Rent and stock options are 36% of Vishal Mega Mart's EBITDA

Companies No. 88 21 October 2026 · 2 min read

Vishal Mega Mart's results for July to September 2026, filed on 21 October, put its EBITDA (profit before interest, tax and depreciation) at ₹412.0 crore, up 4.4%, on revenue of ₹3,398.5 crore, up 14.0%. It runs 844 stores selling clothes, household goods and groceries.

But 36% of that EBITDA is accounting. Under the lease rule, Ind AS 116, store rent is not booked as an expense: it becomes depreciation and interest, both below EBITDA. Count rent and staff stock options as costs, as the company's own operating EBITDA does, and it is ₹262.2 crore, ₹149.8 crore less. Rent is most of that gap: over the half year, stock options were only ₹26.89 crore of ₹307.5 crore.

On that basis, EBITDA grew 3.7% and the margin fell from 8.5% to 7.7%. Sales at stores open 15 months or more rose 5.4%, so newer stores seem to have carried much of the 14% growth.

The company's reason: festivals came 18 days later this year, moving Puja and Dussehra shopping into October to December. It says that took 3-4% off same-store growth, which would have been about 9%, and left fixed costs spread over fewer sales.

Rent is a fixed cost, so it bites harder in a smaller quarter: the gap was 36% in the same quarter last year too, and 32% over this half year. So, in one line: the 12.1% margin in the headline table is 7.7% once the rent is paid.

36% of Vishal Mega Mart's EBITDA is rent and stock options. Reported EBITDA for July to September 2026, in ₹ crore, split in 2. Count rent and stock options as costs and ₹262.2 crore is left.

Rent is most of the gap in Vishal Mega Mart's EBITDA. From reported to operating EBITDA, April to September 2026, in ₹ crore. Stock options take ₹26.89 crore; rent takes the other ₹280.61 crore.

Vishal Mega Mart's sales grew 14%, operating EBITDA 3.7%. Growth on a year ago, July to September 2026, in %. The further down the profit line, the slower the growth.

Sources