MAM
Shoppers Stop faces tough quarter amid market challenges, posts losses
Mumbai: Not long ago, weekends meant families, friends, and couples flocking to bustling malls, indulging in the joy of strolling through their favourite stores. But with the rise of online shopping, those scenes of leisurely retail therapy are fading into nostalgia, leaving traditional brands like Shoppers Stop to confront a new reality. The retailer’s latest quarterly results reveal a troubling stretch, as escalating costs and market pressures overshadow modest gains. Following its board meeting on 22 October 2024, Shoppers Stop reported a net loss for Q2 FY25, signalling deeper struggles in a rapidly evolving retail landscape.
The company reported revenue from operations at Rs 1,114.87 crores for the quarter, marking a 4.2 per cent increase from Rs 1,069.31 crores in Q1 FY25 and a 4.5 per cent increase from Rs 1,068.10 crores in the corresponding period last year. However, the rise in sales was overshadowed by surging expenses, with total costs climbing to Rs 1,151.31 crores, driven largely by higher finance and depreciation expenses.
Commenting on the results, Shoppers Stop’s managing director Kavindra Mishra remarked, “While the growth in revenue is a positive sign, we are navigating a challenging macroeconomic environment that is putting pressure on our bottom line. Our focus remains on optimising costs while continuing to enhance the customer experience.”
Shoppers Stop faced a significant decline in profitability, with a reported net loss of Rs 28.74 crores for Q2 FY25, up from a loss of Rs 22.70 crores in the previous quarter and a sharp contrast to the modest profit of Rs 1.78 crores in Q2 FY24. The key factor contributing to this downturn was an exceptional item of Rs 2.05 crores related to stock damage due to smoke from a nearby fire incident. Additionally, the company’s efforts to expand and modernise stores have led to increased lease liabilities and depreciation costs, which impacted margins.
The loss reflects a broader struggle within the retail sector, as companies face subdued consumer sentiment and costly operations. Shoppers Stop’s finance costs alone surged to Rs 64.51 crores this quarter, up from Rs 61.01 crores in the previous quarter, while depreciation and amortisation rose to Rs 121.76 crores.
Amidst the current challenges, Shoppers Stop is making strategic moves to navigate the difficult terrain. The retailer appointed Nishit Sheth as the interim company secretary and chief compliance officer to strengthen compliance and governance practices. This move, alongside ongoing investments in e-commerce and store refurbishments, is part of a broader strategy to rejuvenate the brand’s appeal.
The board’s approval of new stock options under the ESOP Scheme 2022 reflects a commitment to rewarding talent and fostering employee engagement during tough times. While these initiatives aim to position the company for future growth, the immediate outlook remains constrained by high operating costs and ongoing market uncertainties.
The company’s balance sheet reveals a notable increase in liabilities. Total non-current liabilities climbed to Rs 2,466.48 crores from Rs 2,316.75 crores at the end of FY24, primarily due to additional borrowing and higher lease obligations. Additionally, total equity saw a reduction from Rs 301.42 crores to Rs 262.68 crores, further indicating financial pressures. Shoppers Stop’s cash flow statement also showed a decrease in cash reserves to Rs 13.89 crores from Rs 11.38 crores at the end of the previous quarter, underscoring liquidity constraints.
As Shoppers Stop faces an uphill battle, industry analysts suggest that the retail sector’s recovery will be gradual. The company’s focus on improving operational efficiency and enhancing its digital footprint may drive incremental gains. However, substantial growth may be elusive in the near term unless broader economic conditions improve and consumer demand strengthens.
Summing up the challenges, CFO Karunakaran Mohanasundaram said, “The current macroeconomic scenario is indeed tough, but we are confident that our strategic interventions will gradually improve our financial position.” Despite these reassurances, the road ahead appears bumpy for Shoppers Stop as it navigates this period of financial strain.
MAM
India’s financial sector spent less on TV ads in 2025 but flooded the internet
Banks, insurers and lenders cut tv ads as digital jumps, LIC and Muthoot lead tv and Axis Bank tops online
MUMBAI: India’s banking, financial services and insurance sector, one of the most prolific advertisers in the country, delivered a split verdict on media in 2025. It spent less on television, held its nerve in print, turned up the volume on radio and deluged the internet with a ferocity that left every other medium looking pedestrian. The picture that emerges from TAM AdEx’s cross-media report for the BFSI sector is of an industry in transition, still wedded to the news bulletin but increasingly seduced by the algorithm.
Television: a retreat with caveats
TV ad volumes for the BFSI sector fell 16 per cent in 2025 compared with 2024, a sharp reversal after two years of consistent growth that had pushed volumes 16 per cent above 2021 levels by 2023 and a further 7 per cent higher by 2024. Within 2025 itself, the drop was concentrated in the middle of the year: the second and third quarters saw ad volumes slide 35 per cent each against the first quarter, with a partial recovery of 13 per cent in the fourth.
