In a remarkable journey of value creation, a modest investment of ₹1 lakh in the retail chain V2 Retail back in 2013 would be worth a staggering ₹3.3 crore today. This phenomenal wealth generation story is backed by a dramatic financial turnaround and aggressive expansion, with the company's growth trajectory showing no signs of slowing down.
From Small-Town Focus to National Ambitions
Over a decade ago, V2 Retail was a relatively small player, operating stores primarily in India's tier-II and tier-III cities. Its strategy was clear: provide affordable and fashionable apparel to value-conscious consumers in markets where organized retail was still underpenetrated. This focus on the heartland of India's consumption story paid off handsomely as demand in these regions grew.
The company's measured scaling, driven by adding new stores and steady growth from existing ones, fueled a financial metamorphosis. Its revenue exploded nearly 17 times, climbing from ₹109 crore in the financial year 2012-13 to approximately ₹1,884 crore in 2024-25. More impressively, it transformed from a net loss of ₹7 crore to a net profit of ₹98 crore in the same period.
This operational success is mirrored in its stock performance. The share price catapulted from around ₹7.3 in 2013 to about ₹2,190, delivering life-changing returns for early investors.
South India: The New Frontier for Expansion
Having established a stronghold in North and East India, V2 Retail is now setting its sights on the southern part of the country as its next major growth engine. As of the second quarter of the 2025-26 financial year, the company operates 259 stores across 23 states and over 195 cities.
Its presence is widespread, with significant clusters in Uttar Pradesh (48 stores), Bihar (44), Odisha (30), Madhya Pradesh (20), Jharkhand (19), and Karnataka (18). Karnataka has already emerged as a key market, and the company has made its foray into Andhra Pradesh. Management plans to establish a presence across all major southern states, including Tamil Nadu, within the next 2-3 years.
The expansion blueprint is aggressive. V2 Retail aims to add 130 stores in 2025-26 (70 net stores already opened) and plans for another 150 stores in 2026-27. This would take its total store count to roughly 469, solidifying its national footprint. In comparison, its closest peer, Baazar Style, operates 250 stores spanning 2.3 million square feet, slightly less than V2's 2.8 million square feet of retail space.
Financial Muscle and Operational Edge
V2 Retail boasts several operational advantages. New stores are designed to break even in their very first month and reach full maturity within 2-3 years. The company funds about 50% of the average store investment of ₹2.5 crore. Its same-store sales growth (SSSG) of 13% in H1 FY26 also outshone Baazar Style's 10%.
Financially, V2 has consistently outpaced its peer. It reported a 62% year-on-year revenue growth to ₹1,885 crore in FY25, against Baazar Style's 38%. This momentum continued into H1 FY26, with V2's revenue surging 69% to ₹1,341 crore. While Baazar Style recently turned profitable, V2's net profit doubled year-on-year in H1 FY26 to ₹42 crore.
The company's apparel-led mix, dominated by men's wear (41% of H1 FY26 revenue), drives higher average selling prices and bill values. The average bill value rose to ₹900 in H1 FY26. Furthermore, V2's store productivity, measured by monthly sales per square foot at ₹948, remains higher than Baazar Style's ₹768.
Sustaining Growth and Valuation Premium
V2 Retail is targeting revenue growth of over 50% in the coming years, fueled by 8-10% SSSG and new store additions. To support this, it plans to increase its retail area by 60-70% annually. Management expects margins to remain stable, with Return on Equity staying above 20%.
The company has raised ₹400 crore via a qualified institutional placement, which is deemed sufficient to fund expansion until the end of FY28. It is also working on margin levers like early vendor payments for discounts and benefiting from softer rental rates for new stores.
Currently trading at ₹2,178 per share, V2 commands a premium valuation of 79.8 times its price-to-earnings ratio, higher than Baazar Style's 55.4 and its own 10-year median. This premium reflects the market's confidence in the company's scalable model, consistent return ratios, and the vast growth runway in India's under-penetrated retail markets.
Disclaimer: This article is for informational purposes only and is not investment advice. Readers are advised to consult a qualified financial advisor before making any investment decisions.
