1. At a Glance
V2 Retail Ltd just turned its Tier-II and Tier-III empire into a profit-making catwalk. In Q2FY26, this budget-fashion warrior clocked₹708.6 crore in revenue (+86% YoY)and aPAT of ₹17.2 crore, marking a mind-blowing993% jump. The company’s EBITDA strutted up to ₹85.4 crore, as if retail therapy was suddenly India’s favourite national sport. The stock now trades at₹2,332, giving it amarket cap of ₹8,503 croreand aP/E of 85.4x— because apparently, affordability at the store doesn’t mean affordability on the stock market.
Operating with189 stores across 18 states and 130 cities, V2 is a small-town superstar with big ambitions — adding75 new storesin just nine months while quietly dropping two underperformers (RIP small-town outlet dreams). ROE stands at23.3%, ROCE at16.9%, and debt has ballooned to₹1,312 crore, which means they’re dressing India in EMIs. But credit where it’s due — the company raised₹400 crore via QIPat ₹2,134 per share in November 2025, proving that even mutual funds love a good kurta story.
2. Introduction
Remember “Vishal Megamart”? The giant that catered to the middle-class masses before collapsing under its own weight of discount tags? Well, it reincarnated asV2 Retail Ltd, and this time it’s doing better, leaner, and sassier. Incorporated in 2001, the company reinvented itself post-2011 after selling the Vishal brand, now proudly serving India’s‘neo-middle class’— basically, everyone who thinks Zara is aspirational but Flipkart sale is practical.
V2’s transformation isn’t just about cheap shirts and festive kurtas. It’s a turnaround saga of grit, inventory wizardry, and massive expansion intoTier-II and Tier-III cities— because that’s where Bharat really shops. The CEO might have quit in April 2025 (apparently, leading 189 stores isn’t for the faint-hearted), but the company didn’t skip a beat.
What drives this retail resurgence? A mix of smart merchandising, private labels, and strategic pricing that turns volume into victory. And yes, they still don’t pay dividends — because why share profits when you can open 100 more stores next year?
3. Business Model – WTF Do They Even Do?
In short, V2 Retail sellsfashion for everyone— men, women, kids, and the occasional fashion-confused uncle. It’s India’s small-town version of Reliance Trends, where affordability meets ambition. Theirstore networkcovers20.27 lakh sq. ft., and each store looks like a colourful battlefield of jeans, kurtas, and “Buy 1 Get 2” chaos.
Product Mix (9MFY25):
- Men’s Wear: 39%
- Ladies Wear: 27%
- Kids Wear: 25%
- Lifestyle Products: 9%
Translation? The men are spending the most, and kids are the real profit centers — because Indian parents never say no to one more frock.
The company’sprivate labels (Ebellia, Herrlich, Glamora, Godspeed, Honey Brats)account for35% of sales, with a target of hitting80% by FY26. Think of it as their version of “house brands,” except more stylish than Big Bazaar’s days.
And let’s not forget logistics: they’ve got their ownwarehouses in Gurgaon,manufacturing units in Noida and Bihar, andweekly restocking vehicleszipping across India — turning fashion supply into a well-oiled machine.
In short: V2 Retail doesn’t just sell apparel. It sells aspiration on a budget.
4. Financials Overview
| Metric | Latest Qtr (Sep 25) | YoY Qtr (Sep 24) | Prev Qtr (Jun 25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | ₹709 Cr | ₹380 Cr | ₹632 Cr | +86.5% | +12.2% |
| EBITDA | ₹85 Cr | ₹33 Cr | ₹87 Cr | +157% | -2.3% |
| PAT | ₹17.2 Cr | ₹1.6 Cr | ₹25 Cr | +993% | -31% |
| EPS (₹) | 4.98 | 0.46 | 7.13 | +982% | -30% |
Annualized EPS = ₹4.98 × 4 = ₹19.9 → P/E ≈ 2332 / 19.9 = 117x (P/E not meaningful? Maybe “Premium Enthusiasm”)
Commentary:When your revenue doubles but profits grow 10x, you know the pricing department deserves a raise. Q2FY26 was a blockbuster — festive season, better pricing, higher MRP sales (91% of total), and tighter cost control. QoQ decline in profit is more of a breather after Q1’s blowout — even Bollywood sequels need pacing.
5. Valuation Discussion – Fair Value Range
Let’s play valuation bingo.
a) P/E Method:
EPS (TTM): ₹28.8Industry P/E: 38.4Current P/E: 85.4
If sanity returns:
- Conservative (40x): ₹28.8 × 40 = ₹1,152
- Optimistic (70x): ₹28.8 × 70 = ₹2,016
Fair Value Range (P/E method):₹1,150 – ₹2,000
b) EV/EBITDA Method:
EV = ₹9,801 CrEBITDA (FY25) = ₹342 CrEV/EBITDA = 28.6x
If rerated to peer range (Trent ~30x, ABFRL ~22x):
- Conservative: 22×342 = ₹7,524 Cr EV
- Optimistic: 30×342 = ₹10,260 Cr EV
Equity Value ≈ EV – Debt = (7,524–1,312) to (10,260–1,312)Fair Value Range ≈ ₹6,200–₹8,900 Cr→Per Share ≈ ₹1,700 – ₹2,450
c) DCF (simplified assumption)
Let’s say 25% growth for 3 years, terminal 5%, discount 12%.Rough DCF value band:₹1,800 – ₹2,300
Educational Fair Value Range: ₹1,150 – ₹2,300This range is for educational purposes only and is not investment advice.
6. What’s Cooking – News, Triggers, Drama
V2 Retail has been a headline factory lately.
- ₹400 Cr QIP (Nov 2025):Raised at ₹2,134 per share — a big flex that even FIIs couldn’t ignore. This infusion means more store openings, more mannequins, and possibly fewer sleepless nights for lenders.
- CEO Resignation (Apr 2025):Manshu Tandon quit “due to personal reasons.” Translation: either burnout or too many store inaugurations.
- Store Expansion:75 new stores in 9 months, total 189 active, with plans to hit 289 by FY26. Someone please tell them not every district needs one.
- ICRA Rating Upgrade:From “BBB (Stable)” — basically, a polite way of saying “you’re not junk anymore.”
- Private Label Ambition:They’re chasing 80% private label revenue — because margins look better when you sew your own shirts.
What’s next? Expect higher fashion per square foot and maybe a slow transition into e-commerce relevance — once “V2Kart” stops being a ghost town.
7. Balance Sheet – The Fabric of Finance
| Item (₹ Cr) | Mar 2024 | Mar 2025 | Sep 2025 |
|---|---|---|---|
| Total Assets | 1,027 | 1,599 | 2,387 |
| Net Worth | 275 | 347 | 387 |
| Borrowings | 525 | 850 | 1,312 |
| Other Liabilities | 227 | 403 | 688 |
| Total Liabilities | 1,027 | 1,599 | 2,387 |
