V2 Retail · risk themes across the available quarters.
Bear-case history
Working capital days increased from 37 to 69 due to ₹300 crore vendor prepayments using QIP proceeds. As funds are deployed for capex, payable days will revert to 55-60 days, potentially impacting supplier relationships and gross margin benefits from bill discounting.
With less than 20 of 304 stores in markets without organized competition, rivalry has become the norm. Management claims 95%+ locations show 30% higher PSF than peers, but sustained competitive pressure could pressure margins or require increased promotional spend.
New stores performing at 61% of mature store productivity (730 vs 1,200 PSF) will continue to drag blended metrics as expansion accelerates. With 116 new stores in FY26 and 150 planned for FY27, blended PSF maintenance at ₹1,000 requires mature store outperformance.
Current CEO Akash Agarwal continues to handle day-to-day store operations despite headcount growing to 600+ at HO. Management acknowledged actively seeking a new CEO, indicating potential execution risk during transition planning.