Shoppers Stop share price slumps 12% after Q3 results. Should you buy, sell or hold?

Shoppers Stop share price dropped 12% during Wednesday's trading session following its Q3 earnings report. The retail company reported a significant decline of 69.13% in its consolidated net profit, totaling ₹16.12 crore for the December quarter of FY26, attributing this to factors like a change in the festival time and inconsistent consumption patterns.

Last year, the firm recorded a net profit of ₹52.23 crore during the October-December period, as detailed in a regulatory filing from Shoppers Stop, which is backed by the Raheja family.

In the December quarter, its operational revenue saw a slight increase of 2.63%, reaching ₹1,415.82 crore, compared to ₹1,379.47 crore in the same period last year. Shoppers Stop noted that premium brands accounted for 69% of total sales, showing a "growth of 6% YoY." However, the sales from its "core business amounted to ₹1,516 crore, remaining unchanged YoY," according to the company.

Total expenses for the December quarter of FY26 were ₹1,402.39 crore, reflecting a 5.5% rise from the previous year.

Shoppers Stop's total income, which encompasses other income, totaled ₹1,439.77 crore, marking a 2.7% increase.

The management noted in its earnings commentary that the consumer environment continues to be difficult, with the business during the quarter affected by a change in the festive schedule, inconsistent discretionary spending, and high pollution levels in the National Capital Territory Region (NCR).

Premium brands accounted for 69% of Shoppers Stop's overall sales this quarter, increasing by 6% compared to the previous year, while the beauty segment rose by 14% to ₹395 crore. INTUNE sales increased by 22% from the same period last year, reaching ₹77 crore.

Should you buy, sell or hold ?

According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, Shoppers Stop share price remain under tremendous pressure, continuing to form a clear lower-top, lower-bottom structure.

Bhosale noted that the stock witnessed a gap-down opening today, followed by further weakness, highlighting persistent selling pressure. Until clear signs of reversal emerge, the counter should be avoided. Investors currently holding the stock may use any bounce to exit, as it is likely to remain an underperformer in the near term.

“On the upside, 360–365 is an immediate resistance zone, while 310–300 stands out as the next key support,” said Rajesh.

Anshul Jain, Head of Research at Lakshmishree, explained that Shoppers Stop has unwound sharply after marking a buying climax near 687, confirming exhaustion at elevated levels. The stock has already met its first buying-climax objective around 396, validating the magnitude of distribution. Price action continues to weaken, with selling volumes expanding aggressively, signaling peak liquidation rather than orderly correction.

“As long liquidation persists, the next downside projection opens toward the 300 to 305 zone, with 302 emerging as the next key target. Until volume behavior stabilizes and price starts basing, the trend remains decisively bearish and rallies should be treated as exit opportunities rather than reversal setups,” advised Jain.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.