Electronics Mart India (EMIL) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 revenue was INR 1,739 crores (₹17,393.90 million), with EBITDA at INR 110 crores and EBITDA margin of 6.3%, reflecting a challenging quarter due to subdued summer demand and a significant decline in cooling product sales.

• PAT for Q1 FY26 was INR 22 crores (₹216.46 million), with a PAT margin of 1.2%-1.3%, impacted by an exceptional inventory loss of INR 8 crores (₹81.72 million) from a fire incident.

• 8 new stores were added in Q1 FY26, expanding the network to 208 stores across 86 cities, with 44 new stores in the last 12 months.

• Profitability was maintained through a diversified product portfolio and agile inventory management despite weather challenges.

Financial highlights

• Revenue declined 10% year-over-year; like-for-like sales growth was negative 18% year-over-year.

• Gross margin was 14.6%, down from 15.6% in Q1 FY25; EBITDA margin was 6.3% (reported), down from 8.3%.

• PAT before exceptional items was INR 28-30 crores (PAT margin 1.6%).

• Working capital days as of June 30, 2025, were 60-80 days; pre-Ind AS cash flow from operations was INR 393-510 crores.

Outlook and guidance

• Management expects a strong festive season, improved per-store economics, and double-digit revenue growth as new stores mature.

• Revenue growth guidance for FY26 is 15%+, with EBITDA margins of around 6% expected to be sustainable.

• Inventory days are projected to normalize below 60 by December 2025 as excess AC inventory is liquidated.

• 25-30 new stores are planned for FY26, with continued focus on supply chain optimization and expansion into new clusters.