Electronics Mart stock rallies as Q4 profit rises 49%, NCR growth stays strong

Shares of Electronics Mart India Ltd rallied nearly 8% in Friday’s trade after the company posted a strong set of Q4FY26 numbers, aided by healthy demand across categories, improving operating leverage and continued expansion across key markets.

The company reported consolidated revenue from operations of ₹1,913 crore for the March quarter, registering a 15% year-on-year growth, while profit after tax surged 49% YoY to ₹40 crore. EBITDA came in at ₹129 crore, up 20% from the year-ago quarter, with EBITDA margin expanding 30 basis points to 6.7%.

Electronics Mart said the quarter witnessed double-digit growth across all product categories despite price hikes in larger appliances, while its core clusters continued to deliver steady growth. The company also highlighted margin improvement driven by operating leverage.

Operational metrics remained robust during the quarter. Same store sales growth stood at 12.1%, while bill cuts rose 19.5% YoY to 785,000. Average ticket size increased to ₹23,287. The company opened four net new stores during Q4FY26.

The company’s NCR business continued to scale up rapidly. Revenue from the Delhi NCR cluster jumped 31% YoY to ₹148 crore during Q4FY26, while same-store sales growth in the region stood at 18.6%, the highest among all clusters.

Management also highlighted that the North cluster, where operations began in 2022, is being scaled aggressively using the same cluster-based strategy that helped the company dominate southern markets. The company expects store productivity and margins in the North to gradually align with South cluster benchmarks as scale improves.

During FY26, Electronics Mart added 23 net stores, taking its total retail footprint to 223 stores across 95 cities and six states, with a retail area exceeding 1.94 million sq ft.

The company also used the investor presentation to emphasise its premium positioning strategy and partnerships with global consumer electronics brands including Apple, Sony, LG, Samsung, Oppo, Vivo, Bosch and Whirlpool. It said its average selling price has risen 19% from FY20 levels to ₹23,125 in FY26, reflecting increasing premiumisation trends.

Electronics Mart further noted that mature stores older than four years generated EBITDA margins of 7.3% during FY26, compared with 3.1% for newer stores, indicating scope for profitability improvement as recently opened outlets mature.

The company also reported strong cash flow generation, with operating cash flow rising to ₹444 crore in FY26 from ₹176 crore in FY25.

Disclaimer: This article is based on company filings and investor presentation details. Investors are advised to consult certified financial advisors before making investment decisions.