V2 Retail Q4 FY26: Growth scales up, working capital stretches

FY26 consolidated revenue was 3,067.1 crore (up 63% YoY), gross profit 927.1 crore (30.2% margin), EBITDA 455.5 crore (14.9% margin), and PAT 162.1 crore (5.3% margin).

Q4 FY26 consolidated revenue was 797.0 crore (up 60% YoY), EBITDA 109.1 crore (13.7% margin), and PAT 17.5 crore (2.2% margin).

FY26 revenue mix was Men’s Wear 41%, Ladies Wear 28%, Kids Wear 24%, and Lifestyle 7% (as per the investor presentation).

Management stated a FY27 target of 170 to 200 store additions, dependent on performance and business momentum.

The presentation states NWC days increased to 81 days in FY26 from 45 days in FY25 primarily due to higher inventory holding to ensure availability for existing stores and planned store additions; management also cited a safety stock build in March due to geopolitical tension.

Management indicated an expectation to maintain gross margin in the range of 28% to 30% and said raw material inflation would be passed on through modest MRP increases.

Management stated the company does not run a points-based loyalty program, but has a customer database of about 8 crore customers and engages them via WhatsApp, RCS, and SMS with vouchers and gifts.