V2 Retail shares fall 19% after Q2 update on revenue, store expansion

V2 Retail Ltd shares fell 19% in Monday's trade after the company reported a 28.4% year-on-year (YoY) rise in standalone revenue to Rs 905 crore for the second quarter of FY27. The company also continued to expand its store network during the quarter, while same-store sales growth stood at 0.5% on a festival-normalised basis.

The retailer said its revenue increased from Rs 705 crore in Q2 FY26 to Rs 905 crore in Q2 FY27. It said the growth was supported by continued store network expansion, while noting that the festive season had shifted from the second quarter last year to the third quarter this year.

On Monday, V2 Retail shares touched a low of Rs 162.55, down 19.45% from the previous close of Rs 201.80.

On a festival-normalised basis, same-store sales growth (SSSG) stood at 0.5% in Q2 FY27. On a calendar basis, SSSG was -14.9%, as Q2 FY26 included the Navratri and Durga Puja period, whereas these festivals fall in Q3 FY27 this year. V2 Retail said the timing shift underscores the importance of looking through seasonal distortions to assess the underlying stability of its performance.

Monthly sales per square foot (PSF) stood at Rs 700 in Q2 FY27. The company said the quarter did not include the Navratri and Durga Puja period, while a larger portion of its store network was still in the ramp-up phase.

V2 Retail opened 49 new stores and closed three during the quarter, taking its total store count to 427 as of September 30, 2026. Of these, 106 stores were opened during the first half of FY27. The company said its expansion remained focused on high-potential Tier 2 and Tier 3 consumption markets.

The company's retail footprint expanded to approximately 46.28 lakh sq ft across 427 stores as of September 30, 2026. V2 Retail said the expansion reflects the scalability of its footprint and its focus on deepening its reach across India's growth corridors.

In other updates, India Ratings upgraded the company's long-term rating to IND A / Positive from IND A- / Stable in August 2026, reflecting strengthened financial profile and outlook. The company also soft-launched its V2Kart e-commerce platform in September 2026 in Delhi NCR and Lucknow, with orders fulfilled directly from stores.

With the festive season ahead, V2 Retail said it was well-positioned to capture the demand uplift in Q3 while sustaining its long-term growth momentum.