Good evening, everyone. Welcome to Brainbees Solutions Limited Q2 and H1 FY26 earnings call.

This is Anish Arora, and I have with me Mr. Supam Maheshwari, Managing Director and CEO of the company; Mr.

Gautam Sharma, Group CFO; Mr. Vivek Goel, Chief Business Officer of the company; Mr.

Abhinav Sharma, Country Head of Middle East Business Operations; and Mr. Anuj Jain, CEO of GlobalBees.

Kindly note that this call is meant for analysts and investors of the company. We wish to highlight that the call is being recorded, and by participating in this event, you consent to such recording, distribution, and publication.

All participants have been muted as per the default mode, and participants will be unmuted once we open the Q&A forum for the members to ask questions after the presentation from the management concludes. We will be covering the presentation in the beginning of the call, and will thereafter open for Q&A forum.

We would like to point out that some of the statements made in today's call may be forward-looking in nature, and the disclaimer to this effect has been included in the investor presentation shared with you. With this, I hand over to Mr.

Supam Maheshwari.

Good evening, everyone. Sorry, am I audible?

Because we had some trouble in— Good evening, everyone. Can you hear us?

All right. I'd like to say Happy Children's Day to all of you.

Thanks for joining our Quarter 2 and H1 26 earnings presentation. Anish, can we move to the next slide, please?

We'll take you through our H1 and Q2 performance highlights. This quarter and in H1, happy to sort of share the progress report card.

On the consolidated basis, we have been PBT positive, adjusted for ESOP cost, in Quarter 2 as well as for H1 FY26. Also happy to report adjusted EBITDA increased by 51% in Quarter 2 FY26, led by improvement across all our business segments.

We continue to remain free cash flow positive as well for H1 FY26. On the segmental updates, at a broad level, India multi-channel, despite deferring of consumer demand due to implementation of new-generation GST reforms, we witnessed sequential improvement in Y-o-Y basis on growth rate for GMV across for both online and offline channels.

With further expansion of our faster delivery initiative that we spoke about at length last time around during our earnings call, and plus new scale-up of our new initiatives that we will discuss— we have discussed last time, but we will share more details this time around—we believe our year-on-year GMV growth rate for both online and offline will be sequentially better for second half of the FY26. We continue to be PAT and cash flow free cash flow positive in H1 FY26.

On the international business, we delivered another quarter of sustainable growth as we have spoken about in our last several earnings call. This comes with a significant improvement in the adjusted EBITDA, which has been around 52% on a year-on-year basis for Quarter 2 ending 26.

On the GlobalBees front, we delivered another strong quarter of organic growth, with core quarters with core categories driving the growth momentum as well as the profitability.

We continue to improve our EBITDA across all the business segments. As Supam mentioned in the previous slide, our adjusted EBITDA for the console business in Q2 has grown by 51% year-on-year.

If you further break it down into different business segments, we can see India multi-channel business EBITDA has improved by 14% year-on-year. International business, as Supam mentioned, we talked about this in our previous calls that we will continue to focus on reduction of losses in international business, you can see a significant reduction of losses in our international business from a loss of ₹39.4 crore in Q2 FY25, we have reduced this by more than half to ₹18.9 crore in Q2 FY26.

GlobalBees EBITDA continued to improve, an increase of 23% year-on-year in Q2 FY26 over Q2 FY25. Others, which is the pre-school business, continued to deliver a strong EBITDA.

It's an increase of 55% year-on-year in Q2 FY26. This is a snapshot of Q2 performance for the console business.

Annual unique transacting customer, this is trailing 12-month, stands to be 11 million. It's a increase of 11% year-on-year.

This is for the India multi-channel business and the international business. Similarly, GMV has also grown by 11% for India and international business put together.

Revenue from operations on a console basis has increased by 10% year-on-year. Similarly, console adjusted EBITDA, which we talked about in the previous slides, has increased by 51% year-on-year.

Talking about the India multi-channel business EBITDA, it has increased by 14% in Q2 FY26 over Q2 FY25. We continue to improve the cash profit after tax, which stands at ₹71.6 crore.

It's an improvement of 157% over Q2 FY25. Now I hand over to Vivek to take you through the performance of India multi-channel business.

Just give us 1 minute, please.

Hello, everyone. Apologies for the technical glitch.

