Vishal Mega Mart Footfall-first strategy; FY27 growth led by store roll-out + resilient value thesis

Research evidence excerpt

Vishal Mega Mart Footfall-first strategy; FY27 growth led by store roll-out + resilient value thesis

J P M O R G A N Asia Pacific Equity Research

16 May 2026

Vishal Mega Mart Overweight

VSSL.NS, VMM IN

Footfall-first strategy; FY27 growth led by store roll-out Price (15 May 26):Rs118.99

+ resilient value thesis ▲Price Target (Sep-27):Rs145.00 Prior (Mar-27):Rs127.00

VMM posted a strong Q4, with Revenue/EBITDA/PAT up 22%/32%/46% y/y; SSSG

accelerated to 12.1% (adjusted +13.2%), and management reiterated confidence in Consumer, Retail, Media

sustaining healthy growth driven by a sustained pace of store additions and Latika Chopra, CFA AC

prioritizing higher consumer footfalls while keeping entry price points stable. Store (91-22) 6157-3584

expansion is led by deeper penetration in existing markets, entry into new territories, latika.chopra@jpmorgan.com

and an accelerated rollout of smaller-format stores (with unit economics comparable Himanshu Singh

to larger stores). In an inflationary environment, they expect VMM to be relatively (91-22) 6157-3610

himanshu.x6.singh@jpmorgan.com

resilient because ~75% of revenue comes from private brands, enabling them to

Saransh S Gokhale

maintain meaningful discounts versus national brands and cushion consumers—

(91-22) 6157 3578

potentially benefiting from down-trading and higher footfalls. While gross margins saransh.gokhale@jpmchase.com

may face COGS inflation pressure, management guided to steady EBITDA margins J.P. Morgan India Private Limited, J.P. Morgan

supported by cost-saving and efficiency initiatives. We stay OW but marginally tweak Tower,Registration:Santacruz(E),INH000001873,Mumbai (91-22)- 400098,6157-3000.SEBI

estimates and set a new Sep’27 PT of Rs145.

• Constructive on FY27 revenue growth outlook.