V2 Retail Eyes Aggressive Expansion After FY26 Revenue Surpasses ₹3,000 Crore

Consolidated Revenue (FY26): ₹3,067 crore
Consolidated Revenue (Q4 FY26): ₹797 crore

Reader Takeaway: High growth via store expansion; audit resolution is positive, but margin pressures loom.

What just happened

V2 Retail Ltd announced its fourth-quarter and full-year earnings for FY26, reporting a consolidated revenue of ₹3,067 crore for the fiscal year, and ₹797 crore for the fourth quarter. The company also disclosed the resolution of a prior audit qualification related to Property, Plant, and Equipment verification, which involved a ₹5.77 crore asset write-off. Looking ahead, V2 Retail has set an ambitious target of opening 170-200 new stores in FY27 and projects revenue growth of 50% over the next two years.

Why this matters

The financial results showcase significant growth, with revenue increasing over 60% for two consecutive years. The resolution of the audit qualification removes a governance overhang that could be perceived positively by investors. The aggressive store expansion plan indicates confidence in future growth, while the target of 50% revenue growth over two years signals strong forward momentum.

The backstory

V2 Retail operates a retail chain, with its store count reaching 325 by the end of FY26, having added 136 new stores during the fiscal year. The company has been focusing on expanding its retail footprint and simplifying its business model by discontinuing in-house manufacturing to concentrate solely on retail operations. The previous audit qualification concerning PPE verification had been a point of attention for stakeholders.

What changes now

The write-off of ₹5.77 crore addresses the prior audit qualification, clearing a procedural hurdle. The aggressive store opening plan of 170-200 stores in FY27 is a key strategic move to drive future revenue. Management's guidance for 50% revenue growth over the next two years suggests a continuation of its high-growth trajectory. The company is funding its expansion through internal accruals, maintaining healthy debt-equity ratios.

Risks to watch

Management anticipates a potential impact on volume growth due to a planned 3%-4% price increase for customers to counter commodity inflation. Additionally, May sales were noted as being "a little slow" compared to preceding months, a trend that warrants monitoring. The company also increased its safety stock in March due to global geopolitical tensions, which affected its working capital.

Peer comparison

While specific peer revenue figures for FY26 were not provided in the filing, V2 Retail's reported consolidated revenue of ₹3,067 crore indicates a substantial scale. The company highlighted that its sales per square foot have significantly increased compared to peers, supporting the sustainability of its growth, even with a reported Same Store Sales Growth (SSSG) of 7.74%.

Context metrics (time-bound)

• Revenue: FY26 Consolidated Revenue stood at ₹3,067 crore, up from FY25's ₹1,846 crore (approx. 66% growth).
• Stores: Total stores reached 325 by end of FY26, with 136 added during the year.
• Q4 FY26 Revenue: ₹797 crore.
• EBITDA: ₹455 crore for FY26, with a margin of 14.9%; ₹109 crore for Q4 FY26, with a margin of 13.7%.
• PAT: ₹162 crore for FY26; ₹17.5 crore for Q4 FY26.
• Asset Write-off: ₹5.77 crore to resolve audit qualification.
• FY27 Store Target: 170-200 new stores.

What to track next

Investors will be closely watching the execution of the FY27 store opening target, the company's ability to manage gross margins amidst rising commodity prices and potential customer price sensitivity, and whether the sales momentum can be sustained. The company's focus on maintaining positive operating cash flow with aggressive expansion also remains a key point.