Electronics Mart India Limited — Q3 FY26 earnings call

Call held 9 Feb 2026

Management summary

Electronics Mart India delivered a strong Q3 FY26, with revenue growing 8% to INR 1,939.7 crores and EBITDA increasing 17% to INR 119 crores, driven by festive demand and GST rate cuts. While mature stores maintained a 7% EBITDA margin, the profitability was impacted by 136 newer stores (less than 4 years old) operating at a 3% margin. The company is optimistic about the upcoming summer season and plans further store expansion and entry into new geographies like Odisha and Western UP in FY27.

Highlights

  • Q3 FY26 Revenue grew 8% YoY to INR 1,939.7 crores, up from INR 1,805 crores in Q3 FY25.

  • Q3 FY26 EBITDA grew 17% YoY to INR 119 crores, up from INR 102 crores in Q3 FY25.

  • Q3 FY26 EBITDA margin improved to 6.1% from 5.6% in the prior year.

  • Robust growth of approximately 25% was delivered on a festival-to-festival comparison.

  • NCR cluster showed strong performance with 30% revenue growth and 7.1% SSG in Q3 FY26.

Concerns

  • Up country Telangana SSG was weaker, with only a marginal 2% revenue increase including new stores.

  • 136 out of 219 stores are less than 4 years old, leading to higher fixed costs and lower throughput impacting overall profitability.

  • Newer stores are currently operating at an EBITDA margin of 3%, significantly lower than the 7% margin of mature stores.

Key financials

2 periods

Headline

  • Revenue
    ₹1,939.7 Cr
    YoY +8%
  • EBITDA
    ₹119 Cr
    YoY +17%
  • EBITDA Margin
    6.1%
  • PAT (incl. exceptional items)
    ₹30 Cr
  • SSSG
    2.5%
  • ROCE (annualized)
    11%
  • ROE (annualized)
    5.8%
  • Working Capital Days
    60 days

9M

  • FY26 Revenue
    ₹5,270 Cr
    YoY +4%
  • FY26 EBITDA
    ₹311 Cr
  • FY26 EBITDA Margin
    5.9%
  • FY26 PAT (incl. exceptional items)
    ₹67 Cr
  • FY26 SSSG
    19%
  • Pre-Ind AS Cash Flow from Operations
    ₹500 Cr

What they filed

Q1 FY27: revenue up 39.1%, net profit up 450.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue1,335 1,805 1,664 1,739 1,591 +19%1,940 +7%1,913 +15%2,419 +39%
EBITDA82 102 107 110 82 +0%118 +16%129 +21%239 +117%
Net profit23 34 27 22 16 −30%30 −12%40 +48%121 +450%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Store Maturity (EBITDA Margin)
    7% Mature Stores (>4 years)3% Newer Stores (<4 years)
  • Store Maturity (9M FY26 Revenue)
    ₹3,523 Cr Mature Stores₹1,528 Cr Newer Stores
  • Geographical Performance (Q3 FY26)
    6.4% Hyderabad Revenue Growth3.3% Hyderabad SSG2% Telangana Up Country Revenue Growth18.2% Andhra Pradesh Revenue Growth4.9% Andhra Pradesh SSG30% NCR Revenue Growth7.1% NCR SSG
  • NCR Operations (9M FY26)
    50% EBITDA Margin₹2 Cr EBITDA
  • Category Contribution (Q3 FY26)
    42% Large Appliances Revenue Share44% Mobile Revenue Share10% Mobile Phone Segment Growth

Capital allocation

medium confidence
  • Capex Capex disclosed
    • New store additions in Q3 FY26
    • Capital investment in buying property in Delhi
    During Q3 FY '26, we added 4 new stores, 2 in NCR region and 2 in Andhra Pradesh. ... we did a lot of capital investment in buying a property there.
  • Debt Debt disclosed
    finance costs and depreciation remain elevated, partly due to Ind AS 116 adjustment.
  • Liquidity Liquidity disclosed Money raised from IPO is still lying with the company.
    the money that we've raised is still lying with us.

Guidance & targets

Store Expansion

  • New Store Additions Store Expansion · FY26 · High confidence around 30 stores
    So the overall expansion plan that we had is in line with around, say, 20-odd stores that we opened up this year. Another 10 probably will add up in the next couple of months.

