Good evening everyone. Welcome to our last quarter presentation for FY26, ending March 31st, 26.

We will be taking you through our performance for both the quarter as well as for the full fiscal year FY26. Harsh, can you please move forward?

Please continue. Yeah.

This is all what we will cover today in FY26 performance, India and segment-wise, India multi-channel, international business, GlobalBees, and other segments, and overall financial summary and supplementary information, which is already there in the presentation as attached, which has been available for everyone, both at NSE BSE and at our site as well. Now we'll straight dive into FY26 and Q4 performance.

Key highlights for the quarter four as well as for the FY26 console business, if you talk about, we continue to remain free cash flow positive for the entire FY26 for the console business. Overall revenue increase has been 12% year on year for the FY26 over FY25, and overall 24% year on year increase in adjusted EBITDA, adjusted for ESOP cost for FY26, and overall a very meaningful drop in net losses for both Q4 as well as for FY26, 57% and 23% year on year.

From a segment perspective, all three segments, key segments, I'll go one by one. India multi-channel, as we've been talking about for last few quarters, that our endeavor is to focus on growth and make certain structural, I would say, key initiatives that we have undertaken in last few quarters, which have started to yield results.

Sequentially, if you see year-on-year basis, every quarter we have made improvement. On the right-hand side you can see the growth, quarter-wise we have been able to demonstrate growth.

In Q4 now we are at 11. This meeting is being recorded.

We are at 11.4% in Q4 growth, and despite competitive intensity, which continues to remain in the quarter, and our initiative specifically in offline channel that we had talked about in last two quarters that was expected to go live in Q4 in the SS26 has gone live and has also yielded and resulted in a mid-teens growth in the GMV for our offline channel in India multi-channel. That's a very good outcome of our initiative.

Overall we believe that with the current initiatives that we have taken across in the India multi-channel, we believe that this trajectory of sequential quarterly better growth will continue in FY27. For FY27, we continue to believe that because of our initiatives, that we will have a better growth overall for FY27 than compared to the entire FY26.

We are happy to state that we continue to remain PAT and cash flow positive for our India multi-channel business for the entire FY26. In the international business, we continue to remain seeing the elevated promotional pressures from the horizontal commerce players that we had talked about, which entered the market in late quarter three of FY25, but we continue to remain super laser-sharp focused on sustainable growth and has been able to reduce our adjusted EBITDA losses by 33% for the quarter four year-on-year basis and 35% for the entire FY26.

It's been a very good progress on the international side as well, because our goalpost is to build the business in a sustainable way and reduce our losses to zero as earliest possible with a certain structural math, both in terms of gross margin improvement as well as through obviously home brand expansion and sales mix expansion. On the GlobalBees front, we had a very strong quarter on both organic side as well as profitable growth.

We delivered 28% of core category year-on-year growth in FY26 with roughly around 92 crores of adjusted EBITDA post corporate expenses, and we'll talk about it in a little more detail as we go along, but these were the highlights that we wanted to talk about. Moving further, you will see, Harsh, can you move on please?

Yeah. Performance for the console business at a GMV level, we increased by 10% over FY25, revenue overall grew by 12% to 8,547 crores, and adjusted EBITDA has increased by 24% on a console basis year-on-year to around 486 crores, and cash profit for the entire year on a console basis has roughly reached around 312 crores, which is a 49% increase over the last fiscal year.

Obviously happy to report that we continue to PAT and cash flow positive in India multi-channel business and also on a free cash flow positive on a console basis. Business segment-wise detailed performance in India multi-channel, for the full year revenue grew by 9%, international revenue grew by 10%, GlobalBees around 20%, and other segments, largely preschool, grew by 11%.

Gross margin in India multi-channel, as you remember in our Q3 presentation as well, because of the heightened competitive intensity, we had close to around 140 bps of gross margin pressure that we saw in Q3, which has continued, and a bit of other gross margin loss that we saw was largely because in our manufacturing part of our business, which is again very transitional because of the two factors, which is rupee depreciation as well as crude-linked raw material prices, which has gone up. The good news would be that these are very transitional in nature.

These will be passed on to the customers and the impact of the incremental gross margin loss apart from the Q3 will be regained back in quarter two, as they are being passed to the customer in a regular BAU. In international, we saw a significant improvement in the gross margin expansion, 250 bps, leading to 22% increase in gross margin and GlobalBees, 9% and Others, 11%, leading to adjusted EBITDA for India multi-channel around 505 crores, international improvement of 670 bps, with overall reduction of 35% year-on-year basis, GlobalBees, 160 bps improvement and 153 percentage improvement over FY25.

