Investor Spotlight: Vishal Mega Mart Navigates Market Pressure with Strong Margins

Vishal Mega Mart Shares Slide Amid Major Block Deals — ₹11,100 Cr in Turnover Recorded

Vishal Mega Mart Ltd witnessed a sharp 8% drop in share price today, trading at ₹115.10 by 9:19 AM, following substantial block deals reportedly initiated by promoter Samayat Services, which held a 74.55% stake as of March 31.
Opening Price: ₹115.85 on BSE
Turnover: ₹11,077.75 Cr on NSE

According to media reports, Samayat Services was looking to offload up to ₹9,896 crore worth of shares, with the floor price set at ₹110 per share — an 11.9% discount to the last close.
Kotak Mahindra Capital and Morgan Stanley are reportedly advising on the transaction.

Strong FY25 Performance Despite Volatility

Despite today’s market reaction, Vishal Mega Mart has demonstrated resilient fundamentals:

• Pre-Ind AS EBITDA margin rose 180 bps YoY to 8.2% — the highest in recent years

• Gross margin expanded 80 bps YoY in FY25 and 180 bps in Q4, led by private-label growth

• Operating cash flow surged to ₹1,000 Cr, up from ₹400 Cr YoY

• Free cash flow improved despite aggressive expansion

• Accounted for 60% of the value retail sector’s revenue and profits

Retail Sector Outlook

The value retail segment reported a 24% revenue growth in FY25, supported by:

• 16% increase in retail space

• Strong same-store sales growth (SSSG)

• Sector-wide margin improvement and procurement efficiencies

Vishal Mega Mart continues to lead the pack with sector-best profitability and cash generation, even as market dynamics evolve.