Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Shoppers Stop Limited (NSE: SHOPERSTOP) Q3 2026 Earnings Call dated Jan. 21, 2026
Corporate Participants:
Pranay Premkumar — Investor Relations
Kavindra Mishra — Customer Care Associate, Managing Director and Chief Executive Officer
Devang Parikh — Business Head of Intune
Analysts:
Sameer Gupta — Analyst
Unidentified Participant
Ashutosh Joytiraditya — Analyst
Devanshu Bansal — Analyst
Rehan Seyed — Analyst
Karan Gupta — Analyst
Ankit Kedia — Analyst
Unidentified Participant
Deepali Kumari — Analyst
Unidentified Participant
Muskaan Agarwal — Analyst
Gaurav Gandhi — Analyst
Harsh Shah — Analyst
Raheel s — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Q3 and nine month FY26 earnings conference call of ShopperStop Ltd. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Pranay Premkumar from 10 to one investor relations team.
Thank you. And over to you, Mr. Prem Kumar.
Pranay Premkumar — Investor Relations
Thank you, Ranju. Good morning and thank you all for joining us on the shopper stop Q3 and 9 months FY26 earnings conference call. Today we have with us senior management represented by Mr. Kavendra Mishra, Customer Care Associate Managing Director and Chief Executive Officer and Mr. Karunakaran Mohana Sundaram, Customer Care Associate and Chief Financial Officer. We will begin the call with the opening remarks from the management after which we will have the forum open for the interactive Q and A session.
I must remind you that the discussion in today’s earnings call may include certain forward looking statements and must be viewed therefore in conjunction with the risk that the company faces. Please restrict your questions to the quarter’s performance and to strategic questions. Only housekeeping questions can be dealt with separately with the IR team. I would now request Mr. Kavindra Mishra for the opening remarks. Thank you. And over to you, sir.
Kavindra Mishra — Customer Care Associate, Managing Director and Chief Executive Officer
Thank you. Prem Kumar. Good morning. I have Karuna JP and Rohit with me. Viju and Devang will join me later. We have uploaded the investor presentation on our corporate and in stock exchange websites. Let me start by talking about the operating environment during the third quarter which quite frankly was more sluggish and muted than what we had initially expected. Going into the festive season, consumer sentiment throughout the quarter remained cautious. We saw demand getting impacted by a combination of factors.
One key issue, especially in North India, was the high pollution levels during parts of the quarter which kept customers indoor and had a direct impact on footfalls and discretionary spending in some of our important markets. We had also expected a stronger demand pickup during GST reduction. While there was a visible spike immediately after the reduction, that momentum did not sustain beyond the initial period. The broader uptift we were anticipating did not really play out over the rest of the quarter.
If I break the quarter down month by month, October post Diwali was relatively soft. Diwali demand itself was reasonably good. But the festive season shifted early. Earlier into October this year, once Diwali was over, demand tapered off sharply as a result of which our like to slide sales declined in October. November showed some improvement. The first half of the month was slow, reflecting an overall market slowdown post festivities. However, demand picked up meaningfully in the second half of November, driven largely by events like Black Friday, which helped drive footfalls and conversion.
This resulted in a Like to like like for like growth for the month. December, however, was a disappointment given the early Diwali. We had expected a stronger December, but that did not materialize. Consumer spending stayed muted and December ended up being largely flat on a like for like basis. So overall for the quarter, like for like sales declined in October, due in November and were largely flat in December, building a flat sales for the quarter. The early Festive shift the broader markets were on the first half of November along with economic factors and environmental issues like pollution effectively weighed on demand during the quarter.
This also impacted our overall business similar to previous quarter. I will start with the core performance and then I will dwell upon intune and new businesses, capital allocation, including working capital and way forward for the fourth quarter and beyond on our recovery plans in detail. Let me talk about the core businesses. As I mentioned last quarter, our premonition journey has been progressing really well and that momentum continued throughout this quarter. Wedding with Shopperstop was a huge success and along with the introduction of several new premium and premium plus brands helped us move the promotion mix from 65 to 69%.
What we focused on in Q3 was building on what we had already put in place while also adding a few incremental initiatives to further strengthen the premium play. We see a steady increase in the share of non apparel categories which tells us that customers are increasingly engaging with us beyond just apparel and trusting us across a wider set of lifestyle needs. From a profitability standpoint, we are encouraged to see consistent improvement in jimroft for both Premium and Premium plus brands. This reflects better brand selection and improved inventory productivity.
Overall. These efforts are helping us elevate the customer proposition and position the business as a more premium multi category destination while continuing to drive healthier returns. Let me give you some snippets and the results of what we did. We launched India Message Shoppers from and it has gone really well. Sales from this campaign came in at rupees 104 crore which was up by around 160% over last year. When you walk into our stores now the vibe is just better. More international brands on the shelves, fixtures that look sharper and services that feel more personal Our personal shoppers have played a big part in this with their contribution climbing from 23% to 27%.
And of course our First Citizen membership keeps growing strong driving loyalty sales that now stand at 84%, proving how much they value being part of the family. Our first citizen members cumulatively stand at 13.3 million as of end of quarter three. Let me share some numbers that reflect our execution strength. Customer entries grew by 5% despite a challenging operating environment. New customer acquisition remained strong at 40% of total customers. Key KPIs continue to show healthy trends with ATV at 7% and ASP 7% while IPT remained stable.
The loyalty saw its highest ever enrollments during the quarter for Black cards which was around 38,000 while silver card signups were at 220,000 cars which was 8% growth over last year. We launched several new brands during the quarter including dkn Wine Watches, Prada Eyewear, Marks and Spencers and Hugo and Apparels, Everlite and Sennison Jewelry among others. Overall prevention improved by 6% during the quarter. Despite the above, our last sales rally remained flat due to operating environment which I discussed a few minutes back.
Our EBITDA before one off cost dropped by 24% mainly because we have been spending more on customer acquisition, running bigger marketing campaigns and putting extra money into improving the tech behind our website. While that hit our short term numbers, these are deliberate investments aimed at driving growth and strengthening the business for the future. We have also considered an additional cost of approximately 17.5 crores arising from the revision in labour quotes. Given the maturity of the impact, it has been included as an extraordinary expense in line with recently published ICI guidelines.
Let me talk about the new businesses starting with Intune. I have said this earlier, we are consciously investing in product sourcing and brand building and we are encouraged by the way the business is shaping up. Having said that, the broader value segment saw a fairly tough quarter with muted demand conditions across the market. Post the festive period there was a noticeable and sharp drop in conversion which did weigh on overall performance. The marketing environment also remained challenging with higher noise, deeper discounts and pressure on spends.
