New Delhi: V2 Retail share price plunged nearly 20 per cent on Monday, October 5, hitting a fresh 52-week low after the retailer released its September quarter business update. The sharp decline came despite a 28.4 per cent year-on-year increase in standalone revenue, as investors focused on the company’s same-store sales performance and the impact of the shift in the festive calendar.
V2 Retail shares fell as much as 19.44 per cent to Rs 162.55 on the BSE, marking a fresh 52-week low. The stock was trading 12.59 per cent lower at Rs 176.40 at 12:15 pm, according to the figures cited in the market update. Business Standard also reported that the stock fell around 19 per cent in intraday trading amid heavy volumes.
The sharp market reaction came even though V2 Retail reported strong headline revenue growth for the second quarter of FY27.
Revenue rises 28.4 per cent in Q2
V2 Retail’s standalone revenue rose to Rs 905 crore in the September 2026 quarter from Rs 705 crore in the corresponding quarter last year.
That represents a year-on-year increase of 28.4 per cent, with the company attributing the growth largely to continued expansion of its store network.
However, revenue growth was accompanied by a much weaker reported same-store sales number.
The company’s same-store sales growth, or SSSG, declined 14.9 per cent on a calendar basis during Q2 FY27. The company said the figure was significantly affected by the timing of the festive season.
Last year’s September quarter included Navratri and Durga Puja, while the corresponding festivals fell in October this year. As a result, a substantial portion of festive demand that would normally have contributed to the September quarter will instead be reflected in the December quarter.
Festival-normalised SSSG remains stable
V2 Retail said the reported SSSG number needs to be viewed in the context of the changed festival calendar.
On a festival-normalised basis, SSSG stood at 0.5 per cent in Q2 FY27. The company said this indicated broadly stable underlying performance when the difference in festival timing was taken into account.
The shift is particularly important for an apparel retailer because festive periods can generate significant customer traffic and spending.
Navratri began on October 1 in 2026, compared with September 22 in 2025. This moved the festive demand window from the second quarter into the third quarter of the current financial year.
V2 Retail said the company is therefore positioned to benefit from the festive demand expected in Q3.
“With the festive season ahead, we are well-positioned to capture the demand uplift in Q3 while sustaining our long-term growth momentum,” the company said in its regulatory update.
Store expansion continues
V2 Retail continued to expand its physical retail network during the quarter.
The company opened 49 new stores and closed three stores during Q2 FY27. This took the total number of stores opened during the first half of the financial year to 106.
As of September 30, 2026, V2 Retail had approximately 46.28 lakh square feet of retail space spread across 427 stores.
The rapid expansion has been an important contributor to the company’s revenue growth. At the same time, the company noted that a significant portion of its newer stores remains in the ramp-up phase.
Monthly sales per square foot stood at Rs 700 during the quarter.
The combination of new-store additions and the festive-season shift therefore provides important context when assessing the September quarter’s headline numbers.
V2Kart makes e-commerce debut
V2 Retail also entered the e-commerce space during the quarter.
The company soft-launched V2Kart in September 2026 in Delhi-NCR and Lucknow. Orders placed through the platform are fulfilled directly from the company’s stores.
The move gives V2 Retail an additional sales channel as organised retail increasingly combines physical stores with digital ordering and fulfilment.
The company is simultaneously continuing to expand its brick-and-mortar presence, particularly across markets where it sees opportunities for further store growth.
Why did V2 Retail shares fall so sharply?
The sharp fall in the share price came despite strong revenue growth, highlighting the difference between headline sales growth and underlying same-store performance.
Investors appear to have focused on the reported 14.9 per cent decline in SSSG, even though the company said festival-normalised SSSG was 0.5 per cent.
The market reaction also reflects broader concerns surrounding discretionary retail. Apparel retailers face competition from established organised players as well as rapidly expanding e-commerce platforms.
India Ratings and Research has highlighted intense competition and the sensitivity of discretionary retail to economic cycles as risks for the sector. It has also pointed to inventory obsolescence and changing consumer preferences as factors that can affect fashion-focused retailers.
For V2 Retail, the performance of recently opened stores and the company’s ability to convert the upcoming festive demand into stronger same-store sales will therefore remain important factors for investors.
V2 Retail share price performance
The latest fall adds to the recent weakness in V2 Retail shares.
According to the market figures cited in the business update, the stock had already declined more than 18 per cent over one month and over 23 per cent over three months. It was down around 8 per cent over six months and 21 per cent over one year before Monday’s sharp fall.
The stock’s longer-term performance, however, has been considerably stronger.
The figures cited in the update showed V2 Retail delivering multibagger returns of around 940 per cent over three years and approximately 1,120 per cent over five years.
Market data also shows that the stock had closed at Rs 201.39 on October 1 before Monday’s sharp decline.
The latest correction therefore comes after a period in which the stock had delivered substantial long-term gains.
Festive quarter becomes crucial
With Navratri and Durga Puja falling in October this year, the December quarter will provide a more meaningful test of V2 Retail’s festive-season performance.
The company expects the timing shift to support demand in Q3 FY27. Investors will consequently be watching whether higher festive traffic translates into stronger same-store sales, improved productivity and sustained revenue growth.
The expansion of the store network will also remain an important variable. V2 Retail’s ability to ramp up its newly opened stores efficiently will determine how much of the additional retail footprint translates into profitable growth.
The launch of V2Kart adds another potential growth avenue, although its contribution to overall revenue is likely to become clearer only as the platform scales.
What investors will watch next
V2 Retail’s Q2 update presents a mixed picture: revenue growth remains strong and store expansion continues, but reported same-store sales declined sharply because of the unfavourable festival comparison.
The festival-normalised SSSG of 0.5 per cent provides a more stable picture of underlying sales, according to the company, while the upcoming festive quarter could offer a clearer indication of consumer demand.
For now, the market has responded negatively, pushing the stock to a new 52-week low.
The key question for the coming quarters will be whether V2 Retail can convert its rapidly expanding store network and festive-season opportunity into sustained same-store growth. The December quarter results are likely to provide a more complete picture of whether the September quarter’s weakness was primarily a calendar effect or part of a broader moderation in consumer demand.