Vishal Mega Mart: From Crisis to Retail Dominance in India – 2025

Overview of India’s Consumption-Driven Economy

Vishal Mega Mart has been a long-standing player in India’s retail sector, but only recently emerged as a major force. India’s economy is heavily reliant on consumption, as reflected in the rise of Private Final Consumption Expenditure (PFCE), which accounted for 64.8% of GDP in December 2024, up from 61.8% in September 2024. According to the IMF, India’s GDP per capita is projected to surpass $3,000 by 2026, while in terms of Purchasing Power Parity (PPP), it is estimated to reach $12,132 by the end of 2025.

The retail sector is poised for significant expansion due to multiple drivers:

• Increasing Household Numbers: According to Redseer Research, India’s total households are expected to reach 365 million by FY28.
• Growth in Disposable Income: With rising income levels, discretionary spending is likely to surge, further supported by easy access to consumer credit.
• Urbanization Trends: The aspirations of consumers in Tier-2 and smaller cities are fueling retail demand. While the overall retail market in India is projected to grow at a CAGR of 20% from 2023 to 2028, the market in smaller cities is expected to grow at a CAGR of 32%.
• Expanding Organized Retail: India’s organized retail sector has grown from ₹7.7 trillion in 2018 to ₹14.9 trillion in 2023, and is projected to reach ₹36-38 trillion by 2028.

These favorable macroeconomic trends make Vishal Mega Mart one of the key beneficiaries of India’s retail boom.

Vishal Mega Mart: Journey to Success

Early Challenges & Recovery

Founded by Ram Chandra Agarwal, Vishal Mega Mart initially operated as Vishal Retail, which expanded aggressively and listed on stock exchanges in July 2007. However, the company faced financial distress during the 2008 global financial crisis, due to its reliance on short-term loans. By March 2010, its debt had risen to ₹700 crore, leading to declining sales and severe liquidity challenges.

To stabilize operations, Mr. Agarwal sold the company for ₹70 crore to a consortium of TPG (via TPG Wholesale) and Shriram Group (via Airplaza Retail Holdings). Following the acquisition, TPG and Shriram restructured the debt and streamlined operations, paving the way for Vishal Mega Mart’s resurgence.

Expansion & Ownership Changes

By 2017, Vishal Mega Mart had 350 stores and consolidated sales of ₹2,300 crore, leading to its acquisition by Partners Group and Kedaara Capital for ₹5,000 crore. Under their ownership, the retailer strategically expanded into smaller cities where modern retail was underserved.

In December 2024, Vishal Mega Mart went public, debuting at a 40% premium to its issue price. The ₹8,000 crore IPO was structured as a complete Offer for Sale, enabling promoters to monetize their holdings.

Shareholding Pattern & Leadership

Promoters & Institutional Investors

The company’s promoters, primarily Kedaara Capital, hold 74.55% of its outstanding shares through subsidiaries such as Samayat Services LLP. Other promoter entities include:

• Indian Promoters:
  • KEDAARA CAPITAL FUND II LLP
  • Universal Nutriscience Private Limited
  • GAVS Technologies Private Limited
  • Rishanth Services LLP
  • Trishikhar Ventures LLP
  • Rishay Services LLP
• Foreign Promoters:
  • Kedaara Richvest Limited
  • PG Kaziranga Limited
  • Kedaara Capital II Limited

Before the IPO, Samayat Services LLP controlled 96.55% of Vishal Mega Mart’s shares, with PG Kaziranga Limited (a subsidiary of Luxembourg-based Partners Group) contributing 49.5% of capital to Samayat Services LLP.

Institutional & Insider Holdings

• Mutual Funds: 11.35%, led by Nippon India ETF (2.93%)
• Foreign Portfolio Investors (FPIs): Government of Singapore (1.59%)
• Insider Holdings: CEO & MD Gunender Kapur holds 1.03% of shares

Leadership Team

• CEO & MD: Gunender Kapur, leading since 2011, previously worked at Reliance Retail and Unilever, holds a B.Tech (BITS Pilani) & MBA (FMS Delhi)
• Independent Directors:
  • Neha Bansal (Chairperson & Co-founder of LensKart)
  • Soumya Rajan (Founder & CEO of Waterfield Advisors)
• Board Representative of Kedaara Capital: Nishant Sharma (Managing Partner & CIO of Kedaara Capital)

Other key executives:

• Manoj Kumar – Chief Operating Officer
• Amit Gupta – Chief Financial Officer
• Anne Martine Marie Puvis Cardinali – Chief of Buying & Merchandising
• Samir Agrawal – VP, General Merchandising
• Vishal Mehrotra – VP, FMCG
• Karthik Kuppuswamy – Chief Information Officer
• Dhruva Kumar Dubey – Chief HR Officer
• Kuldeep Sharma – VP, Legal & Compliance
• S Ramesh – VP, Supply Chain

Business Model & Expansion Strategy

Vishal Mega Mart operates a nationwide network of stores, focusing on Tier 2 and smaller cities. The company employs a cluster-based expansion model, prioritizing deeper market penetration.

