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V2 Retail Ltd
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NSE: V2RETAIL BSE: 532867 INE945H01021 Consumer Discretionary Consumer 🔎 Screen
Microcap 250
₹6,158 Cr
Market Cap
33.3
P/E
0.26
PEG
19.5%
ROCE
23.7%
ROE
1.10
D/E
15.7%
OPM
-34.9%
% from 52W High
1
α RS
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Ratio Health
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About

Company primarily operates in Tier-II and Tier-III cities, with a chain of “V2 Retail” stores offering apparel and general merchandise, catering to the entire family.

✓ Strengths 3
  • Company is expected to give good quarter
  • Company has delivered good profit growth of 72.6% CAGR over last 5 years
  • Company's median sales growth is 33.6% of last 10 years
! Concerns 1
  • Though the company is reporting repeated profits, it is not paying out dividend
Key Ratios Snapshot
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📈 Growth Pattern
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3-Statement Financial Model
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Mixed — revenue/PAT grew strongly (+58%/+70%), but gross margin fell 90bps and sales per sq ft declined, signaling growth is increasingly new-store-led rather than like-for-like. quarter Investor Presentation One-Pager? Jun 2026
Revenue
₹997.2 Cr
+58% YoY vs ₹632.2 Cr
EBITDA Margin
14.0%
+20bps YoY vs 13.8% (Ind AS); pre-Ind AS margin was only 8.0% vs 8.3%
PAT
₹41.9 Cr
+70% YoY vs ₹24.7 Cr; PAT margin 4.2% vs 3.9%
Key Metric
Same-store sales growth ~7.5%
Volume +56%; PSF ₹886/month vs ₹960 in Q1FY26
What Went Right
  • Revenue from operations jumped 58% YoY to ₹997.2 Cr, with volume growth of 56%.
  • Ind AS EBITDA rose 60% YoY to ₹139.5 Cr; EBITDA margin improved to 14.0% from 13.8%.
  • PAT grew 70% YoY to ₹41.9 Cr; pre-Ind AS PAT grew 64% to ₹50.2 Cr.
  • Network expanded by 56 net stores to 381 stores, retail area ~40.7 lakh sq ft; net working capital days improved to 74 from 81 in FY26.
  • Average bill value rose to ₹941 from ₹901 (+4.4%).
What to Watch
  • Gross margin contracted 90bps YoY to 28.6% from 29.5%; full-price/MRP sales fell to 90% of sales from 92%, indicating discounting or mix pressure.
  • Sales per sq ft fell 7.7% YoY to ₹886/month from ₹960, and same-store sales growth was just ~7.5% despite 56% volume growth — mature-store productivity is weak.
  • Pre-Ind AS EBITDA margin was only 8.0%, down from 8.3% and far below the Ind AS 14.0%; lease-capitalization accounting inflates reported operating profitability.
  • Employee expenses rose 53% YoY to ₹80.3 Cr and other expenses rose 41% to ₹65.3 Cr, outpacing gross profit growth of 53%.
  • Finance cost increased ~10% YoY to ₹25.0 Cr; FY26 inventory more than doubled to ₹1,142 Cr from ₹558 Cr, and FY26 operating cash flow was negative at ₹103 Cr.
Investor Lens
V2's value-retail expansion thesis remains intact — revenue +58%, volume +56%, and 57 new stores opened — but Q1 quality is weaker than the headline suggests. SSG of ~7.5% and a 7.7% drop in PSF show that new stores are driving growth while existing stores stagnate. Gross margin compression of 90bps and lower full-price sales point to pricing/discounting stress. Investors should use pre-Ind AS EBITDA margin of 8.0% as the real profitability gauge, not the Ind AS 14.0%. Watch next quarter for SSG trend, PSF recovery, gross margin stability, and working capital/inventory days, especially after FY26 operating cash flow came in at -₹103 Cr.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Revenue jumps 58% YoY to ₹997 Cr; PAT up 50%, strong festive quarter
Revenue
Revenue for Jun 2026 quarter came in at ₹997.0 Cr, up 58.3% YoY and 24.9% QoQ. This indicates strong demand momentum and healthy store/same-store growth.
Profitability
Net profit rose 50.0% YoY to ₹42.0 Cr, accelerating 133.3% QoQ. EPS improved to ₹1.15 from ₹0.80 a year ago.
Margins
Operating profit margin held steady at 14% despite rapid growth, showing operating leverage offsetting costs. Absolute operating profit rose 55.6% YoY to ₹140.0 Cr.
Balance Sheet
Debt-to-equity stands at 1.1x, indicating meaningful leverage. ROCE of 19.5% and ROE of 23.7% suggest decent capital efficiency despite the leveraged balance sheet.
Key Risks
High valuation with PE of 47.88 leaves little room for error. Elevated interest expense of ₹25.0 Cr and depreciation of ₹64.0 Cr add fixed-cost burden. D/E of 1.1x raises sensitivity to borrowing costs or demand slowdown.
Outlook
Sustained 50%+ PAT growth and strong QoQ acceleration suggest favorable demand conditions. However, margin stability at 14% will be key to maintaining profitability as the company scales.
Generated by AI · Jun 2026 results · Not investment advice
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