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

• Market Cap: ₹2.69B
• Dividend Yield: N/A
• Average Volume (3M): 7.14K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.78
• 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: ₹28.00 ▼(-32.40% 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

Operating cash flow improvement

Improved operating cash flow signals better underlying cash conversion and working-capital management. Over 2-6 months this provides more liquidity to fund store operations, modest reinvestment, and reduces immediate external financing needs if the trend is sustained.

Positive gross profit margin

A positive gross margin shows the company retains markup over procurement costs, implying sourcing, merchandising or pricing strength. If maintained, it creates a structural lever to restore profitability by controlling overheads and expanding higher-margin private-label or supplier-funded programs.

Diversified grocery-focused retail model

A supermarket/hypermarket format with broad category exposure reduces reliance on any single product cycle and benefits from recurring household demand. This structural retail model supports steady basket purchases and offers channels for private-label scale and supplier partnerships over time.

Negative Factors

Negative shareholders' equity

Negative shareholders' equity is a durable red flag: it limits access to traditional financing, elevates refinancing and covenant risk, and constrains capital allocation. Without sustained cash generation or capital infusion, this impairs long-term strategic flexibility and survival odds.

Declining revenue trend

A persistent revenue decline signals structural market-share erosion or execution issues. Over months this reduces operating leverage, raises per-unit fixed costs, and undermines the ability to invest in stores, supply chain or marketing needed to reverse the trend and restore scale economics.

Negative operating margins

Negative EBIT/EBITDA margins indicate the core retail operations do not cover operating expenses. This persistent unprofitability pressures cash flow and forces reliance on external capital. It limits funds for store upkeep, growth initiatives, and margin-improvement investments over the medium term.

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 mainly by selling merchandise to end customers through its Spencer’s branded retail outlets (e.g., supermarkets/hypermarkets) and associated retail channels. Its primary revenue stream is retail sales across major product categories such as staples, packaged foods, fresh produce, dairy, beverages, personal care, and household/other consumer goods, with earnings driven by sales volume and the gross margin between procurement cost and selling price. Additional contributors typically include (a) higher-margin private-label/own-brand products where applicable, (b) supplier-funded trade promotions, volume incentives, and marketing/placement support tied to product visibility in stores, and (c) other retail-related income such as service/handling fees or in-store visibility programs when offered. Specific details on material partnerships, the exact split of revenue by channel/category, and the magnitude of non-merchandise income are null.

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: Positive

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 32.17, above the 50-day MA of 34.93, and below the 200-day MA of 49.56, indicating a bearish trend. The MACD of -1.58 indicates Positive momentum. The RSI at 35.14 is Neutral, neither overbought nor oversold. The STOCH value of 9.28 is Positive, 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	₹21.01B	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	₹41.90B	16.14	―	―	16.45%	―
SHOPERSTOP	59 Neutral	₹33.15B	65.70	―	―	8.80%	9.81%
ABFRL	48 Neutral	₹72.01B	-15.34	―	―	-32.83%	31.19%
SPENCERS	41 Neutral	₹2.69B	-1.59	―	―	-21.05%	8.16%

Spencer's Retail Ltd. Corporate Events

Spencer’s Retail Publishes Postal Ballot E-Voting Results for Special Resolution

Spencer’s Retail Limited has disclosed the results of a special resolution conducted via postal ballot through remote e-voting, in compliance with Regulation 44 of SEBI’s Listing Obligations and Disclosure Requirements. The company has submitted the scrutinizer’s report and voting results to the stock exchanges, and has also made these details available on its website, NSDL’s platform, and at its registered office, underscoring adherence to shareholder governance and regulatory transparency.

The postal ballot process was based on a record date of February 6, 2026, covering 50,203 eligible shareholders for voting on the special resolution. While specific voting outcomes or resolution details were not disclosed in the announcement, the formal completion and publication of the ballot results signal procedural progress on corporate decisions that may influence the company’s strategic or operational direction.