V2 Retail Limited , a leading value retail chain in India, has announced a significant fundraising initiative alongside impressive first-quarter results. The company's board of directors has approved a plan to raise up to Rs. 400 crores through various financial instruments, signaling a robust growth strategy.

Fundraising Initiative

The board of V2 Retail has given the green light to raise funds up to Rs. 400 crores through a mix of securities, including equity shares and other eligible instruments convertible into equity. This fundraising effort will be executed through qualified institutional placements, public offerings, private placements, or preferential allotments, to be conducted in one or more tranches.

To oversee the process, the board has constituted a dedicated committee to handle all matters related to the proposed fundraising. The initiative now awaits shareholder approval and other necessary regulatory clearances.

Strong Q1 Performance

Coinciding with this fundraising announcement, V2 Retail has reported impressive financial results for the first quarter:

• Gross margin improved to 29.5% compared to 29.0% in the same quarter of the previous fiscal year

Operational Highlights

V2 Retail's operational performance for Q1 showcased significant growth:

• The company expanded its retail footprint, operating 216 stores across 21 states and more than 100 cities
• 28 new stores were opened during the quarter
• Same-Store Sales Growth (SSSG) stood at 5%, with strong double-digit growth in May and June
• Volume growth was robust at 50%
• Full-price sales contributed 92% of total sales

Management Commentary

Ram Chandra Agarwal, Chairman & Managing Director of V2 Retail, commented on the results: "As we step into this fiscal year, we are energized by strong tailwinds — powered by innovation, executional agility, and enduring consumer trust. Our relentless focus on customer-centricity, backed by advanced data analytics, trend-led merchandising, and agile supply chain execution, uniquely positions us to lead the next wave of growth in India's value fashion market."

He further added, "By consistently offering fresh, trend-aligned assortments, upholding uncompromising quality, and delivering exceptional value for money, we have driven robust growth across our store network. Our deep understanding of regional consumer preferences, coupled with localized assortments and personalized in-store experiences, has provided a distinct competitive advantage."

The company's strategic expansion into underserved rural markets, while deepening its presence in Tier I and Tier II cities, has helped build a broad and demographically diverse customer base.

With the approved fundraising plan and strong Q1 performance, V2 Retail appears well-positioned to capitalize on growth opportunities in India's dynamic retail landscape. The company's focus on value fashion, coupled with its expanding store network and improving financial metrics, sets a positive tone for its future prospects.

Investors and market watchers will be keenly observing how V2 Retail utilizes the proposed funds to fuel its expansion plans and enhance its market position in the competitive value retail segment.

V2 Retail Limited , one of India's leading value retail chains, has announced a significant development in its capital raising efforts along with impressive first-quarter results for the fiscal year 2026.

Funding Approval

The company has received approval to raise funds up to Rs 400.00 crore (4 billion rupees). This funding approval represents a substantial capital raising opportunity for V2 Retail, potentially bolstering its financial position and supporting future growth initiatives.

Q1 FY26 Financial Highlights

V2 Retail has reported robust financial performance for the quarter ended June 30, 2025:

• Revenue Surge: The company's consolidated revenue from operations soared to Rs 632.22 crore, marking a remarkable 52% year-on-year growth.
• Profitability: Net profit for Q1 FY26 stood at Rs 24.66 crore, showcasing a significant 51% increase compared to the same quarter last year.
• EBITDA Growth: The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) climbed to Rs 87.20 crore, representing a 57% year-on-year rise.
• Margin Improvement: EBITDA margin improved to 13.80% in Q1 FY26, up from 13.40% in Q1 FY25.

Operational Performance

V2 Retail's operational metrics also showed positive trends:

• Store Expansion: As of June 30, 2025, the company operates 216 stores across 21 states and more than 100 cities, with a total retail area of approximately 23.49 lakh square feet.
• New Store Openings: In Q1 FY26, V2 Retail opened 28 new stores while closing 1 store.
• Same-Store Sales Growth (SSSG): The company reported a 5% SSSG for the quarter, with strong double-digit growth in May and June, offsetting a temporary dip in April due to an early Eid shift.
• Volume Growth: V2 Retail achieved a robust volume growth of 50% in Q1 FY26.

Management Commentary

Ram Chandra Agarwal, Chairman & Managing Director of V2 Retail, commented on the results: "As we step into FY26, we are energized by strong tailwinds — powered by innovation, executional agility, and enduring consumer trust. Our relentless focus on customer-centricity, backed by advanced data analytics, trend-led merchandising, and agile supply chain execution, uniquely positions us to lead the next wave of growth in India's value fashion market."

He further added, "By consistently offering fresh, trend-aligned assortments, upholding uncompromising quality, and delivering exceptional value for money, we have driven robust growth across our store network."

Future Outlook

With the recent funding approval and strong Q1 performance, V2 Retail appears well-positioned for continued growth. The company's strategic expansion into underserved rural markets, coupled with its deepening presence in Tier I and II cities, has helped build a broad and demographically diverse customer base.

As V2 Retail continues its store expansion momentum and focuses on customer satisfaction, investors and industry observers will be watching closely to see how the company leverages its recent funding approval to drive further growth and market penetration in the competitive Indian retail landscape.