Shoppers Stop reported a net loss of ₹14.3 crore for the first quarter, improving from a ₹15.7 crore loss in the same period last year. Revenue rose 11.2% to ₹1,291.4 crore, driven by growth in beauty and value fashion segments. Despite these gains, the stock fell 2.35% as investors noted slight pressure on profit margins.
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Shoppers Stop Ltd. reported a financial performance for the first quarter that showed growth in key business segments alongside a narrowing net loss. The company posted a net loss of ₹14.3 crore, an improvement compared to the ₹15.7 crore loss recorded in the same period of the previous fiscal year. Revenue from operations grew 11.2% to reach ₹1,291.4 crore.
A major contributor to this performance was the beauty business, which generated ₹327 crore in sales, representing a 15% increase. Within this segment, the fragrance category recorded a notable 34% growth. Furthermore, the company’s value fashion format, INTUNE, reported sales of ₹82 crore, reflecting a 21% year-on-year rise and 10% like-for-like growth. The beauty distribution arm, GSSBB, also reached a milestone with quarterly sales of ₹129 crore, a 53% jump from the prior year.
While top-line growth remained healthy, profitability metrics showed a mixed picture. The company's earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased by 9.2% to ₹187.4 crore. However, the EBITDA margin saw a slight contraction to 14.5%, down from 14.8% in the previous year. This margin pressure is an area investors often monitor, as it indicates the company's ability to convert sales into operating profit amid competitive retail conditions.
On a consolidated basis, the company reported a non-GAAP profit after tax of ₹5 crore, reversing the ₹4 crore loss seen in the same quarter last year. The company is actively focusing on balance sheet strength, with management stating an objective to become debt-free by FY27. Efforts to improve operational efficiency included an inventory reduction of ₹80 crore compared to the previous year.
Despite the improved headline numbers, shares of Shoppers Stop closed at ₹376.25 on the BSE, marking a decline of 2.35% for the day. Market participants may have weighed the slight margin compression against the revenue growth. The company’s focus remains on leveraging its First Citizen loyalty program, which now has 1.38 crore members and contributes 85% of total sales. Moving forward, the company's performance will likely depend on maintaining demand momentum and the effectiveness of its expansion strategy for the INTUNE value fashion format as it prepares for the upcoming festive season.