Happy Children's Day, everyone. The Q2 for India multi-channel business played out for us in two parts.

The first half of the quarter was very good, and we also alluded to it in our earnings call during our last time. The growth in the second half of the quarter was moderated as the customers deferred their purchases following the announcement of the new GST rate reforms, as Supam had also mentioned.

We witnessed this from mid-August to late September. In order to incentivize the customers during this period, we increased our discounts on our platform, which has resulted in difference in GMV and revenue growth, and also a slight reduction in gross margin that you will see in the next slide.

However, our adjusted EBITDA margins continued to expand. Further, it is important to note that the GMV growth on year-on-year basis has sequentially improved on both online as well as offline channels in Q2 FY26.

Also would like to highlight that we witnessed very encouraging signs of growth during and post-festive season for both online and offline channels. On the profitability front, I'm happy to announce again that India multi-channel business continued to be PAT and free cash flow positive in H1 FY26.

When it comes to online unique transacting customers, we grew by 11% in Q1 in Q2 FY26 to 10.5 million. India omnichannel business had a orders growth of 8% in Q2 FY26.

For half-yearly basis, for H1 FY26, we grew by 7%. Our GMV increased by 12% in Q2 FY26, and on half-yearly basis in H1 FY26 over H1 FY25, we grew by 11%.

As I mentioned earlier, India multi-channel business witnessed continuous expansion of adjusted EBITDA margins. Our EBITDA margins for Q2 FY26 grew to 9.1% from 8.6%, and for half-yearly basis, we grew to 8.9% from 8.5%.

When it comes to gross margin, as I mentioned, there is a slight decline in Q2 FY26 to 37% from 37.3%. However, at half-yearly basis in H1 FY26, we grew to 37.4%, which is 40 basis point growth over last year.

On India multi-channel business, just wanted to highlight few key initiatives that we are undertaking to drive growth. First of the ones is the new-generation GST reforms.

It's obviously a gift from the government. Almost 1/3 of our portfolio transitioned to 5% GST.

It'll help us spur demand for all retailers, including FirstCry. That will be definitely a very good positive for us.

Most importantly, what is in our control and what we are endeavoring to deliver, which we have spoken at length last time around, happy to report that we have expanded our delivery network from 4 cities to 13 cities, which in-house delivery network, and has helped us significantly to improve the TAT, and resulting in growth in those cities as well as the customer experience. We continue to expand on this initiative.

Our endeavor is to take and continue to expand month-on-month and adding more cities to be able to cover half of our shipments by the mid next year. The next initiative that we would like to share with you all is that we had witnessed in the past is around the footfalls in the offline channel.

Here we are aiming to roll out realigned product portfolio by H1 27. Here instead of a width strategy, we'll be playing more of a depth strategy, enabling us more margins, which we will be able to pass to the customer and thereby expanding our certain customer base that we will be able to target additionally without really losing any material margins at the gross margin level.

With this, we anticipate increase in footfall as well as conversion. Also with improvement in faster delivery network that we are creating, this all has been created in last 6 to 7 months only, and we rapidly continue to increase this.

We are encouraged with this to the extent that we will be actually spending more marketing moneys and we still manage our unit economics and be able to accelerate the growth because we are able to now offer much superior customer experience that we have not been able to deliver in the past. With these initiatives, we believe the best is yet to come for us and H2 and even FY27 looks more promising as we progress towards in the H2 and the FY27 zone.

Now I'll hand over to Abhinav to take you to the international business update.

Thank you, Supam, and good evening, everyone. Happy Children's Day to everybody.

The best forum you can expect to get wished for Happy Children's Day, I believe so. Very excited and happy to share that we've launched our first store in Riyadh in Saudi Arabia.

It's a company-owned and operated store in a mall. We launched this somewhere around the third week of August 25.

Off to a very promising start, both from a customer experience or customer feedback standpoint as well as the first sort of metrics that we've measured. Early days, but very promising, and very excited and happy to share with you.

I think 14th November is a very good day to share with you this news as well. Anish, on to the next slide, please.

As mentioned on the previous calls, both by Supam and Gautam as well as I, we're truly on our journey towards a very sustainable growth. This quarter as well, we've been able to deliver in both the countries, both the markets, UAE and KSA, very sustainable quarterly growth by optimizing our top-line mix, resulting in a very superior GMV to revenue conversion and superior gross margins as well.