Product Portfolio & In-House Brands

The retailer has 70% of revenue coming from its own-brand products, spanning multiple categories:

• Apparel & Lifestyle
• Home Furnishings & Kitchen Appliances
• Crockery & Utensils
• Footwear & Travel Accessories
• Staples & FMCG

The company also owns the Tandem brand in electrical appliances, offering products like mixers, gas stoves, pressure cookers, LED lighting, and air fryers. Other in-house FMCG brands include Full Bloom, Imli Tree, Pure Burst, Home Ninja, and First Crop.

Store Expansion & Omnichannel Strategy

In FY25, Vishal Mega Mart added 85 net new stores, bringing its total footprint to 696 stores across 458 cities. The retailer’s omnichannel and hyperlocal delivery services cover 429 cities, with 9 million registered users.

Financial Performance

Revenue & Profit Growth

• Revenue: ₹10,716 crore in FY25 (92% growth from ₹5,589 crore in FY22)
• Profit After Tax (PAT): ₹632 crore in FY25, up 211% from FY22
• Gross Profit: ₹30,527 crore, up 23.8% YoY

Key Financial Metrics

• Gross Margin: 28.5% (FY25), up from 27.7% (FY24)
• EBITDA Margin: 14.28% (FY25), up from 14.01% (FY24)
• PAT Margin: 5.9% (FY25), up from 5.2% (FY24)
• Return on Capital Employed (RoCE): 13.03%
• Return on Assets (RoA): 6.32%
• Inventory Days: Declined from 71 days (FY22) to 56 days (FY25)

The company is debt-free, but lease liabilities have increased steadily since FY22. Its Enterprise Value (EV) stands at ₹47,442 crore, and its stock trades at a TTM PE ratio of 123.79 and a Price-to-Book (P/B) ratio of 10.35.

The company had a net cash flow from operating activities of ₹1,399 crore in FY25, which was 69% higher than in FY24. At the end of FY25, the company had cash and cash equivalents of ₹397 crore.

Listed and Unlisted Peers of Vishal Mega Mart

Competitive Landscape of the Retail Industry

The retail sector in India is highly lucrative, appearing accessible for new entrants but challenging for long-term sustainability. Several organized retail players compete across multiple product categories, while the unorganized sector remains a dominant challenge. Additionally, various structural and operational factors impact profitability for organized retailers.

Challenges Faced by Organized Retail Players

• Rising Real Estate Costs: Increasing rental and property prices escalate capital expenditures (capex) or lead to higher lease liabilities.
• Price Sensitivity & Low Brand Loyalty: Indian consumers prioritize price over brand, making long-term customer retention difficult.
• Working Capital Constraints: The sector demands constant inventory churn, leaving minimal room for shareholder payouts.
• Intense Industry Competition: Players aggressively undercut pricing to boost sales, often sacrificing margins.
• Thin Profit Margins: Even minor operational missteps can have a significant impact on profitability.

Major Competitors in the Organized Retail Space

E-Commerce & Quick Commerce Leaders

• Amazon Marketplace: India’s largest e-commerce player, generating ₹25,406 crore revenue (FY24), though reporting a ₹3,470 crore net loss. Amazon continues to offer deep discounts and expand its reach, leveraging strong financial backing from Amazon Inc.
• Flipkart Internet: Backed by Walmart Inc, Flipkart posted a ₹2,358 crore loss on ₹17,407.3 crore revenue (FY23-24), with Walmart funding further expansion.
• Eternal (formerly Zomato): Eternal’s quick commerce business recorded ₹5,206 crore revenue (FY24-25), with a segment EBITDA of -₹21 crore.
• Zepto: India’s largest quick-commerce platform, reported revenue of ₹4,454 crore (FY23-24), with $1.95 billion raised from investors.
• Swiggy Instamart: Swiggy’s quick-commerce division generated ₹2,130 crore revenue (FY24-25) but faced ₹1,896 crore EBITDA losses, with increasing borrowings.

