Value retailer V2 Retail joined rival V-Mart Retail on Friday in reporting robust revenue and same store sales growth (SSG) for the September quarter (Q2 of FY ’26), driven by GST-fueled festive purchasing.
As per its latest business update released on Friday, V2 Retail reported 86% year-on-year revenue growth and 23.4% SSG in Q2, thanks to festivals like Durga Puja and Navratri. The retailer stated that even if Durga Puja sales are excluded since the festival was celebrated in Q2 rather than Q3, SSG for the period is still 10.3% as it is driven by strong consumer demand, regulated inventory management and limited markdowns. It stated that for the quarter, sell-through rates were also high led by data-based assortment curation. Sector experts are of the opinion that with the pick-up in demand in small centres after months of a retail slowdown, both V2 Retail and V-Mart primarily target consumers in Tier-2 and Tier-3 cities.
The two businesses’ Q2 results build on their first quarter of FY ’26 results, in which V-Mart and V2 Retail recorded revenue increases of 12.6% and 52% year-over-year to Rs. 885 crore (US $ 99.70 million) and Rs. 632 crore (US $ 71.20 million), respectively, helped by modest 1% and 5% SSG. The June quarter saw the addition of 15 and 28 new stores, respectively, demonstrating that expansion was still a crucial lever. In Q1, the retailers shut down two stores (V-Mart) and one store (V2 Retail).
According to its business update for the period, on Wednesday, V-Mart Retail said that it saw a 22% year-on-year growth and SSG of 11% in Q2. The growth has been visible equally in both its flagship V-Mart stores and Unlimited outlets which are mainly for families.
Value stores like V-Mart and V2 Retail have benefited from the GST reductions on clothing, according to analysts. GST on clothing up to Rs. 2,500 (US $ 28) is now 5%, while GST on clothing over Rs. 2,500 (US $ 28) is 18%, up from 12% previously.
In Q2, V-Mart Retail and V2 Retail each opened 25 and 43 new locations as part of their ongoing expansion efforts. In Q2, V-Mart shuttered two underperforming locations, increasing its total number of stores to 533 as of 30th September 2025. By the end of the September quarter, V2 Retail had 259 stores.
As per V-Mart Retail, the new stores include five in Karnataka, four each in Uttar Pradesh and Bihar, two each in West Bengal and Jharkhand and one each in Jammu & Kashmir and Maharashtra.
