V2 Retail Limited (V2RETAIL) AI Stock Analysis

• Market Cap: ₹70.21B
• Dividend Yield: N/A
• Average Volume (3M): 14.37K
• Price to Earnings (P/E): 21.0
• Beta (1Y): 1.08
• Revenue Growth: 65.91%
• EPS Growth: 139.39%
• Country: IN
• Employees: 3,338
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 28.00
• Shares Outstanding: 36,463,757
• 10 Day Avg. Volume: 10,037
• 30 Day Avg. Volume: 14,373
• PEG Ratio: 0.53
• Price to Book (P/B): 17.22
• Price to Sales (P/S): 3.16
• P/FCF Ratio: 265.42
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 45.97
• Revenue Forecast (FY): ₹30.05B

• Rating: 62 Neutral
• Price Target: ₹2,042.00 ▼(-16.16% Downside)
• Action: Reiterated Date: 11/01/25
• Date: Action: Reiterated 11/01/25

V2 Retail Limited's stock score is primarily driven by its strong financial performance and positive technical indicators. However, the high P/E ratio suggests overvaluation, which negatively impacts the overall score. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Strong Revenue Growth

A 64.6% revenue increase signals durable top-line expansion and stronger market penetration. Sustained revenue growth supports scale economies, improves supplier negotiating power, and provides a foundation for reinvestment in stores and merchandising that can enhance long-term margins and cash generation.

Improving Profitability & Margins

Net margin improvement to 3.8% and expanding EBIT/EBITDA margins indicate lasting operational gains from better cost control and merchandising mix. Stable gross margins plus operating leverage make profitability improvements more resilient as scale and store productivity increase over multiple quarters.

Positive Cash Generation Trend

Operating cash flow strength and a turnaround to positive free cash flow in 2025 show the company can convert earnings into cash. Durable cash generation underpins capacity to fund capex, service debt and invest in store expansion or inventory, improving financial flexibility if sustained.

Negative Factors

High Leverage

A debt-to-equity ratio of 2.45 and low equity ratio indicate significant reliance on debt financing. Elevated leverage raises interest and refinancing risk, constrains strategic options, and increases vulnerability to demand or margin shocks across several quarters if deleveraging does not progress.

Low FCF Conversion from Earnings

High capital expenditures suppress free cash flow relative to net income, limiting distributable cash and capacity to pay down debt. If capex remains elevated, it could strain liquidity and delay balance sheet repair, making the company sensitive to any slowdown in operating cash generation.

Brick-and-mortar Concentration

The company primarily depends on physical stores with no disclosed e-commerce strategy. In an industry moving toward omnichannel retailing, this concentration risks higher fixed costs, sensitivity to footfall declines, and slower structural growth unless digital channels or omnichannel capabilities are developed.

V2 Retail Limited Business Overview & Revenue Model

Company Description

V2 Retail Limited engages in the retail trade of garments, textiles, and accessories in India. The company sells its products under the Godspeed, Herrlich, Glamora, ebellia, and Honey Brats brands. As of May 05, 2021, it operated 93 retail stores. The company was incorporated in 2001 and is based in New Delhi, India.

How the Company Makes Money

V2 Retail Limited primarily makes money by purchasing merchandise from suppliers and selling it to end customers through its retail stores at a markup (i.e., the difference between the selling price and the cost of goods sold drives gross margin). Its key revenue stream is retail sale of goods, led by apparel and supplemented by other lifestyle/non-apparel categories carried in-store (where applicable). Earnings are influenced by (1) store footprint and same-store sales growth (customer traffic and conversion), (2) product mix and private-label vs. sourced brands (to the extent the company sells own/controlled labels), (3) merchandising and inventory management (discounting, stock turns, shrinkage), and (4) procurement economics and supplier terms that affect product costs. Specific details on revenue split by category, the extent of private-label contribution, e-commerce contribution, or named strategic partnerships are null.

V2 Retail Limited Financial Statement Overview

Summary

V2 Retail Limited shows strong growth and improving profitability, driven by revenue expansion and operational efficiency. However, high leverage poses financial risk, and cash flows, while positive, require careful management of capital expenditures to ensure liquidity.

Income Statement

V2 Retail Limited's income statement reflects a robust growth trajectory with a significant revenue increase over the years, highlighted by a 62.3% growth from 2024 to 2025. The gross profit margin has been stable, while the net profit margin improved to 3.8% in 2025, indicating better cost control and profitability. The steady increase in EBIT and EBITDA margins also showcases enhanced operational efficiency. However, the company experienced losses in prior years, which should be monitored for sustained profitability.

Balance Sheet

The balance sheet shows a moderately leveraged financial position with a debt-to-equity ratio of 2.45 in 2025, which suggests significant reliance on debt financing. The equity ratio is 21.3%, indicating a lower reliance on equity. Return on Equity (ROE) improved to 20.8% in 2025, showcasing efficient use of shareholders' equity to generate profit. Despite improvements, high debt levels might pose risks in adverse market conditions.

