Largest mobile phone retail chain in West India and in Maharashtra, and the 3rd largest in India, among our peers, retailing a wide variety of mobile phones, accessories and other electronic items.
Differentiated COFO and FOFO Models with our Local Partners Approach which have helped us scale our operations.
Established track record of operations and understanding of diverse markets, particularly tier II and tier III and beyond cities.
A broad product mix with focus on mobile phones including pre-owned smartphones and a strong procurement model
Consistent track record of financial performance and growth
Experienced promoter and management team with strong domain expertise.
We derive a significant portion of our revenue from operations from retailing mobile phones. During Fiscals 2026, 2025 and 2024 we derived 86.18%, 87.58% and 88.31% of our revenue from operations, respectively, from retailing mobile phones. Any economic slowdown or other factors that affect the mobile phone industry, and accessories and electronic items industries including those that impact or reduce consumers' ability to purchase our products, could adversely impact our business, financial condition, and operating results.
We are significantly reliant on our arrangements with top 10 Suppliers for procuring mobile phones, accessories and other electronic items. The amount of purchase of traded goods from our top 10 Suppliers was 79.09%, 89.42% and 88.38% of our purchase of traded goods during Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively. Failure on the part of the Suppliers to supply, or a delay in supply of traded goods from our top 10 Suppliers, could have an adverse impact on our reputation, business, financial condition, cash flows and results of operations.
We derive a significant portion of our revenue from operations from our stores in the state of Maharashtra. As of March 31, 2026, we had 458 stores in Maharashtra constituting 91.05% of our total stores. During Fiscal 2026, Fiscal 2025 and Fiscal 2024, we derived 89.09%, 92.32% and 94.07% of our revenue from operations from Maharashtra. Accordingly, we are subject to risks arising from changes in political, social and economic conditions of Maharashtra which could have an adverse effect on our business, financial condition, result of operation and cash flow.
We primarily focus on our COFO Model and FOFO Model which have helped us scale our operations, both in terms of number of stores and revenue from operations. The COFO and FOFO Models cumulatively contributed 74.19%, 78.03% and 77.79% of our revenue from operations during Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively. If our franchisee-led COFO and FOFO models are not successful in the future, or do not grow at the same rate or at all, or the stores which we operate under COFO and FOFO models closes, then it may adversely impact our business growth and prospects, financial condition and results of operations.
Our business is working capital intensive, primarily on account of inventory required to be stocked at our stores and warehouses. Our Company proposes to utilize Rs. 2,413.47 million out of the Net Proceeds towards our incremental net working capital requirements for Fiscal 2027 and Fiscal 2028. We may need to obtain additional financing in the normal course of business from time to time as we expand our operations and any failure on our part to effectively manage our working capital requirements may require us to raise additional financing and any inability to do that may result in an adverse effect on our business, revenue from operations and financial condition.
One of our Independent Directors, Asit Chimanlal Mehta is associated with the entities which are associated with securities market. By virtue of his association with the entities which are associated with securities market, he may be subject to certain stringent obligations under securities laws. Any failure to comply with the requirements of securities law may result in proceedings or adverse orders being passed against him which may have an impact on his reputation which could in turn impact our reputation, business and prospects.
Some of our listed peers have historically performed better in relation to certain key performance indicators such as Gross Profit margin, Operating EBITDA Margin, PAT Margin, ROE, ROCE and ROCE (post tax). We cannot assure you that we will in the future perform better than our peers in relation to these key performance indicators or the other key performance indicators disclosed in this Red Herring Prospectus. Accordingly, the investors must rely on their own examinations of our financial and operational parameters as well as the key performance indicators of our Company as well as of our peers for the purposes of investment in this Offer.
Some of our lease / leave and license agreements are not duly stamped and registered in accordance with the requirements of applicable law. As of the date of this Red Herring Prospectus, out of 424 leased properties that we operate, the lease / leave and license agreements for 381 properties require registration. Out of these 381 properties, the lease / leave and license agreements for 299 properties are duly registered, and the lease / leave and license agreements for 82 properties are not registered. Such agreements may not be accepted as evidence in a court of law which may potentially affect our ability to enforce our rights and remedies under these agreements, and we may be required to pay penalties for non-registration and non-payment of or inadequate stamp duty.
Our Company has in the past entered into related party transactions and may continue to do so in the future and we cannot assure you that we could not have achieved more favourable terms if such transactions had not been entered into with related parties and that such transactions will not have an adverse effect on our financial conditions and result of operations.
Our Company's Price to Earnings ratio at the upper and lower end of the Price Band is at a premium as compared to the average Price to Earnings ratio of our listed peers. We cannot assure you that we will in the future perform better than our peers in relation to the Price to Earnings ratio. Accordingly, the investors must rely on their own examinations of accounting ratios of our Company for the purposes of investment in this Offer.
