V2 Retail Q1 FY26: Sales up 52%, store base expands

The headline numbers from Q1 FY26

V2 Retail Ltd reported a sharp year-on-year rise in Q1 FY26 revenue and profit, supported by continued store rollout and improving operating metrics. The company’s consolidated net profit increased 50.9% year-on-year to ₹24.66 crore. Consolidated net sales rose 52.3% to ₹632.22 crore in Q1 FY26 compared with Q1 FY25. In another summary of the results, the company also described Q1 FY26 as its highest-ever quarterly revenue at around ₹632 crore, up 52% year-on-year. The updates point to a quarter where both scale and execution contributed to performance.

Profit growth and operating leverage

Alongside the profit increase, the company reported that costs rose at a slower pace than sales, with costs up 21% year-on-year for the April to June period, as per a stock exchange filing referenced in the update. One business summary stated EBITDA grew 63% year-on-year to ₹52.50 crore in Q1 FY26. A separate market note cited EBITDA at ₹87.2 crore with 57% growth, indicating that EBITDA figures were presented differently across circulated updates. What is consistent across the information provided is the direction of travel: profitability increased faster than sales in Q1 FY26. That gap typically signals operating leverage, especially in a retail model where fixed costs can be spread across a larger store base.

Same-store sales and product execution

The company also highlighted better performance in existing stores. Same-store sales growth (SSSG) was reported at 23.4% year-on-year during the quarter, backed by “advanced, data-led assortment curation” and strong sell-through rates. Separately, another business update referenced reported SSSG of about 5% and a “normalized” SSSG of about 10% (Eid-adjusted) for Q1 FY26. Taken together, the inputs suggest that while network expansion played a major role, management commentary also pointed to stronger demand and improved merchandising outcomes. For a value-fashion retailer, higher sell-through and tighter assortment decisions can lift margins by reducing markdown pressure.

Sales density: PSF trends highlighted in updates

Sales per square foot (PSF) was another operating metric disclosed in the business updates. In H1 FY26, PSF stood at ₹948 per square foot per month. Another Q1 update cited PSF at ₹957. These figures matter because they help investors assess whether growth is only coming from new stores or whether store productivity is also improving. With rapid expansion, PSF stability can be an important signal that new stores are not diluting average store performance.

H1 FY26: strong revenue growth and store additions

For H1 FY26, the company’s standalone revenue from operations grew 68% year-on-year to ₹1,334.9 crore. During the same period, SSSG was reported at approximately 13.3%. The company added a net 70 new stores with only one closure in H1 FY26, according to the update. These figures show that growth continued beyond a single quarter and that the store pipeline remained active. They also imply that Q1’s expansion momentum carried into the first half.

Store expansion remains the core growth driver

V2 Retail’s Q1 FY26 updates repeatedly emphasised network expansion. The company opened 28 new stores during the quarter and closed one store, taking the store count to 216 and retail area to about 23.48 lakh square feet, as cited in the update. Another note stated that so far in FY26, the company added 41 new stores, with 26 opening in Q1 alone. An analyst comment included in the information stated that store expansion was a significant contributor to top-line growth, with about 35% of Q1 topline coming from newly opened stores. The company also indicated it plans to open 100 to 120 more stores.

Five stores in a single day across five cities

In a separate expansion milestone mentioned in the provided material, V2 Retail said it launched five new stores in a single day across Noida, Vizianagaram, Goalpara, Rohtak, and Ambala. The same note said the retailer surpassed the 230-store mark nationwide following this rapid expansion. Another line elsewhere referenced “43 new stores added” and a total of 259 stores with a retail footprint of about 27.94 lakh square feet. These store-count figures are presented as part of different updates in the material, but they all point to an aggressive rollout strategy across metros and Tier-II and Tier-III markets.

FY25 base: rapid scaling into FY26

The updates also provided FY25 context. For FY25, annual revenue was stated at ₹1,884.5 crore, up 62% year-on-year, while net profit surged 159% to ₹72 crore. Another data point in the material reported FY25 revenue at 18.84 billion rupees with 61.78% growth, which aligns with ₹1,884 crore in crore terms. This strong base helps explain why the market is tracking how much of FY26 growth is coming from new stores versus improvements in SSSG and productivity.

Market impact: what investors typically track next

For investors, the key question from the updates is the balance between expansion-led growth and same-store momentum. The company did not provide insights into growth from existing stores in one of the referenced reports, which suggested Q1 revenue growth was driven primarily by network expansion. But other updates did provide SSSG figures, including a 23.4% year-on-year increase for the quarter. With a stated plan to open 100 to 120 stores, near-term performance will likely be monitored through store-level economics like PSF, sell-through rates, and the cost trajectory relative to sales. The disclosure that about 35% of Q1 topline came from newly opened stores also frames how investors may attribute growth.

Key numbers at a glance

Conclusion

V2 Retail’s Q1 FY26 updates point to strong year-on-year growth in sales and profit, supported by a faster pace of store expansion and improving execution metrics such as sell-through and PSF. H1 FY26 numbers also showed continued momentum in standalone revenue and network additions. The next set of disclosures investors will watch are the company’s progress toward opening 100 to 120 stores and whether SSSG remains strong as the store base scales further.