Vinit Mobile Ltd Management Discussions

Overview

The purpose of this report is to present Managements insights into the external environment and the industry, alongside discussions on strategy, operational and financial performance, key developments in human resources and industrial relations, as well as an assessment of risks, opportunities, and the adequacy of internal control systems during the Financial Year 2025-26. It should be reviewed in conjunction with the Companys financial statements, including schedules, notes, and other sections of the Integrated Report and Annual Accounts for 2025-26. The Companys financial statements have been prepared in accordance with Accounting Standards

(‘AS), adhering to the requirements specified under the Companies Act, 2013, as amended, and regulations prescribed by the Securities and Exchange Board of India (SEBI).

ECONOMIC OVERVIEW

1. Global Economic Outlook

The global output is expected to grow by 3.2% in CY 2025, down from 3.3% in CY 2024, and moderating to 3.1% in CY 2026. This deceleration reflects a combination of lingering trade tensions, policy uncertainties, and region-specific structural challenges.

Global inflation is expected to ease, with headline inflation forecast at 4.2% in CY 2025 and 3.7% in CY 2026, supported by tighter monetary policies in advanced economies, improving labour market conditions, and the gradual resolution of supply-side disruptions. Global trade growth is set to moderate to 3.6% in CY 2025 and further to 2.3% in CY 2026, reflecting the impact of elevated trade barriers and geopolitical instability.

Note: Advanced Economies and Emerging & Developing Economies are as per the classification of the World Economic Outlook (WEO). This classification is not based on strict criteria, economic or otherwise, and it has evolved over time. It comprises of 40 countries under the Advanced Economies including the G7 (the United States, Japan, Germany, France, Italy, the United Kingdom, and Canada) and selected countries from the Euro Zone (Germany, Italy, France etc.). The group of emerging market and developing economies (156) includes all those that are not classified as Advanced Economies (India, China, Brazil, Malaysia etc.)

Advanced Economies are projected to slow, with GDP growth at 1.6% in CY 2025 and CY 2026. The United States is expected to expand by 2.0% in CY 2025 and 2.1% in CY 2026, supported by resilient consumer spending despite fiscal and trade pressures. The Euro Area faces subdued growth at 1.2% in CY 2025, with Germany at 0.2% and France at 0.7%, amid lingering trade disruptions and domestic challenges. Japans growth is forecast at 1.1% in CY 2025, reflecting weak domestic demand, while the United Kingdom is projected to grow at 1.3%.

Emerging Markets and Developing Economies are expected to maintain moderate expansion, with GDP growth of 4.2% in CY 2025 and 4.0% in CY 2026. Chinas growth is projected at 4.8% in CY 2025, slightly higher than previously expected, constrained by real estate sector weakness and soft consumer demand. India is projected to grow at 6.6% in CY 2025 and 6.2% in CY 2026, driven by robust rural consumption, infrastructure investment, favourable demographics, and digitalisation. Other key economies, including Brazil (2.4%) and Russia (0.6%) in CY 2025, are expected to grow more slowly amid structural and geopolitical challenges.

Global commodity prices are anticipated to remain volatile. Oil prices are projected to decline by 12.9% in CY 2025, following a 1.8% decline in CY 2024, before recovering moderately in CY 2026. Non-fuel commodities are expected to increase by 7.4% in CY 2025, driven by agricultural and industrial demand.

Overall, the global economic outlook indicates slowing growth, easing inflation, and continued uncertainty due to geopolitical tensions and trade fragmentation. Nevertheless, India stands out as a relative growth leader among major economies, supported by macroeconomic stability, demographic advantages, and continued investment-led expansion.

2. Indias Macroeconomic Scenario 2.1 Gross Domestic Product (GDP)

Real GDP is estimated to grow by 7.4% in FY 2025 26, improving from a growth rate of 6.5% in FY 2024 25. This momentum is also evident on a quarterly basis, with real GDP recording a robust growth of 8.2% in Q2 of FY 2025 26 compared to the growth rate of 5.6% during Q2 of FY25, whereas nominal GDP has witnessed a growth rate of 8.7% in Q2 of FY 2025-26. Source MOSPI, press release First advance estimates of Gross domestic product posted on January 07th,2026.

In its latest Economic Outlook, the OECD noted that India remains one of the fastest-growing major economies, supported by strong investment activity and resilient services. OECD highlighted that Indias GDP is projected to grow by 6.7% in fiscal year 2025-26, 6.2% in 2026-27 and 6.4% in 2027-28. Despite some likely impact of the US tariff on Indian exports, private consumption will be supported by rising real incomes as inflation remains soft and low consumption/indirect taxes (GST). Going forward, investment will be sustained by declining borrowing costs and strong public capital expenditure. Current low headline inflation is projected to gradually converge towards the 4% target. Notably, Indias Headline Inflation drops to 0.25 % in October 2025.

Indias Economic Growth Momentum Remains Strong - Surpassed USD 4 Trillion.

In June 2025, India became the fourth-largest economy in the world and retained its position as the fastest-growing major economy. The country is projected to become the worlds third largest economy by 2030, with an estimated GDP of USD 7.3 trillion.

Source: PIB, Press Release - India Becoming an Economic Powerhouse posted on June 16, 2025

India achieved a significant milestone by overtaking Japan to become the third most powerful nation in the Asia-Pacific region, as per the Asia Power Index 2024. Indias overall score rose to 39.1, reflecting a 2.8-point increase from the previous year, driven by growing influence across economic, military, and diplomatic dimensions.

Source: PIB, Press Release - India becomes 3rd Most Powerful Nation in Asia, Surpasses Japan in Asia Power Index posted on September 24, 2024.

