Shoppers Stop Narrows Losses, Posts INR 176 Cr EBITDA with 21% YoY Growth in Q1FY26

Shoppers Stop Ltd. reported Q1FY26 sales of INR 1,094 crore (GAAP), marking a 6% year-on-year growth, driven by rising demand for premium fashion and beauty brands. Despite macroeconomic headwinds, the retail major posted INR 176 crore EBITDA, up 21%, signalling significant gains in operational efficiency and cost control.

However, losses continued, albeit narrower:

a)       Loss before tax (PBT) stood at INR 24 crore, compared to INR 32 crore last year.

b)      Net loss (PAT) reduced to INR 18 crore, from INR 23 crore in Q1FY25.

On a non-GAAP basis, revenue touched INR 1,336 crore, reflecting enhanced contributions from beauty, private brands, and INTUNE-the company’s value retail format.

“Our focus on premiumisation and customer loyalty is delivering results,” said Kavindra Mishra, MD & CEO. “With 67% of our sales now from premium categories and 85% driven by our First Citizen members, our strategy is aligned with evolving consumer behaviour.”

Further, Shoppers Stop posted a robust 68% year-on-year (YoY) growth in non-GAAP EBITDA, which rose to INR 26 crore in Q1FY26, underlining the company’s improved operational discipline and margin expansion efforts.

A key driver of this performance was the company’s Private Brands segment, which reported INR 156 crore in sales, contributing 13% to overall revenue. Within this, the apparel segment saw a healthy 18% volume growth, especially in categories including kidswear and women’s western wear.

The Beauty vertical, excluding distribution, delivered a steady performance with a 2% YoY increase in sales to INR 219 crore. However, the Beauty distribution business outperformed significantly, growing 117% YoY to INR 84 crore, fueled by new brand launches and enhanced retail partnerships.

Another notable growth driver was INTUNE, Shoppers Stop’s value fashion format, which saw its revenue double YoY to INR 68 crore. This came alongside the opening of four new INTUNE stores, expanding the format’s footprint to 75 stores across 33 cities.

The company’s loyalty program, First Citizen, continued to play a pivotal role in revenue generation, contributing 85% of total sales during the quarter. Notably, the Premium Black Card membership base grew 44% YoY, underscoring a rising preference for premium offerings.

Total First Citizen membership reached 12.7 million, driven by targeted customer engagement, strategic campaigns like “Select Days,” and a balance of repeat and new customers.

In Q1FY26, Shoppers Stop maintained its expansion momentum by opening four new INTUNE stores. As of June 2025, the company’s retail network comprises 112 department stores, 82 specialty beauty outlets, and 75 INTUNE stores, along with other formats, collectively occupying a total retail space of 4.5 million square feet.

In a historic moment, Chairman B. S. Nagesh announced his retirement after a 34-year illustrious tenure. Incoming Chairman Nirvik Singh lauded Nagesh's legacy, calling it a “celebration of visionary leadership that shaped not just Shoppers Stop but Indian retail itself.”

While still in the red, Shoppers Stop is showing credible signs of financial and strategic revival, backed by strong customer loyalty, premium brand growth, and an agile retail model across both aspirational and value segments. The shift toward profitability seems underway, provided the momentum in premiumisation and digital-led engagement continues.