiscal year, focusing on Tier-II and Tier-III cities to tap into the growing middle-class population.

Digital initiatives also played a role in driving growth. Vishal Mega Mart has been scaling its omni-channel capabilities, integrating its online and offline platforms to provide a seamless shopping experience. The company has expanded its click-and-collect services and partnered with delivery platforms to cater to customers in smaller towns.

Analysts remain optimistic about the company’s outlook, citing its strong presence in value retail, continued expansion in underserved markets, and ability to manage costs effectively. However, they also cautioned that inflationary pressures and potential supply chain disruptions could pose short-term challenges.

The retail sector in India has seen a revival in demand post-pandemic, aided by festive spending, increasing urbanization, and rising disposable incomes. Vishal Mega Mart’s focus on affordable fashion, household goods, and everyday essentials positions it well to capitalize on these trends. The company has reiterated its guidance for double-digit revenue growth and margin expansion for the full fiscal year, supported by store additions, improved product mix, and operational efficiencies.

With strong quarterly results, a clear expansion roadmap, and growing brand loyalty, Vishal Mega Mart is expected to maintain its momentum in the competitive retail landscape.