61.3% Retailers Report lesser unit sales in 1H’26 leading to 50% Worried About Festive Period Sales in 2026, says AIMRA-Techarc Retailer Pulse July 2026

National study of 1,126 verified retailers across 22 States and Union Territories finds unit sales falling sharply even as rupee turnover holds, with independent, single-store and North/East retailers facing the greatest risk heading into the festive season.

Gurugram/Srinagar, July 22: The All India Mobile Retailers Association (AIMRA), representing more than 1.5 Lakh retailers of mobile phones across the country in collaboration with research firm Techarc, today released Retailer Pulse 2026, the first nationwide, data-driven study measuring how India’s mobile retail trade is experiencing the impact of rising memory and component prices in 2026. Based on 1,126 verified responses from mobile retailers across 22 States and Union Territories, the study represents the largest and most geographically comprehensive survey of its kind conducted by the association.

The report finds that the current price pressure is fundamentally a volume story rather than a value one. While 61.3% of retailers report a decline in the number of handsets sold in the first half of 2026 compared to the same period last year, only 39.3% report a decline in rupee turnover, with 43.7% actually reporting turnover was up. Rising component and memory costs are pushing per-unit prices higher, masking a genuine contraction in the number of phones changing hands at the counter.

Nearly half of all respondents (49.0%) describe their business as having declined in H1 2026 versus H1 2025, against just 21.6% who report growth. Looking ahead, sentiment toward the festive season, traditionally the industry’s strongest trading period, is markedly cautious where 50.0% of retailers say they are worried about the upcoming Jul–Dec festive half compared to 2025, versus only 26.6% who are confident, and 47.4% expect the period to decline outright.

The study also finds that pressure is concentrated in the mass market. 80.9% of retailers expect the Base (₹10,001 – ₹20,000) and Mid (₹20,001 – ₹30,000) price segments to bear the brunt of pressure in the second half of the year. Smaller, single-store retailers report the highest exposure to business risk, while larger, multi-store operators report comparatively greater resilience. On business continuity, 14.0% of respondents say they see a real risk of not remaining operational through December 2026, with a further 34.1% describing themselves as unsure.

On policy, the survey found a clear and consistent ask. 53% of retailers named a reduction in GST on smartphones as their single most important request of government, ahead of relief on import duty for memory and components. On the industry side, retailers most frequently asked device brands (OEMs) to absorb rising costs to protect entry-level price points and to expand no-cost EMI and financing options at the point of sale.

“For years, AIMRA has spoken about the prosperity and welfare of mobile retail in India from instinct and lived experience. With Retailer Pulse 2026, for the first time, we are able to speak with data — gathered directly from over a thousand of our members across every region of the country. This report confirms what many of us have felt at the counter through the first half of 2026. Rising memory and component costs are pushing phone prices beyond what our customers can afford. The Government and the Industry is urged to consider our recommendations for necessary interventions to rejuvenate the sentiment ahead of the festive period.”

— Kailash Lakhyani, Founding Chairman, All India Mobile Retailers Association (AIMRA)

“The findings reveal a grim situation in the mobile retail fraternity and it could compound further if the necessary interventions as suggested by the data are not collectively acted upon.  The ramifications would not only affect the industry but have macroeconomic challenges leading to potential closure of marginal traders.”

— Faisal Kawoosa, Chief Analyst & Co-founder, Techarc

Key Findings at a Glance

• 61.3% of retailers report fewer units sold in H1 2026 vs H1 2025, while only 39.3% report lower rupee turnover — the core affordability signal of the study.
• 49.0% describe H1 2026 business as declined; only 21.6% report growth.
• 50.0% are worried about the festive season vs 2025; only 26.6% are confident, and 47.4% expect the half to decline outright.
• 80.9% expect Base and Mid price segments (₹10,000–₹30,000) to bear the most pressure in the second half of 2026.
• 14.0% of retailers see a real risk of not remaining operational through December 2026; a further 34.1% are unsure.
• 53% name a cut in GST on smartphones as their top ask of government.
• The study spans 1,126 verified retailer responses across 22 States and Union Territories and 7 languages, gathered anonymously.

About AIMRA

The All India Mobile Retailers Association (AIMRA) is the national body representing over 1.5 lakh mobile phone retailers across India, working to protect and advance the interests of the independent and mainline retail trade through advocacy, industry collaboration, and member support.

About Techarc

Techarc is a technology market research and analyst firm providing data-driven insight on consumer technology markets in India, working with brands, industry bodies, and policymakers to translate market signals into actionable strategy.

Contact

For more on this report, please get in touch with

AIMRA – info@aimra.org

Techarc – info@techarc.net