Shoppers Stop Limited , a prominent Indian retail chain, has released its unaudited financial results for the second quarter and first half of the fiscal year 2025-26, revealing a mixed financial picture with improved revenue but continued losses.

Revenue Growth

For the quarter ended September 30, 2025, Shoppers Stop reported a standalone revenue from operations of Rs 1,175.31 crores, marking a 10% increase from Rs 1,068.10 crores in the same quarter of the previous year. The half-yearly revenue also saw an improvement, rising to Rs 2,269.50 crores from Rs 2,101.80 crores year-on-year.

Persistent Losses

Despite the revenue growth, the company continues to grapple with losses. The standalone net loss for Q2 FY2026 stood at Rs 22.68 crores, slightly higher than the Rs 22.00 crores loss reported in Q2 FY2025. For the half-year, however, the loss narrowed to Rs 40.57 crores from Rs 44.51 crores in the previous year.

Consolidated Performance

On a consolidated basis, Shoppers Stop's performance showed similar trends. The net loss for the quarter was Rs 20.11 crores, while the half-yearly loss amounted to Rs 35.84 crores.

Financial Highlights

*All figures in Rs crores

Pending Legal Matter

The company disclosed a pending service tax matter amounting to Rs 16.60 crores (standalone) relating to a retrospective levy from 2007-2010. This case is currently before the Supreme Court, and Shoppers Stop has not made provisions for this potential liability.

Board Approval and Audit Review

The financial results were approved by the Shoppers Stop Board of Directors at a meeting held on October 17, 2025. The statutory auditors have completed a limited review of these results as required under SEBI regulations, issuing an unmodified report.

Shoppers Stop's performance in Q2 and H1 of FY2026 reflects the ongoing challenges in the retail sector, with the company showing resilience in revenue growth but still working towards profitability. The pending legal matter adds an element of financial uncertainty, which investors and stakeholders will likely monitor closely in the coming months.

Shoppers Stop , a leading retail chain in India, is gearing up for a strong festive quarter, buoyed by recent Goods and Services Tax (GST) reforms that have reduced tax rates on apparel. The company's Managing Director, Kavindra Mishra, expressed optimism about the upcoming quarter, predicting a 'bumper Q3' and improved performance in the second half of the fiscal year.

GST Reforms Boost Consumer Demand

The recent GST reforms, which took effect on September 22, have significantly altered the tax landscape for the apparel industry. Under the new structure:

• Apparel priced between Rs 1,000 and Rs 2,500 now attracts a reduced GST rate of 5%, down from the previous 12%
• Clothing items priced below Rs 1,000 continue to be taxed at 5%

These changes are expected to stimulate consumer demand, particularly in the mid-range apparel segment.

Encouraging Store Footfalls

Mishra reported that store footfalls have shown a positive trend since the implementation of the GST changes. This uptick in customer traffic is a promising sign for the retailer as it heads into the crucial festive season.

Performance Outlook

Shoppers Stop's performance indicators and expectations include:

• A 6% like-for-like growth reported in Q1
• Anticipation of high single-digit growth in Q2
• Expectation of a strong Q3 driven by festive demand and GST benefits

Diverse Portfolio and Margin Stability

Despite the increased focus on apparel due to GST changes, Shoppers Stop maintains a balanced portfolio:

• 40% of the company's offerings are in the non-apparel category, which remains unaffected by the recent GST modifications
• Margins are expected to remain neutral, even with the projected increase in demand

Luxury Segment Growth

The luxury segment of Shoppers Stop's business has shown robust performance:

• 9% growth reported in the luxury category
• This growth indicates a continuing trend of premiumisation, contributing to the overall positive outlook

As Shoppers Stop navigates the evolving retail landscape, the combination of GST reforms, diverse product offerings, and strong luxury segment performance positions the company for potentially significant growth in the coming festive season. The retail chain's optimism reflects broader positive sentiments in the Indian retail sector as it recovers from previous challenges and adapts to new tax structures.