Founded in 2001, Vishal Mega Mart caters primarily to India’s middle and lower-middle-income groups. With 645 stores across 414 cities, along with a mobile app and website, it offers a wide range of products including apparel, FMCG, and general merchandise under both in-house and third-party brands.
Ranked among India’s top three offline retailers by retail space as of March 31, 2024, the company is also the fastest-growing in terms of profit after tax growth from FY 2021 to FY 2024. Additionally, it is one of the top retailers for same-store sales growth in FY 2024.
The company uses a hub-and-spoke distribution model for the procurement of products and the management of inventory at its stores. As of September 30, 2024, Vishal Mega Mart has one central distribution centre and 17 regional distribution centres, each of which is located close to the major areas of demand for its products.
Vishal Mega Mart emphasises its own brands, offering a diverse portfolio in categories like apparel, FMCG, and general merchandise. By FY24, six in-house brands surpassed ₹500 crore in sales, and 19 others exceeded ₹100 crore. Own-brand revenue grew at a CAGR of 27.72% from FY22 to FY24, constituting 72.86% of overall revenue by September 30, 2024. Over the same period, revenue and net profit saw CAGR increases of 16.8% and 31.5%, respectively, positioning the company to leverage India’s expanding aspirational retail market projected to reach ₹104-112 trillion by 2028.
IPO Details
Now, it is launching an ₹8,000 crore IPO, entirely an Offer for Sale (OFS). The money raised from the issue will be received by its selling shareholders. Its shares will be listed on the NSE and BSE.
Key Details
- Company Name: Vishal Mega Mart
- Company Established On: 2001
- Company Type: Private Limited Company
- CEO/MD: Gunender Kapur
Financial Overview (₹ crore)
| Particulars | FY22 | FY23 | FY24 | Q2FY25 |
|---|---|---|---|---|
| Revenue | 5,588 | 7,586 | 8,911 | 5,032 |
| Net Profit | 202.7 | 321.2 | 461.9 | 254.1 |
Strengths
Vishal Mega Mart caters to India’s middle and lower-middle-income groups with 645 operational stores as of September 30, 2024, including 451 in Tier 2 cities and beyond. It offers affordable products (e.g., ₹89 for women’s wear) and prioritises variety, quality, and convenience. The company’s revenue and profit grew at CAGRs of 16.8% and 31.5%, respectively, between FY22–FY24. Supported by technology-driven systems, it has a strong pan-India presence and consistently updates its product portfolio.
Risks
The company depends on third-party vendors, facing risks from production delays, supply disruptions, and quality issues. Its reliance on specific states (UP, Karnataka and Assam) and a single distribution centre in North India exposes it to regional risks. Past cash flow issues and contingent liabilities remain concerns, alongside IT disruptions, legal matters, and seasonal fluctuations that could impact operations and financial performance.
You can now apply for the Vishal Mega Mart IPO on Upstox. Click here.