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.

Spencer's Retail Limited , a prominent player in India's organized retail sector, has reported a mixed set of results for the second quarter. The company's performance shows signs of sequential improvement but continues to face challenges on a year-on-year basis.

Revenue Growth and Store Operations

Spencer's reported consolidated sales of ₹445.00 crores for the quarter, marking a 7% quarter-on-quarter (QoQ) growth from ₹416.00 crores in the previous quarter. However, this figure represents a decline from ₹518.00 crores recorded in the same quarter last year. The company's core Spencer's division achieved a notable 9% QoQ topline growth, primarily driven by a surge in online sales.

Online Sales Surge

The company's online segment demonstrated remarkable growth, with sales surging by 53% due to higher order volumes and increased customer frequency. This significant uptick in e-commerce performance underscores the shifting consumer preferences towards digital shopping platforms.

Gross Margin Improvement

Spencer's Retail saw an improvement in its gross margins, which rose to 19.6% from 19.1% in the previous quarter. This represents a substantial increase from the 15.4% margin recorded in the prior year, indicating the company's efforts in enhancing operational efficiency.

EBITDA and Profitability Challenges

Despite the revenue growth and margin improvement, the company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) decreased to ₹13.00 crores (3.4% of sales) from ₹15.00 crores (4.2% of sales) in the previous quarter. This decline was primarily attributed to increased marketing investments and lower other income.

The company reported a consolidated loss before tax of ₹64.00 crores, marginally higher than the ₹62.00 crores loss in the previous quarter. However, this represents an improvement from the ₹87.00 crores loss recorded in the same quarter last year.

Nature's Basket Performance

Nature's Basket, a subsidiary of Spencer's Retail, maintained flat sales at ₹68.00 crores with margins holding steady at 27.6%.

Store Network

As of the end of the quarter, Spencer's operates a network of 98 stores with a total area of 9.17 lakh square feet, while Nature's Basket runs 33 stores.

Consolidated Financial Overview

While Spencer's Retail shows signs of recovery with QoQ growth and margin improvements, the company continues to face challenges in achieving profitability. The significant growth in online sales presents a bright spot, indicating the company's successful adaptation to changing consumer behavior. However, the increased marketing spend and overall market conditions continue to pressure the bottom line.