V2 Retail Limited — Important, 23-01-2025: General Updates

**Financial Highlights:** V2 Retail reported consolidated revenue of ₹590.9 crore for Q3 FY25, marking a robust 58% increase year-on-year. Gross profit reached ₹189.5 crore, a 61% rise, reflecting a GP margin of 32.1%. EBITDA surged by 83% to ₹111.5 crore, with an EBITDA margin of 18.9%. For 9M FY25, revenue grew by 60% to ₹1,386 crore, and PAT more than doubled to ₹65.6 crore.

**Strategic Initiatives and Growth Drivers:** The company has focused on expanding its retail footprint, ending Q3 FY25 with 160 stores across 18 states and a retail area of approximately 17.22 lakh sq. ft. during an increase in same-store sales growth (SSG), which stood at ~25% for the quarter and 31% for the nine months ended December 2024.

**Business Developments:** The company opened 21 new stores in Q3 FY25, contributing to an overall increase in retail presence.

**Market Position and Competitive Advantage:** V2 Retail continues to target the price-sensitive segment of the market, primarily serving the 'neo-middle class' and 'middle-class'. With a product diversity that includes men's, women's, and kids' apparel, it benefits from a strong MRP sales contribution of 91%.

**Investor Implications:** The strong financial performance and ambitious growth strategy suggest a positive outlook for V2 Retail. The continual increase in same-store sales and strategic store openings may provide significant upside potential for investors.