# Vishal Mega Mart tests value strategy amid margin squeeze

> Vishal Mega Mart adjusts pricing and store formats to protect margins as festive timing impacts growth.
- Title: Vishal Mega Mart tests value strategy amid margin squeeze
- Summary: Vishal Mega Mart adjusts pricing and store formats to protect margins as festive timing impacts growth. Vishal Mega Mart is freezing entry prices while…
- Keywords: vishal mega mart, sehawarks, nfl, festival timing, store formats, pricing strategy, margin squeeze, premium apparel, revenue growth, operating ebitda margin, news, india
- Source: mint — https://livemint.com/news/vishal-mega-mart-s-value-proposition-faces-a-test-as-it-reshapes-strategy-11792590085791.html
- Author: Vaeshnavi Kasthuril
- Published: 2026-10-21T14:43:24+00:00
- Read time: 1 min
- Topics: vishal mega mart, sehawarks, nfl, festival timing, store formats, pricing strategy, margin squeeze, premium apparel, revenue growth, operating ebitda margin, news, india
## Vishal Mega Mart's pricing strategy
The company keeps entry-level prices unchanged while raising prices at higher price points.
## September-quarter results
Revenue rose 14% year-on-year to ₹3,398.5 crore but net profit grew just 3.7% to ₹157.9 crore.
## Margin pressure
Operating Ebitda margin narrowed to 7.7% from 8.5% a year earlier with same-store sales growth at 5.4%.
## Festive timing impact
The company estimated growth would have been 9% without the shift in festive calendar.
## CEO's growth target
Kapur said December quarter SSSG needs to reach 12-13% to achieve 9% annual growth.
## Share price decline
Shares fell 33.73% year-to-date underperforming Nifty 50 which dropped 12.76%.
## Analyst perspective
Sandeep Abhange said revenue growth of 14-15% is reasonable but post-December margins will be key.

> The results were dull. They missed on a few with the margin side. But I believe they will, like, overall come back on the margin side.
## Premium apparel pilot
Belong & Co. pilot store targets young affluent urban shoppers with fashion-led merchandise.
## Store format testing
The retailer tests smaller stores in high-rental-cost states while expanding in contiguous markets.
## Store economics
Kapur aims for 100% viable and profitable stores with 2,000 large-format outlets nationally.

> I would absolutely focus on stores. I want 100% viable and profitable stores
## Future store targets
The company plans to open over 100 stores this financial year with growing openings annually.
## Key takeaway

Vishal Mega Mart is freezing entry prices while testing premium stores to maintain affordability amid declining September-quarter margins.