V2RETAIL Q3 FY26 earnings call.
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Revenue
₹929 Cr
verified against source
Revenue YoY
57%
reported change
EBITDA
₹126 Cr
latest reported figure
Source
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record provenance
Actual signal trajectory
Where this quarter sits.
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What the record says.
V2 Retail delivered exceptional Q3 FY26 results with 57% YoY revenue growth to ₹929 crore, driven by 105 new store additions in 9M and robust same-store performance. The company raised ₹400 crore via QIP to fund expansion, with 304 stores operational as of today. Pre-index EBITDA grew 50% YoY to ₹126 crore (13.5% margin), while PAT stood at ₹82 crore, up 47%. Full-price sales contributed 92%, indicating strong pricing power and reduced discounting dependence. Management targets minimum 50% revenue growth and 150 new stores for FY27, maintaining 8-10% SSG guidance. New stores are ramping faster than historical norms at 730 rupees PSF versus mature stores at ₹1,200. The lease accounting change (aligned with peers) resulted in ₹27.69 crore exceptional gain but did not affect pre-index economics. Working capital normalization is expected as QIP proceeds are deployed for capex, with payable days reverting to 55-60 days. Key risks include intensifying competition in value fashion and margin pressure from high new-store mix.
Colored figures show movement against the previous available record.
Guidance to track
- Management maintained aggressive growth targets for next fiscal year, supported by store expansion pipeline and robust demand momentum.
- Company plans to add 150 net new stores in FY27, consistent with current year's pace, with average store size of 10,000-11,000 sq ft and total investment of ₹2.4-2.5 crore per store.
- Same-store sales growth guidance of 8-10% for FY27, with mature stores expected to deliver 5-6% SSG and newer cohorts at higher levels, blending to mid-single digit.
- Company targets maintaining blended PSF at ₹1,000 per sq ft even while adding 50% more retail area annually, with head office costs expected to decline to ₹15-16 PSF from current ₹26-27.
Risks flagged
- 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.
Key quotes
- Our older stores this year have already touched ₹1,200 rupees per square feet of sale, which was a next ideal milestone for our business. And all the new stores that we opened last year as well as all the new stores we have opened this year, both cohorts are performing better than ₹720-730 per square feet of sale.
- Pure online cannot deliver the same value that we're delivering just because of additional cost associated with online only players. Our cost of retailing is around 18 to 19% whereas for pure online players logistic cost itself is around 65 to 70 rupees if you move goods from state to state.
- The benchmark that we use for newer stores is they should be within 30% sales PSF of older stores. Our mature stores are already at ₹1,200 PSF. So the new stores contributing to EBITDA from the first month of operations itself is very encouraging.
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