Key factors behind Indias rise include its strong economic performance, expanding and youthful workforce, and increasing strategic engagement across the region. Indias Economic Capability improved significantly, supported by its position as the worlds third-largest economy in terms of purchasing power parity (PPP). Additionally, a notable increase in its Future Resources score highlights the demographic advantage that is expected to sustain its growth trajectory in the coming years.

2.2 Consumer Price Index (CPI)

The year-on-year inflation rate, based on the All-India Consumer Price Index (CPI), stood at a 1.33% (Provisional) in December 2025, compared to December 2024. This represented an increase of 62 basis points in headline inflation of December 2025 in comparison to November 2025. In contrast, October 2025 over October 2024 is 0.25% (Provisional). There is decrease of 119 basis points in headline inflation of October 2025 in comparison to September 2025. It is the lowest year-on-year inflation of the current CPI series.

Urbanization, too, is transforming Indias socio-economic fabric. The urban population rose from 424.96 million in 2014 (32.38% of total population) to 522.93 million in 2023 (36.36%), and further to approximately 534.91 million in 2024 (36.87%), according to World Bank estimates. This rapid growth in urban areas underscores the need for sustainable urban planning, investment in infrastructure, and development of smart cities to accommodate and benefit from the shifting population dynamics.

3. Industry Overview Indian Mobile phone and Accessories Retail distribution market

Mobile Phones & Accessories: India is the Second Largest Mobile Phones Producer in the World

Indias rise to the worlds 2nd-largest mobile phone manufacturer. Indias mobile phone production has shown strong and sustained growth over the past few years, increasing from USD 30.00 billion in 2020-21 to USD 59.12 billion in 2024-25. This growth is expected to accelerate sharply, with production projected to reach USD 124.06 billion by 2029-30, more than doubling in five years growing at a CAGR of 15.98%. The expansion is driven by rising domestic demand, increasing exports, supportive government policies such as open network for Digital Commerce (ONDC) and Indias emergence as a major global manufacturing hub. The trend also reflects improvements in technology adoption, and investments in production infrastructure, positioning India as a key player in the global mobile phone industry.

The Indian mobile market has shifted from Xiaomi Samsung dominance to a more fragmented landscape. Xiaomi and Samsung have steadily lost share, while Vivo and Realme have gained strongly, driven by aggressive pricing, offline penetration and youth-focused positioning.

Oppo has remained stable, while OnePlus and Apple are gradually expanding in the premium segment, reflecting rising consumer upgrading. The ‘Others segment is rebounding suggesting space for niche and new entrants. Overall, the market is now multi-polar and highly competitive, with mid-range and premium growth reshaping dynamics.

4. Price Range Analysis and Top Brands

4.1 Consumer Behaviour in Tier I & Tier II/III Cities- Indian Mobile Phone and Accessories

In 2025, Indian Tier I and Tier II/III cities are witnessing a strong shift toward premiumization and personalization in both mobile phones and accessories, driven by rising disposable incomes and aspirational lifestyles. Consumers increasingly value quality, advanced features (such as fast processing, enhanced cameras, and fast charging), performance, and style, while remaining somewhat price conscious. Mobile phones are viewed not just as communication tools but as lifestyle and productivity devices, encouraging higher spending on complementary accessories.

Aspiration Meets Affordability (Mobile Phones & Accessories): Consumers are willing to spend on higher-value smartphones and accessories to enhance their experience, viewing both as necessities that complement their lifestyle. Premium devices and high-quality accessories are increasingly seen as aspirational purchases, even while consumers remain somewhat price conscious.

Personalization & Protection: There is a strong desire to protect, stylize, and personalize devices, driving purchases of smartphone cases, skins, unique accessories, and complementary add-ons like smart wearables.

Value-Driven Decisions: While premiumization is growing, price remains an important factor, particularly for accessories like wired earphones and basic chargers. Tier II/III cities are highly price-sensitive, influencing the volume demand for budget-friendly options, though premium items are gradually gaining traction.

Tier I Cities: Consumers in Tier I cities prefer premium smartphones and high-end accessories, leveraging maturing e-commerce platforms, quick commerce, and offline retail channels. Focus is on high-end, niche, and lifestyle-oriented products that combine functionality, style, and innovation.

Tier II/III Cities (e.g., Lucknow, Indore, smaller towns): Tier II cities drive both volume and emerging value growth, adopting premium and aspirational smartphone and accessory trends seen in Tier I markets while retaining local preferences and higher price sensitivity. Tier III markets drive high-volume demand for affordable smartphones and accessories such as wired earphones, protective cases, and power banks, while gradually embracing premium products like fast chargers, Bluetooth audio devices, and smart wearables as incomes, awareness, and e-commerce access improve.

The future of mobile marketing in India will be shaped by technological advancement, consumer behaviour shifts, and improved infrastructure. Following will be market drivers:

1. AI-Powered Mobile Chatbots: Automating hyperlocal support, inquiries, and promotions.

2. Voice Commerce: Enabling users to search and shop using voice commands in regional languages.

3. 5G Network Adoption: Enhancing the speed and interactivity of mobile ads and apps.

4. Augmented Reality (AR) Experiences: Transforming how brands in retail, real estate, and fashion engage with mobile users.

5. Progressive Web Apps (PWAs): Offering app-like performance without needing to download a traditional app

5. Regional Competition

The Indian mobile phone & accessories retail distribution market is likely experiencing robust growth in 2025, driven by strong demand for Mobile phones, wearables, chargers, and cases. Major players driving competition include Apple, Samsung, boAt, Xiaomi, Ambrane, OnePlus, Portronics, Mivi, Zebronics, and Boult Audio. The market is vastly regionalized, with premium demand in the South and price-sensitive, high-volume sales in the East.

