VMM

Posts Strong Q1 FY26, Analyst Targets Raised

rallied on Thursday following a robust earnings report for the April-June quarter of FY26. The company reported a significant 37.2% year-on-year (YoY) rise in net profit, reaching ₹206.1 crore, up from ₹150.1 crore in the same period last year. Revenue from operations also saw healthy growth, climbing to ₹4,819 crore from ₹4,347.5 crore a year earlier. Expansion Strategy: Vishal Mega Mart continued its aggressive expansion, adding 12 new stores in South India (Karnataka, Kerala, etc.) and new outlets in Gujarat and Maharashtra. Management noted an encouraging early response from these new locations. While South India was the fastest-growing region with 23% YoY growth, its per-store productivity remains about 15% below the company average. Analyst Views: Jefferies maintained its 'buy' rating and raised its target price to ₹175. The brokerage highlighted this as the fifth consecutive quarter of double-digit same-store sales growth, alongside sustained store expansion and the steady scale-up of the company's quick commerce platform. Morgan Stanley issued an 'overweight' call with a target price of ₹161. The brokerage noted that the company's strong performance, including a 10.5% same-store sales growth, slightly exceeded its estimates. Comparative Performance: For context, rival reported a 16% revenue growth and a 7.1% like-for-like sales growth in the same quarter, underscoring Vishal Mega Mart's strong relative performance.