Shoppers Stop Ltd. reported improved operating performance for the quarter ended June 2026 (Q1FY27), with revenue from operations rising 11.22% year-on-year to ₹1,291.41 crore, up from ₹1,161.08 crore in Q1FY26. According to reports from Business Standard, the company achieved a consolidated net loss of ₹14.25 crore for the June quarter, compared with a net loss of ₹15.74 crore in the corresponding period last year, reflecting a modest improvement in profitability. On a consolidated basis, revenue stood at ₹1,536 crore, up 10% year-on-year, while EBITDA increased 40% to ₹43 crore and profit after tax (PAT), excluding non-GAAP items, stood at ₹5 crore compared with a loss of ₹4 crore in the previous year. The company demonstrated strong financial discipline by reducing debt by ₹93 crore during the quarter and also received a ₹50 crore capital infusion in GSSBB on a year-on-year basis. Following the results announcement, Shoppers Stop shares gained 2.02% to ₹384, reflecting positive market sentiment towards the improved performance.
At the operating level, earnings before interest, tax, depreciation and amortisation (EBITDA) rose 6% YoY to ₹193 crore in Q1 FY27, compared with ₹182 crore in the year-ago period, as reported by Business Standard. However, the EBITDA margin edged lower to 14.5% from 14.8%, indicating some pressure on profitability despite higher sales. The department store business reported sales of ₹1,242 crore with like-for-like (LFL) growth of 6% during the quarter, while customer entry grew by 3% LFL, growing for 5 consecutive quarters, reflecting stronger engagement and high service standards. The company's focus on premiumisation strategy, beauty business and value fashion format INTUNE have emerged as key growth drivers during the quarter. Average Transaction Value (ATV) grew by 10% YoY, proving that the company's premiumisation strategy continues to offset volume pressures. According to ICICI Securities research report dated July 23, 2026, gross margin contracted ~82bps YoY to 40.1%, while EBITDA margin held broadly stable at 15.2%, with the performance largely in line with estimates.
The beauty segment continued its strong momentum, reporting sales of ₹327 crore, up 15% year-on-year, with the fragrance category leading growth at 34% increase during the quarter. The beauty distribution business GSSBB reported its highest-ever quarterly sales at ₹129 crore, rising 53% year-on-year. The value fashion format INTUNE reported sales of ₹82 crore, up 21% year-on-year, with LFL growth of 10%, with the new price point of ₹1,299 introduced in the previous quarter receiving encouraging response. This marks a significant turnaround as INTUNE reversed four consecutive quarters of flat/negative trend, demonstrating the company's success in managing the highly competitive value-fashion segment. Shoppers Stop's premium portfolio contributed 72% of sales with sales growth of 15% and LFL growth of 13%. Private brands delivered steady performance with average selling price (ASP) growth of 20% driven by portfolio premiumisation, while inventory levels declined 12% year-on-year, indicating improved operational efficiency.
During the quarter, Shoppers Stop continued to focus on its premiumisation strategy, beauty business and value fashion format INTUNE, which have emerged as key growth drivers. The retailer expanded its store network by opening 8 new stores during the quarter, including 2 department stores, 4 beauty stores and 2 INTUNE stores, with a capital investment of ₹44 crore. The First Citizen loyalty programme continued to expand, with the member base increasing to 1.38 crore, with First Citizen members contributing the highest-ever sales mix of 85% during the quarter. The premium Black Card segment saw membership rise 26% year-on-year to over 39,000 members, while 2.02 lakh Silver Card additions were recorded during the quarter, with the Black Card segment contributing 23% of total sales. The beauty business recorded higher customer engagement with more than 1.92 lakh makeovers and over 400 masterclasses conducted during the quarter. MD and CEO Kavindra Mishra highlighted that India Weds with Shoppers Stop, The Travel Edit, and Get Spotlight Ready with HYBE India helped drive stronger customer connect and business growth, with the company remaining focused on strengthening its aspirational positioning and expanding in key markets.
Looking ahead, MD and CEO Kavindra Mishra expressed confidence in the company's trajectory, stating that demand has sustained through Q1 and better supply chain visibility gives confidence ahead of the festive season. The company remains committed to becoming debt-free by FY27, with the strong Q1 performance providing a solid foundation for the upcoming festive season. Mishra emphasized that the company is pleased to report a strong start to FY27 with Non GAAP Consolidated revenue up 10% YoY to ₹1,536 crore and EBITDA up 40% YoY, while PAT turning positive at ₹5 crore compared to a loss of ₹4 crore in Q1FY26. However, ICICI Securities maintains a HOLD rating with a target price of ₹360, citing concerns about the business remaining structurally challenged in delivering sustainable earnings to equity holders despite top-line momentum and format expansion. The brokerage believes operational gains are consistently offset by margin dilution, elevated depreciation and interest burdens, and retains its HOLD stance pending evidence of reliable GAAP profitability.