    — Karan Bajaj

New Geography Expansion

  • New Geography Entry New Geography Expansion · after Q1 FY27 · High confidence Odisha, Western UP, or other new markets
    And as we stick to our plan of further expansion into a new territory, that probably after the Q1FY'27 is when we would venture out into the new geography that we are currently looking into, could be Odisha, could be Western UP, and some of the newer markets that we're exploring right now.

    — Karan Bajaj

Profitability

  • Delhi Market Profitability Profitability · FY27 · High confidence Profitable
    We will definitely see a profitable FY '27 in Delhi.

    — Karan Bajaj

  • Delhi Market Profitability (Improved Margin) Profitability · by Q2 FY27 · Medium confidence Numbers going up in terms of profitability
    And hopefully, by Q2 FY '27, we should see that numbers going up in terms of profitability from that region.

    — Karan Bajaj

Business Growth

  • Business Growth Rate Business Growth · going forward (if summer goes well) · Medium confidence Double-digit growth
    So just to summarize, so FY '27 ideally, if summer goes well, should see return of double-digit growth in the business side? Hopefully. Hopefully.

    — Karan Bajaj

What to watch in Q4 FY26

Summer Season AC Sales Performance

Q4 FY26 / Q1 FY27 (upcoming summer season)
Current Optimistic outlook, inventory stocked (250,000 units, 50% new BEE-rated)
Target Strong sales growth, especially for ACs and cooling products

Why it matters

AC sales are a significant seasonal driver; performance will indicate demand strength and impact overall revenue/profitability.

I think the coming summer quarters are going to be good. So no complaints of that. We're already ready for it.

Risks & concerns

  • Slowdown in up country Telangana SSG

    medium

    SSG in up country Telangana was weaker, attributed to overall market sentiment, but January showed positive signs.

    Analyst acknowledged

  • Impact of new stores on overall profitability

    medium

    A significant portion of the network is young, leading to higher fixed costs and lower throughput, impacting short-term profitability.

    Management acknowledged

  • Potential for a cooler summer impacting AC sales

    medium

    Management is optimistic about AC sales due to low penetration, new BEE ratings, and mitigation through EMI offers/cashbacks, despite concerns about weather.

    Analyst downplayed

  • RAM price hike impacting electronics pricing and sales

    low

    Management does not foresee a drastic change in OEM pricing, and any nominal increase would be mitigated by brand offers.

    Analyst downplayed

  • Higher inventory levels and competitive intensity

    low

    Increased inventory is planned for the upcoming season and GST cut, with caution exercised to avoid excessive pile-up.

    Analyst acknowledged

Q&A highlights

7 direct
SSG growth in up country Telangana Direct
If you look at the overall sentiment of the market, it is a little weaker compared to the other clusters that we're operating in today. So I would attribute that de-growth to that. But if you look at overall number, there was a good positive sign in January as well in that cluster.

Highlights a regional slowdown in SSG but management expects recovery in Q4, attributing it to market sentiment.

Asked by Aditya Bhartia

Demand trends in January and outlook for North/South clusters Direct
So things look good for now, no complaints. I think we have finished the bad quarter that we had in the last financial year. And I think we're only looking for the positive upside coming in the coming quarters, especially with the AC base being or the cooling product base being quite low in the last quarter the last few quarters, I think the coming summer quarters are going to be good.

Management expresses optimism for the upcoming summer season, particularly for AC sales, after a challenging period.

Asked by Aditya Bhartia

Impact of credit scrutiny on sales and future expansion plans Direct
usually, every year, after the 2 big seasons of festival and the summer season, we would see a little slowdown in approval rate from the NBFCs. That is a normal trend in the industry. So definitely, after Diwali, we did see that trend going a little slower. But then usually once like the Christmas days always starts off well.

Explains the cyclical nature of NBFC credit approval rates and confirms a post-Diwali slowdown, with an expectation of recovery for the summer season. Also outlines near-term and long-term expansion plans.

Asked by Siddarth S.

Impact of potentially cooler summer on AC sales and RAM price hike on electronics Direct
We don't need to look at 70%, 80% kind of a jump, right? So we are still optimistic on the category because the penetration is still very low. The new rating has also come in. We don't see a drastic increase in pricing from the AC brand. It is a nominal price increase, and that would get mitigated with the EMI offers and the cash backs that the brands provide during the summer period.

Management addresses concerns about external factors like weather and component prices, outlining strategies to mitigate impacts and maintaining an optimistic outlook for AC sales.

Asked by Siddarth S.