Regions/States	Mobile Phones	Accessories
South India (TN, Karnataka, AP, Kerala)	Premium-focused market: Apple iPhone (latest models), Samsung Galaxy smartphones. South India has the highest concentration of high-income urban consumers, tech-savvy users, and strong e-commerce penetration (Flipkart, Amazon, Reliance Digital). Retail chains in Bangalore, Chennai, and Hyderabad actively promote premium devices with bundled offers.	High-end and specialized accessories dominate: Spigen and UAG premium protective cases, boAt and Mivi high- fidelity audio devices, Portronics wireless chargers, Boult Audio earphones, power banks. Demand is driven by quality- conscious consumers and lifestyle-oriented products. Offline retail and online marketplaces both play a strong role.
West India (Maharashtra, Gujarat, MP, Rajasthan)	Balanced premium and mid-range market: Samsung Galaxy S/Note series, Vivo & Oppo mid-range smartphones. Mumbai and Pune show strong premium adoption, while Gujarat and Rajasthan lean more toward mid-range offerings. Retail chains, online marketplaces, and electronics hubs in Mumbai, Pune, and Ahmedabad drive competitive promotions.	Accessories focus on quality & style: Leather cases, fast chargers, premium headphones, power banks, and boAt, Mivi, Portronics, JBL products. There is a growing demand for stylish and durable accessories to complement mid-to- premium smartphones. Both online and offline channels are significant.
East & Central India (WB, Assam, Bihar, Odisha, Jharkhand)	Price-sensitive and volume-driven market: Xiaomi, Realme, Samsung entry-level, Lava, Itel. Tier-2 and Tier-3 cities dominate sales. Consumers prioritize functionality and affordability over premium features. Local distributors and	Budget-friendly and local accessories dominate: Tempered glass, basic chargers, earphones, local/unbranded or white-labelled cases. Competition is driven by Ambrane, boAt, Mivi, Zebronics, Boult Audio. Demand is largely influenced by cost-conscious buyers;

6. Retail & Distribution Insights

6.1 Own Stores vs. Franchised Outlets

Aspect	Own Stores	Franchised Outlets
Ownership	Fully owned and operated by the company.	Owned and operated by independent franchisees.
Investment& Cost	High initial capital expenditure, operational costs borne by company.	Lower capital requirement for the company; franchisee bears most setup costs.
Control over Operations	Full control over store operations, staff, branding, and customer experience.	Limited control: company provides guidelines, but franchisee manages daily operations.
Revenue Model	All revenue directly accrues to the company.	Company earns revenue through franchise fees, royalties, or a share of sales.
Brand Consistency	Easier to maintain consistent brand image and service standards.	Risk of inconsistent customer experience across locations.
Market Penetration	Slower expansion due to higher investment.	Faster expansion, especially in smaller towns and emerging markets.
Risk Exposure	Company bears all business risks.	Risk is shared with franchisee; lower financial exposure for the company.
Customer Engagement	Direct relationship with customers; better data collection.	Indirect relationship; depends on franchisee engagement.
Flexibility	Can quickly implement new strategies, promotions, or store layout.	Slower adaptation as franchisees must align with company directives.

6.2 Franchise trends and preferred models

Diversification Beyond Device Sales - Modern mobile retail franchises are no longer limited to selling smartphones. They increasingly bundle services such as device repair, trade-ins, financing, extended warranties, insurance, and sales of accessories like wearables and smart devices. This shift creates multiple revenue streams and helps franchisees adapt to changing customer needs.

Omnichannel Integration - Customers expect a seamless experience across physical stores, websites, and apps. Many mobile franchises now combine ofline retail with e-commerce, click-and-collect models, and mobile apps for payments and upgrades. This integration strengthens customer loyalty while expanding reach.

Customer Experience as a Differentiator - Since pricing for smartphones is often similar across retailers, franchises compete by enhancing service quality. Personalized assistance, loyalty programs, post-purchase support, and quick turnaround times for repairs are key differentiators that boost repeat purchases.

Technology-Driven Operations - Mobile retail franchises use advanced tech tools such as CRM systems, AI chatbots, and IoT-enabled inventory management to streamline operations. Real-time analytics and digital marketing campaigns also help franchises optimize store performance.

Shift Toward Service-Oriented Models - With smartphone replacement cycles getting longer, franchises increasingly rely on repair, upgrade, and trade-in services to sustain profitability. Service-focused models are gaining traction over pure product-sales models.

Tier II & III City Expansion - Franchising is enabling mobile retail brands to expand rapidly into semi-urban and rural areas, where demand for smartphones and affordable internet services is growing. Local franchisees bring market knowledge, reducing operational risk for brands.

6.3 Brands offering highest dealer margins

Brand / Brand Group	Typical Dealer Margin
Oppo / Vivo	16-18%
Xiaomi / Realme	8% 11%, up from 4% previously
Samsung & Apple	8-10% standard
OnePlus / Redmi / Motorola	3% 4%

Source The Economic Times

Oppo and vivo offer the highest ofline dealer margins, especially during festivals, where margins can reach up to 16 18%, although a general range of 8-10% remains common.

Xiaomi and Realme significantly upped their ofline margins to 8 11%, doubling from about 4%, to enhance retailer engagement for their premium push.

OnePlus, Redmi, and Motorola follow a similar low-margin pattern (~3 4%) and are usually less pushed by retailers.

