Shares of SS Retail surged by nearly 20% on Wednesday, hitting a high of Rs 828.30 on the BSE, following the company's robust maiden earnings announcement since its listing. The mobile retailer reported significant year-on-year growth for the June quarter (Q1 FY27), exciting investors.
Strong Financial Performance Fuels Investor Confidence
SS Retail posted revenue of Rs 789.7 crore for Q1 FY27, marking a substantial 59% increase compared to the previous year. Profit after tax (PAT) also saw a remarkable rise, climbing 61% to Rs 23.8 crore. The company highlighted that its Same-Store Sales Growth (SSG) stood at 34% in Q1 FY27, indicating strong underlying demand and healthy organic expansion across its existing store network.
Ambitious Expansion Plans Underway
Further underscoring its growth trajectory, SS Retail added 33 new stores during Q1 FY27, expanding its total retail footprint to 536 stores across five Indian states. This network now covers a cumulative retail area of 2.8 lakh sq. ft.
Siddharth Shah, Founder, Chairman & MD at SS Retail, expressed enthusiasm about the results. "Our first results announcement since listing marks an exciting new chapter for SS Retail, with record-high revenue, EBITDA and PAT, growing 59 per cent, 51 per cent and 61 per cent YoY, respectively," Shah stated. He added that building on this strong performance, the company aims to reach 750 stores by FY28 and achieve a twofold revenue growth over its FY26 base, capitalizing on India's significant organized mobile retail opportunity.
Post-Listing Rally Continues
SS Retail made its stock market debut on September 23 with an initial public offering (IPO) price of Rs 424. The latest surge means the stock has rallied an impressive 88.10% over its IPO price. At the time of reporting, the stock was trading 15.09% higher at Rs 797.55.
Analyst Outlook
Ravi Singh, Chief Research Officer at Master Capital Services, commented, "Long-term investors may still find the underlying business relevant, with growth in organised retail, changing consumer preferences and expansion of the company's retail presence potentially supporting growth over the coming years."
Kranthi Bathini, Equity Strategist at WealthMills Securities, offered a nuanced view: "Those who have invested for listing-day gains can consider booking some profits in the market debutant. That said, those with a long-term view can stay invested."