Shoppers Stop (SHOPERSTOP) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 saw flat to slightly higher consolidated sales, with core business sales at ₹1,516 Cr and consolidated sales up 4% YoY to ₹1,721 Cr, despite muted consumer sentiment and environmental disruptions.

• Premiumization efforts continued, with premium category contribution rising to 69% and beauty sales up 14% YoY.

• Store network expanded to 301 stores across 71 cities, including new and relaunched flagship locations.

• Customer entries grew 5%, new customer acquisition was 40%, and loyalty program membership exceeded 13.3 million.

• Un-audited financial results for Q3 and 9M FY26 were approved and reviewed by statutory auditors with unmodified reports.

Financial highlights

• Consolidated EBITDA for Q3 declined 34% YoY to ₹77 Cr, with margin compression of 90 bps to 36.7%.

• Standalone revenue from operations for Q3 FY26 was ₹1,320.85 crore, and consolidated revenue was ₹1,415.82 crore.

• Standalone net profit for Q3 FY26 was ₹12.61 crore, and consolidated net profit was ₹16.12 crore, both rebounding from prior quarter losses but down YoY.

• Exceptional item of ₹17.49 crore (standalone) and ₹17.69 crore (consolidated) recognized due to new labour code provisions.

• Net debt remained stable at ₹90 Cr, with inventory reduced and working capital tightly managed.

Outlook and guidance

• Management expects a turnaround over the next two quarters, with FY27 revenue growth projected at 12-15% and improved EBITDA margins.

• Intune losses expected to reduce to INR 20-25 crores in FY27, with EBITDA breakeven anticipated in Q1 FY27.

• Q4 and FY26 sales growth expected in single digits, with low single-digit EBITDA margins.

• The impact of new labour codes will be further evaluated as rules are notified.