V2 Retail Ltd aims 50% revenue growth over the next two years, supported by aggressive store expansion. This target comes after several years of strong growth.
In FY26, the value fashion retailer with a thrust on India’s tier-2 and 3 markets, saw an impressive 63% year-on-year revenue growth to ₹3,067 crore. Growth in FY25 and FY24 stood at 39% and 62%, respectively, to ₹1,885 crore and ₹1,165 crore.
V2 plans to add 170–200 stores in FY27, almost half of the 381 stores at the end of the June quarter (Q1FY27). It has already signed MOUs for the next 100 stores it plans to open.
But it’s crucial to track when the new stores will become more productive. “The new stores per square feet sale is about 34% less than our mature stores,” said the company’s management in the Q1 earnings call. “More than two years old stores are already performing at a very high level of almost ₹1,070 to ₹1,100 per square feet of sale.”
One metric that can help bridge this gap is higher same-store-sales-growth (SSSG), which stood at about 7.5% in Q1. “SSSG remains the primary earnings driver, with every 1% change in SSSG translating into a 7-11% change in Ebitda and PAT, reflecting the strong operating leverage embedded in the model,” said Motilal Oswal Financial Services.