Spencer's Retail Q1 FY27 Results (NSE: SPENCERS)
Signal: Loss narrowed
The read
The trajectory improved at the top line and sequentially at the operating level—consolidated revenue grew 12.9% YoY and derived EBITDA margin reached 2.0% from 0.5% QoQ—but the group remains structurally loss-making, with finance costs of ₹4,642.59 lakh and a ₹99,876.94 lakh current-asset deficit keeping the turnaround unproven.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹469.47 Cr | +12.9% | +7.6% |
| Net profit | ₹-60.45 Cr | +1.9% improvement in loss | |
| EPS | ₹-6.71 | +1.9% improvement | |
| EBIT margin | 2.0% |
P&L walk
Consolidated revenue increased to ₹46,947.33 lakh, +12.9% YoY and +7.6% QoQ, with derived EBITDA margin improving to 2.0% from 1.1% YoY and 0.5% QoQ; however, finance costs rose 15.8% YoY to ₹4,642.59 lakh and the group remained loss-making at ₹6,044.88 lakh.
Segments
The consolidated loss of ₹6,044.88 lakh was ₹2,642.06 lakh worse than the standalone loss of ₹3,402.82 lakh, with Natures Basket alone reporting revenue of ₹787.88 lakh and a loss of ₹680.99 lakh.
Key positives
- Consolidated revenue increased to ₹46,947.33 lakh, +12.9% YoY and +7.6% QoQ, reversing the prior-year revenue decline.
- Derived consolidated EBITDA rose to ₹937.75 lakh from ₹473.50 lakh YoY and ₹222.51 lakh QoQ, with margin improving to 2.0%.
- Other expenses declined 12.1% YoY to ₹5,437.73 lakh on a consolidated basis, helping the sequential loss narrow to ₹6,044.88 lakh from ₹6,558.45 lakh.
Key concerns
- Consolidated gross margin fell 137bps YoY to 19.8% as purchases of stock-in-trade rose 18.1% to ₹37,016.71 lakh, faster than the 12.9% revenue growth.
- Finance costs increased 15.8% YoY to ₹4,642.59 lakh, leaving the group with a ₹6,044.88 lakh loss despite positive derived EBITDA.
- Current liabilities including borrowings exceeded current assets by ₹99,876.94 lakh at the consolidated level, making the turnaround dependent on credit lines, promoter support and asset monetisation.
- Natures Basket reported a ₹680.99 lakh loss on ₹787.88 lakh revenue, contributing to the material gap between the ₹6,044.88 lakh consolidated loss and ₹3,402.82 lakh standalone loss.
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