V2 Retail Q2 FY27 revenue jumps 28% to ₹905 crore

Key takeaway from the quarter

V2 Retail reported standalone revenue of ₹905 crore in Q2FY27, up 28.4% year-on-year from ₹705 crore in Q2FY26. The company attributed the growth largely to continued store network expansion, opening 49 new stores during the quarter. The update also flagged a calendar impact, with Navratri and Durga Puja shifting from Q2 this year to Q3, affecting like-for-like comparisons. V2 said the standalone revenue numbers are subject to limited review by its statutory auditors.

Revenue growth driven by store additions

The quarter’s growth profile was shaped by new store additions more than by higher sales from existing stores. V2’s approach in recent periods has been to expand aggressively, particularly in Tier 2 and Tier 3 consumption markets. In Q2FY27, the company continued to push this strategy despite the festive season moving out of the quarter. The reported 28.4% revenue jump therefore needs to be read alongside the company’s same-store sales and productivity metrics.

Store network expands to 427 outlets

As of September 30, 2026, V2 Retail operated 427 stores spread across approximately 46.28 lakh sq. ft. The company’s focus remained on India’s Tier 2 and Tier 3 growth corridors to deepen reach beyond metros. In the June quarter, the company had reported 381 stores as of June 30, 2026, across about 40.7 lakh sq. ft., after adding 56 stores on a net basis (57 openings and 1 closure). Post-quarter, it also crossed the milestone of 400 operational stores nationwide. Separately, an update noted the retailer has opened its 400th store and added 75 net new stores in FY27.

Same-store sales show the festival timing effect

V2 reported same-store sales growth (SSSG) of 0.5% in Q2FY27 on a festival-normalised basis. On a calendar basis, SSSG declined by 14.9%, which the company linked to the absence of the festive season in Q2FY27, given that festivals fell in Q2FY26. This split between normalised and calendar SSSG highlights how sensitive value-fashion retail can be to seasonal timing. The company’s update explicitly underlined the need to normalise retail data to avoid seasonal distortions.

Store productivity: PSF drops as new stores ramp up

Monthly sales per square foot (PSF) stood at ₹700 in Q2FY27. The company indicated that store productivity reflected both the festive shift and the ramp-up phase of new outlets. For context, V2 had earlier reported monthly sales per sq. ft. of ₹886 in Q1FY27 alongside a 7.5% same-store sales growth for that quarter. Together, these numbers frame Q2’s weaker calendar-based store metrics as a mix of timing and expansion-led dilution.

Omni-channel: V2Kart soft launch

In September 2026, V2 Retail soft-launched its e-commerce platform, V2Kart, in Delhi NCR and Lucknow. The company said orders would be fulfilled directly from stores, aimed at improving omni-channel capability. The choice of store-led fulfilment is consistent with V2’s store-heavy expansion model and its focus on improving reach in non-metro markets.

Credit profile: India Ratings upgrade

In August 2026, India Ratings upgraded the company’s long-term rating to IND A / Positive from IND A- / Stable. The stated reason was a strengthened financial profile. Rating actions are closely tracked by investors in fast-expanding retailers because they influence borrowing costs and reflect external assessment of balance sheet and cash-flow resilience.

Promoter share transfer plan postponed

V2 Retail Limited disclosed that it has postponed a proposed inter-se transfer of 7,000,000 equity shares from Ram Chandra Agarwal to Akash Agarwal. The transaction was intended as a gift between promoters but could not be completed due to technical issues and the ongoing trading window closure. Such disclosures matter for governance tracking, especially when promoter shareholding and transaction timing are under market scrutiny.

Snapshot of reported metrics

Q1FY27 and longer-term targets for context

In Q1FY27, V2 reported EPS of ₹1.15 versus ₹0.71 in Q1 2026. The same disclosure set also reported revenue of ₹9.98 billion (₹998 crore), up 58% from Q1 2026, and net income of ₹418.5 million (₹41.85 crore), up 70% from Q1 2026. Another line item cited Q1FY27 standalone revenue at ₹9.97 billion (₹997 crore) versus ₹6.30 billion (₹630 crore) in Q1FY26.

On strategy, management has guided for at least 50% revenue growth for the year, with gross margins expected between 29% and 30%. The company plans to open 170-200 new stores in FY27, with a 10% rise in capex per unit, and has a long-term ambition of 2,500 stores. It also indicated operational working-capital targets such as inventory around 100 days and creditors at 45-50 days.

Market and financial markers investors are watching

A divergence between headline revenue growth and same-store performance sits at the centre of the current narrative. Total revenue has been rising sharply as the store base expands, while normalised SSSG in Q2FY27 was flat at 0.5%, implying stable organic growth rather than acceleration. Yes Securities noted that FY27 expansion is expected to be fully funded through internal accruals, while also pointing to net debt of ₹246 crore and the need for working-capital normalisation.

The same note flagged that operating cash flow turned negative at around ₹96 crore in FY26. Separately, promoter holding declined to 51.43% in Q1FY27 from 54.22% a year earlier. On stock performance, the shares have gained 35% over the last one year, but are down 11% so far in 2026.

Conclusion

V2 Retail’s Q2FY27 results underline how strongly store additions are driving reported growth, with revenue rising to ₹905 crore even as the festive shift pulled down calendar-based same-store numbers. The next key data points for investors will be how quickly newly opened stores mature and whether normalised SSSG improves as the festive season falls into Q3. Separately, updates such as the V2Kart rollout and the India Ratings upgrade add context to the company’s expansion push and funding profile.