Shoppers Stop (SHOPERSTOP) Q2 25/26 earnings summary

Executive summary

• Q2 and H1 FY2026 saw strong performance and sales growth despite a challenging macro environment, driven by premiumization, customer engagement, and new ventures, with beauty distribution delivering exceptional year-on-year growth.

• Premium categories, private brands, and loyalty programs contributed significantly to sales and customer retention, including record First Citizen Club enrollments.

• New businesses (Intune and SSBeauty.in) are in the investment phase, incurring planned losses but showing early signs of traction.

• Un-audited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, were approved by the Board on October 17, 2025.

Financial highlights

• Q2 FY26 consolidated sales reached Rs 1,526 Cr, up 13% YoY; departmental store like-for-like sales grew 9.4%, the highest in a decade.

• Beauty segment up 22%, with fragrances leading; watches and handbags grew 13% and 11% respectively.

• Premium product mix grew 16%, now 69% of total mix; profit before tax improved from a loss of INR 12 crore to a profit of INR 9 crore.

• Consolidated net loss for Q2 FY26 was ₹20.11 crore, compared to ₹20.59 crore in Q2 FY25; EBITDA rose 10% to Rs 28 Cr in Q2.

• Consolidated H1 FY26 sales reached Rs 2,946 Cr, up 11% YoY; PAT loss reduced to Rs 11 Cr from Rs 27 Cr.

Outlook and guidance

• Double-digit growth expected to continue in Q3, driven by festive and wedding season demand, especially in premium and beauty categories.

• Guidance for mid-single-digit or better EBITDA margin for the full year remains intact; cautious optimism for continued growth supported by policy tailwinds and rural revival.

• Intune and SSBeauty.in expected to reduce losses in H2; store-level break-even for Intune targeted for FY2027.