V2 Retail Q1FY26 (Consolidated) results

• V2 Retail’s (V2Rs) revenues grew by 52.3% y-o-y to Rs. 632 crore, largely in line with our estimate of Rs. 628 crore, driven by volume growth of 50%. SSSG for the quarter stood at 5%, with strong double-digit growth in May and June, offset by a temporary dip in April due to the early Eid shift into Q4 FY25. On a normalized basis, Q1FY26 SSSG stood at 10%.
• Gross margins decreased by 289 bps y-o-y to 29.6%. However, EBIDTA margins improved by 44 bps y-o-y to 13.8% on back of store level efficiencies. EBITDA margin came in lower than our expectation of 14.7%.
• EBIDTA grew by 57.3% y-o-y to Rs. 87 crore and PAT grew by 50.9% y-o-y to Rs. 25 crore led by strong revenue growth and improved operating efficiencies. V2R opened 27 net stores during Q1FY26, taking the total count to 216 stores at Q1FY26-end, with total retail area of ~23.49 lakh sq. ft. The company’s board has approved fundraising of up to Rs. 400 crore via equity or convertible securities.
• View: We shall review our estimates and come out with a detailed note post the conference call. Currently we have a Positive view on the stock. 

Results (Consolidated)                                                                         Rs. crore

Actual vs estimates                                                   Rs. crore