Spencer's Retail: Q2 FY26 earnings highlight digital growth, margin stability

Spencer's Retail reported 7% quarter-on-quarter consolidated sales growth for Q2 FY26, reaching INR445 crores, despite GST-related supply chain issues and unseasonal rains in September. The company maintained steady margins at 21%, a 20 bps improvement from Q1, and significantly reduced expenses to under INR100 crores from over INR130 crores in Q2 last year. Sales per square foot improved to over INR1,600, up from INR1,200 in the same quarter last year.

The online business, Jiffy, saw impressive growth, with a 30% QoQ increase in revenue to INR52.5 crores, and over 50% YoY growth. Jiffy recorded over 100,000 monthly transacting users and an average of 8,000 orders per day, achieving positive unit economics in August and September. Spencer's is also driving customer stickiness through its My Spencer Rewards loyalty program, which has signed up over 50,000 members, contributing to 20% of sales.

Nature's Basket, the premium gourmet retailer, maintained flat revenues at INR68 crores with stable margins, though its EBITDA was slightly negative. The company is actively migrating Nature's Basket's app to a new platform and driving its Elysium membership program to boost online presence, acknowledging the shift from offline to online consumer behavior in the gourmet segment.