Ladies and gentlemen, good day and welcome to Electronics Mart India Limited Q2 and H1 FY26 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as of the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. I now hand the conference over to Mr. Karan Bajaj, CEO and Promoter. Thank you, and over to you, sir.
Thank you very much. Good evening and a very warm welcome to everybody present on the call. Along with me, I am Mr. Premchand Devarakonda, our Chief Financial Officer. We have uploaded our results and investor presentation for the quarter and half-year ended 30 September 2025 on the stock exchange and the company's website. Hope everyone had a chance to go through the same. During the quarter, performance was marked with volatility owing to the GST rates announcement, which led to some deferment of purchase in the initial weeks. However, demand rebounded swiftly following the reduction in the GST rates on select categories, resulting in a strong recovery in sales momentum. Operating margins were also impacted due to our rapid store expansion. We have added around 75 stores in H1 FY24, and many of these are still in the early stages of stabilizing.
As a result, fixed costs such as employee expenses, marketing, and promotions are not yet being fully absorbed. The rapid expansion has also led to higher financing costs and depreciation due to the Ind AS 116 lease accounting impact. Together, these factors have affected our PAT margins and PAT as well. As the new stores ramp up and start contributing more meaningfully, we expect margins to gradually improve in the coming quarters. To give a clear perspective on our store portfolio, out of a total of 215 stores, 84 stores are more than four years old, while the remaining 131 stores are less than four years old. The mature 84 stores delivered sales of about INR 2254 crores in the first half of FY26, whereas the newer 131 stores contributed revenue of around INR 933 crores. These figures represent revenue from product sales.
On the profitability front, the mature stores continue to perform strongly with an EBITDA margin of 6.8%, while the newer stores currently operate at an EBITDA margin of 3%. Now, I would like to share a highlight on our geographical performance. We have seen a broad-based recovery in demand across all our key clusters. In Q2 FY26, our core market of Hyderabad recorded a strong revenue growth of 15% YoY, with a healthy SSG of 12%. In Telangana, our core market revenue grew by 23% with an SSG of 16%. Andhra Pradesh delivered a robust revenue growth of 29% and with an SSG of 8%. Lastly, our NCR cluster continued to scale up well, achieving a revenue growth of 38% and an SSG of 11%.
Talking about cluster-wise profitability, we continue to maintain a healthy EBITDA margin of around 6% in the southern cluster, despite adding new 60 stores across Andhra Pradesh and Telangana over the past two years. We are also pleased to share that our NCR operations remain EBITDA positive with a margin of 1%. We believe margin in this region will scale up further as we start achieving greater business scale and operation leverage soon. Talking about category-specific performance, I had earlier shared an update on the large appliances segment during Q2 FY26. In numerical terms, large appliances contributed 38% in the Q2 FY26 and about 43% in H1 of the FY26.
Another positive trend we are seeing at the store level following the GST reduction is an increase in the average selling price, as customers are increasingly opting for large televisions and higher-priced air conditioners or even purchasing newer categories such as dishwashers. The shift towards premium products will help in driving and improving overall ASP as well. Moving to mobiles, mobiles contributed 48% of our total revenue in Q2 FY26 and 44% in H1 FY26. Looking ahead, we believe the categories poised for a new wave of demand driven by upcoming technologies, upgrades, and feature enhancements. Many OEMs are actively developing next-generation AI-enabled devices, which we expect will further boost consumer interest and drive growth in both ASP and volumes. This positions us well to capture the next phase of demand as the upgrade cycle accelerates. We believe the broader environment remains supportive.
Interest rates have been reduced, GST rates have come down, and the government had also reduced income tax slabs previously, which is expected to boost disposable incomes. Together, these factors are likely to create a compounding effect on consumption and drive long-term growth. Several categories in our portfolio continue to remain unpenetrated, offering significant growth potential. As our newly opened stores mature and reach steady-state performance, we expect margins to progressively normalize, setting a strong foundation for sustained and profitable growth in the years to come. With this, I request Mr. Premchand Devarakonda, our CFO, to update on the financial performance. Thank you.