Despite these headwinds, our festive period performance was resilient, delivering a 4% like for like growth. While the near term environment remains uncertain, we remain focused on strengthening the fundamentals and are confident about the medium to long term opportunity. Let me clarify our new businesses including both Intune and the new website on beauty. The losses include for both with nearly one fourth of losses coming from ssbeauty.in in PAMI due to tech and customer acquisition costs. As I mentioned earlier, the short term losses we are seeing do not reflect the true potential of the business.
These are the functions of the investments we are making at this stage to build scale and capability. I will share a more detailed view on our plans and the way forward in my concluding remarks. Let me talk about the beauty business. Beauty sales grew by 14% driven primarily by fragrances which grew 12% along with strong performance from a distribution business which supported overall growth. As in previous years, we continued to engage actively with consumers through multiple initiatives. During the quarter we also expanded our physical footprint by opening 8shop in shop locations, enhancing accessibility and brand visibility.
Looking ahead, our focus remains on delivering a personalized customer experience through technology. Let me talk about the distribution business now. Our distribution business delivered a very strong performance during the quarter with revenue of rupees 122 crores growing by 58%. Reflecting both the strength of our portfolio and improved execution, we achieved revenue of 122 crores in Q3 which effectively means a run rate of Rupees 500 crores and above per annum. GSSB continues to expand its brand offering with the addition of new brands such as Playboy fragrance and semihealth Beauty in Makeup which have been well received in the market.
E Commerce remains a key growth driver for the business and we are further strengthening this channel by expanding existing brands across new platforms while also onboarding additional platforms. We are also seeing deeper penetration with our existing customer base which is helping drive consistent growth. The launch of Euro Italia brands in September have been encouraging with healthy sell through so far, reinforcing our confidence in the long term potential of the distribution business. This marks a significant milestone in our strategic focus on beauty as a high potential growth engine for shopper stock.
Capital Allocation we have been quite disciplined and cautious on capital allocation this year, keeping a sharp focus on returns and balance sheet strength. During the quarter we opened three departmental stores, three in tune stores and one homestop store. As a result, the total capex incurred stands at approximately Rs 90 crore, all of which has been funded through internal accruals. Looking ahead to Q4 we plan to open another four to five departmental stores, three intune stores and two beauty stores taking the total number of new departmental stores adding during the year to nine.
I’m happy to share that all the departmental stores open do during this year have performed exceedingly well and are tracking ahead of our expectations on the balance sheet front. Our net debt currently stands at around 90 crores which is lower by rupees 159 crores versus the year end position. We expect the net debt to close the year in the range of 150 to 160 crores which would be nearly Rs rupees 100 crores lower than last year. This improvement is largely driven by a focused effort on reducing inventory which is reduced by 122 crores across verticals without compromising on availability of growth.
Availability or growth? Going forward, we’ll continue to balance growth with prudent capital deployment, maintain tight controls on working capital and ensure that the new store additions and investments are aligned with long term value creation. Way forward. I will start by saying that we are very clear that Q3 has been an exception due to festive shift and higher level of pollution. We are confident of bouncing back from here. We have seen this play out before even in FY25. Sales declined in the first two quarters, but we saw strong recovery over the next four quarters and we believe a similar trajectory is possible this time as well.
Let me address the elephant in the room on intune and the way forward. We have been getting a lot of calls asking whether we will continue with this business or not and the short answer is yes. We genuinely believe the worst is behind us and more importantly, value added business will drive meaningful profitability gains while more importantly building a strategically important portfolio for shopper stock. Let me talk about inventory first. We have made solid progress. We started the year at around rupees 100 crore which is now at about 70 crores and by the year end we should be close to 60,000 in inventory.
So a big part of the risk has already been taken out. Secondly, we have already absorbed most of the inventory related pain. We took roughly rupees 10 crores of provisions mainly in the first half. Those numbers have come down quite sharply now which tells us the legacy issues are largely done. Third, and this is important, we are entering spring summer with completely fresh inventory. Stores will be filled with new merchandise and that changes the story materially in terms of sell through and margins.
Fourth, we have gone store by store on profitability where we feel the turnaround will take too long. We will take clear calls on closures before mid next year. We don’t want capital stuck in the wrong places. We believe that the value fashion market itself is large and still under penetrated. But to be clear, we did face demand issues as well driven by the product mix freshness and price value equation. With fresh inventory and sharper assortments, we believe demand will normalize from a Numbers standpoint.
Yes, this year will close with a loss of about Rupees 60 crores, but Q3 losses have reduced significantly versus quarter two. Despite the festive shift next year we expect that to come down meaningfully to around 20 to 25 crores. And even after overheads and from FY28 we expect the business to turn profitable for us. We believe that Q1FY27 is really the inflection point and both the board and the management are confident that the story will start looking very different from here onwards. Now I will discuss the core business.
We continue to execute our strategy meaningfully to elevate our store portfolio, the clear focus on the premium and bridge to luxury segments. The launch of our Juhu store on January 14 marked a sealed milestone. Positioned as one of India’s most premium experiential retail destinations, it reflects our long term commitment to curated differentiated customer experiences. Looking ahead, we will further expand our premium footprint with the opening of state of the art stores at Pune Pavilion and zora Raipur in Q4.
Supporting sustainable growth and brand elevation. Our immediate priority is improving conversion. With customer entries already trending up, even a modest improvement in conversion can drive overall sales in a geometric progression and this remains a key area of action for us. We will continue to drive the business through personal shoppers and plan to invest further in the capability this year. We expect the contribution from personal shoppers to improve by at least 200 to 300 basis points over time.
A critical area for us is improving its supply chain efficiency in our private brands, particularly Indian womenswear. This was the primary reason for the dip in revenue and profitability in Q3 and corrective actions are already underway. Non apparel continues to be a strong growth engine for us having grown at double digit rate for the last few quarters and we are continuing to sharpen our efforts in this category. Customer acquisition has been strong and we intend to build on momentum through multiple programs initiatives to further widen the funnel.
Our loyalty programs have delivered excellent results going significantly over the last year. We believe that this remains as a key pillar of our strategy and we will continue to strengthen it and drive it over the coming year on capital allocation. Finally, we will remain prudent and disciplined alongside growth in investments. We will continue to reduce working capital. As I mentioned earlier, the stores opened during this year have been performing exceptionally well which gives us confidence in our expansion strategy.
To conclude, I would like to reiterate that Q3 was an exception. We are confident that with the actions underway we will see a clear turnaround over the next two quarters. Thank you.
