V2 Retail Limited H1 FY27 Revenue Rises 42% to ₹1,902.8 Crore

V2 Retail Limited reported H1 FY27 consolidated revenue of ₹1,902.8 crore, a 42% year-on-year increase, while profit after tax reached ₹162.1 crore. The retailer's Q2 revenue rose 28.4% to ₹905 crore, though same-store sales were affected by a shift in the festive calendar.

What did V2 Retail report for H1 FY27?

V2 Retail reported strong consolidated growth for the first half of FY27, supported by the expansion of its store network. H1 revenue rose 42% year-on-year to ₹1,902.8 crore, while EBITDA increased 50% to ₹259.7 crore. The company reported profit after tax of ₹162.1 crore for the half year.

Gross margin improved by 110 basis points year-on-year to 29.8%. The reported margin movement and EBITDA growth indicate that earnings expanded faster than revenue over the period. However, working-capital intensity increased, with net working capital days rising to 88 from 81.

Why did same-store sales decline in Q2 FY27?

V2 Retail's same-store sales declined 14.9% in Q2 FY27 on a calendar basis because Navratri and Durga Puja fell in the comparable Q2 period of the previous year rather than in the current quarter. The timing difference reduced the direct comparability of sales at stores operating for more than a year.

On a festival-normalised basis, same-store sales growth was 0.5%. The company said it expects the shift in festive demand timing to normalise in Q3 FY27. This distinction is important because the retailer's reported revenue continued to grow, largely aided by new stores, even as comparable-store demand was subdued during the quarter.

Management also revised its FY27 same-store sales growth guidance to 5-7%, from its earlier estimate of 8-10%. The revision reflects the weaker calendar-basis Q2 comparison and the need to assess demand after the delayed festive sales period.

How did store expansion support V2 Retail's revenue growth?

V2 Retail ended the reported period with 427 stores. The network was 106 stores larger year-on-year, and the company added 49 stores during Q2 FY27. This wider footprint was a key contributor to the 28.4% increase in Q2 revenue and the 42% rise in H1 revenue.

The company reported a Q2 average bill value of ₹891 and volume growth of 31%. These metrics show that transaction volumes contributed to growth alongside additions to the physical network. Store expansion has therefore remained central to V2 Retail's current revenue model, particularly when comparable-store growth is constrained by festival timing.

The retailer has said that it intends to support growth through further store expansion, analytics-driven merchandising and operational efficiencies. No specific future store-opening target was provided in the supplied results information.

What do the results mean for investors and operations?

The results show a combination of rapid network-led revenue growth and improved operating profitability. Revenue, EBITDA and profit increased year-on-year, while the 110-basis-point gross-margin improvement supported the 50% increase in EBITDA. These measures are relevant for investors assessing whether a larger store base is being matched by operating leverage.

At the same time, the rise in net working capital days to 88 from 81 is an operational factor to monitor. Higher working-capital days can increase the funds tied up in inventory and other operating requirements as a retail network expands. The results release did not provide a detailed explanation for the increase.

V2 Retail shares fell 20% despite the reported 28.4% growth in Q2 revenue, according to the supplied market update. The market response followed the weaker calendar-basis same-store sales figure and the reduction in FY27 same-store sales guidance. The data underline that investors are tracking comparable-store performance as well as headline revenue growth.

How was the Q2 FY27 results process communicated?

V2 Retail had informed the BSE that its board meeting was scheduled for November 3, 2026, to consider and approve unaudited financial results for the quarter and half year ended September 30, 2026. The company also stated that its trading window was closed from October 1 until 48 hours after the results release.

Earlier, on October 2, V2 Retail had disclosed Q2 revenue growth of 28.4% to ₹905 crore and explained the effect of the festive-calendar shift on same-store sales. The subsequent financial-results communication provided the wider H1 view, including revenue, profitability, margin and working-capital metrics.

Conclusion

V2 Retail's H1 FY27 results show that store expansion drove revenue to ₹1,902.8 crore and supported higher profitability, with EBITDA rising 50% to ₹259.7 crore. The reported gross-margin improvement adds support to the earnings trend, while the increase in net working-capital days highlights the operating demands of a larger network.

The next disclosed factor to watch is whether festive demand timing normalises in Q3 FY27, as management expects. Investors will also monitor progress against the revised 5-7% FY27 same-store sales growth guidance, the pace of store additions and any movement in working-capital days.