The Director states that the company would rather have more Ebitda margin by higher sales per square feet than a higher gross margin
After V2 retail witnessed a 57 per cent year-on-year (YoY) growth in revenue from operations in the third quarter of the financial year 2026, Akash Agarwal, Director And Chief Executive Officer (CEO) of the company, states that it is targeting an 8 to 10 per cent same-store-sales-growth (SSSG) for the next year as well.
“Hopefully, the decisions by the government also help boost demand. So, we are taking an 8 per cent to 10 per cent SSSG target for next year also and adding 150 more stores next year also,” Agarwal said during the earnings call.
The company’s reported SSSG for the third quarter stood at around 2 per cent. However, the normalized SSSG was at around 12.8 per cent (adjusted for Durga Puja shift from Q3 to Q2 FY26). Same Stores Sales Growth for the nine months of the current financial year (9MFY26) stood at around 8.6 per cent.
“We want to pass on most of the benefits to the consumer. So, we like having a metric that matters most to us is Ebitda margin. We would rather have more Ebitda margin by higher sales per square feet than a higher gross margin. So, going forward, we target a gross margin of 28 to 29 per cent,” he pointed out.
Agarwal added that the company entered about seven new states this year. The whole expansion strategy depends on the performance of each geography, he noted. Karnataka, a relatively new market for V2 Retail, is performing so well.
“The same goes for West Bengal. So, 60 to 70 per cent of our new stores will come in existing strong clusters for us, where V2 is already performing well. And the rest, 30 to 40 per cent of the stores will come in new geographies that are performing very well for us,” Agarwal highlighted.
As on 31 December 2025, the company operates 294 stores with a total retail area of around 31.93 lack square feet. The company opened 35 stores in the recently concluded quarter. In Q3FY26, V2 Retail raised around Rs 400 crore via QIP route from marquee institutional investors.
In 9MFY26, the revenue from operations stood at Rs 2,270 crore, registering a growth of 64 per cent on YoY basis. Gross margin stood at 30.2 per cent for 9MFY26 as compared to 29.8 per cent for 9MFY25. The company said in a regulatory filing that the net profit for the 9MFY26 stood at Rs 144 crore as compared to Rs 65.6 crore in 9MFY25, registering a growth of 119 per cent on a YoY basis.
