Vishal Mega Mart shares drop 5% on Q3 SSSG print; time to buy on the dip?

Shares of diversified retail player Vishal Mega Mart came under pressure on the bourses on Wednesday, January 28, after the company announced its financial results for the third quarter of financial year 2025–26 (Q3FY26). 

 

Vishal Mega Mart share price declined 4.93 per cent to an intra-day low of ₹118.85 per share on the NSE after the company said that its adjusted same-store sales growth (SSSG) stood at 9.6 per cent, after normalising a 2.1 per cent adverse impact in Q3 due to the preponement of Durga Puja festivities to Q2 this year.

 

Though the counter pared losses partially, it continued to trade lower on the bourses. At 10:17 AM, Vishal Mega Mart shares were trading at ₹119.20 per share, down 4.66 per cent from their previous close of ₹125.02 per share. The benchmark NSE Nifty50, on the other hand, was trading higher by 75 points, or 0.30 per cent, at the 25,250 level.  CATCH STOCK MARKET UPDATES TODAY LIVE

Vishal Mega Mart Q3FY26 results highlights

During the quarter under review, the company reported a 19.1 per cent rise in profit after tax (PAT) to ₹312.9 crore from ₹262.7 crore in the corresponding quarter of the previous fiscal year. Revenue from operations increased 17 per cent year-on-year to ₹3,670.3 crore in Q3FY26 from ₹3,135.9 crore in Q3FY25.

 

Earnings before interest, taxes, depreciation and amortisation (Ebitda) rose 19.8 per cent to ₹605.1 crore in Q3FY26 from ₹505 crore in Q3FY25.

 

As of December 31, 2025, the company operated 771 stores across 517 cities, with a total retail area of 13.15 million sq. ft. It had a consumer base of 163 million. The company’s quick commerce initiative was available across 723 stores in 485 cities, with a registered user base of 11.9 million as of December 31, 2025, according to the exchange filing submitted by the company. 

Management commentary

Commenting on the results, Gunender Kapur, managing director and chief executive officer, said, “Continuing on our growth trajectory, we delivered a strong performance during the quarter. We saw healthy festive demand across all product categories. Our unique range of merchandise, especially our strong portfolio of own brands and leadership in opening price points, continued to translate into healthy footfalls across stores.”

 

The company, Kapur said, maintained momentum on its accelerated store rollout plan, adding 29 gross new stores during the quarter and 80 in 9MFY26, while continuing to focus on strategic expansion into new states such as Kerala, Gujarat and Maharashtra.

 

“We believe that India is poised for the next wave of consumption growth, aided by initiatives such as GST rate rationalisation and reforms in direct taxation, and are optimistic about the positive impact these changes could have on our business in the years to come,” Kapur said.  ALSO READ | Bikaji Foods shares jump 6% on posting Q3 results; PAT up 116% YoY

Should you buy, sell or hold Vishal Mega Mart shares?

Analysts at ICICI Securities have maintained their Buy rating on Vishal Mega Mart, with an unchanged DCF-based target price of ₹175 per share. Following the results, the brokerage said that while VMM’s sales growth of 17 per cent year-on-year was healthy, its 6.1 per cent SSSG print could be seen as underwhelming by consensus, though adjusted (for seasonality) SSSG stood at 9.6 per cent.

 

The brokerage added that management believes initiatives such as GST reforms could support consumer demand going ahead.  ICICI Securities, however, tweaked its estimates for FY26–28. “We marginally tweak our estimates for FY26–28 and model revenue, Ebitda and PAT CAGRs of 19 per cent, 20 per cent and 26 per cent, respectively, over FY25–28E,” the brokerage said in its report.

 

The analysts have also identified key risks, which include slower-than-expected store addition and SSSG, exit of key managerial personnel, and customers shifting towards convenience (quick commerce).

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(Disclaimer: The views and investment tips expressed by the analysts in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.)