What: Shoppers Stop's non-GAAP EBITDA rose 56% to Rs 43 crore in Q2 FY27, while beauty sales grew 18%, net debt fell by Rs 82 crore and outright inventory declined.

Why it is important: Beauty growth of 18% and a 59% jump in beauty distribution revenue show beauty acting as a growth engine for Indian department stores, even as rivals such as Reliance Retail invest heavily in the category.

Shoppers Stop reported consolidated non-GAAP profit after tax of Rs 6 crore for Q2 FY27, against a loss of Rs 7 crore a year earlier, as EBITDA rose 56% to Rs 43 crore. Consolidated non-GAAP revenue increased 7% to Rs 1,618 crore. On a GAAP basis, revenue grew 9% to Rs 1,366 crore and PAT stood at Rs 3 crore, against a loss of Rs 20 crore. The company said the festive calendar shift pushed more seasonal demand into Q3.

The department store business recorded sales of Rs 1,302 crore, with festive-adjusted like-for-like growth of 7%. Beauty grew 18% to Rs 367 crore, led by a 35% increase in fragrance sales, while beauty distribution revenue rose 59% to Rs 168 crore. E-commerce sales, including omnichannel transactions, grew 12% and contributed 14.2% of revenue.

The company opened seven stores in the quarter, with capital expenditure of Rs 39 crore, and its First Citizen loyalty programme reached 14 million members. Net debt fell by Rs 82 crore during the quarter, and the company remains on track to be debt-free by the end of Q3 FY27. Outright inventory was down Rs 78 crore year-on-year.

IADS Notes: Shoppers Stop's Q2 FY27 profit follows losses in three of the last four quarters: Rs 20.1 crore in Q2 FY26 despite 13% revenue growth (India Economic Times, October 2025), Rs 16.35 crore in Q4 FY26 on FY26 revenue of Rs 5,095 crore (India Economic Times, May 2026), and Rs 14.25 crore in Q1 FY27, when the loss narrowed on 11.2% revenue growth (India Economic Times, July 2026). The July update already pointed to inventory discipline and the goal of becoming debt-free by FY27, which the latest results back with an Rs 82 crore net debt reduction. Deleveraging is also visible at a European peer: El Corte Inglés combined double-digit profit growth with record-low debt, outperformance in Fashion and Beauty, and 16.3 million registered customers (press release, June 2026). Shoppers Stop's 18% beauty growth and 59% rise in beauty distribution revenue come as competition in Indian beauty intensifies, with Reliance Retail acquiring Anomaly to expand its portfolio (India Economic Times, May 2026).

Shoppers Stop turns profitable in Q2 FY27 as consolidated revenue rises 7 per cent to Rs 1,618 crore