Our preschool segment also saw 21% improvement overall from FY25 on the adjusted EBITDA. Moving further, Q4 snapshot, our GMV grew by 10% for our console business, revenue from operations grew by 12%, consolidated adjusted EBITDA grew by 18%, 218.7 crores, and cash profits grew by 4%, around 72.3 crores.

Moving further, now we can go into our segment-wise performance. India multi-channel, which is our largest segment, we will talk about the key initiative updates that I'm sure all of you are eagerly waiting to hear on.

Very happy to state that we have really worked hard on building and strengthening our key initiatives: RocketBees, which was 13 cities in Q2 and 22 cities by the end of Q3, and now by end of Q4 we have moved up to 62 cities, and overall percentage of our online delivery volumes, we are able to deliver 40% plus by end of Q4 through our RocketBees initiative, which is obviously having a far better impact than some of our other shipping partners, and resulting into incremental growth as well as customer experiences in the cities and the pin codes that we are delivering for under the RocketBees. We will continue to expand this.

We had promised that we will deliver to around close to 50 plus cities and more than almost 45 to 50% of our volumes in our online sort of business by middle of the year. We have been able to deliver it ahead of the curve, and we comfortably should cross that number by the next quarter end.

On Quick, again happy to note that we had started a pilot phase. Now we are very clear that we will be going ahead with this strategy, no longer a pilot anymore now.

It is doing extremely well, and we have expanded to five cities over last few months. This initiative was started from 1st of December 25, and it's just been a few months.

By end of March, we had crossed five cities, and here we are doing select catchments in the cities, and in the catchments that we are doing, we are already crossing 20% of our overall online orders under our Quick initiative, and where we are able to deliver the customer in less than three hours. We expect over the full year of FY27, our Quick deliveries over the entire B2C shipments should cross roughly around 10% of our overall online business.

This we will continue to expand on recurring basis nonstop, as we have been able to leverage our COCO stores, our warehouses, our stockist network, and a few of the dark stores as well. This has been a very good customer experience, has been superb here, and we continue to believe in the strategy, and we believe that as we increase more cities, more catchments within the existing cities where we have opened, we will continue to get the love of our customers and be able to defend some of the categories that we had impact from some of our competitors, especially around dieting.

We will continue to double down on our expansion of Qwik, and we are extremely happy that we really have executed well on our two initiatives. The third initiative that we talked about was addressing both footfall as well as the growth in the offline channel.

We wanted to fix the product mix, and we have launched in SS26, somewhere around March, and the impact has been fairly solid. As you can see in the year-on-year GMV growth for Q4 in the offline business has been around 15%, which has grown substantially from Q1 to Q2 and Q3 and Q4.

All our three initiatives have been delivering well. I would only have only one point to make, that while most of these initiatives are fairly new, if you look at RocketBees, it's just hardly a few quarters, and it takes time to build a mature city under RocketBees.

The area under the curve or the number of shipments within a city that we can serve through a RocketBees takes time to build that network. The real impact of RocketBees you will see as more and more customers get impacted and build their repeat cohorts and build their frequency while having great customer experience.

Likewise for the Qwik and the offline initiative we're just starting. You can be sure of that in FY27, the growth for the offline channel should continue to be as strong as what you have seen in the mid-teens, what you have seen in Q4.

With all these three initiatives, we remain fairly, I would say, confident of the FY27 growth will be much superior than the FY26, and this gives us the confidence and clarity of how we are actually being able to execute and we'll be able to deliver that. Moving further, I would request Vivek to take India multi-channel progress.

Vivek, over to you.

Thank you, Supam. I'll take you through the progress of India multi-channel in this quarter as well as financial year 26.

Happy to report that in financial year 26, we grew by 11% in terms of GMV in India multi-channel, and for the first time we crossed 1 billion dollars in GMV for the India multi-channel business. Moving to some of the key updates, as Supam has already shared on some of these things, we witnessed sequential improvement in year-on-year growth rate for revenue despite heightened competitive intensity during the last two quarters.

Our diapering category continued to witness heightened competitive intensity during the quarter, which led to pressure on both growth as well as margins. Whereas our non-diapering portfolio, which contributes to over 85% of our GMV, remains very robust and continues to perform well.

Our annual unique transacting customers stand tall at 11 million. Our orders for quarter 4 FY26 grew by 10% and GMV grew by 12%.

Our GMV for FY26, as I already mentioned, grew by 11% year-on-year. Can we move to the next slide?

As Supam has mentioned, even in India multi-channel business, we have continued to see sequential improvement in revenue growth. For quarter 4 FY26, we grew by 11% in terms of our revenue.

