Record profit masks seasonal tailwind; execution risk on new geographies

PAT ₹121 Cr (vs ₹22 Cr Q1 FY26), EBITDA margin 9.9% (up from 6.3% YoY), revenue ₹2,419 Cr (39% YoY growth)

39% revenue growth dominated by cooling products (ACs, refrigerators), South cluster (AP 62%, TN strong) delivered 40% growth; SSG 34.2%

131 non-mature stores at 8.1% vs 96 mature at 11.2%; prior models expected slower ramp; provides 3% embedded margin upside

North EBITDA margin 4.9% (from <3–4% prior quarters); 29% revenue growth; still below South's 10.9%; meaningful but asymmetric vs South

Gross margin 17.2% (vs 14.6% Q1 FY26). Management explicitly stated mobile/laptop price benefit 'temporary' until market volatility settles; AC margin structurally higher

Prior modeled slower maturation; Q1 shows 8.1% margin (vs prior <7%), with 131 non-mature stores. Implies 3% embedded upside vs prior expectations.

4.9% EBITDA margin (record), 29% revenue growth. Prior quarters <3–4%. However, still well below South's 10.9%, suggesting room but asymmetric upside.

Prior guided 5–7 stores Calcutta; now 5 by Diwali, 10–12 by FY27-end = 10–12 vs 5–7 prior. Plan is for 30 stores over 24 months (18–24 month timeline).

Prior: double-digit growth. Current: 18–20% explicitly guided (consistent with prior, not an upgrade, just specific number).

Prior: improved margins from store maturation. Current: 15–15.5% FY27 guidance. But acknowledged part of Q1 expansion is temporary (price benefits, seasonal AC).

18–20% revenue growth, easily achievable; Q3 festive expected good; Bengal entry by Q3/Q4 or Q1 FY28.

Summer cooling products have higher margin; mobile/laptop price benefits from chip shortage (temporary until market stabilizes); FY27 gross margin target 15–15.5%.

Seasonal: AC quarter cannibalizes mobile mix. Price benefit was periodic, not full quarter. Q2/Q3 will have mobile growth back.

Both. New stores in AP/TN gained 4–12% share; category (AC) grew; unorganized losing share. Tamil Nadu was #1 market. Competitors (Vijay Sales, Croma) also doing well.

No external tailwinds; comparing to 2024/2025 also shows upside; AP/TN new stores performing well; multi-category gains (not just ACs). Growth coming from execution, not one-offs.

Pre-planning; stockpile for scarce SKUs (50–60 days vs 30 normal). Few brands/products affected, not across board. Manageable.

9% too optimistic. 7.5–8% easily achievable looking at current trend.

About ₹10 Cr less than last year, so ~₹140 Cr (includes lease liabilities).

Cooling market was negative/flat in North (all products). But small base, so upsell showed. On-track now; long-term play for Delhi.

5 operational by Diwali. 10–12 by end of Q4 FY27. 30 stores total over next 24 months.

Growth is volume-led, not just price. Seasonal categories (TV, AC, fridge, washer) had single-digit hikes. Premium positioning let us capture price advantage. Market share gains in AP/Telangana offset conservatism.

~₹100 Cr for 25–30 stores + ~₹50 Cr for property buys in Kolkata = ~₹150 Cr. All from internal accruals.

Discussed internally. Large-format with our brand partners doesn't work franchised; bigger players tried, shut stores. Sticking with company-owned for now, but open to good opportunities.

Correct. ASP limited to select categories (mobiles/laptops). Volume growth is driver. Audio accessories, screen guards (low ASP, high volume) launched. AP/Telangana clusters outperforming (27% mobile vs 39% overall, high appliance mix).

4–12% depending on geography. Smallest towns easier (fighting mom-and-pop). Cities like Vijayawada harder.

Reduced debt instead of rapid expansion. Funding 25 stores from internal accruals. Deliberate, calculated expansion. 25–30 stores/year, not 100. Prioritize existing clusters (Delhi NCR, AP/TN) over new markets.

Hope so, but guiding 18–20% conservatively. Depends on Q3/Q4 seasonality. Q4 Jan–Mar important; sooner summer starts, better.

For core categories (large appliances, 75-inch TV, ₹1L soundbar), offline dominates. Small accessories (₹500 headphones, ₹100 charger) online relevant. Clear category bifurcation.

North bigger in value/volume. But Bengal payback faster (raw market, good ramp-up expected). Bengal 1/3 size of NCR though.

Peripheries keep growing. Cities like Amaravati, Guntur, Vijayawada big. Can open 15–20/year. Selective based on demand.

Mix of old/new, ongoing process. AC had mix, liquidated by Apr–May. 100–200 old laptops immaterial. Can't disclose exact numbers.

Compare Q1 to Q1, Q2 to Q2. Q2 this year will look better than last Q2.

South 10–11 months, North 16–18 months. Breakeven South 30–40 days, North 2–2.5 months. Capex ₹2.5 Cr/store, inventory ₹2 Cr. Opex target 8–10% initially.

Pull brands (top 3–4 per category, 8 in AC). Top market leaders (LG, Samsung, Sony for TV). Margin maintenance important but secondary to market leadership.

Conservative vs Q1's 39%; accounts for seasonality (AC/festive quarters vs normal); assumes Q3 festive and Q4 summer perform

Q1 at 17.2% (temporary benefits: AC mix, mobile/laptop price); CFO noted base Q1 FY25 was weak (comparable issue); margin normalization expected Q2+

CFO explicitly: 9% too optimistic; 7.5–8% 'easily achievable'; current 9.9% Q1 is seasonal peak, not sustainable

25–30 stores planned (5 Kolkata Diwali, 10–12 Kolkata FY27-end; 8–10 NCR; 5 South); all from internal accruals

Growth driven by Q1 (AC) and Q3 (festive). Q2 and Q4 historically weaker. 39% Q1 growth not sustainable; 18–20% full-year guidance assumes seasonal support.

260 bps gross margin expansion (14.6%→17.2%) partly from temporary AC seasonal mix and one-time mobile/laptop price benefits. Management explicitly acknowledged price benefit 'temporary until market stabilizes.' Q2 margin compression risk.

West Bengal entry unproven. 16–18 month payback (vs South 10–11 months) indicates higher risk. Market 1/3 size of NCR. 30-store plan over 24 months ambitious; contingent on early store performance and rapid burndown of payback period.

North EBITDA 4.9% (Q1 record) vs South 10.9%. Cooling market was negative/flat in North, limiting upside. Payback 16–18 months (vs 10–11 South). Convergence to South benchmark (10.9%) unproven; market structural weakness a risk.

Organized retail consolidation narrative (unorganized losing share) benefits EMIL, but larger players (Croma, Vijay Sales, Reliance) also expanding and gaining share. Market share gains (4–12%) could face headwind if competitors match expansion pace.