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    Electronics Mart India Q1 FY27 earnings call

    EMIL
    Consumer Services·7 Aug 2026
    Management Summary

    Electronics Mart India Limited reported its strongest quarter to date in Q1 FY27, driven by robust demand for cooling products and effective inventory management. Revenue surged 39% to ₹2,419 crores, with EBITDA and PAT seeing triple-digit growth. The company also significantly improved its working capital, reducing borrowings and days outstanding. Expansion plans for West Bengal are underway, alongside continued focus on existing clusters and customer experience, while acknowledging some temporary margin benefits and regional market variations.

    Highlights

    6

    • Revenue grew by 39% YoY to ₹2,419 crores, indicating robust demand and effective execution.

    • EBITDA increased by 118% YoY to ₹239 crores, with margins expanding to 9.9% from 6.3% in Q1 FY26.

    • Profit After Tax (PAT) saw a significant jump of 458% YoY to ₹121 crores, making it the highest ever quarterly profit.

    • Same-store sales growth (SSSG) was exceptionally strong at 34.2%, reflecting healthy underlying consumer demand.

    • Working capital borrowings reduced drastically to ₹97 crores from ₹658 crores at the beginning of the quarter, improving working capital days to 42.

    • Non-mature stores (less than 4 years old) delivered an 8.1% margin, picking up pace faster than originally modeled.

    Concerns

    3

    • Some gross margin benefits from price increases in categories like laptops and mobile were noted as a 'temporary upside' and not necessarily a permanent increase.

    • The Delhi NCR circuit's SSG was low due to underperformance in cooling products, with the entire North market being negative compared to 2024.

    • Memory chip shortages could pose a challenge, though the company pre-plans purchases to avoid stock-outs for critical SKUs.

    Key financials

    Metrics

    10

    Periods

    2

    Headline

    8
    • Revenue
      ₹2,419 Cr
      YoY+39%
    • Gross Profit
      ₹417 Cr
      YoY+65%
    • Gross Margin
      17.2%
    • EBITDA
      ₹239 Cr
      YoY+118%
    • EBITDA Margin
      9.9%

    TTM

    2
    • ROCE
      20.1%
    • ROE
      11.9%

    Segment breakdown

    South Cluster
    40% Revenue Growth10.9% EBITDA Margin
    North Cluster
    29.0% Revenue Growth4.9% EBITDA Margin
    Andhra Pradesh
    62% Revenue Growth49.1% SSSG
    Telangana Up-country
    48% Revenue Growth40% SSSG
    Hyderabad City
    34% Revenue Growth32.3% SSSG
    Large Appliances
    48% Revenue Mix
    Mobile Phones
    39% Revenue Mix
    List

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    ₹100 crores

    all through internal accruals

    Debt

    Debt disclosed

    Liquidity

    Liquidity disclosed

    Cash flow position is very comfortable, funding expansion through internal accruals.

    Guidance & targets

    15
    CategoryTargetPriority
    Revenue
    Revenue Growth
    18-20%
    		High
    Profitability
    Gross Margin
    15-15.5%
    		High
    Profitability
    EBITDA Margin (Post-Ind AS)
    7.5-8%
    		High
    Interest Cost
    Interest Cost
    INR10 crores less than last year
    		High
    Store Expansion
    New Stores in Kolkata
    5 stores by Diwali, 10-12 stores by Q4 FY27
    		High
    Store Expansion
    Total New Stores in Kolkata
    30 stores
    		High
    Store Expansion
    New Stores in NCR
    8-10 stores
    		High
    Store Expansion
    New Stores in South
    5 stores
    		High
    Store Economics
    Payback Period (South)
    under 10-11 months
    		High
    Store Economics
    Payback Period (North)
    around 16-18 months
    		High
    Store Economics
    Breakeven Period (South)
    30-40 days (under a month)
    		High
    Store Economics
    Breakeven Period (North)
    2-2.5 months
    		High
    Store Economics
    Capex per square foot
    ₹2,500
    		High
    Store Economics
    Inventory per store (10,000 sq ft)
    ₹2 crores (plus/minus ₹10-20 lakhs)
    		High
    Store Economics
    Initial Store Operational Costs
    8-10%
    		High

    What to watch in Q2 FY27

    5

    North Cluster Margin Improvement

    Ongoing, next few years
    Current4.9% EBITDA margin
    TargetTrending towards South cluster benchmark (10.9%)

    Why it matters

    Improvement in North cluster margins is a key driver for overall company profitability and embedded margin improvement.

