Electronics Mart India Expects Better Q1 Despite Weak AC Demand

Electronics Mart India Ltd. is expecting a higher single-digit growth in its large appliances segment for the first quarter of the current financial year despite a slowdown in air-conditioner sales.

Large appliances, such as washing machines, refrigerators and televisions, have witnessed strong demand, helping to offset the decline in AC sales caused by unfavourable weather conditions, Chief Financial Officer Premchand Devarakonda said in an interview with NDTV Profit on Friday.

The large appliances segment accounts for about 45% of the consumer electronics retailer's revenue.

"AC demand has slowed down drastically compared to last year. In fact, during the first quarter of last year, the demand was remarkable.

"In anticipation of similar demand this year, I think everyone is prepared. We were also ready to cater to the market's needs, but unfortunately, the weather didn't support us," he said.

Despite the challenges, Devarakonda believes that overall Q1 FY26 will surpass the performance of the previous fiscal's same quarter.

The drop in AC sales was compensated, at least partially, by increased demand for other larger appliances and panels, he said. "So, in that area, we were able to recoup quite a bit."

"Overall, I believe this quarter will end up better than the previous one. That's what I’m seeing right now," the CFO said.

Commenting on the recent fire incident that took place at the company's godown in Andhra Pradesh’s Guntur on May 29, the CFO was hopeful that it would not lead to any significant loss.

If the claim is settled before the company announces its Q1 results, the home appliances retailer may not register any significant loss, Devarakonda noted.

“All the stocks which we stored were gutted. They are already completely covered by the insurance and the insurance survey is underway. And hopefully, we'll get a full recovery from the insurance company," he said.

Shares of Electronics Mart closed 1.02% higher at Rs 148.9 apiece on the BSE on Friday, compared to a 1.29% advance in the benchmark Sensex.