SS Retail is a multi-brand retail chain for mobile phones, accessories and other electronic items, with operations across Maharashtra, Karnataka, Madhya Pradesh, Goa and Gujarat. It primarily focuses on tier II and tier III and beyond cities and, as of March 31, 2026, operated 503 stores (458 stores in Maharashtra) across 215 cities, covering approximately 2,41,597 sq. ft.

As of July 31, 2026, its retail network had expanded to 536 stores covering approximately 2,60,597 sq. ft. The company also operates 5 ‘smartphone cafe’s’ which are exclusive brand outlets (EBOs) inMaharashtra, 2 of which are located in Kolhapur, 2 in Pune and 1 in Sangli, for retailing mobile phones of areputed brand.

The company has 1 owned warehouse and 2 leased warehousewhich are strategically located in Kolhapur and ChhatrapatiSambhajinagar in Maharashtra, and it has arrangements with 4 logistics service providers located in Mumbai,Pune and Nagpur in Maharashtra and Bhopal in Madhya Pradesh.

The company operates under its proprietary brands ‘SS Mobile’, ‘Mobile Exchange Wala’ and ‘The Mobile Space’ through a combination of company-owned and franchisee-operated store formats. Its product portfolio includes mobile phones, pre-owned smartphones, accessories, televisions, laptops and tablets, along with ancillary services such as mobile protection plans, EMI facilities, anti-theft software and mobile recharge services.

During Fiscal 2026, the company acquired 51.04% shareholding in Olineo Nexus India Private Limited(Olineo), adding 34 stores to its network and with effect from January 27,2026 Olineo became the subsidiary of the company.

Object of the offer

The offer consists of both a fresh issue and an offer for sale component (OFS). The fresh issue will include 84,90,566 shares, aggregating up to Rs 360.0crore at the upper price band of Rs 424. OFS includes 33,09,693 shares of Rs 10, aggregating up to Rs 140.0 crore at upper price band of Rs 424.

The funds of Rs 14.53 crore will be used towards the capital expenditure for setting up of new stores in Fiscal 2027 and Fiscal 2028.The company intends to open 120 new stores each in FY2027 and FY2028 of which the company has opened 33 new stores during April 1, 2026, to July 31,2026. Rs 241.35 crore towards part funding of the incremental working capital requirements and the balance to be used for general corporate purposes.

Strengths

Largest mobile phone retail chain in West India and in Maharashtra, and the 3rd largest in India, among its peers, retailing a wide variety of mobile phones, accessories and other electronic items.

The company follows a scalable retail model comprising company owned company operated (COCO), company operated franchisee owned (COFO) and franchisee owned and franchisee (FOFO) formats and uses local franchisee partnerships to expand its presence in regional markets.

Established track record of operations and understanding of diverse markets, particularly tier II and tier IIIand beyond cities.

A broad product mix with focus on mobile phones including pre-owned mobile phones and a strong procurement model.

Experienced promoter and management team with strong domain expertise. The company is led by Siddharth Gunvant Shah, who has significant experience of more than24 years in the mobile phone retail industry.

Weaknesses

Economic slowdown or other factors that affect the mobile phone industry could adversely affect business.

Failure on the part of the suppliers to supply, or a delay in supply of traded goods from top 10 suppliers could impact operations.

Subject to risks arising from changes in political, social and economic conditions of Maharashtra.

Operations are working capital intensiveprimarily on account of inventory required to be stocked atits stores and warehouses.

High competition in the budget and mid-segment may lead to price wars and frequent discounting, resulting in margin pressure despite high sales volumes.

Heavy discounting during major online sales events may result in seasonal concentration of smartphone demand and intensify competition between online and offline channels.

Inability to identify, finalise or acquire suitable locations for new stores may adversely affect expansion and growth plans.

Had negative cash flows in the past.

Valuation

Consolidated sales were up by 47.1% to Rs 2351.03 crore in FY2026. Increase in revenues was primarily due to increase in stores from 347 stores as at March 31,2025 to 503 stores as at March 31,2026 (Includes 34 stores acquired pursuant to the acquisition of Olineo).Operating profit margin (OPM) expanded from 5.03% to 5.32%, leading to a 55.6% increase in operating profit to Rs 125.15 crore. Other income declined 10.2% to Rs 1.82crore. Interest cost inclined 29.8% to Rs 16.47 crore and depreciationcost inclined by 71.9% to Rs 29.05 crore. PBT was higher by 54% to Rs 81.45 crore as against Rs 25.43crore.PAT was higher by 48.7% to Rs 59.28 crore as against Rs 39.86 crore in FY2025.

At the higher price band of Rs 424, the offer is made at a P/E of 53.18 times FY2026 EPS (of Rs 8).

Listed peers are Aditya Vision, Electronics Mart India, Jay Jalaram Technologies, Fonebox Retail and Bhatia Communications & Retail (India). Aditya Visiontrades at 55.7 times TTM P/E, Electronics Mart India trades at 37.1 times TTM P/E,Jay Jalaram Technologies trades at 22.8 times TTM P/E, Fonebox Retail trades at 18.0 times TTM P/E and Bhatia Communications & Retail(India) trades at 22.2 times TTM P/E. The OPM and ROE stood at 5.32% and 30.6%, respectively, in FY26. These were 9.0% and 18.7% for Aditya Vision, 6.0% and 6.24% for Electronics Mart India, 1.8% and 11.6% for Jay Jalaram Technologies, 3.4% and 17.9% for Fonebox Retail and 4.2% and 15.2% for Bhatia Communications & Retail (India), respectively.