V2 Retail Limited filed its Business Responsibility and Sustainability Report for the financial year 2025-26 with the stock exchanges on July 08, 2026. The report outlines the company's environmental, social, and governance (ESG) performance, including corporate social responsibility (CSR) expenditures and compliance status. The filing is part of the company's annual report submission for the period.

The company reported spending ₹72.50 lakh on CSR activities during the financial year. These funds were allocated to two implementing agencies: Shiva Trust received ₹48,00,000 to support higher education in fields such as Pharmacy and Nursing, while Human Welfare Foundation received ₹24,50,000 for welfare activities for underprivileged sections of society.

Operations and Workforce

V2 Retail operates a network of 325 stores across 25 states in India, serving Tier II and Tier III cities with a focus on value fashion. The company reported a total workforce of 10,561 permanent employees, comprising 8,226 male and 2,335 female staff members. There were no workers reported on the rolls during the financial year.

Regulatory Compliance

The report disclosed that the company paid a monetary penalty of ₹20,000 to the National Stock Exchange and Bombay Stock Exchange. The fine was imposed due to a gap exceeding the prescribed limit between two Board meetings, which was not in compliance with the Companies Act, 2013. The company stated that the penalty was paid within the prescribed timelines.

Governance and Sustainability

The Board of Directors and Key Managerial Personnel undertook various training programs during the year, with 100% coverage for the Board and Key Managerial Personnel. The company confirmed that it has not yet established specific time-bound sustainability commitments or targets but remains committed to integrating sustainability considerations into its business strategy.

Regarding environmental disclosures, the company stated that it has not formally measured or reported its Scope 1 and Scope 2 greenhouse gas emissions. It is currently evaluating systems to capture and report this data in alignment with recognized frameworks. The company also noted that it does not maintain a formalized system for quantifying waste generation but is evaluating mechanisms to monitor and report this data in the future.

V2 Retail Limited reported a 125% surge in consolidated net profit to ₹162 crore for the financial year ended March 31, 2026, driven by robust operational expansion and improved profitability. The value fashion retailer’s revenue from operations increased 63% to ₹3,067 crore, marking the second consecutive year of growth above 60%. The company’s EBITDA rose 77% to ₹455 crore, with margins expanding to 14.9%.

The company significantly scaled its physical presence during the year, adding 136 new stores while closing only three underperforming locations. This expansion brought the total store count to 325, spread across 25 states and 1 Union Territory. The retail footprint now covers approximately 35.35 lakh sq. ft., an increase of 20.27 lakh sq. ft. over the previous year. Uttar Pradesh, Bihar, and Odisha remained the core markets, while Maharashtra, Punjab, and Gujarat emerged as proven territories.

Financial Performance

The company’s return on equity stood at 26% for the year, even after raising ₹400 crore through a Qualified Institutions Placement in November 2025. Same-store sales growth was recorded at 8.6%, while volumes grew 47%. The average selling price increased 10% to ₹327, reflecting better product depth and assortment. Approximately 90% of sales were at full price, indicating strong pricing power and inventory management.

Strategic Expansion

V2 Retail’s strategy focused on disciplined expansion into Tier II and Tier III cities. The company plans to open 170-200 new stores in FY 2026-27, aiming to reach a network of approximately 500 stores. This expansion is to be funded through internal accruals and cash on hand, without further market borrowing. The company noted that new stores typically achieve EBITDA positivity from the first month, targeting monthly sales of ₹700-750 per sq. ft. against a breakeven of ₹500.

Governance and Compliance

The company’s statutory auditors, Singhi & Co., issued an unmodified opinion on the financial statements. However, the Secretarial Audit Report noted a gap exceeding the prescribed limit between two Board meetings during the year, which was not in compliance with the Companies Act, 2013. Consequently, both BSE and NSE imposed a penalty of ₹10,000 each on the company for this non-compliance. The management attributed the delay to the non-readiness of financial statements and stated that internal processes have been strengthened to prevent recurrence.