Also our relentless focus on acquiring superior quality customers, ensuring a very high probability of retention, which has been a key driver to the results that we'll see in the next couple of slides. AUTC grew by 12%, Quarter 2 of FY26 versus the same quarter last year.

Orders grew 9% in comparable quarters. We saw 8% order growth first half of this year versus last.

GMV grew by 9% in comparable quarters, and 6% versus the first half of last year. Revenue, which actually is the metric that we all should look at from an international business to measure the scale of the business, we grew 13% from ₹208 crore to ₹236 crore approximately in Q2 of FY26 versus a same quarter last year.

To top it up, we expanded our gross margins by 300 basis points, from 23.3% to 26.3%. Sort of a similar story first half of this year versus last year: 13% growth in revenue from ₹392 crore to ₹443 crore, with gross margin expansion of about 200 basis points, from 23.6 to 25.6%.

Having done that, we also ensured what we promised over the last few calls is a relentless focus on burn reduction and loss reduction. We saw a significant reduction in Q2 this year of 52%, ₹39.4 crore going to 18 just under ₹19 crore, which then helped us with our EBITDA margins by 1100 basis points, from 19% to 8% in Q2 of this year.

Progressively, even in the first half of this year versus last year, we saw 42% decrease in losses in absolute terms and a similar sort of a EBITDA margin improvement, from 18% to 9%. This shows us a progressive sort of a loss reduction that the journey that we've embarked upon, the sustainable growth journey that we've spelled out very clearly over the previous calls as well as on this call.

If you compare FY25 versus FY23, we had about a 8. 831 bps reduction in our EBITDA losses, 25% going to 16%, and that continued in the first half of this year, the 16% versus last year became 9% this year.

There's a relentless focus and razor-sharp focus on both expanding the top line, gross margins, as well as reducing losses. That's been sort of our cornerstone for this year and for this quarter, as well as last quarter.

We believe that subsequent quarters also, we continue to deliver reduced losses and top-line expansion on both fronts. Anish?

Okay. Good evening, everyone.

I'm sorry, because of a technical glitch, I think the video is not coming on, but nevertheless, let me continue with the update on GlobalBees. Our core categories continue to demonstrate strong growth.

These core categories witnessed a 30% plus year-on-year growth in H1 FY26. Further, the margin profile for core brands also continue to be strong.

Core categories are operating at 5% plus adjusted EBITDA margins post corporate expenses. As mentioned on previous calls, we continue to rationalize our portfolio across other brands, and therefore the overall growth and overall margins are the way that they are.

Our endeavor is to complete this rationalization of other brands within the next couple of quarters. Overall, the revenue growth in H1 FY26 was 21% year-on-year, with an adjusted EBITDA margin of 1.6%.

Specifically for the last quarter, we've grown at 14% overall. However, if we focus on core categories, the growth is 20% plus year-on-year.

If we account for the new settlement policy of Flipkart that some colleagues in the industry have also called out, the year-on-year growth is in the mid-20s. An important point I would like to highlight is that this entire growth is organic, and the last acquisition that we made was in September 2022.

Anish, Yeah, thanks. I think we're still 4 years into the business.

The first year went in priming the engine, and really we've been scaling up our businesses over the last 3 years. If we look at our EBITDA performance over the last 3 years, you will see that the adjusted EBITDA has moved from a 0% in FY24 to a 5% plus adjusted EBITDA in H1 FY26.

We continue to endeavor to demonstrate a great balance of growth as well as an improvement in adjusted EBITDA.

This is the combined result of all the four business segments. In fact, we didn't have any slide on the education business, the preschool business revenue in Q2 has grown by 22%, and we talked about the growth in the EBITDA, which has grown by almost 55% in Q2 over last year Q2.

If you combine the results of all the four business segments, we get a 10% growth in our net revenue for Q2 over previous year Q2, and the H1 revenue growth is 11% year-on-year. If you see the gross margins, gross margins while for the Q2 there is a slight dip in the gross margin, largely coming out of the GlobalBees business, which Anuj explained in the previous slides, rationalization of other brands, which should be over in couple of quarters.

Second is a slight change in the revenue mix within the business segments. However, H1 over H1 continue to improve.

