V2 Retail (V2RETAIL) investor relations material

Executive summary

• Q1 FY26 revenue grew 52% year-over-year to ₹632.2 crore, with net profit up 51% to ₹24.7 crore and EBITDA rising over 55% year-over-year.

• Store network expanded to 225 stores, with 28 new stores opened and 1 closed in Q1 FY26, reaching 216–225 stores across 165+ cities.

• Same store sales growth normalized at 10%, with full price sales at 92% of total sales.

• Focus on customer-centricity, data-driven merchandising, and tech-enabled supply chain to drive resilience and scalability.

• Unaudited Q1 FY26 results were approved with a modified auditor report due to ongoing asset reconciliation.

Financial highlights

• Revenue from operations at ₹632.2 crore, gross margin improved to 29.4–29.5%, and EBITDA margin up to 13.8% in Q1 FY26.

• Profit after tax reached ₹24.7–30.6 crore, a 51–62% year-over-year increase.

• ROE improved to 27.5% in Q1 FY26 from 23% in FY25.

• Net working capital days reduced to 34 in Q1 FY26 from 37 in FY25.

• Sales per square foot per month was ₹1,061 in Q1 FY26, up from ₹1,017 in Q1 FY25.

Outlook and guidance

• Targeting 50% revenue growth for FY26, with 8–10% SSSG from old stores and 40% growth from new stores.

• Store opening target for FY26 is 100–120 stores, with potential to increase to 130–150 stores in FY27.

• EBITDA margin target is 10% in the next two years, with anything above 8% considered strong.

• Focus remains on affordable, high-quality fashion for India's growing middle class, with continued expansion in Tier-II and Tier-III cities.

• Management expects no material adjustments from ongoing asset reconciliation.