V2 Retail Q2 FY27 Results (NSE: V2RETAIL)

3 Nov 2026 · Analysis by Alpha Inflection

Signal: Margin expansion

The read

The trajectory is still growth-led but less profitable sequentially: Q2 revenue grew 27.8% YoY to ₹90,559.98 lakh and gross margin expanded 310bps, yet EBITDA margin fell 80bps QoQ to 13.3% and H1 operating cash flow dropped 83.1% YoY to ₹1,966.05 lakh as inventory and borrowings expanded.

P&L walk

Revenue grew 27.8% YoY to ₹90,559.98 lakh, gross margin expanded to 31.1% from 28.0%, and EBITDA margin improved to 13.3% from 12.1%, but PAT growth was limited to 5.7% as employee costs and depreciation rose faster than sales.

Segments

The group remains single-segment retail trade; the manufacturing subsidiary generated nil revenue and recorded a ₹7.05 lakh quarterly loss, so it slightly dragged consolidated PAT by ₹7.05 lakh.

Key positives

• Gross margin expanded 310bps YoY to 31.1%, with net stock-in-trade cost falling to 69.0% of revenue from 72.0%; the filing does not identify the cause.
• Derived EBITDA grew 40.8% YoY to ₹12,026.56 lakh versus revenue growth of 27.8%, lifting EBITDA margin 122bps to 13.3%.
• Finance costs grew 6.0% YoY, materially slower than revenue growth of 27.8%, despite higher borrowings.

Key concerns

• H1 operating cash flow fell 83.1% YoY to ₹1,966.05 lakh while H1 revenue grew 41.9%, with inventory up 26.8% from 31 March 2026 to ₹1,44,646.69 lakh.
• Employee benefits expense rose 55.1% YoY to ₹8,919.28 lakh, nearly twice revenue growth, raising opex intensity to 9.8% of revenue from 8.1%.
• Q2 EBITDA margin declined 80bps QoQ to 13.3% and PAT fell 56.5% QoQ to ₹1,821.32 lakh, showing sequential pressure after the Q1 peak.
• The manufacturing subsidiary reported nil revenue and a ₹7.05 lakh quarterly loss; management is still assessing alternatives for its future operations.

View original filing

Research and educational content only. Not investment advice.