Detailed Narrative
Q4 and FY26 Financial Performance Overview
Electronics Mart reported strong Q4 FY26 results with revenue growing 15% YoY to ₹1,913 crores, and EBITDA increasing 20% YoY to ₹129 crores, resulting in an EBITDA margin of 6.7%. PAT for the quarter grew approximately 49% to ₹40 crores. For the full year FY26, revenue increased 7% to ₹7,183 crores, with EBITDA at ₹438 crores (6.1% margin) and PAT at ₹107 crores. The company also achieved a Same-Store Sales Growth (SSSG) of 12.2% in Q4 FY26 and 5.3% for the full year.
Store Expansion and New Market Entry Strategy
In Q4 FY26, the company added 4 new stores, bringing the total count to 223. For FY27, Electronics Mart plans to add approximately 20 new stores, including 7-8 in Delhi NCR and a similar number in the South. A strategic entry into the Eastern market is planned with 5-7 stores in Calcutta by the end of Q2 or beginning of Q3 FY27, aiming to capitalize on the Durga Puja, Dussehra, and Diwali festive periods. The average capex per new store is estimated at ₹3-4 crores.
Category Performance and ASP Trends
Demand remained robust across all categories, with large appliances benefiting from GST reduction and festive tailwinds. Washing machines showed strong double-digit growth, and panels grew 13%. Mobile phones recorded a 28% growth in Q4 FY26, supported by major new launches. Average Selling Prices (ASPs) are generally increasing across categories, driven by factors like star rating upgrades, larger screen sizes (e.g., shift from 55-inch to 65-inch TVs), and premiumization in accessories, contributing to higher revenue per unit.
Profitability and Margin Improvement Drivers
The company experienced meaningful operating leverage, leading to improved operating margins. Mature stores demonstrated a healthy EBITDA margin of approximately 7.3%, while newer stores (less than 4 years old) operated at 3.1%. Management expects many of these newer stores to mature over the next couple of years, contributing to better overall margins. The South cluster maintained a healthy EBITDA margin of 6.5%, and the NCR region became EBITDA positive for the full year.
Capital Allocation and Working Capital Management
Electronics Mart generated a pre-Ind AS cash flow from operations of ₹299 crores in FY26. The company's working capital requirement has significantly reduced, and cash flows have been prudently deployed to further reduce working capital. Management anticipates further improvements in working capital cycles by the end of Q1 FY27. Real estate investments for new stores in Calcutta are projected at up to ₹50 crores for FY27 and up to ₹100 crores over the next 12-14 months.
Delhi Market Performance and Future Outlook
The Delhi NCR region, which generated ₹585 crores in FY26, achieved EBITDA positive status for the full year. Management targets a revenue of over ₹800 crores for FY27, representing a 25-30% growth from the current base. The EBITDA margin for the Delhi cluster (Pre Ind AS) is expected to improve significantly from an implied 0.2-0.3% to 2.5-3% in FY27, with further improvement to 3-4% higher than current by FY28 as the market stabilizes and store throughput improves.