Vishal Mega Mart: A Deep Dive into Q2 & H1 FY26 Performance

Vishal Mega Mart Limited, a prominent retail player in India, has once again demonstrated robust financial and operational performance for the second quarter and first half of the fiscal year 2026. The company, known for making aspirations affordable across apparel, general merchandise, and FMCG categories, reported significant growth, driven by strategic expansion, strong own-brand portfolio, and successful omnichannel initiatives.

For Q2 FY26, Vishal Mega Mart's revenue from operations surged by 22.4% year-over-year, reaching 2981.5 crore. This impressive top-line growth translated into a substantial increase in profitability, with the Adjusted Profit After Tax (pre-ESOP charges) climbing 39.4% year-over-year to 161.7 crore. The Adjusted EBITDA (pre-INDAS 116 and pre-ESOP charges) also saw a healthy rise of 34.2%, reaching 252.9 crore, with margins improving to 8.5%. The first half of FY26 mirrored this strong trajectory, with revenue from operations growing 21.6% to 6121.8 crore and Adjusted PAT (pre-ESOP charges) increasing 38.5% to 377.2 crore. The Adjusted EBITDA for H1 FY26 stood at 577.3 crore, with a margin of 9.4%.

Financial Highlights: Q2 & H1 FY26

(Note: All figures are converted from millions to crores for consistency. Adjusted figures exclude INDAS 116 impact and ESOP charges.)

The company's Adjusted Same-Store Sales Growth (SSSG) remained robust at 12.8% for Q2 FY26 and 12.1% for H1 FY26, indicating healthy comparable store performance. This growth was supported by strong footfalls and the sustained strength of its own-brand portfolio, which contributed a significant 74.7% to the H1 FY26 revenue. The category mix for H1 FY26 saw Apparel contributing 45%, General Merchandise 28%, and FMCG 27% to the total revenue.

Strategic Expansion and Omnichannel Prowess

Vishal Mega Mart's growth narrative is strongly underpinned by its aggressive store expansion strategy. As of September 30, 2025, the company operates 742 stores across 493 cities, spanning a total retail area of approximately 12.76 million square feet. In Q2 FY26 alone, 28 gross new stores were added, with 51 gross additions in H1 FY26. This expansion reflects the company's commitment to deeper penetration into India and covering untapped 'white spaces'. Management noted successful initial traction in new geographies like Kerala, where they are adapting store formats to smaller sizes to be closer to customers.

The omnichannel strategy is another cornerstone of the company's success. The quick commerce initiative has expanded significantly, now available in 695 stores across 460 cities, serving a registered user base of 10.8 million, a 60% year-over-year increase. This platform offers easy access to products, doorstep delivery, and store pickup, effectively attracting new customers, with about 20% of e-commerce users being first-time Vishal shoppers. The loyalty program also continues to thrive, boasting approximately 157 million registered customers, a 17% year-over-year growth, who contribute about 95% of the company's revenue.

Operational Efficiency and Future Outlook

Operational efficiency and strategic pricing have been key to maintaining strong profit margins. The government's initiative of GST rate rationalization is viewed as a positive step towards stimulating consumption, and Vishal Mega Mart is committed to passing these benefits to its customers. The company anticipates a positive impact on consumption from this, along with rationalized income tax rates for middle-income groups and expectations of a good crop. Management also highlighted ongoing investments in supply chain infrastructure, including a 600,000 square feet automated warehouse in Haryana, to support future growth and enhance efficiency.

Vishal Mega Mart is also focused on continuous merchandise upgradation, introducing more fashionable and aspirational products while maintaining competitive pricing at entry-level points. This dual strategy aims to cater to a broader customer base and drive both volume growth and value. The company's ability to adapt store sizes and formats based on market realities, as seen in Kerala, demonstrates a flexible and responsive approach to expansion.

Concluding Thoughts: Sustained Growth Trajectory

Vishal Mega Mart Limited's Q2 and H1 FY26 results underscore a clear theme of sustained growth driven by strategic clarity and disciplined execution. The company's balanced approach of aggressive physical expansion, robust omnichannel development, and a strong focus on customer value proposition positions it well for continued success. With a healthy balance sheet to fund its ambitious plans and a proactive stance on market dynamics, Vishal Mega Mart appears set to maintain its growth trajectory, reinforcing investor confidence in its long-term potential within the dynamic Indian retail landscape.