V2 Retail Reports Strong Q2 FY26 Results, Accelerates Store Expansion Plans

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.

Metric	Q2 FY26	YoY Growth
Revenue	INR 708.60 crores	86%
EBITDA (pre-IndAS)	INR 44.40 crores	465%
EBITDA Margin	6.30%	420 bps
PAT	INR 25.30 crores	3,561%

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:

Inventory management: Implementing strict checks and balances to minimize slow-moving stock
Data-driven decision making: Using data analytics for assortment planning and design
Location selection: Multi-layered approval process for new store locations
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.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.09%	+0.59%	+2.90%	+23.48%	+97.17%	+3,570.77%

V2 Retail , a prominent player in the Indian retail sector, has reported a remarkable turnaround in its financial performance for the second quarter, showcasing significant improvements across key metrics.

Financial Highlights

Metric	Q2 (Current Year)	Q2 (Previous Year)	Year-on-Year Change
Net Profit	₹181.00 million	₹(25.10) million	Turned Profitable
Revenue	₹7.05 billion	₹3.80 billion	+85.5%
EBITDA	₹859.00 million	₹307.80 million*	+179.1%
EBITDA Margin	12.18%	8.10%	+408 bps

*Previous year EBITDA calculated based on the given margin

Profitability Turnaround

V2 Retail has demonstrated a significant improvement in its bottom line, posting a net profit of ₹181.00 million in the second quarter. This marks a substantial turnaround from the ₹25.10 million loss reported in the same period last year. The company's ability to transition from a loss-making position to profitability indicates effective cost management and improved operational efficiency.

Revenue Growth

The company's top-line performance has been equally impressive, with revenue surging to ₹7.05 billion, up from ₹3.80 billion in the corresponding quarter of the previous year. This represents a robust year-on-year growth of 85.5%, reflecting strong consumer demand and potentially successful expansion strategies.

Operational Performance

V2 Retail's operational performance, as measured by EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), has shown remarkable improvement. The EBITDA more than doubled to ₹859.00 million, compared to an estimated ₹307.80 million in the same quarter last year (based on the provided margin data).

Margin Expansion

The company has also achieved significant margin expansion. The EBITDA margin improved to 12.18% from 8.10% in the previous year, representing an increase of 408 basis points. This margin improvement suggests enhanced operational efficiency and potentially better inventory management or pricing strategies.

The strong financial results across revenue, profitability, and margins indicate that V2 Retail may be successfully navigating the competitive retail landscape in India. The company's ability to significantly improve its performance year-over-year could be attributed to factors such as strategic expansion, improved product mix, or effective cost control measures. However, investors and analysts may want to look out for more detailed information from the company regarding the specific drivers behind this impressive turnaround.