Shoppers Stop shares drop 5% post Q1 results; Here's what analysts say

Shoppers Stop's sales figure for the quarter ending June 30, 2025, stood at ₹1,094 crore (GAAP basis), marking a slight increase of 6 per cent from ₹1,034 crore recorded in Q1FY25.

Shoppers Stop share price today: Shares of the retail chain Shoppers Stop plunged over 5 per cent on Friday, July 18, 2025, logging an intraday low of ₹540.10, after the company released its earnings for the first quarter of the financial year 2025-2026 (Q1FY26). 

 

At 9:40 AM, shares of Shoppers Stop were trading at ₹543.80, down by 4.92 per cent on the National Stock Exchange. In comparison, Nifty was trading at 25,066.75 level, down by 44 points or 0.18 per cent. The total market capitalisation of the company stood at ₹5,985.01 crore.   

 

Shoppers Stop Q1FY26 Results

Shoppers Stop's sales figure for the quarter ending June 30, 2025, stood at ₹1,094 crore (GAAP basis), marking a slight increase of 6 per cent from ₹1,034 crore recorded in the corresponding quarter of the previous fiscal year. Gross margins improved by 30 basis points (bps) to 40.9 per cent in Q1FY26 as against 40.6 per cent recorded in Q1FY25. The company narrowed its losses from ₹23 crore in the first quarter of FY25 to ₹18 crore in Q1FY26.

 

The company's earnings before interest, taxes, depreciation and amortisation (Ebitda) stood at ₹176 crore, up 21 per cent from ₹146 crore recorded in the same period of the previous financial year.

 

“We have delivered an impressive performance delivering sales of ₹1,336 crore registering 6 per cent growth and 5 per cent like-for-like (LFL) growth in department stores, driven by premiumisation," said Kavindra Mishra, managing director and CEO of Shoppers Stop Ltd.

 

Interestingly, the premium segment's contribution to sales rose to 67 per cent, up 8 per cent year-on-year (Y-o-Y). 

Shoppers Stop stock: Should you buy the dip?

Shoppers Stop's earnings for the quarter ending June 30, 2025, were largely in line with the analyst expectations. Healthy performance in the premium vertical helped the company report a 7 per cent Y-o-Y rise in gross profits to ₹450 crore, largely in line with Motilal Oswal estimates. However, store count remained flat as the addition of four Intune stores was offset by the closure of beauty stores. Motilal Oswal Financial Services has maintained its 'Neutral' rating on the stock.

 

Meanwhile, Chokkalingam G, founder of Equinomics Research, has advised investors to avoid the stock. "The overall outlook for physical retail chains remains subdued due to the growing shift towards digitalisation and the rise of digitally native brands. We expect similar headwinds for other players in the sector, including DMart and Trent, with performance likely to remain under pressure," he said.