Vishal Mega Mart (VMM) delivered a robust first quarter of FY27, with revenue up 19% year‑on‑year. The growth was driven by a 10% rise in adjusted SSSG and an 11% increase in retail area.
Pre‑IND AS EBITDA margin expanded by about 25 basis points to 10.2%. The improvement came from a 30‑basis‑point rise in gross margin, which was partially offset by higher employee costs due to minimum wage hikes in several states.
Both pre‑IND AS EBITDA and PAT grew 22% and 26% respectively, aligning closely with the analysts’ expectations.
Based on these results, the research team reiterated a BUY rating and raised the target price to ₹165 from ₹160. The new target is supported by a discounted cash flow model that values the company at roughly 34‑times the projected Sep 2028 pre‑IND AS 116 EV/EBITDA, which translates to about 51‑times the projected Sep 2028 EPS.
The report highlights VMM’s strong operational performance and the company’s ability to maintain healthy margins despite rising costs, reinforcing confidence in its future growth prospects.