V2 Retail Limited reported a robust performance for Q4 and the full fiscal year 2025-26. The company announced a 60% year-on-year revenue growth in Q4 and achieved a 63% growth for the full year. Key highlights include strategic investments in scaling operations, a significant increase in EBITDA and PAT, and an ambitious store expansion plan. The management expressed confidence in sustaining this momentum, driven by a focus on value fashion and operational efficiency.
V2 Retail Limited Reports Stellar Q4 and FY’26 Financial Results
V2 Retail Limited has announced outstanding financial results for the fourth quarter and the full fiscal year 2025-26. The company showcased strong revenue growth, enhanced profitability, and outlined an aggressive expansion strategy during its recent earnings conference call. The period saw a notable acceleration in growth, underscoring the company’s resilient business model and effective execution.
Key Financial Highlights: Q4 FY’26
The fourth quarter of FY’26 witnessed a substantial 60% year-on-year revenue growth, reaching Rs. 797 crores. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) surged by 89% to Rs. 109 crores, with EBITDA margins improving to 13.7% from 11.6% in the corresponding quarter of the previous year. Profit After Tax (PAT) for the quarter also saw significant growth, rising to Rs. 17.5 crores from Rs. 6.4 crores.
Full Year FY’26 Performance
For the entire fiscal year 2025-26, V2 Retail reported a consolidated revenue growth of 63%, totaling Rs. 3,067 crores. EBITDA for the year stood at Rs. 455 crores, a remarkable 77% increase year-on-year, with EBITDA margins improving to 14.9%. The company achieved a record Profit After Tax (PAT) of Rs. 162 crores for the fiscal year, a substantial 125% jump compared to the previous year.
Store Expansion and Strategic Investments
The company has been actively expanding its store footprint, adding 136 new stores during FY’26, bringing the total store count to 325 stores. The expansion strategy focuses on a balanced mix of rural market entry and deeper penetration in Tier-2 and Tier-3 cities. Looking ahead, V2 Retail plans to open 170-200 new stores in the current year, with a target to reach approximately 500 stores by the end of FY’27. Strategic investments are being made in technology, supply chain responsiveness, and analytics-driven merchandising to support this growth. The company also noted that its current store footprint has crossed 350 stores nationwide.
Operational and Performance Insights
Same-Store Sales Growth (SSSG) for Q4 stood at 7.74%, contributing to a full-year SSSG of approximately 8.6%. Volume growth was a strong 53% in the quarter and 47% for the full year. The company emphasized its focus on maintaining a price-value positioning and a steady refresh of assortments to attract value-conscious consumers. Management reiterated its commitment to maintaining gross margins between 28%-30%, with any raw material price increases to be passed on to customers, impacting MRP by approximately 3%-4%.
Future Outlook and Vision
V2 Retail has a long-term vision to become a top value fashion retailer in India and aims to expand its presence to 2,500 stores. The company is confident in its ability to capture market share in the growing organized retail sector in India. Despite global uncertainties, management expressed optimism about sustained growth, targeting at least 50% revenue growth over the next two years.
Key Operational Updates
Several key operational updates were shared, including the completion of physical verification of property, plant, and equipment, and the write-off of assets valued at Rs. 5.77 crores to resolve an audit qualification. The company is now exclusively focusing on its retail business, moving away from in-house manufacturing. To mitigate potential supply chain disruptions due to geopolitical tensions, safety stock levels were increased in March.
Investor Relations
The company confirmed that it does not have a formal loyalty program but engages with its 8 crore customers through various digital channels and offers gift vouchers. Management also addressed the team’s strength, highlighting that at least six senior members are equipped to handle investor calls in the absence of the CEO. Investor relations advice for further information was directed to Marathon Capital.
Source: BSE
