V2 Retail (V2RETAIL) Q2 26/27 earnings summary

Executive summary

• Q2 revenue rose 28% YoY to Rs 90,559.98 lakh, entirely volume-led; H1 revenue grew 42% to Rs 1,90,279.63 lakh, supported by 106 H1 store openings.

• Q2 SSSG was -14.9% reported and +0.5% normalized for the festive-calendar shift; H1 calendar-basis SSSG was -3.7%.

• FY27 revenue growth guidance remains above 50%; H2 store additions are planned at 60-70 as management seeks recovery in SSSG and sales per sq. ft.

Financial highlights

• Q2 revenue from operations was INR 905.6 crore; gross profit was INR 281.3 crore, up 42% YoY, with gross margin of 31.1% versus 28.0%.

• Q2 Ind AS EBITDA rose 41% to INR 120.3 crore; pre-Ind AS EBITDA was INR 53.4 crore, up 20%; net profit was Rs 1,821.32 lakh versus Rs 1,723.06 lakh.

• H1 gross profit rose 47% to INR 566.4 crore, with gross margin of 29.8%; Ind AS EBITDA rose 50% to INR 259.7 crore.

• H1 pre-Ind AS EBITDA rose 37% to INR 132.8 crore and PAT rose 43% to Rs 6,006.46 lakh; pre-Ind AS PAT was INR 74.3 crore, up 33%.

Outlook and guidance

• FY27 revenue growth guidance is above 50%, with H2 growth near 60%; existing stores are targeted to deliver 7%-9% SSSG, with new stores contributing the balance.

• Management targets FY27 SSSG of 5%-7%, including a Q3 normalized target of 5%-7%, against H1 calendar-basis SSSG of -3.7%.

• Full-year gross margin target is 29%-30%; pre-Ind AS EBITDA margin target is 7%-8%, with H2 expected at least 8% and full-year above 7.5%.

• H2 openings are planned at 60-70 stores; FY28 plans are 120-150 stores, subject to Q3 performance, with a possible reduction to 100 if demand remains weak.