Electronics Mart India (EMIL) Q2 25/26 earnings summary

Executive summary

• Q2 and H1 FY26 saw volatility from GST rate changes, with initial demand deferment followed by a strong sales rebound and 19% YoY Q2 revenue growth.

• Rapid store expansion (75 new stores in H1 FY24, 15 in H1 FY26) led to higher fixed costs and impacted margins, with 215 stores as of H1 FY26.

• Mature stores (>4 years, 84 units) contributed significantly to revenue and delivered higher EBITDA margins (6.8%) than new stores (3%).

• Large appliances and mobiles remained key revenue drivers, with premiumization trends boosting average ticket size.

• Financial results for Q2 and H1 FY26 were reviewed and approved by the Board and auditors.

Financial highlights

• Q2 FY26 consolidated revenue: ₹15,909.74 million; EBITDA: ₹82 crore (5.1% margin); PAT: ₹16 crore (including ₹15 crore exceptional gain).

• H1 FY26 consolidated revenue: ₹33,303.64 million; EBITDA: ₹192 crore (5.8% margin); PAT: ₹38 crore (including ₹7 crore exceptional gain).

• SSSG for Q2 FY26: 11.4%; H1 FY26: -4.8%.

• Average ticket size in H1 FY26: ₹22,757.

• Basic and diluted EPS for Q2 FY26: ₹0.42; for H1 FY26: ₹0.98.

Outlook and guidance

• Margins expected to improve as new stores mature and contribute more meaningfully.

• Double-digit revenue growth targeted for FY26, revised from earlier 15% guidance due to H1 miss.

• EBITDA margins for FY26 expected around 6%, with potential upside if summer season is strong.

• Aggressive expansion in North cluster, with 13 new stores planned by April next year and 30 more in FY27.

• Focus on inventory optimization, technology-driven replenishment, and leveraging data analytics for demand forecasting.