V2 Retail shares fell sharply by 19% on October 5 after its Q2 FY27 business update disappointed investors. The company reported strong revenue growth but weak same store sales, raising concerns about near term profitability.
The retailer’s standalone revenue rose 28.4% year on year to ₹905 crore in Q2 FY27. However, same store sales growth was only 0.5% compared to 7.5% in Q1. Sales per square foot dropped to ₹700 from ₹886 in the previous quarter. The company added 49 new stores in Q2, taking total additions in the first half of FY27 to 106 and expanding its footprint to 427 stores across 46.28 lakh square feet. Analysts noted that festive demand was not captured in Q2 as Navratri and Durga Puja fell in October.
The stock opened at ₹182.15 and slipped to ₹162.55 intraday. Technical experts highlighted that the share price broke below its 100 week EMA for the first time since June 2023. Resistance is seen at ₹185 to ₹190 while support lies at ₹155 to ₹150. A fall below this range could trigger further weakness.
Market watchers believe expansion in Tier 2 and Tier 3 cities shows long term promise but short term margins remain under pressure. Investors are advised to monitor festive quarter sales and store ramp up efficiency before fresh commitments.