Spencer’s Retail Q2 EBITDA reaches Rs 5.6 crore; PBT loss widens

Spencer’s Retail Limited reported consolidated EBITDA of Rs 5.6 crore in Q2 FY27, versus Rs 20 lakh a year earlier, but its consolidated pre-tax loss widened to Rs 66 crore from Rs 64 crore. Sales grew 4% to Rs 462 crore, while operating expenses fell to Rs 84 crore.

How did Spencer’s Retail’s consolidated Q2 FY27 performance change?

Spencer’s Retail increased consolidated sales by 4% year on year (YoY) to Rs 462 crore in Q2 FY27 from Rs 445 crore in Q2 FY26. Sales were lower than the Rs 469 crore reported in Q1 FY27, while EBITDA declined from Rs 9.4 crore in the preceding quarter to Rs 5.6 crore. The presentation nevertheless reported a 116-basis-point improvement in EBITDA versus Q2 FY26; a basis point is one-hundredth of a percentage point.

Consolidated gross margin was 19.0% in Q2 FY27, compared with 21.0% in Q2 FY26 and 19.8% in Q1 FY27. Operating expenses fell to Rs 84 crore from Rs 97 crore a year earlier and Rs 85 crore in Q1 FY27. The quarter therefore combined higher YoY sales and lower operating expenses with a gross margin below both comparison periods.

The quarter-on-quarter comparison was less favourable on sales and EBITDA. Sales fell by Rs 7 crore from Q1 FY27, and EBITDA fell by Rs 3.8 crore, although operating expenses declined by Rs 1 crore. The presentation provides these consolidated measures for the quarter ended September 30, 2026.

Why did Spencer’s Retail remain loss-making before tax?

The presentation does not disclose why Spencer’s Retail recorded a Rs 66 crore consolidated pre-tax loss despite positive EBITDA of Rs 5.6 crore. The pre-tax loss was Rs 64 crore in Q2 FY26, so the reported loss widened by Rs 2 crore YoY even as EBITDA increased by Rs 5.4 crore from Rs 20 lakh.

The November 5, 2026 presentation does not provide a line-by-line bridge from EBITDA to profit before tax (PBT), nor does it disclose depreciation, finance-cost or tax figures on the cited results pages. It is therefore possible to identify the difference between the Rs 5.6 crore operating measure and the Rs 66 crore PBT loss, but not to assign quantified causes to that difference from this presentation.

The operating and pre-tax measures moved in different directions in Q2 FY27. Consolidated sales rose by Rs 17 crore from Rs 445 crore, while operating expenses fell by Rs 13 crore from Rs 97 crore. However, the PBT loss increased by Rs 2 crore, and the results presentation does not reconcile the change.

Which business drove Spencer’s Retail’s sales growth?

The Spencer’s business drove group sales growth, with sales rising 7.1% YoY in Q2 FY27. Offline sales increased 4%, while online sales rose 31%, according to the presentation. Spencer’s reported sales momentum contrasts with the sales decline at Nature’s Basket.

The Spencer’s standalone business reported sales of Rs 403 crore in the presentation’s Q2 CY label, against Rs 376 crore in Q2 LY, while EBITDA rose to Rs 17 crore from Rs 13 crore. Operating expenses fell to Rs 56 crore from Rs 64 crore. Its reported gross margin was 17.8%, down from 19.6% in Q2 LY.

Spencer’s said the Q2 comparison was not like-for-like because of accounting for membership. The presentation stated that gross margin would have been 19.0% in Q2 CY without the accounting reclassification, compared with 19.2% in Q1 CY on the same basis. At the consolidated level, it also described the Spencer’s margin as steady at about 18%, with the reported level affected by accounting treatment.

How did Nature’s Basket affect Spencer’s Retail’s Q2 results?

Nature’s Basket reduced the group’s operating contribution in Q2 FY27, as sales fell 16.8% YoY to Rs 56.5 crore from Rs 67.9 crore. Its gross margin declined to 23.5% from 27.6%, and its financial EBITDA was a loss of Rs 7 crore, compared with a Rs 60 lakh loss in Q2 FY26.

Nature’s Basket operating expenses increased to Rs 21.4 crore from Rs 20 crore despite the Rs 11.4 crore decline in sales. The segment’s margin fell by 4.1 percentage points, calculated from the reported 27.6% in Q2 FY26 and 23.5% in Q2 FY27. This contrasted with the Spencer’s business, where sales rose 7.1% and Q2 EBITDA reached Rs 16.9 crore.

The segment comparison helps explain why consolidated EBITDA of Rs 5.6 crore was below the Rs 16.9 crore EBITDA disclosed for Spencer’s. The presentation identifies a Rs 7 crore financial EBITDA loss at Nature’s Basket, but does not provide a complete segment-to-consolidated reconciliation for the remaining difference. Consolidated gross margin of 19.0% sat between the reported 17.8% margin for Spencer’s and 23.5% for Nature’s Basket.

What does Jiffy’s customer data show for Spencer’s Retail?

Spencer’s Retail’s Jiffy online segment reported improving customer-experience indicators through Q2 FY27. Order net promoter score (NPS), a customer-loyalty measure, reached +85 from +67 in Q1 FY26. Quarterly customer rating reached 4.64 in Q2 FY27, up from 4.28 six quarters earlier.

Repeat customers generated 80% of Jiffy orders in Q2 FY27, compared with 61% in Q1 FY26. The data sit alongside the 31% YoY online-sales growth reported for the Spencer’s business in Q2 FY27. The presentation does not disclose Jiffy sales, EBITDA or its separate contribution to consolidated revenue of Rs 462 crore.

Jiffy’s order NPS rose in every reported quarter from +67 in Q1 FY26 to +75 in Q2 FY26, +80 in Q3 FY26 and +85 in Q2 FY27. Customer rating similarly rose from 4.28 to 4.64 over the six-quarter period. These measures show reported customer experience and repeat ordering, rather than a separate financial result for Jiffy.

Conclusion

Spencer’s Retail’s Q2 FY27 presentation shows improved operating performance without a return to pre-tax profitability. Consolidated EBITDA rose to Rs 5.6 crore from Rs 20 lakh as sales increased 4% and operating expenses declined by Rs 13 crore, but the PBT loss widened to Rs 66 crore. Growth and lower costs at Spencer’s were accompanied by a Rs 7 crore financial EBITDA loss at Nature’s Basket.

The next reported results can show whether Spencer’s sustains its 7.1% sales growth and 31% online-sales growth while Nature’s Basket stabilises after its 16.8% sales decline and lower 23.5% gross margin. The presentation also leaves unresolved the items between EBITDA and PBT, because it does not provide a reconciliation for the Rs 66 crore pre-tax loss.