📌 At a glance
V2 Retail (NSE: V2RETAIL) has just mic-dropped on every retail bear out there.
📈 FY25 Revenue up 62% to ₹1,884.5 Cr
💰 FY25 PAT up 159% to ₹72 Cr (highest ever!)
🧮 EBITDA up 74% to ₹257.8 Cr
🛍️ Same Store Sales Growth (SSG): 29%
🧵 PSF (Per Sq. Ft Sales): ₹1,017
📦 Volume Growth: 43%
🏬 Store count: 189 (Net +72)
And all this in a year where most retailers were crying into their unsold inventory. V2 is now not just selling cheap — it’s selling smart, scaling fast, and smashing records.
🧾 Key Financials
| Metric | FY25 | FY24 | YoY Growth |
|---|---|---|---|
| Revenue (₹ Cr) | 1,884.5 | 1,164.7 | +62% |
| EBITDA (₹ Cr) | 257.8 | 147.8 | +74% |
| EBITDA Margin | 13.7% | 12.7% | +100 bps |
| PAT (₹ Cr) | 72.0 | 27.8 | +159% |
| Gross Margin | 29.3% | 29.7% | Slight dip |
Q4 FY25 Snapshot
| Metric | Q4 FY25 | Q4 FY24 | YoY |
|---|---|---|---|
| Revenue | ₹498.5 Cr | ₹296.0 Cr | +68% |
| EBITDA | ₹57.8 Cr | ₹31.4 Cr | +84% |
| PAT | ₹6.4 Cr | ₹3.6 Cr | +79% |
| EBITDA Margin | 11.6% | 10.6% | ↑ |
| Gross Margin | 27.6% | 28.0% | ↓ |
🧠 Translation: Margins held strong despite inflation, and they’re opening new stores like they’re rolling out momos in Delhi lanes.
📍 What’s Working for V2?
- Rural + Tier 2/3 focus → underserved markets = goldmine
- Product pricing + design mix → high acceptance, low return rate
- Rapid Expansion → +74 stores opened in FY25
- Strong Backend Team → merchandisers, designers, inventory gurus
- High MRP Contribution → 89% in FY25 vs 87% in FY24 = premiumisation
🧑💼 CMD’s Word: Ram Chandra Agarwal says…
“This is our best-ever year. The value-focused strategy is working. We’ve gone where others didn’t, offered what others couldn’t, and scaled what others feared. And yes, we’re just getting started.”
That’s right. While others were busy rebranding or cutting costs, V2 doubled down on what works — cheap fashion that doesn’t feel cheap.
📦 Inventory Mastery + Regional Wisdom = Secret Sauce
- Localized collections for every state.
- Curated supply based on regional preferences (Jharkhand vs Punjab vs Assam).
- No Zara vibes, all Pragati Maidan practicality.
- Volume-based play + thin margins = scalability.
It’s the DMart logic applied to apparel.
⚠️ Risks to Watch
| 🚨 Risk | Why It Matters |
|---|---|
| Shrinking Margins | Gross margin dipped slightly — if input costs rise, pressure will build |
| Expansion Overreach | 74 stores added — if demand slows or new stores underperform, pain awaits |
| Fashion Cycle Volatility | Fast fashion can go out of fashion fast (ask Shein or Westside) |
| Market Sentiment | Lower circuit today (-5%) hints that valuations might be ahead of fundamentals |
🧮 EduInvesting Take
“They went from retail therapy to retail domination in one fiscal year.”
What Reliance Trends wants to be in Tier 1, V2 is becoming in Tier 3.
The company’s “value + reach + variety” pitch is connecting with India’s booming aspirational class, especially in small towns.
While the stock is in lower circuit today at ₹1,876.60 — blame market mood — the fundamentals are dancing in a wedding baraat.
🧱 Expansion Outlook
- 29 new stores added in Q4 alone
- Plan to expand across Bihar, UP, Odisha, Assam, and Chhattisgarh
- Focus on high-volume small-format stores with fast replenishment cycles
- Continued focus on enhancing in-store experience and product mix
They aren’t just selling clothes. They’re selling affordable identity in small-town India.
🎯 Final Verdict
✅ 159% PAT growth
✅ Industry-leading SSG
✅ 29 new stores in 90 days
✅ All-time high revenue and profit
🚨 5% drop in stock price
Itna sab kar ke bhi market punish kare toh samajh jao – ya toh expectations were too high, or this is a temporary dip to accumulate quietly.
Either way, V2 Retail has become one of the hottest value fashion retailers in the country, and the numbers aren’t just growing — they’re compounding confidence.
🗓️ Published: May 28, 2025
✍️ By: Prashant Marathe
Tags: V2 Retail Results, Q4 FY25, Retail Sector India, Value Fashion India, Tier 3 Retail Growth, Smallcap Earnings, V2RETAIL Stock, EduInvesting