Questions and Answers:
Operator
Should I open the floor for questions? Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on your touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Sameer Gupta with India Info line.
Please go ahead.
Sameer Gupta
Hi. Good morning, sir. And thanks for taking my question up front. Firstly on department stores. Am I audible?
Kavindra Mishra
Yes, abhir.
Sameer Gupta
So first firstly on department stores. I mean we have had around five closures this year if my calculations are correct. And last year this number was nine closures. Now persistently, you know, with the exceptions of few years, we have had fairly decent amount of closures every year in department stores. Now could you first elaborate the reasons for these five closures that happened this year? Because I remember last year we had said that we are towards the end of the journey of closing stores and going forward the closures will be more like in the normal course of business.
And if these are the normal course of business going forward also, should we expect similar amount of closures?
Kavindra Mishra
Okay, Sameer, thank you for your question. I think as I mentioned last time as well, we are in the process of, I mentioned last time we are in the process of cleaning up of the tails, right. Which we felt are important because the stores which are of a certain size and profitability don’t make sense for us to continue. So I think we made a lot of corrections there. We definitely have made corrections this year as well. But if I talk about, for example we have Shata Ludhiana store but we have opened a larger and a better store in the same market.
So some of these actually like the Bata Chowk, Faridabad or Ludhiana are stores in the same city or catchment. We have opened a better looking store and replaced this store. So I think when we see these five stores being closed, few of them come from that perspective. We have a very active mechanism of looking at the stores which profitability sense or not. I think as I mentioned last time, the heavy lifting has been done. Sameer, three to four stores is quite a possibility in a business where markets keep on changing or we keep on getting a better opportunity in the same market like we did in case of Ludhiana or in case of Faridabad, incidentally, wherever we are opening or shutting the old run down store and opening A new store, the performance continues to be more accretive both in terms of profitability and returns to the business.
So now what you are seeing is also correction of the market. It is not that we are vacating the market. We are opening a better store and opening stores which were at one point of time relevant in some market which are now moving out.
Sameer Gupta
Sir, if these are largely relocations, then I should only be looking at the net store edition. And there also we have actually not done. I mean, we are down to, you know, buy tools department stores this year if you look at the net one. So I mean, I mean, if large part of the additions are happening via relocations, we are then not really adding a lot of stores. Right.
Kavindra Mishra
So as I mentioned, the stores which we have opened this year, and if I can take you through them, Ludhiana is a replacement. Okay. Annikpuri is a complete new store. We have opened a store in Hubli which is a complete market. We opened Rajamundari, which is a completely new market. And the balance four stores which are opening between four to five stores which we are going to open between January end and March are all new stores.
Sameer Gupta
Got it, sir. And these relocations are largely your high street stores because malls, I mean, there’s no real point of relocation unless the mall is shutting down, right?
Kavindra Mishra
Yeah. So, you know, it’s straight. For example, Sagirabad was a high street and we opened in the mall. But on the other hand, the Ludhiana, which we did, we moved to a stronger high street because the mall had become irrelevant at some point of time. Got
Sameer Gupta
It. Got it. And if I can just ask you the mix of high street versus mall stores in department, would you have it handy?
Kavindra Mishra
It would be, I think 80% mall stores and 20% high street stores. But one thing which I wanted to maybe for your comfort and for everybody who’s on the call, the quality of stores which are opening in terms of the mall stores or any stores which are opening now have the potential to be far higher than the averages which have opened in the recent past. So we are now signing up stronger, bigger properties which have the right to win in the markets in which they are. So I think that has been one mix we have now changed and you would see that paying out very nicely over the next few quarters.
Sameer Gupta
Sure, sir, all the best for that. I think 35,000 square feet is what you have mentioned in the PPT. Okay. And second question, last one from me. Gross margin contraction of around 111bips this quarter. Now in a quarter where premium has done well and winters in general have been harsher. Plus you mentioned intune provisions have come down. What really explains the GM contraction this quarter?
Unidentified Participant
Thanks Amer, that’s a fabulous question. Though the intune provisions have come down. The end of season sale in intune started earlier this year and out of this 110 basis points, almost 50 basis points is because of the intune lower margin this year. Last year intune the end of season sales started in the last few days of December whereas we started almost 19 20th of this year. And that’s one second one the private brand because of the reasons what Kavi explained both the overall mix and there has been a slightly higher provision in private brand and that impacted almost 40 to 50 basis points.
These are the two large reasons of 110 basis points drop versus last year.
Sameer Gupta
Got it. Sir, one last question if I may squeeze with your permission. Go ahead. When I look at department stores, footfall growth is decent, average ticket value is growing. So the problem then the only thing left is conversion. And for a retailer which is largely third party improving convergence is not really in your hands, right? I mean people come to your store with the, you know, the shoppers stop pull to drive footfalls and from there on conversion is a function of the merchandise. And if the merchandise from the third party retailers is not exciting third party brands then it’s not really in your hands.
What I’m trying to ask is that is it also a sign that brands are also focusing more on opening their own ebos? Because any mall that you go, you will have a shopper Stop but you will also have brand EPOs who are selling in Shopper Stop in the same location and the merchandise available at Shopper Stop is lacking in depth or is subpar in any way.
Kavindra Mishra
No, I. Sameer, I don’t think that is the that’s the reason because brands continue to have multi channel and I think if you speak to brands they will tell you that they have grown really well with shopper stock versus the other channels in which they operate, including their own. For us, Indianwear, especially private brand Indianwear is one of the biggest recruitment categories. Okay. That actually has a larger than life play in terms of conversion. Obviously there are a couple of more things how to drive your personal shopper thing.
But we feel that somewhere because of the stock issues there we have been able to make sure obviously there are a lot of other reasons for that and it is more operational driven and internally and nothing to do with customer per se or the brand mix. Because if you Ask the brands. We have performed very well for most of the brand. My sense is that one the inability of our key brand private brands in terms of stock being very very low versus last year. I think that was a big issue for us And I think also because as in more and more new customers are coming in and As I mentioned 40% of the bills which are coming through new customer their conversion tends to be little lower than the thing which has happened.
So I think it’s a fundamental question of that Sameer rather than because brands have been opening eboos for last so many years. Right. And that doesn’t answer this drop and we are very confident that we will be able to do that. So we have already done some work streams to work on that to ensure that while the customer entry keeps on growing we are also able to drive conversions up.
Sameer Gupta
Got it. Sir, thank you so much for answering all the questions so elaborately. I’ll come back in the queue for any follow ups. Thanks a lot.
