V2 Retail Ltd., one of India’s fastest-growing value fashion chains, has shifted into overdrive. On Saturday, August 23, 2025, the company created history by opening five stores in a single day—across Noida (Uttar Pradesh), Vizianagaram (Andhra Pradesh), Goalpara (Assam), Rohtak, and Ambala (Haryana). With this landmark, the retailer has now surpassed the 230-store mark, reinforcing its reputation as one of the most aggressive scale-up stories in Indian fashion retail.
FY25: Breakout Year
The one-day store blitz comes on the back of a blockbuster fiscal year.
- Revenue: ₹1,884.5 crore in FY25, up 62% YoY
- PAT: ₹72 crore, up 159% YoY
- EBITDA: ₹257.8 crore, margins at 13.7%
- Same-store sales growth (SSSG): ~29%, an industry-leading number
- Retail area: ~20.3 lakh sq. ft. nationwide
This performance firmly established V2 Retail as the value fashion category’s standout, far outpacing most peers.
Q1 FY26: Momentum Continues
The momentum carried into FY26’s first quarter:
- Revenue: ₹632.2 crore, up 52% YoY, its highest ever
- PAT: ₹24.7 crore (up ~51–56% YoY)
- EBITDA: ₹87.2 crore, margin 13.8%
- Retail area: ~23.5 lakh sq. ft. across 216 stores by June 2025
- SSSG: 5%, but ~10% normalized after adjusting for an early Eid shift
- New stores: 28 in Q1, contributing ~35% of topline
By mid-August, the network had already crossed 230 stores, underscoring the blistering pace of expansion.
FY26 Outlook: Scaling Faster
Management has sharply raised its growth guidance for the year.
- Store expansion: 100–120 new stores in FY26 (vs earlier target of 100)
- Revenue growth: 45–50% guided by management; Street projects ₹2,780–2,930 crore
- Capex: ~₹300 crore earmarked (₹250–260 crore for stores; ₹40–50 crore for warehousing & infrastructure)
- Margins: Gross margin expected at 28–29%; EBITDA margin near 10% pre-Ind AS
- Profitability: Company expects positive PAT in all four quarters of FY26
A ₹400 crore QIP has been approved to accelerate expansion, strengthen vendor terms, and fund technology & infrastructure upgrades.
Market Cap & Investor Returns
As of late August 2025, V2 Retail’s market cap stands at ~₹5,900–6,400 crore. Investors have been rewarded handsomely:
- +44% over the past year
- 14x returns over three years
- 27x returns over five years
Few players in Indian retail have delivered this blend of growth and shareholder value creation.
Why Value Fashion is Winning
The company’s rise is emblematic of a larger trend: Indian consumers in Tier II, III, and IV towns are gravitating towards organized value fashion that offers quality, style, and affordability. Industry reports show value retailers outpacing premium fashion brands in FY25, with V2’s 62% revenue growth and 29% SSSG putting it in pole position.
Operationally, the retailer is also tightening throughput: average sales stood at ~₹960 per sq. ft. per month in Q1, with a medium-term goal of ₹1,200 as supply chain efficiencies and assortments deepen.
Leadership Speaks
Founder & Chairman Ram Chandra Agarwal says the one-day, five-store launch “underscores our operational agility and our mission to make fashion accessible to every Indian.”
CEO Akash Agarwal adds: “Nearly 35% of our Q1 topline came from new stores. The consumer response reinforces our confidence to scale at a pace that matches India’s growing fashion aspirations.”
The Road Ahead
With triple-digit annual store additions, robust unit economics, and an expanding profit base, V2 Retail is no longer just keeping pace with India’s fashion appetite—it is setting the rhythm.
If FY25 was the breakout year, FY26 is shaping up to be the year V2 Retail cements its place as India’s fastest-growing value fashion brand.
