V2 Retail: Business Overview & Financial Analysis
V2 Retail is a value fashion retail enterprise in India, headquartered in New Delhi. Promoted by Ram Chandra Agarwal and family, the company operates retail department stores providing apparel, footwear, and lifestyle accessories to Tier-2, Tier-3, and Tier-4 commercial markets across 25 states.
Store Network & Retail Footprint Scale of V2 Retail (Q1 FY2027)
V2 Retail manages an expanding retail store network focused on value fashion consumers across semi-urban commercial belts.
- Total Operational Retail Stores Base – 381 active stores
- Total Retail Area Footprint – 40.7 lakh square feet
- Geographic Presence Reach – 25 States and Union Territories across 300+ cities
- Quarterly Net Store Additions (Q1 FY2027) – 57 new store openings
- Core Operational Markets Share – Uttar Pradesh, Bihar, and Odisha
Store openings expanded total retail area to 40.7 lakh square feet as of June 30, 2026. Penetration across Tier-2 and Tier-3 commercial towns strengthens brand coverage across regional consumer markets.
Product Category Revenue Mix of V2 Retail (FY2026)
V2 Retail structures its retail merchandise turnover across family wear, children's apparel, and everyday lifestyle accessories.
- Men's Wear Category Share – 41.0% of Total Operating Revenue
- Women's Wear Category Share – 28.0% of Total Operating Revenue
- Kids' Wear Category Share – 24.0% of Total Operating Revenue
- Lifestyle & Accessories Category Share – 7.0% of Total Operating Revenue
- Full-Price Sales Contribution – ~90.0% of overall dispatches
- Average Selling Price (ASP) – Rs 327 per apparel unit
Men's wear and women's wear represent nearly seven-tenths of total retail sales, supported by seasonal merchandise updates. Full-price sales contributing 90% of dispatches reflects inventory clearance efficiency without steep markdown discounting.
Key Operational & Retail Store Metrics of V2 Retail (Q1 FY2027)
V2 Retail tracks same-store sales growth, sales density per square foot, volume dispatches, and inventory turnover across its retail network.
- Same-Store Sales Growth (SSSG) Rate – 7.5% year-on-year
- Sales Volume Dispatch Growth Rate – 56.0% year-on-year increase
- Monthly Sales Density Realisation – Rs 886 per square foot
- New Store Sales Productivity Target – Rs 700–750 per square foot
- Retail Store Breakeven Benchmark – Rs 500 per square foot per month
Same-store sales growth reached 7.5% in Q1 FY2027, driven by a 56% surge in total garment dispatch volumes. New retail stores achieve monthly operational EBITDA breakeven within the first month of store setup.
Latest Quarterly Financial Performance of V2 Retail (Q1 FY2027)
V2 Retail recorded top-line turnover expansion and net profit growth during the first quarter of FY2027.
- Consolidated Revenue from Operations – Rs 997.20 crore (+57.7% YoY)
- Consolidated Operating EBITDA – Rs 139.50 crore (+60.0% YoY)
- Operating EBITDA Margin – 13.99% (+19 bps YoY)
- Consolidated Net Profit After Tax (PAT) – Rs 41.90 crore (+69.7% YoY)
- Gross Margin Realisation – 28.58%
First-quarter operating turnover expanded 57.7% year-on-year to Rs 997.20 crore, supported by 57 new store additions and volume throughput. Consolidated Net Profit After Tax reached Rs 41.90 crore, while operating EBITDA margins held firm at 13.99%.
Consolidated Annual Financial Performance of V2 Retail (FY2026)
V2 Retail delivered record full-year operational turnover expansion and bottom-line profit growth for full financial year FY2026.