Kavindra Mishra
Thank you.
Operator
Thank you. Next question comes from the line of Ashutosh Jyoti Raditya from ICICI Securities. Please go by now.
Ashutosh Joytiraditya
Thank you. Good morning sir. So my question is on the growth front. So despite the strategic focus on premiumization
Devanshu Bansal
And also the focus on value segment
Ashutosh Joytiraditya
We are not kind of seeing consistent growth. Right. So somehow we are missing that growth momentum even like for like growth also is negative and just want to understand what is missing here. Like by when can we see a consistent growth going forward given the strategies which the company is following.
Kavindra Mishra
Okay. Thanks Ashutosh. So if I look at and let me step back and answer your query and break it into different businesses so that it becomes easier for us to answer your question. If I look at the departmental store the last three to four quarters actually if I keep Q3 aside have been rather good. I think we have been having a consistent mid season or mid single digit like for like growth and Even actually the Q2 was close to nine and a half percent. Right. We did we and we had a flat Q3 for departmental store business.
As I said there was some issues on conversion which is led more by internal operational issues there. There’s obviously a shift of the festival Diwali this year, this quarter versus last quarter last year and you know there were some issues in north which we mentioned and some of our big stores like for example Juhu was under renovation for the entire Q3 which has also impacted part of the business and you will see the recovery happening there otherwise actually if you look at it ytd we will be close to 4.5 to 5% like for like growth.
So it’s not that. And I think when we started the year that was one thing which we commented that we will be between 4 and a half to 5% like for like growth for the year. I think we are sticking to it. Definitely you are right that from the 9 or 10% which we did last quarter, we have come down to a flattish number this time. But as I mentioned, that is an aberration. We don’t see this happening and the secular growth of 5% will remain. I think the important thing is that when will our new stores start kicking in?
Because rightly so, the overall good should not be limited to five, it should be close to a high single. I think that’s where we have to make our new stores sweat harder and whatever needs to be done to ensure that that happens. We are doing beauty. We have spoken about that beauty. The business is growing and is doing really well. Powered by fragrances and globalss Beauty. In case of Intune, which is actually the place where we said maximum growth should happen in terms of the top line, we did have a 22% odd growth.
This quarter should have been far, far higher because the bases are very small in this business right now. We were struggling with the inventory issue which we have just shared. My sense is shoppers, the department of business you will start seeing back in action from this quarter onwards. Beauty continues to be strong and intune. As we mentioned, it is Q1 of next year when you will see the profitability as well. And I think one good initial opening sign is that for the festive, intune grew by 4% like for lag.
So I know these are very small wins and in the larger mix it doesn’t reflect in the right way but very, very confident that we are in the right direction. Ashutosh.
Ashutosh Joytiraditya
Yeah, so that is very helpful. So just to clarify like so I understand the demand situation and the festivity, all those things. So just to clarify. So there isn’t any slowness or not slowness exactly. But any internal issue which is impacting the growth. Right. Just to clarify on that thing because as you mentioned just for example, Intune so It grew by 22% and if we see like player like trend, their growth has also moderated. But still like on such a high base they have like delivered almost 17% growth.
So if we compare like something is not actually adding up. Right. Given your focus and all those things and a very, very small base, still only 22% growth.
Kavindra Mishra
No, it should be much higher. I completely agree. I think we were stuck. I. I did mention about the inventory and not the. The. The freshness of the inventory not being there during. Especially for intune which. Which I also mentioned that by this summer we should be. So as we enter the season in March end. I think it’s more. It’s more to do with the inventory in the stores which we are. Which we have been able to, you know, remove now. And we are in a much better situation in terms of inventory as we speak.
So that. So you will see the growth I think at the end of the day for a business which is on product. If the product freshness is not there, it will definitely impact. If you ask me what should this number. This number should have been 65, 70%. It should not have been 20 to 22%. Right. And what I think was a similar number which we achieved in the quarter before. So this will go back to that number. It is a question of inventory freshness. But I think we have done lot of heavy lifting and cleaned up the stuff.
The inventory which was used to be 100 crores has now come down to 60 crores. And that is why it has come down to that 60 crores by liquidating old merchandise and making it fresher. So I think the customers when they enter the intune stores will see a far fresher and cleaner inventory and relevant inventory than carrying then seeing things which are old.
Ashutosh Joytiraditya
Okay. Okay, understood. So that. That is helpful. And just like one last thing. So what kind of revenue growth we should expect in FY27 like for the overall business?
Unidentified Participant
I would say we are working on those numbers. I would say, I mean including both organic and inorganic. We would expect a mid teen growth.
Ashutosh Joytiraditya
Hello?
Unidentified Participant
Yeah, did you hear me?
Ashutosh Joytiraditya
No, sorry sir, I could not.
Unidentified Participant
No, I said we are just working on those numbers for the next year budget. So the initial estimate seems to be a middle say 12 and 15 percentage for the next year.
Ashutosh Joytiraditya
Okay. Okay. Okay. Thank you. Thank you sir.
Operator
Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question comes on the line of Rehan Seyed with Trinitra Asset managers. Please go ahead.
Rehan Seyed
Yeah, good morning. The attainment for taking my question like my most of the questions I have been answered. So I just want this clarification. Am I audible now?
Unidentified Participant
No.
Rehan Seyed
Am I clear now? Can
Unidentified Participant
You sort of. Can you speak slower and louder?
Rehan Seyed
Yeah, sure, sure. So like my. Most of the questions have been answered. So I just want one more clarification on The IM format. So the management commentary mentions the calibrated approach and measured expansion for the intune value format due to to dismiss a demand. So the plan for quarter four is to open only three more stores reaching a total of 84 despite a format delivering 22% via sales growth this quarter. So the question here is, is the moderation main tune openings of Urban and PI BOD strategy due to unit economics not meeting the initial rr?
How the. How does the company plan to compete with other patient details in every if it is slowing down, it’s at the format gain scale.
Devang Parikh
Great
Kavindra Mishra
Question. I will request devang
Devang Parikh
To answer this. Thank you Rehaan for the question. I’m sorry if I have misunderstood. I’ll try and answer. As per my understanding, the growth in Q4 being restricted to three stores is largely on account of what Kavi mentioned in his opening remarks that we were trying to get our current operating business sorted out in terms of, you know, the legacy inventory problems being solved and you know, the growth of the operating stores being brought back to expected levels. Once we see a quarter of our expectations flowing through, the previous phase of expansion will again catch up.
So I think this is more internal than external if that is what your question was.
Rehan Seyed
Yeah. Yeah.
