Infiniti Retail, the operator of the Croma electronics chain, achieved an operating profit of ₹159 crore in FY26, marking a turnaround from previous operating losses. Total income grew 13% to ₹21,784 crore as the company refined its store network. While net losses narrowed to ₹614 crore, the company faces persistent sector headwinds including higher import costs and softer consumer demand for electronics.
Infiniti Retail, the Tata Group subsidiary that operates the Croma electronics chain, has reported an improvement in its financial performance for the fiscal year ended March 2026. The company reached operational profitability, marking a shift as it balances network expansion with cost management strategies.
For FY26, the company recorded an operating profit of ₹159 crore, a recovery from the ₹235 crore operating loss sustained in FY25. Net losses also narrowed to ₹614 crore, down from ₹1,091 crore in the previous fiscal year. This financial improvement was supported by a 13% increase in total income, which reached ₹21,784 crore.
The improvement in operational results follows a strategic review of the company's retail footprint. In the last fiscal year, management closed 35 stores that were identified as unviable due to their location and performance benchmarks. This pruning of the physical network is part of a broader effort to improve efficiency across the business.
Looking ahead, the company plans to open 45 new outlets. This expansion will follow a dual-format strategy, combining large-format stores that carry a wide range of home appliances with a new concept called 'Edge by Croma.' These smaller, neighbourhood-focused stores are designed to increase local market penetration, with a specific emphasis on mobile devices and personal gadgets.
Despite the improved operating performance, the broader electronics retail sector continues to face challenges. The industry is navigating significant demand volatility, with smartphone volumes reportedly dipping by over 10% this year. This decline is largely linked to retail price increases of 30% to 40% on many devices.
Operational margins are also under pressure from external factors. The company is managing a complex supply chain environment, affected by memory-chip shortages and rising freight costs resulting from ongoing geopolitical conflicts in West Asia. Furthermore, the weakening value of the Indian rupee against major currencies has increased the cost of importing finished goods and critical components, such as panels for televisions and other appliances.
These macroeconomic pressures remain a primary concern for the sector. While the company's cost-optimization measures have shown results in the latest fiscal year, the path to sustained profitability will depend on its ability to navigate these input cost pressures and fluctuations in consumer spending. Investors and industry observers will likely monitor the performance of the new 'Edge by Croma' store format and the company's ability to maintain margin stability in the coming quarters.