7. Key Revenue Drivers in Mobile Retail Business

Mobile retail outlets operate on a diversified revenue model that allows them to capture income across multiple streams, thereby enhancing business resilience and profitability. The principal sources of income include:

Sale of Mobile Handsets - The primary revenue driver in Mobile retail is the direct sale of mobile phones. Retailers typically procure handsets from authorized distributors or directly through brand partnerships. Profitability is influenced by product mix, prevailing demand trends, brand positioning, and competitive intensity.

Sale of Accessories and Add-ons - Mobile accessories, such as protective cases, screen guards, chargers, earphones, and other peripheral devices, represent a high-margin category. These items are often purchased alongside new handsets, providing an incremental boost to overall revenue while enabling customers to personalize and safeguard their devices.

Service and Repair Offerings - Many mobile retailers provide value-added services such as device repairs and maintenance, ranging from basic screen replacements to advanced hardware or software servicing.

Given the preference of customers for accessible, local repair solutions, this segment contributes to recurring income and fosters customer loyalty.

Trade-ins and Refurbishment Sales - Retailers often undertake trade-in programs wherein customers exchange older devices for credit against the purchase of new models. These pre-owned devices are refurbished and resold at competitive price points, allowing shop owners to tap into the growing demand for affordable, second-hand smartphones.

Financing and EMI Solutions - Mobile shop owners frequently collaborate with banks and non-banking financial companies (NBFCs) to provide financing and instalment options to customers. Such arrangements not only enhance affordability for end-users but also generate additional revenue streams through commissions, processing charges, or interest income.

7.1 Market Drivers in the Context of Mobile Phones & Accessories Retail distribution market Scale Category:

Scale Category:

High = 15 20% impact

Medium = 7 14% impact

Low = 3 6% impact

7.2 Market Threats & Challenges in the Context of Mobile Phones & Accessories Retail distribution market

The Mobile phones & accessories retail distribution market in India while growing rapidly, faces challenges such as intense competition from unorganized channels, pricing pressures, supply chain disruptions, and fast-changing technology trends.

Scale Category:

High = 15 20% impact

Medium = 7 14% impact

Low = 3 6% impact

7.3 Market Threats & Challenges and Impact Assessment

Restraint	1 2	3 4	5 7
	Years	Years	Years
Price competition and margin pressures due to intense rivalry	High	High	Medium
Rapid technology obsolescence in mobiles and accessories	High	High	High
Dependency on OEMs and supply chain disruptions	Medium	High	High
Predominance of grey market and counterfeit products	High	High	High
Regulatory changes in import duties and GST compliance	Medium	Medium	High
High working capital requirement and credit risks from retailers	High	High	High
Uneven demand from Tier II/ III markets	Medium	Medium	High
E-commerce giants bypassing wholesale channels	Medium	High	High
Lack of skilled manpower in modern wholesale operations	Medium	Medium	Medium
Logistics inefficiencies and rising transportation costs	Medium	Medium	High
Vulnerability to global economic cycles and currency fluctuations	Low	Medium	High

Source Infomerics Analytics & Research

7.4 Detailed Commentary on Markets Threats & Challenges

Price Competition and Margin Pressures - The wholesale mobile industry operates on thin margins due to intense competition. Retailers often demand lower prices to stay competitive against e-commerce platforms. As a result, wholesalers are forced to reduce margins, which directly impacts profitability and makes long-term sustainability challenging.

Rapid Technology Obsolescence - Smartphones and accessories have very short product lifecycles. New models launch every 6 12 months, making older stock less attractive. Wholesalers holding large inventories face the risk of devaluation, forcing them to liquidate stock at heavy discounts, which erodes margins.

Dependency on OEMs and Supply Chains - Wholesalers are heavily dependent on Original Equipment Manufacturers (OEMs) and global supply chains. Any delay in production, shipment issues, or geopolitical disruptions (e.g., trade restrictions, component shortages) can cause inventory shortages, affecting sales cycles and customer relationships.

Grey Market and Counterfeit Products - The prevalence of parallel imports (grey market goods) and counterfeit accessories creates unfair competition. These products are often sold at lower prices without proper taxes, warranties, or quality checks, making it harder for authorized wholesalers to compete while also damaging brand trust.

Regulatory Changes (Import Duties & GST) - Government policies regarding Mobile imports, GST structures, and compliance requirements frequently change. For example, an increase in import duties can raise procurement costs. Wholesalers must constantly adapt to these regulations, which increases administrative and operational burdens.

High Working Capital & Credit Risks - Wholesalers often provide credit to retailers to maintain business relationships. This exposes them to delayed payments or even defaults, creating liquidity problems. The high cost of capital in India further aggravates cash flow constraints, especially for small and mid-sized wholesalers.

Uneven Demand in Tier II/III Markets - Although mobile penetration is increasing in smaller cities, demand patterns remain inconsistent due to income disparities, seasonal purchases (festivals, sales events), and consumer preferences. Wholesalers face challenges in predicting demand accurately, leading to stock mismatches.

E-commerce Giants Bypassing Wholesale - Online marketplaces like Amazon, Flipkart, and brand-exclusive e-stores are increasingly selling directly to consumers. This bypasses traditional wholesale networks, reducing the relevance of wholesalers. Some OEMs also prefer exclusive online launches, further cutting wholesale participation.

Shortage of Skilled Workforce - Wholesale operations today require tech-savvy staff capable of managing digital invoicing, ERP systems, inventory tracking, and online order processing. However, the industry faces a shortage of skilled manpower, leading to inefficiencies and slower adoption of modern wholesale practices.

