Shoppers Stop Q1 results today: Will company report good numbers after 91% drop in March quarter profit?

The stock ended at ₹579.45 on the NSE, up 0.56%.

The company's results are awaited as the market will get cues on how consumer demand has been for retail and discretionary products after the government in Budget 2025-26 provided a major impetus to boost consumption.

The finance minister announced that individuals earning up to ₹12 lakh annually will not have to pay any income tax under the new tax regime.

"The new structure will substantially reduce the taxes of the middle class and leave more money in their hands, boosting household consumption, savings and investment," Finance Minister Nirmala Sitharaman said in her budget speech on February 1, 2025.

Besides, the Eighth Pay Commission is also expected to boost consumption.

The company's commentary on demand trends, guidance and the outlook will be keenly tracked by market participants.

Elara Capital, in its latest report issued on July 17, said that India’s consumption cycle is strong. Urban non-affluent demand is likely to get a fillip as the policy skew that was against taxpaying consumers (owing to the rising spread between income tax growth and the government’s revenue expenditure growth) is slowly moderating thanks to the impending Eighth Pay Commission and income tax rebates announced in the FY26 Union Budget.

"Falling interest rates are aiding leveraged consumer balance sheets, and credit and government spending impulses are gaining strength after a lull in FY25, as the policy backdrop turns to lift demand. The above reasons should at least in the short run override concerns on sluggish income and wage growth," wrote Garima Kapoor, an economist with Elara Capital.

Shoppers Stop Q4 FY25 Results

Shoppers Stop reported a 91.4% decline in consolidated profit to ₹1.99 crore in the March quarter (Q4 FY25).

The company had posted a net profit of ₹23.18 crore in the year-ago period, Shoppers Stop said in a regulatory filing.

However, its revenue from operations was up 1.68% to ₹1,064 crore in the March quarter. It was at ₹1,046.34 crore a year ago.

Its total expenses were ₹1,089.76 crore in the fourth quarter of the previous fiscal year, up 3.85%.

Shoppers Stop MD and CEO Kavindra Mishra said, "Shoppers Stop delivered consistent performance despite continued softness in demand and a challenging macro environment. We achieved 4% revenue growth with 3% like-for-like growth (non-GAAP), marking the second consecutive quarter of LFL growth."

About Shoppers Stop

Shoppers Stop operates large-format department stores, home stores, speciality stores, and warehouse retailers. Its stores offer apparel, accessories, fragrances, footwear, cosmetics, toys, kitchen and dining products, home appliances, home furnishings and decor products.

The company operates retail stores under private brands such as Kashish, Stop, Life, Fratini, Bandeya, Karrot, Haute Curry, Insense, Altlife, U R You, Arcelia and Earthi and external brands such as Estée Lauder, MAC, Clinique, Smashbox, Jo Malone, Bobbi Brown, Vettorio Fratini, Rocky Star, Desigual, Femina Flaunt, Sanaa, Back to Earth, IVY, All Brands, and Kendall Kylie.