For FY26 over FY25, we grew by 9%. However, as Supam has mentioned, that our gross margin has seen some further dip, largely in our manufacturing operations, which is because of rupee depreciation and increase in crude-linked raw material prices because of geopolitical situation.

If not for these volatilities, our gross margin in Q4 would have seen a similar drop, which was because of the competitive intensity in diapering as Q3, which we saw in Q3 year-on-year. Further, if I would say, we have recovered almost 80 basis points of this loss in our EBITDA for Q4 owing to our operating leverage benefits.

Now I'll pass it on to Abhinav for international updates.

Abhinav, you are on mute. Abhinav Sharma (Country Head of Middle East Business Operations, Brainbees Solutions Limited):

I'm sorry, I had to unmute myself. I forgot about that.

Good evening, everyone. Thanks for joining the call.

We'll go with the first few slides for our international business. For those of you who joined for the first time to this call, we'll just go with some information here.

Very favorable sort of demographic and market opportunity, lifestyle, defense in international market, and you can see the birth rates are slightly higher in the USA as compared to India. The spends as you can see are substantially higher in both the markets, USA as well as UAE versus India.

That's a large opportunity there. Obviously the China, market size for Grasta is significantly high, not as high as India, but significantly high for the international market.

That's the market opportunity we have in front of us, and we speak more about it as we move along. Can we go to the next slide, please?

UAE, we've been live since October of 2019, and in USA, we've been live since August of 2021. Both the markets we are offering our customers the flexibility to either choose the language of their choice in English or Arabic.

We have both the mediums here. Largely our offering is an online platform in both the markets, UAE and K.S.A.

Our UAE's competitor in comparison, second competitor, we are business is about four times his size. Next slide, please.

Now this is an important slide. This shows you the evolution of progression of gross margins for our international business segment versus in comparison to the India multi-channel, and the reason is because we as a business in the international segment are about five years old and if you see we have clocked the same gross margin as India clocked when it was eight years old.

We well are sat in terms of gross margins improving year on year, quarter on quarter, we see it in subsequent size as well. A key important point here, the playbook that is being used and refined also for the international business has been played out in India as well.

Some of the levers, not all, but some of the levers that I want to highlight here for gross margin expansion are increasing the home brand share of stock line. Within home brands also the fashion business share, fashion share to the business.

Also improving our gross margins in both home brands as well as third-party margins because third-party brands also are equally important, because it's a consumer facing business. Obviously, it is what the mom likes.

If they like our home brand, which they do, plus if they want to choose anything from the non-home brand or the third-party brand, we offer that as well, but ensuring that the margins make sense on the third-party side as well with the economic of scale that we see going forward. Also, obviously, as we grow, we will see as an early business, operational efficiencies kicking in.

Gross margins improvement levers, couple of them I just spoken about, and these are the same levers in play in India as well in the progress of business that India is, our business. Very comfortably stacked here in terms of the way forward, what we need to do to grow the business sustainably.

Next slide, please. Some of the key highlights for FY26.

We continued to miss promotional activities and hunting with promotional activities by horizontals that we spoke about and Supam spoke about in the first two slides. However, we continued on the path of sustainable growth as we have been over the last four quarters progressively.

We've seen a reduction in EBITDA losses by 53% year-on-year for the quarter FY26 and 25% for the full year 26. AEBITDA by 7% in this quarter Q4 FY26 versus same quarter last year, orders grew by 6% year-on-year for FY26 versus the same quarter last year.

Next slide, please. So 100 million dollars plus in revenue in FY26, and we should see this growing progressively as we move along.

The key highlights here, this quarter, we grew 90% over the same quarter last year, more importantly, 470 bps margins expansion on the back of 9% growth. For the full year, we had 240% margin expansion with a 10% growth.

While we are growing sustainably, we also ensure that our gross margin expands and that becomes on the right-hand side, where our EBITDA losses for the same quarter last year were lower by 33% on absolute terms and as a percent of revenue, it was 15% 9%. For the full year, we reduced our losses from 140 gross to 90 gross, a reduction of 35%, and our losses now stand at 10% versus 16% in FY25.

Next slide. Again, as we spoke in earlier on multiple quarterly calls, our primary focus has been to not just grow the business but grow it sustainably, not chasing top line at any cost, but growing top line and ensuring that it improves our losses substantially.

You can see the progression here from FY22 to FY25. There is where 18,000 rupees reduction in losses.

Again, in FY26, what is FY25 was 6.7% in form its reduction, which like mentioned the previous slide is standing was 16% last year. Anuj, over to you, please.

Anuj, you are on mute. We can't hear you.

Okay.

We can hear you now.

Now you can hear me? Okay.

All right. I'll just give you an update on GlobalBees.

