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 item📎s, 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.