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India's Shoppers Stop said on Thursday its sales for the festive season would beat pre-pandemic levels on demand for gifts as well as occasion and winter wear from the country's affluent, after reporting a 60% jump in quarterly revenue.

High-income, urban consumers have largely shrugged off the impact of high cost of living to refresh their wardrobes and splurge on makeup and fragrances as they venture out to social events and offices more.

Shoppers Stop would report sales growth in the mid- to high-teens percentage range, compared with pre-COVID sales growth levels, with stores in east India outperforming the rest of the country, Chief Executive Officer Venu Nair said in an interview with Reuters.

"It's the first Diwali after COVID where people are able to get out and mingle with their friends and family and that's definitely helping," Nair said.

Indian retailers record a bulk of their sales during the Hindu festival period from late September to early November.

To cash in on what is expected to be a busier-than-normal festive season, Shoppers Stop doubled its purchase of inventory during the second quarter, with expenses climbing 40%.

Net income was 181.4 million rupees, versus a loss of 30.3 million rupees a year earlier, but the profit came in below the average estimate of four analysts polled by Refinitiv.

A jump in customer visits and an increase in customer spending, however, drove revenue of 10.08 billion Indian rupees ($121.35 million).

Shares in the Mumbai-based chain, which have more than doubled this year, closed 3.4% lower at 774.80 rupees.

"We have a positive view on the stock. The correction today could be some booking of profits; in the past three to six months, it has significantly outperformed the market," said Gaurav Dua, head of capital market strategy at Sharekhan. ($1 = 83.0670 Indian rupees)