Electronics Mart India reported strong Q2 FY27 results, with improving store productivity, rapid growth in its northern operations and plans to enter West Bengal. The expansion strategy emerged as an important development alongside the company’s improving financial performance.

The company reported revenue from operations of approximately ₹1,900 crore, representing 19% year on year growth. This performance was supported by demand across electronics and consumer durable categories, despite the second quarter being seasonally softer for the industry.

Same store sales growth reached 16.5%, indicating that existing outlets contributed meaningfully to business expansion. This is particularly important because retail growth driven by established stores can complement revenue generated through new store openings.

The North cluster delivered 45% year on year revenue growth, making it one of the standout areas of the quarterly performance. The increase reflected the growing contribution of Electronics Mart India’s operations outside its traditional southern markets.

Profitability in the North cluster also improved. Its EBITDA margin increased by 430 basis points year on year to 1.6%, although the region continued to operate at a significantly lower margin than the South.

The South cluster remained the company’s more established and profitable business. Quarterly revenue increased 16% year on year, while its EBITDA margin expanded by 220 basis points to 7.4%.

The difference between northern and southern margins illustrates the economics of retail expansion. Newly established stores often require time to develop customer relationships, improve sales productivity and absorb their operating expenses.

Management highlighted that more than half of the company’s retail network is less than four years old. As these stores mature, management expects better operating leverage and product mix to support profitability, although improvement is not guaranteed.

West Bengal is emerging as the next major geographical expansion opportunity. Management confirmed that the company is on track to enter the state, extending its cluster-based retail strategy into eastern India.

The planned expansion could help Electronics Mart India reach a new customer base and diversify its geographical revenue contribution. However, new store performance will depend on location selection, competition, operating costs and consumer demand.

The company has previously outlined plans to expand its retail presence in Kolkata and other targeted markets. These plans represent future opportunities rather than revenue already generated by operational stores.

An interesting feature of the quarterly performance was the growth in individual product categories. Mobile phone sales increased 31% year on year, supported by new smartphone launches and continued demand for existing models.

Air conditioner sales increased 53% despite the quarter falling outside the industry’s main summer selling season. This provided another example of category growth contributing to overall revenue momentum.

Premium and emerging categories, including built-in appliances, dishwashers, tablets and wearable devices, also delivered strong double digit growth. Management reported a 19% increase in average ticket size, reflecting a shift toward higher value purchases.

Mobile phones accounted for 53% of quarterly product revenue, while large appliances contributed 33%. Small appliances, information technology products and other categories represented the remaining 14%.

The improving product mix and operating performance supported stronger profitability. Gross profit increased 31% year on year to ₹293 crore, while gross profit margin expanded by 130 basis points to 15.4%.

EBITDA increased 61% year on year to ₹131 crore. EBITDA margin improved by 180 basis points to 6.9%, showing that operating earnings grew substantially faster than revenue.

Profit after tax reached approximately ₹40 crore, an increase of 149% year on year. The PAT margin improved to 2.1%, compared with approximately 1% in the corresponding quarter.

For the first half of FY27, revenue increased 30% to ₹4,319 crore, while EBITDA rose 93% to ₹369 crore. Profit after tax increased 326% to ₹161 crore, demonstrating stronger profitability across the six month period.

Electronics Mart India operated 229 stores across more than 100 cities, with six net additions during the first half. The company’s growing network provides opportunities for expansion but also requires disciplined investment in inventory and store operations.

Working capital management showed improvement, with working capital days declining to 61 from 77. The company also reported ₹304 crore in pre Ind AS operating cash flow for the first half, supporting its financial flexibility.

For investors following Electronics Mart India, the main story is the combination of strong existing store performance, improving North cluster economics and planned entry into West Bengal. Future results will reveal whether new market expansion and maturing stores can sustain revenue growth while strengthening operating margins.