This article first appeared on GuruFocus .
Release Date: May 15, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Vishal Mega Mart Ltd ( NSE:VMM ) reported a 22.2% increase in revenue for Q4, reaching Rs. 3,114 crores.
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The company achieved a 32.3% growth in operating EBITDA for Q4, with an adjusted EBITDA margin improvement to 8.8%.
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Profit after tax for Q4 rose by 45.9%, with a PAT margin increase to 5.4%.
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For the full year 2026, revenue grew by 20.4% to Rs. 12,906 crores, with a same-store sales growth of 11%.
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Vishal Mega Mart Ltd ( NSE:VMM ) expanded its store network significantly, adding 105 stores in 2026, reaching a total of 795 stores across 535 cities.
Negative Points
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The company faces challenges due to inflation, particularly in petroleum derivatives affecting input costs.
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There is uncertainty regarding the impact of geopolitical developments and inflation on future performance.
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The company has not provided a clear dividend policy despite generating significant free cash flow.
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Potential impact on demand due to rising petrol and diesel prices, which could affect consumer spending.
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The company is experiencing input price increases, particularly in fabric costs, which could pressure margins.
Q & A Highlights
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Q: What was the reason for the strong same-store sales growth in the quarter? Was it influenced by geopolitical concerns or other factors? A: (Gunender Kapoor, MD and CEO) The strong same-store sales growth was due to a general uptick in consumption, partly driven by the positive impact of income tax rationalization and GST rate reduction. Additionally, we invested more in growth during the quarter, which contributed to the encouraging results.
Q: With the current inflation levels, what is your outlook for FY27, particularly regarding volume and same-store sales growth? A: (Gunender Kapoor, MD and CEO) While it's challenging to predict the macroeconomic environment, especially with rising petrol and diesel prices, our business has historically performed well in inflationary periods. Our private brands, which account for 75% of our revenue, help cushion customers from inflation. We aim to maintain this cushion and remain optimistic about the year ahead.
Q: How do you plan to manage pricing for your private label products in light of inflation, especially when national brands are taking a hit on their gross margins? A: (Gunender Kapoor, MD and CEO) We will maintain at least the same level of discount over market leader brands. We have levers such as promotions and multi-buy offers to ensure our customers continue to receive value. Our goal is to keep our discounts consistent, even in inflationary times.
Q: What is your strategy for store expansion, especially in new geographies, given the current macroeconomic challenges? A: (Gunender Kapoor, MD and CEO) We will continue our expansion plans without slowing down. We are excited about India's long-term consumption story and believe that current challenges are temporary. Our new stores in regions like Kerala, Gujarat, and Maharashtra are performing well, and we remain committed to our growth strategy.
Q: How are you addressing the challenges of input price increases from suppliers, particularly in the apparel category? A: (Gunender Kapoor, MD and CEO) We are experiencing input price increases, especially in fabrics, which are rising by about 10-11%. We are managing these challenges by leveraging our private brands and implementing cost-saving initiatives to minimize the impact on our customers.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
