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.

Spencers Retail has announced a significant change in its top financial leadership. The company's Board of Directors has approved the appointment of Manjir Basu as the new Chief Financial Officer (CFO) and Key Managerial Personnel, effective September 19, 2025. This decision comes as the current CFO, Sandeep Kumar Banka, transitions to a new role within the group.

Board Approval and Committees' Recommendations

The appointment of Manjir Basu was approved by the Board of Directors following recommendations from both the Nomination and Remuneration Committee and the Audit Committee. This decision was made during a board meeting held on September 19, 2025, which commenced at 10:00 a.m. and concluded at 10:50 a.m.

Manjir Basu's Professional Background

Manjir Basu brings a wealth of experience to his new role at Spencers Retail:

• Qualifications: Chartered Accountant with a B.Com degree from St. Xavier College, Kolkata
• Experience: Over 20 years in financial management and business finance
• Expertise: Specializes in cost control, treasury, fund raising, working capital management, compliance, risk management, stakeholder management, and driving digital transformation

Transition in Financial Leadership

The change in CFO position involves:

• Outgoing CFO: Sandeep Kumar Banka will cease to be the CFO of Spencers Retail from September 19, 2025
• New Role: Banka will be moving to a new position within the group

Regulatory Compliance

Spencers Retail has made this announcement in compliance with Regulation 30 and other applicable regulations of the SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015. The company has also provided detailed disclosures as required under the SEBI Master Circular dated November 11, 2024.

This leadership change comes as Spencers Retail continues to navigate the competitive retail landscape in India. The appointment of Manjir Basu, with his extensive experience in financial management and digital transformation, may signal the company's focus on strengthening its financial strategies and embracing technological advancements in the retail sector.