Brokerages Bullish on Vishal Mega Mart; Share Price Slips After 8% Surge on Strong Q1: Should You Buy or Wait?

Shares of Vishal Mega Mart, a leading retail-chain store operator, witnessed a sharp rally on Thursday, following the announcement of its strong financial performance for the first quarter of the current financial year (Q1FY26). The upbeat earnings prompted brokerages to raise their price targets on the stock, boosting investor sentiment.

Vishal Mega Mart Share Price Today After Q1 Results Announcement

On the Bombay Stock Exchange (BSE), the stock surged 7.6% intraday to hit a high of Rs 155.45, while on the National Stock Exchange (NSE), it climbed 7.9% to Rs 155.60. However, the stock later pared some gains and was trading 0.75% higher on the NSE at around 10:00 AM.

As of 11:47 AM on August 14, 2025, Vishal Mega Mart Ltd. shares are trading at Rs 145.95, up Rs 1.76 or 1.22% from the previous close. The stock opened at Rs 154.00, hit a high of Rs 155.60 (also its 52-week high) and touched a low of Rs 144.40 so far today. The stock has risen significantly over the past year, up from a 52-week low of Rs 95.99.

Should You Buy Vishal Mega Mart Stock? What are Top Brokerages' Ratings?

Brokerage firms responded positively to the quarterly update of the company. Morgan Stanley also remains bullish on the stock, retaining its "overweight" rating and setting a price target of Rs 161.

Global investment bank Jefferies raised its price target on Vishal Mega Mart to Rs 175, up from Rs 142 earlier, while maintaining its "buy" rating. This revised target suggests a 21% upside from Wednesday's closing price.

Jefferies' target is currently the highest on the street, and it implies a staggering 124% return from the company's IPO price of Rs 78 per share. The stock has already delivered a strong 80% return since its listing.

As per CNBC-TV18 report, 12 analysts currently track Vishal Mega Mart. Among them, nine have a "buy" rating, two recommend holding, and one suggests selling the stock. The bullish stance reflects growing confidence in the company's business model, execution capabilities, and long-term growth prospects.

Vishal Mega Mart Q1 Results 2026 Highlights

The sharp rally was driven by Vishal Mega Mart's robust financial results for the April-June 2025 period. The company reported a net profit of Rs 206.10 crore, marking a 37.2% year-on-year increase from Rs 150.10 crore in the same quarter last year. Profit margins also showed healthy improvement, rising from 5.8% to 6.6%.

Revenue from operations rose 21% YoY, reaching Rs 3,140.30 crore, compared to Rs 2,596.30 crore in Q1FY25. Gross profit increased by 21.6% to Rs 891.30 crore, up from Rs 733.10 crore a year ago. The gross profit margin for the quarter stood at 28.4%.

Earnings before interest, tax, depreciation, and amortization (EBITDA) came in at Rs 459.20 crore, a 25.6% jump from Rs 365.60 crore in the corresponding period last year. The EBITDA margin also improved to 14.6%, up from 14.1%.

According to the company's management, the growth during the quarter was driven by store expansion, higher footfalls, and strong performance from its private-label brands. However, the management noted that the shifting of some key festivals from Q1 to Q4 partially offset the growth.

Disclaimer

The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of Goodreturns.in or Greynium Information Technologies Private Limited (together referred as "we"). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.