V2 Retail LimitedRetailV2RETAIL
Q1 FY27 concall · earnings callV2 Retail Limited
V2 Retail delivered exceptional 58% revenue growth in Q1 FY27, driven by robust volume growth, disciplined network expansion, and improved profitability, underscoring strong momentum in India's value fashion segment.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Revenue | ₹997 Cr | 58% | |
| EBITDA | ₹139.5 Cr | 60% | |
| Profit After Tax | ₹41.9 Cr | 70% | |
| Gross Margin | 28.6% | — | |
| EBITDA Margin | 14% | — | |
| Store Count | 381 | — | |
| SSSG | 7.5% | — |
Financials
From filed quarterly results. YoY and QoQ compare each metric on the same accounting basis.
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹590.94 Cr+58.1% YoY+55.5% QoQ | ₹51.19 Cr+117.2% YoYTurned profitable QoQ | ₹14.80+117% YoYTurned positive QoQ |
| Q2 FY25 | ₹380.01 Cr+64.3% YoY-8.4% QoQ | ₹-1.93 CrLoss narrowed YoYTurned loss-making QoQ | ₹-0.56Loss/share narrowed YoYTurned negative QoQ |
| Q1 FY25 | ₹415.03 Cr+57.4% YoY+40.2% QoQ | ₹16.34 Cr+161.9% YoY+353.9% QoQ | ₹4.72+160.8% YoY+353.8% QoQ |
| Q4 FY24 | ₹296.04 Cr+53% YoY-20.8% QoQ | ₹3.60 CrTurned profitable YoY-84.7% QoQ | ₹1.04Turned positive YoY-84.8% QoQ |
| Q3 FY24 | ₹373.76 Cr+56% YoY+61.6% QoQ | ₹23.57 Cr+152.9% YoYTurned profitable QoQ | ₹6.82+151.7% YoYTurned positive QoQ |
TL;DR
- Revenue grew 58% year-on-year to INR997 crores.
- EBITDA grew 60% year-on-year to INR139.5 crores.
- Net profit grew 70% year-on-year to INR41.9 crores.
- Added 56 net new stores, taking total to 381.
- Same-store sales growth (SSSG) was 7.5%.
- Full price sales contributed approximately 90% of sales.
Said on the call
“We delivered an amazing 58% year-on-year revenue growth in the first quarter while maintaining healthy returns.”
From the Q&A
| Topic | What management said |
|---|---|
| Price Hikes and Volume Impact | Management confirmed raw material cost inflation will lead to a 4% to 5% price increase from Q3 onwards; historically, such hikes have impacted volumes slightly but are offset by higher ASP, leaving value growth largely unaffected. |
| Store Expansion and Funding | Remains on track to open 170-200 stores this year; funding will come from internal accruals, releasing working capital by normalizing creditor days, and potential bank debt, with no immediate need for a QIP. |
| Gross Margin Contraction | Attributed the Y-o-Y gross margin decline to Adhik Maas impacting full price sales (down to 90% from typical 92-93%) and fewer wedding dates; guidance for gross margins remains 29% to 30% going forward. |
| New Store Performance | New stores sales per square foot are about 34% less than mature stores; newer stores' SSSG is about 2.3% higher than old stores in Q1; overall new store cohort is performing at a 'respectable' level of INR730-740 per sq. ft. |
| Customer Experience Initiatives | In response to feedback on billing queues and staff behavior, management is piloting an NPS link sent post-purchase, linking store incentives to NPS scores, and using AI on CCTV to alert managers of long queues for immediate action. |
| Demand Environment and Outlook | Management stated it's too early to gauge full-year demand as bulk of sales occur during the festive season (Oct-Nov); current months (Jul-Aug) are in line with expectations. Full-year SSSG guidance is 8% to 10%. |
| Operating Leverage | Management noted that while new stores operate at 65-70% of old store profitability, aggressive expansion (adding >50% new area) makes EBITDA margin expansion challenging; leverage will kick in once growth rate normalizes. |
Guidance
- Revenue growth guidance of at least 50% for the year.
- Same-store sales growth (SSSG) guidance of 8% to 10% for the year.
- Gross margin guidance of 29% to 30%.
- Target to open 170 to 200 new stores in FY27.
- Aim to maintain inventory at around 100 days and creditors at 45 to 50 days.
- New stores have a payback period of about 2.5 to 3 years.
Source
Summary written from the transcript filed by V2 Retail Limited for the call held on 14 Aug 2026; published 19 Aug 2026, 10:00 IST.
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