This article first appeared on GuruFocus .
Release Date: January 28, 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 17% year-over-year growth in revenue for Q3 FY26, reaching INR 3,670 crores.
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The company achieved a 19.8% growth in EBITDA, with margins improving to 16.5% from 16.1% last year.
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Same-store sales growth adjusted for the first nine months stood at 10.3%, indicating strong performance despite seasonal shifts.
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The company opened 29 new stores in Q3, with a total of 80 new stores opened in the first nine months, surpassing their annual target.
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Vishal Mega Mart Ltd ( NSE:VMM ) expanded its Quick Commerce initiative to 723 stores across 485 cities, with registered users reaching 12 million.
Negative Points
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The deceleration in growth from 22.5% last quarter to 17% this quarter was attributed to the change in festive timing, impacting quarterly comparisons.
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There was a delay in winter onset, which may have affected sales, although winter merchandise still achieved double-digit growth.
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The company faces challenges with infrastructure constraints, such as road constructions affecting store operations temporarily.
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Despite the positive outlook, the impact of GST and income tax changes on consumer sentiment has not yet fully materialized.
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The company is cautious about expanding store numbers beyond the current guidance due to the availability of suitable properties and potential profitability concerns.
Q & A Highlights
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Q: Can you explain the factors behind the 10.3% same-store sales growth (SSG) for the first nine months, and whether there were any additional weaknesses affecting this performance? A: (Gunender Kapoor, MD and CEO) The 10.3% SSG is broadly our average achievement, and we see no significant weaknesses around that number. Minor issues like delayed winter may have had a small impact, but overall, our winter merchandise sales also saw double-digit growth for the full quarter.
Q: How is the growth split between transaction volume and bill size? A: (Gunender Kapoor, MD and CEO) About 70% of the growth is due to an increase in transactions, while 30% comes from an increase in average bill value. Most of our growth is driven by new transactions and market share gains from competitors and mom-and-pop stores.
Q: What was the intent behind the winter marketing campaign with Manushi Chhillar? A: (Gunender Kapoor, MD and CEO) The campaign aimed to dramatize our proposition of making aspirations affordable. Manushi Chhillar, being an aspirational figure, represents both fashion and social commitment, aligning with our brand promise of "do good, look good." The campaign has been very successful.
Q: What are the reasons behind the deceleration in growth from 22.5% last quarter to 17% this quarter? A: (Gunender Kapoor, MD and CEO) The deceleration is largely due to the festive timing change. The Durga Puja festival fell in Q2 this year, impacting Q3 numbers. However, when looking at the nine-month figures, the growth normalizes to 10.3% SSG and 24.4% EBITDA growth.
Q: How do you maintain a double-digit SSG compared to the overall retail space? A: (Gunender Kapoor, MD and CEO) Our proposition of making aspirations affordable is highly relevant. Our growth is driven by market share gains, increased average bill value, and upgrading customers to higher price points. We focus on delivering a double-digit SSG through these strategies.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
