Electronics Mart India Limited: Q4 FY26 shows strong SSSG, while NCR ramps up

Electronics Mart India Limited closed Q4 FY26 with a sharp pick-up in growth and a clear narrative around operating leverage. Revenue from operations for the quarter rose to INR1,913 crore, up 15% year on year. EBITDA increased to INR129 crore, up 20%, as the company benefited from better throughput and fixed-cost absorption. Profit after tax was INR40 crore, up 49%, although management noted that PAT included an exceptional charge linked to the reversal impact of labour code.

For the full year, FY26 revenue reached INR7,183 crore, up 7%. EBITDA was INR438 crore, and PAT was INR107 crore. The company disclosed that FY26 PAT included exceptional impacts, including a gain on disposal of assets related to the transfer of IQ retail stores and the labour code impact. As a result, PAT comparisons across years require care, but the broader operating trend remains anchored in store expansion, cluster scaling, and gradual margin normalization.

Growth was broad-based, with mobiles and large appliances driving the mix

The company’s sales mix stayed broadly stable. In Q4 FY26, mobiles contributed 45% of revenue, large appliances 42%, and small appliances, IT and others 13%. For FY26, mobiles were 44%, large appliances 43%, and the remaining categories 13%. Management stated that demand was robust across categories, with large appliances supported by GST reduction and festive consumption tailwinds. The company also highlighted strong momentum in mobile phones, where Q4 growth was supported by new launches.

Same store sales growth was a key positive. Q4 FY26 SSSG was reported at 12.1%, while FY26 SSSG stood at 5.3%. This indicates that growth was not only from new store additions but also from healthier throughput in existing stores.

Store maturity explains the margin dispersion

A major disclosure in the investor presentation was the split between mature and non-mature stores. The company operated 223 stores, and management clarified on the call that 83 stores were older than four years, while 140 were under four years old. Mature stores delivered an EBITDA margin of about 7.3% in FY26, while non-mature stores were at 3.1%.

This mix matters because a large part of the network is still in the ramp-up phase. The presentation explicitly stated that profitability should improve as more stores mature and unlock higher throughput and operating leverage.

Cluster performance: South remains strong, NCR is stabilizing

The regional picture remains the core investment question for EMIL. The investor presentation showed South cluster store-level EBITDA margin of 6.5% in FY26. The North cluster, which is largely NCR-led, was reported at 0.3% margin in FY26 at the store level. Management acknowledged that NCR is a structurally tougher market, with higher competitive intensity and different cost structures.

However, management also stated that NCR operations are EBITDA positive on a full-year basis and that margins should improve as throughput increases and fixed costs get absorbed better. In the Q&A, management discussed a target of around INR800 crore plus revenue in NCR for FY27, compared to about INR585 crore in FY26. They also indicated an expectation that pre Ind AS EBITDA margin in NCR could move to about 2.5% to 3% in FY27 from around 0.2% to 0.3%.

Cash flow improved sharply, with working capital discipline

One of the strongest data points in FY26 was cash flow. The company reported net cash from operating activities of INR443.7 crore in FY26 versus INR175.8 crore in FY25. It also highlighted inventory and working capital discipline as a structural priority. Working capital days were reported at 73 days as of March 2026, with inventory days at 73, receivable days at 3, and creditor days at 3.

Management stated that working capital requirements have come down and reiterated that supply chain and inventory management will remain a key focus area in FY27, specifically with the goal of cash flow generation and working capital efficiency.

Expansion remains active, with a measured pace and a new market under evaluation

On store additions, management indicated an organic plan of around 12 to 15 stores in FY27, with 7 to 8 stores expected in Delhi NCR and a similar number in the South. The company emphasized it will deepen presence in existing clusters while being selective on new geographies.

Kolkata was discussed as a potential new cluster. Management noted that any new market typically needs about 12 to 14 months after launch for practical learning and operational tuning, even when pre-launch research is done. On capital deployment, management also discussed potential real estate investment in the new market, indicating it would not expect more than about INR50 crore in real estate investments there in the current financial year, and possibly up to INR100 crore over the next 12 to 14 months.

Takeaways: operating leverage story intact, NCR execution remains the key variable

EMIL’s Q4 FY26 performance reflects a familiar pattern for a scaling retailer. Core clusters in the South are delivering stable store-level margins and consistent throughput. A large portion of the store base is still non-mature, which explains the current margin drag and also provides a path for improvement as stores age.

The next phase hinges on execution in NCR and the discipline with which the company approaches any new cluster such as Kolkata. Management’s commentary suggests confidence that NCR is past the initial stabilization phase, with an explicit focus on higher growth and better margins in FY27. Alongside that, the sharp improvement in FY26 operating cash flow provides a meaningful buffer to fund expansion while maintaining balance sheet resilience.