Solar91 Cleantech Ltd. IPO

SS Retail

• SS Retail is coming out with a 100% book building; initial public offering (IPO) of 1,24,26,638 shares of face value Rs 10 each in a price band Rs 403-424 per equity share.
• Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
• The issue will open for subscription on September 16, 2026 and will close on September 18, 2026.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 10 and is priced 40.30 times of its face value on the lower side and 42.40 times on the higher side.
• Book running lead managers to the issue are Anand Rathi Advisors and Emkay Global Financial Services.
• Compliance officer for the issue is Kishor Babaso Hupare. 

Profile of the company

SS Retail is a multi-brand retail chain for mobile phones, accessories and other electronic items, with operations in 5 states i.e., Maharashtra, Karnataka, Madhya Pradesh, Goa, and Gujarat (commenced in Fiscal 2027). It deals in multiple product categories across different types of cities such as metro cities, mini metro cities, tier I cities, tier II cities and tier III and beyond cities. However, its focus has been on retailing mobile phones and accessories in tier II and tier III and beyond cities. As of March 31, 2026, it operated 503 stores in India, and 458 stores in Maharashtra, positioned it as the largest mobile phone retail chain in West India (i.e., Gujarat, Maharashtra, Goa, Madhya Pradesh, Dadra & Nagar Haveli and Daman & Diu) and in Maharashtra and the 3rd largest in India, amongst its peers.

Its store operations are structured around 3 different business models: i) Company owned and company operated model (COCO Model) wherein the stores are leased / owned by it and also operated by it; ii) Company owned and franchisee operated model (COFO Model) wherein the stores are leased by it and operated by its franchisee partners; and iii) Franchisee owned and franchisee operated model (FOFO Model) wherein the stores are both, leased as well as operated by the franchisee partners. The ownership of the inventory at all these stores remains with it. The stores under each of these models are designed by the company and set up through selected interior designers to ensure that the ‘look and feel’ of each store is uniform to ensure consistent brand identity and store experience. It operates its stores under the brand ‘SS Mobile’ and ‘Mobile Exchange Wala’ through a combination of COCO Model and COFO Model, and its stores under the brand ‘The Mobile Space’ through the FOFO Model. 

It operates the COFO and FOFO Model stores based on its approach of identifying local franchisee partners who are selected based on certain criteria such as i) the franchisee partner must be a resident of the area where the store is located, ensuring local community connections; ii) the franchisee partner’s income is primarily driven by the store’s performance, which in turn motivates them to earn and to succeed; and iii) a preference is given to people with experience in the retailing industry which helps in effective sales performance (Local Partners Approach). The local affinity of customers towards such franchisee partners accelerates new customer acquisition while reducing the customer acquisition costs. This approach also helps it capitalise on the understanding of its franchisee partners of the ethos of the area in which such store operates. 

Proceed is being used for: 

• Funding capital expenditure for Fit Outs towards setting up of new stores in Fiscal 2027 and Fiscal 2028.
• Part funding of the incremental working capital requirements of the company.
• General corporate purposes. 

Industry overview

India’s mobile phone and accessories market grew from Rs 2,286 billion in FY2019 to Rs 3,729 billion in FY2024 at a CAGR of 10.3% and was estimated at Rs 3,915 billion in FY2025. The market further grew y-o-y at a rate of 8.4% in FY2026 and was valued at Rs 4,242 billion. Mobile phone (including feature and smart phones) and mobile accessories formed a high base market, accounting for 60% of the total Indian consumer electronics market in FY2026. Mobile phones accounted for the larger share of 86.2% of the total mobile phone and accessories market in FY2026, and mobile accessories market including charger cables, earphones, power banks, etc. accounted for 13.8% of the total market in FY2026. The market is projected to grow at CAGR of 9.8% in the next four years to reach a value of Rs 6,166 billion by FY2030. This growth is being driven by the rising premiumization and increase in value due to rising ASPs for smartphones and consumer upgrading to these premium models with better features at higher prices, not just in urban areas, but also in tier II and beyond cities. 

Feature phone shipments declined from 61 million units in FY2024 to 54 million units in FY2025 and further declined to 43 million units in FY2026 and are projected to dip further to 35 million units in FY2030. Correspondingly, their market value dropped from Rs 54 billion in FY2025 to Rs 43 billion by FY2026 at a rate of 20.4%. This decline is attributed to limited feature innovation, poor compatibility with digital-first services (UPI, OTT apps), and rising affordability of entry-level smartphones. In contrast, smartphones have grown steadily from 146 million units in FY2024 to 151 million units in FY2025 and maintained a flat volume growth to 152 million units in FY2026 and are further projected to reach 161 million units by FY2030. The value contribution of smartphones surged to Rs 3,614 billion in FY2026 compared to Rs 3,324 billion in FY2025, at a growth rate of 8.7%. This growth is driven by increasing 4G/5G adoption, the popularity of AI-powered and camera-focused devices and growing digitization in tier II and beyond cities.

