V2 Retail Q1 FY26 Concall Decoded: – Revenue up 52%, PAT zooms 62%, but PSF falls 9% despite 28 new stores
1. Opening Hook
Retailers are crying slowdown, but V2 Retail showed up like a discount flash sale—52% revenue growth, 62% PAT surge, and 28 new stores in a single quarter. Yet, per square feet sales dipped, reminding us that not every shiny new outlet is a blockbuster.
Stick around—because dilution, debt, and hyper-growth ambition turn this into more than just a fashion story.
2. At a Glance
Revenue up 52% – Growth stitched from volume + ASP mix.
EBITDA up 63% – Margins tailored tighter than factory rejects.
EBITDA margin at 8.3% – The 10% runway still feels like Milan, far away.
PAT up 62% – Shareholders grinning like mannequins in showroom windows.
ROE at 27.5% – From 10% in FY24, now wearing luxury-brand returns.
Store count: 225 – 28 added, 1 closed; rollout faster than a Zudio lease signing.
PSF fell 9% – New stores still adjusting their trial rooms.
3. Management’s Key Commentary
CEO Akash Agarwal: “52% revenue growth validates our strategy.” (Translation: Tier-2 wallets are still open for ₹300 kurtas.)
On QIP fundraise: “₹400 cr from strength, not weakness.” (Translation: Dilution hai, par confidence ka overdose bhi hai.)
On competition: “Retail is crowded, but Tier 2/3 has space.” (Translation: Zudio can’t eat every vadapav market yet.)
On breakeven: “New stores hit breakeven from month one.” (Translation: Sales not sky-high, but lights and AC bills paid.)
On omnichannel: “Exploring tech partners; online won’t cross 5%.” (Translation: Don’t expect a shopping app anytime soon.)
