AI-generated · cited to primary sources · not investment advice
V2 Retail (532867) Jun 2026 Filing Analysis
Does management do what it says?
The company plans to open 30% to 40% of new stores in newer regions and 50% to 60% in core strong regions. — target: 30-40% new regions / 50-60% core regions (+1 more commitment)
“So, we are looking to open 30% to 40% new stores in the newer regions that we have entered. And of course, 50% to 60% will come from our core strong regions.”
Capex per store is expected to be approximately Rs. 1.2 crores to Rs. 1.3 crores, with total store investment (including inventory) at Rs. 2.7 to 2.8 crores. — target: Rs. 1.2-1.3 crores (Capex) (+2 more commitments)
“It's about Rs. 2.6 crores and it will increase because of the price increase. So, it will become around Rs. 2.7 crores-Rs. 2.8 crores now. That includes CAPEX and inventory. So, the CAPEX would be about Rs. 1.2 crores-Rs. 1.3 crores and the rest would be paid inventory.”
The company is executing a strategy to democratize fashion by offering high-quality, trendy apparel at affordable prices across all tiers of cities. (+3 more commitments)
“Our mission is to democratize fashion by offering high-quality, trendy apparel at affordable prices to value conscious consumers across all tiers of cities”
See the full cited Management analysis of V2 Retail
How durable is the business?
Women's wear (Ladies Wear) share expanded from 27% to 29% of the total revenue mix, showing strong growth momentum. (5 expanding across 3 engines)
“Men's would be about 41%-42%. Women's wear is about 27%. And kids is about 25%.”
V2 Retail is aggressively expanding its footprint, opening 28 stores in Q1 FY26 and targeting 100-120 net additions for the full year. Expansion is diversifying into 25 states, with 20-25% of new stores in 'virgin' or newer geographies. (5 expanding)
“Importantly, our current store footprint has crossed 350 stores nationwide, marking a major milestone in our journey.”
Operational efficiency is improving as Net Working Capital days reduced from 37 days in FY25 to 34 days in Q1 FY26, enhancing cash flow. (2 expanding)
“We want to be the best paymasters in the industry. And we want to be the priority vendor for all our suppliers. And we want to work them, help them with their working capital.”
Revenue grew by 52% YoY, driven by massive volume growth of 50%. The company is leveraging its scale to improve EBITDA margins through operating leverage as head office and warehouse costs are distributed over a larger store base. (3 expanding)
“We are now focusing on retail business only and have moved away from in-house manufacturing operations... Revenue for the 4th Quarter grew at 60% year-on-year to Rs. 797 crores.”
V2 Retail continues its aggressive geographic expansion within India, now operating across 21 states and 165+ cities. (2 expanding)
“So, we are looking to open 30% to 40% new stores in the newer regions that we have entered. And of course, 50% to 60% will come from our core strong regions.”
See the full cited Business Model analysis of V2 Retail
Where does growth come from?
The company is accelerating its store expansion plans. After opening 72 stores in FY25, they are targeting 100-120 stores for FY26, with a potential increase to 150 stores if performance remains strong. They have already added 28 stores in Q1 FY26 and 9 more in July. (5 accelerating across 5 signals, 2 leading indicators)
“I think for this year, the target would be anywhere between 170-200 stores, completely dependent on how we are performing and how the momentum continues.”
Volume growth is accelerating, reaching 50% in Q1 FY26 compared to 43% for the full year FY25. (3 accelerating, 2 steady across 5 signals)
“Revenue for the 4th Quarter grew at 60% year-on-year to Rs. 797 crores.”
The company maintains a highly efficient store model where new stores break even from the very first month of operations. (2 steady across 2 signals)
“So, it is EBITDA positive from the first month itself, because the breakeven point is around Rs. 500 per square feet of sale.”
Average Bill Value is showing a steady upward trend, increasing from Rs. 859 in FY25 to Rs. 901 in Q1 FY26. (4 steady, 1 accelerating across 5 signals)
“ABV was ₹ 925 in Q4FY26 as compared to ₹ 877 in Q4FY25.”
Revenue growth is accelerating significantly, with Q2 FY26 growth of 86% outpacing the H1 FY26 average of 69%. (5 accelerating across 5 signals)
“No, we are guiding for at least 50% revenue growth over the next 2 years.”
See the full cited Future Growth analysis of V2 Retail
What could break the thesis?
Trajectory is INTENSIFYING. Management has increased the expansion target from 100 stores to 120-130 stores for FY26, and potentially 150 stores for FY27, following the QIP. This increases the pressure on management bandwidth and supply chain. (5 intensifying)
“325 Stores at the end of FY26 (Opened 139 & Closed 3)”
The risk is intensifying. Same Store Sales Growth (SSG) has dropped to ~5% in Q1 FY26, down from 8.6% in FY26 and 29% in FY25. (4 intensifying, 1 easing)
“Same Stores Sales Growth (SSG) ... 8.6% FY26 [vs] 29.0% FY25”
Store productivity is deteriorating. Sales per square feet (PSF) per month dropped to ₹ 794 in Q4 FY26 from ₹ 896 in Q4 FY25. On a full-year basis, PSF fell from ₹ 1,017 in FY25 to ₹ 925 in FY26. (1 intensifying, 2 easing, 2 stable)
“we opened 130 new stores and the new stores started about 70% of old stores per square feet sale... because we have opened so much new area this year, it gets the overall company per square feet sale down.”
The risk is intensifying as Net Working Capital (NWC) days have surged to 81 days in Q4 FY26, nearly doubling from 45 days in FY25. This is driven by a deliberate strategy to hold more inventory for existing stores and upcoming store launches. (1 intensifying, 4 easing, 1 high-severity)
“NWC days stood at 81 days compared to 45 days in FY25, The increase was primarily on account of increase in inventory holding to ensure seamless availability for existing stores and planned store additions”
Consolidated Net Cash from Operating Activities has turned positive at ₹ 223.0 Cr for 9M FY26, a significant reversal from the negative trend previously noted. (1 resolved, 1 stable, 1 high-severity)
“Cash generated from operations ... FY2026 (51) ... FY2025 226”
See the full cited Risk analysis of V2 Retail
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