Shoppers Stop Q2 FY27 results: net profit ₹3.11 crore vs ₹20.11 crore loss, revenue up 8.7%

How did Shoppers Stop perform in Q2 FY27?

Shoppers Stop reported consolidated revenue of ₹1,366 crore in Q2 FY27, up 8.7% from ₹1,257 crore in Q2 FY26 and 5.8% from ₹1,291 crore in Q1 FY27. EBITDA was ₹196.28 crore, up 15.2% year on year and 4.8% sequentially, while the margin was 14.4% against 13.6% and 14.5%, respectively. The company reported a net profit of ₹3.11 crore in Q2 FY27, compared with a net loss of ₹20.11 crore in the year-ago quarter and ₹14.25 crore in Q1 FY27. Basic EPS was ₹0.28.

Profit before tax was ₹4.13 crore in Q2 FY27, against a loss of ₹26.86 crore in Q2 FY26 and ₹19.03 crore in Q1 FY27. Net profit attributable to owners was ₹3.27 crore, compared with a net loss of ₹20.10 crore a year earlier and ₹14.25 crore in the previous quarter. On the standalone basis, revenue was ₹1,226.92 crore, up 4.4%, while the company reported a net loss of ₹2.33 crore.

What changed in Shoppers Stop's costs and profit?

Total expenses were ₹1,385.02 crore in Q2 FY27, up 7.1% from ₹1,292.98 crore in Q2 FY26. Employee cost rose by ₹3.57 crore to ₹118.26 crore, finance costs increased by ₹2.09 crore to ₹74.65 crore, depreciation was ₹140.38 crore, up ₹6.19 crore, and other expenses increased by ₹14.95 crore to ₹218.58 crore. There was no exceptional item in either quarter. Other income rose by ₹13.38 crore to ₹22.88 crore, while tax moved from a credit of ₹6.75 crore to a charge of ₹1.02 crore. The filing did not state reasons for the changes in the cost lines.

The year-on-year movement in profit coincided with revenue growth of 8.7%, EBITDA growth of 15.2% and the increase in other income. The company’s press release stated that New Ventures losses reduced by ₹8 crore, driven by higher INTUNE productivity and integration of SSBeauty.in with SS.com. The auditors also highlighted non-provision of a retrospective service-tax levy of ₹16.60 crore for the standalone results, pending final disposal of the appeal before the Supreme Court.

How did the first half of FY27 go?

In H1 FY27, consolidated revenue was ₹2,657.68 crore, up 9.9% from ₹2,417.71 crore in H1 FY26. Total income increased 10.2% to ₹2,685.98 crore, while profit before tax improved to a loss of ₹14.90 crore from a loss of ₹47.76 crore. The net loss narrowed to ₹11.14 crore from ₹35.84 crore, and basic EPS was a loss of ₹1.01 compared with a loss of ₹3.26.

The company’s H1 presentation reported 15 store openings and capital investment of ₹83 crore. Management said festive like-for-like growth was mid-teens across the five-week Pujo window and four-week Dussehra, although it noted that the shift of the festive calendar from Q2 in the previous year to Q3 this year affected comparability.

What do the balance sheet and cash flow show?

As of 30 September 2026, total assets were ₹6,552.05 crore, compared with ₹6,290.66 crore at 31 March 2026. Total equity was ₹282.14 crore against ₹291.01 crore, borrowings were ₹289.85 crore against ₹235.77 crore, and cash was ₹8.80 crore against ₹12.68 crore. Inventories rose to ₹2,275.50 crore from ₹2,099.81 crore, trade receivables to ₹118.18 crore from ₹86.53 crore, and trade payables to ₹2,627.70 crore from ₹2,456.15 crore.

H1 FY27 operating cash flow was ₹327.07 crore, compared with ₹368.01 crore in H1 FY26. Investing cash flow was an outflow of ₹77.21 crore against ₹76.73 crore, and financing cash flow was an outflow of ₹205.83 crore against ₹252.38 crore. Capital expenditure was ₹78.23 crore, compared with ₹77.87 crore in the previous first half.

How has Shoppers Stop done over the last 8 quarters?

