Spencers Retail Ltd

Financial Performance

• Consolidated Q1 FY27 revenue Rs 469 cr, up 13% YoY.
• QoQ growth 8% vs Q4 FY26.
• Gross margins Rs 93 cr consolidated; LY Rs 86 cr.
• EBITDA Rs 9.4 cr, 2% of sales; LY Rs 4.7 cr (1%).
• Online growth 49% YoY; offline growth 14%.
• Spencer's SPSF Rs 1,850; target Rs 2,000 in festive quarter.
• Membership: 125k+ members, ~25% of active base; ~1/3 of monthly sales.
• ABV online ~Rs 780+; margins aligned; repeat rate ~67%; NPS 85+.
• Delivery: on-time under 30 min; in-full >90%.
• Nature's Basket Q1 sales Rs 59 cr; Q4 Rs 55 cr.
• NB EBITDA -Rs 2.5 cr; Q4 -Rs 4.5 cr.
• Consolidated PBT negative Rs 60 cr vs Rs 66 cr LY in Q4.
• Total debt Rs 1,266 cr consolidated; SRL Rs 1,019 cr; NBL Rs 237 cr.
• Debt refinancing process started; expected closure this month.

Operating Update

• Spencer's online growth near 49%; offline 14% growth; driven by retention.
• SPSF target remains 2,000; current 1,850 per sq ft.
• Membership program: 125k+ members; 25% of active base; drives repeat purchases.
• Online unit-order economics turned positive; from negative to positive per order.
• Repeat rate ~67%; NPS 85+; on-time delivery ~30 minutes; in-full >90%.

Balance Sheet and Cash Flow

• Total debt Rs 1,266 cr consolidated; SRL Rs 1,019 cr; NBL Rs 237 cr.
• Debt refinancing process started; expected closure within the month.

Projects and Capex

• No new Spencer's stores planned this fiscal; relocations and a couple of openings within clusters.
• Kolkata suburban store launched; expansion to be calibrated, not a.Number target disclosed.
• NB capex: refurbishing stores; limited capex; online focus to grow.

Outlook and Guidance

• FY27 outlook: sustain growth momentum; disciplined working capital and inventory optimization.
• Online growth guidance: around 25% full-year for online business.
• Store EBITDA target: 7.5%–8% for Spencer's stores.
• FY28: calibrated expansion plan after achieving targets; no aggressive openings this year.
• NB: no new stores; refurbish existing; scale online presence.

Q&A Summary

• Growth drivers: higher number of bills and ABV; online 49%, offline 14%; across channels.
• NB turnaround KPIs: sales per sq ft, rupee gross margin, cost control; focus on staples and fresh.
• Q-commerce pilots: not pursued; online growth requires inventory and availability first.
• Gourmet listings with Blinkit/Flipkart unlikely due to margin sharing; no quick wins.
• Debt refinancing progress: process started; completion expected within month.
• Spencer's expansion: no new stores this year; Kolkata store opened; calibrated approach for FY28.

AGM Details

• Ninth AGM scheduled for 11 September 2026 at 3:00 PM IST.
• Mode: Video Conferencing / Other Audio-Visual Means; deemed venue: registered office.
• Cut-off date for voting eligibility fixed at 4 September 2026.

Key Resolutions

• Ordinary: adoption of standalone and consolidated financial statements for FY2025-26.
• Ordinary: re-appointment of Mr Anuj Singh as Director, liable to retire by rotation.
• Special: increase in borrowing limits to Rs 1,350 Crores.
• Special: creation of charge on movable/immovable assets to secure borrowings up to Rs 1,700 Crores.
• ESOP: 1,20,000 options granted; 2,49,000 additional options approved post-year.

Voting Results

• MD/CEO re-appointment approved via postal ballot with 99.99% in favour.
• Outcomes for other resolutions are not disclosed in this filing.

Dividend

• Dividend: no dividend recommended for FY2025-26 due to accumulated losses.

Directors & KMP Changes

• CFO change: Manjir Basu appointed CFO w.e.f. 19 Sep 2025.
• MD/CEO Anuj Singh to be re-appointed for three years from 22 Mar 2026.

Auditor Appointments

• Statutory auditors: S.R. Batliboi & Co. LLP; second five-year term 2025–30.
• Secretarial auditors: Manoj Shaw & Co.; five-year term 2025–30.

Material Related Party Transactions

• Related party transactions were in the ordinary course and at arm’s length; no material RPTs disclosed.

Other Material Approvals

• ESOP details: 1,20,000 options granted; 2,49,000 additional options approved post-year.
• Certificate confirming ESOP implementation to be placed at the ensuing AGM.

Meeting Details

• Date of call: August 13, 2026.
• Type and mode: earnings conference call (group) with audio recording.
• Event/organiser: Spencer's Retail Limited.
• Key company participant: Company Secretary & Compliance Officer.
• Purpose: discuss unaudited standalone and consolidated Q1 results (June 30, 2026).
• Recording availability: audio recording posted on company site.

Financial performance

• Q1 FY27 revenue ₹469.5 Cr, YoY +13%, QoQ +8%.
• Gross margin ₹92.8 Cr, 19.8%.
• EBITDA ₹9.4 Cr; 2.0% margin; improved vs LY.
• PBT ₹-60.5 Cr; PAT ₹-60.4 Cr.

Operational highlights

• Online business grew 50% with profitability at unit level.
• Offline sales grew 14% with improved retention and frequency.
• Spencer's standalone EBITDA ₹18 Cr, margin 4.4%.

Group footprint & drivers

• Footprint: 131 stores across 27 cities; ~10.34 lakh sq ft area.

Outlook & strategy

• Momentum expected to continue; focus on same-store growth and higher sales per sq ft.
• Operational efficiency and cost controls prioritized to improve margins.

Standalone financials

• Standalone revenue from operations: Rs 40,793.52 lakhs.
• Standalone total income: Rs 40,909.69 lakhs.
• Standalone loss after tax: Rs -3,402.82 lakhs.
• Standalone EPS (basic & diluted): Rs -3.78.
• Board approved unaudited standalone results for quarter ended 30 Jun 2026.
• One business segment: organised retail.

Consolidated financials

• Consolidated revenue from operations: Rs 46,947.33 lakhs.
• Consolidated total income: Rs 47,128.68 lakhs.
• Consolidated loss after tax: Rs -6,044.88 lakhs.
• Consolidated EPS (basic & diluted): Rs -6.71.
• Board approved unaudited consolidated results for quarter ended 30 Jun 2026.

Liquidity & going concern

• Standalone liabilities exceed assets by Rs 73,052.64 lakhs.
• Group liabilities exceed assets by Rs 99,876.94 lakhs.
• Promoter/credit support available; going concern basis maintained.
• Cost reduction initiatives launched.

Board action & notes

• Board meeting held August 13, 2026; results placed with annexure.
• Audit Committee reviewed results; limited review by statutory auditors.

Meeting Details

• Date and time: August 13, 2026 at 5:00 PM IST.
• Type and mode: group meeting via virtual conference call.
• Organizer: EMKAY GLOBAL FINANCIAL SERVICES LTD.
• Company participants: CEO & MD; CFO; Executive Director, IR.
• Purpose: discuss 1QFY27 results.

Certificate enclosure

• Certificate under Regulation 74(5) for the reporting period enclosed.