Thank you, Karan sir. Good evening and warm welcome to all the participants. Firstly, I'm happy to share that we received the full insurance claim memo relating to the fire accident that occurred on 29 May 2025 at one of our godowns, which had earlier resulted in an inventory loss to the tune of INR eight crores. Secondly, during the quarter, we took a strategic decision to divest four of our iQ Apple stores, which are shown as EBOs in our reports. This move is in line with our focus on strengthening our core multi-brand retail business, which continues to offer greater scalability and better operating leverage. By realigning our portfolio towards the core business, we aim to enhance capital efficiency and sharpen our execution focus across three key growth areas. Now, moving on to the financial performance during Q2 and H1 of FY26.
First, I would like to start with Q2 FY26 performance. Our revenue for the quarter stood at INR 1,591 crores. EBITDA for Q2 FY26 stood at INR 82 crores. EBITDA margin for Q2 FY26 stood at 5.1%. Pre-Ind AS EBITDA for Q2 FY26 stood at INR 46 crores with a margin of 2.9%. PAT, including exceptional items for Q2 FY26, stood at INR 16 crores. Same-store sales growth for Q2 FY26 was 11.4%. Moving on to H1 FY26 financials. Our revenues for H1 FY26 stood at INR 3,330 crores. EBITDA for H1 FY26 stood at INR 192 crores. EBITDA margins for H1 FY26 stood at 5.8%. Pre-Ind AS EBITDA for H1 FY26 stood at INR 122 crores with a margin of 3.7%. PAT, including exceptional items for H1 FY26, stood at INR 38 crores. For H1 FY26, SSSG stood at -4.8%.
ROCE and ROE on annualized basis for H1 FY26 stood at 9.8% and 4.8%, respectively. The working capital days as of 30 September 2025 stood at 76 days. Pre-Ind AS cash flows from operations as of 30 September 2025 stood at INR 209 crores. With this, we can open the floor for questions and answers. Thank you.
Thank you, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Mr. Yash from Edelweiss Public Alternatives. Please go ahead.
Hi, hi team. Thank you for taking my question. So my first question is on our gross margin. Like if I see YoY from Q2 FY25 to Q2 FY26, our mobile mix has changed from 51% to 48%, while large appliances sales have increased from 36% to 38%. But while in this YoY scenario, our gross margin has declined, which in the ideal scenario should have increased because of the mix change. So can you please help me with the same?
Sir, this is Premchand. See, what happened, since the GST rate cut announcement came in, there was total slowdown. There was a drastic degrowth in the sale of the large appliances category. So during that period, we had to just push some sales by offering additional discounts. That has marginally reduced the gross margins during this period, sir.
Got it. Got it. So the decline in gross margin is majorly due to extra discounts we provided in the quarter. Am I reading it right?
During that flat period, since the announcement came in that has come on the 2nd of September till festive , the sales, it was total slowdown in the market. People actually deferred their purchase decisions in anticipation of the GST rate cut, and as a result, we had to offer. We have to run the stores and the stores people also. They have to push the sales on the floor, so these things actually marginally reduced the gross margins, and the GST rate cut advantage will come in the next quarter, that is, in the festive season, which went on very well during the first three weeks of October.
Got it. Got it. And sir, on the same line, I also wanted to know what is the AC inventory for this quarter and what was it in Q2 FY25?
So, AC inventory, in spite of GST rate cut, there is no traction in AC inventory because of this off-season. The season was, I mean, even the weather was not supporting our AC sales. Still, we are carrying that INR 200-plus crores of air conditioner inventory, which we thought that it will get liquidated in the festive season, but we didn't see any demand. So we have to wait and see the upcoming summer season, which will start sometime in the second week of February.
Sir, we are still holding INR 200 crores AC inventory?
Yes, yes.
And sir.
