Electronics Mart India Ltd

Financial Performance

• Revenue from operations ₹2,419 crore, up 39% YoY.
• Gross profit ₹417 crore, up 65% YoY; gross margin 17.2%.
• EBITDA ₹239 crore; margin 9.9%; YoY EBITDA up 118%.
• PAT ₹121 crore; up 458% YoY.
• SSSG 34.2% for the quarter.
• Working capital days 42 vs 73 in March 2026.
• Pre-Ind AS cash flow from operations ₹631 crore; post-Ind AS ₹671 crore.
• Working capital borrowings reduced to ₹97 crore from ₹658 crore start.

Geography & Segments

• South cluster revenue +40% YoY; EBITDA margin 10.9%.
• North cluster revenue +29% YoY; EBITDA margin 4.9%.
• Andhra Pradesh revenue +62% YoY; SSSG 49.1%.
• Telangana up-country revenue +48%; SSSG 40%.
• Hyderabad city revenue +34%; SSSG 32.3%.
• Mature stores EBITDA margin 11.2%; non-mature 8.1%.

Liquidity and Balance Sheet

• Working capital borrowings reduced to ₹97 crore by end of quarter; ₹658 crore at start.
• Inventory levels described as sufficient to meet near-term needs.
• Pre-Ind AS cash flow from operations ₹631 crore; post-Ind AS ₹671 crore.

Capex and Expansion

• West Bengal entry planned; cluster-based expansion with density-first approach.
• Kolkata 5 stores by Diwali; 10–12 by Mar FY27.
• Total Kolkata/West Bengal target: about 30 stores in 18–24 months.
• Capex for upcoming stores around ₹100 crore; Kolkata property around ₹50 crore.
• NCR openings planned: 8–10 stores in FY27.
• Capex per store ≈ ₹2.5 crore; inventory ≈ ₹2 crore.
• High-end inventory per store ₹0.1–0.2 crore.
• Payback: South ~10–11 months; North ~16–18 months.
• Break-even: South 30–40 days; North 2–2.5 months.

Guidance and Outlook

• FY27 revenue growth guidance: 18–20%.
• Gross margin guidance: 15–15.5%.
• Post-Ind AS EBITDA margin guidance: 7.5–8%.

Q&A Highlights

• Festive period in Q3 FY27 expected to be good; momentum continues.
• FY27 revenue growth target remains 18–20%; base effects acknowledged.
• Market-share gains across geographies range 4–12%; smaller towns show higher gains.
• Online vs offline: physical stores remain important for several categories.
• All stores are company-owned; no franchise model currently.
• Inorganic expansion unlikely; focus remains on profitable stores.

Meeting Details

• Date: 07 August 2026; time not specified.
• Meeting type and mode: group audio conference call, virtual.
• Event: Earnings conference call for Q1 FY2026 unaudited results.

Purpose

• Discuss unaudited Q1 2026 results (quarter ended 30 June 2026).

Additional Notes

• Audio recording of the conference call available on the company's investor website.

Business Overview

• Electronics Mart India is the largest electronics retailer in South India with 227 stores.
• Operations span 6 states across 100+ cities, with MBO and EBO formats.
• North cluster expansion since 2022 aims to mirror South profitability.

Operational Highlights

• Q1 FY27 revenue rose 39% YoY to Rs 2,419 crore.
• Q1 FY27 EBITDA was Rs 238.9 crore with a 9.9% margin.
• Q1 FY27 PAT stood at Rs 120.6 crore, 5.0% margin.
• North cluster margin for Q1 FY27 is 4.9%.
• North cluster has 96 mature stores and 131 non-mature stores.
• Total stores: 227 across 6 states and 100+ cities (220 MBO, 7 EBO).
• 14 central warehouses back inventory; ~80% volumes from OEMs.
• FY26 revenues and profitability show scale benefits; RoCE 19.4% and RoE 12.6%.
• Operating cash flow in FY26 was Rs 443.7 crore; end-FY cash Rs 49.7 crore.

