Vishal Mega Mart (VMM) Q1 2027 earnings summary

Executive summary

• Revenue from operations grew 18.7% year-over-year to INR 3,727 crore in Q1FY27, driven by 10% same-store sales growth and total income up 19.1%.

• Profit after tax increased 25.6% to INR 259 crore, with PAT margin at 6.9%.

• 27 new stores opened, bringing the total to 819 across 559 cities and 30 states/UTs; trading area now 13.8 million sq. ft.

• Private brands contributed 75.2% of revenue; Quick Commerce expanded to 767 stores, 1.4 crore registered users.

• Unaudited financial results for Q1 FY27 were approved by the Board, with no material misstatements noted.

Financial highlights

• Revenue: INR 3,727 crore (+18.7% YoY); gross profit rose 19.9% to INR 1,068.8 crore, margin at 28.7%.

• Operating EBITDA: INR 387 crore (+19.3% YoY), margin at 10.4%; EBITDA (pre-INDAS116 and pre-ESOP) at INR 387 crore.

• PAT: INR 259 crore (+25.6% YoY), PAT margin at 6.9%.

• Gross margin improved from 28.4% to 28.7%, mainly due to lower promotional spend.

• Closing inventory at INR 1,900 crore.

Outlook and guidance

• Expect inflation impact to taper in coming quarters; confident in continued growth.

• Small format store expansion to accelerate, with potential for 3,000 stores nationwide.

• Focus on omni-channel growth, loyalty program expansion, and hyperlocal delivery network.

• Gross margin expected to be sustainable if current cost structure persists.