V2 Retail Q2 revenue rises 28% as profit barely moves year on year

V2 Retail Limited reported revenue from operations of Rs 905.5998 crore for the quarter ended 30 September 2026, up 28.5% from a year earlier, while profit for the period increased 1.1% to Rs 18.2835 crore. Higher employee benefits, depreciation and tax expense limited the conversion of sales growth into quarterly profit.

What did V2 Retail report for the September 2026 quarter?

V2 Retail reported total income of Rs 908.0825 crore in the quarter ended 30 September 2026, compared with Rs 705.3603 crore in the quarter ended 30 September 2025. Revenue from operations was Rs 905.5998 crore, up from Rs 704.8935 crore, while other income increased to Rs 2.4827 crore from Rs 0.4668 crore.

V2 Retail’s profit before tax increased to Rs 24.8526 crore from Rs 21.0970 crore, but profit for the period moved only to Rs 18.2835 crore from Rs 18.0831 crore. Total tax expense was Rs 6.5691 crore, compared with Rs 3.0139 crore a year earlier. Basic and diluted earnings per share were each Rs 0.50, versus Rs 0.52 in the September 2025 quarter; the company has restated prior-period earnings per share after its share split.

Why did V2 Retail’s profit lag revenue growth?

V2 Retail’s profit lagged sales because total expenses rose to Rs 883.2299 crore from Rs 684.2633 crore, a 29.1% increase that was slightly faster than the 28.5% rise in revenue from operations. The difference left profit before tax at Rs 24.8526 crore, only Rs 3.7556 crore above the corresponding prior-year quarter.

Employee benefits expense increased 55.9% to Rs 89.1925 crore from Rs 57.2048 crore, a rise of Rs 31.9877 crore. Depreciation and amortisation expense rose 83.1% to Rs 68.3070 crore from Rs 37.2977 crore, adding Rs 31.0093 crore. Other expenses rose to Rs 71.7986 crore from Rs 54.2805 crore, while finance costs increased to Rs 29.6586 crore from Rs 27.9147 crore.

Purchases of stock-in-trade were Rs 772.1992 crore, compared with Rs 698.2703 crore in the September 2025 quarter. Changes in inventories were negative Rs 147.9260 crore, compared with negative Rs 190.7047 crore a year earlier. Together, these inventory-related lines partly offset the increase in purchases, but did not prevent total quarterly expenses from rising above revenue growth.

How did V2 Retail perform in the first half?

V2 Retail’s revenue from operations for the six months ended 30 September 2026 rose 42.6% to Rs 1,902.7963 crore from Rs 1,334.5901 crore in the corresponding prior-year period. Total income reached Rs 1,906.2668 crore, compared with Rs 1,335.8217 crore, including other income of Rs 3.4705 crore.

V2 Retail reported first-half profit before tax of Rs 76.4875 crore, up from Rs 58.2426 crore, and profit for the period of Rs 60.1836 crore, up from Rs 45.8291 crore. The first-half profit increase of 31.3% was lower than the revenue increase of 42.6%, continuing the pattern of costs increasing alongside sales.

Employee benefits expense for the six months rose to Rs 169.4623 crore from Rs 106.1710 crore, while finance costs increased to Rs 54.6489 crore from Rs 50.3188 crore. Depreciation and amortisation expense, calculated from the two reported quarterly charges, was Rs 132.1808 crore for the first half, compared with Rs 68.9838 crore in the corresponding prior-year period.

How did V2 Retail’s September quarter compare with June?

V2 Retail’s September-quarter revenue from operations was Rs 905.5998 crore, down from Rs 997.1965 crore in the quarter ended 30 June 2026. Profit before tax fell from Rs 51.6349 crore in June to Rs 24.8526 crore in September, while profit for the period declined from Rs 41.9001 crore to Rs 18.2835 crore.

Employee benefits expense increased from Rs 80.2698 crore in the June quarter to Rs 89.1925 crore in the September quarter. Finance costs also rose, from Rs 24.9903 crore to Rs 29.6586 crore, while depreciation and amortisation increased from Rs 63.8738 crore to Rs 68.3070 crore. Total expenses were Rs 946.5494 crore in June and Rs 883.2299 crore in September.

The June-to-September comparison also shows a change in the inventory movement line. Changes in inventories were negative Rs 158.1397 crore in June, compared with negative Rs 147.9260 crore in September, while purchases of stock-in-trade declined from Rs 870.3107 crore to Rs 772.1992 crore.

What balance-sheet and cash-flow changes did V2 Retail disclose?

V2 Retail reported total assets of Rs 3,016.8637 crore at 30 September 2026, compared with Rs 2,421.8464 crore at 31 March 2026. Inventories increased to Rs 1,446.4669 crore from Rs 1,140.4012 crore, and property, plant and equipment increased to Rs 413.6483 crore from Rs 309.6677 crore.

Current borrowings rose to Rs 481.9229 crore at 30 September 2026 from Rs 229.7819 crore at 31 March 2026. Non-current borrowings increased to Rs 45.6404 crore from Rs 24.1189 crore, while non-current lease liabilities rose to Rs 624.3970 crore from Rs 569.5283 crore. Total equity was Rs 961.7292 crore, compared with Rs 902.3126 crore at the prior financial year-end.

Net cash generated from operating activities for the half year was Rs 19.6605 crore, compared with Rs 116.4999 crore in the prior-year half. Purchases of property, plant and equipment and right-of-use assets, including capital work-in-progress and related payables, were Rs 139.0829 crore, up from Rs 86.7457 crore. Net cash used in investing activities was Rs 150.8962 crore, versus Rs 86.4071 crore a year earlier.

What disclosure should V2 Retail investors monitor next?

V2 Retail operates in one reportable segment, retail trade through a chain of stores, and primarily operates in India. Its standalone results therefore provide no separate revenue, profit or asset figures by retail format or geography for the quarter ended 30 September 2026.

V2 Retail disclosed a utilisable advance of Rs 10.3291 crore with Bennett, Coleman and Company Limited at 30 September 2026, down from Rs 12.8825 crore at 31 March 2026. The advertising agreement, initially executed on 17 July 2020, has been extended to 31 March 2028. Management said it expects to use the advance against future advertising services during the extended period and considers it recoverable.

The statutory auditor’s review report drew attention to the Rs 10.3291 crore advance and stated that its review conclusion was not modified in respect of that matter. The board approved the unaudited standalone results on 3 November 2026, after a meeting that commenced at 16:46 and concluded at 18:20.

Conclusion

V2 Retail delivered higher sales in the September 2026 quarter, with revenue from operations rising by Rs 200.7063 crore year on year. However, employee benefits expense increased by Rs 31.9877 crore, depreciation and amortisation rose by Rs 31.0093 crore, and tax expense increased by Rs 3.5552 crore, leaving profit only Rs 0.2004 crore above the prior-year quarter.

The next disclosure will show whether revenue, employee costs and depreciation continue to move at their September-quarter rates after profit declined from Rs 41.9001 crore in the June quarter. The company also has the extended advertising contract with Bennett, Coleman and Company Limited running until 31 March 2028, against which management plans to utilise the Rs 10.3291 crore advance.