Vishal Mega Mart, established in 2001, is a prominent hypermarket chain in India, catering to middle and lower-middle-income customers. The company offers a wide range of products, including apparel, groceries, electronics, and home essentials. As of September 30, 2024, it operates 645 stores across 414 cities in 28 states and two union territories. The company targets middle and lower-middle-income people through a Pan India network of 645 Vishal Mega Mart stores (as of September 30, 2024) and their Vishal Mega Mart mobile app and website. As of September 30, 2024, the company has a presence across 414 cities in 28 states and two union territories.
The Company is ranked as one of the top two offline-first diversified retailers in India. As of September 30, 2024, they had 16,537 employees. The company operates an asset-light business model, leasing all its distribution centers and stores, while its products are manufactured by third-party vendors or sourced from third-party brands.
Vishal Mega Mart operates on a discount retail model, where it buys products in bulk at low prices and passes the savings on to consumers. The company targets customers looking for quality products at lower prices and focuses on high volume sales. Vishal Mega Mart has its own 26 stores, and the company generated more than 73% of revenue from its brands in FY24.
The company operates across three primary product categories: general merchandise, apparel, and fast-moving consumer goods. Vishal Mega Mart's portfolio includes its own brands across various categories. In apparel, it features Classics, Fashion, Denim, and Ethnic lines. In general merchandise, it offers Tandem Home Appliances, Home Select, and Home Finery. Its FMCG offerings include Savoury Products, Staples, and Home Care, catering to diverse consumer needs.
The allotment for Vishal Mega Mart IPO was finalized on Monday, December 16, 2024. The shares got listed on BSE, NSE on December 18, 2024. Vishal Mega Mart IPO price band was set at ₹78 per share. The minimum amount of investment required by retail investors was ₹14,060.
Vishal Mega Mart shares were listed at ₹104 a unit on the National Stock Exchange (NSE) on Wednesday, a premium of 33.33% to the issue price of ₹78 apiece. The stock debuted at a premium of 41% at ₹110 apiece on the BSE. On the third day of bidding, the Vishal Mega Mart IPO achieved a subscription rate of 28.75 times the total shares on offer.
The IPO was structured as a complete offer for sale (OFS) of 102.56 crore shares, aiming to raise ₹8,000 Crore. Vishal Mega Mart IPO raised ₹2,400.00 Crore from anchor investors.
In the financial year 2023-24 (FY24), the company reported a revenue of ₹8,911 Crore compared to ₹7,586 Crore in the previous fiscal. Its net profit stood at ₹461.94 Crore in FY24 as against the net profit of ₹321.27 Crore in FY23. Vishal Mega Mart Limited's revenue increased by 17.41% and profit after tax (PAT) rose by 43.78% between the financial year ending with March 31, 2024, and March 31, 2023.
Vishal Mega Mart posted a revenue of ₹5,053.42 Crore for the period ended September 2024. The company's profit after tax (PAT) for the period stood at ₹254.1 Crore. Vishal Mega Mart Ltd's revenue jumped 23.63% since the last year same period to ₹2,566.52 Crore in Q4 FY2024-2025. Vishal Mega Mart Ltd's net profit jumped 88.03% since the last year same period to ₹115.11 Crore in Q4 FY2024-2025.
Vishal Mega Mart has a Market Cap of ₹60,295 Crore, Revenue: ₹10,716 Crore, and Profit: ₹632 Crore. The stock is trading at 9.29 times its book value. Though the company is reporting repeated profits, it is not paying out dividends. Promoter Holding: 74.6%.
Net profit for the year grew by 43.8% YoY. Net profit margins during the year grew from 4.2% in FY23 to 5.2% in FY24. The EBITDA margin remained steady at around 14%, with an EBITDA of ₹366 Crore in June 2024.
The company has demonstrated consistent expansion in its store network. With 626 stores in June 2024, up from 611 in March 2024, the company's revenue reached ₹2,596 Crore in Q1 and ₹8,912 Crore for FY24 (from ₹7,586 Crore in FY23). As of September 30, 2024, their direct local delivery service, managed by their employees, had 6.77 million registered users and was available in 600 stores across 391 cities in India.
The company's strategic focus remains on serving the underserved middle and lower-middle-income segments in India. The number of middle-income households in India has increased from approximately 201 million in calendar year 2018 to approximately 225 million households (approximately 945 million individuals) in calendar year 2023 due to rapid economic development, increasing formalization of employment, and structural shift from an agriculture-based economy to industry and services.
Samayat Services LLP and Kedaara Capital Fund II LLP are the promoters of the Company. Partners Group's investment in Vishal took place in 2018, and the Company has since demonstrated a period of strong growth, with EBITDA rising over 55% in the last two years and revenues more than 60%. This reflects the successful execution of several transformational value creation initiatives, including store expansion, double-digit same-store sales growth, and the implementation of operational efficiency improvements.
Vishal Mega Mart continues to strengthen its position as a leading value retailer in India, with a robust business model, strong financial performance, and strategic growth initiatives that position it well for capturing the expanding middle-income consumer market across the country.