Yes, just to add on to Prem sir, sorry. Just to add on to Prem sir, yes, whenever we exit our season or our ground stock, which now we're operating 215 stores, so the inventory would be for displays, which is around, say, almost 15,000 units in display across 215 stores and the subsequent backup stock for that. So if you look at the overall number, we'll be carrying another INR 100-odd crores of excess inventory that we would be not carrying during this period of the time.
Got it. INR 100 crores is the excess inventory. That's what I was looking for.
Yeah, excess inventory. So [Foreign language]
Very clear, very clear, Karan. One last question on operating leverage also. Like this quarter, we reported healthy SSSG, and while our store growth was on 20%, what was the reason for such high employee cost? Was it there someone one-off [Foreign language] ya it is going to stay like this only going ahead?
[Foreign language], it is in line. Basically, [Foreign language ] it is in line with what the employee cost is. [Foreign language ] variable incentive [Foreign language] added [Foreign language] for that quarter, so because we were running a lot of schemes, you know, so the variable incentive was a little higher than what usually we would do. So that employee cost would include that as well, and plus what happened was a lot of stores which we opened the last quarter or so, so you know, though they took a little time to get launched, but the managers, security, housekeeping, so you've got to employ a lot of these people, so whenever the incremental store addition happens, the subsequent growth in the cost of employees also goes up, right?
Understood.
Yeah. So actually these, if you sorry, team. Hello.
Yeah, yeah, yeah.
I would like to add one more point. So if you look at the employee cost as a percentage of the top line, it is more or less similar compared to the last year's figures.
Got it. Got it. Thank you. Best of luck.
Thank you.
Thank you. Participants, if you wish to ask a question, you may press star and one on your touch-tone telephone. The next question is from the line of Mr. Jitaksh Gupta from Tikri Investments. Please go ahead, sir.
Hello. Can you hear me, sir?
Yes, sir, you are audible. Please go ahead.
Yes, sir. Hi. Thank you for the opportunity. So my question is, sir, if you see revenue per store for either it is Andhra Pradesh or Telangana, so it is constantly moving down and it is one of the lowest in this quarter. So sir, can you please help me understand what is happening with the south market?
Actually what happened was if you look at the store addition also during this, I mean, in these clusters, so it was a little rampant compared to other regions. So since the denominator has been increasing, so obviously average store throughput has come down. These stores will take time to mature. Normally, the average age of these stores is also less than three years in these clusters. So I think by end of this financial year, I think most of these stores will start performing and we are quite optimistic about normalizing the average store throughput.
And one last question. Sir, how is the competitive landscape in the south market?
Competitive landscape?
Yes, in the southern market where we operate.
Okay. In southern market, in the markets like Hyderabad, so we are the market leader. And in Andhra Pradesh, I think we stand number two. And in Telangana upcountry, we are still holding our market share. We are number one only. So in fact, there is not much competition in Telangana upcountry market. In Hyderabad, obviously there is competition. Still, we are gaining or rather improving our SSG. If you look at this quarter's performance, definitely it is quite encouraging. And we are not losing any market share to our competitors.
Okay, sir. Thank you so much. That answers my questions.
Thank you. Participants, if you wish to ask a question, you may press star and one on your touch-tone telephone. The next question is from the line of Mr. Mehul Desai from JM Financial Limited. Please go ahead.
Yeah. Hi, good evening, sir. So my first question is on the top line. I think our full year guidance was up around 15-odd%. But given that the first half, there is a miss. How do you see the second half panning out, especially because of this GST rationalization? Do you see further acceleration in your overall sales growth and you still maintain your guidance of 15%? That is the first question. And the second question is on the margins. Obviously, this quarter margins were impacted by higher discounting and weaker mix. But going ahead into Q3, I am assuming that this discounting factor should go away. So is it fair to say that in the second half, our EBITDA margin should go back to that 6% kind of 6% which we saw in 1Q? These are my first two questions.
