Vishal Mega Mart shares pare gains after zooming 8% post Q1; buy or sell?

Vishal Mega Mart shares were buzzing in trade on August 14 after the company reported its Q1 resultss. Read on to find out brokerages' stock analysis and company outlook

Vishal Mega Mart share price today: Shares of retail-chain store operator Vishal Mega Mart, rallied on the bourses on Thursday, August 14, 2025, on the back of a healthy set of quarterly results for the April-June quarter of the current financial year (Q1FY26).

 

Vishal Mega Mart shares climbed 7.6 per cent to hit a high of ₹155.45 per share on the BSE in the intraday trade today, while it advanced 7.9 per cent on the NSE to hit a high of ₹155.60.

 

The stock, however, pared gains to trade 0.75 per cent higher on the NSE at 10:00 AM as against the benchmark NSE Nifty index’s 0.06 per cent rise.

 

Vishal Mega Mart Q1 results

On Wednesday, Vishal Mega Mart reported a 37.3 per cent year-on-year (Y-o-Y) increase in its consolidated net profit to ₹206 crore. Operationally, it clocked a 21-per cent Y-o-Y surge in revenue at ₹3,140.3 crore.

 

Among categories, apparel contributed 47.4 per cent towards the revenue, general merchandise contributed 27.3 per cent, and FMCG 25.1 per cent.

 

Further, Vishal Mega saw its earnings before interest, tax, depreciation and amortisation (Ebitda) improving 25.6 per cent Y-o-Y to ₹459 crore with the Ebitda margin expanding 60 basis points to 14.6 per cent in Q1FY26.

 

The management said the company was able to maintain margins expansion despite higher other expenses, employee benefit expenses, and finance costs. 

Check List of Q1 results today

Vishal Mega Mart share price outlook

According to analysts at ICICI Securities, Vishal Mega Mart sustained a strong earnings momentum in Q1FY26 with revenue growth of 21 per cent Y-o-Y, same store sales growth (SSSG) of 10.5 per cent Y-o-Y, and net addition of 21 stores.

 

The quarter also saw continued expansion in tier 2/3 markets and a steady traction in the ‘own brands’ portfolio, which contributed roughly 74 per cent of the total revenue.

 

The quick commerce footprint and loyalty programme continued to expand in Q1, with the company having 670 stores under its coverage across 445 cities with 95 per cent of revenue coming from repeat customers.

 

The management, the brokerage said, focused on disciplined expansion, value-driven pricing, and cost efficiency in the June quarter to sustain profitable growth.

 

"We largely maintain our earnings estimates for FY26 and FY27, modelling revenue, Ebitda, and net profit CAGR of 18 per cent, 19 per cent, and 27 per cent, respectively, over FY25-27. We maintain our BUY rating on the stock with a revised share price target of ₹165 (from ₹160)," ICICI Securities said.

 

Slower-than-expected store addition and SSSG, exit of key managerial personnel, and customer shifting towards convenience (quick commerce) could, however, be key risks for the retail store operator.

 

That apart, reports suggest global brokerage Jefferies has set a share price target of ₹175 per share for Vishal Mega Mart, suggesting an upside of 21.2 per cent from Wednesday’s closing price on the BSE.

 

Jefferies' share price target is among the highest target prices for the stock on Dalal Street and is over 100 per cent higher from the shares' IPO price of ₹78 per share. The brokerage maintained its ‘Buy’ rating on the stock amid a positive growth outlook.

 

Overall, nine of the 12 brokerages covering the stock have assigned a 'Buy' rating to Vishal Mega shares, two have 'Hold' rating, and one has a 'Sell' rating.