New Delhi-based value fashion and retail chain V2 Retail believes it is doing better than 8-10% same-store sales growth (SSSG) guidance given earlier. The company is targeting around 50% revenue growth in financial year 2026.
Akash Agarwal, Whole Time Director of V2 Retail said, “We have seen a consistent momentum in terms of same-store-sales growth and in terms of goods and services tax (GST) cut, it’s too early to say because it’s just been six days since the rollout. However, all the indicators are pointing towards a very positive outlook, and third quarter is going to be very crucial. However current festive trends, we are doing better than the guidance of 8 to 10% SSSG that we have given to the market.”
On pricing strategy, V2 Retail has already passed on GST benefits to customers, although most of its products are priced below ₹1,000. The company expects increased consumption from higher disposable income rather than direct price cuts.
The company has also revised its store expansion plans for the year. Initially targeting 100 new stores, V2 Retail now aims to open around 120–130 stores in FY26, driven by strong performance in both new and existing locations.
V2 Retail maintains a net working capital target of 35–45 days and aims to achieve pre-India earnings before interest, taxes, depreciation, and amortisation (EBITDA) margins of around 8–8.5%.
With sales per square foot expected to reach ₹1,200 for older stores over the next 2–3 years, the company is optimistic about sustained growth.
On the impact of Bihar elections, Agarwal said historically it has been mixed—sometimes disturbances affect sales negatively, while at other times consumption increases—but overall, there isn’t a significant impact. He added hopefully there will be no disturbances, and the sales momentum can continue.
V2 Retail has about 40 stores in Bihar, contributing roughly 20–25% of the company’s sales.
V2 Retail’s current market capitalisation is ₹6,938 crore. The stock is currently trading at ₹2,006 as of 12:25 pm on the NSE and has gained 50% over the last year.
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(Edited by : Unnikrishnan)
