Vishal Mega Mart added 26 gross new stores in the second quarter of FY2026–27, taking its total network to 844 stores across 582 cities as of September 30, 2026. The retailer reported revenue from operations of ₹3,398.5 crore, up 14% year-on-year, while its own-brand products accounted for approximately 72.5% of product sales during the quarter, according to the company’s reported business update and coverage by Storyboard18.
The results highlight Vishal Mega Mart’s focus on affordable merchandise, private-label products and expanding its physical footprint. However, profit growth was more modest than revenue growth: consolidated profit after tax rose 3.7% to ₹157.9 crore, while the reported EBITDA margin declined to 12.1% from 13.2% a year earlier. The company attributed pressure on operating performance partly to the shift in festive demand from the September quarter to the December quarter.
Key Takeaways
- Store expansion: Vishal Mega Mart added 26 gross stores and 25 net stores in Q2 FY27.
- Total network: The retailer operated 844 stores across 582 cities at the end of September 2026.
- Revenue growth: Revenue from operations rose 14% year-on-year to ₹3,398.5 crore.
- Own-brand contribution: Private-label products accounted for approximately 72.5% of product sales in Q2 FY27; their contribution to revenue was 73.9% for H1 FY27.
- Profit growth: Consolidated profit after tax increased 3.7% to ₹157.9 crore.
- Margin pressure: Reported EBITDA margin declined to 12.1% from 13.2% a year earlier.
- New retail format: The company launched the first pilot store of Belong & Co., targeting young, affluent urban consumers.
Vishal Mega Mart Q2 FY27 Results: Financial Performance
Vishal Mega Mart delivered double-digit revenue growth in the September quarter, supported by its store network, merchandise offering and customer demand. However, the increase in revenue did not translate into an equivalent rise in profit.
Quarterly financial comparison
| Financial metric | Q2 FY26 | Q2 FY27 | Year-on-year change |
|---|---|---|---|
| Revenue from operations | ₹2,981.5 crore | ₹3,398.5 crore | +14.0% |
| Gross profit | ₹843.1 crore | ₹950.1 crore | +12.7% |
| Reported EBITDA | ₹394.6 crore | ₹412.0 crore | +4.4% |
| Reported EBITDA margin | 13.2% | 12.1% | Down 1.1 percentage points |
| Profit after tax | ₹152.3 crore | ₹157.9 crore | +3.7% |
| Operating EBITDA, pre-Ind AS 116 and pre-ESOP charges | ₹252.9 crore | ₹262.2 crore | +3.7% |
Source: Vishal Mega Mart’s Q2 FY27 financial results. Figures are rounded.
Revenue increased by ₹417 crore compared with the year-ago quarter. Gross profit also rose, reaching ₹950.1 crore.
However, reported EBITDA grew more slowly than revenue, while profit after tax increased by just 3.7%. This difference indicates that the retailer faced cost and operating-leverage pressures during the quarter.
The reported EBITDA margin fell by approximately 1.1 percentage points to 12.1%. Management linked the pressure partly to the timing of festive demand, which shifted purchases that would normally occur in Q2 into Q3 this year.
Own Brands Account for the Majority of Product Sales
Private-label merchandise is an important part of Vishal Mega Mart’s business model. Instead of relying entirely on third-party brands, the retailer sells products under brands it owns or controls.
According to the Q2 business update, own brands contributed approximately 72.5% of product sales during the quarter. For the first half of FY27, the company’s official results reported that own brands contributed 73.9% of revenue.
This distinction matters because the two percentages refer to different reporting periods and measures. The Q2 product-sales figure should not be confused with the H1 revenue contribution.
Why private labels matter
Own-brand products can give a retailer greater control over product design, sourcing, assortment and price positioning. They can also create differentiation because the same products may not be available at competing retailers.
For a value-focused chain, private labels can support an affordable merchandise proposition while potentially improving control over product economics.
However, the benefits depend on sourcing costs, product quality, inventory management and customer acceptance. A large own-brand share is not, by itself, proof of higher profitability.
Revenue contribution by category
For the first half of FY27, Vishal Mega Mart reported the following category mix:
| Product category | Share of H1 FY27 revenue |
|---|---|
| Apparel | 44.1% |
| General merchandise | 28.4% |
| FMCG | 27.3% |
Apparel remained the largest category, accounting for more than two-fifths of revenue. General merchandise and fast-moving consumer goods together represented a substantial share of the business, helping the retailer serve customers across everyday shopping needs.
Vishal Mega Mart Adds 26 Stores, Expanding to 844 Locations
Vishal Mega Mart continued its physical expansion during Q2 FY27, adding 26 gross stores and 25 net stores. The difference reflects store closures or other adjustments during the quarter.
