SS Retail

The Indian mobile-phone market is increasingly driven by replacement and upgrade purchases rather than unit-volume expansion. Consumers are moving toward higher-ASP smartphones with 5G, AI, better cameras and premium features, which supports value growth even when shipments remain relatively flat.

• India's mobile-phone market was approximately INR 3,675 Bn in FY26 and is projected to reach INR 5,198 Bn by FY30 at about 9.2% CAGR

• The broader mobile phone and accessories market is projected to grow at about 9.8% CAGR from FY26 to FY30

• Premium and entry-premium segments are growing faster than mass-budget categories, supported by EMI availability and consumer trading-up

• SS Retail derives 86.2% of FY26 revenue from mobile phones, making premiumisation and replacement cycles directly relevant to revenue growth

Rising disposable income, digital adoption and financing access are expanding smartphone consumption beyond metros. Organised regional retailers can benefit from local market knowledge, smaller high-turnover formats and physical customer support in cities where customers still value in-store product experience./

The key drivers are:

• Tier I and Tier II mobile-phone markets are projected to grow around 10.0% and 10.1% CAGR, respectively, from FY26 to FY30; Tier III and beyond is projected near 9.2%

• Approximately 52% of SS Retail's FY26 stores were in Tier III and beyond cities, with another 18% in Tier II

• The Company increased store count from 236 in FY24 to 503 in FY26, a 46.0% CAGR

• Organised CDIT retail share is projected to increase from about 47% in FY26 to 51% by FY30

No-cost EMI, quick credit approval, exchange programs and certified pre-owned devices reduce the upfront affordability barrier for smartphones. These tools are particularly relevant for aspirational and value-conscious consumers and can increase conversion and transaction values.

• India's pre-owned smartphone market reached about INR 880 Bn in FY26 and is projected to reach INR 1,419 Bn by FY30 at 12.7% CAGR

• SS Retail's Mobile Exchange Wala revenue increased from INR 51.5 Cr in FY24 to INR 169.3 Cr in FY26

• The Company's stores host financing kiosks offering multiple EMI options, including no-cost EMI and quick in-store approvals

• The industry report notes that Mobile Exchange Wala shop-in-shop stores have generated higher sales per square foot than stores without the format

Mobile and consumer-electronics retail is structurally competitive and price transparent. Physical retailers compete with national chains, regional chains, brand-owned stores and e-commerce platforms, while rapid model launches and changing technology can create inventory obsolescence. Retail margins can also be pressured by discounting, OEM pricing policies and promotional intensity.

The key risk pointers are:

• E-commerce platforms such as Amazon and Flipkart can use large seasonal discounts and convenience to pressure offline pricing

• Smartphone technology changes quickly; slow-moving models may require discounting and can increase inventory-loss risk

• The market remains price-sensitive, particularly in budget and mass segments, limiting retailers' ability to expand margins

• Supply chains remain exposed to imported electronic components, launch allocations and vendor / distributor availability

Policy support is indirect but relevant through domestic electronics manufacturing, digital connectivity, formalisation of retail and financing / infrastructure development. These initiatives can increase device availability, improve supply-chain efficiency and expand the addressable customer base in smaller cities.

• Electronics Manufacturing Clusters (EMC 2.0): The EMC 2.0 initiative focuses on creating world-class infrastructure and shared logistics ecosystems. By clustering manufacturers, component suppliers, and logistics providers together, this policy drastically improves supply-chain efficiency. For retail chains, this translates to faster product turnaround times, reduced transport costs, and streamlined distribution networks

• Digital India & Broadband Expansion: The Digital India mission and the rapid expansion of rural broadband connectivity act as massive demand drivers. By bringing high-speed internet to tier-2, tier-3, and rural markets, the government is accelerating smartphone adoption. This expanding digital network continuously broadens the addressable customer base for mobile devices and digital services

• GST & Organized Retail Infrastructure: Goods and Services Tax (GST) reforms have accelerated the formalisation of the retail sector. This shift penalises fragmented, informal retail while rewarding compliant operations. Combined with infrastructure development, it enables organised retail chains to scale efficiently, maintain transparent financial ecosystems, and build robust, legally compliant supply networks