V2 retail has delivered impressive Q3FY26 results, demonstrating the strength of its value-fashion retail model and aggressive expansion strategy. The company reported standalone revenue of ₹927.00 crores for Q3FY26, marking a substantial 57% year-on-year growth from ₹591.00 crores in Q3FY25, showcasing sustained high-double-digit growth on an already elevated base.

Financial Performance Highlights

The company's financial metrics for Q3FY26 reflect strong operational execution across multiple parameters:

The company achieved a normalized same store sales growth of 12.80%, adjusted for the Durga Puja festival shift from Q3 to Q2FY26. The cumulative SSSG for Q2 and Q3FY26 stood at 10.40%, with cumulative sales growth of 68% during this period. The reported same-store sales growth was 2.00% on a year-on-year basis, indicating stable performance from existing stores despite challenging consumption environment in parts of the retail sector.

Aggressive Store Expansion Strategy

V2 Retail's expansion momentum remained robust during Q3FY26, with the company successfully adding 35 new stores during the quarter. This strategic expansion focused primarily on consumption-driven demand in Tier 2 and Tier 3 cities, strengthening the company's presence in high-growth markets.

The monthly sales per square feet reached ₹1,032.00 during Q3FY26, indicating faster ramp-up and improving productivity of recent store additions across the expanded network. The expansion was primarily targeted at Tier 2 and Tier 3 cities, in line with the company's strategy to tap consumption-driven demand in smaller towns and emerging urban centres.

Nine-Month Performance Overview

The nine-month period ended December 31, 2025 reinforced the company's strong growth trajectory and operational efficiency:

The company added a net 105 new stores with only one closure during the nine-month period, demonstrating the success of its site selection and market entry strategies.

Market Performance and Operational Excellence

V2 Retail's performance was supported by data-led assortment curation and high sell-through rates, enabling the company to maintain healthy margins with minimal markdowns. The optimized inventory management resulted in faster churn and reduced aged stock, ensuring store shelves remained aligned with prevailing seasonal trends.

The encouraging performance of new stores in non-core territories including Maharashtra, Punjab, Rajasthan, and South India has strengthened management confidence in maintaining an aggressive expansion trajectory. This geographic diversification validates the portability of the company's "Value and Variety" model across different markets and consumer segments.

The shares ended 0.40% lower at ₹2,440.00, reflecting market consolidation despite the strong operational performance. The company's transformation from a regional presence to a national footprint continues to gain momentum, with the scalability of its value-fashion model being demonstrated through consistent performance across diverse geographic markets and store formats.

V2 Retail Limited , a prominent player in the value retail segment, has reported robust financial results for the second quarter of fiscal year 2026, showcasing significant growth and ambitious expansion plans.

Financial Highlights

V2 Retail delivered impressive quarterly results, with revenue surging by 86% year-on-year to INR 708.60 crores. The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a remarkable growth of 465% to INR 44.40 crores on a pre-IndAS basis.

The company's gross margin improved from 27.20% to 28.00% compared to the same quarter last year, indicating better operational efficiency.

Store Expansion

V2 Retail has been aggressively expanding its retail footprint:

• Opened 43 new stores during Q2 FY26
• Total store count reached 259 stores
• Retail space expanded to 28 lakh square feet
• Added 16 more stores post Q2, bringing the current total to 275 stores

Revised Expansion Targets

The company has raised its guidance for new store openings:

• Increased target from 100 to 130 new stores for the current fiscal year
• Plans to open 150 stores in the next fiscal year

Same-Store Sales Growth

• Reported Same-Store Sales Growth (SSSG) for Q2 stood at 23.40%
• Normalized SSSG, adjusted for the Durga Puja shift, was 10.30%
• H1 FY26 SSSG was 13.30%

Management Commentary

Akash Agarwal, Director and CEO of V2 Retail, commented on the results: "We are very pleased to report a very robust performance for the second quarter of FY '26, reflecting the strong momentum across our business. With 86% year-on-year revenue growth, we continue to substantially outpace the broader market while demonstrating the scalability, resilience and execution strength of our operating model even on a high comparison base."

Future Outlook

V2 Retail remains optimistic about its growth trajectory, citing:

• Strong customer response to its product portfolio
• Strategic expansion into underserved rural markets
• Deeper penetration in Tier 1 and Tier 2 cities
• Focus on building a demographically diverse customer base

The company aims to maintain its pre-IndAS EBITDA margin guidance of around 8% for the next 2-3 years, despite the rapid expansion, due to the impact of new stores which typically start at 70% of the sales efficiency of mature stores.

Challenges and Strategies

Key focus areas for V2 Retail include:

1. Inventory management: Implementing strict checks and balances to minimize slow-moving stock
2. Data-driven decision making: Using data analytics for assortment planning and design
3. Location selection: Multi-layered approval process for new store locations
4. Talent retention: Implementing retention bonuses and performance-based incentives

As V2 Retail continues its aggressive expansion, the company remains focused on maintaining operational efficiency, leveraging data-driven insights, and capitalizing on the growing demand in the value retail segment across India.

Note: All financial figures are based on pre-IndAS accounting standards as reported by the company.