The company, which houses products ranging from Vero Moda clothing to Michael Kors watches, said total expenses rose nearly 11%, outpacing a 9% growth in revenue to 12.38 billion rupees.

This led to a contraction in the margin on earnings before interest, tax, depreciation and amortization (EBITDA) to 6.9% from 10.2% a year earlier. The company is set to open 14 stores in the fourth quarter, it said. It currently operates a total of 105 department stores across the country.

Shares of Shoppers Stop closed 1.9% higher ahead of the results. They rose 0.8% in the December quarter.

Peers such as Arvind Fashions, Tata Group-owned Trent and Aditya Birla Fashion and Retail are expected to report quarterly results in February.

($1 = 83.1140 Indian rupees)

(Reporting by Ashna Teresa Britto in Bengaluru; Editing by Sonia Cheema)