Electronics Mart's profit falls a third on fire, store sale
Revenue rose 6.7%, but exceptional charges slashed net profit by 33%. A strong Q4 couldn't offset the full-year hit.
— 2 earlier stories on Electronics Mart India Ltd. →What's new
- FY26 net profit fell 33% to ₹1,071.8 mn despite a 6.7% revenue increase to ₹71,832.6 mn.
- Profit was hit by a godown fire, the sale of IQ stores, and labour-code adjustments.
- Q4 revenue jumped 15% year-on-year to ₹19,132.5 mn; quarterly profit rose to ₹397.4 mn from ₹266.8 mn.
Why this matters
The company is selling assets and absorbing write-downs while its top line expands. That combination, growing revenue with falling profit, points to a margin problem. The EPS drop from ₹4.17 to ₹2.79 makes that concrete for shareholders.
What we're watching
- Whether the one-off charges are truly non-recurring or mask operational strain.
- If Q4's 15% revenue growth can sustain into FY27 without further margin hits.
- What happens to the capital freed up from the IQ store divestiture.
The full read
Electronics Mart's full-year results show a top line moving in the right direction. Revenue grew 6.7% to ₹71,832.6 mn, but net profit crumbled 33% to ₹1,071.8 mn. The culprit is a list of exceptional charges: a fire at a warehouse, the sale of its IQ stores, and adjustments for new labour codes. Earnings per share fell from ₹4.17 to ₹2.79. The final quarter, however, paints a different picture. Q4 revenue jumped 15% year-on-year to ₹19,132.5 mn and profit climbed to ₹397.4 mn from ₹266.8 mn, suggesting the core retail business is on firmer footing. The open question is whether the exceptional charges are truly one-time or if they mask deeper operational frictions.
Questions answered
- Why did Electronics Mart's profit fall so sharply even as revenue grew?
- The company booked several exceptional charges in FY26: a loss from a godown fire, proceeds adjustments from selling its IQ stores, and costs related to new labour codes. These items compressed net profit by 33% despite the top line expanding 6.7%.
- What was the quarterly performance versus the full year?
- The fourth quarter was strong, with revenue up 15% year-on-year and profit rising to ₹397.4 mn from ₹266.8 mn. This suggests the underlying business is healthy, but the full-year result was dragged down by the earlier exceptional events.
- How did earnings per share change?
- Earnings per share dropped to ₹2.79 in FY26 from ₹4.17 in the prior year, a direct result of the net profit declining even as revenue grew.
- What does the sale of the IQ stores signify?
- The filing lists the 'sale of IQ stores' as an exceptional item contributing to the profit decline. This indicates the company divested a segment of its retail operations during the year.
Electronics Mart India Ltd.
Latest quarter · Mar 2026
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All notes on EMIL →- 22 May 2026 · 2:25 PM IST Electronics Mart's profit falls a third on fire, store sale
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