**V2 Retail Accelerates Growth with 26 New Store Openings in Q1**
V2 Retail is experiencing rapid expansion, having opened 26 new stores in the first quarter of 2025, according to CEO Akash Agarwal. As of March 2025, the company operates 189 stores across 20 states. In an interview, Agarwal mentioned that based on current performance, there may be an increase in their growth projections, although a final decision is still pending. This marks the fastest growth phase for V2 Retail since its establishment in 2011.
Despite this aggressive expansion, profitability remains a key focus for the company. Agarwal, who became CEO on May 27, 2025, emphasized that all stores are Ebitda positive, with new store revenue showing a 40% improvement in first profit sales compared to competitors. Ebitda, which stands for earnings before interest, taxes, depreciation, and amortization, is a crucial indicator of operational profitability.
In the fiscal year 2024-25, V2 Retail reported a consolidated net profit of ₹72 crore, a significant increase of 159% from ₹27.8 crore in the previous year. Revenue surged by 62% to ₹1,884.5 crore, with Ebitda reaching ₹257.8 crore and margins improving to 13.7%. The company is also generating a return on equity exceeding 25%, which Agarwal described as an attractive return for investors.
V2 Retail primarily targets low- and middle-income consumers in underpenetrated markets, aiming for annual revenue growth of 40-50%. Agarwal stated that their internal goal is to boost revenue by at least 50% each year. Same-store sales have consistently grown nearly 30% year-on-year for the past two years, with full-price sales making up 89% of total sales in 2024-25, up from 87% the previous year. To maintain this growth, the retailer has improved sourcing and inventory management, reducing the share of stock older than 12 months from 25% to under 5%.
The company faces competition from V-Mart Retail Ltd, Style Baazar, and DMart, with DMart focusing primarily on food and groceries while expanding into general merchandise and apparel. V2 Retail has established a strong presence in eastern India, with 38 stores in Bihar, 35 in Uttar Pradesh, and 26 in Odisha, collectively representing over 52% of its total store network. This positions V2 Retail as the leading value retailer in eastern markets, while DMart’s operations are concentrated in western and southern India.
In conclusion, V2 Retail’s strategic expansion and focus on profitability are setting the stage for continued growth in the competitive retail landscape.
**FAQ**
**What is V2 Retail’s growth strategy?**
V2 Retail aims for aggressive expansion by targeting low- and middle-income consumers in underpenetrated markets, with a goal of achieving 40-50% annual revenue growth.
