Shoppers Stop Reports Q3FY26 Results with Declining Profitability Despite Revenue Growth

Shoppers Stop Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, revealing a mixed performance with revenue growth offset by declining profitability. The Board of Directors approved the results at their meeting held on January 20, 2026.

Financial Performance Overview

The company's standalone performance showed contrasting trends between revenue and profitability metrics during the quarter under review.

Metric	Q3FY26	Q3FY25	Change (%)
Revenue from Operations	₹1,320.85 cr	₹1,311.46 cr	+0.72%
Net Profit	₹12.61 cr	₹48.78 cr	-74.14%
Total Income	₹1,344.74 cr	₹1,333.78 cr	+0.82%
Total Expenses	₹1,312.33 cr	₹1,265.54 cr	+3.70%

Nine-Month Performance Analysis

The nine-month period ending December 31, 2025, presented more challenging results for the retail chain.

Parameter	9M FY26	9M FY25	Variance
Revenue from Operations	₹3,590.35 cr	₹3,413.26 cr	+5.19%
Net Loss	₹27.96 cr	Profit ₹4.27 cr	Loss of ₹32.23 cr
Total Income	₹3,633.72 cr	₹3,448.84 cr	+5.36%
Total Expenses	₹3,655.35 cr	₹3,440.68 cr	+6.24%

Impact of Exceptional Items

The company's results were significantly affected by exceptional items totaling ₹17.49 crores during the quarter. These charges stemmed from the implementation of New Labour Codes by the Government of India, effective November 21, 2025. The consolidation of multiple existing labour legislations into four unified Labour Codes resulted in a one-time increase in employee benefit provisions, which was recognized as an exceptional item under Indian Accounting Standards.

Consolidated Results

On a consolidated basis, which includes subsidiaries Gateway Multichannel Retail (India) Limited, Shoppers Stop Brands (India) Limited, Global SS Beauty Brands Limited, and Shoppers Stop.Com (India) Limited, the performance metrics were:

Consolidated Metrics	Q3FY26	Q3FY25	Change
Revenue from Operations	₹1,415.82 cr	₹1,379.47 cr	+2.64%
Net Profit	₹16.12 cr	₹52.23 cr	-69.14%
Nine-Month Net Loss	₹19.72 cr	Profit ₹8.92 cr	Loss of ₹28.64 cr

Operational Highlights

During the quarter, the company granted 78,777 Employee Stock Options under the ESOP Scheme 2022, compared to 21,345 options in the corresponding quarter of the previous year. Additionally, 39,388 Restricted Stock Units were granted to eligible employees, significantly higher than 10,673 units granted in Q3FY25.

Earnings Per Share and Other Metrics

The company's earnings per share on a standalone basis declined to ₹1.14 for Q3FY26 from ₹4.43 in Q3FY25. For the nine-month period, the company reported a loss per share of ₹2.54 compared to earnings per share of ₹0.39 in the previous year. The paid-up equity share capital remained relatively stable at ₹55.04 crores with a face value of ₹5 per share.

Regulatory and Legal Matters

The company continues to contest a retrospective service tax levy of ₹16.60 crores (₹20.11 crores on consolidated basis) for the period June 1, 2007, to March 31, 2010, related to renting of immovable properties for commercial use. The matter remains pending before the Supreme Court of India, and the company has not made provisions for this amount, which was paid under protest.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.08%	-0.90%	-19.39%	-34.37%	-42.63%	+73.71%

Shoppers Stop Limited announced the allotment of 5,224 equity shares under its Employee Stock Option Plan 2022 on January 20, 2026. The allotment was approved by the company's Nomination Remuneration & Corporate Governance Committee during its meeting held on the same date.

Share Allotment Details

The allotted shares were issued following the exercise of vested Employee Stock Options by employees under the Shoppers Stop Limited Employees Stock Option Plan 2022. The company clarified that this allotment is not material in nature to the organization.

Parameter	Details
Number of Shares Allotted	5,224 equity shares
Par Value per Share	₹5.00
Exercise Price per Share	₹5.00
Premium per Share	₹0.00
Date of Issue	January 20, 2026
ISIN Number	INE498B01024

Updated Share Capital Structure

Following this allotment, the company's share capital structure has been updated. The total issued share capital now stands at ₹55,05,86,645, representing a marginal increase from the previous capital base.

Metric	Post-Allotment Details
Total Share Capital	₹55,05,86,645
Total Number of Shares	1,10,117,329 shares
Par Value per Share	₹5.00
Distinctive Numbers	110112106 to 110117329

Regulatory Compliance and Plan Details

The allotment was conducted pursuant to Regulation 30 of SEBI Listing Regulations and complies with the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. The SSL Plan 2022 had received consolidated in-principle approval from both BSE and NSE in 2022.

The BSE approval was granted on June 24, 2022, for 20,00,000 equity shares comprising 13,33,000 ESOPs and 6,67,000 RSUs under filing number DCS/IPO/TL/ESOP-IP/2384/2022-23. NSE provided its approval on June 15, 2022, under filing number NSE/LIST/31360 for the same quantum of shares.

Share Characteristics

The newly allotted equity shares will rank pari-passu with existing equity shares of the company in all respects. No lock-in period applies to these shares, and no additional listing fees are payable for this allotment. The committee meeting that approved the allotment commenced at 3:00 PM and concluded at 3:45 PM on January 20, 2026.