V2 Retail vs V-Mart: Which retail stock is a better buy?

Synopsis:
The​‍​‌‍​‍‌​‍​‌‍​‍‌ second-quarter results for both V2 Retail and V-Mart highlight a sharp contrast in their respective trends. Despite this, the two retailers are experiencing changes in customer demand and are facing challenges at the store ​‍​‌‍​‍‌​‍​‌‍​‍‌level, at the end who wins?

India​‍​‌‍​‍‌​‍​‌‍​‍‌ value-focused retail sector is going through a mixed demand cycle, which is a result of an uneven festive buying pattern, delayed winter seasonality, and GST-related compliance pressures. In this context, the two companies, V2 Retail and V-Mart, had very different results in their second-quarter financial statements. 

Significant differences in company performance indicators such as revenue, margin, and store productivity have unveiled a promising scenario for the next period’s sector’s turn into the post-festive ​‍​‌‍​‍‌​‍​‌‍​‍‌quarter. 

Although both encounter changes in demand trends, their paths of expansion are quite different at the moment. We examine their financials, store metrics, and operating performance in detail through this article to understand which company has a stronger position to advance their growth ​‍​‌‍​‍‌​‍​‌‍​‍‌further.

V2 Retail Ltd

V2​‍​‌‍​‍‌​‍​‌‍​‍‌ Retail is an Indian company that offers clothing, accessories, and lifestyle fashion products both in its stores and online. The company also produces some of the clothes that are sold in its stores. Under its brands such as Godspeed, Herrlich, Glamora, and Honey Brats, the company markets products like T-shirts, jeans, dresses, kidswear, and other trendy outfits. In short, it is a fashion store that sells cheap clothes to ​‍​‌‍​‍‌​‍​‌‍​‍‌everyone.

V2 Retail has a total of 259 stores, of which the majority of them are concentrated in the northern parts of India, like Uttar Pradesh with 48 stores, Bihar with 44 stores and Odisha with 30 stores. It has a total retail area of 27.94 lakh sq. ft.

Coming to its financial highlights, V2 Retail reported an operating revenue of Rs 709 crore in Q2 FY26, representing a staggering 87 percent growth compared to Rs 380 crore in Q2 FY25. Regarding its profitability, V2 Retail reported a net profit of Rs 17 crore in Q2 FY26, a significant turnaround as compared to a loss of Rs 2 crore in Q2 FY25. Coming to its revenue mix, it derived 40 percent of its revenue from the Men’s wear segment, followed by 30 percent from ladies’ wear, Kids wear with 23 percent and the remaining 7 percent from other Lifestyle products.

V2​‍​‌‍​‍‌​‍​‌‍​‍‌ Retail’s operational performance has been a mixed bag in the second quarter of the financial year 2026. The sales per square foot increased by 4 percent from Rs 904 to Rs 938. The Average Bill Value (ABV) went up significantly from Rs 791 to Rs 899, which is about 14 percent higher, and the Average Selling Price (ASP) also went up from Rs 269 to Rs 315, by 17 percent. Unfortunately, Same Store Sales Growth (SSG) has become weaker as it has decreased from 34 percent in Q2 FY25 to 23 percent in Q2 FY26.

V-Mart Retail Ltd

Also, V-Mart​‍​‌‍​‍‌​‍​‌‍​‍‌ is one of those massive retail chains spread all over India with an almost limitless variety of products. To list the major categories first, the store sells clothes for men, women, and kids and then covers an additional wide range of products such as shoes, bags, toys, home items, and even daily essentials like packaged foods, etc. 

Similarly, Vmart has a total of 533 (more than double that of V2) stores, of which the majority of them are also concentrated in the northern parts of India, like Uttar Pradesh with 162 stores, and Bihar with 76 stores. However, it also has a good presence across the southern regions as well like Tamil Nadu with 33 stores and Karnataka with 21 stores.

Coming to its financial highlights, Vmart reported an operating revenue of Rs 807 crore in Q2 FY26, representing a 22 percent growth compared to Rs 661 crore in Q2 FY25. Regarding its profitability, Vmart reported a net loss of Rs 8.87 crore in Q2 FY26, which widened significantly as compared to a loss of Rs 56.51 crore in Q2 FY25. Coming to its revenue mix, it derived 77 percent of its revenue from its Apprael segment, followed by 11 percent from Non-Apparel and the remaining 12 percent from FMCG products.

Vmart’s operational performance also had been a mixed bag in the second quarter of the financial year 2026. The company’s Same Store Sales Growth (SSSG) saw a significant drop from 15 percent to 11 percent, i.e., the demand for the stores already existing has slowed down considerably. V-Mart managed to increase its footfalls, which went up from 1.7 crore to 1.9 crore, thus marking a 14 percent YoY increase and indicating stronger customer inflow. Yet, the conversion rate decreased from 45 percent to 47 percent, thus meaning that fewer visitors turned into buyers. About pricing, the Average Selling Price (ASP) for the total business increased by 4 percent YoY to Rs 214.

​‌‍​‍‌​‍​‌‍​‍‌When comparing the two value retailers, V2 Retail seems to have a better position for the next stage of growth. Its impressive revenue increase, profit-making again, more normal bill values, and upgrading sales metrics (even though SSG has declined) all point to a stronger demand momentum. 

On the other hand, V-Mart is developing at a slower pace, still incurring losses, and its SSG and conversion are getting weaker, thus indicating that its core business is under pressure. In general, V2 is revealing more conspicuous recovery trends and a stronger growth momentum in the near future than V-Mart. ​‍​‌‍​‍‌​‍​‌‍​‍‌

Written by Satyajeet Mukherjee

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