V2 Retail reported a strong 28% year-on-year revenue growth to Rs 905.6 crore for Q2 FY27. Despite an aggressive expansion strategy adding 106 stores in the first half of the fiscal year, the company faces short-term pressure on Same Store Sales Growth (SSSG) and increased debt levels. Management remains optimistic about a robust Q3 performance driven by festive demand.
V2 Retail Q2 Results: Revenue Hits Rs 905.6 Crore
Revenue for Q2 FY27 stands at Rs 905.6 crore, up 28% YoY from Rs 708.6 crore.
Profit After Tax (PAT) reached Rs 18.2 crore compared to Rs 17.2 crore in the same period last year.
Reader Takeaway: Revenue is scaling rapidly through aggressive store additions, but rising debt and inventory levels require close monitoring.
What just happened
V2 Retail expanded its footprint significantly, reaching 427 stores as of September 30, 2026. The company added 106 new stores in the first half of the fiscal year while closing 4 locations. This rapid expansion pushed total revenue to Rs 905.6 crore for the second quarter, although it resulted in higher working capital requirements and debt, which rose to Rs 528 crore from Rs 253 crore in March 2026.
Why this matters
The aggressive growth strategy has led to a temporary decline in Same Store Sales Growth (SSSG) of -14.9%, though management cites a normalized figure of +0.5% after adjusting for festive shifts. Investors should note that the company is currently in an investment-heavy phase, with inventory rising to Rs 1,447.8 crore to support both new store openings and anticipated festive demand. Management has acknowledged a general demand slowdown over the last three months, noting that macroeconomic headwinds have influenced performance.
What changes now
Management maintains a growth guidance of over 50% for FY27. The company plans to open 60 to 70 additional stores in H2 FY27 but remains prepared to moderate this pace if demand conditions do not improve. The upcoming Q3 is expected to be a significant contributor to the year's performance, supported by the festive season and winter inventory sales.
Risks to watch
Key watch points for shareholders include the efficiency of new stores as they transition from their current maturity phase to full profitability. The elevated debt levels and the increase in net working capital days (from 81 to 88) are areas that require normalization by the end of the fiscal year to maintain capital efficiency.
What to track next
The primary metric to watch in the coming quarters is the recovery of SSSG and the stabilization of working capital cycles. Additionally, monitor whether the aggressive store additions in H2 align with the company's targets for Pre-Ind AS EBITDA margins of over 7.5%.