💰 Financial Performance

Revenue Growth by Segment

Total revenue grew 4.5% to INR 1,114.95 Cr in FY25. Segment performance was led by Retail, which surged 84% to INR 173.6 Cr. E-Commerce grew 6.9% to INR 284.4 Cr, while Exports declined 26.3% to INR 147.9 Cr due to a strategic shift toward higher-margin domestic retail.

Geographic Revenue Split

The company operates across 11 states with a primary focus on North and East India, specifically West Bengal, Delhi, Uttar Pradesh, and Haryana. Domestic operations contribute the vast majority of revenue following the 26.3% reduction in export activities.

Profitability Margins

Gross and operating margins are thin due to the trading nature of the business. PAT margin improved from 0.8% to 0.9% in FY25 and further reached 1.1% in H1FY26. Return on Equity (ROE) stood at 14.03% in FY25 compared to 13.21% in FY24.

EBITDA Margin

EBITDA margin improved by 50 basis points to 2.4% in FY25 (INR 26.72 Cr) from 1.9% in FY24. In H1FY26, EBITDA margin further expanded to 2.5% driven by a richer channel mix and tighter cost controls.

Capital Expenditure

The company invested in expanding its retail footprint by adding 30 new stores in FY25, bringing the total to 52 outlets covering 31,901 sq. ft. As of H1FY26, the count increased to 61 stores. Infrastructure upgrades included a migration to SAP Business One in April 2025.

Credit Rating & Borrowing

CARE Ratings upgraded the long-term bank facilities to CARE BBB+; Stable from CARE BBB; Positive in September 2025. Short-term ratings were upgraded to CARE A2. Total rated bank facilities increased to INR 193.46 Cr (INR 161.46 Cr long-term and INR 32 Cr short-term).

⚙️ Operational Drivers

Raw Materials

As a trading entity, 'raw materials' consist of finished technology goods: Laptops (40%), Mobile Phones (45%), and Computer Peripherals/Accessories (15%).

Import Sources

Sourcing is primarily domestic through direct billing arrangements with Indian subsidiaries of global OEMs, though opportunistic exports suggest some international procurement links.

Key Suppliers

Key suppliers and OEM partners include Samsung, HP, Vivo, Realme, OnePlus, Asus, Lenovo, Oppo, and iQoo.

Capacity Expansion

Retail capacity expanded from 22 stores in FY24 to 61 stores by H1FY26. Total retail space reached 28,694 sq. ft. by September 2025, with an average revenue of INR 80,000 per sq. ft.

Raw Material Costs

Purchase of traded goods represents approximately 95-96% of total revenue. Procurement strategies involve direct billing with OEMs to capture better margins and volume-based incentives.

Manufacturing Efficiency

Not applicable as the company is a distributor/retailer. Efficiency is measured by retail throughput, currently at INR 80,000 revenue per sq. ft.

Logistics & Distribution

Distribution is handled through a network of 3,000+ partners and 13 warehouses across 11 states to ensure nationwide coverage.

📈 Strategic Growth

Expected Growth Rate

25-30%

Growth Strategy

Growth is driven by a 'Volume to Value' shift, reallocating capital from low-margin exports to high-margin domestic retail. The strategy involves aggressive store expansion (9 new stores added in H1FY26 alone) and deepening OEM partnerships for exclusive 'Experience Stores'.

Products & Services

Laptops, desktops, mobile phones, tablets, computer peripherals, and electronic accessories.

Brand Portfolio

Logica (Retail Outlets), Samsung Experience Stores, HP World, and Multi-Brand Outlets (MBOs).

New Products/Services

Expansion into premium electronics and accessories through 10 new Samsung Experience Stores, contributing to the 84% growth in retail revenue.

Market Expansion

Targeting deeper penetration in North and East India. The company expanded from 22 to 61 stores within 18 months.

Market Share & Ranking

Leading regional player in East India (Kolkata-based) for IT hardware distribution and retail.

Strategic Alliances

Preferred partnerships and direct billing arrangements with Samsung, HP, Vivo, and Realme.

🌍 External Factors

Industry Trends

The Indian tech sector grew 5.1% to USD 282.6 billion in FY25. There is a massive shift toward domestic manufacturing, with 99.2% of mobile phones used in India now being locally made, benefiting domestic distributors.

Competitive Landscape

Competes with large-scale distributors and unorganized local retailers. Key advantage is the organized retail format (HP World, Samsung Cafes).

Competitive Moat

The moat is built on 'Direct-to-OEM' relationships and a physical retail footprint of 61 stores which provides an 'omnichannel' advantage over pure-play traders. This is sustainable due to the high entry barriers of establishing deep OEM credit lines.

Macro Economic Sensitivity

Highly sensitive to consumer confidence and disposable income levels, as electronics are discretionary spends. The tech sector's 7.3% contribution to India's GDP provides a favorable macro backdrop.

Consumer Behavior

Shift toward 'experience-led' buying for premium electronics, justifying the expansion of physical experience stores despite e-commerce growth.

Geopolitical Risks

Supply chain disruptions for semiconductor-heavy products (laptops/phones) due to regional conflicts could impact inventory availability.

⚖️ Regulatory & Governance

Industry Regulations

Subject to MeitY regulations on electronics imports and BIS standards for hardware. Compliance with the Companies Act 2013 and SEBI SME listing norms is maintained.

Environmental Compliance

ESG risks are currently noted as 'Not Applicable' by rating agencies for this scale of trading operations.

Taxation Policy Impact

Effective tax rate is consistent with Indian corporate tax standards; PAT of INR 10.51 Cr was recorded on PBT.

Legal Contingencies

Secretarial audit for FY25 reported compliance with applicable laws including Companies Act and SEBI regulations; no major pending litigation values were disclosed.

⚠️ Risk Analysis

Key Uncertainties

Working capital pressure is the primary risk, with negative cash flow from operations of INR 3.46 Cr in FY25 due to aggressive retail expansion.

Geographic Concentration Risk

High concentration in North and East India (4 states). Any regional economic downturn or political disruption in these areas would significantly impact the 61-store network.

Third Party Dependencies

Heavy reliance on the brand strength of HP and Samsung; a loss of 'preferred partner' status would jeopardize the retail business model.

Technology Obsolescence Risk

High risk of inventory obsolescence (49-day cycle) if newer models of smartphones or laptops are launched while old stock remains in the 13 warehouses.

Credit & Counterparty Risk

Receivables turnover ratio of 11.43x indicates moderate credit risk from the 3,000+ dealer network.