The retreat did not reshuffle the deck. Life insurance retained first place among TV categories with 19 per cent of ad volumes, mortgage loans held second with 16 per cent, and the top ten categories together accounted for 82 per cent of all BFSI television advertising. The dominance of news channels was equally pronounced: news claimed 68 per cent of ad volumes, general entertainment channels a distant 14 per cent and movies 12 per cent. Together, news and GEC captured 82 per cent of the sector’s television spend. News bulletins alone took 48 per cent of programme-genre volumes, with feature films second at 12 per cent. Prime time, between 6pm and 11pm, drew 34 per cent of ad volumes, followed by afternoon at 22 per cent and morning at 20 per cent. A full 82 per cent of all ads ran between 20 and 40 seconds.
Life Insurance Corporation of India was the sector’s biggest TV spender with 11 per cent of ad volumes. Muthoot Financial Enterprises came second with 9 per cent, followed by National Payments Corporation of India at 6 per cent, Tata AIG General Insurance at 5 per cent and State Bank of India at 5 per cent. The top ten advertisers together accounted for 51 per cent of total TV volumes. Three names were new to the top ten in 2025: Tata AIG General Insurance, IIFL Finance and Tata Capital. At brand level, Muthoot Finance Loan Against Gold led with 9 per cent share, Tata AIG Health Insurance entered the top ten for the first time, and the top ten brands together contributed 35 per cent of ad volumes.
Print: the long climb continues
Print told a different story. Ad space for the BFSI sector has grown every year since 2021, rising 16 per cent in 2022, 30 per cent in 2023, 51 per cent in 2024 and 64 per cent in 2025, all measured against a 2021 baseline. Within 2025, ad space was flat in the second quarter but surged 46 per cent in the third and 33 per cent in the fourth compared with the first. Life insurance led print categories with 21 per cent of ad space, followed by mutual funds and banking services and products at 13 per cent each, and corporate financial institutes at 11 per cent. The top ten categories together took 82 per cent of print ad space. LIC led print advertisers with 6 per cent share, and the top ten together covered just 19 per cent of ad space, a reflection of how fragmented print spending remains. Three new entrants joined the top ten in 2025, with Billion Brains Garage Ventures the only exclusive presence not seen in 2024’s list. In the top ten brands, LIC dominated with a 2 per cent share, while Nippon India Mutual Fund rose to third position from fourth in 2024. English accounted for 62 per cent of print ad space, Hindi for 20 per cent. Business and finance publications took 59 per cent of the genre split. The south zone led regional spending with 33 per cent of print ad space, Bangalore topping that zone, while New Delhi and Mumbai were the leading cities nationally.
Radio: louder than ever
Radio ad volumes for the BFSI sector have climbed steadily, rising 12 per cent above 2021 levels in 2023, 36 per cent in 2024 and 45 per cent in 2025. The quarterly pattern within 2025 was volatile: a sharp drop of 43 per cent in the second quarter and 42 per cent in the third, followed by a near-full recovery in the fourth. Life insurance led radio categories with 22 per cent of volumes, banking services and products second at 14 per cent and corporate NBFCs third at 11 per cent. LIC of India held its position as the leading radio advertiser with 20 per cent of ad volumes; the top ten radio advertisers together covered 69 per cent. Muthoot Financial Enterprises led radio brands with 10 per cent share, five of the top ten brands belonged to LIC alone, and SBI Mutual Fund made a remarkable leap to fifth position from 272nd in 2024. Evening and morning time-bands together captured 84 per cent of radio ad volumes, with evenings at 44 per cent and mornings at 40 per cent. Maharashtra was the leading state for radio BFSI advertising with 18 per cent share; Maharashtra, Gujarat and Uttar Pradesh together accounted for 43 per cent.
Digital: the five-times surge
If one number defines the 2025 BFSI advertising story, it is five. Digital ad impressions for the sector multiplied fivefold between 2021 and 2025, having already doubled in 2023 and doubled again in 2024 before the 2025 leap. Within the year, impressions dipped 19 per cent in the second quarter and 12 per cent in the third before recovering 8 per cent above the first quarter by the fourth. Banking services and products led digital categories with 27 per cent of impressions, life insurance and credit cards tied at 19 per cent each, and securities and sharebroking organisations fell from first place in 2024 to fourth in 2025. Axis Bank was the runaway leader among digital advertisers with 12 per cent of impressions, followed by ICICI Bank at 9 per cent, IDFC First Bank at 7 per cent and Kotak Mahindra Bank at 6 per cent. The top ten digital advertisers covered 59 per cent of impressions, and seven of them were new entrants compared with 2024, signalling rapid churn in the digital spending hierarchy. At brand level, Axis Bank led with 9 per cent, ICICI HPCL Super Saver Credit Card vaulted to third place from 921st in 2024, and six of the top ten digital brands were new to the list. Programmatic buying accounted for 91 per cent of all digital BFSI transactions; combined with ad networks, it captured 96 per cent.
The data from TAM AdEx paints the portrait of a sector that still believes in the power of the television news bulletin to sell insurance to the masses, but increasingly knows that the next generation of borrowers, investors and cardholders is scrolling, not watching. The race is now on to reach them before the algorithm serves up someone else’s loan offer first.