Devang Parikh
Thank you.
Karan Gupta
Yeah, thank you.
Operator
Thank you. Next question comes from the line of Ankit KD with Philip Capital. Please go ahead.
Ankit Kedia
So just one clarification needed. You know in one of the questions you answered that in FY27 we are expecting intune losses to be 25 crores. In another question you mentioned from Q1 we will see breakeven. So can you clarify what will be the FY27 EBITDA PAT loss of in tune and when will the break even happen?
Kavindra Mishra
Hi Ankit, I think between me and Kauna will try to answer. So what I mentioned was that the expected losses for intune for the business would be around 2025 crores for FY27. And when I said Q1 is really the inflection point is when we will start seeing a big shift in terms of the performance and consequently the ebitda. So I think just, just to give you that sense, we expect that FY27 the entire business would be when. When I say 2025 crore that includes the head office cost as well as in the entire business, not.
Not the store profitability.
Ankit Kedia
And this is a PAT loss, not EBITDA loss. Right. So when you say breakeven you are expecting EBITDA breakeven and not pat, right?
Unidentified Participant
Yeah, that’s right. Ankit see between EBITDA and Pat the difference is only on account of depreciation. Other than that. Yeah. When we can allow a notional interest other than that it’s only the depreciation. So it doesn’t make a significant difference. It’s primarily ebitda. But to answer your question, it’s an ebitda.
Ankit Kedia
Sure. My second question on the store opening for intune, what are we planning for next year store opening because if I look at a two year back then we may reduce it to 3035 and now we are going to close at mid teens stores opening for intune. So next year if the SSG doesn’t come, you know what we anticipating will the stores opening will still be sub 30 stores or we will still expand given the inventory correction is already happening.
Kavindra Mishra
So Ankit, I think two parts of it. One, the current current focus is to get the I think all the models across inventory and supply chain right for this set of stores. Right. As I mentioned Q1 FY27 is where we see things everything playing out in the right way for us. And this is that I think we will have a much stronger opening plan in H2. You need to give us some time to come back on because we don’t want to commit a number. And then I think we have seen that experience this year and I think we would rather be a little shy around that.
I would rather get the team to deliver on what we are supposed to do as a team because that if you are able to do that 75 stores well that itself will be a big turnaround person profitability. And then with the engine of store opening we have got I think we can open multiple stores and I don’t think that’s an issue for us right now is to first get the inventory right which I think very confident that end of March we should be in that situation. And that’s the feedback I get from the operational team as well.
Let me first solve that out and then we move into the thing about expansion. So initially Q1 also will be very moderated next year in terms of store opening. I see more expansions happening in H2 but I think Q1 end we will be able to answer that question better. Yeah. And because the turnaround time for intune for us is very very short vis a vis a departmental store and the opportunities and since we have already mapped the market we know what stores to open and where. We just want the current set of stores to get fixed first.
Ankit Kedia
Sure. My last question is on departmental store. You know for Last three, four quarters we have focused on premiumization. If you look at a juice store, your in orbit store in Malad also you know it’s more high end, more premium also there. Right. So what is the kind of customer profile is shopper stop targeting with these premium brands coming in and do you think you know the footfalls which you are garnering are youth or you know 30, 35 age group who have the money to spend on these brands today while the younger audience is going towards more value fashion.
Kavindra Mishra
So I think we are very clear and I think Ankit you have bang on this for us our key customer basis 3035 and that is where we want to focus on the young families. What is our stated ambition and also our vision statement. And we just want to be focused on that. Now you spoke about both Mallard and Juhu. Well you will find that there are premium brands in Mallard and experiences but you also have, you have a good mixture of bish to luxury and you have got premium brands in Mallard. On the other hand Juhu, which is a more differentiated kind of neighborhood.
You have much more, much much more premium set of brands there. And what we are seeing in both the cases as we done the renovation and it’s too early for Juhu only a week or so but we are seeing a 35 to 40% uptick in numbers. So I think as long as we are able to meet the customer requirement and I think the important thing is that our customers have also grown up in the aspiration and we continue to ensure that we also improve the quality of brands and the kind of brands we have in our system. Young family, 30, 35 years premium.
I think that’s very clear as a business strategy and I think think it’s working out well for us. If you look at even this quarter while the overall or the like for like for department stores is flat. For premium plus set of brands it is it’s like 9 or 10% and for premium brands between 2 to 3%. So what we are seeing is clearly there is a set of brands which are performing better in this portfolio. And it is no longer that the premium plus is a small part. It has gone up to as high as 25% for us.
So we are seeing across and non apparel specially is leading that big change for us.
Ankit Kedia
Sure. And one last question for Devang Devang market leaders. Julio, you know their numbers out seems like their like for like growth is high single digit negative. You know we are not performing other listed players. So in the value fashion Market, why suddenly slow down here? Is it competitive intensity? Is it inventory like for you was an issue similarly for peers, where do you see the challenge lies for all the value fashion players or their new customers are tired and now wanting to go shop somewhere else?
Devang Parikh
Thank you Ankit. The question is quite reflective in nature, so I’ll try and give my point of view and I will obviously not be able to comment on a competitor’s performance at this stage, but I think in the near and long term the value fashion space is very, very lucrative. I don’t see the space slowing down. There could be some hiccups in the short term. All I can say is that as far as intune is concerned, we fell into that cyclical problem of legacy inventory slowing down, freshness, freshness slowing down the promise that we made to the customer customers resulting in top line issues which as Kavi said, we’ve addressed and I think, you know, towards the end of Q4 and in Q1 we will see our freshness promise really fulfilled and the numbers coming back.
So I don’t see the segment itself under any kind of duress. That’s my personal view.
Ankit Kedia
Sure. Noted. Thank you so much and all the best.
Operator
Thank you. Next question comes from the line of Devanshu Bansal with MK Global. Please go ahead.
Devanshu Bansal
Hi Kavi, thanks for taking my question. So first I wanted to understand you mentioned focus on working capital optimization. We understand there is a certain innovative band that we have exited also. Is this also more to do with the working capital management thing that you sort of alluded to? If that’s the case, I also wanted to understand what is the size of business that we have sort of exited to optimize our working capital.
Kavindra Mishra
Hi Devanshu, I, I. We could not just summarize your question. What do you mean? I think it was little muffled. So if you can, if may I request you to.
Devanshu Bansal
Yeah, Am I audible now?
Kavindra Mishra
Yeah.
Devanshu Bansal
Yes, I was indicating that you mentioned focus on working capital optimization and we understand that you have exited the leader in the innovate space. So wanted to understand in a way, in a way innovation.
