V2 Retail Limited: Soaring High with 86% Revenue Growth in Q2 FY26

V2 Retail Limited, a prominent player in India's value fashion retail sector, has delivered a stellar performance in the second quarter and first half of fiscal year 2026. The company's latest financial results underscore a period of accelerated growth, robust operational efficiency, and strategic market expansion, reinforcing its position as a leader in affordable, high-quality fashion.

For Q2 FY26, V2 Retail reported a remarkable 86% year-on-year (YoY) revenue growth, reaching INR 708.6 crores. This impressive top-line expansion translated into significant profitability, with EBITDA climbing by 158% YoY to INR 85.4 crores. The Net Profit After Tax (PAT) witnessed an extraordinary surge of 990% YoY, hitting INR 17.2 crores, a stark turnaround from a loss in the previous year. The first half of FY26 also maintained this strong momentum, with revenue growing 69% to INR 1,340.9 crores and PAT increasing by 191% to INR 41.9 crores. These figures highlight the company's ability to outpace the broader market and demonstrate the scalability and resilience of its operating model.

Segmental Performance and Growth Drivers

The company's diverse product portfolio, categorized into Men's Wear, Ladies Wear, Kids Wear, and Lifestyle, contributed significantly to its H1 FY26 revenue. Men's Wear led the charge, accounting for 41% of the revenue mix, equivalent to INR 549.77 crores. Ladies Wear followed with 29% (INR 388.86 crores), Kids Wear contributed 23% (INR 308.41 crores), and Lifestyle products made up the remaining 7% (INR 93.86 crores). This balanced mix reflects V2 Retail's ability to cater to varied consumer preferences across different demographic segments.

The growth is primarily fueled by strategic store expansion and strong Same Store Sales Growth (SSSG). For Q2 FY26, reported SSSG stood at 23.4%, with a normalized SSSG of 10.3% after adjusting for the Durga Puja shift. For H1 FY26, SSSG was 13.3%. The company's focus on offering fresh, trend-aligned assortments rooted in quality and value has resonated well with customers, driving broad-based and sustainable growth across its expanding network.

Strategic Initiatives and Operational Excellence

V2 Retail's strategic expansion into underserved rural markets and deeper penetration in Tier 1 and Tier 2 cities has been a key differentiator. As of September 30, 2025, the company operates 259 stores across 23 states, covering approximately 27.94 lakh sq.ft. of retail space. In Q2 FY26 alone, 43 new stores were opened, with a net addition of 70 stores in H1 FY26. Management aims to add around 130 stores in FY26 and 150 stores in FY27, demonstrating an aggressive growth trajectory.

To support this rapid expansion, V2 Retail is enhancing its operational backbone. The company recently raised INR 400 crore through a Qualified Institutions Placement (QIP), which has been strategically deployed to repay INR 135 crores of debt, allocate INR 165 crores for working capital, and utilize INR 100 crores for general corporate purposes. This has enabled the company to become a preferred paymaster for its vendors, securing bill discounts of 1.5% to 2% per month and improving its Net Working Capital days to 45 in H1 FY26 from 71 in FY24.

Furthermore, V2 Retail is exploring an omnichannel strategy to leverage existing store inventory for online sales, with implementation expected in the next financial year. This initiative aims to expand customer reach without incurring significant additional costs. The company is also gradually increasing its share of own-designed products, targeting 40-45% by next summer, which is expected to yield higher throughput and better margins.

Management Vision and Future Outlook

Mr. Ram Chandra Agarwal, Chairman & Managing Director, emphasized that the strong H1 FY26 performance validates the resilience of their business model and strategic choices. The company's unwavering commitment to customer-centricity, powered by advanced data analytics, trend-led merchandising, and an agile supply chain, positions it to lead the next wave of growth in India's value fashion market.

Management has provided clear guidance, targeting an 8% to 10% SSSG for mature stores and an 8% pre-Ind AS EBITDA margin for the next 2 to 3 years. The objective is to achieve an ROE of over 20%. While acknowledging challenges like high store-level attrition (40-50%), the company is implementing internal promotions and performance-linked incentives to foster a motivated workforce. The company's data-driven approach to design and inventory management, which has reduced over-year-old inventory from 24% to less than 4%, is a testament to its proactive risk management.

Conclusion: A Trajectory of Sustained Growth

V2 Retail Limited's Q2 and H1 FY26 results paint a picture of a company in a strong growth phase, driven by strategic expansion, operational efficiencies, and a deep understanding of its target market. The successful QIP and its judicious deployment further strengthen the balance sheet, enabling continued investment in growth initiatives. With a clear vision and disciplined execution, V2 Retail is well-positioned to continue its trajectory of sustained growth and value creation for its stakeholders in the dynamic Indian retail landscape.