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Shoppers Stop Ltd

| Quarterly Financial Results Q3 FY 2025–26

NEUTRAL SENTIMENT

Report Source

⬤20th Jan 26

Summary : Shoppers Stop reported unaudited Q3 FY26 profits, but 9M FY26 losses, with an ongoing service tax dispute.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Standalone Total Expenses Q3 FY26: Rs. 1,312.33 crores.
  2. Consolidated Total Expenses Q3 FY26: Rs. 1,402.39 crores.
  3. Exceptional item (Q3 FY26): Rs. 17.49 crores (standalone) / Rs. 17.69 crores (consolidated) due to new Labour Codes impacting employee benefits.
  4. Standalone Total Income Q3 FY26: Rs. 1,344.74 crores.
  5. Consolidated Total Income Q3 FY26: Rs. 1,439.77 crores.
  6. Standalone Total Income 9M FY26: Rs. 3,633.72 crores.
  7. Consolidated Total Income 9M FY26: Rs. 3,877.04 crores.
  8. Retrospective service tax levy of Rs. 20.11 crores (consolidated) on renting immovable properties, pending Supreme Court appeal.
  9. Paid-up equity share capital: Rs. 55.04 crores (Standalone & Consolidated, Q3 FY26).
  10. Other equity: Rs. 284.53 crores (Standalone, FY25 Audited) / Rs. 266.17 crores (Consolidated, FY25 Audited).
  11. Consolidated results include Shoppers Stop Limited, Gateway Multichannel Retail (India) Limited, Shoppers Stop Brands (India) Limited, Shoppers Stop.Com (India) Limited, and Global SS Beauty Brands Limited.

Corporate Overview

  1. India
  2. Non-provision of retrospective levy of service tax on renting of immovable properties (Rs. 16.60 crores standalone / Rs. 20.11 crores consolidated) pending Supreme Court disposal.
  3. Primarily engaged in retail trade through retail and departmental store facilities in India.

Risk Factors

  1. Supreme Court appeal on service tax.
  2. Significant retrospective service tax liability.
  3. New labor codes increased employee costs.
  4. Nine-month period shows net loss.

Key Drivers

  1. Board approved unaudited financial results.
  2. New labor codes implemented, impacting benefits.
  3. Strong quarterly revenue growth observed.
  4. Company reported positive net profit.

Auditor’s Report

  1. Unmodified review report issued on standalone and consolidated financial results.
  2. Non-provision of retrospective service tax levy (Rs. 16.60 crores standalone / Rs. 20.11 crores consolidated) on renting of immovable properties, pending Supreme Court appeal.

Board Commentary

  1. Contingent liability from retrospective service tax levy on property rentals, currently under Supreme Court appeal.
  2. Non-provision of retrospective service tax levy (Rs. 20.11 crores consolidated) on renting immovable properties, pending Supreme Court appeal.

Corporate Governance

  1. Audit Committee reviewed and recommended financial results to the Board of Directors.

Management Discussion & Analysis

Risk Control Measures

  1. Company has challenged the service tax levy and its retrospective application based on legal advice.

Critical Risks

  1. Retrospective levy of service tax on renting of immovable properties, aggregating Rs. 20.11 crores (consolidated), pending final disposal by the Supreme Court.