Whalesbook
Mehul Telecom Ltd. announced its audited financial results for the fiscal year ending March 31, 2026, reporting annual revenue from operations of ₹200.12 crore. This marks a significant 73% increase from ₹115.38 crore in FY25. Profit After Tax (PAT) grew by 71% to ₹9.96 crore, up from ₹5.82 crore in the previous year. EBITDA also saw a substantial rise of 76% to ₹13.64 crore.
The company's performance signifies robust growth and successful scaling. Surpassing the ₹200 crore revenue mark highlights strong market demand and effective expansion strategies. The substantial year-on-year growth in both revenue and profit indicates improved operational efficiency and a positive market reception to its product offerings.
In FY25, Mehul Telecom reported revenue of ₹115.38 crore and PAT of ₹5.82 crore. The company currently operates an 80-store network using a hybrid model that combines Company-Owned Company-Operated (COCO) outlets with Franchise-Owned Franchise-Operated (FOFO) stores.
Mehul Telecom plans to pivot its expansion strategy towards Tier I cities. This move aims to capture new market opportunities and drive the next phase of growth, building on its established presence in Tier II and III markets. The company's diverse product portfolio includes over 1,600 stock-keeping units (SKUs) from major brands.
Executing the expansion into highly competitive Tier I cities could pose challenges. Maintaining margin expansion and profitability amidst increased competition and operational complexities will be crucial. The company must effectively manage its hybrid retail model as it scales.
While specific peer financial data for FY26 is not yet available, Mehul Telecom's 73% revenue growth suggests strong performance relative to general industry trends in the smartphone retail sector. Competitors typically include large format retail chains and online marketplaces.
Key metrics for FY26 include revenue of ₹200.12 crore (up 73% YoY) and PAT of ₹9.96 crore (up 71% YoY). In the second half of FY26, revenue was ₹106.34 crore (up 64% YoY) and PAT was ₹5.19 crore (up 83% YoY). The EBITDA margin for H2 FY26 was 6.78% (up 99 basis points YoY), and the PAT margin was 4.88% (up 50 basis points YoY).
Investors should closely monitor the company's progress in its Tier I city expansion strategy and its ability to sustain profitability and margin improvements. Performance updates on store rollout and sales figures in these new markets will be key indicators.