Shoppers Stop reports 69 % Y-o-Y decline in consolidated net profit for Q3, FY26
22 January 2026, Mumbai
Shoppers Stop reported a consolidated net profit of Rs 16.12 crore for the quarter ended December 31, 2025, representing a 69 per cent Y-o-Y decline despite a 3 per cent uptick in revenue to Rs 1,416 crore. The fiscal results highlight a significant divergence between volume growth and bottom-line stability. While broader discretionary demand remained uneven due to festive calendar shifts and regional environmental factors in North India, the retailer’s deliberate transition toward a high-margin portfolio has gained momentum. Premium brands now account for 69 per cent of total sales, registering a 6 per cent like-for-like growth - a figure that suggests affluent consumer segments remain resilient even as mass-market consumption moderates.
Operational headwinds and structural adjustments
The profitability decline was largely intensified by a Rs 17.5 crore exceptional charge related to the implementation of the New Labor Codes, which necessitated higher employee benefit provisions. Despite these statutory pressures, the beauty vertical emerged as a primary growth engine, with sales rising 14 per cent to Rs 395 crore, driven by high-performance fragrances and the expansion of the SS Beauty format. We are maintaining our strategic focus on experiential retail and high-value categories to offset operational cost escalations, states Kavindra Mishra, Managing Director and CEO. The company also recorded a 7 per cent increase in both Average Transaction Value (ATV) and Average Selling Price (ASP), indicating a qualitative shift in customer acquisition through its 13.3-million-strong First Citizen loyalty program.
Future scaling and market positioning
Looking toward FY27, management has issued guidance for mid-teen revenue growth, supported by the national rollout of the ‘Intune’ value-fashion format and a calibrated expansion of premium ‘HomeStop’ stores. While the apparel segment faces intense competition from digital-first disruptors, Shoppers Stop is leveraging its omnichannel infrastructure and refurbished experiential flagship stores, such as the Juhu location, to secure long-term market relevance.
Operating since 1991, Shoppers Stop is India’s leading premier department store chain with 110 locations and a 4.4 million sq. ft. footprint. The brand specializes in premium apparel, luxury beauty, and home lifestyle categories. With a focus on omnichannel integration, the company targets mid-teen revenue growth in FY27, backed by a high-value loyalty base and specialized beauty distribution.
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