V2 Retail (V2RETAIL) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 revenue reached INR 632.2 crore, up 52% YoY, with net profit rising 51% YoY to INR 24.7 crore and gross profit of INR 186.2 crore, reflecting strong momentum and execution.

• Store network expanded to 216 stores across 165+ cities, with 28 new stores opened and 1 closed in Q1, and 9 more added early in Q2, totaling 225.

• Same-store sales growth (SSSG) was 5% for the quarter, normalizing to 10% after adjusting for calendar shifts, with robust 50% volume growth.

• The company is focused on customer-centricity, data-driven merchandising, and a tech-enabled supply chain to sustain growth.

• Unaudited standalone and consolidated financial results for Q1 FY26 were approved by the Board on July 30, 2025, with a limited review by statutory auditors and a modified report issued due to ongoing asset reconciliation.

Financial highlights

• Revenue from operations reached INR 632.2 crore, up 52% YoY, with gross margin improving to 29.5% and EBITDA margin at 13.8%.

• Standalone net profit for Q1 FY26 was INR 27.7 crore, with PAT margin at 4.4%.

• EBITDA grew 63% YoY to INR 52.5 crore, with margin rising from 7.8% to 8.3%.

• ROE improved to 27.5% in Q1, from 23% in FY25 and 10.7% in FY24.

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

Outlook and guidance

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

• PAT expected to remain positive in all quarters.

• Store opening target for FY26 is 100-120, with potential to increase to 130-150 in FY27 if momentum continues.

• EBITDA margin target is 8-10% over the next two years, with 10% requiring higher SSSG of 13-15%.

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