Synopsis:
Shares of this firm hit the 5% higher circuit for the second straight day after asserting a Rs. 300 crore QIP to fund enlargement, debt discount, and infrastructure upgrades, following a formidable 86% YoY Q2 income development.
This firm operates in Tier-II and Tier-III cities, with a sequence of shops providing attire and common merchandise, catering to your complete household is now within the focus after launching QIP of Rs. 300 crore, in line with sources.
With market capitalization of Rs. 8,473 cr, the shares of V2 Retail Ltd are closed at Rs. 2,442 per share, locked at 5% higher circuit, from its earlier shut of Rs. 2,325.80 per share. The inventory hit 5% higher for 2 consecutive days, and the inventory is buying and selling close to to its all time excessive.
Information
V2 Retail has launched a Certified Institutional Placement (QIP) to lift Rs. 300 crore, based mostly on media sources. The indicative worth is of Rs. 2,134 per share, which displays a 12.6% low cost to its present market worth. (Flooring worth is Rs. 2245.75)
This capital increase will assist V2 Retail’s aggressive enlargement plans, together with opening new shops primarily in Tier-II and Tier-III cities, strengthening vendor relationships, and enhancing backend infrastructure equivalent to provide chain and know-how.
Complete-time director Akash Agarwal, in his assertion, talked about that this QIP is a proposal for elevating funds to the corporate for the following expansions and for brand new retailer opening with round Rs. 750 per sq. foot now. As well as, the corporate will repay its money owed. He additional mentioned that the corporate is focusing on the rise of Pre-Ind AS Ebitda margin from 8% in FY5 to 10% in 2-3 years interval.
The primary tier is about rising gross sales from Rs 1,000 per sq. foot to Rs 1,200. The second tier is simply relocating the pinnacle workplace and the warehousing prices to a bigger retailer footprint. The third stage is a greater product combine and extra full-price promoting. So, that will increase the gross margin by 100 foundation factors, the highest govt defined.
Q2 FY26 Efficiency
V2 Retail delivered an distinctive 86% year-on-year income development, with standalone income rising to Rs. 705 crore in Q2 FY26 from Rs. 380 crore in Q2 FY25. This surge was pushed by sturdy execution, innovation-led enlargement, and deeper market penetration. The corporate reported a
Identical Retailer Gross sales Progress (SSSG) of 23.4% YoY (normalised ~10.3% after adjusting for the Durga Puja shift), reflecting wholesome shopper demand and efficient stock administration. Gross sales per sq. foot (PSF) remained sturdy at Rs. 938 monthly, highlighting operational effectivity and product relevance.
Growth Momentum and H1 FY26 Highlights
Persevering with its strategic deal with Tier 2 and Tier 3 markets, V2 Retail added 43 new shops in Q2, bringing the full depend to 259 shops with a 27.94 lakh sq. ft. footprint as of September 30, 2025.
For H1 FY26, the corporate reported 68% income development to Rs. 1,334.9 crore, with SSSG at ~13.3% and month-to-month PSF at Rs. 948. Internet addition of 70 shops (with one closure) underscores the corporate’s fast enlargement and rising market attain.
Written by Manideep Appana
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