V2 Retail (V2RETAIL) Q2 25/26 earnings summary

Executive summary

• Achieved 86% year-on-year revenue growth in Q2 FY26, with consolidated revenue at ₹70,863.61 lakhs and H1 revenue up 69% to ₹1,340.9 crore, outpacing the market.

• Opened 71 new stores in H1, reaching 259 stores and 2.8 million sq ft retail space; 275 stores as of the current quarter.

• Strategic focus on rural, Tier I, Tier II, and Tier III markets, with strong customer response to value-driven assortments and affordable fashion.

• Expansion in South India prioritized, with recent entries into Karnataka, Goa, and Andhra Pradesh; national presence targeted in 2–3 years.

• Unaudited standalone and consolidated financial results for Q2 and H1 FY26 were approved and reviewed by the Board and auditors.

Financial highlights

• Q2 revenue grew 86% year-on-year to INR 2,708.6 crore (pre-IND AS); consolidated Q2 revenue at ₹70,863.61 lakhs; H1 revenue up 69% to INR 1,340.9 crore.

• Q2 gross margin improved to 28%; H1 gross margin up to 28.7%.

• Q2 EBITDA rose 465% year-on-year to INR 44.4 crore (pre-IND AS); consolidated Q2 EBITDA at ₹85.4 Cr, margin at 12.1%.

• Q2 PAT surged to ₹17.2 Cr (up 990% year-on-year); H1 PAT up 191% to ₹41.9 Cr.

• SSSG for Q2 at 23.4% (normalized 10.3%); H1 SSSG at 13.3%.

Outlook and guidance

• Store addition target for FY26 raised from 100 to 130; 150 new stores planned for next year if metrics remain strong.

• Guidance for pre-IND AS EBITDA margin remains at 8% due to rapid expansion and new store ramp-up.

• Targeting 8–10% SSSG for mature stores over the next 18 months.

• ROE objective set above 20%; current ROE at 22.9% for H1.

• Focus remains on affordable, high-quality fashion and expanding retail footprint in Tier-II and Tier-III cities.