NBFC partners for EMI financing Direct
The NBFCs that are prevalent in our industry in consumer durables are Bajaj Finserv, they are the biggest players. So our share or any retailer share is in line with what they are as market leaders, number 1. Number 2 would be IDFC, then would be HDB, ICICI and TVS Finance, especially for mobile phones in a few of the markets.

Provides insight into the company's key financing partners, which is crucial for understanding the credit sales ecosystem.

Asked by Siddarth S.

AC inventory levels and new BEE norms Direct
in terms of units, we are around 250,000 units ready for the summer season... Almost 50% of this inventory is the newer rating.

Gives specific inventory numbers and clarifies the mix of new BEE-compliant products, indicating readiness for the summer season.

Asked by Awais Bakshi

Promoter shareholding and potential creeping acquisition Direct
I can definitely pick up a stake back to give the confidence to the market. And if time permits, I will definitely take in once we finish a couple of more investor rounds -- investor meetings in the coming months, I would definitely take a call. And much sooner than that, probably before the end of quarter one results, we would definitely have positive views on this as well.

Addresses a sensitive topic about promoter confidence and potential future actions to support share price, indicating a possible buyback or stake increase before Q1 FY27 results.

Asked by Nimish Shah

3 min read 6 chapters

Detailed narrative

Q3 FY26 Financial Performance Highlights

Electronics Mart India reported a strong Q3 FY26, with revenue growing 8% year-on-year to INR 1,939.7 crores, up from INR 1,805 crores in Q3 FY25. EBITDA increased by 17% to INR 119 crores, compared to INR 102 crores in the previous year, leading to an EBITDA margin expansion to 6.1% from 5.6%. PAT for the quarter, including exceptional items, stood at INR 30 crores, and same-store sales growth (SSSG) was 2.54%. For the nine months ended December 31, 2025, revenue reached INR 5,270 crores, an increase of 4% YoY, with an EBITDA margin of 5.9% and PAT of INR 67 crores.

Store Portfolio Dynamics and Profitability

The company's store network comprises 219 stores, with 136 being less than four years old, indicating a relatively young portfolio. These newer stores are still maturing, impacting overall profitability due to higher fixed costs and lower throughput. Mature stores (over 4 years old) demonstrated a strong EBITDA margin of 7%, contributing approximately INR 3,523 crores to 9MFY26 revenue. In contrast, newer stores currently operate at a 3% EBITDA margin, contributing around INR 1,528 crores to 9MFY26 revenue. Management anticipates improved operating leverage and profitability as these newer stores mature.

Geographical and Category-Specific Performance

In Q3 FY26, Hyderabad, the core market, recorded a 6.4% revenue growth and 3.3% SSSG, benefiting from a revival in real estate projects. Andhra Pradesh showed robust performance with 18.2% revenue growth and 4.9% SSSG. The NCR cluster continued its strong scale-up, achieving 30% revenue growth and 7.1% SSSG, and was EBITDA positive on a nine-month basis with a 0.5% margin (INR 2 crores). Category-wise, large appliances accounted for 42% of Q3 revenue, while mobile phones contributed 44%, with the mobile segment growing approximately 10%.

Expansion Strategy and Future Outlook

Electronics Mart added 4 new stores in Q3 FY26 and plans to add another 5-6 stores by March 2026, bringing the total new stores for FY26 to around 30. The company intends to expand into new geographies such as Odisha or Western UP after Q1 FY27. Management expressed optimism for the upcoming summer season, expecting strong AC sales due to low penetration and new BEE ratings. Any nominal price increases are expected to be mitigated by EMI offers and cashbacks from brands.

Credit Environment and Inventory Management

The company noted a typical post-Diwali slowdown in NBFC approval rates but expects higher approval rates for the upcoming summer season. Key NBFC partners include Bajaj Finserv, IDFC, HDB, ICICI, and TVS Finance. For the summer season, Electronics Mart has stocked approximately 250,000 AC units, with nearly 50% being newer BEE-rated models. The company is cautiously managing inventory levels to avoid risks associated with excessive stock experienced in FY25, particularly for cooling products.

Promoter Confidence and Shareholder Value

Addressing analyst inquiries regarding promoter confidence, management confirmed that 65% of the company is still owned by the promoters. The CEO indicated that a decision on increasing promoter stake or initiating a buyback would be considered before the end of Q1 FY27 results. This potential action aims to demonstrate confidence in the company's future prospects and provide a positive signal to the market, utilizing funds raised from the IPO that are still available.

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