Okay, sir. The first thing, that 15% year-on-year growth, since we have already operated through during the financial year, for me, I think we need to revise that. But still, we are quite confident of reaching double-digit growth in this financial year. So that is there. It's on the track. And coming to the second question, okay, margins during Q3, I think now it is going to be impressive. Definitely in Q3, the margins will be better than what we have seen in the last couple of quarters.
Okay. And
Yeah. Mehul j ust to add to, sorry, just to add to Prem sir's conversation on the growth, see the trends right now. See, we had a bad summer. You know, that definitely impacted the AC sellout. But we are quite optimistic on, see, you're looking at, say, if you're talking about 14%-15% growth, you're looking at an additional delta of INR 100-150 crores of sellout in, say, March month for cooling season products. So you know that comes up, summer comes up a little early, then it becomes much easier for us to achieve that kind of a number. But it all depends on seasonality. It all depends on the thing. But when you're looking at an organic sellout that happens every month, every day, every week, I think we are on track on doing good business.
So that is what we are looking at, making sure the market share is intact and growing from there on. The newer clusters are performing. The stores which are yet to get matured are on track to getting matured. So [Foreign language ], things are looking good. Things are on track. But what will definitely help us surpass that growth rate is the cooling product season, which might start a little early, say in March, if it starts off early, and then we get that additional INR 100-150 crores of growth there. So that is very important.
Got it. And secondly, on Delhi NCR region, while you gave your matured and new store margins on an overall basis, specifically to Delhi NCR region, the stores which were opened in FY23, obviously they are maybe three-year-old, they are not four-year-old. But those three-year-old stores in Delhi NCR, what kind of margins they are clocking?
Just a minute, we'll answer that.
I think Prem sir is there to get back to you on that number because we don't have a split on that. So Prem sir will get back to you on that, yeah.
Okay, sir. No problem.
Yeah, I'll give you that working because we didn't work out that easing for the Delhi stores. But to the best of my knowledge, it is better than more than 3%.
Got it. Got it. This is all, that's all from my side. Thank you so much.
Thank you. Participants, if you wish to ask a question, you may press star and one on your touch-tone telephone. The next question is from the line of Mr. Devanshu Bansal from Emkay Global. Please go ahead.
Hi, Karan. Thanks for the opportunity. Sir, you mentioned that overall we have about INR 1,200 crores of inventory. So AC inventory is about INR 100 crores higher versus last year. What about extra inventory in other categories? And further to this question, how much can be the potential margin impact if we sort of try to liquidate this inventory as there was some margin impact in Q2 also? So overall for H2, what is your initial sense on the margin impact of this excess inventory?
Sir, see, we are not carrying any excess inventory in other categories. Because of the bad summer season, we were forced to carry the air conditioner inventory. And I think, as explained by our CEO, I think if summer turns in early, we are quite confident of liquidating this inventory before this financial year.
So still, the sense was that because already there was 9% impact in the south, the festive season sort of starts off early. And in Q1, Q4 end also our inventory was INR 1,200 crores. Now also it is sitting at INR 1,200 crores. So just wanted to double-check as in if you can confirm because the festive season must have a good part of it would have already been consumed by September end, right?
Yeah. So if you see the inventory level at the end of September, we started off buying a lot of products, especially for television, the sales went up really well, right? So mobile phones, television, and Diwali, Dussehra carries out across categories. So spread across all categories. So we had to buy out a lot of those stocks, right? So except ACs, we had to pile up our inventory for other categories as well. So that is where you would see a higher inventory level. But if we talk about that inventory level today, it is much lower than what usually it would be for the festival period, except again, ACs to a certain extent. And apart from that, all other categories are in line with the regular, say, 40 days, 30 days, 60 days for different categories.
So that is in line with that.
Fair enough.
By 31st December, when you see the number, you will definitely see a much lower number of inventory.
Understood. Can you comment on this festive? You've given some indication about low double-digit growth for H2, sorry, for full year, which implies about 20%-25% growth in H2. So can you shed some light on how did the festive go this time around versus last year? Maybe some trends for the first 40-odd days?
