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

Executive summary

• Q2 and H1 FY26 were marked by volatility from GST rate changes, leading to initial demand deferment but followed by a strong sales rebound as rates were reduced on select categories.

• Q2 FY26 revenue was ₹1,591 crore, up 19% year-over-year, and H1 FY26 revenue was ₹3,330 crore, up 2% year-over-year, with 215 stores as of H1 FY26.

• Rapid store expansion (75 new stores in H1 FY26) increased fixed costs and impacted operating margins, with many new stores still stabilizing.

• Mature stores (>4 years) contributed significantly to revenue and delivered higher EBITDA margins (6.8%) compared to newer stores (3%).

• Broad-based recovery across all clusters, with Hyderabad, Telangana, Andhra Pradesh, and NCR showing strong YoY revenue and SSG growth.

Financial highlights

• Q2 FY26 revenue: ₹1,591 crore; EBITDA: ₹82 crore (5.1% margin); PAT: ₹16 crore (including ₹15 crore exceptional gain).

• H1 FY26 revenue: ₹3,330 crore; EBITDA: ₹192 crore (5.8% margin); PAT: ₹38 crore (including ₹7 crore exceptional gain).

• Pre-Ind AS EBITDA for Q2 FY26: ₹46 crore (2.9% margin); H1 FY26: ₹122 crore (3.7% margin).

• Same-store sales growth (SSSG) Q2 FY26: 11.4%; H1 FY26: -4.8%.

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

Outlook and guidance

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

• Double-digit revenue growth targeted for FY26, though 15% YoY guidance revised downward due to H1 miss.

• Aggressive expansion in North cluster, aiming to align productivity and margins with South cluster benchmarks.

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

• 13 new stores planned by April next year, with further 30 stores targeted for FY27.