V2 RETAIL LTD. Q2 FY27 Results

V2 Retail's consolidated revenue rose 27.8% YoY to ₹905.6 Cr (total income ₹908.1 Cr) for Q2 FY27, but consolidated PAT attributable to owners grew only 5.7% YoY to ₹18.2 Cr — profit growth trailing topline growth by roughly 22 percentage points. Net profit margin compressed to 2.01% from 2.43% a year ago and from 4.19% last quarter (Q1 FY27), even though operating profit margin actually expanded YoY, to 13.28% from 12.06%. Standalone and consolidated are near-identical this quarter, so there's no basis divergence to flag; the consolidated PAT figure is primary per our convention.

The gap between expanding OPM and compressing NPM sits below the operating line: finance costs rose 6.0% YoY to ₹29.7 Cr and depreciation & amortisation jumped 81.8% YoY to ₹68.3 Cr, as new-store right-of-use assets and leases from the aggressive rollout hit the P&L. Sequentially, revenue fell 9.2% and PAT fell 56.5% from Q1 FY27 (₹997.2 Cr / ₹41.9 Cr) — this is largely the seasonal Q2 (monsoon-quarter) pattern typical of Indian value retail rather than a reversal, so the QoQ decline should not be read as a trend break.

The stock went into the print at ₹164.4, down 18.2% over the past month of trading.

On guidance: management's FY27 revenue growth target of "at least 50% YoY" (reaffirmed last quarter) now looks stretched — H1 FY27 revenue is up only 41.9% YoY, implying a steeper required H2 ramp. The EBITDA-margin guidance ("maintain despite new area addition") was effectively beaten at the OPM level. Same-store sales growth, which the filing itself doesn't disclose, decelerated sharply to 0.5% in Q2 from 7.5% in Q1 per the company's own 2 Oct business update, prompting management to cut FY27 SSSG guidance to 5–7% from 8–10% — this was the data point the market reacted to, sending the stock down roughly 19% ahead of today's formal results; no specific consensus PAT estimate for the quarter turned up in search, so vs-street is marked unknown rather than guessed. Store rollout itself stayed on pace: 49 new stores opened (3 closed) this quarter, lifting the network to 427 stores, with H1 net additions of 106 keeping the full-year 170-200 store-opening target within reach.