We were quite positive on how the festive period panned out. But again, looking at the split between quarter two, quarter three, we just finished, ended up our festive period completely in the month of October, but still had another 60 days of November and December to go through. So usually there is a sluggish period post-Diwali, right? So [Foreign language ], and then there is another 60 days of two months of non-festive period in this quarter. So it will be too early for us to comment. But things are looking positive. I would not complain. Things are looking definitely positive than the previous festive period. So that is a good sign for us. And that is across all categories and all clusters.
Fair enough. Second question, wanted to check on the incentives, right? So brands also have struggled for this year and in this particular industry, there are a lot of incentives linked to meeting the target. So do you foresee some lower incentives on account of that? Because sales, etc., have been impacted. So do you foresee some impact on that?
Prem sir?
Hello?
Prem sir, you want to take that question or do you want me to answer it?
Yeah, please, sir. I think he was asking you.
Okay.
So yeah. So no, if you look at that incentive part, looking at that number, we're not worried about it because most of the schemes that we had were all upfront majorly. So there was not much of a sellout or linked scheme that was pending or is pending. So whatever the incentive we were supposed to receive for the sales target that we had completed, that is on track only. So there is no deviation there.
Fair enough. And lastly, Karan, thanks for providing this segregation for mature stores and non-mature stores. Typically, I wanted to check what is the typical SSG that your mature store clocks and what is the same number for, say, non-mature stores?
Prem sir, you want to answer that? You got the number with you?
It is not readily available. But last year when I worked it out, so fully matured stores, that means stores aging more than 10 years will have mid-single-digit SSG. So blended, all the mature stores are actually giving this time, this quarter was quite impressive. So on the whole, for the year, I think we can expect high single-digit SSG across the board.
Sir, I'm checking for more of a medium-term perspective, not from this year. Obviously, this has been a disruptive year. I wanted to check more from a medium-term perspective. What is a reasonable assumption for SSGs for mature stores and for non-mature stores? Because your average age for non-mature is less than two years. So I wanted to check on that.
Yeah. See, the stores aging between four and 10 will have at least nine to 10% SSG. And the stores aging more than 10 years will have around three to five% SSG, sir. That was the historical performance.
Fair enough. And any last question? Among categories, anything to call out as in which categories are sort of performing better versus the others? So let me sort of give us some sense on the revenue mix.
In the last three, four quarters, these large appliances categories didn't perform well. But starting from Q2 of this year, we have seen decent double-digit growth in these categories like home entertainment, refrigerators, washing machines. So we can expect because the penetration of large-screen televisions is much lower in these markets. So that is now getting penetrated. So we can expect close to 10% growth in these categories. That includes the air conditioners. And coming to mobiles, so that will be roughly around 15% year- on- year. That is the conservative estimate.
Sure, sir. Thanks for taking my questions.
Thank you. The next question is from the line of Mr. Tushar from Athena Investments. Please go ahead.
Yeah, thank you for the opportunity. So regarding your Delhi, from what I see from the presentation, you have around 31-32 stores, and you are doing a run rate of INR 400-450 crores. So that's around INR 12-15 crores per store. So what is your aspiration? I mean, ultimately, where should these stores reach, and in how much time do you think they will go to that level?
Sir, in Hyderabad market, the average store throughput for MBOs is more than INR 65 crores. So that is what our aspiration in NCR. So I think it will take maybe three to five years to reach to that level. And this year, we are quite confident of reaching around INR 30-plus crores per store in NCR.
I think some calculation. I think there's some discrepancy in the calculation that you've done versus what we usually have it. Sir, last year, we did around INR 480 crores of revenue in those stores, apart from the new store that we opened up in Delhi NCR. So this is a Delhi NCR. We would be very comfortably on track of doing around INR 650-700 crores of revenue this financial year.
This year?
Yes, sir. So last year, we did INR 480 crores.
So it's growing at a higher level.
So this is after the addition of new stores as well. Sorry?
This is growing at a high double-digit, is it?
