V2 Retail (V2RETAIL) Q4 24/25 earnings summary

Executive summary

• Achieved consolidated revenue of ₹1,884.5 crore in FY25, up 62% year-over-year, with PAT at ₹72 crore, a 159% increase, and EBITDA at ₹257.8 crore, up 74% with 13.7% margin; Q4 FY25 revenue grew 68% to ₹498.5 crore.

• Same-store sales growth (SSSG) was 29% for FY25, following 31% in FY24, with volume growth at 43%.

• Store network expanded to 189 by March 2025, with 74 new stores added and 2 closed, operating in 150+ cities and 20 states.

• 85% of business is private label, with in-house design products contributing 35%-40% and targeted to reach 60% by summer 2026.

• Audit reports for FY25 carry a qualified opinion due to ongoing reconciliation of physical verification of property, plant, and equipment.

Financial highlights

• FY25 gross profit increased 59% to ₹551.3 crore; gross margin at 29.3%.

• Full-price sales increased to 89% from 87% in FY24.

• ROE improved to 23.2% in FY25 from 10.7% in FY24.

• Sales per sq ft rose to ₹1,017/month from ₹854/month last year.

• Old inventory (>1 year) reduced from 18% to 5%.

Outlook and guidance

• FY26-27 revenue growth guided at 45%-50%, driven by new stores and 8%-10% SSSG.

• EBITDA margin guidance at 8%-9% (pre-index).

• Plan to open 100 stores annually for the next 4-5 years, targeting 600-700 stores.

• No external funding needed for current expansion; internal accruals sufficient.

• Management highlights robust growth momentum and focus on value-driven fashion.