Gross margin has increased by 10 bps in H1 FY26. A clear focus on improvement of the adjusted EBITDA on a console basis.

We talked about the Q2 performance EBITDA performance, 51% increase in console adjusted EBITDA for Q2 year-on-year. Similarly, if we talk about the H1 improvement, it's an improvement of around 38% year-on-year.

From 4.3% improved to 5.4% in H1 FY26, and 4.2% in Q2 FY25 has reached to 5.8% in Q2 FY26, largely coming out of improvement in profitability across all the four business segments.

Thank you, team. We'll now wait for a few minutes for the queue to get formed, and then we'll start with the Q&A.

I request participants to raise the hand for asking the questions. We will unmute you one by one, and you'll have access to mic.

Please introduce yourself and the name of the organization you represent. The participants are also requested to limit their questions to a maximum of two.

For any follow-up questions, you may join the queue again. First question is from Videesha Sheth.

Videesha, please unmute yourself.

Hi, am I audible?

Yes, Videesha.

Hi. This is Videesha Sheth from Ambit Capital.

To begin with, can you double down on the initiatives that you talked about on the product portfolio in the offline channel? You did touch upon depth, focusing on depth versus width, but if you could elaborate on this as to whether would the initiatives be towards focused assortment or tighter pricing, or what is it that you're thinking about over here, please?

Vidisha,

yes, the product realignment will be around instead of focusing on width, which allows us to have more leeway in margins, and able to offer better prices to sort of customers as well without any material dent in our gross margin, enables us to address a more range of customers that today will attract more footfalls, more conversions, and also further lead to more online volumes. All of this will be enabling us from a multi-channel view.

That is what our thought process is. We have done some experimentation, but the whole change will be actually applicable somewhere on H1 of 27.

Sorry, Supam. Just to clarify, offering a wider assortment would be a part of this?

No, no. It'll be wide enough.

Let me put it that way. Today, we have very wide.

We want to make it adequately wide and increase more depth to be able to get the leverage on economies of scale to be able to have the more latitude on margins, to again be able to get that set of extra set of customers who we are maybe losing out, and making ourselves to be a more destination play as we have been in the past. This will make us even a bigger destination for mothers, baby, and kids from across all sort of price segments.

As both as an omnichannel player, both in our home brands as well as in our third-party sort of brand partners, we have products across price ranges. We anyway cater to all kinds of price segments, but with this latitude will also help in offline, obviously, the variety has to be slightly limited, you can't keep such a wide audience or such a wide sort of a price laddering as what you can keep it online.

We are just realigning that a little bit in the offline front as well, to be able to make footfall and conversions to further improve for where we stand is a change that we will be making without compromising any material sort of gross margin loss for us as a business. Hope that answers.

Okay. Like you said, it's been rolled out in certain stores, if you could talk about how has the growth profile improved over there?

Look, it's a very early sort of a only few stores that we have done. Therefore it has to be done at a scale.

We're very confident that it will work out, and it'll actually deliver us the yield that what we are anticipating. We're very, very confident.

That approach compounded with our faster delivery and increase in our marketing spend will drive the overall growth for the business in the India multi-channel is what we believe will definitely accomplish because we had issues around delivery, which we have talked about last time. As you have seen our progress, that instead of 4 cities that, in less than a matter of 7 months, we expanded from 0 to 4 and now 4 to 12.

We will continue to expand on a monthly basis, and our endeavor will be by mid next year, we'll be able to take it to almost 50% of our business. Then with that, increasing marketing spend will mean more retention of customers, new customers and more retention of those customers, driving the growth.

Our whole ambition is to drive growth, and obviously our gross margins and some of those things are structurally well-placed to continue to increase over a period of time.

Got it. Sure, I'll get back in the queue.

Thank you. All the best.

Thank you, Videesha. Next question is from Rohit Mundra.

Rohit, please unmute yourself. Haan, namaste, sir.

Sir, main ek shareholder hoon. Mera ek suggestion tha.

Jaisa aapke store mein bhi main gaya hua hoon aur main Mini Klub mein gaya na, unhone bhi koi foreign brand ke saath tie-up kiya hai. Toh wahan pe clothes ke jo hai na quality hai na bahut achhe hain.

Toh aapke paas area ka toh kami hai nahi, aapke paas store bhi hai, aap bhi tie-up kar sakte hain. Usse aap premium customer ko bhi tap karenge na toh baaki bhi hai na sale increase hone ke chances rehte hain.

