Bhatia Communications and Retail FY26: Growth led by store expansion, with Maharashtra emerging as the next leg

Bhatia Communications and Retail India Limited ended FY26 with a sharp step-up in scale. Revenue rose to 595.24 crore in FY26 from 444.68 crore in FY25, a YoY growth of 34 percent. Profitability grew alongside revenue but margins stayed largely steady. EBITDA increased to 28.39 crore from 21.85 crore, while net profit rose to 16.76 crore from 13.82 crore.

The Q4 FY26 quarter reinforced the same trend. Revenue came in at 171.94 crore versus 104.49 crore in Q4 FY25. EBITDA was 7.86 crore and PAT was 4.55 crore. The operating model continued to look volume-driven, with EBITDA margin at 4.77 percent for FY26 versus 4.91 percent in FY25, and PAT margin at 2.82 percent versus 3.11 percent.

An offline-first retailer expanding beyond Gujarat

The company describes itself as a multi-brand retailer of consumer durables and electronics, with a long operating history in mobile sales since 1996 and incorporation in 2008. The presentation positions Bhatia as a dominant player in South and Central Gujarat with a pan-Gujarat presence, while highlighting expansion outside Gujarat into Maharashtra.

Its store network includes multi-brand outlets under brand names such as Bhatia Communication, Bhatia Mobile The One Stop Shop, Only Mobile, and Mobile Station. Alongside multi-brand outlets, the company also manages exclusive brand outlets for various brands. Product categories listed include mobile phones, accessories, tablets, televisions, air conditioners, washing machines, microwaves, laptops, and other electronic equipment.

Store count and footprint are central to the investment narrative. As of FY26, the presentation states 340 stores, with 337 owned and 3 franchise, and a total retail footprint of 2.60 lakh square feet. Average store size is stated at 760 square feet.

FY26 performance snapshot

The company’s financial trajectory over the last several years shows steady scale-up in revenue, EBITDA, and PAT. Revenue from operations increased from 445 crore in FY25 to 595 crore in FY26. EBITDA rose from 22 crore to 28 crore and PAT moved from 14 crore to 17 crore, based on the charts presented.

The presentation also shows a long-term view of margins. EBITDA margins have remained within a narrow band of roughly 3.8 percent to 4.9 percent from FY21 to FY26. PAT margins are similarly steady over time, with FY26 shown at 2.8 percent.

This reinforces that Bhatia’s growth is primarily execution-driven, based on footprint and throughput rather than margin expansion.

Store economics and the Maharashtra growth plan

Bhatia provides specific unit economics for its store rollout. Average capex per store is stated at 8 to 10 lakhs, with average working capital requirement per store at 33 to 35 lakhs. The average monitoring period is shown at 3 to 4 months, and payback period is shown at 12 to 13 months.

The near-term strategic focus highlighted in the presentation is expansion in Maharashtra, where the company opened its first store in FY23. The deck reports Maharashtra store count at 53 by Q4 FY26, with quarterly milestones shown in FY26: 16 stores in Q1, 28 in Q2, 36 in Q3, and 53 in Q4.

It also includes an explicit expectation that Maharashtra store count is expected to reach 100 in FY27E. Management commentary in the presentation adds that the company is targeting semi-urban areas in Maharashtra using the same strategy it deployed in Gujarat, and aims to build a strong foothold in existing districts over the next 2 to 3 years.

This matters because the company’s scale story depends on replicability. In Gujarat, it claims to be a dominant player with a deep store network. Maharashtra is positioned as the next geography where that operating playbook can be repeated.

Working capital and productivity signals to track

The presentation includes a multi-year working capital dashboard. In FY26, inventory days are shown at 55, receivable days at 10, payable days at 4, and the cash conversion cycle at 49 days. While receivable days appear low, payable days are also low, which can keep the cash conversion cycle elevated.

It also claims a net debt free balance sheet with surplus cash on books, and shows debt to equity at 0.03x. These are meaningful disclosures for a company scaling its store base rapidly.

Operational KPIs include total store count and retail footprint growth, along with revenue per square foot and revenue per device. The deck shows retail footprint increasing to 2,60,304 square feet in FY26 from 1,80,120 square feet in FY25. At the same time, revenue per square foot is shown as lower in FY26 than FY25 on the KPI slide, and the slide displays two different FY26 numbers for revenue per square foot. This is a point that would need clarification in future disclosures because it affects how investors judge store productivity.

Overall, FY26 looks like a year of strong topline expansion backed by rapid footprint addition, steady margins, and clear articulation of offline retail advantages such as personal service, after-sales support, and multiple financing options. The next phase depends on whether the Maharashtra rollout sustains productivity and whether working capital stays disciplined as the network scales.