Unidentified Participant
Okay. Innova brand. Yeah.
Devanshu Bansal
Is this also more to do with the working capital management and what was the size of business that we have exited
Unidentified Participant
From that perspective?
Kavindra Mishra
No, I had Devanshu. So no, I think the brand which you are referring to, it was not because of. We don’t remove performing brands because of working. I don’t think we are at that stage or is there any issue of working capital there? It was more to do with the Commercial, which we had agreed to and there was a desire of the brand to change it, which we were not comfortable with. I think the business for that brand is even less than 1% of our revenue. So I don’t think that’s an issue. In fact, to add, we have also been able to successfully convert a lot of our OR brands into sor, which has actually added to a stronger working capital statement.
And the brand whom we have removed from our thing, we have been able to replace in a lot of cases that brand with Marks and Spencer, which is a premium brand portfolio, which we added. So I don’t think that decision was anything to do with working capital. It was more to do with the commercial terms which we are, which I think we had a different defensive point of view and which is fine. Brands will have a point of view, will have a point of view. We have to see each other’s interest and see what works or what doesn’t work.
So just to give you a sense, we don’t take these decisions on basis on working capital.
Devanshu Bansal
Fair enough. And is this the only brand that we have sort of exited because of the differences on opinions related to commercials or there are few that we have exited.
Kavindra Mishra
This is the only brand whatsoever. Difference of commercials. Otherwise you know what? Because we at this point of time have the ability to have the best and I think it’s a blessing which we have from our customers. We definitely there are a lot more brands who want to come inside and whom we don’t have a space. So as a process, what we do is we continue to churn the brands. I think one of the most important thing is to speak to the customers and get a feedback from them what kind of brands they want within our system.
So to give you a sense, more than 100,000 customer voices are collected every month. We share with them the kind of brands we want to introduce, take their feedback and get them. So I think churn is something which we will continue to do and thankfully the brands continue to support us in a very, very strong way. Given also the fact that at this point of time for a premium, super premium, bridge to luxury, we are the only relevant partner at this point of time.
Devanshu Bansal
Fair enough. And last question from mine, I wanted to understand is there a growth divergence across categories as well for you or most categories are secular kind of growth similar to the company average.
Kavindra Mishra
Sorry Devanshu, again this question got muffled. If you. I’m sorry but can you repeat this?
Devanshu Bansal
Yes, definitely. Apologies if my voice is not here. I was asking is there a Growth divergence across categories that we have that we offer to customers or most categories are seeing similar to company average growth.
Kavindra Mishra
No. So for example the non apparel categories have done really well. So if I talk about watches, handbags have done exceedingly well. In fact they are double digit like for like beauty, especially fragrances has done really, really well. Women’s western wear as a category has done really well. I think one category which didn’t do that well was Indian wear because of shift of festive. Right. Because I think that that that’s something which suffered. We also feel that men could have done better, the branded men this quarter.
And that’s more to do with some amount of churn happening in the brands I think which I believe that is getting stabilized as we move into this quarter. So clearly non apps is a big winner.
Devanshu Bansal
Fair enough. Thanks Kavir, thanks for answering my questions.
Kavindra Mishra
Thank you.
Operator
Thank you. A reminder to all the participants, please restrict yourself to two questions. Next question comes on the line of Deepali Kumari with Arihant Capital Markets limited. Please go ahead.
Deepali Kumari
Thanks for the opportunity. So I have a question. The beauty distribution business doubled its revenue to 106 crore this quarter. As you scale the segments with global partner, how does the margin profile and working capital requirement for distribution compare to your SSDT retail reviews?
Unidentified Participant
Your voice is not clear. So are you asking that for global Essence brands, how do we manage working capital? What’s your question?
Deepali Kumari
Yeah, for distribution business, how you manage the working capital?
Unidentified Participant
Okay, so distribution by definition is high intensity working capital. So we do hold anywhere between. 16. To 20 weeks of inventory. You’re also funded largely between six to eight weeks. So the net inventory would be 12 weeks. Weeks and that is taken care of in the margin part. So the churn of the inventory is also very high in beauty business. So overall if you see the profitability. On the distribution business, you can see that it’s highly profitable. And most importantly when we import the multiplier, what we call the price what we import and the price what we sell it to our customers, there is a significant difference and that’s the way we we make the pro, the profit, the pip.
Deepali Kumari
Okay, got it. I’m like private brand sales grew by only 3% and their contribution to the apparel business stand at 17%. So given the focus on sharpen brand portfolio and design and others and why it is segment lagging behind the overall core business growth of 7%.
Kavindra Mishra
Deepali, if I understand your question is why was the PB or private brand business lower in in Q3 versus the core versus the business. Is that what you are asking?
Unidentified Participant
Yeah. Yes.
Kavindra Mishra
Okay. Okay. So Deepali, basically the private brand business for us a large part of it is driven by Indian wear. And because of the festive shift, because Diwali this year versus last year, the dates were split across this year across September, October versus entire October last year we had little bit of loss of sale there. Also as I mentioned we had some availability issues in our leading brand called Kashish which actually led to this. Otherwise if I look at other parts of the business of private bank there are more or less they did fairly well.
Deepali Kumari
I have one last question. What is the conversion percentage of customer entry?
Kavindra Mishra
Okay, so for our departmental store business the conversion is around 18%.
Deepali Kumari
Okay. And for beauty.
Kavindra Mishra
As in this 18 is more or less for the entire departmental store. So beauty is a part of that.
Operator
Thank you. Next question comes from the line of Amit Akicha with HG Hawa. Please go ahead.
Unidentified Participant
Good morning sir. Am I audible?
Kavindra Mishra
Yes, yes Amit, you are.
Unidentified Participant
Yeah, yeah. Thank you for the opportunity. And sir, congratulations. At least like year on year, quarter. On quarter. ASPs increasing. I appreciate. And so the question is, was connected to the labor code. Like how much of the labor code impact is one time versus recurring? The 18 crores impact.
Unidentified Participant
The 17 and a half crores is a one time impact amidst the recurring impact will not be significant because having. See I am sure you would have read the entire labor code, right. If it’s on the one time contribution to both gratuity and leave and cashment and the leave and cashment itself will be reduced to 30 days from now. That’s the rule as set. And as far as the gratuity contribution is concerned and this the one time impact is 17 and a half. And we are working on with the management, how do we neutralize even if there is an incremental impact from the next year?
Unidentified Participant
And the second question was like post GST reduction, like have any category shown sustained elasticity or was the demand like entirely front loaded?
