Can SS Retail IPO deliver long-term growth for high-risk investors?
SS Retail plans a ₹360 crore IPO to fund expansion and working capital needs. The company's revenue and profit saw significant annual growth between FY24 and FY26. Geographic concentration in Maharashtra and supplier dependence present key busin...
SS Retail, a multi-brand retail chain, plans to raise ₹360 crore through a fresh issue to fund capital expenditure and working capital requirements.
ET Intelligence Group: SS Retail, a multi-brand retail chain, plans to raise ₹360 crore through a fresh issue to fund capital expenditure and working capital requirements. It will also raise ₹140 crore through an offer for sale. The promoter group's stake will fall to 64.9% after the IPO from 75.7%. Around 89% of the revenue comes from Maharashtra, signalling geographic concentration. The company procures half of its inventory from top four suppliers, denoting heavy dependence. Around 86% of the sales are derived from mobile phone sales. The business is inventory-intensive requiring significant working capital and has strong competition from various stores such as Reliance Digital, Croma, Vijay Sales, Amazon and Flipkart. Given these factors, investors may wait to see the success of its efforts to improve geographic reach and sustainability of financial performance.
Business
Incorporated in 2016, SS Retail 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. The company offers products such as mobile phones, pre-owned smartphones, accessories, televisions, laptops and tablets, along with ancillary services such as mobile protection plans. As of March 2026, it operated 503 stores in India, of which 458 were in Maharashtra.
Between FY24 and FY26, revenue from operations increased 39.6% annually to ₹2,351 crore and net profit jumped 49.2% annually to ₹59.3 crore. Operating profit before interest, tax, depreciation and amortization (EBITDA) rose 48.8% to ₹125.1 crore during the same period. EBITDA margin improved to 5.3% in FY26 from 4.7% in FY24. Cash flow from operations grew to ₹32.5 crore in FY26 from 1.4 crore in FY25 and cash flow deficit of ₹4.9 crore in FY24. Net debt grew to ₹133.1 crore in FY26 from ₹78 crore in FY24.
Considering the post-IPO equity and FY26 net profit, the company demands price-earnings multiple of 53. It does not have any direct peers. Electronics Mart India, which retails white goods and mobile phones, trades at a trailing 12-month P/E of around 35 and FY26 P/E of 67.