Yeah, if you, yes, definitely. Definitely. If you see all the quarters that in the last couple of quarters, last quarter also, in fact, after a bad summer season also, the stores have grown there. We've done a Total Cumulative Growth of around 38% this quarter two as well. So looking at the festival period panned out, things moving on a daily basis, I think we're quite positive on reaching at least INR 650-plus crores in that region. But unfortunate for the region is that the summer starts post-April there. So quarter four would have a very smaller flavor of the summer there compared to the southern region.
So, INR 650 crore this year. And next year, what do you think would Delhi NCR do?
Sir, our aspiration with the new stores opening up and the stores getting matured in that region, we should at least grow at least 25% over that number.
Okay. Okay. And any plans to get into southern like Bangalore, Chennai? Any reason that you've not gone into these areas? Because that is...
No plans as of now, but definitely we will evaluate the newer expansion from the next quarter onwards. That's the plan.
Okay. Okay. Thank you.
Yeah. Thank you.
Thank you. The next question is from the line of Mr. Siddarth from Vettae Money. Please go ahead.
Hello, sir. Thanks a lot for the opportunity. So previous two quarters ahead, we did hear a word from the management saying there is a lot of credit scrutiny going around where there is a lot of restriction rates for the EMIs applied by the customer. I'd love to have an outlook as to how it has been at the moment? And is it actually having an impact on the sales? And what do you expect on the post-GST cut? Electronics retailers are expected to be the key beneficiary. How do you expect it to pan out for EMIL? And the potential guidance would be lovely to hear.
Such as the credit cards are actually not, I mean, not impacting our businesses. Actually, what happened is the markets where we have been operating. I think in those markets, we are able to generate more than 60% of business through these, and coming to the GST rate cut, so GST rate cut was applicable to the, I mean, in our business, in our trading. So the large-screen televisions and the air conditioners, these are the two categories. They got the advantage of the GST rate cut, and definitely, during the festive season and during Q2, as well as the festive season, we did see decent growth. It is a very impressive growth in these large-screen television categories, whereas air conditioners, being a seasonal product, I think we will see the traction coming in in the fourth quarter of this financial year.
Okay. Okay. That provides us with a lot of clarity. And my follow-up question would be that there is a lot of non-mature stores that you have at the moment, close to 131 stores, if I'm not wrong. So when do we expect marginal contribution from them in terms of the break-even? They are having a break-even, but I mean, the substantial margin contribution, the EBITDA improvement from them. And what is your plan in terms of store expansion for FY26 laid out is something also I would love to have clarity on?
Yeah. Sir, these stores will mature in the next 24 months, most of these stores. And since they started, they will start contributing to the EBITDA margins. Coming to the expansion plans for the rest of the financial year, in Telangana, we are planning to add four more stores. In Andhra, four stores. In NCR, three stores. And in Hyderabad, two stores. These stores are going to be operational by end of this financial year, or latest by April of this in the next financial year, sir.
Okay, so if you can just let me know our overall count as to how much we plan laid out for the upcoming year? It would be really helpful.
So in the rest of the financial year, okay.
Yeah, yeah, yeah.
We'll be adding, yeah, so 13 more stores.
Okay. Okay. And the concentration would be more exposed towards Telangana markets, right?
Yeah. Telangana, Andhra, and Hyderabad, these are given, and this is an organic store addition. And in NCR, we are planning to add three more stores. I think this is the plan till the next April.
Okay. Okay. Thank you. It looks very diversified, and I'm looking at to be part of the future prospects. Thanks a lot for your clarification.
Thank you, sir.
Thank you. The next question is from the line of Mr. Akhil Parekh from B&K Securities India Private Limited. Please go ahead, sir.
Yeah. Thanks for the opportunity. The first question on the North Cluster margins, right? And for the first half, it stood at 1%. But if I remember correctly, I think till last quarter, we were guiding that the NCR or North Cluster margins will be around 3%-4% by end of FY26. So how should we look at it, basically, the North Cluster margins for the full year expectation? That's my first question.