Bas ye suggestion tha. Aap Mini Klub mein ek baar hai na jaake dekhiye ki matlab wahan pe kaise unhone na abhi foreign brand

ke saath tie-up kiya hai kisi. Toh wahan pe clothes ki range hai na badh gayi hai.

Toh apan bhi aisa apan company as a company kuch kar sakte hain aisa. Sure, Rohit.

Bas ek suggestion tha. All right.

No, thank you. Thank you.

All right. Woh sirf premium customer ko aap cater karte hain na, fir matlab aur dheere-dheere fir hai na jo premium khareedne aayega woh normal bhi khareed lega matlab.

Toh dono hai na ek improvement ho sakta hai usse na? Sure, Rohit.

Thank you. Thank you.

Thank you, Rohit. Next question is from Mr.

Jay. Jay, please unmute yourself.

Hello. Am I audible?

Yes. Hello?

Jay. Yeah.

Very good evening, Supam sir. Sir, myself Jay Ladha, I am from JL Capital.

Actually, I am a super bullish on this baby care sector. As we know, we are only player in a organized sector and totally market is unorganized.

How we are going to penetrate ourselves in this market, and what's our strategy for this?

Jay, you're right on one front that we have 84% of the market is unorganized. It's a massive market.

We almost have 25 million babies born, almost between 0 to 12, we have 300 million children across the country. We are the largest multi-channel mothers, baby, and kids platform, having around 1100 plus stores and significant online playbook.

As a part of our strategy, we will continue to increase our store footprint, make our products more relevant, be able to address customer audience through different tiering and product tiering as well. From an offline perspective, get those customers from offline to online, and a lot of our customers go from online to offline.

In our online, we'll continue to invest behind a delivery experience that has been our pain point for last couple of quarters that we have started to improve materially. Plus, we are continue to invest around technology and personalization to be able to find relevance across different segments of sociodemographic, economic demographic, and therefore be able to expand that.

Then there are several initiatives around building connect programs with mothers, baby, and kids, whether through our schools, where they can enroll their kids and be a partner in that education journey; or through our hospital initiative program, where we connect with them at the time of delivery; and a lot of other influencer programs that we do in the baby and mothers and baby and kids space. We run the largest influencer program in the country through which we will connect.

I think it's a whole ecosystem of digitally, physically, within the shopping, outside shopping, in education that we are trying to stitch together to be remaining on top of the mind as a choice both from a retail platform as well as a brand product platform. Brand and product both is what we are endeavoring to deliver and build partnership, long-term partnership, and build joy of parenting to the young parents.

That has been our journey, and we'll continue to pedal down across all of these facets that I described to be able to capture more and build penetration and capture more and more wallet share of those customers from a offline and online perspective. In a very short way, I tried to explain this, but each facet has a very detailed sort of a overview of how we're going to do it.

We're going to continue to innovate on that to be able to drive relevance and effectiveness while building our KPIs from a top line and bottom line from a shareholder perspective. Yeah.

Thank you for opportunity. I am super bullish on this baby care sector, and all the best for ahead.

Thank you, Jay.

Thank you. Next question is from Mr.

Viraj Shah.

Hello?

Yes, you are audible.

Hi, sir. This is Viraj from Tatvic Digital Analytics.

Sir, my question is with regards to India multi-channel business. As you rolled out the faster deliveries from 4 cities to 13 cities, my question is that what is the growth profile that you are seeing in terms of GMV or revenue, if you can share some light there in comparison to the other cities for India multi-channel?

Viraj, it's significantly higher growth compared to the previous other cities that where we do not have our own delivery network as of today. It's significantly higher.

As I explained in the last call as well, the reason, the rationale for doing and building our own sort of a network will yield us a better control on customer experience, reducing RTOs, reducing returns, improving customer experience. All of that will yield at the end of the day a superior customer experience and a repeat.

Our particular category is a high-repeat category and therefore will enable us to drive growth as we acquire more customers building that cohort. We remain extremely sort of bullish on expanding our network and then driving more marketing on top of it to be able to accelerate our overall growth.

Understood, sir. Sir, if you can share what percentage of our total GMV that can be coming from this 13 or 4 cities that you have rolled out faster deliveries?