Kavindra Mishra
So to be honest Amit, I we felt that this should have been, you know, the demand, as I said in my opening remarks, the demand should have been throughout and not for a particular time which is especially festive. What’s happened is that we have seen that certain categories like watches, handbags and perfumes have still have the sustained listing. But if you, if you ask me, apparel, whatever impact was there was only till the festive. After that it has slowed down considerably.
Unidentified Participant
Understood. Understood. The last question, do we do it on online and digital as well
Kavindra Mishra
Of. Course we have two apps. SS shopperstock app and SSbeauty.in that are these two apps which we have where you know and I think you must have seen the investments also which we are doing in both these to ensure that if I’m not mistaken last quarter we said that we will be closing especially the ss.com change of the backend completely which has actually happened. And I think we should see some good results coming in this quarter on that.
Unidentified Participant
Thank you sir. That was for my best for the future.
Kavindra Mishra
Thank you.
Operator
Thank you. Next question comes from the line of Muskaan Agarwal with Swan Investments. Please go ahead.
Muskaan Agarwal
Hi sir, good morning. Actually can you explain in detail the inventory problem that you highlighted for Intune?
Kavindra Mishra
Okay, so. Hi Muskan. I will try and give the overall sense and then maybe Dewan can detail it further. So when we were, when we were launching Intune I think we had a very, very, very aggressive plan and we were looking at close to 100 stores launch and then we, you know, but because of the soft demand we actually decided to fix that piece first. But what that ensured was that we had of inventory which got accumulated. Once the inventory gets accumulated and because the, because the promise of any product business is freshness, I think that’s where we started getting hit.
So we actually did two things last and which we did actually one big thing which was very different from last year was we took an accelerated inventory provision and we ensured that. Okay, let can we increase. Ensure that we are able to liquidity inventory as much as possible. When we started the year we were sitting at around 100 crores of inventory in Intune which for the number of stores I think was a little bit too much. We have been able to reduce it to 60. So this is the, this is just to give you a sense of the overall picture.
Maybe Devang can add on how this inventory will be able to turn around his business and the throughputs.
Devang Parikh
Thank you Kavi. I think the inventory problem that we spoke of was largely stabilized to one season which is autumn into 24 over and above the soft performance that Kavi spoke about. Prior to spring summer 25 we were launching every two months. It’s only from spring summer 25 that we started launching on a weekly basis. So combining the 34 months buying period for outright private label fashion with the two month drop we kind of had a chunk which was pre committed on a bigger base than what we realized.
So all throughout the last quarter we are just trying to get rid of the excess from autumn, winter, 24, from spring onwards, the excesses are not in place because we aligned our buying with the throughput that we were seeing. And I think we’ve seen the worst of it. I think going forward the inventory problem is solved to a large extent and is not likely to resurface.
Operator
Mr. Agarwal, are you done with your question?
Muskaan Agarwal
No. No. So actually also wanted to ask like what could be the reason that like apart from this inventory problem that you guys are not able to perform well in the value fashion segment whereas other players are succeeding in the same.
Devang Parikh
I think you know what we mentioned a few minutes back. The value fashion business is very dependent on consistent freshness being delivered to the customers. The freshness is a function of the right profile of inventory and not being choked with old inventory. Since we had old inventory, we were not able to fresh launch freshness as much as we wanted which is affecting our top line KPIs which stands solved. And you know Kavi also mentioned in his opening remarks that the spring summer season will see the stores full of freshness.
So we should see that cycle come back. Also keep in mind that we are practically in the second full year of operations. So there is some bit of learning that we take as a business and we course correct. So maybe as we go from this year to the start of FY27 again, what Kavi said, we will see a lot more stability in terms of business. Thank you.
Muskaan Agarwal
And what is the conversion ratio for intune and Capex per square feet?
Devang Parikh
Conversion stands around 18%.
Muskaan Agarwal
And inventory? Inventory per square feet. Sorry.
Unidentified Participant
We don’t measure inventory per square feet. The capex is 1600 per square feet.
Muskaan Agarwal
Okay, sure. Thank you.
Kavindra Mishra
Inventory, you can. Inventory, you can broadly take it as 6,1700 rupees per square feet.
Muskaan Agarwal
Okay. Yeah, thanks.
Operator
Thank you. Next question comes from the line of Gaurav Gandhi with Glorytail Capital Management. Please go ahead.
Gaurav Gandhi
Yeah, thanks for the opportunity, sir. Two things I want to understand while visiting Shopper Stop stores, of course, excluding the flagship ones. Still a lot of stores are not feeling as much premium as we feel while entering in stores of our competitors. And the second observation is of course are we curating our private brands in serious, proper, better manner as we are unable to understand how are we moving there and assortment there. So shouldn’t we be more moving, you know, faster, more aggressive or more agile in terms of changing our store looks, pushing private brands?
Your thoughts on this.
Kavindra Mishra
Thanks, Gaurav. So I think first you need to little bit detail to me that what is it that you are comparing us with because it will give me a sense to answer your observation or to address your observation. Otherwise, on an average we do five to seven stores. We renovate every year. And I think as we renovate the old stores and as we open the new stores, you will see the premium version only. So I think that we are very clear. It’s a function of what store comes when in the cycle. Right. So again, I don’t know which store you’re comparing us with.
So I cannot comment on that. On the other part, which is of the private brands part, obviously private brands needs to be better. In fact, both in our investor deck and in our call last time we spoke about ensuring that the premium, that private brands become more and more premium. So just to give you a sense, we have just launched Fratini Girls as a premium kidswear brand as a part of our private brand. So I think that’s something which will now move to 60 stores. So I think this is something which we’ll keep on doing.
Now if you are comparing a Juhu or a Tapasya store which we have, they are the flagships. But otherwise you will see Mallard come Mallard and Mallard like stores coming in lot of the stores which are renovating now. So I mean you are right in terms of agility. But I think there’s a five to seven store which we look at as. As every year and we’ll keep on innovating it. And all the new stores as you open, they will be premium months. Right. But I would love to maybe offline have a chat with you that what is the feedback of the stores where you went to and which, which you feel the competitor brands and maybe off time we can have a chat on that to understand your point of view as well.
Gaurav Gandhi
Sure, sir, I’ll get back on. Thank you.
Operator
Thank you. Next question comes from the line of Karan Gupta with Akmil, please.
Karan Gupta
Yeah, hi. So my question is regarding the strategy behind rationalizing the store sizes and now opening the stores in bigger size. So what is that? As all the peers in retail segment, I mean it’s a normal practice for them that they are closing down some of the stores and then rationalizing in terms of size and increasing the store size.
