Mumbai, Sept. 2 -- The agency has also upgraded VRL's short-term rating to 'IND A1' from 'IND A2+'.

India Ratings and Research stated that the upgrade reflects VRL's healthy scale growth of over 60% YoY, driven by a sustained expansion of its store network, strong same-store sales growth, and efficient inventory management, which collectively supported a steady improvement in the EBITDA to over 4,544 million in FY26.

The upgrade also factors in VRL's established position in India's value retail segment, with its growing geographical diversification, particularly in tier-2 and smaller cities, providing a competitive advantage and supporting revenue growth and earnings visibility.

Furthermore, the company's asset-light expansion strategy...