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

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Spencer's Retail Ltd.

(NSE:SPENCERS)

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Rating:41Neutral

Price Target:INR 20.50▼(-4.96% Downside)

Action:reiterated

Date:10/30/26

The score is primarily weighed down by very weak financial performance (persistent losses, severe margin compression, negative equity with high debt, and sharply negative FY2026 operating/free cash flow). Technicals add further pressure as the stock trades below all key moving averages with negative MACD. Valuation provides limited offset because a negative P/E reflects ongoing losses and there is no indicated dividend yield.

Positive Factors

Essential-goods exposureExposure to grocery and everyday essentials gives Spencer’s participation in recurring consumer needs, while its broad assortment spans packaged, fresh, personal-care and household categories. That breadth can support repeat shopping and basket-building over the medium term.

Negative Factors

Persistent losses and margin pressurePersistent losses and severe margin compression indicate that Spencer’s is not currently converting revenue into sustainable profits. The sharp gross-margin decline reduces resilience against operating costs and makes a durable earnings recovery more difficult without significant improvement in pricing or cost control.

Spencer's Retail Ltd. (SPENCERS) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 1.94B
Dividend Yield: ―
Average Volume (3M): 21.83K
Price to Earnings (P/E): -0.8
Beta (1Y): 2.18
Revenue Growth: -0.49%
EPS Growth: 6.19%
Country: India
Employees: 2,648
Sector: General
Sector Strength: 55
Industry: Department Stores

Spencer's Retail Ltd. Business Overview & Revenue Model

Company Description

Kolkata, India-based Spencer's Retail Limited, founded in 1863, is a key participant in India's organized retail sector. The company, along with its associated entities, is engaged in establishing, managing, investing in, and promoting retail busines...

How the Company Makes Money

Spencer's Retail Ltd. primarily makes money by selling consumer goods through its retail network, earning revenue from the margin between its procurement cost (from manufacturers, brands, and distributors) and the retail prices paid by customers. Key...

Spencer's Retail Ltd. Financial Statement Overview

Summary

Financial profile is highly stressed: recurring net losses with worsening net margin (FY2026 ~-13.9%), sharp gross margin compression (~7.8% vs ~19.6% prior year), and contracting revenue. Balance-sheet risk is elevated with deeply negative equity (~-9.1B) alongside high and rising debt (~19.2B). Cash flow deteriorated materially, with operating cash flow and free cash flow turning sharply negative in FY2026 (about -2.24B and -2.33B), increasing liquidity/refinancing risk.

Income Statement

18Very Negative

Balance Sheet

12Very Negative

Cash Flow

15Very Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	18.54B	18.00B	19.95B	23.45B	24.53B	23.00B
Gross Profit	2.08B	1.41B	3.90B	4.27B	4.50B	3.62B
EBITDA	179.81M	151.52M	602.61M	139.56M	-278.34M	1.01B
Net Income	-2.48B	-2.49B	-2.46B	-2.66B	-2.10B	-1.21B
Balance Sheet
Total Assets	0	13.96B	13.10B	16.96B	16.29B	15.65B
Cash, Cash Equivalents and Short-Term Investments	514.49M	514.49M	284.58M	314.58M	333.78M	388.58M
Total Debt	0	19.19B	15.71B	16.22B	13.41B	10.69B
Total Liabilities	9.13B	23.09B	19.71B	21.12B	17.80B	15.03B
Stockholders Equity	-9.13B	-9.13B	-6.62B	-4.16B	-1.50B	618.57M
Cash Flow
Free Cash Flow	0	-2.33B	154.16M	-5.48M	5.96M	298.31M
Operating Cash Flow	0	-2.24B	374.14M	350.83M	267.40M	546.02M
Investing Cash Flow	0	-84.15M	-202.40M	112.55M	-256.10M	-401.61M
Financing Cash Flow	0	2.56B	-269.41M	-280.47M	-48.14M	-544.96M

Spencer's Retail Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price21.57

Price Trends

50DMA26.57Negative

100DMA30.61Negative

200DMA32.50Negative

Market Momentum

MACD-2.37Negative

RSI44.85Neutral

STOCH68.28Neutral

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 21.57 is below the 20-day moving average (MA) of 22.93, below the 50-day MA of 26.57, and below the 200-day MA of 32.50, indicating a bearish trend. The MACD of -2.37 indicates Negative momentum. The RSI at 44.85 is Neutral, neither overbought nor oversold. The STOCH value of 68.28 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

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:SPENCERS against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:VMART	70Outperform	INR 58.82B	4.48	―	0.13%	19.09%	104.43%
IN:VMM	68Neutral	INR 395.87B	43.96	―	―	17.83%	19.87%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:SHOPERSTOP	55Neutral	INR 40.18B	-349.66	―	―	8.68%	-161.79%
IN:OSIAHYPER	52Neutral	INR 311.45M	1.78	―	―	1.66%	-37.91%
IN:SPENCERS	41Neutral	INR 1.94B	-0.78	―	―	-0.49%	6.19%

* General Sector Average

Performance Comparison

IN:SPENCERS and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:SPENCERS	Spencer's Retail Ltd.	21.57	-28.93	-57.29%
IN:OSIAHYPER	Osia Hyper Retail Limited	1.76	-19.53	-91.73%
IN:SHOPERSTOP	Shoppers Stop Limited	364.60	-136.80	-27.28%
IN:VMART	V-Mart Retail Ltd	739.15	-93.09	-11.18%
IN:VMM	Vishal Mega Mart Ltd.	84.50	-57.90	-40.66%

Spencer's Retail Ltd. Corporate Events

Spencer’s Retail Reiterates SEBI-Mandated Notice on Dematerialisation Window

Oct 4, 2026

Spencer’s Retail has notified stock exchanges that it has again published newspaper advertisements regarding a special window for the transfer and dematerialisation of physical shares, in line with a Securities and Exchange Board of India circu...

Spencer’s Retail Completes AGM Notice Dispatch and Newspaper Publication

Aug 16, 2026

Spencer’s Retail Limited has notified stock exchanges that it has published a public notice in English and Bengali newspapers regarding its upcoming Ninth Annual General Meeting. The company has complied with disclosure norms by circulating thi...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 30, 2026

Spencer's Retail Ltd. AI Stock Analysis

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