V2 Retail Limited announced robust financial results for Q3 FY2026, achieving 57% year-on-year revenue growth to reach Rs. 929 crores. EBITDA grew 56% YoY to Rs. 174 crores, while PAT nearly doubled, increasing 99% YoY to Rs. 102 crores, surpassing the entire previous fiscal year’s PAT. The company expanded its network by adding 35 new stores in the quarter, bringing the total count to 294 stores.
V2 Retail Q3 FY2026 Performance Summary
V2 Retail Limited reported a very strong quarter (Q3 FY2026), demonstrating continued momentum across its business, largely driven by expansion and operational efficiency. The company delivered 57% year-on-year revenue growth, outpacing the broader market.
Key financial highlights for the 3rd Quarter (ending December 31, 2025):
- Revenue: Grew 57% YoY to Rs. 929 crores.
- EBITDA: Stood at Rs. 174 crores (up 56% YoY), with an EBITDA margin of 18.7%.
- PAT: Reached Rs. 102 crores, representing a 99% YoY growth, notably surpassing the full-year PAT of FY 2025.
- SSSG: Reported like-for-like sales growth (SSSG) for Q3 stood at 2%, while normalized SSSG adjusted for the Durga Puja shift was 12.8%.
Nine-Month FY2026 Performance
For the first nine months of FY 2026, the performance was equally strong:
- Revenue Growth: Increased 64% to Rs. 2,270 crores.
- EBITDA Growth: Grew 73% YoY to Rs. 346 crores, improving the EBITDA margin to 15.3%.
- PAT Growth: Registered a very strong 119% YoY growth, reaching Rs. 144 crores.
- SSSG: Same store sales growth for the nine months stood at approximately 8.6%.
- Return on Equity (ROE): Improved to 24.5%.
Pre-IndAS Financial Highlights (Q3 FY2026)
Focusing on the company’s preferred operational metric (pre-IndAS):
- Revenue grew 57% YoY to Rs. 929 crores.
- Gross margin improved to 32.4% (from 32% last year).
- EBITDA was Rs. 126 crores (up 50% YoY) with a 13.5% margin.
- PAT was Rs. 82 crores (up 47% YoY).
Expansion and Operational Updates
Expansion remained a core focus, with 105 new stores added during the first nine months, bringing the total count to 294 stores and approximately 31.9 lakh square feet of retail space.
CEO Mr. Akash Agarwal highlighted several key updates:
- The company successfully raised Rs. 400 crores through a QIP with marquee investors.
- Physical verification of assets was completed, leading to the write-off of assets valued at Rs. 5.06 crores, which resolved an earlier audit qualification.
- A reassessment of lease terms under IndAS 116 resulted in an exceptional gain of Rs. 27.69 crores (net of tax).
- The management guided for an 8% to 10% SSSG target for the next year, alongside adding 150 more stores next year.
- Newer stores (FY2025 and FY2026 cohorts) are performing at Rs. 730 – Rs. 740 per square feet of sale, aiming to scale up to the mature store level of Rs. 1,200 PSF within two to three years.
Working Capital and Margins Strategy
Management detailed strategies around working capital and margins. Due to the QIP proceeds, the company prepaid approximately Rs. 300 crores to vendors, availing a 1.5% per month bill discount, which impacted working capital days (increasing them from 37 to 69 days). This discount contributes to the gross margin.
The gross margin strategy is by design, focusing on passing benefits to the consumer to maintain competitive pricing. The target gross margin going forward is 28% – 29%, with margin expansion expected primarily through operating leverage and higher sales per square foot.
Future Outlook and Store Strategy
The expansion focus is a balanced mix of rural market entry and deeper penetration in Tier-II/III cities. Geographically, 60% – 70% of new stores are expected to come in existing strong clusters, with the remainder opening in new, high-performing geographies.
Regarding the omnichannel plan, the investment will be low-cost, utilizing store inventory as dark warehouses, aiming for a channel sale contribution of around 5% when mature. Employee expenses per square foot are expected to trend down towards Rs. 15 – Rs. 16 in the future.
Source: BSE
