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.

V2 Retail reported a 58% year-on-year increase in standalone revenue to ₹997 Cr in Q1FY27, compared to ₹630 Cr in the corresponding quarter of the previous year. The company attributed this growth to the strength of its strategic priorities and operational excellence, which helped sustain momentum on an elevated base. The value-fashion retailer also delivered a robust 7.5% Same-Store Sales Growth (SSSG) during the quarter, underpinned by a data-driven assortment strategy and a product-first philosophy. These initiatives led to higher sell-through rates and lower markdowns, enabling the company to maintain margin discipline while reinforcing the quality of its revenue expansion.

Operational Metrics and Store Productivity

Operational efficiency improved as Monthly Sales per Square Foot (PSF) reached ₹886 in Q1FY27. This metric reflects strong store productivity despite a higher proportion of newly opened stores in the network. The company credited sharper merchandising, faster inventory replenishment, and disciplined inventory management for driving this improvement.

Network Expansion Strategy

V2 Retail focused its expansion efforts on high-potential Tier 2 and Tier 3 consumption markets during the quarter. The company successfully opened 57 new stores and closed 1 store. As of June 30, 2026, the retail footprint expanded to approximately 40.7 lakh sq. ft. across 381 stores, deepening its pan-India presence.

The following table summarises the key financial and operational metrics for the quarter:

The standalone revenue from operations for the quarter ended June 30, 2026, is subject to limited review or audit by the Statutory Auditors of the Company. This disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.