Vishal Mega Mart Ltd. shares rose to 5% in early trade on Thursday, after the release of its robust Q1 FY26 earnings.
The stokes eased up from its intraday peak by 9:30 am, trading at Rs. 148.02 on the NSE, still 2.3% more.
The retained chain reported a 37.2% annual jump in net profit for the April-June quarter. The profit was recorded at Rs. 206.1 crore, compared to Rs. 150.1 crore in the previous year.
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The revenue from operations increased to Rs. 4,819 crore, a significant rise from Rs. 4,347 crore in the year before. Same-store sales growth remained at 10.5 %, slightly more than the 10% forecast.
The company continued its aggressive expansion, particularly in South India, adding 12 new stores across Karnataka, Kerala, and other states, along with openings in Gujarat and Maharashtra. According to management, early customer response to these outlets has been ‘encouraging’. South India emerged as the fastest-growing market with 23% YoY growth, although per-store productivity in the region remains about 5% below the company’s overall average.
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Jefferies, an international brokerage, maintained its buy rating as it lifted the target price to Rs. 175 from RS. 142, stating the ‘fifth straight quarter of double-digit same store sales growth, ongoing store expansion into new states, and steady scale-up of quick commerce platform.”
Similarly, Morgan Stanley emphasized its tough stance with a price target of Rs. 161 per share. They highlighted an annual revenue growth of 21%. EBDITA grew by 26%, and net profit growth of 37% was also mentioned. DMart recorded a revenue growth of 16% and a like-for-like sales growth of 7.1% in the same quarter.
