Vishal Mega Mart Q1 Review: Steady operational performance

Research evidence excerpt

Vishal Mega Mart Q1 Review: Steady operational performance

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

24 July 2026

Vishal Mega Mart Overweight

VSSL.NS, VMM IN

Q1 Review: Steady operational performance Price (23 Jul 26):Rs109.87

Price Target (Sep-27):Rs145.00

On the earnings call (First Take), management focused on sustaining steady Consumer, Retail, Media

ACoperational performance. Adjusted SSSG stood at 10%, led by new customer Latika Chopra, CFA

acquisitions and higher basket values among existing customers. Despite the (91-22) 6157-3584

inflationary environment, opening price points were held intact and the company latika.chopra@jpmorgan.com

maintained its price-discount versus leading FMCG brands, prioritizing volume and Himanshu Singh

market share gains. Store additions remained steady (+24 to 819 stores across 559 (91-22) 6157-3610

cities), with small-format stores delivering comparable unit economics to larger stores himanshu.x6.singh@jpmorgan.com

— with an acceleration expected ahead and a long-term potential of ~3,000 stores. Saransh S Gokhale

Gross margins expanded 30 bps y/y on account of lower promotions, though higher (91-22) 6157 3578

saransh.gokhale@jpmchase.com

employee costs capped EBITDA margin expansion. The margin outlook remains J.P. Morgan India Private Limited, J.P. Morgan

steady, supported by ongoing cost optimization initiatives. The stock has Tower, Santacruz(E), Mumbai - 400098, SEBI

Registration: INH000001873, (91-22) 6157-3000.

underperformed the broader index over the past three months (-13% vs. NIFTY: flat)

despite delivering steady operational performance, with recent investor discussions

skewed more towards promoter stake sale overhang and clarity sought on CEO Style Exposure

succession planning.

• Stable revenue growth momentum.