Government initiatives like Digital India, improved rural connectivity, and the proliferation of financing options like BNPL and no-cost EMIs have further accelerated smartphone adoption, positioning it as the core driver of India’s mobile market evolution. In urban areas, there is an increasing trend of premiumization. During the 2025 festive season, there was a surge in demand for premium and ultra-premium smartphones (Rs 51,000 and above), with sales reaching approximately two million units for the first time. The smartphone market is further projected to reach Rs 5,146 billion in FY2030, at a CAGR of 9.2% from FY2026 to FY2030.

Pros and strengths 

Largest mobile phone retail chain in West India and in Maharashtra: It is a multi-brand retail chain dealing in a wide variety of mobile phones, accessories and other electronic items of various brands in India. As of March 31, 2026, it operated 503 stores in India, and 458 stores in Maharashtra, positioned it as the largest mobile phone retail chain in West India and in Maharashtra and the 3rd largest in India, amongst its peers. Since March 31, 2024, it has significantly increased its store count from 236 stores as of March 31, 2024 across 109 cities to 503 stores across 215 cities as of March 31, 2026 at a CAGR of 45.99%, which positioned it as one of the fastest growing retail chains of mobile phones. Further, this growth rate was not only the 2nd highest amongst its peers but also around 2.4x the peer average of 19.29% during Fiscal 2024 to Fiscal 2026. It has continued the expansion of its retail network this Fiscal as well, and as of March 31, 2026, it had 503 stores spread across 2,41,365 square feet, and as of July 31, 2026, it had 536 stores spread across 2,60,597 square feet. 

Differentiated COFO and FOFO models with local partners approach: It primarily focuses on its franchisee-led COFO and FOFO models which have helped it scale its operations, both in terms of number of stores and revenue from operations. The COFO Model accounts for 62.82% and the FOFO Model accounts for 20.48% of its total store count as at March 31, 2026, respectively. Its revenue from operations from COFO Model, has grown significantly at a CAGR of 32.01% between Fiscal 2024 to Fiscal 2026, whereas its revenue from operations from the FOFO model, albeit on a smaller base, has grown at a CAGR of 110.49% between Fiscal 2024 to Fiscal 2026. Under the COFO Model, the stores are leased by it and operated by its franchisee partners, whereas in the FOFO Model the stores are both, leased and operated by the franchisee partners. The ownership of the inventory at all these stores remains with it. In the COFO and FOFO model the franchisee partner incurs the partial capital expenditure of setting up the stores. While, in the COFO model, the company bears all the operational costs for the store, in the FOFO model the entire operational costs for the store are borne by the franchisee partner. It sets monthly revenue and profitability targets for its franchisee partners in the COFO Model. Upon achieving these targets, they become eligible for a pre-determined commission from the company, which serves as an incentive to drive higher performance.

Broad product mix with focus on mobile phones: It is a multi-brand retail chain for mobile phones, accessories and other electronic items with a broad product mix. While it deals in multiple product categories, its focus has been on mobile phones and accessories. It retails mobile phones of various brands across multiple price ranges, and it derives a significant portion of its revenue from operations from sale of mobile phones. It also retails accessories across audio categories, wearables, and others. In addition, it retails televisions, laptops and tablets of various brands. 

Consistent track record of financial performance and growth: It operates a scalable, asset light model. Its consistent track record of financial performance and growth have been achieved due to factors such as: It has focussed on adding Medium Format Stores and Small Format Stores to its network as these are relatively less capital intensive to open and help it scale up operations faster. It has focussed on the COFO and FOFO models. In the COFO and FOFO model the franchisee partner incurs the partial capital expenditure of setting up the stores. While, in the COFO model, it bears all the operational costs for the store, in the FOFO model the entire operational costs for the store are borne by the franchisee partner. Accordingly, since certain costs are borne by the franchisee partners, these models help reduce its overall costs. Its Local Partners Approach in operating its COFO and FOFO model stores help it capitalise on the local affinity of customers towards franchisee partners which accelerate new customer acquisition, while reducing customer acquisition costs. Its focus on expansion of its stores network in tier II and tier III and beyond cities assist it in lower rent expenses as compared to stores in metro, mini metro and tier I cities. Its ‘shop in shop’ format increases the productivity of the store as it leverages the same store space and infrastructure without material incremental operating costs.

