Electronics Mart India Limited reported a standalone net profit of ₹121 crore for the quarter ended June 30, 2026, marking a 458% year-on-year increase. The retailer’s revenue from operations rose 39% to ₹2,419 crore, surpassing its full-year FY27 guidance of 15% growth. This performance was driven by robust same-store sales growth (SSSG) of 34.2%, expanded EBITDA margins of 9.9%, and strong air conditioner demand during the summer season. Management now guides for 18% to 20% revenue growth for FY27, citing favorable festive season expectations and new market entries.

The Board of Directors approved the unaudited financial results on August 7, 2026, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Walker Chandio & Co. LLP, the statutory auditor, issued a limited review report confirming compliance with Ind AS 34. Chairman & Managing Director Pavan Kumar Bajaj and CEO Karan Bajaj highlighted that margin expansion resulted from an improved product mix, higher throughput in maturing stores, and temporary pricing advantages in IT products.

Financial Performance Highlights

Revenue from operations stood at ₹2,419 crore, up from ₹1,739 crore in Q1FY26. Gross profit grew 65% year-on-year to ₹417 crore, with gross profit margins expanding to 17.2% from 14.6%. EBITDA reached ₹239 crore, a 118% increase, with EBITDA margins improving to 9.9% from 6.3%. Profit after tax (PAT) surged to ₹121 crore from ₹22 crore in the corresponding quarter of the previous fiscal year.

The product mix consisted of mobiles at 39%, large appliances at 48%, and small appliances, IT, and others at 13%. The company added four new stores during the quarter, bringing its total store count to 227 across 100+ cities. Average ticket size rose 2.0% to ₹23,474, while bill cuts increased by 36.0% to 982,000.

Cluster-Wise Performance and Operational Metrics

The South Cluster continued as a scaled, profitable engine, with revenue growing 40% year-on-year and an EBITDA margin of 10.9%. Andhra Pradesh alone grew revenue 62% YoY with an SSG of 49.1%. The North Cluster also showed improvement, with revenue rising 29% and EBITDA margins increasing to a record 4.9% as more stores matured. CEO Karan Bajaj attributed the overall margin expansion to operating leverage playing out as throughput increased across newer stores.

Operational efficiency was further evidenced by the performance of mature versus non-mature stores. Mature stores (older than four years) contributed ₹1,628 crore in revenue with an EBITDA margin of 11.2%, while non-mature stores generated ₹676 crore with an 8.1% margin. CFO Premchand Devarakonda noted that working capital days reduced sharply to 42 days as of June 2026 compared to 73 days as of March 2026, driven by tight inventory management. Pre-Ind AS operating cash flows were ₹631 crore, and post-Ind AS cash flows were ₹671 crore.

Expansion Strategy and Guidance

Management confirmed plans to enter West Bengal, targeting five operational stores by Diwali and 10 to 12 stores by the end of Q4FY27. For the next 24 months, the company plans to open around 30 stores in Kolkata, funded entirely through internal accruals. Capex for upcoming stores is estimated at ₹100 crore, plus ₹50 crore for property acquisitions in Kolkata. In existing geographies, the company plans to open 25-30 stores annually, including 8-10 stores in NCR this fiscal year.

Regarding full-year guidance, Karan Bajaj stated that 18% to 20% revenue growth is achievable, supported by strong festive season demand and market share gains in organized retail. CFO Premchand Devarakonda guided for a gross margin of 15% to 15.5% for FY27 and post-Ind AS EBITDA margins of 7.5% to 8%. He also indicated that interest costs would be approximately ₹10 crore lower than the previous year’s ₹150 crore, due to reduced working capital borrowings which fell to ₹97 crore from ₹658 crore at the start of the quarter.

What the Numbers Show

The disproportionate growth in net profit relative to revenue highlights significant operational leverage. While revenue grew 39%, PAT surged 458%, suggesting fixed costs are being spread over a larger sales base. The broad-based margin expansion — with gross profit, EBITDA, and net profit margins all improving — indicates effective cost control and a shift towards higher-margin products like cooling appliances. Notably, the revenue growth significantly exceeded the company's own initial FY27 guidance of 15%, reflecting stronger-than-anticipated demand. The maturation of the North Cluster, now contributing positively with a 4.9% EBITDA margin, signals successful replication of the South Cluster's model. Additionally, the sharp reduction in working capital days to 42 demonstrates improved cash conversion efficiency, supporting the company’s strategy of funding expansion through internal accruals rather than debt.

Electronics Mart India Limited reported a robust start to FY27, with standalone net profit rising 48% year-on-year to ₹31.99 crore in the first quarter ended June 30, 2026. Revenue from operations grew 13% to ₹345.92 crore, indicating strong top-line momentum despite a sequential dip from the preceding quarter. The Board of Directors approved the unaudited financial results on August 7, 2026, highlighting improved operational efficiency in the standalone entity.

Consolidated figures presented a contrasting picture, with net profit after tax falling 34% year-on-year to ₹64.09 crore. Total income from operations for the consolidated group remained relatively flat at ₹871.70 crore, compared to ₹862.56 crore in the same period last year. This divergence suggests that while the core electronics retail business gained traction, other segments within the group may have faced headwinds or margin pressures.

Financial Performance Highlights

The standalone segment showed significant improvement in profitability metrics. Earnings per share (EPS) increased to ₹6.44 from ₹4.35 in Q1FY26, reflecting the bottom-line growth. However, on a quarter-on-quarter basis, standalone net profit decreased from ₹38.27 crore in Q4FY26 to ₹31.99 crore in Q1FY27, a trend analysts will monitor closely for sustainability.

Note: Figures converted from Lakhs to Crores for readability. Source: Company filing.

What the Numbers Show

A key analytical observation is the disparity between standalone and consolidated performance. The standalone business, which likely represents the core Electronics Mart India Limited retail operations, delivered strong double-digit growth in both revenue and profit. In contrast, the consolidated group’s net profit fell significantly despite stable revenue. This indicates that non-core subsidiaries or investments may be dragging down overall profitability, warranting closer scrutiny of segment-wise contributions in future disclosures.

The statutory auditors carried out a limited review of the results, which were approved by the Board at its meeting held on August 7, 2026. The results were filed pursuant to Regulation 33 read with Regulation 47(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Newspaper advertisements were published on August 8, 2026, in Business Standard and Surya.