Logistics Inefficiencies & High Costs - Rising fuel prices, poor road connectivity in remote areas, and lack of reliable warehousing increase logistics expenses. Additionally, last-mile delivery remains a challenge in rural India, making distribution slower and costlier for wholesalers.

Vulnerability to Global Economic Cycles & Currency Fluctuations - Since most mobile phones and accessories are imported, fluctuations in foreign exchange rates directly affect procurement costs. Economic slowdowns or global crises (e.g., semiconductor shortages, trade restrictions) also disrupt supply, increasing risks for wholesalers dependent on imports.

8. INDIAN ECONOMY

India maintained its strong growth trajectory during FY 2025-26, with real GDP growth estimated at 7.7%, further consolidating its standing among the fastest-growing major economies globally. The economy demonstrated considerable resilience despite an uncertain international environment, supported by robust domestic demand, favourable demographic trends, continued policy measures and broadly stable macroeconomic fundamentals.

Domestic consumption remained a key contributor to economic expansion. Rural spending gained momentum on the back of healthy agricultural performance and supportive monsoon conditions. At the same time, urban consumption continued to hold firm, aided by formal employment growth, improving household earnings and the availability of consumer credit. These factors contributed to a 7.7% rise in Private Final Consumption Expenditure (PFCE) during FY 2025-26. Higher household incomes, improved consumer sentiment and wider access to organised retail and financing options further supported consumer spending. Consequently, demand across discretionary segments, including consumer electronics, durable goods and home appliances, remained healthy and contributed to the continued expansion of the organised retail market.

India also continued to emerge as an attractive destination for global manufacturing. Efforts by international companies to diversify their supply chains, together with policy continuity and the availability of a large skilled workforce, supported manufacturing activity and encouraged foreign investment. Concurrently, sustained government spending on infrastructure, transportation and logistics helped improve supply-side capabilities, reduce operational inefficiencies and strengthen Indias long-term competitiveness.

Notwithstanding these favourable trends, certain external and domestic factors continued to present risks to the economic outlook. Movements in crude oil prices, food inflation and geopolitical conditions could influence overall price stability, trade flows and the countrys external balances.

India Real GDP Growth Trend (%)

Year	Global Real GDP Growth
2025 E	7.1%
2026 P	7.7%
2027 P	6.6%

India is expected to maintain its growth momentum over the medium term, supported by robust domestic consumption, continued government-led capital expenditure, structural policy reforms and favourable demographic trends. Ongoing development across infrastructure, manufacturing and digital ecosystems is expected to improve productivity, expand economic capacity and create a stronger foundation for sustainable long-term growth.

The near-term outlook, however, remains subject to external factors, including geopolitical developments, changes in global trade patterns and fluctuations in commodity prices. Despite these uncertainties, Indias relatively strong macroeconomic fundamentals, expanding domestic market and consumption-driven economic structure are expected to provide resilience and support continued economic expansion in the years ahead.

9. INDUSTRY OVERVIEW

Indias consumer durables and electronics retail industry continued to expand its role within the broader economy, contributing approximately 0.6% to GDP. The sectors long-term growth prospects remain favourable, with the market expected to reach nearly Rs. 3 lakh crore by FY 2028-29, representing an estimated CAGR of around 11%. However, industry performance during FY 2025-26 was relatively moderate, with the consumer durables segment registering growth of approximately 1%.

Consumer behaviour during the year was influenced by a combination of seasonal, regulatory and market factors. Unseasonal weather patterns and extreme climatic conditions during the initial part of the year affected demand for certain seasonal cooling products and resulted in a temporary moderation in sales. The market subsequently regained momentum, supported by GST rate reductions across selected large-appliance categories.

The recovery was further strengthened by deferred consumer purchases, improving demand sentiment and a strong festive trading period. Together, these factors supported a revival in discretionary spending and helped the sector regain momentum during the latter part of the financial year.

The industry also faced higher operating costs during the year, particularly across energy, transportation and logistics, and rental expenses. These cost increases placed additional pressure on retailers operating margins and, in certain instances, influenced consumer decisions, particularly in the case of higher-ticket purchases.

Nevertheless, the underlying growth drivers of the consumer durables and electronics market remain favourable. Consumer preferences are increasingly shifting towards premium, technologically advanced and energy-efficient products, reflecting higher awareness of product features, convenience and long-term value.

A notable change is the growing preference for larger and higher-value appliances. Categories such as large-screen televisions and display panels, front-load washing machines and dishwashers are gaining traction as consumers upgrade their homes and adopt more convenient lifestyles. Emerging categories, particularly dishwashers, are expected to witness significant expansion, with industry sales projected to exceed 1.85 lakh units by 2030.

Across key product categories, market demand is expected to expand at estimated CAGR levels of approximately 3% to 12% over the next decade. The increasing penetration of premium products and the shift towards higher-value appliances are expected to improve average selling prices and provide a strong foundation for the sectors sustained long-term growth.

Indias changing consumption patterns continue to create a favourable environment for the growth of the consumer durables and electronics retail industry. Over the last decade, household consumption has expanded significantly, rising from approximately US$1 trillion in 2013 to around US$2.1 trillion in 2024, reflecting a CAGR of nearly 7.2%. This rate of expansion has remained ahead of the growth recorded by several major global economies, including the United States, China and Germany.

The positive trend in consumer spending continued through FY 2025-26, with Private Final Consumption Expenditure (PFCE) increasing by 7.7%. PFCE accounted for approximately 61.5% of GDP during the year, representing its highest contribution since FY 2011-12. Moderating inflation, improving employment conditions and resilient domestic demand supported this consumption momentum. Looking ahead, the continued expansion of Indias middle-income population is expected to provide further impetus to discretionary expenditure.