In Q1, we had a little bit of air conditioner sale happened in the North Cluster. As a result, we had seen a 3% EBITDA margin. Whereas in Q2, it was a little slow because of that GST announcement and also the weather conditions. Now, having seen the performance during the festive season, we are quite optimistic.
I mean, we will be. It is definite that we are going to reach the targeted EBITDA contribution coming in from NCR.
Okay. Okay. That's good to hear. So we should be able to reach at least 3% for the festive season.
Yes. Yes. Yes.
Okay. The second question is, what's the downside risk to our EBITDA margins at a company level if the summer season is not strong as per our expectation, right? What would be the worst-case scenario for margins, basically, for FY26?
Yes, sir. See, air conditioner contribution is very important for us. So that should, I mean, obviously, we'll not have two bad summers. So next year, we're going to come back on track with regard to the air conditioner sales.
Okay.
No, but I think just hypothetically, because the expectations are that the winter is expected to be cooler this time, which seems to be the case, right? So if that happens, would it be fair to assume our margins will remain below 6% for the full year?
This financial year, yes. It will be around that.
Around 6%?
Yes. Yes. EBITDA margins will be around 6%. And if summer succeeds early, so it will slightly improve. It may go up to, I mean, it may improve by another 30-50 basis points.
Got it. So if early summer, then it's around 6.3%-6.5% margins, basically.
Yes.
Okay. Last question on the CAPEX guidance, if you can please highlight what kind of CAPEX numbers should one look at for FY26 and FY27?
See, we have, as I mentioned, about 13 stores in pipeline. So those two, I mean, for the rest of the period, we may consider another INR 25-30 crores of CAPEX in the next six months. Apart from that, for the next financial year, we'll be adding, as of now, we are planning to add 30 more stores. So on 30 stores, we'll be investing about INR 75 crores. So that is the plan.
Okay. Okay. Great. That's all from my side, and best wishes for coming back. Thank you so much.
Thank you, sir.
Thank you. Participants, if you wish to ask a question, you may press star and one on your touch-tone telephone. The next question is from the line of Mr. Harsh from Nepean Capital. Please go ahead.
Yeah. Hi. Thank you for the opportunity. I hope I'm audible.
Yes.
Yes, sir. Please go ahead.
Yeah. Thanks. So Karan, you mentioned that your target for FY26 in Northern Cluster should be around 650 crores. So if I just calculate it on a per-store basis, it would be in the north of, say, 30 crores of revenue coming in on an average basis. Is that correct? Is that correct? Firstly. And secondly, this would be a growth on a year-on-year basis despite having a weak 1H. So where do you expect the growth coming in from in the second half?
See, what happened: second half, the festive season went on very well. As a result, we did see decent growth. Means there's more than 25% coming in from North Cluster. And coming to the other thing, see, most of the stores which are opened in the current financial year, they're getting added to the denominator. As a result, we are getting the average throughput lesser. But we consider the stores which are operational for more than 12 months for the purpose of ascertaining the average throughput coming in from the store.
Perfect. So yeah, considering that only, I thought my numbers might be slightly different on a per-store basis, but it's showing us 27 crores for last year, FY25. And if I had to just incorporate what your guidance says, it should be in the north of, say, 29-30 crores. So that's the reason I thought. Where am I missing out?
Yes. That's true. Yeah. That's true, sir.
Okay. So you're saying it's just to conclude in a summary, you're saying that the festive period sales and the stores which have been added towards the later part of the year or in the first half would start contributing, and that's how you expect it to go up?
Yes, sir. That's right.
Thank you. That's all I have. Thank you.
Thank you. As there are no further questions, I would now like to hand the conference over to the management for closing comments. Please go ahead, sir.
I would like to thank all the people who joined on the call. Hope that we are able to answer all your questions. For any further queries, you may get in touch with us or Mr. Deven Dhruva from SGA. We will be happy to address all your queries. Thank you, Moderator, and see you soon.
Thank you, sir. On behalf of Electronics Mart India Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.