V2 Retail's 13.99% margin beats the sector median
Operating profit was not materially supported by other income, but interest and depreciation remained significant charges below the operating line.
Filed 13 Aug 2026, 14:22 IST · V2 Retail Ltd (V2RETAIL)
Key takeaways
- V2 Retail's consolidated operating margin of 13.99% was 0.71 percentage points above the 13.28% median of 171 Consumer Discretionary peers.
- The Rs 41.85 cr consolidated net profit was driven mainly by operations, with just Rs 0.99 cr of other income against Rs 51.59 cr of pre-tax profit.
- Interest of Rs 24.99 cr and depreciation of Rs 63.87 cr absorbed much of the Rs 139.46 cr operating profit before tax.
Price around the results
Operating margin clears the peer benchmark
V2 Retail reported a consolidated operating margin of 13.99%, placing it 0.71 percentage points above the 13.28% median for 171 Consumer Discretionary peers that have reported the quarter. The comparison suggests the quarter's operating performance was above the sector midpoint, although there is no sequential or year-on-year margin direction to assess.
Depreciation and interest shaped pre-tax earnings
The gap between consolidated operating profit of Rs 139.46 cr and pre-tax profit of Rs 51.59 cr was shaped by depreciation of Rs 63.87 cr and interest of Rs 24.99 cr. This makes the below-operating-line charges more important to earnings than other income, which was only Rs 0.99 cr. The tax rate was 18.87%, with no indication that other income was a material source of profit support.
Profit conversion remains the key earnings read
Consolidated net profit of Rs 41.85 cr translated into EPS of Rs 1.15 after the interest, depreciation and tax charges. With no comparison history supplied for this quarter, the clearest read is the relationship between operating profit and the charges below it rather than a claim about momentum.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹997 cr |
| Other income | ₹1 cr |
| Expenses | ₹858 cr |
| Operating profit | ₹139 cr |
| Operating margin (%) | 13.99% |
| Interest | ₹25 cr |
| Depreciation | ₹64 cr |
| Profit before tax | ₹52 cr |
| Tax | ₹10 cr |
| Net profit | ₹42 cr |
| EPS (₹) | ₹1.15 |
Operating margin of 13.99% compares with a Consumer Discretionary sector median of 13.28% across 171 peers that have reported Q1FY27.
What to watch
- Whether consolidated operating margin holds above 13.99% in the next reported quarter.
- Whether interest remains below Rs 24.99 cr as the earnings base develops.
- Whether the tax rate stays near 18.87% without changing profit conversion.