The country is also witnessing a significant increase in the number of consumers with higher purchasing power. The population earning more than US$10,000 per annum is projected to rise from approximately 60 million in 2024 to nearly 165 million by 2030. In parallel, per capita income is expected to exceed US$4,000 by 2030, reflecting Indias gradual transition towards an upper-middle-income economy.

These demographic and income-related developments are expected to accelerate the adoption of discretionary products, particularly consumer electronics, home appliances and other lifestyle-oriented categories. Rising purchasing power, evolving consumer preferences and increasing access to organised retail are likely to create significant opportunities for the sector and support its long-term expansion.

Sources:

https://www.outlookbusiness.com/economy-and-policy/india-private-consumption-at-21-trillion-set-to-be-3rd-largest-consumer-market-by-2026-report

https://www.moneycontrol.com/news/business/economy/india-set-to-become-upper-middle-income-country-by-2030-with-per-capita-income-touching-4-000-sbi-report-13779588.html

10. KEY STRATEGIES

1. Strengthening Omnichannel Retail Presence

Expand and integrate physical stores with digital platforms to provide customers with a seamless shopping experience, wider product access and convenient fulfilment options.

2. Enhancing Customer Experience

Differentiate through superior in-store experience, knowledgeable product assistance, personalised recommendations, installation support and after-sales service.

3. Leveraging Digital Transformation

Use data analytics, artificial intelligence and digital tools to improve demand forecasting, inventory planning, customer engagement and operational efficiency.

4. Capitalising on Festive and Seasonal Demand

Align inventory, promotional campaigns and financing schemes with key festive periods and seasonal demand cycles to maximise sales opportunities.

5. Strengthening Brand and Customer Loyalty

Invest in targeted marketing, loyalty programmes and personalised engagement initiatives to improve customer retention and increase lifetime customer value.

11. OPPORTUNITIES

1. Rising Consumer Spending

Increasing disposable incomes, expanding middle-class households and improving consumer confidence are expected to drive higher spending on consumer durables, electronics and lifestyle products.

2. Expansion into Tier-II and Tier-III Markets

Rapid urbanisation, improving infrastructure, rising incomes and greater access to organised retail provide significant opportunities for expansion beyond major metropolitan markets.

3. Technology-Led Upgrade Momentum

The growing adoption of AI-enabled smartphones and foldable devices is encouraging faster upgrades, driving device volumes and supporting higher Average Selling Prices (ASPs). This trend is expected to strengthen growth and premiumisation in the communications segment.

12. THREATS

1. Disruption from Alternate Commerce Channels

The rapid growth of e-commerce and the emergence of quick commerce platforms continue to impact physical store footfalls. With these channels offering competitive pricing and greater convenience, we are focused on strengthening our store experience through superior engagement and consistent product availability.

2. Dynamic Regulatory and Compliance Landscapes

Frequent policy updates, evolving e-waste management guidelines, and stringent environmental policies demand operational agility. We continue to invest in compliance measures to ensure adherence across our supply chain and retail operations.

13. Competitive Strategies

The mobile phone and accessories retail distribution market in India is highly competitive, with players employing diverse strategies to differentiate offerings, expand market presence, and strengthen brand positioning. Competitive approaches focus on product innovation, pricing, distribution reach, and customer engagement to improve operational efficiency and align with evolving consumer preferences in a dynamic retail environment.

1. Omnichannel Strategy - Retailers are increasingly adopting an omnichannel approach by integrating their physical stores with digital platforms to provide a seamless customer journey. This includes services such as ordering online and picking up in-store, real-time inventory visibility, and easier return or exchange processes across channels. Such integration enhances customer convenience, increases trust, and allows retailers to leverage store networks as fulfilment points, thereby improving both sales conversion and operational efficiency.

2. Competitive Pricing & Promotions - Given the price-sensitive nature of the Indian market, retailers rely heavily on promotional pricing strategies to drive footfall and sales volumes. This includes festive discounts, cashback offers, exchange schemes, and bundle deals combining smartphones with accessories. Dynamic pricing is often used to stay aligned with online competitors. These tactics help retailers remain relevant in a highly competitive environment where consumers frequently compare prices before making purchases.

3. Product Assortment Strategy - Maintaining a broad and balanced product portfolio is critical for retailers to cater to diverse customer segments. Stores typically stock devices and accessories across premium, midrange, and budget categories, ensuring availability of fast-moving products and newly launched models. A strong assortment strategy helps retailers meet varying consumer preferences, reduce lost sales due to stock-outs, and position themselves as one-stop destinations for mobile-related needs.

4. Exclusive Partnerships & Early Launches - Retailers often collaborate with brands to secure exclusive product variants, early access to new launches, or special in-store promotions. These partnerships help create differentiation from competitors and attract technology enthusiasts who seek the latest devices. Launch events and promotional tie-ins also generate store traffic and enhance brand visibility, strengthening the retailers competitive positioning.

5. Customer Experience Differentiation - Physical retailers compete by offering superior in-store experiences that online platforms cannot fully replicate. This includes live product demonstrations, interactive displays, and knowledgeable sales staff providing personalized assistance. Strong after-sales support, warranty guidance, and service facilitation further enhance customer trust. A focus on experience and service quality helps retailers build long-term customer relationships and justify purchases at physical outlets.

6. Financing & Affordability Solutions - To make high-value smartphones more accessible, retailers provide EMI schemes, zero-cost installment plans, and in-store financing options through partnerships with banks and fintech providers. These affordability solutions reduce upfront cost barriers and encourage customers to upgrade to better devices. Financing support is particularly important in driving sales of mid- to premium-segment smartphones in both urban and emerging markets.

