Vishal Mega Mart shares are in the spotlight after the company reported a strong set of Q1 FY26 numbers, prompting upbeat recommendations from leading brokerages on the back of robust growth across revenue, margins, and store expansion.
Morgan Stanley on Vishal Mega Mart: Buy, target price ₹161/sh
Morgan Stanley maintained its Overweight rating, highlighting that revenue, EBITDA, and net profit grew 21%, 26%, and 37% year-on-year respectively. Same-store sales growth came in at 10.5%, marginally ahead of its 10% estimate. For comparison, DMart posted 16% revenue growth and 7.1% like-for-like growth in Q1. The brokerage noted that Vishal Mega Mart’s growth was driven by store expansion, high footfalls, and strong own-brand sales, though partly offset by festival shifts to Q4. Gross margin stood at 28.4%, in line with estimates, while EBITDA margin improved to 14.6%, up 54 bps YoY. Adjusted EBITDA margin rose to 10.3% from 8.2% in Q4 and 9.3% in Q1 FY25.
Jefferies on Vishal Mega Mart: Buy, target price ₹175/sh
Jefferies raised its target price to ₹175, citing the company’s fifth consecutive quarter of double-digit same-store sales growth. It highlighted continued momentum in store additions and expansion into new states. The brokerage’s outlook remains positive, supported by sustained operational performance and a growing footprint.
The consensus among both brokerages points to a bullish stance on Vishal Mega Mart, with expectations of continued growth driven by a mix of operational efficiency, store network expansion, and healthy consumer demand.
Disclaimer: The views and recommendations above are those of individual brokerages and do not represent investment advice. Investors are advised to consult certified financial advisers before making investment decisions.
