SS Retail H1 FY27 revenue rises 73%, net profit doubles

SS Retail Limited increased revenue from operations by 73% to Rs 1,729 crore in H1 FY27, while net profit rose 102% to Rs 52 crore and profit after tax margin expanded by 43 basis points to 3.0%. The half-year result coincided with 38.0% same-store sales growth and a 149-store increase to 574 stores.

How did SS Retail perform in H1 FY27?

SS Retail delivered revenue growth of 73% and net-profit growth of 102% in H1 FY27. Revenue from operations rose from Rs 1,001 crore in H1 FY26 to Rs 1,729 crore, while net profit, or profit after tax (PAT), increased from Rs 26 crore to Rs 52 crore.

Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 73% to Rs 97 crore from Rs 56 crore. Gross profit rose 81% to Rs 220 crore from Rs 121 crore, and profit before tax (PBT) increased 88% to Rs 68 crore from Rs 36 crore, making PAT the fastest-growing reported profit measure.

SS Retail’s Q2 FY27 revenue was Rs 940 crore, compared with Rs 503 crore in Q2 FY26, an increase of 87%. Quarterly EBITDA rose 99% to Rs 52 crore and Q2 net profit rose 160% to Rs 28 crore from Rs 11 crore.

What changed in SS Retail’s margins and costs?

SS Retail’s PAT margin improved to 3.0% in H1 FY27 from 2.6% in H1 FY26, a rise of 43 basis points, where 100 basis points equal one percentage point. PBT margin increased to 3.9% from 3.6%, while gross margin rose 61 basis points to 12.7% from 12.1%.

EBITDA margin was 5.6% in both half-years, with the detailed performance table showing a one-basis-point increase. In Q2 FY27, gross margin increased 71 basis points to 12.7%, EBITDA margin rose 35 basis points to 5.6%, and PAT margin increased 84 basis points to 3.0%.

Cost of goods sold increased 72% to Rs 1,509 crore in H1 FY27 from Rs 880 crore, slightly below the 73% rise in revenue. Employee benefit expenses grew 64% to Rs 29 crore, other expenses rose 98% to Rs 94 crore, depreciation increased 35% to Rs 18 crore, and interest rose 71% to Rs 12 crore.

What operational measures supported SS Retail’s sales growth?

SS Retail reported same-store sales growth of 38.0% in H1 FY27, compared with 10.5% in H1 FY26. Management attributed Q2 FY27 performance to same-store sales growth, network expansion and an improving product mix, alongside record-high quarterly revenue, EBITDA and PAT.

The store network increased by 149 stores, or 35%, to 574 in H1 FY27 from 425 in H1 FY26. Retail footprint grew 27% to 279,982 square feet from 219,933 square feet, meaning store-count growth exceeded the expansion in total retail area.

Average selling price rose 33% to Rs 34,050 in H1 FY27 from Rs 25,530 in H1 FY26. Mobiles remained 86.0% of product mix, down from 86.8%, while pre-owned products increased to 7.3% from 6.5%; television, laptop and tablet products stayed at 1.7% and accessories and other products at 5.0%.

Maharashtra accounted for 92% of H1 FY27 geographic mix, down from 94% a year earlier, while non-Maharashtra increased to 8% from 6%. Management’s stated vision is to extend its market playbook across geographies and deepen its presence in Tier 2 and beyond markets.

What do SS Retail’s balance sheet and cash flow show?

SS Retail’s total assets increased to Rs 1,186 crore at September 2026 from Rs 575 crore at March 2026. Inventory rose to Rs 583 crore from Rs 322 crore, current borrowings increased to Rs 267 crore from Rs 161 crore, and trade payables rose to Rs 92 crore from Rs 44 crore.

Total equity increased to Rs 626 crore at September 2026 from Rs 231 crore at March 2026. Cash and cash equivalents were Rs 99 crore, compared with Rs 28 crore at March 2026, while other bank balances rose to Rs 136 crore from Rs 2 crore.

Net cash used in operating activities was Rs 211 crore in the six months to September 2026, compared with Rs 47 crore used in the six months to September 2025. Operating profit before working-capital changes increased to Rs 98 crore from Rs 56 crore, but working-capital changes were an outflow of Rs 295 crore, compared with Rs 95 crore a year earlier.

What is SS Retail targeting after H1 FY27?

SS Retail is targeting 750 stores by FY28, according to Managing Director Siddharth Shah. With 574 stores reported in H1 FY27, the target is 176 stores above the current network, and management said continued expansion and disciplined execution would support the plan.

Management is also targeting a doubling of revenue from the FY26 base over the next two years. It said higher store productivity, operating leverage and operating efficiencies are expected to support EBITDA-margin expansion and stronger PAT margins, but the presentation does not state a rupee revenue target or a specified margin target.

SS Retail operates through company-owned company-operated, company-owned franchise-operated and franchise-owned franchise-operated formats. In FY26, company-owned franchise-operated stores contributed 71% of revenue and 63% of stores, while franchise-owned franchise-operated stores contributed 8% of revenue and 20.5% of stores.

Conclusion

SS Retail’s H1 FY27 outcome combined a 73% increase in revenue to Rs 1,729 crore with a 102% rise in net profit to Rs 52 crore. Same-store sales growth of 38.0%, a 35% increase in stores, and a 61-basis-point improvement in gross margin accompanied the PAT-margin increase to 3.0%, while EBITDA margin remained at 5.6%.

The next disclosed measures to watch are progress toward 750 stores by FY28 and management’s objective to double revenue from the FY26 base over two years. The presentation also shows a Rs 295 crore working-capital outflow in the six months to September 2026, alongside inventory of Rs 583 crore and current borrowings of Rs 267 crore at September 2026.