V2 Retail Q3 Results 2026: Net Profit Doubles on 57 Percent Revenue Growth

V2 Retail Limited has delivered a stellar financial performance for the third quarter of the 2026 fiscal year. The company reported a near-doubling of its net profit, driven by robust revenue growth and an aggressive expansion of its physical retail footprint. The results highlight the company's successful penetration into Tier 2 and Tier 3 cities, where consumption-led demand remains strong despite broader economic challenges in the retail sector.

For the quarter ended December 31, 2025, V2 Retail reported a net profit of ₹102.06 crore. This represents a 99.3 percent increase compared to the ₹51.19 crore recorded in the same period last year. The company's revenue from operations also saw a significant jump, rising 57.2 percent to ₹929.2 crore from ₹590.9 crore in the year-ago quarter. This growth was achieved on a high base, reflecting the scalability of the company's value-fashion model.

Operational Performance and Margins

The company's operating performance remained firm throughout the quarter. Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) climbed 55.8 percent year-on-year to ₹173.68 crore, up from ₹111.47 crore. The EBITDA margin stood at 18.69 percent, which is broadly stable compared to the 18.86 percent reported in the corresponding quarter of the previous year. This stability indicates disciplined cost management even as the company rapidly scales its operations.

Store-level productivity showed marked improvement during the period. Monthly sales per square foot reached ₹1,032 in Q3 FY26, up from previous averages. This metric suggests that new stores are ramping up quickly and that existing stores are maintaining high levels of efficiency. The company's focus on data-led assortment planning and high sell-through rates has enabled it to maintain healthy margins with minimal markdowns.

Same-Store Sales Growth Analysis

V2 Retail reported a same-store sales growth (SSSG) of 2 percent on a year-on-year basis. However, the company noted that this figure was impacted by a shift in the festive calendar. Specifically, the Durga Puja season shifted from the third quarter in the previous year to the second quarter in the current fiscal year. When adjusted for this shift, the normalized SSSG stood at approximately 12.8 percent.

On a cumulative basis, the second and third quarters of FY26 together delivered a same-store sales growth of 10.4 percent. Cumulative sales growth for these two quarters reached 68 percent. These figures underscore the resilience of the company's existing store network and its ability to drive volumes even in a challenging consumption environment.

Aggressive Store Expansion Strategy

A primary driver of the revenue surge was the company's aggressive store expansion initiative. V2 Retail successfully launched 35 new stores during the third quarter. This expansion effort was deliberately targeted at Tier 2 and Tier 3 cities, aligning with the company's long-term vision to capitalize on increasing disposable incomes in smaller towns and emerging urban centers.

As of December 31, 2025, the company operated a total of 294 stores across India. The total retail area has expanded to approximately 31.93 lakh square feet. The company has successfully moved beyond its regional roots to establish a national footprint, with encouraging performance from new stores in non-core territories such as Maharashtra, Punjab, Rajasthan, and South India.

Financial Summary Table

Nine-Month Performance Overview

The performance for the first nine months of FY26 reinforces the company's strong growth trajectory. Standalone revenue from operations grew 63 percent to ₹2,262 crore for the period ended December 31, 2025. SSSG for the nine-month period stood at approximately 8.6 percent, while monthly sales per square foot averaged ₹981.

During these nine months, V2 Retail added a net of 105 new stores with only one store closure. This high success rate in site selection and market entry underscores the effectiveness of the company's expansion strategy. The management has expressed confidence in maintaining this aggressive trajectory for the remainder of the financial year.

Inventory and Efficiency Metrics

Operational efficiency was a key theme in the Q3 results. The company utilized data-led merchandising to ensure that inventory remained aligned with seasonal demand. This led to faster inventory churn and a reduction in aged stock. By maintaining high sell-through rates, the company was able to avoid heavy discounting, which supported the overall margin profile.

The portability of the "Value and Variety" model has been a significant factor in the company's success. By offering affordable fashion that appeals to mass-market consumers, V2 Retail has built strong brand equity. The performance of stores in diverse geographic regions suggests that the model is well-suited for a pan-India rollout.

Market Impact and Stock Movement

Ahead of the earnings announcement, shares of V2 Retail Ltd closed 7.13 percent higher at ₹2,130.80 on the NSE. This movement signaled positive investor sentiment and high expectations for the quarterly performance. Although the stock saw a minor dip of 0.40 percent to ₹2,440 in subsequent trading sessions, the overall trend remains positive, reflecting the company's strong operational execution.

Investors are closely monitoring the company's ability to manage expansion costs while maintaining store productivity. The successful ramp-up of stores in new markets like Maharashtra and Punjab has provided confidence that the company can continue to scale without diluting its brand value or operational efficiency.

Conclusion

V2 Retail's Q3 FY26 results demonstrate a company in a high-growth phase. By doubling its profit and significantly expanding its revenue base, the retailer has proven the viability of its value-fashion model in non-metro markets. With 294 stores now operational and a clear strategy for further expansion, the company is well-positioned to benefit from the rising preference for organized retail in India's smaller cities. The focus will now remain on sustaining this momentum through the final quarter of the fiscal year.