Shoppers Stop narrows Q2 loss to Rs 2.33 crore on higher revenue

MUMBAI: Shoppers Stop is trying to turn the corner, with its latest results showing a smaller loss at the standalone level and a return to quarterly profit on a consolidated basis. The department store retailer reported consolidated revenue from operations of Rs 1,366.27 crore for the quarter ended 30 September 2026, up 8.7 per cent from Rs 1,256.62 crore a year earlier.

The company posted consolidated net profit of Rs 3.11 crore for the July-September quarter, against a net loss of Rs 20.11 crore in the corresponding period last year. The improvement came despite higher expenses, with the retailer’s consolidated total expenses rising to Rs 1,385.02 crore from Rs 1,292.98 crore.

The standalone business, however, remained in the red. Shoppers Stop reported a net loss of Rs 2.33 crore for the quarter, narrowing from Rs 22.68 crore a year earlier. Standalone revenue from operations increased to Rs 1,226.92 crore from Rs 1,175.31 crore, while total income rose to Rs 1,249.56 crore from Rs 1,184.76 crore.

The results, approved by the board on 16 October, show a business making progress on revenue and profitability, but still working through the cost pressures associated with running a large retail operation.

The consolidated performance also improved sequentially. Revenue from operations increased from Rs 1,291.41 crore in the June 2026 quarter to Rs 1,366.27 crore in September. The group moved from a net loss of Rs 14.25 crore in the first quarter to a net profit of Rs 3.11 crore in the second quarter.

Standalone revenue also rose from Rs 1,185.38 crore in June to Rs 1,226.92 crore in September. Its net loss narrowed from Rs 16.71 crore to Rs 2.33 crore over the same period, suggesting a stronger second quarter even though the standalone business has yet to return to profit.

For the six months ended 30 September 2026, consolidated revenue from operations climbed to Rs 2,657.68 crore from Rs 2,417.71 crore in the corresponding period last year, an increase of around 9.9 per cent. The group’s net loss narrowed to Rs 11.14 crore from Rs 35.84 crore.

At the standalone level, revenue for the first half rose to Rs 2,412.30 crore from Rs 2,269.50 crore. The net loss reduced to Rs 19.04 crore from Rs 40.57 crore, while the loss before tax narrowed to Rs 25.38 crore from Rs 54.04 crore.

The improvement in the bottom line came even as several expense categories increased. Consolidated purchases of stock-in-trade reached Rs 1,026.79 crore in the September quarter, compared with Rs 892.95 crore a year earlier. Employee benefit expenses rose to Rs 118.26 crore from Rs 114.69 crore, while finance costs increased to Rs 74.65 crore from Rs 72.56 crore.

Depreciation and amortisation expenses climbed to Rs 140.38 crore from Rs 134.19 crore, and other expenses increased to Rs 218.58 crore from Rs 203.63 crore. Consolidated total expenses consequently rose to Rs 1,385.02 crore from Rs 1,292.98 crore.

For the first half, consolidated purchases of stock-in-trade stood at Rs 1,791.66 crore, against Rs 1,513.53 crore a year earlier. Employee benefit expenses increased to Rs 235.86 crore from Rs 223.37 crore, finance costs rose to Rs 148.42 crore from Rs 145.71 crore, and other expenses climbed to Rs 422.22 crore from Rs 394.44 crore.

The group recorded a consolidated loss before exceptional items and tax of Rs 14.90 crore for the half-year, compared with a loss of Rs 47.76 crore in the year-ago period. The previous year’s figures also included an exceptional item, meaning the comparison of reported losses needs to account for the different treatment of exceptional expenses.

For the full financial year ended 31 March 2026, Shoppers Stop had reported consolidated revenue from operations of Rs 5,043.32 crore and a net loss of Rs 36.09 crore. Its standalone revenue stood at Rs 4,707.67 crore, while the standalone net loss was Rs 46.24 crore.

The retailer’s balance sheet showed consolidated total assets of Rs 6,552.05 crore as of 30 September 2026, compared with Rs 6,290.66 crore at the end of March. Inventories rose to Rs 2,275.50 crore from Rs 2,099.81 crore, while trade receivables increased to Rs 118.18 crore from Rs 86.53 crore. Consolidated cash and cash equivalents stood at Rs 8.80 crore, down from Rs 12.68 crore.

Lease liabilities remained a significant component of the group’s obligations. Consolidated non-current lease liabilities stood at Rs 2,822.40 crore, while current lease liabilities were Rs 344.38 crore at the end of September. Current borrowings increased to Rs 281.02 crore from Rs 187.94 crore at the end of March, while non-current borrowings declined to Rs 8.83 crore from Rs 47.83 crore.

Cash flow offered another perspective on the retailer’s financial position. Net cash from operating activities stood at Rs 327.07 crore for the first half, compared with Rs 368.02 crore a year earlier. Net cash used in investing activities was Rs 77.21 crore, while financing activities used Rs 205.83 crore. The group reported a net increase of Rs 44.03 crore in cash and cash equivalents during the period.

The results also carry a tax-related caveat. Shoppers Stop has not provided for a retrospective service tax levy on the renting of commercial properties for the period from 1 June 2007 to 31 March 2010, while an appeal remains pending before the Supreme Court. The amount stands at Rs 16.60 crore in the standalone results and Rs 20.11 crore in the consolidated results. The statutory auditor highlighted the matter in its review report but did not modify its conclusion.

The consolidated results include Shoppers Stop Limited and its subsidiaries Gateway Multichannel Retail (India) Limited, Shoppers Stop Brands (India) Limited, Shoppers Stop.com (India) Limited and Global SS Beauty Brands Limited. The company operates primarily in retail trade through its stores and departmental store facilities in India.

The figures suggest that Shoppers Stop has made headway in reducing its losses, with consolidated operations returning to quarterly profit and first-half losses narrowing. Yet higher inventory purchases, rising operating costs and substantial lease liabilities remain important factors to watch as the retailer works towards more sustained profitability.