Shoppers Stop reports turnaround in profitability for first quarter

Indian department store operator Shoppers Stop Limited (Shoppers Stop) has announced its financial results for the first quarter ended June 30, 2026, delivering a return to profitability supported by double-digit revenue growth.

On a non-GAAP consolidated basis, the Mumbai-based retailer achieved a 10 percent increase in revenue year-over-year, reaching 15.36 billion Indian rupees. EBITDA rose 40 percent YoY to 430 million Indian rupees. Profit after tax turned positive at 50 million Indian rupees, reversing a loss of 40 million Indian rupees recorded in the prior year period.

On a GAAP consolidated basis, net revenue expanded 11 percent YoY to 12.91 billion Indian rupees, while GAAP EBITDA gained 6 percent to reach 1.93 billion Indian rupees. Consolidated GAAP net loss narrowed to 140 million Indian rupees compared to a loss of 160 million Indian rupees in the previous financial year.

Premiumisation strategy and beauty segment drive momentum

The flagship department store division generated 12.42 billion Indian rupees during the quarter, clocking a like-for-like growth of 6 percent. Customer footfalls registered LFL entry growth of three percent, marking the fifth consecutive quarter of expansion. Average transaction value increased 10 percent YoY, benefiting from a 15 percent increase in sales across the premium portfolio, which now accounts for 72 percent of total sales.

The beauty category recorded total revenue of 3.27 billion Indian rupees, representing a 15 percent YoY increase. Growth within the category was led by fragrance sales, which surged 34 percent YoY. The company's beauty distribution arm, Global SS Beauty Brands, delivered its highest quarterly sales on record at 1.29 billion Indian rupees, up 53 percent YoY.

The company's value fashion banner, Intune, recorded revenue of 820 million Indian rupees, marking a 21 percent increase YoY and a LFL growth of 10 percent.

Shoppers Stop managing director and chief executive officer, Kavindra Mishra, said: “We are pleased to report a strong start to FY27 with our Non GAAP Consolidated revenue up 10% YoY to Rs 1,536 Cr; EBITDA up 40% YoY and PAT turning positive at Rs 5 Cr as compared to a loss of Rs 4 Cr in Q1FY26.” Mishra added: “Demand has sustained through Q1, and better supply chain visibility gives us confidence ahead of the festive season. We remain committed to inventory discipline, operational rigor, prudent capital deployment and becoming debt-free by FY27.”

Loyal customer base expands alongside retail footprint

Shoppers Stop's First Citizen loyalty programme expanded its active member base to 13.80 million individuals, contributing 85 percent of total sales during the quarter. The Premium Black Card tier recorded 39,000 additions, up 26 percent YoY, and accounted for 23 percent of total retail sales.

During the period, the business deployed 440 million Indian rupees in capital expenditure to open eight new stores, including two department stores, four beauty locations, and two Intune outlets. Outright inventory levels were reduced by 800 million Indian rupees YoY. Net debt declined by 930 million Indian rupees alongside a 500 million Indian rupee capital infusion into GSSBB.

Shoppers Stop operates 115 department stores, 12 home concept stores, 72 specialty beauty stores, 85 Intune doors, and four airport stores across India. The group maintains an omnichannel presence serving over 800 brands.