Broadly around we in last 6 to 7 months from 0% to almost we have covered 20% of the shipment, and by middle of next year, we'll cross 50%.

All right, sir. Understood.

Sir, my second question is with regards to the gross margin. In India multi-channel business, is there any increase in the share of home brands in our total revenue?

Viraj, we have talked about the gross margin improvement levers in previous calls as well. More or less, the gross margin expansion levers remain same, which includes increase in the mix of home brands, increase in fashion mix, and continuous improvement in margins with the third-party brands with continuous negotiations.

All these factors put together led to an improvement in gross margin. It remains more or less same every quarter and every year.

Okay. Sir, my question was more towards the number that you had said for FY25, 55% contribution.

It's continuously increasing, Vraj, yes.

Okay. Yeah.

Understood, sir. Thank you.

Thank you, Viraj. Next question is from Ashok.

Mr. Ashok, please unmute yourself.

Hi. Thanks, team.

Gautam, Supam, thanks and congratulations for the results. I have a couple of questions.

One, your gross margin in India business has declined, but EBITDA is increasing continuously. Basically, what line items are leading this improvement?

Question number one. Question number two is on the international business.

What are the improvement areas in international business in terms of EBITDA, and by when we'll reach our break-even stage? Third one is do we have any impact of quick commerce on our business?

Ashok, on the first point, your question was despite of a dip in the gross margin, we were still able to improve the EBITDA. Gross margin dip is a one-off thing, which is a result of giving away higher discounts to drive better conversions after the GST 2.0 was announced mid of August.

Gross margins post-festive season is back on track. However, despite of a 30 bps reduction in the gross margin, we were still able to improve the EBITDA by almost 50 bps is a combination of efficiency in marketing spends as well as driving efficiencies in SG&A as well.

On the second one, Abhinav, you want to take that or do you want—

Ashok, hi. Your question was around the gross margin expansion, correct, for international?

Gross margin and EBITDA.

Gross margin and EBITDA, by when it is

I'll answer the gross margin first. It's along the similar lines, it's a function of how we optimize our top line and the category mix and the home brand share, progressively improving the home brand share, progressively also improving the mix of the categories that we operate in.

Essentially, a very, very strong focus on what rolls up to the top line, while the top line expands, what rolls up to the top line. That is very, very key to the gross margin expansion.

That's point number one. On the EBITDA, obviously gross margin, it starts there, but there are multiple other cost heads.

KSA and I would say even UAE are fairly new businesses, UAE being about 5 years and KSA in the third year. With scale, we will see opportunities for efficiencies kicking in in all the line items.

Optimizations in marketing for sure has been done by us. We've mentioned in previous calls, we mentioned earlier in this call as well, and again, that our focus is on acquiring quality customers.

While there are strong headwinds for increased rates in CPCs and CACs and CPMs, we fundamentally believe that acquiring the right customer with as minimal cash burn while expanding top line and improving retention of the acquired customers will help us with the EBITDA improvements. That's one.

Second is the operating leverage. You'll get those operating leverages in the SG&A as you scale.

There's a lot of head room. We are a young business.

There's a lot of head room to grow and improve on efficiencies for all cost line items.

Just to add, Ashok, in fact, during our March earnings call, we have talked about the levers which will expand gross margins in international business, which are pretty similar to what has led to a gross margin expansion in India business. It's the same playbook that we have taken in Middle East.

In fact, we have also shown where did we stand in terms of gross margin in India business for the first 7 years. The same gross margin we have achieved in Middle East within 4 years.

India business became profitable in 10 years, and given the gross margin journey in Middle East, we believe that we should be profitable much faster than we became in India. You can see testimony to it is losses has considerably gone down, it's a reduction of 52% in Q2 and almost 40% in H1.

The losses that we have reduced from 23 to 25, a similar reduction is observed, you can see in 6 months itself. That's the guidance we can give, Ashok.

Ashok, I'll take the third question on the quick commerce. We have mentioned, we have communicated in previous calls as well that our overlap with quick commerce remains small.

Exposure is fairly small. However, the quick commerce has led to an increase in consumer expectation when it comes to on-time delivery and faster delivery of goods being shipped online.

In order to meet those increased expectation is why we have been expanding our initiative around faster delivery, where Supam has mentioned that we have expanded to 13 cities from 4 cities over 7 months. Yeah.

