EMIL margin trails sector median as store network reaches 227
Management said store maturity should lift throughput and fixed-cost absorption, but Q1FY27 operating margin was 3.23 percentage points below the peer median.
Filed 07 Aug 2026, 13:36 IST · Electronics Mart India Ltd (EMIL)
Key takeaways
- Consolidated operating margin was 9.88%, 3.23 percentage points below the 13.11% median of 122 reported Consumer Discretionary peers.
- Net profit was Rs 120.64 cr after Rs 37.24 cr of interest and Rs 41.59 cr of depreciation, while other income was only Rs 1.95 cr.
- Management linked future profitability improvement to store maturity and fixed-cost absorption, with the network at 227 stores after six openings in Q1FY27.
Price around the results
Operating margin remains below sector peers
Electronics Mart India reported consolidated operating profit of Rs 238.94 cr on revenue of Rs 2418.95 cr in Q1FY27, translating to a 9.88% operating margin. That was 3.23 percentage points below the 13.11% median for 122 Consumer Discretionary peers that had reported the quarter. Other income was Rs 1.95 cr against profit before tax of Rs 162.07 cr, so the result was not materially supported by that line.
Interest and depreciation weigh below operating profit
Interest of Rs 37.24 cr and depreciation of Rs 41.59 cr reduced the operating result before tax, while the reported tax rate was 25.56%. Net profit consequently stood at Rs 120.64 cr, with EPS at Rs 3.14. The available results do not include a year-on-year or sequential bridge for revenue growth, expense growth or margin movement.
Store expansion is central to the margin case
The company had 227 stores in Q1FY27, up from 223 in FY26, after opening six stores during the quarter. Management said it is expanding into Western UP while consolidating its presence in the NCR and other recently entered regions. It also said more mature stores should improve throughput and revenue productivity, with better fixed-cost absorption supporting gradual EBITDA-margin normalisation.
Working capital remains a stated operating focus
Management said it is optimising inventory-level working capital to strengthen cash flows. The company also said technology-led replenishment is accelerating inventory rotation and improving the cash conversion cycle. These initiatives sit alongside the store-expansion plan rather than explaining a quantified change in Q1FY27 margins.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹2,419 cr |
| Other income | ₹2 cr |
| Expenses | ₹2,180 cr |
| Operating profit | ₹239 cr |
| Operating margin (%) | 9.88% |
| Interest | ₹37 cr |
| Depreciation | ₹42 cr |
| Profit before tax | ₹162 cr |
| Tax | ₹41 cr |
| Net profit | ₹121 cr |
| EPS (₹) | ₹3.14 |
Operating margin of 9.88% compares with a Consumer Discretionary sector median of 13.11% across 122 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- The company expects profitability to improve as more stores mature and unlock higher throughput and operating leverage.
- The company expects improved throughput and higher revenue productivity as stores mature and stabilize.
- The company expects fixed cost absorption to improve and EBITDA margins to normalize gradually over time.
Expansion
- The company is expanding into newer clusters such as Western UP while consolidating its presence in NCR.
- The company had 227 stores by Q1 FY27, up from 223 in FY26.
- The company opened six stores in Q1 FY27.
New initiatives
- The company is optimizing inventory-level working capital to strengthen cash flows.
- Technology-driven replenishment is accelerating inventory rotation and improving the cash conversion cycle.
Problems & risks
- Store closures during the period were primarily driven by the divestment of IQ Apple Retail stores.
What to watch
- Whether operating margin improves from 9.88% as more stores mature.
- Whether the store count rises from 227 after six openings in Q1FY27.
- Whether interest of Rs 37.24 cr and depreciation of Rs 41.59 cr continue to weigh on profit below the operating line.