1. At a Glance – The “Gaon se Dalal Street tak” Story
V2 Retail is what happens when Tier-II and Tier-III India decides malls are overrated and value fashion is king. As of Q3 FY26, the company is sitting on a market cap of ₹7,797 crore, trading at ₹2,120, after a volatile few months that included a –13.5% return over 3 months and a +25% run over 6 months. Classic Indian retail drama.
The latest quarter? Absolute fire. Q3 revenue came in at ₹929 crore, up 57% YoY, while PAT jumped to ₹102 crore, a spicy 59% YoY growth. Operating margins clocked in at ~19%, which is not normal for a mass-market apparel retailer unless inventory discipline and pricing power have finally shaken hands.
The company now operates 189 stores across 130 cities, added 75 stores in 9M FY25, and is basically carpet-bombing North and East India with affordable fashion. ASPs, ABVs, PSF metrics—everything is moving in the right direction. Debt is high, valuation is richer than most relatives at a wedding, but growth is undeniable.
So the big question: Is this a structurally improved retailer or just a good fashion season?
Let’s dig in.
2. Introduction – From Vishal Ka Hangover to V2 Ka Comeback
V2 Retail’s story starts like many Indian retail horror movies. Incorporated in 2001, listed in 2007, expanded aggressively, then face-planted so hard that it had to sell the “Vishal” brand in 2011 just to survive. That phase wiped out equity, confidence, and probably a few CFOs’ sleep cycles.
Post-2011, the company rebooted as V2 Retail, pivoted towards the “neo middle class”—people who want style but still check price tags thrice. Instead of chasing metros, V2 went where consumption was quietly compounding: Tier-II and Tier-III cities.
For years, it limped. Margins were thin, debt was heavy, and growth was patchy. Then something changed around FY23–FY25. Store economics improved, private labels scaled up, working capital tightened, and suddenly… profits started sticking.
By FY25, revenue crossed ₹1,884 crore, and TTM sales now stand at ₹2,769 crore with PAT of ₹150 crore. That’s not
a turnaround—that’s a resurrection arc.
But retail is cruel. One bad season and inventory laughs at you from warehouses. So let’s see what exactly V2 is selling—and why it’s selling.
3. Business Model – WTF Do They Even Do?
At its core, V2 Retail is a value fashion department store. Think affordable clothes for the entire family, parked right where malls don’t exist but aspirations do.
What they sell:
- Men’s wear (39%) – breadwinner money, safest bet
- Ladies wear (27%) – higher margin, trend-sensitive
- Kids wear (25%) – recession-proof, festival-proof
- Lifestyle products (9%) – deodorants, wallets, sunglasses (impulse buys)
How they sell:
- MRP-driven sales (91%) – discount control = margin protection
- Average Selling Price: ₹293 (up from ₹263)
- Average Bill Value: ₹853 (up from ₹798)
- Sales per sq. ft per month: ₹1,069 (vs ₹862 last year)
Translation? Customers are buying more items per visit, at higher prices, in smaller cities. That’s the holy trinity of retail.
The real sauce, however, is private labels. Currently 35% of revenue, targeted to hit 80% by FY26. That’s ambitious, slightly scary, but extremely margin-accretive if executed well.
Would you trust a retailer to design, manufacture, and sell fashion at scale? V2 thinks yes—and they’ve built capacity to back it up.
4. Financials Overview – Growth with Receipts
Q3 FY26 Performance Table (₹ crore)
| Metric | Latest Qtr | YoY Qtr | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 929 | 591 | 709 | 57.2% | 31.0% |
| EBITDA | 174 | 111 | 85 | 56.8% | 104.7% |
| PAT | 102 | 51 | 17 | 100.0% | 500%+ |
| EPS (₹) | 27.99 | 14.80 | 4.98 | 89.1% | 462% |
Annualised EPS (Q3 rule):
Average of Q1,
