Synopsis

SS Retail shares extended gains after a bumper debut, rising over 6% following a 50.73% listing premium on the BSE. With the stock trading at around 46.5x FY26 P/E, Swastika Investmart maintained a Neutral view, citing demanding valuations and limited margin of safety despite strong growth and profitability.

Incorporated in June 2016, SS Retail Ltd. is a multi-brand retail chain offering mobile phones, accessories and consumer electronics

Shares of newly listed SS Retail extended their gains to trade over 6% higher at Rs 677 after making a strong debut in the stock market. The shares listed at a premium of nearly 51% over the IPO issue price of Rs 424 apiece.

On Wednesday, SS Retail shares debuted at Rs 639.10 on the BSE, marking a 50.73% premium to the issue price. On the NSE, the stock listed at Rs 624, translating into a 47.17% premium over the IPO price.

The listing surpassed unlisted market expectations, which had suggested a debut gain of up to 35%. The stock was seen commanding a grey market premium (GMP) of around 35% ahead of the listing.

Shivani Nyati, Head of Research at Swastika Investmart, said SS Retail made a strong debut, supported by strong ROE/ROCE and its asset-light COFO model. However, at around 46.5x FY26 P/E, valuations appear demanding, while its higher exposure to lower-margin mobile hardware limits direct comparison with peers. “Given the strong listing and limited margin of safety at current valuations, our post-listing view is Neutral. Investors can wait for some consolidation before taking fresh positions, while existing investors may consider holding with a stop-loss of Rs 575–585,” she added.

The IPO opened for subscription on September 16 and closed on September 18, receiving an overwhelming overall subscription of 103.30 times. The qualified institutional buyers (QIBs) portion was subscribed 203.61 times, while the non-institutional investors (NIIs) portion saw 143.32 times subscription. The retail portion was subscribed 36.36 times.

SS Retail Ltd. recorded a 47% increase in total income, rising from Rs 1,600 crore in FY25 to Rs 2,353 crore in FY26, reflecting strong year-on-year growth.

The company’s profit after tax (PAT) increased by 49%, from Rs 40 crore in FY25 to Rs 59 crore in FY26, indicating improved profitability during the year.

The Company proposes to utilise the Net Proceeds of the Issue towards funding capital expenditure for fit-outs of new stores planned for FY2027 and FY2028, with an estimated allocation of Rs 12.45 crore.

The Company also intends to use Rs 241.35 crore towards part-funding its incremental working capital requirements, with the balance proceeds allocated towards General Corporate Purposes. The total estimated utilisation of the Net Proceeds is Rs 253.80 crore.

Incorporated in June 2016, SS Retail Ltd. is a multi-brand retail chain offering mobile phones, accessories and consumer electronics across Maharashtra, Karnataka, Madhya Pradesh, Goa and Gujarat. The Company primarily targets Tier II, Tier III and smaller cities.

As of March 31, 2026, it operated 503 stores across 215 cities, covering approximately 2,41,365 sq. ft., under its brands SS Mobile, Mobile Exchange Wala and The Mobile Space. The network expanded to 536 stores covering 2,60,597 sq. ft. as of July 31, 2026.

Disclaimer: This article has been written by Veer Sharma, who is not a SEBI-registered Research Analyst or an Investment Adviser. Veer Sharma and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.

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