Spencer's Retail Limited announced its unaudited financial results for the third quarter ended December 31, 2025, revealing deteriorating performance with widening losses and declining revenue. The Board of Directors approved these results at their meeting held on February 6, 2026, under Regulation 33 of SEBI (LODR) Regulations, 2015. The company also released an investor update presentation providing detailed quarterly performance analysis.

Financial Performance Overview

The company's consolidated financial results showed significant deterioration across key metrics for both quarterly and nine-month periods:

Quarterly Performance Analysis

The company demonstrated strong quarter-on-quarter growth with consolidated revenue increasing 13.0% from ₹445 crores in Q2FY26 to ₹503 crores in Q3FY26. However, year-on-year performance declined due to the split festive season between September and October:

Nine-Month Performance Analysis

The nine-month period ending December 31, 2025, reflected similar declining trends with consolidated revenue falling to ₹1,363.85 crores from ₹1,583.33 crores in the corresponding period of the previous year:

Spencer's Retail Performance

Spencer's retail format showed improved margins at 20.0% compared to 19.6% in Q2FY26 and 19.7% in Q3FY25. The division achieved quarter-on-quarter growth of 11.8% with sales reaching ₹421 crores:

Nature's Basket Performance

Nature's Basket achieved strong quarter-on-quarter growth of 19% with sales increasing to ₹81 crores from ₹68 crores in Q2FY26. However, margins declined by 170 basis points:

Operational Challenges and Going Concern

The company faces significant liquidity challenges, with current liabilities exceeding current assets by ₹1,021.01 crores on a consolidated basis as of December 31, 2025. Despite these challenges, management expressed confidence in the company's ability to continue operations, citing access to unutilized credit lines with bankers and potential additional capital from promoters when required.

The company reported additional expenses of ₹3.76 crores on a consolidated basis due to new Labour Code provisions notified by the Government of India. These codes consolidate twenty-nine existing labour laws and introduce changes including uniform wage definitions and enhanced leave benefits.

Leadership Continuity

The Board of Directors approved the reappointment of Mr. Anuj Singh as Chief Executive Officer & Managing Director for an additional three-year term effective March 22, 2026:

Mr. Singh brings three decades of experience across FMCG, Food Service, and Retail organizations, with leadership roles in India, Europe, and the Middle East. He is an alumnus of London Business School and IIM Calcutta.

Earnings Per Share Performance

Consolidated earnings per share for Q3FY26 stood at negative ₹6.47 compared to negative ₹5.25 in Q3FY25. For the nine-month period, consolidated EPS was negative ₹20.39 against negative ₹19.74 in the corresponding previous period, indicating deteriorating per-share performance despite the company's restructuring efforts.

Source:

Spencer's Retail Limited , a prominent player in India's retail sector, has reported a 7% quarter-on-quarter growth in revenue for Q2FY26, reaching INR 445.00 crores. This growth comes despite facing GST-related supply chain issues and heavy rains in West Bengal that affected operations in September.

Key Highlights

• Consolidated revenue reached INR 445.00 crores, up 7% QoQ
• Online platform Jiffy achieved 30% QoQ growth, reaching INR 52.50 crores
• Offline business maintained 21% margins
• Launched loyalty program attracting over 40,000 members

Financial Performance

Segment-wise Performance

Online Business (Jiffy)

Spencer's online platform, Jiffy, demonstrated strong growth with a 30% QoQ increase in revenue, reaching INR 52.50 crores. The company reported positive unit economics for this segment, indicating improving operational efficiency.

Offline Business

The offline business maintained robust margins at 21%, showcasing resilience in a challenging market environment. The company's focus on optimizing its store network and improving operational efficiencies appears to be yielding results.

Strategic Initiatives

Spencer's Retail has launched a new loyalty program, which has already attracted over 40,000 members. This initiative aims to enhance customer retention and drive repeat purchases, potentially contributing to future revenue growth.

Challenges and Outlook

While the company faced headwinds from GST-related supply chain disruptions and adverse weather conditions in West Bengal during September, it managed to deliver growth. The ability to navigate these challenges while maintaining margins and growing the online business suggests a degree of operational resilience.

CEO Anuj Singh commented on the results during the earnings call, stating, "Despite a September which was disrupted due to GST-related supply chain issues and heavy unseasonal rains in West Bengal, we delivered a 7% QoQ growth at a consolidated level, showing some buoyancy in our business."

Looking ahead, Spencer's Retail aims to continue its focus on omnichannel growth, with particular emphasis on expanding its online presence through Jiffy while optimizing its offline store network. The company's strategy of balancing growth in the online segment with efficiency improvements in the offline business appears to be the cornerstone of its near-term plans.

As the retail landscape in India continues to evolve, Spencer's Retail's performance in Q2FY26 demonstrates its ability to adapt to changing market conditions and consumer preferences. The company's focus on digital growth, coupled with efforts to enhance operational efficiency, positions it to potentially capitalize on the ongoing shift towards omnichannel retail in India.