V2RETAIL

Scales National Footprint with Strong Unit Economics and Winter-Led Margin Gains

posted a stellar Q2FY26, with 86.5% YoY revenue growth and expanding margins driven by strong same-store sales, disciplined pricing, and accelerated store additions. With robust unit economics and geographic scalability, the company is transitioning into a national value-fashion player with long-term growth visibility. Revenue surged to ₹709 crore, up 86.5% YoY, supported by 23.4% SSSG and disciplined full-price sell-through. Gross margin rose to 28%, aided by operating leverage and a higher mix of winter-wear, which contributed 55% of revenue and carries superior margins. V2 added 43 stores in Q2 and 16 more in early Q3, reaching 275 outlets. FY26 guidance was upgraded to 130 new stores, with FY27 potential at 150. New markets like Maharashtra, Gujarat, and southern states are performing within 2% of core productivity, validating the format’s portability. Over-one-year stock dropped from 24% to below 4%, with slow movers marked down within two weeks. Attribute-level analytics now inform 60–70% of new-season designs. In-house design mix is being scaled from 35% to 40–45%, with throughput consistency as a key criterion. The ₹400 crore QIP is enhancing backend efficiency and vendor economics. Prepaid supplier terms yield 1.5–2% monthly discounts, improving margins. Vendor stickiness is rising, with 15–20 partners working exclusively with V2 under tighter credit cycles. New stores open at ₹750–800 PSF, well above the ₹500 breakeven, with most profitable in month one. Mature stores operate near ₹1,100 PSF. FY26 revenue growth is guided at 45–50%, with EBITDA margins in the 8–9% range, tempered by new store mix.