Cash Flow

Cash flow analysis reveals a fluctuating but generally positive cash flow situation, with free cash flow turning positive in 2025 after a decline in the previous year. Operating cash flow remains healthy, supporting the company's operational needs. The free cash flow to net income ratio is low due to the high capital expenditures, which could strain liquidity if not managed carefully. The operating cash flow to net income ratio reflects good cash generation relative to profits.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	24.30B	18.84B	11.61B	8.39B	6.28B	5.37B
Gross Profit	6.55B	2.93B	1.21B	2.86B	586.29M	1.47B
EBITDA	3.47B	2.65B	1.54B	913.18M	819.19M	720.92M
Net Income	995.21M	720.32M	278.11M	-128.17M	-116.77M	-128.43M
Balance Sheet
Total Assets	23.87B	16.28B	10.27B	7.94B	7.92B	8.13B
Cash, Cash Equivalents and Short-Term Investments	267.37M	94.04M	94.48M	62.28M	74.13M	225.05M
Total Debt	13.13B	8.50B	5.25B	4.24B	3.98B	3.96B
Total Liabilities	20.00B	12.82B	7.52B	5.47B	5.34B	5.44B
Stockholders Equity	3.87B	3.46B	2.75B	2.47B	2.58B	2.69B
Cash Flow
Free Cash Flow	239.50M	224.64M	539.16M	732.76M	418.49M	-242.13M
Operating Cash Flow	1.10B	1.57B	934.25M	863.57M	586.14M	33.72M
Investing Cash Flow	-772.44M	-1.31B	-392.98M	-122.73M	-157.11M	-203.00M
Financing Cash Flow	-272.03M	-265.06M	-495.98M	-757.02M	-582.92M	-216.36M

V2 Retail Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2435.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:V2RETAIL, the sentiment is Negative. The current price of 2435.5 is above the 20-day moving average (MA) of 1975.14, above the 50-day MA of 2038.68, and above the 200-day MA of 2026.15, indicating a bearish trend. The MACD of -24.41 indicates Negative momentum. The RSI at 42.81 is Neutral, neither overbought nor oversold. The STOCH value of 69.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:V2RETAIL.

V2 Retail Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARVIND	69 Neutral	₹90.36B	21.31	―	1.18%	8.84%	41.74%
V2RETAIL	62 Neutral	₹70.21B	20.98	―	―	65.91%	139.39%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
VMART	60 Neutral	₹41.28B	16.14	―	―	16.45%	―
ARVINDFASN	56 Neutral	₹51.17B	65.33	―	0.31%	10.72%	-115.52%
GOKEX	56 Neutral	₹42.31B	92.98	―	―	22.27%	7.09%
ABFRL	48 Neutral	₹72.06B	-15.34	―	―	-32.83%	31.19%

V2 Retail Limited Corporate Events

V2 Retail Files Q3 FY26 Earnings Call Transcript with Exchanges

V2 Retail Limited has released the transcript of its Q3 FY 2026 earnings conference call held digitally with analysts and investors on February 4, 2026. The company notified the stock exchanges that the call transcript, which discusses its quarterly financial results, has been filed in compliance with SEBI disclosure norms and will also be made available on its website, enhancing transparency and access to information for stakeholders.

The disclosure underscores V2 Retail’s adherence to regulatory requirements and its efforts to maintain open communication with the investment community. By circulating the detailed earnings call transcript, the retailer provides investors and analysts with deeper insight into its recent performance and management commentary, supporting more informed assessment of the company’s prospects.

V2 Retail Discloses Monitoring Report on QIP Fund Utilisation for December Quarter

V2 Retail Limited has disclosed that India Ratings & Research Private Limited, appointed as the independent monitoring agency, has issued its report on the utilization of funds raised via the company’s Qualified Institutions Placement (QIP) for the quarter ended 31 December 2025. The disclosure, made in compliance with SEBI’s listing and capital-raising regulations, underscores the company’s adherence to mandated transparency and oversight on how QIP proceeds are deployed, providing additional comfort to institutional investors and other stakeholders regarding governance around capital utilization.

V2 Retail Publishes Q3 and Nine-Month FY 2025-26 Investor Presentation

V2 Retail Limited has released its investor presentation for the third quarter and nine-month period of FY 2025-26, in line with its disclosure obligations under SEBI’s listing regulations. The presentation, which has been filed with the stock exchanges and uploaded to the company’s website, is intended to update investors and other stakeholders on the company’s recent financial and operational performance over the period.

V2 Retail Files SEBI Compliance Certificate for December 2025 Quarter

V2 Retail Limited has informed the stock exchanges that it has submitted a confirmation certificate from its Registrar and Transfer Agent for the quarter ended December 31, 2025, in compliance with Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The filing underscores the company’s adherence to regulatory requirements governing dematerialised securities and depository operations, providing comfort to investors and other stakeholders about its ongoing compliance and governance standards in the capital markets.