Synopsis:
Shares of this company hit the 5% upper circuit for the second straight day after announcing a Rs. 300 crore QIP to fund expansion, debt reduction, and infrastructure upgrades, following an impressive 86% YoY Q2 revenue growth.
This company operates in Tier-II and Tier-III cities, with a chain of stores offering apparel and general merchandise, catering to the entire family is now in the focus after launching QIP of Rs. 300 crore, according to 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% upper circuit, from its previous close of Rs. 2,325.80 per share. The stock hit 5% upper for two consecutive days, and the stock is trading near to its all time high.
News
V2 Retail has launched a Qualified Institutional Placement (QIP) to raise Rs. 300 crore, based on media sources. The indicative price is of Rs. 2,134 per share, which reflects a 12.6% discount to its current market price. (Floor price is Rs. 2245.75)
This capital raise will support V2 Retail’s aggressive expansion plans, including opening new stores primarily in Tier-II and Tier-III cities, strengthening vendor relationships, and enhancing backend infrastructure such as supply chain and technology.
Whole-time director Akash Agarwal, in his statement, mentioned that this QIP is a proposal for raising funds to the company for the next expansions and for new store opening with around Rs. 750 per square foot now. In addition, the company will pay off its debts. He further said that the company is targeting the increase of Pre-Ind AS Ebitda margin from 8% in FY5 to 10% in 2-3 years period.
The first tier is about increasing sales from Rs 1,000 per square foot to Rs 1,200. The second tier is just relocating the head office and the warehousing costs to a larger store footprint. The third level is a better product mix and more full-price selling. So, that increases the gross margin by 100 basis points, the top executive explained.
Q2 FY26 Performance
V2 Retail delivered an exceptional 86% year-on-year revenue growth, with standalone revenue rising to Rs. 705 crore in Q2 FY26 from Rs. 380 crore in Q2 FY25. This surge was driven by strong execution, innovation-led expansion, and deeper market penetration. The company reported a
Same Store Sales Growth (SSSG) of 23.4% YoY (normalised ~10.3% after adjusting for the Durga Puja shift), reflecting healthy consumer demand and effective inventory management. Sales per square foot (PSF) remained strong at Rs. 938 per month, highlighting operational efficiency and product relevance.
Expansion Momentum and H1 FY26 Highlights
Continuing its strategic focus on Tier 2 and Tier 3 markets, V2 Retail added 43 new stores in Q2, bringing the total count to 259 stores with a 27.94 lakh sq. ft. footprint as of September 30, 2025.
For H1 FY26, the company reported 68% revenue growth to Rs. 1,334.9 crore, with SSSG at ~13.3% and monthly PSF at Rs. 948. Net addition of 70 stores (with one closure) underscores the company’s rapid expansion and growing market reach.
Written by Manideep Appana
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
