Shoppers Stop returns to profit in December quarter despite labour hit

MUMBAI: Retail, it turns out, still knows how to dress up for the occasion. Shoppers Stop reported a return to profit in the December 2025 quarter, navigating festive demand, inventory resets and a one-time labour code impact in what proved to be a mixed but resilient performance.

For the quarter ended December 31, 2025, standalone revenue from operations stood at Rs 1,320.85 crore, taking total income to Rs 1,344.74 crore. After expenses of Rs 1,312.33 crore, the retailer posted a profit before tax of Rs 14.92 crore, supported by seasonal demand and tighter cost control. Net profit for the quarter came in at Rs 12.61 crore, compared to a loss in the preceding quarter.

However, the numbers were not without their wrinkles. An exceptional charge of Rs 17.49 crore was booked following the implementation of the New Labour Codes in November 2025, resulting in a one-time increase in employee benefit provisions. Despite this, Shoppers Stop managed to stay in the black for the quarter.

On a nine-month basis, standalone revenue rose to Rs 3,590.35 crore, though the company reported a loss of Rs 27.96 crore after accounting for the exceptional labour-related impact. Earnings per share for the December quarter stood at Rs 1.14 on both a basic and diluted basis.

At the consolidated level, the story was similar. December quarter revenue reached Rs 1,415.82 crore, with profit after tax at Rs 16.12 crore. For the nine months ended December 31, 2025, consolidated revenue totalled Rs 3,833.53 crore, while losses narrowed compared to the previous year.

Management flagged festive demand, inventory discipline and operational efficiency as key drivers, even as margins were weighed down by promotions and regulatory changes. The retailer also reiterated that it continues to contest the retrospective levy on service tax related to renting of immovable property, amounting to Rs 20.11 crore at the consolidated level, which remains unpaid pending a Supreme Court decision.

Taken together, the December quarter suggests that while Shoppers Stop is still adjusting to structural and regulatory shifts, it has managed to stitch together a profitable festive season proof that in retail, timing and tailoring still matter.