Revenue rose year on year in each of the last eight quarters. Over the reported period, quarterly revenue was lowest at ₹1,064.00 crore in Q4 FY25 and highest at ₹1,415.82 crore in Q3 FY26; Q2 FY27 revenue of ₹1,366.27 crore was below that peak. Profit moved from a net profit of ₹52.23 crore in Q3 FY25 to a net loss of ₹16.35 crore in Q4 FY26, then remained negative through Q1 FY27 before turning positive at ₹3.11 crore in Q2 FY27.

The EBITDA margin reached 17.8% in Q3 FY25 and fell to 13.6% in Q2 FY26. It subsequently rose to 15.4% in Q3 FY26 and was 14.4% in Q2 FY27. The latest quarter therefore showed positive net profit, but the margin remained below the Q3 FY25 peak.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026 on 16 October 2026. The same-day filing also recorded the allotment of 3,773 equity shares of ₹5 each on exercise of vested employee stock options, increasing share capital to ₹55,10,47,175 divided into 11,02,09,435 shares. The company stated that the allotment was not material in nature. No dividend or fund-raising announcement is included in the provided same-day filings.

On the same day, the Nomination Remuneration and Corporate Governance Committee approved grants of 14,815 employee stock options and 7,407 restricted stock units to eligible employees under the Shoppers Stop Limited Employees Stock Option Plan 2022. The exercise price of each ESOP was ₹369, while the exercise price of each RSU was ₹5. The board also reported opening 7 stores in Q2 and 15 in H1, with capital investment of ₹39 crore and ₹83 crore, respectively.

What did the auditors point out?

SR BC & CO LLP conducted a review under Standard on Review Engagements 2410 and stated that nothing had come to its attention that caused it to believe the statements had not disclosed the information required by the Listing Regulations or contained any material misstatement. The review was described as substantially less in scope than an audit, and the auditors did not express an audit opinion.

The auditors included an emphasis of matter concerning non-provision of a retrospective service-tax levy for 1 June 2007 to 31 March 2010 on renting immovable properties for commercial use. They stated that the amount was ₹16.60 crore for the standalone results and ₹20.11 crore for the consolidated results, pending final disposal of the appeal before the Supreme Court. Their conclusion was not modified in respect of this matter.

What did Shoppers Stop's management say?

Management maintained mid-single to slightly higher like-for-like revenue growth for FY27 and raised its gross departmental-store opening target to 12 for FY27 from 9-10, with 10-12 openings per year for the next 2-3 years. The company expects to become debt-free by Q3 FY27, funded through internal accruals and EBITDA momentum, and targets Personal Shopper revenue at 30% of departmental-store revenue by the end of FY27, currently 27%.

Kavindra Mishra, MD and CEO, said the results were operational: “Whatever results that we have seen are purely operational.” He maintained revenue-growth guidance of mid-single to slightly higher like-for-like growth for FY27 and said the company would provide more clarity on the next call. The earnings call did not include a reported analyst question or answer beyond the guidance and discussion provided.

How did Shoppers Stop shares react?

Shoppers Stop shares fell 4.3% on the reaction day from the pre-results close, with the stock down 4.6% after 30 minutes. By the next day's close, it was down 8.3% from the pre-results close, and by the fifth session it was down 9.4%. The Diversified Retail sector's median move was 0.6% on the reaction day, -1.9% by the next close and -7.6% by the fifth session, leaving Shoppers Stop 4.9 percentage points, 6.4 percentage points and 1.7 percentage points below the sector median, respectively.

Earlier results-day moves were mixed: the shares were unchanged on 22 July 2026, rose 18.3% on 5 May 2026, fell 6.1% on 20 January 2026, fell 0.8% on 17 October 2025, fell 3.9% on 17 July 2025 and fell 1.1% on 14 January 2025. These figures describe the earlier trading sessions and do not indicate how the shares may move later.

How did other Diversified Retail companies do?

Five other Diversified Retail companies that filed for the quarter were compared. Their median revenue growth was 17.8%, above Shoppers Stop’s consolidated revenue growth of 8.7%. Four peers grew faster than Shoppers Stop and one grew more slowly. Of the four peers for which profit was compared, two reported higher profit, while Shoppers Stop reported a net profit of ₹3.11 crore in Q2 FY27.