Grupo Elektra - Q1 FY2026 Earnings Analysis

Performance Highlights

Grupo Elektra posted Q1 FY2026 consolidated revenue of Ps.49,803 million, down 4% from Ps.51,768 million a year earlier, missing expectations as commercial income fell 11% to Ps.15,989 million. EBITDA declined 5% to Ps.6,619 million while net profit dropped 12% to Ps.1,633 million, partly due to a Ps.385 million increase in tax provision that offset a Ps.564 million improvement in other financial results.

The most important operating driver was the continued expansion of Banco Azteca México's gross loan portfolio, which grew 9% year-over-year to Ps.208,270 million, reflecting sustained credit demand in the underbanked middle- and low-income segments. Consolidated deposits rose to Ps.249,589 million from Ps.243,931 million, while the bank maintained a strong liquidity coverage ratio of 724% and a capitalization ratio of 15.53%, well above the 12% policy floor.

Management Outlook and Forward Catalysts

Management continues to pursue growth in financial services and digital banking, with 28.3 million digital customers at quarter-end and a network of 6,066 points of contact anchoring distribution across Mexico, the United States, and Central America. The launch of GS Motos and ongoing investment in digital retail channels signal a deliberate effort to diversify revenue and deepen customer engagement.

The central investor debate heading into Q2 centers on whether the 11% decline in commercial income stabilises as consumer spending recovers, and whether the consolidated non-performing loan ratio of 5.8% can be contained as the loan book continues to expand at a double-digit pace.