Electronics Mart India Ltd H1 FY27 Revenue Rises 30% to ₹4,319 Crore

Electronics Mart India Limited reported 30% year-on-year H1 FY27 revenue growth to ₹4,319 crore, while EBITDA nearly doubled to ₹369 crore and profit after tax rose 326% to ₹161 crore. The retailer said category demand shifted between quarters, with air conditioners driving Q1 and mobile phones leading Q2, while margins improved across the half year.

What did EMIL report for Q2 and H1 FY27?

EMIL reported Q2 FY27 revenue from operations of ₹1,900 crore, up 19% year-on-year from ₹1,591 crore. Retail sales increased 19% to ₹1,807 crore, while gross profit rose 31% to ₹293 crore from ₹224 crore. Gross margin expanded by 130 basis points to 15.4% during the quarter.

Operating performance improved faster than revenue in Q2. EBITDA increased 61% to ₹131 crore from ₹81 crore, and the EBITDA margin rose 180 basis points to 6.9%. Profit after tax increased 149% to ₹40 crore from ₹16 crore, with the PAT margin improving to 2.1% from 1.0%.

For the first half, revenue reached ₹4,319 crore and EBITDA was ₹369 crore, producing an EBITDA margin of 8.6%, up 280 basis points year-on-year. PAT rose to ₹161 crore from ₹38 crore in H1 FY26. The company filed its unaudited results for the quarter and half year ended 30 September 2026 and held its earnings call on 5 November 2026.

Why did EMIL's margins improve in the first half?

EMIL said price increases across product categories supported its H1 performance. Its chief financial officer said the company could liquidate inventory procured at older and lower prices after frequent price hikes. Management quantified this benefit at roughly 150 basis points in Q1 and about 30 basis points in Q2.

The company does not expect the same pricing-led benefit in the second half. Management said it would seek to maintain blended gross margins of around 15%, rather than assume a repeat of the inventory-related uplift. This qualification is important because the reported H1 gross-margin gains included a factor that management considers unlikely to recur at the same level.

Q2 also showed that the operating margin held up despite a greater contribution from mobile phones, a category that led product revenue during the quarter. Chief Executive Officer Karan Bajaj said the 6.9% EBITDA margin reflected the company’s premium positioning and cost discipline, and indicated that margins were not dependent on a single category or season.

How did product demand change between Q1 and Q2?

EMIL's growth mix changed materially between the two quarters of H1 FY27. Q1 was led by air conditioners after an extended summer lifted sales, and large appliances accounted for 48% of revenue in that quarter. The company described this as a category-specific demand driver rather than a uniform increase across all products.

In Q2, mobile phones accounted for 53% of product revenue and became the principal growth category. Management said festive trading had started in line with its expectations. It also said discounting remained at normal levels and that the company did not need additional discounting to support sales.

This shift in mix matters for investors because it demonstrates that first-half growth came from different product groups in different periods. The company’s Q2 margin expansion occurred even with a mobile-heavy sales mix, although the call did not provide category-wise profitability figures or a precise full-year revenue target.

What do EMIL's cash flow and working-capital figures show?

EMIL generated operating cash flow of ₹384 crore in H1 FY27 on a post-Ind AS 116 basis, up 41% year-on-year. On a pre-Ind AS 116 basis, operating cash flow was ₹304 crore, compared with ₹202 crore a year earlier. Management said it expects approximately ₹600 crore of full-year operating cash flow on a pre-Ind AS 116 basis.

Working-capital days were 61 as of 30 September 2026, compared with 77 days a year earlier and 73 days at 31 March 2026. The company said working capital rose from the June-quarter level because it built inventory ahead of the festive season. Total equity stood at ₹1,787 crore, while trailing-12-month return on capital employed was 18.5% and return on equity was 12.9%.

The lower year-on-year working-capital days and higher operating cash flow provide context for the reported earnings growth. At the same time, inventory levels and cash conversion during the festive period remain relevant operating measures because management has linked the seasonal inventory build-up to its second-quarter working-capital position.

Conclusion

EMIL's H1 FY27 results combined 30% revenue growth with substantially faster increases in EBITDA and PAT. Pricing benefits on older inventory, category-led demand and improved operating margins supported the first-half outcome, while Q2 maintained margin expansion despite mobile phones becoming the largest product-revenue contributor.

The next key disclosure is the company’s second-half performance against its stated aim of maintaining blended gross margins around 15% and generating around ₹600 crore of pre-Ind AS 116 operating cash flow for the full year. Investors will also watch festive-season sales, inventory movement and working-capital days as EMIL converts the H1 momentum into full-year results.