- Full Year Consolidated Revenue from Operations – Rs 3,067.10 crore (+62.8% YoY)
- Full Year Consolidated Operating EBITDA – Rs 455.50 crore (+76.6% YoY)
- Full Year Operating EBITDA Margin – 14.85% (+115 bps YoY)
- Consolidated Net Profit After Tax (PAT) – Rs 162.10 crore (+125.1% YoY)
Full-year operating turnover crossed Rs 3,060 crore in FY2026, as consolidated Net Profit After Tax reached Rs 162.10 crore. Financial execution was supported by adding 136 net new stores, a 47% volume surge, and operating leverage.
Balance Sheet Structure & Working Capital Ratios of V2 Retail (Q1 FY2027)
V2 Retail operates a capital structure supported by equity raises, low debt gearing, and working capital lines.
- Net Working Capital Cycle – 74 days (compressed from 81 days in FY2026)
- Inventory Holding Period – 138 days
- Trade Payable Creditor Period – 64 days
- Total Consolidated Net Worth Base – Rs 902.00 crore
- QIP Equity Capital Raised Base (FY2026) – Rs 400.00 crore
Net working capital compressed to 74 days in Q1 FY2027, maintaining disciplined inventory buffer levels for planned store additions. Equity net worth reached Rs 902.00 crore, supported by internal profit retention and QIP equity proceeds.
Store Expansion & Capital Allocation Roadmap of V2 Retail (FY2027–FY2028)
V2 Retail executes capital allocation outlays to add retail store locations, expand warehouse fulfillment hubs, and upgrade IT software architectures.
- Annual Net Store Expansion Target – Adding 170 to 200 net new stores in FY2027
- Total Targeted Store Network Scale – ~500 operational stores by end-FY2027
- New Store Setup Capex Outlay – Rs 2.0–2.5 crore per store location
- Warehousing & Logistics Expansion Target – Setting up regional fulfillment hubs in West and South India
- Funding Method – 100% funded through internal operational cash accruals and cash reserves
Store expansion plans target adding 170 to 200 net new stores in FY2027 to build a 500-store retail network. Internal operational cash flows fully fund capital requirements for store fit-outs and inventory stocking without debt reliance.
Strategic Outlook & Management Commentary of V2 Retail (Q1 FY2027 Concall)
Management guidance outlines strategic priorities centered on retail store scaling, value fashion leadership in Bharat markets, and operating leverage.
- Management targets achieving a 35%–40% annual top-line revenue CAGR over the FY2027–FY2029 period.
- Gross profit margins are guided to sustain within the 28.0%–30.0% corridor through direct manufacturer sourcing.
- Store network expansion will prioritize Tier-2, Tier-3, and Tier-4 commercial centers across Western and Northern India.
- Same-store sales growth (SSSG) is targeted to be maintained above the 7.0%–8.0% mark through product depth.
- Capital allocation strategy will maintain a conservative balance sheet while funding store setup outlays through internal cash flows.
Management anticipates rising consumer demand for value fashion in Tier-2 and Tier-3 commercial towns to support store sales. Operational focus centers on opening new retail stores, maintaining inventory turnover efficiency, and preserving balance sheet health.
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Sources & References
- V2 Retail Q1 FY2027 Consolidated Financial Results Disclosures & Press Release (August 13, 2026)
- V2 Retail Investor Presentation & Outcome Filings
- V2 Retail Board Outcome & Regulatory Disclosures
- BSE Limited & National Stock Exchange of India (NSE) Corporate Filings for V2 Retail
- Ticker Finology V2 Retail Page
Disclaimer
The information presented above on V2 Retail has been compiled from the company's Annual Reports, Investor Presentations, Earnings Call (Concall) Transcripts, official regulatory filings and the financial data available on Finology Ticker. Certain figures, classifications or comparisons may vary due to differences in accounting policies, reporting methodologies or subsequent restatements by the company. This content is intended solely for informational purposes and should not be considered as investment advice. Investors are advised to refer to the latest company filings and the updated financial data, ratios and disclosures available on this Finology Ticker V2 Retail page before making any investment decision. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.