V2 Retail , a prominent player in the Indian retail sector, has announced an ambitious expansion plan and revised growth expectations, signaling confidence in the company's future prospects.

Increased Store Opening Target

V2 Retail has raised its store opening target from 100 to 125 stores. This significant increase in the expansion plan suggests that the company is bullish on market opportunities and its ability to capture a larger share of the retail market.

Growth Expectations

The company has expressed optimism about its growth trajectory, indicating that it anticipates surpassing its previous same-store sales growth guidance of 8-10%. This upward revision in expectations points to strong performance in existing stores and potentially favorable market conditions.

Revenue Growth Projections

V2 Retail has set an ambitious target for its overall revenue growth. The company aims to achieve approximately 50% revenue growth, which includes:

• 8-10% same-store sales growth
• Additional growth from new store openings

This projection suggests that V2 Retail expects a substantial contribution from its expanded store network, in addition to improved performance from existing outlets.

Market Implications

The company's aggressive expansion plans and optimistic growth projections may indicate:

1. Strong consumer demand in V2 Retail's target markets
2. Effective operational strategies driving same-store sales growth
3. Confidence in the company's ability to successfully execute its expansion plan

Investors and market observers will likely be watching closely to see how V2 Retail implements its ambitious plans and whether it can meet these heightened growth expectations in the coming periods.

V2 Retail Limited , a leading value fashion retailer in India, has reported robust financial results for the first quarter, with plans for significant expansion and a potential qualified institutional placement (QIP) to fuel growth.

Strong Q1 Performance

V2 Retail delivered impressive quarterly results, with revenue soaring 52% year-on-year to ₹632.20 crores. The company's net profit surged 51% to ₹24.70 crores, demonstrating strong earnings momentum. EBITDA grew by 63% to ₹52.50 crores, with margins improving from 7.8% to 8.3%.

Expansion Plans and Store Performance

The company opened 28 new stores during the quarter, bringing its total store count to 216. V2 Retail has ambitious plans to open 100-120 stores, with a long-term goal of becoming a pan-India retailer. The company reported a same-store sales growth (SSSG) of 5%, or 10% on a normalized basis after adjusting for the early Eid shift.

Akash Agarwal, Director and CEO of V2 Retail, stated, "We are operating from a position of strength backed by innovation, executional agility, and the deep trust we have built with millions of customers across the country."

Financial Highlights

Potential QIP and Future Outlook

V2 Retail announced plans for a QIP to accelerate growth, become debt-free, and invest in technology and supply chain infrastructure. The company is targeting a 50% revenue growth going forward, driven by 8-10% same-store sales growth and expansion into new geographies across 25 states.

Agarwal explained the rationale behind the potential fundraise: "It's not out of necessity or weakness. We're doing it from a position of strength. Our business has delivered one of the best quarters in recent history, and it's a proactive move because we want to accelerate our momentum and future-proof our growth."

Operational Efficiency and Inventory Management

The company reported that 92% of total sales came from full-price sales, indicating strong inventory management. V2 Retail is also implementing a hub-and-spoke model to improve supply chain efficiency and reduce inventory at stores.

Competitive Advantage and Future Targets

V2 Retail aims to reach a per square feet sale of ₹1,200 at the national level for both old and new stores combined within the next three years. At this level, the company expects to achieve a pre-Ind AS EBITDA margin of around 11%.

Agarwal emphasized the company's competitive edge: "We are at least 30% to 40% higher in terms of throughput and sales than our competitors. We've never been in this position of strength where we felt that we were strong enough to now open or grow at this speed."

As V2 Retail continues its aggressive expansion strategy, the company remains focused on maintaining its strong performance metrics and capitalizing on the growing value fashion market in India.