V2 Retail Reports Strong Growth Amid Rising Debt and Interest Expenses

V2 Retail, a small-cap player in the Garments & Apparels industry, has recently undergone a financial trend adjustment reflecting its performance metrics for the quarter ending June 2025. The company reported a robust return on capital employed (ROCE) of 13.89%, indicating effective utilization of capital. Additionally, profit before tax (PBT) less other income for the quarter reached Rs 32.37 crore, showcasing a significant growth of 58.83%. The net sales also hit a record high of Rs 632.22 crore, while profit after tax (PAT) stood at Rs 24.66 crore, marking a growth of 50.9%.
However, challenges persist for V2 Retail. The interest expense over the latest six months has risen to Rs 44.17 crore, reflecting a growth of 34.66%. Furthermore, the debt-equity ratio has reached a concerning 2.45 times, indicating a higher reliance on debt financing.

In terms of market performance, V2 Retail has outperformed the Sensex over various time frames, particularly over the past year, where it achieved a remarkable stock return of 79.64% compared to the Sensex's 2.00%. The company's long-term performance is even more striking, with a three-year return of 1463.87% and a five-year return of 3113.25%, significantly surpassing the Sensex's returns in the same periods.