Operator
Mr. Gupta, please come in the range and talk. There’s a lot of disturbance and even your voice is muffled.
Karan Gupta
Yeah, now it’s clear.
Operator
Okay.
Karan Gupta
So just a simple question. The strategy behind rationalizing the store sizes and opening up in the bigger size.
Kavindra Mishra
And maybe if you can mute because there’s a Lot of background noise. Then I will be able to address this query of yours. So yes, you are right. I think we decided to open smaller stores and when we opened the compact size store we realized that lot of categories are not getting fit into the business. And also the throughputs which we are getting from those kind of stores didn’t make any sense because we ended up typically having stores which are 18 to 20 crores of revenue for us. Which doesn’t make sense because the effort which needs to drive a store is same whether it’s 30,000 square feet 20 or a 40.
Right. So that is one second as a business I think the two pegs on which we want to drive our business is premiumization and experience. For both the cases if I talk about premarition, you need to give the right kind of space to each of the brand to express themselves well. If I talk about experiences, you need to have a kids, you need to have a proper personal shopper lounge because that’s a strategic direction from our side and that’s what we really want to work on, a gaming zone. If you want to do all these things, give brands a size then between 35 to 40,000 is what is the sweet spot for us.
We are not in the game of opening too many stores at 18, 20 crores of business. We are in the game of opening few stores but the store should be 50 crores plus. So I think as we move into that strategy we are very, very clear that this is what we want today. Do a lot of retailers and a lot of brands actually by the way are shutting the smaller stores and opening bigger stores and the best brands in the country simply because you need to do that and I’m talking about premium brands here, you need to do that because you want to give a better experience to the customer.
And the better experience cannot come through clogging the, you know, the aisles and making very, very short stores. You don’t have, you can’t give give the customer the proper departmental store experiences. And we have realized that to our great this thing that that’s always a problem.
Karan Gupta
So does that mean in your new stores which is the bigger in size? We can see the inventory per square feet will be the same but it will be in the bigger size to the customers.
Operator
Your voice is not clear. Can you come in the range and talk and can you speak a little louder?
Karan Gupta
Hello. Hello.
Kavindra Mishra
Yes. Yes Karan, we can hear you. Yes,
Karan Gupta
Yes. Yeah, yeah, yeah. So, so can we expect in the new stores in which is bigger in size, the inventory per square feet will be the same
Kavindra Mishra
Or
Karan Gupta
It will increase. Because you are saying that we are giving more experience kind of thing to the customer like play area, playground area and all this.
Kavindra Mishra
What kind
Karan Gupta
Of customer you are focusing on because you have luxury brands also. You have value fashion also. So these all brands are putting enough store or it will be different kind of thing.
Kavindra Mishra
Okay, let me address both the points. One is the inventory per square feet in a premium concept goes down, it doesn’t go up. So that is the first point. The second point is 75 to 80% of the inventory which is in SOR. So I don’t think having a larger store and having a larger inventory is detrimental for us in any way. Especially because we lose the KPI of recovery. I think that is very clear. And yes, you are right. As you put more and more experience zones you need to have lesser number of brands in that you see in Juhu or a Mallard or the new stores which you are opening.
That’s the third point. I think the fourth thing is for us the customer base which we have is actually the customer base which is the first citizen. It’s a customer base which is for a more premium and premium place kind of a thing. And to give you a sense we don’t keep value fashion products in our store. Store intune is a brand which has its own store. So we don’t see value fashion as a business as a concept with us.
Karan Gupta
Okay, thank you. Thank you very much.
Operator
Thank you. Next question comes from the line of Harsh Shah with Pandan amc. Please go ahead.
Harsh Shah
Hi, are you sure that the intune’s inventory per second square feet is Rupees 600? Mr.
Operator
Sharp, sorry for interrupting. Can you speak a little louder?
Harsh Shah
Hi, am I audible now?
Operator
Yes, better than before. Please go ahead.
Harsh Shah
I mean I. Are you sure that the intune’s inventory. Per square feet is rupees 600?
Unidentified Participant
1700. 1700. Not 600. That’s what we said.
Harsh Shah
Okay. Okay. Sure. Thank you.
Operator
Thank you. Next question comes from the line of Raheel s with Sapphire Capital. Please go ahead. Your voice is muffled.
Raheel s
Am I audible?
Operator
Yes, please go ahead.
Raheel s
Is this better?
Operator
Yes, please go ahead.
Raheel s
Yes. Hi, good afternoon. So just now how has been quarter four so far and you know, overall for FY26 then what can one expect when it comes to revenue and ebitda margins?
Unidentified Participant
Q4 Bit early to say but the first 20 days, that is till yesterday have been quite decent. Particularly in the south markets where we have Shankranti. It performed quite well. The sales growth we expect in single digit Rahim and the EBITDA margins would be close to in the low single digits. That’s what we expect by the end of this quarter. 4.
Unidentified Participant
The
Raheel s
Sales growth in single digits is for quarter four as well or. Overall 526
Unidentified Participant
Sorry, what is the sales.
Raheel s
The sales growth you mentioned which you expect to be in single digits is for the last quarter or the for overall for the year.
Unidentified Participant
For the Q4 as well as for the entire year. As
Raheel s
For the entire year and EBITDA also in single digits expect for the last quarter. Yeah,
Unidentified Participant
That’s right.
Raheel s
Okay, so what sort of improvement you see in the next year with the kind of double digit mid single sorry mid teens growth expecting in the EBITDA and what will drive it?
Unidentified Participant
Number of things. Right. I think Kavish spoke in detail. 1 the premiumization what we are working on right now plus the number of marketing campaigns, what we had and the growth what we are getting it from the marketing campaigns. Third beauty the global essence beauty. I think again Kabir spoke we are already touching a run rate of 500 and we have been growing more than 50%. So those growth should improve TB the private brand. Whatever that happened in Q2 that will not. I mean we are working on to improve the overall efficiency in private brand.
And intune again Debong spoke in detail and Kavi also spoke in detail in tune. We expect the losses to be at minimum it will come down by 50% and if not more than that. So there are a number of growth levers we are working on and that’s the reason we have said that the sales growth to be in mid teens and the EBITDA margin should also improve next year.
Raheel s
Okay, Got it sir. Thank you for repeating that and all the best to you.
Unidentified Participant
Thank you.
Operator
Thank you. On behalf of Shopperstops Ltd. That concludes this conference. Thank you for joining us. You may now disconnect your lines.
Unidentified Participant
Thank you.