7. Supply Chain & Inventory Optimization - Efficient supply chain management is a key competitive lever in a fast-moving electronics market. Retailers use demand forecasting tools, real-time inventory tracking, and improved warehouse systems to ensure product availability while minimizing excess stock. Faster replenishment cycles and better logistics coordination help respond quickly to demand spikes, especially during product launches and festive seasons, thereby improving sales and reducing operational inefficiencies.

8. Accessory Bundling & Cross-Selling - Retailers enhance profitability by promoting high-margin accessories alongside smartphones. Through combo offers, point-of-sale upselling, and device protection add-ons, customers are encouraged to purchase complementary products such as chargers, cases, audio devices, and wearables. Effective cross-selling increases average transaction value and helps retailers offset thinner margins on smartphones.

14. Major Industry Players in the Context of Mobile phones & Accessories Retail distribution market

The Indian Mobile phones & accessories Retail distribution market is populated by a diverse mix of regional and national players. Among them, company such as Umiya Mobile Ltd stand out as notable peers, each with unique strengths and positioning in the industry.

1. Umiya Mobile Ltd - Umiya Mobile Limited, incorporated in, 2012, in Rajkot, Gujarat, is a fast-growing consumer electronics and retail company engaged in the sale of mobile phones, tablets, laptops, accessories, and home appliances. Over the years, the company has built a strong presence with more than 215+ retail stores in Gujarat and Maharashtra, making it one of the leading multi-brand mobile and electronics retailers in Western India. Its portfolio covers leading global and Indian brands such as Apple, Samsung, Realme, Tecno, MI, and Motorola, along with a range of accessories and household electronics including televisions, refrigerators, washing machines, and air-conditioners. Products Mobiles, Tablets, Accessories, TV, Laptop and Gadgets.

2. Bhatia Communications & Retail (India) Ltd - Bhatia Communications & Retail (India) Ltd, founded in 2008 and headquartered in Surat, Gujarat, is a leading multi-brand retailer and wholesaler specializing in consumer electronics and home appliances. The company operates an extensive retail network across South Gujarat, including Surat, Vapi, Valsad, Navsari, and Vyara, with 224 outlets. Its product portfolio encompasses mobile handsets and accessories from brands such as Apple, Samsung, Vivo, and Redmi, tablets, data cards, and a wide range of home appliances including smart TVs, air conditioners, refrigerators, washing machines, and microwaves from Whirlpool, Panasonic, Haier, and Voltas. Bhatia Communications & Retail has established a strong market presence both ofline and online through its e-commerce platform, Bhatia Mobile, catering to the growing consumer demand for electronics in India.

3. Fonebox retail Limited - Fonebox Retail Limited, incorporated in 2021 and headquartered in Ahmedabad, Gujarat, is a fast-growing multi-brand retailer specializing in smartphones, consumer electronics, and home appliances. The company operates an expanding retail network across Gujarat through both company-owned and franchise-operated stores. Its product portfolio includes mobile handsets and accessories from leading brands such as Apple, Samsung, Oppo, Vivo, Realme, and Redmi, along with a diverse range of consumer durables including smart TVs, laptops, refrigerators, air conditioners, and small appliances from major brands. Fonebox Retail has built a strong presence in value-driven electronics retailing and continues to scale its footprint, supported by growing demand for branded electronics and its strategic mix of COCO and FOCO store formats.

15. Company Positioning Vinit Mobile Limited

Vinit Mobile Ltd. is a mobile phones and accessories retail company based in Surat, Gujarat. With 32 stores across the city, the company offer top-quality gadgets, competitive prices, and easy finance options.

The company positions itself as a one-stop mobile solutions provider, focusing on delivering competitive pricing, wide product selection, and quality customer service. Their product range spans smartphones, gadgets, and accessories from leading global and Indian brands. They also emphasize customer support through financing and EMI options, striving to ensure satisfaction and accessibility for a wide range of customers.

On the financing front, Vinit Mobile limited provides "easy finance options" and "EMI support," indicating tie-ups with NBFCs or EMI facilitators to make high-end technology more accessible but detailed information on partner names isnt publicly available.

Vinit mobile Limited benefit not only from this retail and financial infrastructure but also from a broad offering of smartphones, accessories, and value-added services across their well-distributed store network. Vinit Mobile Limited also serves as an experiential hub for customers seeking specialized demo environments and brand-specific support, reinforcing its dual role as both a neighbourhood mobile retailer and a premium brand outlet.

Products Categories

Category	Description
5G Smartphones	Latest generation mobile devices that support 5G network connectivity Oppo, Realme, Vivo, Samsung and Apple.
4G Smartphones	Current-generation smartphones functioning over 4G networks.
Tablet	Portable, larger-screen devices for multimedia, productivity, and entertainment Apple.
Keypad Mobile Phones	Traditional non-smart, feature phones with physical keypads.
Special Accessories	Exclusive offers on mobile-related accessories (varied products, unspecified).
Special Offers	Promotional deals across product categories (e.g., discounts, bundles).

