Electronics Mart India is a neighbourhood electronics store scaled to a public company - the fourth-largest consumer durables retailer in the country and the biggest in South India, built from a single Hyderabad shop opened by Pavan Kumar Bajaj in 1980. Over four decades it has grown into a network of 223 stores across six states, anchored by a simple, repeatable formula: open large-format multi-brand outlets in a tight geographic cluster, stock them deep with products from a concentrated set of top brands, and sell through trained staff on a shop floor rather than a website. That approach - physical, consultative, and cluster-based - explains how the company has held its ground even as national chains and online platforms have moved into its core markets of Telangana and Andhra Pradesh. # Business segments A single retail engine with three complementary store formats - large multi-brand outlets that generate nearly all the revenue, a handful of specialty showrooms for premium niches, and a small set of exclusive brand outlets under active optimisation - all fed by the same supply chain and sold through the same physical, consultative approach. ## 1. Multi-Brand Outlets: the main street of the business **These 215 large-format stores are where the company makes its living - stocking over 8,000 products from more than 100 brands under one roof, with air-conditioned aisles, live demonstrations, and salespeople who explain the products rather than just ringing them up.** - **One roof, every brand** - each MBO carries a wide spectrum of consumer electronics and durables, from televisions and refrigerators to mobile phones and kitchen appliances, so a family can compare LG, Samsung, Sony and others in a single visit. The product mix is dominated by large appliances (about 45% of revenue) and mobile phones (about 42%), with the mobile category growing fastest - up 28% in Q4 FY26 - driven by new model launches and the beginnings of an AI-driven upgrade cycle. - **Deep, not wide, brand relationships** - the company works with a limited number of brands but buys in high volume, which gives it better bargaining power than peers who spread purchases thinner. The top five brands together account for roughly 61-63% of revenue, and more than 80% of procurement by volume comes directly from the manufacturers themselves, cutting out middlemen. - **Cluster expansion, not a land grab** - new stores are added in a concentric pattern around existing strongholds, deepening presence in Telangana and Andhra Pradesh before selectively entering new geographies like the Delhi-NCR region. The South cluster holds 181 stores and runs at a healthy 6.5% EBITDA margin; the newer NCR cluster of 34 stores turned EBITDA-positive on a full-year basis only in FY26, illustrating the ramp-up economics of the model. - **Mature stores are the profit engine** - stores older than four years achieve an EBITDA margin of roughly 7.3%, while younger stores still in their ramp-up phase operate at about 3.1%. A typical new store opens with around Rs. 3 crores of stock - mostly display inventory - and takes several years to reach the profitability of its older siblings. - **Financing closes the sale** - the company has integrated its systems with consumer-financing partners to offer no-cost EMIs, exchange offers, and extended warranties at the point of sale, which lets customers stretch their budgets to higher-priced products without the store losing the transaction. ## 2. Specialty retail formats: premium niches under their own shingles **A small portfolio of experience-led showrooms - six Kitchen Stories, three Audio & Beyond, three Easy Kitchens, and one luxury design gallery - that target customers willing to spend on built-in German kitchens, whole-home audio, or designer interiors, and that trade on curation rather than range.** - **Kitchens as a luxury category** - Kitchen Stories positions itself as India's first experiential showroom for high-end built-in kitchen appliances, stocking over 15 global brands including Bora, Asko, Bosch, and Liebherr, and has partnered with German kitchen manufacturer Häcker Kitchens to sell complete fitted-kitchen solutions. Easy Kitchens serves the more cost-conscious end of the same need, offering modular kitchen setups with integrated appliances from three exclusive showrooms in Hyderabad. - **Sound and automation for homes** - Audio & Beyond sells high-end home audio, home cinema, whole-home networking, security, and automation from more than 30 global brands, addressing a customer who is outfitting an entire house rather than buying a single speaker. - **Apple stores were exited deliberately** - the company previously operated four iQ stores as Apple-authorised resellers, but sold them on a going-concern basis in August 2025 for Rs. 8 crores because their contribution to operating profit was small relative to the management attention they required. The exit freed resources to strengthen the proprietary specialty formats. ## 3. Exclusive Brand Outlets: a shrinking, actively managed sideline **Eight single-brand stores - down from thirteen two years earlier - that the company treats as a flexible portfolio, closing or converting outlets as brand dynamics and profitability dictate.** - **Optimised, not expanded** - the EBO count has been steadily reduced from 13 in FY24 to 11 in FY25 to 8 by March 2026, with closures and conversions driven by retail-network optimisation rather than growth ambition. - **Brands can be swapped** - in November 2025, a Samsung EBO in Hyderabad was converted into a Haier EBO, leveraging Haier's stronger presence in large appliances to offer a more focused brand experience with better product availability and specialised after-sales support, while Samsung products continued to be sold in the company's multi-brand outlets. - **Employees are retained through changes** - when EBOs close, staff are reassigned to nearby stores rather than let go, preserving trained sales capacity within the network. # Supply chain and technology backbone **A centralised infrastructure of warehouses, enterprise software, and anti-theft systems that gives every store real-time inventory visibility and keeps stock moving on a first-in-first-out basis - the invisible plumbing that makes the physical-retail model work.** - **Twelve warehouses feeding 200 stores** - the company operates a dozen large, centrally located warehousing facilities, supplemented by individual storage areas at store level, using a block-stacking method to optimise space and reduce handling costs. - **SAP ties inventory to the till** - the company runs on SAP S4/Hana, which integrates inventory, finance, and sales in real time, and uses SAP's profitability-analysis module to track margins by product, store, and region. The point-of-sale system is cloud-based, and a warehouse management system handles sorting, dispatch, and turnaround. - **AI for demand, cameras for pilferage** - data analytics and AI-driven tools are used for demand forecasting, inventory planning, and targeted promotions, while a central surveillance control room with CCTV monitoring, regular audits, and monthly perpetual-inventory checks keeps shrinkage in check. - **Two inventory peaks each year** - the business builds stock ahead of the summer quarter for cooling products (air conditioners, air coolers, and refrigeration, which together represent about 15% of annual sales) and again before the Dussehra-Diwali festive period. Inventory days outstanding stood at 73 days as of March 2026. # Group structure and partners **A clean, simple structure: the listed parent company, two non-material subsidiaries - one dormant, one for CSR - and no joint ventures or material associates, though the board has authorised exploration of inorganic opportunities.** - **Two wholly-owned subsidiaries, neither material** - Cloudnine Retail Private Limited is dormant, and EMIL CSR Foundation is a Section-8 company set up solely for corporate social responsibility activities. - **No joint ventures or associates** - the company operates entirely through its own balance sheet and store network, with no shared-control entities. - **Inorganic options under exploration** - in December 2025, the board authorised designated individuals to evaluate acquisitions, investments, joint ventures, and strategic alliances in India or overseas, though no material transaction had crystallised by the time of disclosure. - **Trademarks protect the store banners** - the company holds 31 trademarks registered in India and two internationally under the WIPO Madrid Protocol - "Bajaj Electronics" and "Electronics Mart" - covering its flagship retail brands.