A Small-cap company that primarily operates in the apparel and textile retail sector in Tier-II and Tier-III cities, is in the spotlight after the stock has delivered multi-bagger returns of 3,391.35 percent to the shareholders in 5 years.
With a market capitalization of Rs. 8,459.59 crore, the shares of V2 Retail Limited closed at Rs. 2,320 per equity share, down by 2.99 percent from its previous day’s close price of Rs. 2,391.60.
Stock’s Return
Over the past year, the stock has provided returns of 89.23 percent. The stock is currently trading at a discount of 9.52 percent from its 52-week high of Rs. 2,564.10.
On November 21, 2025, the shares of V2 Retail Limited traded at Rs. 2,320, showing a gain of around 3,391.35 percent compared to the price of Rs. 66.45 on November 20, 2020. For example, if someone had invested Rs. 1 lakh in the company’s stock 5 years ago, it would have turned into around Rs. 34.91 lakh.
About the Company
V2 Retail Limited, founded in 2001 by Mr. Ram Chandra Agarwal, was established with the vision of providing quality merchandise at affordable prices to the Indian masses. Over the years, it has built a strong presence primarily across Tier-II and Tier-III cities, operating a chain of ‘V2 Retail’ stores that cater to the apparel and general merchandise needs of the entire family.
Along with its subsidiary, V2 Smart Manufacturing, the company operates in the apparel and textile retail sector while also manufacturing clothing. Its product range includes readymade garments, hosiery, and accessories sold under multiple in-house brands such as GODSPEED, Herrlich, Glamora, ebellia, Body and Mind, and Honey Brats, strengthening its integrated retail and manufacturing model.
With a strong nationwide footprint, V2 Retail currently operates 259 stores across more than 195 cities in 23 states, covering an expansive retail space of approximately 27.94 lac Sq. Ft.
Revenue Guidance
The company aims to deliver around 50 percent revenue growth, supported by two key drivers: mature-store same-store sales growth (SSSG) of 8–10 percent, and significant contribution from new stores, which are expected to generate about 40 percent of total revenue growth. Achieving this will require 60–70 percent growth in the retail area, as new stores typically operate at roughly 70 percent of mature-store productivity.
Network Expansion Guidance
Store expansion is running ahead of plan, with 43 stores added in Q2 and a net 70 stores in H1 FY26, taking the total to 259. With an additional 16 stores added in Q3 to date, the network has reached 275 stores, covering 28 lakh sq. ft. As a result, the FY26 target has been raised from 100 to ~130 new stores, while FY27 could see up to 150 new stores, subject to strong operating performance. FY27 expansion will require around Rs. 350 crore of capex and inventory investment, along with Rs. 25–30 crore for warehousing under a regional hub-and-spoke model.
Margin Guidance
The company expects pre-Ind AS EBITDA margins to remain around the 8 percent level seen last year for the next 2–3 years, as a larger share of new stores, typically lower in productivity initially, will keep margins steady rather than expanding. Gross margin is guided at 28–29 percent, with the company committed to reinvesting efficiencies into sharper price-value offerings to drive higher footfall, stronger sales per sq. ft., and improved market share.
Financial Highlights
The company reported Q2 FY26 revenue of Rs. 709 crore, marking a strong 86.6 percent YoY growth from Rs. 380 crore and a 12.2 percent QoQ increase compared to Rs. 632 crore in Q1 FY26. This sharp rise reflects robust operational momentum and improved demand across its business segments.
Profit for Q2 FY26 stood at Rs. 17 crore, a significant improvement from a loss of Rs. 2 crore YoY, but showing a 32 percent QoQ decline from Rs. 25 crore in Q1 FY26. While profitability dipped sequentially, the positive turnaround from last year highlights better cost control and stronger revenue traction.
V2 Retail Limited’s revenue and net profit have grown at a CAGR of 22 percent and 88 percent, respectively, over the last five years.
The company’s ROCE and ROE stand at 16.9 percent and 23.3 percent, respectively, and its debt-to-equity ratio at 3.39 indicates the company’s financial position.
Written By Akshay Sanghavi
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