16. SWOT Analysis

Strengths	Weaknesses
1. Wide product portfolio across leading smartphone brands and accessories.	1. Geographic concentration limits scale beyond core operating regions.
2. Strong distribution network and retail presence in regional markets.	2. Dependence on third-party brands; limited control over product innovation and margins.
3. Competitive pricing and focus on customer service, building loyalty in Tier II/III cities.	3. Moderate digital/e-commerce presence compared to online-first competitors.
4. Experience in handling bulk orders and serving both B2C and B2B segments.
Opportunities	Threats
1. Rising smartphone penetration in Tier II/III towns, supported by affordable 4G/5G devices.	1. Fierce competition from large chains (e.g., Reliance Digital, Croma) and e-commerce platforms.
2. Growth of accessories and refurbished mobile market opens new revenue streams.	2 . Rapid product obsolescence and price erosion in the mobile industry
3. Increasing demand for omni-channel retail, integrating offline and online sales.	3. Supply chain disruptions or dependency on global imports (mainly China).
4. Partnerships with e-commerce players and fintech for buy-now-pay-later (BNPL) and EMIs.	4. Regulatory changes on mobile phone & accessories imports or GST may affect margins.

17. Future Outlook

The mobile phone and accessories retail distribution market in India is entering a strong structural growth phase, supported by favourable macroeconomic trends, rising digital adoption, and sustained policy support.

Increasing disposable incomes, rapid urbanization, and deeper smartphone penetration across Tier II & III cities are expanding the consumer base, while shorter handset replacement cycles are driving repeat purchases.

Alongside handset growth, demand for mobile accessories including chargers, earphones, power banks, wearables, and smart peripherals is expected to grow at a faster pace due to higher attach rates, evolving technology standards, and rising consumer awareness around safety, performance, and brand reliability.

The retail landscape is also evolving rapidly with the increasing adoption of omnichannel and digital-first strategies. E-commerce platforms, direct-to-consumer models, and organized brick-and-mortar retail are becoming increasingly integrated, enhancing customer reach, inventory optimization, and demand forecasting.

Digital tools such as data analytics, ERP systems, and app-based customer engagement platforms are improving operational efficiency and enabling retailers to respond more effectively to changing consumer preferences.

In parallel, the proliferation of digital payments, EMI and BNPL options, and trade financing solutions is supporting higher ticket-size purchases and improving working capital efficiency across the distribution ecosystem.

Technological advancements such as 5G, AI-enabled smartphones, IoT integration, and connected device ecosystems are further shaping demand dynamics.

These innovations are driving higher-value smartphone purchases and increasing demand for compatible accessories, including fast chargers, wireless audio devices, smart wearables, and device protection solutions.

Additionally, sustainability considerations such as e-waste management, energy-efficient products, and eco-friendly packaging are becoming increasingly important, influencing both product design and retail practices.

FINANCIAL PERFORMANCE

Particulars	Year ended March 31, 2026	Year ended March 31, 2025
Revenue from Operations	7,190.97	5,998.35
Other Income	85.66	64.36
Total Income	7,276.63	6,062.71
Less: Operating Expenses	6,390.03	5,489.81
Earnings before Depreciation, Interest and Tax	886.60	572.90
Less: Depreciation and Amortization Expenses	27.26	9.05
Less: Finance Costs	79.87	36.00
Earnings before Tax	779.47	527.85
Less: Tax expenses	209.80	133.72
Less: Deferred Tax	4.20	0.68
Net Profit/(Loss) After Tax	573.87	394.81

During the year under review, the Company delivered a strong improvement in its overall financial performance. the Company has earned total income of 7276.63 Lakhs as against the total income of 6062.71 Lakhs of previous year which states 20.02% increase in the total income as compared to previous year, supported by growth in revenue from operations and a significant increase in other income.

The profit before tax in the financial year 2025-26 stood at 779.47 Lakhs as compared to profit of 527.85 Lakhs for last year which state 47.67% increase in Profit before tax and net profit after tax stood at 573.87 Lakhs as compared to profit of 394.81 Lakhs for the previous year which state 45.35% increase in profit of the Company.

Overall, FY 2025-26 was a year of healthy revenue growth and substantial improvement in profitability, demonstrating the Companys continued focus on operational efficiency, better price realisation, disciplined cost management and profitable growth.

KEY RATIOS

The Financial ratios has been provided in Financial statement.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

The Company believes in establishing and building a strong performance and competency driven culture amongst its employees with greater sense of accountability and responsibility. The Company has taken various steps for strengthening organizational competency through the involvement and development of employees as well as installing effective systems for improving their productivity and accountability at functional levels. The Company acknowledges that its principal asset is its employees. Ongoing in-house and external training is provided to the employees at all levels to update their knowledge and upgrade their skills and abilities. As on March 31, 2026, the Company had total 34 full time employees. The industrial relations have remained harmonious throughout the year.

INTERNAL FINANCIAL CONTROL AND THEIR ADEQUACY

The Company has adequate systems of internal control meant to ensure proper accounting controls, monitoring cost cutting measures, efficiency of operation and protecting assets from their unauthorized use. The Company also ensures that internal controls are operating effectively. The Company has also in place adequate internal financial controls with reference to financial statement. Such controls are tested from time to time to have an internal control system in place.

Your Company ensures adequacy, commensurate with its current size, scale and complexity of its operations to ensure proper recording of financial and operational information & compliance of various internal controls, statutory compliances and other regulatory compliances. It is supported by the internal audit process and will be enlarged to be adequate with the growth in the business activity. During the year under review, no material or serious observation has been received from the Internal Auditors of the Company for inefficiency or inadequacy of such controls.

CAUTIONARY STATEMENT

Statements in this Report, describing the Companys objectives, projections, estimates and expectations may constitute ‘forward looking statements within the meaning of applicable laws and regulations. Forward looking statements are based on certain assumptions and expectations of future events. These statements are subject to certain risks and uncertainties. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. The actual results may be different from those expressed or implied since the Companys operations are affected by many external and internal factors, which are beyond the control of the management. Hence the Company assumes no responsibility in respect of forward-looking statements that may be amended or modified in future on the basis of subsequent developments, information or events.