Spencer's Retail Ltd. (SPENCERS) AI Stock Analysis

• Market Cap: ₹2.89B
• Dividend Yield: N/A
• Average Volume (3M): 7.14K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.07
• Revenue Growth: -21.05%
• EPS Growth: 8.16%
• Country: IN
• Employees: 3,312
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Department Stores
• EPS (TTM): -6.47
• Shares Outstanding: 90,132,010
• 10 Day Avg. Volume: 4,598
• 30 Day Avg. Volume: 7,140
• PEG Ratio: 0.32
• Price to Book (P/B): -0.90
• Price to Sales (P/S): 0.30
• P/FCF Ratio: 38.54
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: ₹37.00 ▼(-10.67% Downside)
• Action: Upgraded Date: 01/29/26
• Date: Action: Upgraded 01/29/26

The score is weighed down primarily by weak financial performance (losses, declining revenue, and negative equity indicating elevated balance-sheet risk), reinforced by bearish technical signals (price below major moving averages and negative MACD). Valuation is hard to support with a negative P/E and no dividend yield data provided.

Positive Factors

Grocery & essentials retail model

A grocery and essentials retail model generates frequent, recurring purchases and steady footfall, supporting predictable sales and inventory turnover. Over 2–6 months this durable demand reduces revenue volatility versus discretionary retail and underpins core cash generation potential.

Improving operating and free cash flow

Improving operating and free cash flow indicates the company is beginning to convert sales into usable cash, reducing short-term liquidity pressure and reliance on external funding. Sustained cash-flow improvement over months supports debt servicing and targeted investment to stabilize operations.

Positive gross profit margin

A positive gross margin shows the firm retains markup after procurement, reflecting purchasing or pricing strength. This structural margin is a base to rebuild operating profitability via cost controls, private-label expansion or better category mix over several months.

Negative Factors

Negative shareholders' equity

Negative equity is a material solvency concern that limits financial flexibility and raises refinancing risk. Over the medium term it constrains ability to raise equity, increases creditor scrutiny, and can force asset sales or restructuring if cash flows do not sustainably improve.

Material revenue decline

A ~16.6% revenue decline erodes scale benefits, reduces supplier negotiating power, and pressures fixed-cost absorption. If this trend persists across months it will make margin recovery harder and increase the need for structural changes to merchandising or store economics.

Negative operating margins and losses

Persistent negative EBIT/EBITDA and net losses indicate ongoing operational inefficiency or cost structure misalignment. Over 2–6 months continued losses deplete cash buffers, necessitate external funding, and limit reinvestment in stores or supply chain improvements.

Spencer's Retail Ltd. Business Overview & Revenue Model

Company Description

Spencer's Retail Limited, together with its subsidiaries, engages in developing, conducting, investing, and promoting organized retail business in India. It operates departmental and neighborhood stores under various formats, as well as hypermarkets. The company offers products in various categories, such as groceries, fresh products, general merchandise, personal care products, apparel and accessories, consumer durables, and other lifestyle products. It provides its products under the own brands, including Smart Choice, Tasty Wonders, Clean Home, and Maroon, as well as under the various private brands, such as 2Bme, Healthy Alternatives, Hands on, and Inscapes. In addition, the company engages in the online retail business. As of March 31, 2022, it operated 154 stores. The company was formerly known as RP-SG Retail Limited and changed its name to Spencer's Retail Limited in December 2018. Spencer's Retail Limited was founded in 1863 and is headquartered in Kolkata, India.

How the Company Makes Money

Spencer's Retail Ltd. generates revenue primarily through the sale of consumer goods in its stores. Key revenue streams include sales from grocery items, apparel, electronics, and home essentials. The company benefits from its extensive supply chain and partnerships with various brands, allowing it to offer a wide range of products at competitive prices. Additionally, Spencer's engages in promotional activities and loyalty programs to drive customer retention and increase sales volume. E-commerce initiatives also contribute to revenue, as the company continues to expand its online presence to cater to the growing demand for digital shopping experiences.

Spencer's Retail Ltd. Financial Statement Overview

Summary

Weak fundamentals: declining revenue and ongoing losses with negative EBIT/EBITDA margins. Balance sheet risk is elevated due to negative shareholders’ equity and high leverage, partially offset by modest improvement in operating and free cash flow.

Income Statement

Spencer's Retail Ltd. has faced declining revenue over the years, with a negative net profit margin indicating consistent losses. Although the gross profit margin remains positive, the EBIT and EBITDA margins are negative, reflecting operational challenges and profitability concerns.

Balance Sheet

The company has a negative stockholders' equity, indicating financial distress and high leverage. The debt-to-equity ratio is concerning due to negative equity, and the company’s assets are mostly funded by liabilities, posing significant financial risk.

Cash Flow

Operating cash flow has improved but remains relatively low compared to net income, indicating challenges in generating cash. The free cash flow has shown some improvement recently, suggesting a better cash management strategy despite overall financial struggles.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	18.63B	19.95B	23.45B	24.53B	23.00B	24.28B
Gross Profit	2.52B	3.90B	4.27B	4.50B	3.62B	3.98B
EBITDA	355.15M	602.61M	139.56M	361.55M	1.01B	532.63M
Net Income	-2.65B	-2.46B	-2.66B	-2.10B	-1.21B	-1.64B
Balance Sheet
Total Assets	0.00	13.10B	16.96B	16.29B	15.65B	15.59B
Cash, Cash Equivalents and Short-Term Investments	257.81M	284.58M	314.58M	333.78M	388.58M	577.48M
Total Debt	0.00	15.71B	16.22B	13.41B	10.69B	9.44B
Total Liabilities	6.62B	19.71B	21.12B	17.80B	15.03B	13.73B
Stockholders Equity	-6.62B	-6.62B	-4.16B	-1.50B	618.57M	1.86B
Cash Flow
Free Cash Flow	0.00	154.16M	-5.48M	5.96M	298.31M	-252.67M
Operating Cash Flow	0.00	374.14M	350.83M	267.40M	546.02M	-24.28M
Investing Cash Flow	0.00	-202.40M	112.55M	-256.10M	-401.61M	-182.92M
Financing Cash Flow	0.00	-269.41M	-280.47M	-48.14M	-544.96M	-33.43M

Spencer's Retail Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 41.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SPENCERS, the sentiment is Negative. The current price of 41.42 is above the 20-day moving average (MA) of 35.39, above the 50-day MA of 37.05, and below the 200-day MA of 51.27, indicating a bearish trend. The MACD of -1.37 indicates Positive momentum. The RSI at 33.45 is Neutral, neither overbought nor oversold. The STOCH value of 24.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SPENCERS.

Spencer's Retail Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CANTABIL	70 Outperform	₹21.58B	13.08	―	0.39%	19.90%	27.94%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
VMART	60 Neutral	₹43.76B	16.14	―	―	16.45%	―
SHOPERSTOP	59 Neutral	₹32.13B	65.70	―	―	8.80%	9.81%
ABFRL	48 Neutral	₹80.21B	-15.34	―	―	-32.83%	31.19%
SPENCERS	41 Neutral	₹2.89B	-1.59	―	―	-21.05%	8.16%

Spencer's Retail Ltd. Corporate Events

Spencer’s Retail Ensures Regulatory Compliance with SEBI Certificate Submission

Spencer’s Retail Limited has submitted a certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018 for November 2025. This submission, certified by their Registrar and Share Transfer Agent, MUFG Intime India Private Limited, ensures compliance with regulatory requirements, reflecting the company’s commitment to maintaining transparency and adherence to financial regulations, which could positively impact its market credibility.