Vishal Mega Mart Ltd FALL OVER 6 PERCENT

Shares of Vishal Mega Mart Ltd fell over 6 percent after the retailer reported weaker-than-expected earnings for the second quarter of FY2026-27, as margin pressure and subdued same-store sales growth weighed on performance. The company reported a 3.7 percent year-on-year increase in consolidated profit after tax to Rs 158 crore for the July–September quarter, falling short of market estimates of Rs 180 crore. In the corresponding quarter of the previous financial year, the company had posted a consolidated PAT of Rs 152.3 crore, according to its regulatory filing. The quarter also saw SSSG decline to its lowest level since Vishal Mega Mart began reporting quarterly earnings following its stock market listing in May 2025. Revenue from operations rose 14 percent year-on-year to Rs 3,399 crore in Q2FY27, compared with Rs 2,982 crore in the year-ago period. However, revenue fell short of analysts' expectations of Rs 3,487 crore. Operating performance remained under pressure as earnings before interest, taxes, depreciation and amortization increased by just 4.4 percent year-on-year to Rs 412 crore, against Rs 395 crore in the corresponding quarter last year. The EBITDA margin contracted by 111 basis points to 12.1 percent from 13.2 percent a year earlier, reflecting continued pressure on profitability. Despite renewed inflationary pressures across key raw material categories and uneven monsoon conditions, Vishal Mega Mart said demand remained steady during the quarter. The company attributed the resilience of its business to its differentiated merchandise offerings, competitive pricing and strong understanding of customer needs. The weaker-than-expected earnings, revenue miss and record-low SSSG have raised concerns over the retailer's near-term growth and margin outlook.