V2 Retail Ltd

V2 Retail Limited trading window closed from 1st October, 2026 till the expiry of 48 hours after declaration of Un-audited Financial Results for the Second quarter and Half year ended 30th September, 2026 (both days inclusive).

Instruments / Ratings

• Bank facility 1 (INR 1,250m): upgraded to IND A/Positive/IND A1 from IND A-/Stable/IND A2+.
• Bank facility 2 (INR 500m): rating assigned as IND A/Positive/IND A1.

Rating Action & Outlook

• Ind-Ra upgrades VRL bank facilities to IND A/Positive/IND A1.
• Outlook: Positive for both facilities.

Rationale

• Healthy scale growth and store expansion driving EBITDA improvement.
• Asset-light model with rising own-brand share to 90%.
• Moderate credit metrics; competition and expansion risk constrain gains.
• Liquidity adequate now; working capital needs may pressure cash flows.

Financial & Liquidity Highlights

• FY26 consolidated revenue INR 30,670m; EBITDA INR 4,555m.
• Net leverage (incl. lease) 2.2x; interest coverage 4.7x.
• Inventory days 194; working capital cycle 130 days.
• Store network 381 stores; plan to add 170 in FY27 and ~200 in FY28.
• Standalone FY26 revenue INR 30,600m; EBITDA margin 15.2%.
• Liquidity: cash INR 60.56m; sanctioned limits INR 1,750m (enhanced July 2026).
• Medium-term WC-driven cash flow may be negative due to capex.

Material Changes from Previous Rating

• Previous rating: IND A-/Stable/IND A2+; revised to IND A/Positive/IND A1.
• Outlook changed from Stable to Positive.

Meeting Details

• Date/time: August 14, 2026; time not disclosed.
• Type/Mode: virtual earnings conference call conducted digitally.
• Event/Organizer: V2 Retail Limited Q1 FY27 Conference Call.

Participants

• Key company participants: CEO; Company Secretary & Compliance Officer.

Purpose

• Purpose: discuss Q1 FY27 earnings results and outlook.

Availability

• Transcript will be uploaded on the company website.
• Earnings presentation and press release available on exchanges and company website.

Meeting Details

• Date and time: August 19, 2026, 9:00 am–5:00 pm
• Meeting type: One-on-One and Group meetings; mode: physical
• Organizer: Motilal Oswal Global Investor Conference
• Event: 22nd Annual Conference
• Venue: Mumbai
• Q1 FY27 investor presentation available on company website

Meeting Details

• Date of conference call: Friday, August 14, 2026.
• Type and mode: virtual group conference call conducted digitally.
• Event/organiser: Q1 FY27 earnings conference call.
• Key participants from company: Company Secretary & Compliance Officer.
• Purpose: earnings/results discussion with analysts/investors.
• Recording: audio recording available on the company's website.

Financial highlights

• Revenue ₹997.2 Cr; up 58% YoY in Q1 FY27
• Gross profit ₹285.0 Cr; margin 28.6%
• EBITDA ₹139.5 Cr; margin 14.0%
• PAT ₹41.9 Cr; up 70% YoY

Operational expansion

• 381 stores as of June 30, 2026; 56 net stores added in Q1
• Total retail area ~40.7 lakh sq ft
• SSSG ~7.5% in Q1 FY27
• 57 stores opened, 1 closed in Q1; 400-store milestone reached

Outlook and strategy

• Focus on profitable growth, capital efficiency, disciplined execution
• Investments in analytics-driven merchandising and agile supply chain
• Plan to sustain growth with strong store economics and returns

Q1 FY27 Highlights

• Revenue from operations ₹997.2 Cr, up 58% YoY.
• Gross profit ₹285.0 Cr, margin 28.6%.
• EBIDTA ₹139.5 Cr, EBITDA margin 14.0%.
• PAT ₹41.9 Cr, margin 4.2%.
• Store count 381 at end, opened 57, closed 1.
• Total retail area ~40.7 lakh sq ft.
• SSG growth ~7.5% in Q1 FY27.
• ABV ₹941 in Q1 FY27 vs ₹901 Q1 FY26.
• ASP ₹308 in Q1FY27 vs ₹303 Q1FY26.

Internal Auditor Appointment

• Appointed internal auditors: M/s SMAM & CO., for FY 2026-27.
• Effective date: August 13, 2026 (Board meeting).
• Approved on Audit Committee recommendation.
• Profile: SMAM & CO. has extensive audit, tax, and advisory experience.