The agency has affirmed the company's short-term rating at ‘IND A1+’.

India Ratings and Research stated that the upgrade reflects healthy revenue growth driven by steady same-store sales growth and sustained profit margins in FY26, supported by economies of scale and a rising contribution from private labels.

The ratings continue to draw comfort from the company’s established market position as the leading offline first diversified retailer in the country.

Vishal Mega Mart has a diversified presence pan-India, including Tier I, Tier II cities and towns, and continues to expand with new store rollouts through an asset-light model.

The company’s financial risk profile remains strong, supported by a debt-free balance sheet (excluding lease liabilities), substantial unencumbered liquidity, and robust debt protection metrics.

However, these strengths, have exposure to the susceptibility of operating performance to economic downcycles and inflationary pressures, risks associated to sizeable expansions, and exposure to increasing competition from offline as well as online retailers across segments.

The agency expects the company to maintain its heathy growth trajectory, while sustaining its margins and credit profile over the medium term.

Vishal Mega Mart is a leading retailer offerings products across three major categories: apparel, GM, and FMCG. The company operates a pan-India network of 819 Vishal Mega Mart stores, covering 13.8 million square feet, as on 30 June 2026.