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.

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 including Maharashtra, Punjab, Rajasthan, and South India.

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 across diverse geographic markets.

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, positioning the retailer for sustained growth in high-potential Tier 2 and Tier 3 markets.