SS Retail Limited IPO

The company derives a significant portion of its revenue from operations from retailing mobile phones. During the 3 months period ended June 30, 2025, Fiscals 2025, 2024 and 2023 we derived 87.68%, 87.58%, 88.31% and 90.23% of the company's revenue from operations, respectively, from retailing mobile phones. Any economic slowdown or other factors that affect the mobile phone industry, including those that impact or reduce consumers' ability to purchase our products, could adversely impact its business, financial condition, and operating results.

The company is significantly reliant on its arrangements with top 10 Suppliers for procuring mobile phones, accessories and other electronic items. The amount of purchase of traded goods from the company's top 10 Suppliers was 86.93%, 89.42%, 88.38% and 91.96% of its purchase of traded goods during the 3 months period ended June 30, 2025, Fiscal 2025, Fiscal 2024 and Fiscal 2023, respectively. Failures on the part of the Suppliers to supply, or a delay in supply of traded goods from its top 10 Suppliers, could have an adverse impact on our reputation, business, financial condition, cash flows and results of operations.

The company derives a significant portion of its revenue from operations from the company's stores in the state of Maharashtra. As of June 30, 2025, we had 359 stores in Maharashtra constituting 95.48% of its total stores. During the 3 months period ended June 30, 2025, Fiscal 2025, Fiscal 2024 and Fiscal 2023, the company derived 95.25%, 96.69%, 97.01% and 97.01% of the company's revenue from operations from Maharashtra. Accordingly, the company is 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.

The company primarily focus on our COFO Model and FOFO Model which have helped it scale the company's operations, both in terms of number of stores and revenue from operations. The COFO and FOFO Models cumulatively contributed 72.05%, 78.03%, 77.79% and 74.07% of its revenue from operations during the 3 months period ended June 30, 2025, Fiscal 2025, Fiscal 2024 and Fiscal 2023, respectively. If the company's franchisee-led COFO and FOFO models are not successful in the future or do not grow at the same rate or at all then it may adversely impact its business growth and prospects, financial condition and results of operations.

The company derives a significant portion of its revenue from operations from tier II and tier III and beyond cities. Tier II cities and tier III and beyond cities cumulatively contributed 70.43%, 73.90%, 74.99% and 75.24% of our revenue from operations during the 3 months period ended June 30, 2025, Fiscal 2025, Fiscal 2024 and Fiscal 2023, respectively. The company's inability to operate and grow its business in the company's existing geographies (in particular tier II and tier III and beyond cities) or to expand its operations in newer geographies may have an adverse effect on our business, financial condition, result of operation, cash flow and future business prospects.

The company is dependents on the recognition and reputation of its proprietary brand name SS Retial and 3 primary brands i.e., SS MOBILE, THE MOBILE SPACE and MOBILE EXCHANGE WALA, Any harm to the company's proprietary name and its brands may adversely affect the company's business, reputation, financial condition and results of operations.

The company's business is working capital intensive, primarily on account of inventory required to be stocked at its stores and warehouses. The Company proposes to utilize Rs. 2,015.47 million out of the Net Proceeds towards its incremental net working capital requirements for Fiscal 2027 and Fiscal 2028. The company may need to obtain additional financing in the normal course of business from time to time as we expand its operations and any failures on the company's part to effectively manage its 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.

The company depends on its ability to identify suitable locations for new stores on commercially acceptable terms and open new stores. Our ability to open and operate new stores depends on several factors, including its internal research and standard operating procedures in relation to identifying suitable locations and opening the relevant format of stores (i.e., based on the size of the store), the availability of suitable locations, acceptable rental costs, regulatory approvals, competitive dynamics, customer preferences, and overall economic conditions. If the company is unable to identify, finalise or acquire suitable locations for new stores, then it may adversely affect its expansion and growth plans. Further, there can be no assurance that the opening of new stores will result in increased sales or profitability.

The company has had instances of delays in payments of statutory dues by the Company. Any delays in payment of statutory dues in future may attract financial penalties from the respective government authorities and in turn may have an adverse impact on its financial condition and cash flows.

The company intend to utilise Rs. 124.53 million from the Net Proceeds to meet its capital expenditure requirements for opening 57 stores in Fiscal 2027 and 58 stores in Fiscal 2028 and additional stores in Fiscal 2027 and Fiscal 2028 through the company's internal accruals and borrowings. The company has not yet identified the precise locations at which the company will open these new stores. There can be no assurance that the company will be able to open these stores within the estimated cost and the time frame.