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.

V2 Retail Limited , one of India's leading value fashion retailers, has reported a robust performance for the first quarter, with significant growth in revenue and profitability. The company also unveiled ambitious expansion plans, including the opening of over 25 new stores and the launch of private label products.

Strong Financial Performance

For Q1, V2 Retail recorded a substantial 52% year-on-year increase in revenue, reaching ₹632.20 crore. This growth was accompanied by a 57% rise in EBITDA to ₹87.20 crore, demonstrating improved operational efficiency. The company's net profit also saw a significant boost, surging 51% to ₹24.70 crore compared to the same quarter last year.

Key Financial Highlights

Expansion and Strategic Initiatives

V2 Retail has outlined several strategic initiatives to drive profitable growth:

1. Store Expansion: The company plans to open over 25 new stores, expanding its retail footprint.
2. Private Label Launch: Introduction of private label products to enhance product offerings and margins.
3. Value Fashion Focus: Continued emphasis on the value fashion segment, catering to the neo-middle class population.
4. Operational Improvements: Recent back-end operational changes are expected to contribute to bottom line recovery.

Operational Highlights

• Total Store Count: 216 stores across 21 states and more than 100 cities
• Retail Area: Approximately 23.49 lakh sq. ft.
• Same Store Sales Growth (SSG): 5% (10% on a normalized basis)
• Volume Growth: 50% year-on-year

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, "With 28 new stores added in the current quarter and a robust pipeline of upcoming locations, our store expansion momentum remains strong. This positions us to set new benchmarks in both customer satisfaction and business performance in the quarters ahead."

Future Outlook

V2 Retail's strong Q1 performance and aggressive expansion plans indicate a positive outlook for the company. The focus on value fashion, coupled with strategic store expansion and the introduction of private labels, is expected to drive growth in the coming quarters. The company's efforts to improve same-store sales performance and operational efficiency are likely to contribute to sustained profitability.

As V2 Retail continues to expand its presence in Tier II and Tier III cities while deepening its foothold in Tier I markets, it is well-positioned to capitalize on the growing demand for affordable, trend-forward fashion in India's evolving retail landscape.