V2 Retail Limited inventory reaches Rs 1,447.8373 crore

V2 Retail Limited reported consolidated inventory of Rs 1,447.8373 crore at September 30, 2026, up Rs 306.0652 crore from March 31, 2026. Current borrowings increased Rs 253.5410 crore to Rs 483.3229 crore, while net operating cash flow declined to Rs 17.9647 crore for the half year from Rs 109.7742 crore a year earlier.

How much did V2 Retail’s inventory increase?

V2 Retail’s inventory increased Rs 306.0652 crore, or 26.8%, to Rs 1,447.8373 crore at September 30, 2026, from Rs 1,141.7721 crore at March 31, 2026. Total current assets rose by Rs 361.5804 crore over the same period to Rs 1,681.6387 crore, making inventory the largest stated current-asset balance.

The cash-flow statement records a Rs 325.0417 crore outflow from inventory movement in the half year ended September 30, 2026, compared with a Rs 282.5002 crore outflow in the corresponding 2025 half year. The Rs 42.5415 crore year-on-year increase in inventory-related cash use was larger than the balance-sheet movement because the cash-flow measure captures transactions during the six-month period.

How did V2 Retail fund its working-capital requirements?

V2 Retail’s current borrowings rose to Rs 483.3229 crore at September 30, 2026, from Rs 229.7819 crore at March 31, 2026. The half-year cash-flow statement shows Rs 253.3107 crore of net proceeds from current borrowings, compared with Rs 59.1965 crore in the half year ended September 30, 2025.

Financing activities produced net cash of Rs 135.3449 crore in the 2026 half year, compared with a net cash outflow of Rs 27.2028 crore a year earlier. V2 Retail also received Rs 24.4000 crore from non-current borrowings, repaid Rs 2.6481 crore, paid Rs 83.4618 crore of lease liabilities and paid Rs 56.2552 crore of interest.

Why did V2 Retail’s operating cash flow decline?

V2 Retail generated net cash from operating activities of Rs 17.9647 crore in the half year ended September 30, 2026, down from Rs 109.7742 crore in the corresponding 2025 period. This occurred even as operating profit before working-capital changes increased to Rs 279.3490 crore from Rs 188.7781 crore.

Working-capital movements explain the difference between operating profit and cash generation. Inventory used Rs 325.0417 crore, other assets used Rs 56.3674 crore and other financial assets used Rs 3.5939 crore, partly offset by Rs 412.8582 crore generated from trade-payable movement and Rs 8.0775 crore from other financial liabilities.

Profit before tax increased to Rs 76.3685 crore from Rs 54.2415 crore in the prior-year half. Depreciation and amortisation added back in the cash-flow calculation rose to Rs 132.1808 crore from Rs 69.6734 crore, while the provision against inventories increased to Rs 18.9760 crore from Rs 12.9559 crore.

What other assets expanded in the half year?

V2 Retail’s non-current assets rose to Rs 1,336.6290 crore at September 30, 2026, from Rs 1,102.1533 crore at March 31, 2026. Property, plant and equipment increased by Rs 103.9808 crore to Rs 413.6485 crore, capital work-in-progress rose by Rs 17.4892 crore to Rs 53.4645 crore, and right-of-use assets increased by Rs 94.7321 crore to Rs 752.2739 crore.

Cash payments for property, plant and equipment and right-of-use assets, including capital work-in-progress, were Rs 139.0943 crore during the 2026 half year, against Rs 85.8245 crore a year earlier. Total assets consequently reached Rs 3,018.2677 crore at September 30, 2026, compared with Rs 2,422.2116 crore at March 31, 2026.

V2 Retail operates one reportable business segment, retail trade through a chain of stores in India, under Indian Accounting Standard 108 on operating segments. The filing therefore does not give inventory by product category, store format or geography, and it does not disclose inventory turnover.

What balance-sheet disclosure remains unresolved?

V2 Retail’s auditor drew attention to a Rs 10.3291 crore advance outstanding since April 2019 under an advertising arrangement with Bennett, Coleman and Co. Limited. Management considered the advance good because the underlying contract was extended through March 31, 2028, and said it expects to use the amount for future advertising services.

The auditor did not modify its conclusion on the unaudited consolidated results in relation to this matter. Other non-current assets were Rs 22.8595 crore at September 30, 2026, down from Rs 30.4738 crore at March 31, but the filing does not provide a detailed reconciliation between that line item and the advertising advance.

The filing also reports a consolidated subsidiary with total assets of Rs 6.8755 crore at September 30, 2026. The subsidiary reported no revenue for either the September quarter or half year, a half-year loss after tax of Rs 11.90 lakh and net cash outflow of Rs 30.70 lakh.

Conclusion

V2 Retail’s first-half balance sheet shows a Rs 306.0652 crore inventory increase alongside a Rs 253.5410 crore rise in current borrowings. Although profit before tax and operating profit before working-capital changes increased, inventory and other asset movements reduced operating cash generation to Rs 17.9647 crore from Rs 109.7742 crore in the corresponding prior-year period.

The next disclosures to watch are changes in inventory movement and current borrowings after the Rs 325.0417 crore inventory cash outflow and Rs 253.3107 crore of borrowing proceeds. Management’s planned utilisation of the Rs 10.3291 crore advertising advance before the contract extension ends on March 31, 2028, is also a stated outstanding matter.