Risks and concerns

Significant revenue reliance on mobile phones retailing: It derives a significant portion of its revenue from operations from retailing mobile phones. During Fiscals 2026, 2025 and 2024 it derived 86.18%, 87.58% and 88.31% of its revenue from operations, respectively, from retailing mobile phones. Any economic slowdown or other factors that affect the mobile phone industry, and accessories and electronic items industries including those that impact or reduce consumers’ ability to purchase its products, could adversely impact its business, financial condition, and operating results.

Concentration of purchases among top 10 suppliers: The company is significantly reliant on its arrangements with top 10 suppliers for procuring mobile phones, accessories and other electronic items. The amount of purchase of traded goods from its top 10 suppliers was 79.09%, 89.42% and 88.38% of its purchase of traded goods during Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively. Failure on the part of the suppliers to supply, or a delay in supply of traded goods from its top 10 Suppliers, could have an adverse impact on its reputation, business, financial condition, cash flows and results of operations.

High geographic revenue concentration in Maharashtra: It derives a significant portion of its revenue from operations from its stores in the state of Maharashtra. While it has been operating its stores in Maharashtra since incorporation, it has gradually expanded into other states, commencing operations in Goa in Fiscal 2019, Karnataka and Madhya Pradesh in Fiscal 2025 and Gujarat in Fiscal 2027. It has focussed on deepening its presence in Maharashtra and during the period March 31, 2024 to March 31, 2026, it has opened 227 stores in Maharashtra. As of March 31, 2026, it had 458 stores in Maharashtra (out of total 503 stores) constituting 91.05% of its total stores. During Fiscal 2026, Fiscal 2025 and Fiscal 2024, it derived 89.09%, 92.32% and 94.07% of its revenue from operations from Maharashtra. Accordingly, it is subject to risks arising from changes in political, social and economic conditions of Maharashtra which could have an adverse effect on its business, financial condition, result of operation and cash flow.

Revenue reliance on franchisee-led COFO and FOFO models: It primarily focuses on its COFO Model and FOFO Model which have helped it scale its operations, both in terms of number of stores and revenue from operations. The COFO and FOFO Models cumulatively contributed 74.19%, 78.03% and 77.79% of its revenue from operations during Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively. If its franchisee-led COFO and FOFO models are not successful in the future, or do not grow at the same rate or at all, or the stores which it operates under COFO and FOFO models closes, then it may adversely impact its business growth and prospects, financial condition and results of operations.

Outlook

SS Retail is primarily engaged in the business of retail trading of consumer electronics and durable products through a chain of retail stores. Its product portfolio includes mobile phones, mobile accessories and other consumer electronic products. Its stores are designed to provide a consistent experience to its customers across all formats. Each store follows a defined layout, display, and placement of products which includes, the store interiors are brightly lit and spacious, with clear and organized display zones for mobile handsets, accessories, and other electronic items; Prominent branding, signage, and category boards (e.g., smartphones, smart watches, speakers, ear buds) ensure easy navigation for customers. On the concern side, its business is working capital intensive, primarily on account of inventory required to be stocked at its stores and warehouses. It proposes to utilize Rs 2,413.47 million out of the Net Proceeds towards its incremental net working capital requirements for Fiscal 2027 and Fiscal 2028. It may need to obtain additional financing in the normal course of business from time to time as it expands its operations and any failure on its part to effectively manage its working capital requirements may require it to raise additional financing and any inability to do that may result in an adverse effect on its business, revenue from operations and financial condition.

The issue has been offering 1,24,26,638 shares in a price band of Rs 403-424 per equity share. The aggregate size of the offer is around Rs 500.79 crore to Rs 526.89 crore based on lower and upper price band respectively. Minimum application is to be made for 35 shares and in multiples thereof thereafter. On performance front, the company’s revenue from operation increased by Rs 7,531.00 million i.e. 47.13% to Rs 23,510.31 million in Fiscal 2026 from Rs 15,979.31 million in Fiscal 2025. Moreover, profit after tax of the company increased by 48.72% from Rs 398.61 million in Fiscal 2025 to Rs 592.82 million in Fiscal 2026.

Meanwhile, to further improve its inventory procurement model and reduce its operating costs, it intends to enter into tie ups with brands with whom it currently does not have a direct relationship (i.e., it procures products of such brands through authorised distributors / dealers). Such direct arrangement will enable it to further eliminate the intermediaries (i.e., authorised distributors / dealers for such brands) in the supply chain, reduce the associated costs and will also assist it in procure mobile phones, accessories and other electronic items at more competitive prices.