Akash Agarwal says that the company is guiding for at least 50 per cent revenue growth over the next two years
V2 Retail is looking to pass the increases in raw material prices due to the recent geopolitical tensions on to the customers. The company is looking to raise the prices by 3 to 4 per cent in future to maintain its gross margins between 28 to 30 per cent.
“We have seen some movement in yarn prices and that would have to be transferred to the customer. We will maintain our gross margins and prices might go up in the future by 3 to 4 per cent,” Akash Agarwal, Director and Chief Executive Officer (CEO), V2 Retail, said during the earnings call.
He added that aimed at improving its gross margins, the company has started focusing a lot on inventory management and freshness of inventory and has started doing inter-store transfers of inventory and better product mix at stores.
“Our strategy is we will not absorb it in gross margins because 3 to 4 per cent increase is not significant and if our average selling price is Rs 300 that translates to about Rs 10 to Rs 12 additional MRP. I do not think it is a significant impact. We would look to maintain our gross margin at 28 to 30 per cent,” he explained.
He said that the company is guiding for at least 50 per cent revenue growth over the next two years. On the store addition front, he explained that the company is looking to open 30 to 40 per cent new stores in the newer regions, with 50 to 60 per cent additions in its core strong regions.
While major brands are now creating different brands under one umbrella to diversify the portfolio, Agarwal clarified that the company will not dilute its focus until it hits 2,500 V2 stores. Noting that good fashion and affordable price is not yet available to most middle class consumers in the country, he added that the company “wants to capture that blue ocean first.”
Registering a healthy growth in its performance, V2 Retail has seen a 59 per cent year-on-year (YoY) growth in its standalone revenue in the fourth quarter of the current financial year (Q4FY26). The revenue stood at Rs 798 crore as compared to Rs 499 crore in Q4FY25.
The company highlighted in an exchange filing that it clocked a 7.74 per cent Same Store Sales Growth (SSSG) in Q4FY26. This was enabled by its data-backed assortment strategy and product-first mindset, which delivered high sell-through and minimised markdowns, the company added. Monthly Sales Per Square Feet (PSF) reached Rs 794 during Q4FY26, indicating faster ramp-up and improving productivity of recent store additions.
