Revenue Growth and Operating Performance
Over the last ten years, V2 Retail's net sales have expanded markedly, rising from ₹286.77 crores in March 2015 to ₹1,884.50 crores in March 2025. This represents a more than sixfold increase, underscoring the company's successful expansion and market penetration. The total operating income mirrors this growth, with no other operating income reported, indicating that the bulk of revenue is derived from core retail operations.
Operating profit before depreciation, interest, and tax (PBDIT) excluding other income has also shown a positive trend, increasing from ₹27.77 crores in 2015 to ₹257.82 crores in 2025. The operating profit margin improved from 9.68% in 2015 to 13.68% in 2025, reflecting enhanced operational efficiency and cost management. Gross profit margin similarly rose from 7.16% to 10.45% over the same period.
Despite these gains, the company experienced a dip in profitability during the fiscal years ending 2021 to 2023, with negative profit after tax (PAT) margins recorded in those years. The PAT margin was -2.38% in 2021 and improved gradually to a positive 3.82% in 2025, signalling a recovery in bottom-line performance.
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Profitability and Earnings Per Share Trends
V2 Retail's profit before tax (PBT) fluctuated significantly over the past decade. After posting a positive PBT of ₹18.45 crores in 2015, the company faced losses in the early 2020s, with PBT turning negative in 2021, 2022, and 2023. However, the fiscal year ending March 2025 marked a strong turnaround with a PBT of ₹98.22 crores. Correspondingly, the company’s earnings per share (EPS) reflected this volatility, moving from ₹4.14 in 2015 to negative values in the early 2020s, before rebounding to ₹20.82 in 2025.
Interest expenses have increased over the years, rising from ₹9.75 crores in 2015 to ₹67.91 crores in 2025, indicating higher leverage. Despite this, the company managed to improve its gross profit before depreciation and tax (PBDT) from ₹20.54 crores in 2015 to ₹196.87 crores in 2025, highlighting operational improvements.
Balance Sheet and Asset Management
On the balance sheet front, V2 Retail’s total assets have grown substantially from ₹698.88 crores in 2020 to ₹1,568.41 crores in 2025. Shareholders’ funds increased from ₹279.17 crores in 2020 to ₹346.30 crores in 2025, reflecting retained earnings and capital infusion. The book value per share rose from ₹81.86 in 2020 to ₹100.12 in 2025, signalling enhanced net asset value for shareholders.
The company’s total debt has also increased, reaching ₹112.01 crores in 2025 from ₹32.53 crores in 2020, with a mix of secured and unsecured borrowings. Non-current liabilities saw a sharp rise, largely due to other long-term liabilities, which more than doubled from ₹270.89 crores in 2020 to ₹674.22 crores in 2025. This increase warrants close monitoring for future financial stability.
Cash Flow and Liquidity Position
Cash flow from operating activities has shown a positive trend, rising from ₹74 crores in 2020 to ₹222 crores in 2025. This improvement indicates stronger cash generation from core business operations. Investing activities have consistently been cash outflows, reflecting ongoing capital expenditure and expansion efforts. Financing activities have mostly been cash outflows as well, suggesting debt repayments or dividend payments.
The company’s cash and bank balances have declined from ₹67.53 crores in 2020 to ₹9.40 crores in 2025, which may reflect increased investment in working capital or capital assets. Net current assets remain positive but have decreased from ₹144.72 crores in 2020 to ₹105.77 crores in 2025, indicating a tighter liquidity position.
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Summary of Historical Performance
In summary, V2 Retail has experienced robust revenue growth over the last decade, supported by improving operating margins and a return to profitability after a challenging period. The company’s balance sheet has expanded with increased assets and shareholder equity, although rising debt and long-term liabilities suggest a need for cautious financial management. Cash flow trends indicate healthy operational cash generation, albeit with significant capital investments.
Investors should note the volatility in earnings and the recent recovery in profitability, which may signal a stabilising business model. The company’s ability to sustain growth while managing debt and liquidity will be critical for its future performance in the competitive retail sector.
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