Vishal Mega Mart grows sales 22.22% as costs outpace revenue
The consolidated operating margin fell 0.38 percentage points YoY and 2.85 percentage points QoQ, leaving it below the sector's 14.81% median.
Filed 14 May 2026, 13:02 IST · Vishal Mega Mart Ltd (VMM)
Key takeaways
- Consolidated revenue grew +22.22% YoY, but expenses grew +22.76%, trimming operating margin by 0.38 percentage points.
- Net profit rose +45.88% YoY, helped by a 0.62 percentage-point decline in the tax rate, while other income equalled 10.88% of pre-tax profit.
- Operating margin fell 2.85 percentage points QoQ to 13.64%, while the stock's -1.44% reaction was smaller than its 4.13% median absolute move after past results.
Price around the results
Sales growth did not fully convert into operating profit
Consolidated revenue increased +22.22% YoY, but operating profit grew only +18.94% because expenses rose faster than sales. That reduced operating margin by 0.38 percentage points to 13.64%. Net profit still increased +45.88% YoY, with interest expense down 5.86% and the tax rate lower by 0.62 percentage points.
Q3's margin peak reversed in Q4
Revenue declined -15.16% QoQ, while expenses fell only -12.26%, causing operating margin to contract 2.85 percentage points. Interest expense also increased +8.71%, while the tax rate moved up 0.09 percentage points. Margin has been volatile rather than steadily declining, moving from 14.62% in Q1FY26 to 13.23% in Q2FY26, 16.49% in Q3FY26 and 13.64% in Q4FY26.
Margin remained below the reported peer median
VMM's 13.64% operating margin was 1.17 percentage points below the 14.81% median for the 93 Consumer Discretionary peers that had reported the same quarter. Other income contributed 10.88% of pre-tax profit, so reported earnings included a material non-operating component.
Management highlighted loyalty and hyperlocal delivery
Management said targeted promotions through its loyalty programme are intended to drive cross-selling and up-selling. The company's presentation said the programme has 150 million+ registered users and is ranked sixth globally in retail and twelfth across loyalty programmes. Management also said its website and mobile application provide hyperlocal delivery through its quick-commerce platform.
The market move was ordinary against VMM's history
The stock fell -1.44% on the results day, with a -2.62% relative return, and traded at 3.41 times its usual volume. That reaction was modest against the 4.13% median absolute move across the five previous results, after which the stock rose three times and fell twice.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹3,114 cr | ₹3,670 cr | -15.16% | +22.22% |
| Other income | ₹25 cr | ₹25 cr | -0.28% | +31.62% |
| Expenses | ₹2,689 cr | ₹3,065 cr | -12.26% | +22.76% |
| Operating profit | ₹425 cr | ₹605 cr | -29.81% | +18.94% |
| Operating margin (%) | 13.64% | 16.49% | — | — |
| Interest | ₹46 cr | ₹43 cr | +8.71% | -5.86% |
| Depreciation | ₹178 cr | ₹168 cr | +5.91% | +4.02% |
| Profit before tax | ₹225 cr | ₹419 cr | -46.28% | +44.66% |
| Tax | ₹57 cr | ₹106 cr | -46.10% | +41.26% |
| Net profit | ₹168 cr | ₹313 cr | -46.34% | +45.88% |
| EPS (₹) | ₹0.36 | ₹0.67 | -46.27% | +44.00% |
Operating margin of 13.64% compares with a Consumer Discretionary sector median of 14.81% across 93 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -1.44% | -2.62% |
| Next session | -0.43% | — |
| 5 sessions | +3.21% | +2.17% |
| 15 sessions | -0.64% | — |
| 30 sessions | -3.10% | — |
Volume on the results session was 3.41× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
New initiatives
- The loyalty program uses targeted promotions to drive cross-selling and up-selling of products.
- VMM's quick commerce platform offers hyperlocal delivery through its website and mobile application.
Competition
- VMM's customer loyalty program is ranked sixth globally in retail and twelfth among all loyalty programs worldwide.
- VMM states that its customer loyalty program is the biggest customer loyalty program in India.
What to watch
- Whether operating margin recovers from 13.64% after reaching 16.49% in Q3FY26.
- Whether expenses grow more slowly than revenue after rising +22.76% YoY against revenue growth of +22.22%.
- Whether other income remains close to or falls below 10.88% of pre-tax profit as operating earnings are assessed.