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V2 Retail shares plunged over 19% on Monday after investors reacted to the company's second-quarter business update released over the long weekend. The decline marked the stock's biggest single-day fall since March 2020.

For the September quarter, V2 Retail reported 28.4% year-on-year revenue growth, supported by the expansion of its store network. Standalone revenue increased to ₹905 crore from ₹705 crore in the corresponding quarter last year.

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However, festive-normalised same-store sales growth stood at just 0.5%. The comparison adjusts each day of the quarter against the corresponding day in the previous year's festival calendar.

Festive calendar impacts same-store growth

V2 Retail said the base quarter included Navratri and Durga Puja, while the festivals fall in the October-December quarter this year. The company said the timing difference created seasonal distortions in its performance comparison.

On a calendar basis, same-store sales growth was 14.9% year-on-year.

Monthly sales per square foot stood at ₹700 at the end of the September quarter, excluding the Navratri and Durga Puja period.

V2 Retail said 106 of its 427 stores were opened during the first half of the current financial year, with newer outlets still going through their natural ramp-up cycle.

V2 Retail expands store network

The retailer opened 49 stores and shut three during the quarter as it continued expanding in high-potential tier-2 and tier-3 consumption markets.

The expansion increased V2 Retail's footprint to 46.28 lakh square feet across 427 stores.

The company also soft-launched its V2Kart e-commerce business in September in Delhi-NCR and Lucknow, with orders being fulfilled directly from its stores.

V2 Retail shares were trading 18% lower at ₹165.01 on Monday. The decline pushed the stock to a 52-week low and extended its year-to-date losses to 33%.

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