At September 30, 2026, the company operated 844 stores across 582 cities, with a total retail area of approximately 1.41 crore square feet.
| Store network indicator | Reported figure |
|---|---|
| Total stores at September 30, 2026 | 844 |
| Gross stores added in Q2 FY27 | 26 |
| Net stores added in Q2 FY27 | 25 |
| Gross stores added in H1 FY27 | 53 |
| Net stores added in H1 FY27 | 49 |
| Cities served | 582 |
| Total retail area | Approximately 1.41 crore sq. ft. |
Expanding into additional cities can bring the retailer closer to new customers and increase the reach of its merchandise. Yet store growth also creates costs, including rent, employee expenses, inventory requirements and pre-opening expenditure.
The long-term benefit depends on whether new locations generate sufficient sales and operating profit as they mature.
Festive Calendar Shift Weighs on Same-Store Sales Growth
Vishal Mega Mart reported same-store sales growth of 5.4% for Q2 FY27. The company said the shift in the festive calendar reduced the quarter’s reported growth by approximately 3–4 percentage points.
After adjusting for the timing effect, management estimated that same-store sales growth would have been around 9%.
Festivals can be important shopping periods for value retailers because consumers often purchase apparel, household products and other merchandise for celebrations and family gatherings.
When festival-related purchases move between quarters, comparisons with the previous year can become less representative of underlying demand. The shift can also affect fixed-cost absorption: stores incur rent and other operating costs even when sales are temporarily lower than expected.
Management said it had seen a strong start to the festive period and remained confident about demand ahead of Diwali and the wedding season.
The upcoming quarters will help show whether the delayed purchases translate into stronger sales or whether consumers remain cautious amid inflationary pressures.
Belong & Co. Adds a New Apparel Format
During the quarter, Vishal Mega Mart launched the first pilot store of Belong & Co., a new apparel format aimed at young, affluent urban consumers.
The initiative represents an attempt to serve a customer segment with different fashion preferences from the retailer’s core value-focused audience.
A specialised format can help the company test new merchandise, store layouts and brand positioning without immediately changing the proposition of its main retail chain.
However, a pilot launch does not establish that the concept will be rolled out widely. Its future will depend on customer response, sales productivity, store economics and the company’s assessment of whether the format complements its existing operations.
What the Results Mean for Investors
Vishal Mega Mart’s results show that revenue is continuing to expand, supported by store additions and its established merchandise strategy. The high contribution from own brands also demonstrates the importance of private-label products to its business model.
The more cautious signal is the slower growth in operating profit compared with revenue. The fall in EBITDA margin suggests that investors should pay attention to operating expenses, gross margins, store productivity and the effect of festive-season timing.
Future performance will depend on whether the company can convert revenue growth into stronger earnings as new stores mature and festive demand normalises.
The Bigger Picture
Vishal Mega Mart is expanding its footprint while relying heavily on own-brand products to differentiate its assortment and maintain an affordable proposition. That combination can support growth in India’s value-retail market, where consumers seek a balance between price, variety and convenience.
The challenge is to sustain sales growth without allowing operating costs to erode margins. Store expansion, private-label merchandise and new formats such as Belong & Co. offer growth opportunities, but their success will depend on execution, customer demand and disciplined cost management.
FAQs
1. How many stores did Vishal Mega Mart add in Q2 FY27?
The company added 26 gross new stores and 25 net stores during Q2 FY27, taking its total network to 844 stores across 582 cities.
2. What percentage of Vishal Mega Mart’s sales came from own brands?
Own brands accounted for approximately 72.5% of product sales in Q2 FY27, according to the reported business update. For H1 FY27, the company reported that own brands contributed 73.9% of revenue.
3. How much did Vishal Mega Mart’s revenue grow in Q2 FY27?
Revenue from operations increased 14% year-on-year to ₹3,398.5 crore from ₹2,981.5 crore.
4. Why did Vishal Mega Mart’s EBITDA margin decline?
The company attributed margin pressure partly to the shift in festive purchases from Q2 to Q3, which affected fixed-cost absorption. Inflationary pressures on key raw material categories also weighed on operating performance.
Looking Ahead
Investors will watch Q3 FY27 results for evidence that delayed festive demand has translated into stronger same-store sales growth. Revenue growth, store productivity and the performance of own-brand merchandise will be important indicators of whether the company can maintain momentum while controlling costs.
Over the longer term, Vishal Mega Mart’s ability to expand into new markets and develop differentiated retail formats will need to be matched by disciplined execution. A growing store network and strong private-label contribution provide a foundation, but sustained earnings growth will depend on keeping margins healthy as the business scales.
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