Croma turns operationally profitable in FY26, plans 40–45 new stores

Tata-owned Croma reported FY26 operating profit of ₹159 crore versus a ₹235 crore loss a year earlier, while net loss narrowed to ₹614 crore. After closing 35 unviable stores, the chain plans measured expansion through Croma and Edge by Croma formats.

— Source publishedFri, 28 Aug, 2026, 08:26 IST·First seen Fri, 28 Aug, 2026, 09:23 IST·Source ET Retail

What happened

Tata-owned Croma turned operationally profitable in FY26, narrowed net losses and closed 35 weak stores. It plans measured expansion of 40-45 outlets this

Key facts

  • FY26 operating profit: ₹159 crore, versus ₹235 crore operating loss in FY25
  • FY26 net loss: ₹614 crore, versus ₹1,091 crore in FY25
  • FY26 total income: ₹21,784 crore, up 13%
  • 35 unviable stores closed in FY26
  • About 560 stores currently
  • 40-45 stores planned this fiscal, split roughly equally between Croma and Edge by Croma
  • Smartphone volumes fell over 10% calendar year-to-date
  • Smartphone prices rose 30-40%

Why this matters

Croma’s turnaround and dual-format rollout suggest selective opportunities in smaller-format electronics retail, but expansion partners should prioritize proven catchments and unit economics over store-count growth.

What to watch

  • FY27 same-store sales growth and whether it exceeds inflation-adjusted consumer-electronics demand.
  • Gross-margin trend during festive and smartphone-led promotional periods.
  • Number, location mix and capex intensity of the 40–45 planned openings.
  • Store-level EBITDA/payback for Edge by Croma versus full-format Croma stores.
  • Further store closures, lease renegotiations or impairment charges.
  • Net-loss trajectory, depreciation, finance costs and cash-flow conversion despite operating profitability.
  • Inventory days, clearance markdowns and working-capital movement.
  • Competitive pricing actions from Reliance Digital, Vijay Sales, Amazon and Flipkart.
  • Prioritize new stores in proven high-productivity clusters rather than broad national expansion.
  • Use Edge by Croma as a lower-capex format for tier-2 and tier-3 demand testing.
  • Increase private-label, accessories, warranties, installation and repair attachment to protect margins against device discounting.
  • Further rationalize underperforming legacy stores and renegotiate leases before adding major fixed costs.
  • Expand omnichannel inventory pooling and faster delivery to reduce stock-outs and markdown risk.
  • Preserve capital discipline until net-loss reduction and store-level payback improve materially.