Interest and depreciation keep Spencer’s in a Rs 60.45 cr loss
Management cited 18% year-on-year growth and tighter costs, but Rs 46.43 cr of interest outweighed the Rs 7.56 cr operating profit.
Filed 13 Aug 2026, 15:28 IST · SPENCERS (SPENCERS)
Key takeaways
- Spencer’s reported a consolidated net loss of Rs 60.45 cr as interest of Rs 46.43 cr and depreciation of Rs 23.45 cr outweighed operating profit of Rs 7.56 cr.
- Management said the business grew 18% year-on-year, while the reported operating margin was 1.61%.
- The company’s tax charge was almost nil at Rs -0.04 cr, so the quarterly loss largely reflects operating and financing costs rather than taxation.
Operating profit did not cover financing and depreciation
Spencer’s reported consolidated revenue of Rs 469.47 cr and operating profit of Rs 7.56 cr for Q1FY27. Interest of Rs 46.43 cr and depreciation of Rs 23.45 cr drove profit before tax to a loss of Rs 60.49 cr. Other income of Rs 1.81 cr was not enough to offset those charges.
Cost control supported EBITDA, but the reported margin stayed low
Management said operating expenses were reduced, supporting EBITDA growth both quarter-on-quarter and year-on-year. It also described the business as delivering 18% year-on-year growth with steady margins. The presentation separately cited an 18.2% margin after adjusting for membership, while the reported operating margin was 1.61%; the two figures include different treatments.
Management flagged growth initiatives and a weak NB quarter
Management said the company ran a Jamie Oliver Pizzeria collaboration and Chef’s Table experiences with premium partners during the quarter. It also said localized content and Bandra-focused influencer activity were used to improve store awareness and local visibility. The company flagged year-on-year de-growth in NB, while saying EBITDA improved quarter-on-quarter but remained below last year.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹469 cr |
| Other income | ₹2 cr |
| Expenses | ₹462 cr |
| Operating profit | ₹8 cr |
| Operating margin (%) | 1.61% |
| Interest | ₹46 cr |
| Depreciation | ₹23 cr |
| Profit before tax | ₹-60 cr |
| Tax | ₹-0 cr |
| Net profit | ₹-60 cr |
| EPS (₹) | ₹-6.71 |
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The business reported 18% year-on-year growth, steady margins and tight cost controls that improved EBITDA.
- The business delivered a steady 18.2% margin after adjusting for membership.
- Operating expenses were reduced, supporting EBITDA growth both quarter-on-quarter and year-on-year.
New initiatives
- The company ran a Jamie Oliver Pizzeria collaboration during the quarter.
- The company conducted Chef's Table experiences with premium partners.
- The company used localized content and Bandra-specific influencer activity to drive store awareness and local visibility.
Problems & risks
- NB recorded year-on-year de-growth in Q1.
- EBITDA showed quarter-on-quarter improvement but remained lower than last year.
What to watch
- Whether operating profit can rise above Rs 7.56 cr while interest remains at Rs 46.43 cr.
- Whether the reported operating margin improves from 1.61%.
- Whether NB returns to year-on-year growth and EBITDA moves above its prior-year level.