    As more of our North stores gain vintage and scale, we expect store productivity and margins here to continue trending towards the South cluster benchmark.

    Risks & concerns

    4
    RiskSeverity

    Temporary Gross Margin Uplift

    Gross margin improvement partly due to temporary price increase advantages in certain categories, not necessarily permanent. — Management acknowledged

    medium

    Market Volatility

    Market volatility in terms of price increases could impact the ability to maintain temporary advantages. — Management acknowledged

    medium

    Memory Chip Shortages

    Potential for chip shortages, but management pre-plans purchases to avoid stock-outs for critical SKUs. — Analyst acknowledged

    low

    Seasonality Impact on Revenue

    Revenue is dependent on seasonality, with Q1 being strong due to cooling products and Q4 also expected to be good, but other quarters depend on product mix. — Management acknowledged

    low

    Q&A highlights

    8

    “Sir, I would like to add one more thing here. See, we should compare the gross margins of Q1 of FY25 because the base quarter was one of the bad quarters. So that's why if you compare that, there is no substantial growth. Definitely, there is about 100 bps up in the current quarter. And that was mainly contributed by the cooling product sales as well as the price escalation advantage we got in IT products. So, if the similar trend continues, I think that can be achieved in the next year first quarter as well.”

    Analyst questioned if the significant gross margin improvement was sustainable or temporary, given a weak base and temporary price advantages.

    asked by Devanshu Bansal

    2 min read6 chapters

    Detailed Narrative

    01

    Q1 FY27 Performance Overview

    Electronics Mart India Limited reported its strongest quarter to date in Q1 FY27, with all key metrics moving decisively in the right direction. Revenue grew by 39% year-on-year to ₹2,419 crores. EBITDA increased by 118% to ₹239 crores, achieving a 9.9% margin, up from 6.3% in Q1 FY26. Profit After Tax (PAT) surged by 458% to ₹121 crores, marking the highest ever quarterly profit for the company.

    02

    Category and Cluster Performance

    The summer of 2026 was favorable, with air conditioners having their best quarter yet in terms of volume and value. Large appliances remained the largest contributor at 48% of revenue, while mobile phones contributed 39%. The South cluster delivered 40% revenue growth with a 10.9% EBITDA margin, with Andhra Pradesh growing revenue by 62% and SSSG of 49.1%. The North cluster turned a corner, with revenue growing 29% and EBITDA margin improving to 4.9%.

    03

    Gross Margin Drivers and Outlook

    Gross margins expanded significantly to 17.2% from 14.6% in Q1 FY26, partly driven by higher margins in cooling products and temporary price advantages in categories like laptops and mobile phones due to buying stocks at lower prices. Management noted this price advantage as a temporary upside. For the full year FY27, the company guides for a gross margin of 15% to 15.5% and an EBITDA margin (Post-Ind AS) of 7.5% to 8%.

    04

    Working Capital and Debt Management

    The company demonstrated strong working capital management, reducing working capital days sharply to 42 days as of June 2026, down from 73 days in March 2026. Working capital borrowings were significantly brought down to ₹97 crores from ₹658 crores at the beginning of the quarter. Management emphasized that debt is at its lowest, and all expansion projects are funded through internal accruals, ensuring a comfortable cash flow position.

    05

    Expansion Strategy and Store Rollout

    Electronics Mart India Limited is preparing to enter West Bengal, with plans to open 5 stores by Diwali and 10-12 stores by Q4 FY27, aiming for a total of 30 stores in Kolkata over the next 24 months. The company also plans to open 8-10 stores in NCR and 5 stores in the South during FY27. The expansion strategy is calculated and disciplined, focusing on building density in existing clusters and new markets, with all stores being company-owned and operated.

    06

    Customer Engagement and Market Share

    The company reported strong same-store sales growth (SSSG) of 34.2%. Management highlighted gaining market share, particularly in newer markets like NCR and maturing stores in Andhra Pradesh, with gains ranging from 4% to 12% depending on geography. The influx of new customers due to the strong AC season is expected to drive future purchases of large appliances and mobile phones, which the company will monitor closely.

    This is an AI-generated summary of a publicly available earnings call transcript.