Okay. Thanks, team, for clarifying, and all the best for future.

Thanks, Ashok.

Thank you, Ashok. Next question is from Sheela.

Sheela, please unmute yourself. Thanks for taking my questions.

My first question again is on faster delivery. Just want to understand, now we have expanded into 13 cities, what part of our portfolio is actually doing well on the faster delivery side?

That's first part of my question on faster delivery. There's a second part to it, but I'll wait for your response before asking that question.

Sheela, what do you mean by when you say portfolio? Supam, what I mean is, is it diapering which is doing well or apparel which is doing better there?

That's the kind of question I have. Sure.

Okay. Look, it's a total mix.

We are taking city by city. We are not saying that in that particular city, we will only do certain goods or hard goods or apparel or fashion or diapering.

When we are taking a city, we are building that network. In a city, you have to build a network where the source can come from various different cities.

We have warehouses in different cities. Obviously, we'll try to have the first allocation within the same city so that the logistics cost reduces as the network design becomes superior.

Having said that, we are delivering all products, whether it is a consumables, whether it is hard goods, or whether it is fashion, for the cities that we are mentioning, specially where we have built a network where we can do the first mile and mid mile as well. I hope I'm able to answer.

As over time, the network will become more and more stronger, with that, we'll be able to do a large part of that city as we go along, and build more cities in the network itself. The whole logistics is a network game, and doing it for ourselves, we are custom-tailoring it in a way that it suits our requirement the most, keeping young parents in mind in terms of meeting those standards which we can't rely on as much as we can rely on our own sort of a network.

That's the idea. Covering all the portfolios.

Understood. The follow-up which I have is, the current proposition which we have in terms of delivery, can it meet our requirement to be profitable in this channel?

I think that's where I am getting to. Okay.

Look, we did share this in the last or maybe last call itself, that this is not coming at a sort of a huge sort of a incremental cost. Yes, in the short term, there might be some bps change, but on a medium term, we will be as competitive or as cost-effective as we have been working with in the past with the third-party logistics.

It's not going to be denting our unit economics in a material way is all what we can say, while improving the customer experience in a very, very dramatic way. Okay.

Supam, as we are on the conversation on e-commerce, do you have any updated thoughts on selling on third-party e-commerce channels, the Babyhug products or any of your own-brand products? Sheela, we remain glued to building our own network, our own ecosystem, as what we have seen.

We would like building cohorts on our own platform for both from a window of being the largest multi-channel retailer as well as the product brand for which the customer will come back and shop with us through our multiple home brands. That has been our strategy for a long, long period of time.

We had the similar questions around 2015, 2016. We debated internally, and we remained focused on that strategy.

While as of now, we continue to remain on that path. However, we are analyzing and we are thinking through that more closely.

We haven't changed our mind yet, but it's something that we'll continue to observe. There are other channels who may be better in certain things because they're solving for a customer experience for, let's say, 10 minutes or a 15-minute, but so far we haven't seen those are not very, as we said, those do not overlap so much for our business.

I think we will retain our original strategy for now unless if anything dramatically changes, which we don't think it'll change over foreseeable future. We will continue to be a dominant force both as a shopping destination online and offline, and also as a brand and product destination or a I would say preferred choice of customers from a brand and product perspective, driving back both cohort onto our platform.

I hope I answered that. No change in strategy.

Understood. My final question is, now given that the first half is behind us, how should we think about the full-year FY26 growth on the revenue front for both India multi-channel and international?

India multi-channel, I think Vivek did mention this. Sequentially, we will certainly grow higher than what we have done in Q1.

Q2 was higher than Q1, Q3 and Q4 H2 will be higher than H1 for sure is what we believe. Even the post-festive during festive and post-festive season have been very good for us.

We believe that should continue. Given our inputs that we are putting through increased marketing efforts on back of better customer experience through delivery and our overall focus around, overall technology, personalization, sorting frameworks, and so on and so forth, should continue to drive us the cost efficiency while being able to make that spend happen on marketing to maintain our unit economics intact, but delivering higher growth, is what you should be seeing from us for the H2 of FY26.

That's for India. For international as well, I think Abhinav did mention, we will have a similar sort of a journey.

Our focus is sustainable growth in Middle East. We heard this as a feedback when we came to, we had a different playbook that we had in mind when we started our our Middle East playbook.

