Arthneeti
V2 RetailQ1 FY25

V2 Retail Q1 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹218P/E: 48.5Market Cap: ₹7.9K CrSector: Retailing

Management growth scorecard

Revenue

Category 1

Margin

Category 2

Fundraise

N/A

Order

N/A

Capex

Yes

2 of 3 growth signals are positive.

Full analysis

Revenue guidance

Category 1
  • The company targets a long-term revenue growth of 30% to 40% year-on-year.
  • Same store sales growth (SSG) guidance is around 10% annually going forward, considered a good growth rate.
  • Sales per square feet target progression: Rs. 1,000 annually this year, then Rs. 1,200, followed by Rs. 1,500 in subsequent years.
  • Potential exists to double per square feet sales over the longer term with proper execution.
  • Plans to add 40 to 50 net new stores in the current year, potentially 60 to 70 stores next year depending on business performance.
  • Volume growth sustained a 55% increase in Q1 FY25.
  • Focus on product development with 80% in-house designed goods targeted to improve sales throughput.
  • Full-price sales contribution increased to 93% in Q1 FY25, supporting revenue growth.
  • EBITDA and PAT showed 56% and 162% YoY growth respectively, underpinning operational scalability.

See what V2 Retail management said on margin guidance — free account, 30 seconds.

Fundraise plans

  • As of the latest update, V2 Retail Limited has a current debt of about ₹78 crores, primarily a cash credit limit from banks used for vendor bill discounting.
  • There is no mention or indication of any new debt or equity fundraising plans in the near future.
  • The company focuses on sustainable growth driven by internal accruals and cash flows.
  • Expansion plans, such as adding 40 to 50 stores in the current year and potentially 60 to 70 stores next year, will be funded through internal accruals rather than through new external fundraising.

See what V2 Retail management said on order book — free account, 30 seconds.

Capex plans

Yes
The transcript does not explicitly mention any current or future capex, capital investment, or strategic investment plans in detail. However, some relevant points can be inferred: - The company is focused on opening 40 to 50 new stores in FY25 and possibly 60 to 70 more the following year, indicating ongoing capital expenditure on store expansion. - There is no mention of plans to open new manufacturing units; owned manufacturing will remain constant while contract manufacturing increases. - The company is evaluating an omnichannel model to leverage store inventory for local e-commerce deliveries, which may involve technology or logistics investments. - Emphasis on improving product design in-house (targeting 80% in-house design) may involve investment in design capabilities. - Capex seems to be primarily channelled towards store expansion and operational improvements rather than large new asset investments. No explicit strategic investments or major capital projects beyond these were disclosed.

Track V2 Retail — get its next earnings analysis in your feed

Margin guidance

Category 2
  • The company targets a revenue growth of 30% to 40% year-on-year over the next 3 to 4 years.
  • Pre-IndAS EBITDA margin is expected to improve to 8%-9% going forward, up from 7%-8% targeted for FY25.
  • Net profit margin (PAT) is expected to rise from about 3.5% in FY24 to 4.5% in FY25 and further improve to 4.5%–5.5%.
  • Earnings growth is strong, with a 162% YoY PAT increase reported for Q1 FY25.
  • Same Store Sales Growth (SSG) guidance is around 10% going forward with optimism for double-digit growth.
  • ROE is targeted at 20%-22% internally.
  • EBITDA growth target stands at 30%-40% in line with revenue, focusing on sustainable and profitable expansion.

Order book

The provided transcript from the V2 Retail Limited Q1 FY25 earnings call does not mention any details regarding the current or expected order book or pending orders. Key discussion points were around: - Retail growth, competition with online retailers, and store expansion plans. - Sales figures, per square feet sales targets, and margin strategies. - Manufacturing and inventory management. - Seasonality and market demand. - Debt and funding arrangements. No information on order book status or pending orders is disclosed in this part of the document.

How does V2 Retail rank vs peers in Retailing?

Pro feature
ThisV2 Retail
Rev 1Mar 2
See where V2 Retail sits in RetailingSee which companies these are, and every other name in the sector.Open rankings

How does V2 Retail rank in Retailing?

Compare V2 Retail against every Retailing company (Q1 FY25) on revenue, margins and earnings-call signals.

View Retailing leaderboard →

Continue your research

What V2 Retail's management said in earlier quarters

Others in Retailing this season

  • PATELRMART (Q1 FY27)

    INR 1 crore monthly revenue. Key concall takeaways from Patel Retail Ltd's Q1 FY27 earnings call — and how it ranks against sector peers.

  • Credo Brands (Q1 FY27)

    Profit after tax for Q1 FY27 was modest (INR 2.3 crores with 1.8% PAT margin), reflecting a phase of reinvestment. Key concall takeaways from Credo Brands…

  • Entero Healthcare Solutions Ltd (Q1 FY27)

    Profit after tax (PAT) saw substantial growth in Q1, with a PAT margin of 2.7%; the company is focused on sustaining and building on this margin. Key concall…

  • Aditya Bir. Fas. (Q1 FY27)

    10% space addition). Key concall takeaways from Aditya Birla Fashion & Retail Ltd's Q1 FY27 earnings call — and how it ranks against sector peers.

Compare:vs Eternal Ltdvs Avenue Super.vs Trent

🔎 Who's planning the most growth?

Companies ranked by management's own guidance — revenue, margins, capex and order book, from every earnings call in India.

See rankings →