According to an example of Amrkart.com, this website will change how computers are refurbished worldwide. In particular, Amrkart.com used to refurbish most or all of India’s laptops, but now it wants to develop a refurbished computer ecosystem for their websites globally and make previous computers as good as new.
This is especially important in light of how the computer industry is experiencing component shortages and rising so much in price due to new technology development (AI/ML Sensors will replace a number of previously manufactured computers).
Amrkart.com will also benefit from the component shortages mentioned above, as it is building a trusted platform to provide refurbished computers to its customers with warranties, global distribution partners, and strategic inventory management across 46 countries. Due to its growth, Amrkart.com is changing the world's view of refurbished computers (the same as new).
Share prices of Amrkart are currently priced at Rs 00 per share on an outstanding share capital of Rs 4,800 crores in valued terms and have experienced good appreciation in value since their initial listing over 1 year earlier, when they gave returns above 35% to investors as well as trading at a PE multiple of 37 against an average industry PE multiple of 23.
What began as a niche business in refurbished computers has now transitioned into providing global circular technology solutions. The past several years have seen large structural changes occur within the global personal computing space, from increased demand for remote working, supply chain disruptions and now issues resulting from the semiconductor supply shortage due to AI changing how computing resources are provided. Regardless of these issues, Amrkart has taken advantage of these circumstances to become one of the most successful scalable businesses geared towards refurbishing underutilised or low-used computer equipment in India today. Fiscal year (FY26) is designated to have been an important year in the development of Amrkart as it achieved record revenue performance along with the company establishing refurbished computing as no longer limited to being a niche market, but now becoming an alternative solution available to the global computing market.
As stated by amrkart management, the last fiscal year (FY26) provided Amrkart a solid foundation to expand its customer base, enhance its customer relationships, and to beat its own expectations for FY26 by a significant margin (more than the company's management originally projected). These results reflect that the company has a high degree of confidence in its business model.
Consolidated revenue grew 34% year over year to ₹1,891 crores and PAT increased 91% year over year to ₹132 crores. EBITDA margins increased from 8.9% to 10.6%. Most importantly, management expects that these trends will continue beyond FY26 because of a structural shift in the market as a result of the company’s position as a leader in the refurbished devices segment, rather than purely cyclically driven.
In FY26, Amrkart continued to increase its scale and profitability compared to the previous year due to management execution and an improved efficiency within their economy of scale and supply chain operations. Consolidated revenue for the company in the fourth quarter of FY26 increased 43% quarter over quarter to ₹651.7 crore, with quarterly PAT rising almost threefold to ₹42.1 crore. The EBITDA margin for the quarter was 9.8%, while the PAT margin improved to 6.5%. Management has communicated that they are improving profitability at an even faster pace than revenue because of improved efficiencies in procurement, better pricing realisations, and improved execution along with better inventory management practices. Gross margin for the company was 19.2% for the quarter vs. 15.1% for the same period last year, with the full year gross margin at 20.1%. This illustrates that the company continues to be focused on increasing its sales volume as well as the value of its refurbished devices when they are sold in new markets around the world.
The focus on laptops continues to be the primary segment.
Within FY26 Q4, the firm has managed to sell around 2.41 lakh devices, out of which there were about 1.76 lakh laptops. The average selling price (ASP) has seen an increase too. For example, the ASP of laptops reached ₹30,000 in the current quarter, while the annual average was ₹28,800.
Taking everything together, ASP increased to ₹27,000 in Q4. According to management, the improvement in ASP is not only related to the changing mix of products but also to the increasing popularity of premium refurbished laptops, which are now considered “equal-to-new” devices due to reliable warranty coverage.
Building a Truly Global Distribution Network
The primary factor behind the scaling ability of amrkart has been the increasing geographical footprint for its distribution channels. By the end of FY26, the company was providing refurbished devices in 46 countries, compared to 38 countries at the start of the year. Customer touchpoints have grown from 4,154 to 4,895 within the enterprises, institutions, distributors, and channel partners.