However, after entering into the public markets, we heard the public market sort of a view point as well, and we changed track to be able to build a sustainable growth track, to bring first our unit economics in place while getting the product mix, both category mix and the home brand mix, to be able to align a faster, superior unit economics. Once you've done that, we will be able to accelerate the paddle around marketing to be able to drive even further growth, but the burn will remain burn will remain very it'll it'll shrink faster.

That's what we had all desired for. We are walking down that path as what we had promised, and I think we are delivering that.

You should continue to see that happening over the next few quarters, including FY26 H2 as well as in FY27. Just a follow-up here, and that's my last thing.

In last quarter, you called out that the India multi-channel revenue growth will be early teens in FY26. Do you hold on to that view or it's going to be better than that?

We definitely believe that we should be somewhere there, hopefully better than what we have said, but there are signs, but we were caught off guard when we said in middle of August, first half of the second quarter, we were early teens because of GST, which Vivek covered. While we grew on a GMV basis around 12%, however, we had to increase discount from ensuring that the customers don't defer their purchases.

Although we're not seeing that now. During a little bit of a festive season, we were seeing a little bit of a heated approach.

However, it has normalized. From a gross margin window, we are back on track, while the growth continues.

We believe it should continue the same way for the remainder of the fiscal year, even in FY27, backed with all of the inputs that we are putting through. We should be back on track what we had promised earlier in our previous earnings call.

Hopefully we'll surprise, but I don't want to commit on a superior than that for now. All we can say, as a management team, we are fully geared to deliver growth.

While we have been able to expand our gross margins and our EBITDA almost on a recurring basis since we have been sharing our results publicly, but we believe that all the inputs that we are taking should continue to expand and deliver the growth, because as a team, we are not very happy with the growth that we have delivered so far, and there is a lot more that we can deliver, we know for a fact. We believe that we will definitely be able to deliver that growth with all the inputs that we have talked about with incremental marketing.

We remain very bullish, and hoping to sort of demonstrate that, walk the talk. Once it happens, we will happy to thump it on our next earnings call or next to next earnings call.

Sequentially, you should be able to see better growths.

Sheela. The next question is from Mr.

Sanjay. Sanjay, please unmute yourself.

Thanks for giving me the opportunity. I have one question, this GlobalBees.

Now, is there any strategy for increasing how customers are coming to know that there exists a platform, GlobalBees, and there are so many wonderful brands? Because I have asked at least 10, 15 persons in my group, and nobody has heard about this platform.

Sure. Sanjay, firstly, we're not a platform in the typical sense as you would think about it.

We have a host of brands in some key categories that we play in, and these brands are sold on marketplaces. If you go on Amazon, for example, or Flipkart, you will see all our brands selling over there, and you will see them amongst the bestsellers on these marketplaces.

It's really these channels where you will find our brands. I was going through this even today.

Products are being sold on Amazon or Flipkart. That's right.

We have some fantastic categories that we operate in, and we've got a huge range of products that we sell on Amazon, Flipkart, quick commerce, across marketplaces.

Sanjay, think of us as a house of brands, where our identity is brands, not GlobalBees as a company. As consumers will know a lot of Hindustan Unilever brands, but may not know Hindustan Unilever.

Just think of that as a illustration. Because just before this, there was a question from I think Sheela, you mentioned that you'd like to have your own platform or your own channel for distribution or delivering goods.

No, that's for India multi-channel, Sanjay. That question was for India multi-channel, not for GlobalBees.

That's right. Over a period of time, we'll expand on channels even in GlobalBees, but right now we remain focused as a preferred online sort of a channel is what our playbook is, but yeah, over time, we'll build more channels into that.

While we have many platforms to partner with, but yeah. What is the business value from this platform, approximately in terms of percentage if you can tell?

95% plus. 95% plus?

From all these platforms, all online platforms. Online.

Yeah. That's all from my side.

Thank you. All right.

Thank you, Sanjay. That was the last question.

Thank you, everyone. I hand it back to Supam for concluding remarks.

No, nothing. Thank you, everyone, for attending our Quarter 2 result presentation on a Friday late evening, and once again, Happy Children's Day.

Thank you once again. See you next quarter.

Thank you, everyone.

Thank you. Thank you.

Thank you.