V2 Retail posted a significant jump in profitability for the first quarter of FY27, with consolidated net profit rising 70% year-on-year to ₹41.9 crore. The growth was underpinned by robust top-line expansion, as revenue climbed 58% to ₹997.2 crore from ₹632.2 crore in the corresponding period last year. The Board of Directors approved these unaudited financial results on August 13, 2026.

Operating performance also strengthened, with EBITDA increasing 60% to ₹139.5 crore from ₹87.2 crore. The company reported a gross profit of ₹285.0 crore, reflecting a gross margin of 28.6%, compared to 29.5% in the prior year period.

Financial Performance

The company’s financial results for the quarter reflect strong volume growth of 56% and robust price realization gains. Consolidated revenue stood at ₹997.2 crore, while consolidated net profit attributable to owners was ₹41.9 crore. Standalone metrics mirrored this trend, with standalone EBITDA rising 55% to ₹1.4 billion (approximately ₹140 crore) and standalone net profit rising 51% to ₹419 million (approximately ₹41.9 crore).

Store Expansion and Operational Metrics

As on June 30, 2026, the company operated 381 stores with a total retail area of approximately 40.7 lakh sq. ft. across 25 states and one Union Territory. During Q1FY27, the company opened 57 stores and closed one, resulting in a net addition of 56 stores. Subsequently, the company crossed the milestone of 400 stores nationwide.

Operational efficiency remained strong, with same-store sales growth (SSSG) standing at approximately 7.5% for the quarter. Full-price sales contributed 90% of total revenue, indicating healthy demand without heavy reliance on discounts. The per square foot (PSF) revenue for Q1FY27 stood at ₹886 per month.

Key Corporate Developments

Alongside the financial results, the Board announced key leadership appointments effective August 13, 2026:

• Manu Agarwal appointed as President – Buying & Merchandising and Senior Management Personnel. With approximately 25 years of experience, he previously held senior roles at Aarkey Retail Private Limited.
• Dinesh Malpani appointed as President – Operations and Senior Management Personnel. An ISB alumnus with 30 years of retail experience, he formerly served as CEO at Jubilant Retail and Sabka Bazaar.

Additionally, during June 2026, the company acquired inventory, property, plant, and equipment pertaining to 12 stores from M/s Aarkey Retail Private Limited, along with related lease rights and obligations.

Management Commentary

Ram Chandra Agarwal, Chairman & Managing Director, stated that the company continues to deliver exceptional growth momentum, achieving revenue growth of 58% alongside maintaining healthy returns. He highlighted that consumption is expanding beyond metros, organized retail is gaining share, and smaller cities are becoming more connected and willing to spend on better products. Agarwal emphasized the company’s disciplined approach to expand the network, protect store economics, and manage working capital prudently.

What the Numbers Show

While both revenue and EBITDA expanded at healthy double-digit rates, the EBITDA margin improved slightly from 13.8% in the prior year period to 14.0% currently. This divergence suggests that despite a slight compression in gross margin (from 29.5% to 28.6%), operating leverage or cost controls allowed the company to maintain stable EBITDA margins. The net profit growth outpacing EBITDA growth indicates favorable dynamics in other income or tax provisions relative to the prior year.

Auditor’s Note on Advances

The independent auditors, Singhi & Co., drew attention to an advance amounting to ₹1,206.23 million outstanding since April 2019 with Bennett, Coleman and Co. Limited (BCCL). The underlying advertisement contract has been extended until March 31, 2028. Management considers this balance fully recoverable against future advertisement services within the extended contract period.

V2 Retail has opened its 400th store, marking a significant milestone in its retail expansion strategy. The company disclosed this achievement in an intimation filed with stock exchanges on August 11, 2026, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The opening underscores the brand’s rapid scaling capabilities and growing footprint across India.

In the current financial year alone, V2 Retail added 75 new stores on a net basis. This aggressive addition rate highlights the company's execution strength and its ability to replicate its business model efficiently. The expansion is driven by a focus on building a trusted brand that resonates with customers while maintaining operational excellence.

Expansion Details

The company’s growth trajectory is evident in its recent store additions. Below is a summary of the key operational milestones:

The 400th store joins an existing network spread across various Indian states, including Andhra Pradesh, Himachal Pradesh, and Jammu & Kashmir. This geographic diversification indicates a robust pan-India presence rather than concentration in a single region.

Strategic Focus

Ram Chandra Agarwal, Founder of V2 Retail, emphasized that the milestone reflects the trust of consumers across Bharat. He stated that the company remains committed to pursuing growth in a sustainable, responsible, and inclusive manner. The core objective is to ensure that great fashion remains accessible to everyone, fostering a culture of excellence through customer trust.

Management attributed this success to the collaborative spirit of the team and the support of stakeholders, partners, and employees. The company views this not merely as an increase in physical footprint but as a step toward enhancing value for all stakeholders involved in its journey.

What the Numbers Show

The addition of 75 net stores in a single financial year represents a substantial acceleration in store rollout. When viewed against the total count of 400, these new openings constitute approximately 18.75% of the entire network. This high proportion of recent additions suggests that a significant portion of V2 Retail’s current revenue-generating assets are relatively new, potentially indicating lower maturity in terms of same-store sales history for nearly one-fifth of its portfolio. However, it also signals strong recent capital deployment and market penetration efforts.