Electronics Mart Q1 FY27 Results (NSE: EMIL)
Signal: Growth reaccelerated
The read
The key inflection is a return to sequential operating improvement: revenue increased 26.5% QoQ to ₹24,189.50 million and gross margin expanded 253bps QoQ to 17.25% after the recent Q2FY26 contraction and Q3FY26 flat margin, but the 458.4% YoY PAT growth to ₹1,206.37 million is not fully recurring because Q1FY26 included an ₹81.72 million fire-loss exceptional charge.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,418.95 Cr | +39.1% | +26.5% |
| Net profit | ₹120.64 Cr | +458.4% | |
| EPS | ₹3.14 | +460.7% |
P&L walk
Consolidated revenue rose to ₹24,189.50 million, +39.1% YoY and +26.5% QoQ, while gross margin expanded to 17.25% from 14.56% a year earlier; PAT of ₹1,206.37 million was boosted by the absence of the ₹81.72 million prior-year fire-loss charge.
Key positives
- Revenue was ₹24,189.50 million, up 39.1% YoY and 26.5% QoQ, reversing the weak Q1FY26 revenue base of ₹17,393.90 million.
- Gross margin expanded 269bps YoY to 17.25% as raw material and inventory cost fell to 82.75% of revenue from 85.44%; this is the first clear gross-margin tailwind in the available filing series and needs confirmation in subsequent quarters.
- Finance costs fell 5.5% YoY to ₹372.38 million and 7.3% QoQ, supporting the increase in pre-tax profit.
- EPS of ₹3.14 tracked PAT growth of 458.4%, with no dilution-related divergence.
Key concerns
- The ₹1,206.37 million PAT includes a favorable base effect because Q1FY26 carried an ₹81.72 million exceptional inventory write-off from a warehouse fire.
- The filing does not disclose store-level sales, volume/value growth, same-store growth, realisations or product mix, limiting the ability to determine whether the ₹24,189.50 million revenue growth is volume-led or price/mix-led.
- Gross margin improvement to 17.25% is not attributed by management to input costs, pricing or mix, so its durability remains unproven.
- Other expenses rose 26.4% YoY to ₹1,338.95 million, while no detailed selling, advertising or store-cost split is provided.
Research and educational content only. Not investment advice.