Financial Performance

• FY26 revenue Rs 7,183.3 crore; EBITDA Rs 438.2 crore; PAT Rs 107.1 crore.
• FY26 EBITDA margin 6.1%; PAT margin 1.40%.
• FY26 total assets Rs 3,797.1 crore; total equity Rs 1,626.1 crore.
• Cash from operations Rs 443.7 crore; investing cash Rs -125.4 crore; financing cash Rs -299.1 crore.
• Cash balance at Mar-26 Rs 49.7 crore.

Capital Structure & Liquidity

• Total equity Rs 1,626.1 crore; borrowings: current Rs 692.6 crore; non-current Rs 198.5 crore.
• Current liabilities Rs 921.8 crore; primary components include borrowings, payables, and lease liabilities.

Strategic Priorities & Outlook

• Expand into Western Uttar Pradesh; consolidate NCR; capitalize organized retail shift.
• Improve throughput and fixed-cost absorption; EBITDA margins to normalize over time.
• Inventory optimization and data analytics to improve stock turns and cash conversion.
• Strengthen brand partnerships to accelerate market penetration and product breadth.
• MBO live demos and consultative selling to boost customer conversion.

Governance & Leadership

• Board comprises Chairman & MD Pavan Bajaj; CEO Karan Bajaj; independent directors.

Financial Highlights

• Revenue from operations: Rs 2,419 crore, up 39% YoY.
• Gross profit: Rs 417 crore; gross margin 17.2%.
• EBITDA: Rs 239 crore; EBITDA margin 9.9%.
• PAT: Rs 121 crore; up 458% YoY.
• SSSG: 34.2%.
• North cluster EBITDA margin: 4.9%; South cluster 10.9%.
• Total stores: 227 across 100+ cities after 4 net additions.

Operational & Outlook

• Entering West Bengal as the next expansion step.
• FY27 priorities: working capital efficiency, disciplined expansion, and enhanced customer experience.

Financial highlights

• Board approves unaudited standalone and consolidated results for quarter ended 30 June 2026.
• Standalone total income 24,208.90 million; total expenses 22,588.32 million.
• Standalone PBT 1,620.58 million; PAT 1,206.25 million; EPS 3.14.
• Consolidated total income 24,209.00 million; PAT 1,206.37 million; EPS 3.14.
• Group operates a single reportable segment: retail and wholesale sales of consumer durables and electronics.
• Independent auditor's review report states it did not express an audit opinion.
• Board meeting on 7 August 2026 approved results.
• Notes reference prior-year exceptional items and labour-code impacts; current quarter not affected.

Disposal details

• Target: Electronics Mart India Limited.
• Disclosing Party: Nippon India Mutual Fund (non-promoter).
• Transaction Type: Disposal of voting shares.
• Pre-Transaction Holding: 1,18,95,787 shares (3.0918%).
• Transaction Details: Sold 5,54,085 equity shares (0.1440%), Open Market.
• Post-Transaction Holding: 1,13,41,702 shares (2.9478%).
• Date(s): Sep 27, 2023 to Jul 28, 2026.
• Share Capital Context: Rs 3,84,74,87,620; 38,47,48,762 shares; diluted same.

Meeting Details

• Date and time: 07 August 2026, 4:00 PM IST.
• Mode: virtual group earnings conference call.
• Organizer: Strategic Growth Advisors Pvt. Ltd.
• Event: Q1 FY27 Earnings Conference Call.

Participants

• CEO: Karan Bajaj.
• CFO: Premchand Devarakonda.

Purpose

• Purpose: discuss Q1 FY27 un-audited results.

New store opening

• Commenced commercial operations of a new Multi Brand Store under the Electronics Mart brand.
• Location: 294, Block-J, Basement and Ground Floor, Saket, New Delhi 110017.
• Area: 3,600 square feet.
• Commencement date: 25 July 2026.

Dematerialisation status

• Details of dematerialised/rematerialised securities furnished to all stock exchanges where the shares are listed.