Summary
Electronics Mart India Limited - Q3 FY 2026 Earnings Call Summary Monday, February 09, 2026, 04:00 P.M. IST
Event Participants
Executives 2 Karan Bajaj (CEO and Promoter), Premchand Devarakonda (CFO)
Analysts 5 Aditya Bhartia, Ankit Kedia, Awais Bakshi, Devanshu Bansal, Siddarth S.
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue | ₹1,939.7 crores | +8% YoY; Driven by festive demand and GST rate cut tailwinds. |
| EBITDA | ₹119 crores | +17% YoY; Improved operating leverage despite new store additions. |
| EBITDA Margin | 6.1% | +50 bps YoY; Pre-Ind AS EBITDA margin stood at 4.2%. |
| PAT | ₹30 crores | Reported figure includes exceptional items for the quarter. |
| SSSG | 2.54% | Positive growth aided by broad-based recovery in key clusters. |
| Working Capital | 60 days | Management noted proactive inventory build-up for the summer season. |
| Store Count | 219 stores | Added 4 stores in Q3 (2 in NCR, 2 in AP); ~50% of portfolio is < 2 years old. |
| ROCE | 11% | Annualized for 9MFY26; impacted by high capital intensity of new stores. |
Geographic & Segment Commentary
- Hyderabad Cluster: Revenue grew 6.4% YoY with an SSSG of 3.3%. Performance was supported by a revival in local real estate projects and increased attachment rates in mobile and audio accessories.
- Andhra Pradesh: Reported strong recovery with 18.2% revenue growth and 4.9% SSSG. Management noted significant market share gains in this region during the quarter.
- NCR Cluster: Revenue surged 30% YoY with 7.1% SSSG. The cluster reached EBITDA breakeven on a 9-month basis (₹2 crores profit) despite a weak previous summer season.
- Large Appliances: Contributed 42% of Q3 revenue. GST reductions led to a consumer shift toward premium products like large-screen TVs and front-loading washing machines (+11% growth).
- Mobiles: Contributed 44% of total revenue with 10% YoY growth. Management expects the next growth phase to be driven by AI-enabled device upgrades.
Company-Specific & Strategic Commentary
- Store Portfolio Maturity: Only 83 out of 219 stores are >4 years old. Mature stores operate at 7% EBITDA margins vs 3% for new stores, representing a major margin expansion lever as the network ages.
- Inventory Strategy: Stocked ~250,000 AC units (50% new BEE rating) in anticipation of a strong summer. Management is cautious to avoid the excessive carry-over risks seen in FY25.
- Expansion Strategy: Plans to venture into new geographies like Odisha or Western UP by Q2/Q3 FY27. Most upcoming stores will follow a rental model to optimize capital allocation.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue Growth | Double-digit growth | Targeted for FY27 contingent on a normal-to-harsh summer season. |
| Store Expansion | ~10 more stores | Expected by early FY27, focusing on existing clusters before new geography entry. |
| Profitability | Improving Margins | Expected as 136 “young” stores move up the maturity curve and fixed costs are absorbed. |
| Delhi Market | Profitable in FY27 | Management expects the NCR cluster to be fully profitable on an annual basis in FY27. |
Risks & Constraints
| Risk | Context |
|---|---|
| Seasonal Dependence | Significant reliance on summer cooling product sales (ACs, coolers). A mild summer or unseasonal rains (as seen in FY25) severely impacts throughput and inventory aging. |
| Profitability Drag | High depreciation and finance costs from the rapid addition of 100 stores over 2 years. Newer stores currently earn 400 bps lower EBITDA margins than mature ones. |
| Credit Underwriting | Potential slowdown in NBFC approval rates post-festive periods. However, management expects easing underwriting for high-ticket cooling products in Q1. |
Q&A Highlights
Demand Trends & Seasonality
- Question: What is the outlook for the upcoming summer given the poor base last year? (Aditya Bhartia)
- Answer: Management is highly optimistic as the base for cooling products in Feb-March last year was low (₹350cr total). January already showed positive uptrend trends (Karan Bajaj).
Cluster Economics
- Question: When will Delhi reach company-level margins? (Ankit Kedia)
- Answer: The first 6-8 stores opened in 2022 are performing in line with expectations. Full cluster profitability depends on the upcoming summer throughput to absorb high depreciation/interest from owned properties (Karan Bajaj).
Inventory & Pricing
- Question: How are the new BEE ratings affecting pricing and old stock? (Awais Bakshi)
- Answer: Price differential is minimal (1-2%). Stock transition is underway; by mid-March, stores will be 100% new rating, with only ~20k old units remaining (Karan Bajaj).
Promoter Confidence
- Question: Why not perform creeping acquisitions given the stock price is at ₹100? (Nimish Shah)
- Answer: The promoter family owns 65% and all capital is deployed in the core business. Management will evaluate a “token” purchase to signal confidence before Q1 FY27 results (Karan Bajaj).
Key Takeaway
Electronics Mart India Limited delivered a steady Q3 FY26 with 8% revenue growth and 17% EBITDA growth, benefiting from a 25% festive-to-festive growth surge and GST tailwinds in the television segment. While the rapid expansion of nearly 100 stores in two years continues to weigh on net profitability due to high depreciation and interest (Ind AS 116), the core mature portfolio maintains a healthy 7% EBITDA margin. Geographically, the NCR cluster has reached a milestone 9-month EBITDA breakeven, and the Andhra Pradesh market showed a robust 18% recovery. Management remains optimistic about FY27, targeting double-digit growth driven by a normalized summer season and the maturation of younger stores. Success remains highly sensitive to the upcoming Q1 summer cooling cycle and the successful entry into new markets like Odisha and Western UP.
Want more insights like this?
Subscribe to get deep dives delivered to your inbox.
More Earnings Summaries
Explore more Q3 FY26 earnings call analyses: