Targeting around 50% revenue growth in financial year 2026, V2 Retail believes its performance is better than 8-10% same-store sales growth (SSSG) guidance given earlier.
“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 the third quarter is going to be very crucial. However, with current festive trends, we are doing better than the guidance of 8 to 10% SSSG that we have given to the market,” said Akash Agarwal, Whole Time Director of the Delhi based value fashion and retail chain.
Although most of its products are priced below Rs.1000, V2 Retail has still passed on the GST benefits to its customers. As per the company, increased consumption is expected from higher disposable income rather than direct price cuts. Driven by strong performance in both new and existing locations, V2 Retail has revised its store expansion plans for the year and now aims to open around 120-130 stores in FY ’26, despite initially aspiring for 100 new stores.
Maintaining a net working capital target of 35-45 days, V2 Retail aims to attain pre-India earnings before interest, taxes, depreciation and amortisation (EBITDA) margins of around 8–8.5%. It is positive about sustained growth with the company’s sales per square foot expected to reach Rs. 1200 for old stores in the next 2-3 years.
According to Akash, the effects of the Bihar elections have traditionally been varied, with disruptions occasionally having a negative effect on sales and other times increasing consumption. However, overall, there isn’t a noticeable difference. “Hopefully, there won’t be any disruptions and the sales momentum can continue,” he continued. With around 40 locations in Bihar, it accounts for 20–25% of the company’s sales.
