Quarterly Performance Sets New Benchmarks
In the quarter ended December 2025, V2 Retail Ltd achieved a series of all-time highs across key financial parameters. Net sales surged to ₹929.18 crores, marking the strongest quarterly revenue in the company’s history. This robust top-line growth was complemented by a significant expansion in operating profitability, with PBDIT reaching ₹173.71 crores. The company’s profit before tax (excluding other income) also hit a record ₹106.01 crores, while net profit after tax stood at ₹81.59 crores.
These figures translated into an earnings per share (EPS) of ₹28.00 for the quarter, the highest ever reported by V2 Retail. The operating profit to interest ratio improved markedly to 7.91 times, underscoring the company’s enhanced ability to service its debt obligations from core operations. Additionally, cash and cash equivalents at the half-year mark rose to ₹15.24 crores, providing a stronger liquidity cushion.
Financial Trend Shift: From Very Positive to Flat
Despite the record-breaking quarterly results, the company’s financial trend rating has moderated. Over the past three months, the financial trend score improved from 20 to 29, signalling a very positive quarter. However, the overall financial trend parameter has recently shifted from very positive to flat, reflecting emerging concerns that temper the upbeat operational performance.
One of the key challenges is the rising interest expense, which has grown by 34.17% to ₹72.72 crores over the nine-month period. This increase in interest costs has contributed to a higher debt-equity ratio, which now stands at 3.39 times at the half-year mark — the highest level recorded by the company. This elevated leverage raises questions about the sustainability of the current growth trajectory and the company’s financial risk profile.
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Stock Performance Relative to Market Benchmarks
V2 Retail’s stock price currently trades at ₹2,011.80, down slightly by 0.62% from the previous close of ₹2,024.45. The stock has experienced notable volatility over the past year, with a 52-week high of ₹2,572.00 and a low of ₹1,398.00. Despite recent short-term weakness, the company’s long-term returns have been exceptional. Over a 10-year horizon, V2 Retail has delivered a staggering 4,060.91% return, vastly outperforming the Sensex’s 252.89% gain over the same period.
Even on a three-year basis, the stock’s return of 2,195.27% dwarfs the Sensex’s 36.81%, highlighting the company’s strong growth credentials. However, year-to-date performance has been disappointing, with a decline of 17.76% compared to the Sensex’s modest 2.07% fall, reflecting recent market pressures and investor caution.
Operational Strengths and Emerging Risks
V2 Retail’s operational metrics remain impressive, with the company leveraging its scale and brand presence in the garments and apparels sector. The highest-ever quarterly net sales and profitability figures underscore effective execution and market demand resilience. The improved operating profit to interest ratio indicates better coverage of interest expenses from earnings, a positive sign for creditors and investors alike.
However, the rising debt-equity ratio and increased interest burden pose risks to financial stability. The company’s leverage at 3.39 times is relatively high for the sector, potentially constraining future capital raising and increasing vulnerability to interest rate fluctuations. Investors should monitor the company’s debt management strategies closely in coming quarters.
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Mojo Score and Rating Update
MarketsMOJO currently assigns V2 Retail a Mojo Score of 57.0, reflecting a Hold rating. This marks a downgrade from the previous Buy grade issued on 5 January 2026, signalling a more cautious stance amid the evolving financial landscape. The Market Cap Grade stands at 3, indicating a mid-tier valuation relative to peers in the garments and apparels sector.
The downgrade reflects the balance between the company’s record operational performance and the emerging financial risks, particularly the elevated leverage and rising interest expenses. Investors are advised to consider these factors carefully when evaluating V2 Retail’s stock for portfolio inclusion.
Outlook and Investor Considerations
Looking ahead, V2 Retail’s ability to sustain revenue growth and margin expansion will be critical. The company’s recent quarterly results demonstrate strong market demand and operational efficiency, but the flat financial trend suggests that margin pressures and financial risk could weigh on future performance.
Effective debt management and interest cost control will be essential to maintain profitability and investor confidence. Given the stock’s recent underperformance relative to the Sensex year-to-date, investors should weigh the company’s long-term growth potential against near-term financial challenges.
In summary, V2 Retail Ltd remains a significant player in the garments and apparels sector with impressive historical returns and record quarterly results. However, the shift in financial trend and increased leverage warrant a cautious approach, with a Hold rating reflecting the need for close monitoring of upcoming quarterly disclosures.
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