Brands
Shoppers Stop Q1 revenue rises as losses narrow on stronger sales
Retailer posts higher income with consolidated revenue crossing Rs 1,290 crore
MUMBAI: The tills are ringing louder, but the bottom line is still waiting for its shopping spree. Shoppers Stop reported higher revenue in the first quarter of FY27, with stronger sales helping narrow its losses even as rising operating costs continued to weigh on profitability.
On a consolidated basis, the retailer’s revenue from operations rose 11.2 per cent year-on-year to Rs 1,291.41 crore for the quarter ended 30 June 2026, compared with Rs 1,161.08 crore in the corresponding period last year.
Total income increased to Rs 1,296.83 crore, up from Rs 1,171.15 crore a year earlier, reflecting steady momentum across its retail business.
Despite the stronger topline, the company remained in the red. Consolidated net loss narrowed to Rs 14.25 crore from Rs 15.74 crore in Q1 FY26, while loss before tax improved to Rs 19.03 crore from Rs 20.91 crore.
The improvement came even as total expenses climbed to Rs 1,315.86 crore, compared with Rs 1,192.06 crore in the year-ago quarter.
The retailer spent Rs 764.87 crore on purchases of stock-in-trade during the quarter, while employee benefit expenses increased to Rs 117.60 crore. Finance costs stood at Rs 73.77 crore, depreciation and amortisation expenses were Rs 138.03 crore, and other expenses rose to Rs 203.64 crore.
On a standalone basis, revenue from operations grew 8.3 per cent to Rs 1,185.38 crore from Rs 1,094.19 crore in the corresponding quarter last year. The company reported a standalone net loss of Rs 16.71 crore, compared with a loss of Rs 17.89 crore a year earlier.
During the quarter, Shoppers Stop also strengthened its employee incentive programme by granting 1,49,772 employee stock options (ESOPs) and 74,886 Restricted Stock Units (RSUs) under its ESOP Scheme 2022. Additionally, 7,417 stock options were exercised during the period.
The company noted that it continues to contest the retrospective levy of service tax on commercial property rentals before the Supreme Court and has therefore not provided for a disputed amount of Rs 20.11 crore in its consolidated accounts (Rs 16.60 crore on a standalone basis) relating to the period between 1 June 2007 and 31 March 2010, which has been paid under protest.
The quarter suggests that while Shoppers Stop is benefiting from healthier consumer spending and improving store sales, profitability remains under pressure from higher operating costs. As the retailer heads into the festive season, sustaining revenue growth while tightening costs is likely to remain central to its turnaround strategy.
