V2 Retail Ltd stands as a prominent value retail chain operating across India, focusing on delivering affordable fashion and lifestyle products to customers in Tier II, III, and IV cities. The company was initially set up as a proprietorship firm - Vishal Garments in 2001 and converted into a Public Ltd company in 2006. Under the leadership of Chairman & Managing Director Ram Chandra Agarwal, who introduced the concept of value retailing in 2001 and has been leading V2 Retail since July 2011, the company has transformed into a significant player in India's retail landscape.
V2 Retail operates through a comprehensive retail ecosystem that spans multiple product categories. The portfolio of products offered includes readymade apparels, household merchandise, footwear, watches, toys, toiletries, grocery items, sports items, crockery, novelties and gifts among others. The company's business model focuses on providing value-driven shopping experiences to customers in smaller cities, capitalizing on the growing aspirational demands in these markets.
As of December 31, 2024, the company operates 160 stores with a total retail area of around 17.22 lakh square feet. The company's operational infrastructure includes three manufacturing facilities with a total installed capacity of 4.5 million pieces per annum, 29 warehouses covering 1.1 million square feet of space, and 98 trucks in its fleet. This integrated approach allows V2 Retail to maintain control over its supply chain and ensure competitive pricing for its customers.
V2 Retail has demonstrated remarkable financial growth in recent years, establishing itself as a strong performer in the retail sector. The market cap of V2 Retail Ltd stands at ₹6,232.04 crore as of June 10, 2025, reflecting investor confidence in the company's growth trajectory.
The company's financial performance for FY25 showcases substantial growth across key metrics. Sales rose 61.80% to Rs 1,884.50 crore in the year ended March 2025, as against Rs 1,164.73 crore during the previous year ended March 2024. This impressive revenue growth was accompanied by even stronger profitability improvements, with net profit rising 159.01% to Rs 72.03 crore in the year ended March 2025, as against Rs 27.81 crore during the previous year ended March 2024.
The company's quarterly results demonstrate consistent growth momentum. For Q4 FY25, sales rose 68.39% to Rs 498.51 crore in the quarter ended March 2025, as against Rs 296.04 crore during the previous quarter ended March 2024. The net profit performance was equally impressive, with net profit rising 78.89% to Rs 6.44 crore in the quarter ended March 2025, as against Rs 3.60 crore during the previous quarter ended March 2024.
The Q3 FY25 results further reinforced the company's strong performance trajectory. Revenue from operations jumped 58.1% to Rs 590.94 crore in Q3 FY25 compared with Rs 373.76 crore in the corresponding quarter last year, while profit before tax soared 118.2% YoY to Rs 68.53 crore in Q3 FY25.
V2 Retail has shown improvements in operational efficiency metrics that demonstrate the company's ability to optimize its retail operations. EBITDA stood at Rs 111.5 crore, up 83% compared with Rs 60.9 crore in Q3 FY24, with EBITDA margin improving to 18.9% in Q3 FY25 as against 16.3% in Q3 FY24.
The company achieved strong same-store sales growth, with same store sales growth of around 25% in the third quarter of FY25 as compared to Q3 FY24, reflecting strong consumer demand and operational efficiency. Additionally, sales per square feet per month stood at Rs 1,219 for the quarter ended December 31, 2024, registering a growth of 12.35% YoY.
V2 Retail's stock performance reflects strong investor interest in the company's growth story. The 52-week high of V2 Retail Ltd is ₹2,097 and the 52-week low is ₹562, indicating significant price appreciation over the year. The company's valuation metrics include a P/E ratio of 86.52 and P/B ratio of 22.69, reflecting premium valuations that investors are willing to pay for the company's growth prospects.
V2 Retail has achieved a 250% stock increase over the past year, with a 44% CAGR in revenue and 101% in net profit over three years, demonstrating the company's exceptional performance in creating shareholder value.
V2 Retail has outlined ambitious expansion plans that position the company for continued growth in the coming years. V2 is targeting 400-500 stores and a revenue of Rs 2,800 crore by FY27, representing a significant scaling up from its current operations. The company aims to achieve this by strengthening its online presence, enhancing private label offerings, and exploring new markets.
The company's near-term expansion strategy is equally aggressive, with plans to aggressively expand its store count, targeting over 200 stores in the next two years. It has allocated ₹60 crore for expansion and inventory purposes and is looking to open 20-25 stores over the next two months.
The company targets a 25% ROE in the next 18-24 months, anticipating 45-50% YoY revenue growth for FY26 and FY27, indicating management's confidence in sustaining high growth rates.
V2 Retail operates through a diversified corporate structure that includes multiple subsidiary companies. It has subsidiaries such as VRL Foods Ltd, VRL Movers Ltd, VRL Consumers Goods Ltd, VRL Fashions Ltd, and VRL Infrastructure Ltd, allowing the company to operate across various business segments and leverage synergies within the group.
The company maintains a stable shareholding pattern with strong promoter commitment. Promoter holding in V2 Retail Ltd stands at 54.24 per cent as of March 2025, indicating continued confidence from the founding team in the company's prospects. The company has also received credit rating upgrades, with V2 Retail's credit rating upgraded to IND A-/Stable/IND A2+ for INR 1,250 million limits, reflecting improved financial strength and creditworthiness.
V2 Retail's transformation from a small proprietorship to a publicly listed retail chain with ambitious expansion plans demonstrates the company's ability to adapt and grow in India's dynamic retail market. With strong financial performance, clear growth strategies, and a focus on underserved markets, V2 Retail is positioned to capitalize on India's evolving retail landscape while delivering value to both customers and shareholders.
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