V2 Retail delivered exceptional financial performance in Q3 FY26, showcasing the strength and scalability of its value-fashion retail model. The company's robust growth trajectory continued with impressive revenue expansion and strong same store sales performance.

Financial Performance Highlights

The company's standalone revenue performance demonstrated remarkable growth momentum during the quarter:

The 57% year-on-year revenue growth was achieved on an already high base from FY25, highlighting the company's ability to maintain strong expansion momentum. This sustained high-double-digit revenue growth underscores the effectiveness of V2 Retail's business strategy and market positioning.

Same Store Sales Growth Analysis

The company's same store sales growth (SSSG) performance reflected both seasonal factors and underlying business strength. V2 Retail achieved a normalized SSSG of 12.8% when adjusted for the Durga Puja festival shift from Q3 to Q2 FY26. This adjustment provides a clearer picture of the company's operational performance by accounting for the timing differences in the festive season.

The cumulative performance metrics for the combined Q2 and Q3 FY26 period showed:

Business Model Scalability

The financial results demonstrate the scalability of V2 Retail's value-fashion model, with the company successfully maintaining growth momentum despite operating from a high base. The sustained performance indicates strong consumer acceptance of the company's product offerings and effective execution of its retail strategy.

The reported SSSG of 2% year-on-year, while lower than the normalized figure, still represents positive growth when considering the impact of festive season timing shifts. The significant difference between reported and normalized SSSG highlights the importance of seasonal factors in retail performance evaluation.

V2 Retail has reported significant expansion progress with the addition of 105 new stores during the nine-month period of FY26. The retail chain is strategically positioning itself to capitalize on growth opportunities in India's emerging markets through targeted geographical expansion.

Strategic Focus on Tier 2 and 3 Markets

The company's expansion strategy demonstrates a clear focus on high-growth Tier 2 and 3 areas, recognizing the untapped potential in these markets. This approach aligns with the broader retail industry trend of moving beyond metropolitan areas to capture emerging consumer demand in smaller cities and towns.

Geographical Expansion Overview

V2 Retail's expansion efforts are concentrated across key Indian states that offer substantial growth potential:

Market Positioning Strategy

The company's decision to target Tier 2 and 3 markets reflects a strategic approach to retail expansion. These markets typically offer lower operational costs, reduced competition, and growing consumer spending power. By establishing a presence in Maharashtra, Punjab, Rajasthan, and South India, V2 Retail is positioning itself to benefit from the economic development and rising disposable incomes in these regions.

Expansion Impact

The addition of 105 new stores represents a substantial increase in V2 Retail's physical footprint across India. This expansion strategy indicates the company's confidence in the retail sector's growth prospects and its ability to successfully operate in diverse geographical markets. The focus on Tier 2 and 3 areas suggests a long-term vision to build market presence before these regions become highly competitive.