SS Retail IPO

Risks

• The company derives 86.18%, 87.58% and 88.31% of revenue from operations from retailing mobile phones during Fiscals 2026, 2025 and 2024, respectively. Any economic slowdown or factors affecting the mobile phone industry could adversely impact the company's business, financial condition, and operating results.
• The company is significantly reliant on arrangements with top 10 suppliers for procuring mobile phones, accessories and other electronic items, representing 79.09%, 89.42% and 88.38% of purchase of traded goods during Fiscal 2026, 2025 and 2024, respectively. The company typically does not enter into long-term agreements with suppliers and purchases are based on purchase orders, creating supply chain vulnerability.
• The company derives 89.09%, 92.32% and 94.07% of revenue from operations from Maharashtra during Fiscal 2026, 2025 and 2024, respectively, with 458 stores (91.05% of total stores) located in Maharashtra as of March 31, 2026. This concentration exposes the company to risks arising from changes in political, social and economic conditions specific to Maharashtra.
• The company's net working capital requirements have increased from ₹1,556.85 million as on March 31, 2024 to ₹2,966.58 million as on March 31, 2026, primarily due to inventory requirements. The company proposes to utilize ₹2,413.47 million from Net Proceeds towards incremental net working capital requirements for Fiscal 2027 and 2028.
• The company primarily focuses on COFO and FOFO models which cumulatively contributed 74.19%, 78.03% and 77.79% of revenue from operations during Fiscal 2026, 2025 and 2024, respectively. If these franchisee-led models are not successful in the future or do not grow at the same rate, it may adversely impact business growth and prospects.
• The company operates in a highly competitive environment comprising both organised and unorganised players, exclusive brand outlets, and e-commerce platforms. Online mobile phone sales in India were valued at ₹1,339 billion in Fiscal 2024 with market share increasing from 35.3% in FY2019 to 41.5% in Fiscal 2024, creating pricing pressures and potential market share loss.
• The company has incurred indebtedness aggregating to ₹2,752.21 million as of July 31, 2026. Financing agreements contain covenants that might limit flexibility in operating the business, and any breach of terms or inability to comply with repayment obligations could adversely affect business and financial condition.