The contribution to revenue from the geographic regions has been diverse. India contributed 33%, the US contributed 21%, Europe contributed 20%, the UAE contributed 12%, and other parts of the world contributed 14%. Geographic diversity helps mitigate the risk to the company due to any particular country. Additionally, the company can be in the demand cycle for several regions together. The management indicated that talks with the distribution partners are progressing well in Europe and the US.
The company has successfully formed strategic partnerships with key technology distributors, and the management expects significant scaling of such arrangements going forward. While the contribution to revenue from the arrangement remains minimal currently, the management views the acceptance positively.
Capacity Expansion to Support the Next Growth Cycle
To support rising demands, Amrkart has expanded its global capacity dramatically. From FY25 to FY26, Amrkart will hire approximately 1,000 people to have 2,148 total employees for FY26.
An increase in the amount of engineering, sales, purchasing, and manufacturing staff accounts for a majority of these new hires. Of the total number of people hired, approximately 1,800 people are added to the production area.
Also, capacities have been expanded significantly. In Mumbai, Delhi NCR, Indore, Pune,chennai, Hyderabad alone, amrkart has gone from one refurbishing site to two refurbishment sites.
Additionally, amrkart has gone from three refurbishment facilities in the UAE to eight refurbishment facilities. According to management, amrkart's capacity now exceeds 150,000 refurbishments per month, while actual production is estimated at approximately 60,000 refurbishments per month on an annual basis.
Why the Global PC Supply Crisis Is Creating Opportunity
According to the earnings call, the main trend affecting the global PC market is structural disruption. Management noted that the reason for this disruption was due to a shift in demand due to the advent of AI-driven demand from hyperscalers, creating a diversion of supply for key components such as memory, storage, and processors, along with resulting price increases and shortages for new PC's.
Management indicated that the current environment will likely remain until late 2027, suggesting that prices will continue to stay high into January 2028. This provides a strong market for premium refurbished laptops since customers could pay less for premium refurbished laptops than they would for entry-level new laptops.
Strategic Inventory as a Competitive Advantage
Amrkart foresaw the cycle of increasing prices beginning with their stockpiling of inventory before additional upward pricing, increasing by approximately ₹490 crore on March 31, 2024, to over ₹743 crore on March 31, 2025. Time and again this was done with the intention of stockpiling inventory preceding price increases to ensure future profitability. Conversely, net debt declined from approximately ₹383 crore on March 31, 2024, to approximately ₹300 crore on March 31, 2025. The management is confident that their balance sheet will provide them the flexibility to take advantage of the current tailwind in the industry without the requirement to raise additional equity. Additionally, it was emphasized that they purchased inventory at acceptable prices to dramatically reduce the risk of compressing margins through eventual pricing corrections on their component level.
Building Trust, Affordability, and Category Leadership
Management believes that apart from issues with supplies, they will find it increasingly easier to build trust, create categories over time, and develop a greater customer base through financing options such as EMI payments for refurbished high-end laptops starting at ₹1000/month until paid off in full.
Additionally, amrkart is actively working on establishing channel partnerships and using digital marketing strategies; one such strategy involves using Technology Influencer Mukesh Kumar, who is creating a credible form of promotion for amrkart's proposition using influencer campaigns. Management reiterated many times the difference between demand and build trust; thus, Amkart will be filling-in/troubleshooting, where there is now a gap in refurbishment product adoption due to a lack of trust.
By providing 1yr - 3yr warranties on products that look like new, providing some level of institutional support from their global distributors, and more importantly; management believes Amarkart is now filling this void (gap) in the consumer's trust of refurbished product previously causing the limited adoption and therefore growth of refurbished products.
As the availability of new PCs continues to diminish and the cost continues to rise, Amrkart appears to have now not only positioned themselves as a refurnisher but at the same time positioned themselves as an alternative computing solution on a global scale. It seems fairly clear that amrkart's transition from being the largest refurbisher to becoming the global leader in Circular Computing is now beginning, based on current FY26 performances.