Bengaluru, Oct. 21 -- Vishal Megamart Ltd's September-quarter results and new initiatives raise questions about how hard the value retailer is working to defend its value proposition while pursuing growth.

The company is keeping entry-level prices unchanged while concentrating price increases at higher price points. It is also piloting Belong & Co., a standalone premium apparel brand, and testing smaller-format stores even as it continues expanding its larger-format network. The moves signal an effort to tap new customer segments and markets while protecting affordability.

The strategy comes as the retailer faces pressure on profitability and a muted market reaction to its latest results. Revenue rose 14% year-on-year to Rs.3,398.5 cror...