Omnichannel & Brick-and-Mortar Retail Giants

• Reliance Retail: A subsidiary of Reliance Industries, with ₹290,979 crore net revenue (FY25), EBITDA of ₹24,265 crore, and PAT of ₹12,392 crore. Reliance’s fashion, consumer electronics, grocery, and lifestyle brands, such as AJIO, Tira, Campa, operate across brick-and-mortar and omnichannel models.
• Avenue Supermarts: Backed by Radhakrishna Damani, Avenue Supermarts revolutionized value-for-money shopping in India nearly two decades ago. After an extended phase of rapid expansion, the company has shifted focus towards strengthening its presence rather than expanding into new states. In FY24-25, it added 50 new stores, consolidating its footprint within existing regions. The company’s online delivery service, DMart Ready, was introduced in only two new cities—Nashik and Amritsar. DMart continues to maintain a diverse product portfolio, covering every segment where Vishal Mega Mart competes.
• Trent: A Tata Group company, engaged in apparel, staples, and FMCG, with ₹17,135 crore revenue (FY25) and ₹2,030 crore PAT, backed by strong in-house brands.
• Spencers Retail: A RP-Sanjeev Goenka Group company, reported ₹1,995 crore revenue (FY25) but incurred a ₹347 crore loss, facing ₹900 crore borrowings & ₹650 crore lease liabilities.

Value & Budget Retailers

• V2 Retail: Founded by Ram Chandra Agarwal, V2 Retail is regaining market presence after losing Vishal Mega Mart branding. Provisional FY25 revenue: ₹1,885 crore (+62% YoY), expanding aggressively in the mid & low-income consumer segment.
• V-Mart Retail: Recorded ₹3,254 crore revenue (FY25), ₹46 crore profit, operating 497 stores (mainly in Tier-3 & Tier-4 cities). The company is expanding its fashion brands Limeroad & Unlimited and strengthening its online presence.
• Baazar Style Retail: A regional player in apparel & general merchandise, reporting ₹1,344 crore revenue & ₹15 crore profit (FY25). Most stores are in Eastern India, with West Bengal (77), Assam (34), and Odisha (34) locations. Private labels contributed 47% to revenue.

Category-Specific Retailers

• FirstCry: Specializes in kids & infant products, reporting ₹5,729 crore revenue (first 9 months of FY25). The company is now profitable, operating on COCO (Company Owned, Company Operated) and FOFO (Franchise Owned, Franchise Operated) models. 78% GMV comes from online, 22% from physical stores, with 1,136 stores as of December 31, 2025.
• Electronics Mart: A consumer electronics retailer, reporting ₹5,246 crore revenue (first 9 months of FY25), ₹129 crore PAT. Primarily operates in Telangana, Andhra Pradesh, Kerala & Delhi NCR, with 178 multi-brand outlets (MBOs) and 13 exclusive brand outlets (EBOs).
• Nykaa: Specializes in women’s apparel & beauty products, owning multiple in-house beauty brands in a rapidly growing segment.

Conclusion

Vishal Mega Mart’s journey from financial distress to becoming a dominant player in India’s retail sector is a testament to strategic restructuring, market adaptability, and the country’s growing consumption-driven economy. With a well-established footprint in Tier 2 and smaller cities, a strong portfolio of own-brand products, and an omnichannel retail strategy, the company is well-positioned to capitalize on India’s retail expansion.

The company’s impressive revenue and profit growth, healthy margins, and debt-free status make it an attractive player in the retail space. Its consistent store expansion, focus on affordable and quality products, and leadership under Gunender Kapur have further strengthened its market positioning. As India’s retail industry continues to evolve, Vishal Mega Mart stands poised to leverage rising income levels, urbanization, and increasing household consumption, ensuring sustained growth in the years ahead.

Also Read: Trent Limited – The retail biggie from the house of Tatas

Also Read: Avenue Supermarts: Revolutionizing Indian Retail Industry | DMart Success Story

References

• How PEs turned a floundering retail venture into a $6 billion reality, Fortune India, V. Keshavdev, December 18, 2024.
• Vishal Mega Mart’s incredible comeback, Forbes India, Rajiv Singh, August 19, 2019.
• How a $6 Billion Retail Giant is Making Aspirational Fashion Accessible Across India, YourStory, Nucleus_AI, February 3, 2025
• Vishal Mega Mart will focus on quick commerce expansion, says CEO, CNBCTV18,  Surabhi Upadhyay,  Prashant Nair, and  Nigel D’Souza
• V2 Retail page on BSE India website
• Red Herring Prospectus of Vishal Mega Mart – Final Offer Document, SEBI website
• Vishal Mega Mart page on Screener.in
• Vishal Retail’s fall taught Ram Chandra Agarwal some tough lessons, Business Today, Sunny Sen, February 5, 2012.
• TPG, Shriram Group acquire Vishal Retail for Rs70 crore, Mint, Sapna Agarwal, March 14, 2011.
• Vishal Mega Mart page on MoneyControl
• Partners Group Global Value SICAV, Semi-Annual Report 2024
• Vishal Mega Mart Earnings Presentation for Q4FY25 and FY25