First let me just quickly take you through how GlobalBees is structured. We have essentially four broad categories that we look at, which is home utilities, home appliances, fashion and lifestyle, and beauty personal care, health and personal care.

These are the four broad segments in which we operate. As over the last year, it's been a very important point for GlobalBees, where we've been rationalizing our portfolio of brands to focus on the ones that we can continue to drive growth as well as profitability.

We can move to the next slide. If I look at the overall performance for the year, and I look at specifically the four categories, we did a revenue of 1,871.6 crores, which was a 28% year-on-year growth and a 91.9 crore adjusted EBITDA post operating expenses, which translates to a 4.9% of revenue.

Now these four categories are the ones that we will continue to focus on in the long term. Rationalization of other brands are the ones that are witnessing lower revenue growth and have been incurring losses.

We're almost at the trail end of rationalization of these brands, and our endeavor is to complete this rationalization by this quarter end, so that we're able to then move on to a sustainable top-line growth and bottom-line growth as outlined in FY26. We can move to the next slide.

If I compare performance in terms of revenue and adjusted EBITDA, we look at revenue first. In the last quarter, we had a 15% growth quarter on quarter, this quarter to last FY25 quarter four, and on a full year basis, we grew by 20% on a consolidated basis.

The 20% is lower than the 27% of core brands purely because of the rationalization of brands, as I have mentioned earlier. All of this growth that I'm mentioning is organic, because the last acquisition that we made at GlobalBees was in September 2022.

In terms of adjusted EBITDA, in quarter four, FY26, we did an adjusted EBITDA post operating expenses of 26.5 crores, which is 5.8% of revenue, 9x increase from the quarter four FY25 adjusted EBITDA post operating expenses, which was at 0.7%. We had a significantly healthy growth in our EBITDA.

If I look at it on a full-year basis also from FY25, FY26, it moved from 1.4% to 3%, 56-odd crores of adjusted EBITDA post operating expenses, which is a 2.5x increase. We can move to the next slide.

Overall, as you will observe, there has been a continuous trend of improvement in our bottom line over the years, from FY23 where we were negative, to even in FY24 where we were EBITDA neutral. Now in FY26, we stand at a healthy 3% adjusted EBITDA post operating expenses.

This is also adjusted for ESOP cost. This 3% includes the rationalization of brands, but it's improving as we move along.

That's the update that I had on GlobalBees. We can move to the next slide.

Varun, will take over the other segment. Thank you.

Thanks, Anuj. This is our last segment, fourth segment, which is called as Others, representing the preschool business, continuously growing from 208 preschools, end of FY24, to more than double end of FY26.

In terms of number of students enrolled, it's almost 3x in two years. Next slide, please.

Healthy growth in revenue, 11% growth in revenue in FY26 over FY25, and around 220 bps improvement in EBITDA from 24% in FY25 to 27% in FY26. Now we talk about the consolidated performance.

While these numbers have been previously covered by Supam Abhinav and Vivek, India multi-channel business, it's a 9% growth in 26 over 25, 8.8% adjusted EBITDA for FY26. This was 9.5% in FY25.

This is largely because of, as Supam and Vivek mentioned, some pressure in gross margins, which is A, on account of heightened competition in our diapering category, which represents 15% of our business. The second one is basically a dip in Q4 because largely in our manufacturing business, because of rupee depreciation and the increase in the crude-linked raw material prices.

This dip, there is a lag in terms of recovery from the customers, lag of around one to two quarters. From Q2 onwards, the gross margin loss because of crude-linked raw material prices and rupee depreciation should be covered.

We will be recovering the lost margin. International business, Abhinav talked about, despite of a 10% y-o-y growth in FY26, we managed to reduce our losses by almost 50 crore rupees from a 140 crore rupees loss in FY25.

We reduce our losses to 90 crore rupees in FY26. From 16%, it has come down to 10%.

GlobalBees business continue to grow very well, while on a consolidated level it's a 20% growth. However, if we talked about a clean slate, that is the growth in the core category, that is 28%, and has delivered an EBITDA of 4.9%.

As Anuj mentioned, the rationalization of the other brands should be over by Q1 FY27. We should see a complete organic growth of the core business starting Q2, and also by EBITDA, which is 4.9% in FY26.

Others, which is pre-school business, 27% EBITDA and 11% growth. Next slide.

The results of those four business segments, it basically gives us a 12% growth in Q4 on a YoY basis and a similar growth in FY26 over FY25. We can see a gross margin dip.

Again, this is because of two reasons. One is the dip in the gross margin of India multi-channel business, which Supam Vivek explained, I also explained in the previous slide, and the second reason is a slight dip in the gross margin in the GlobalBees business.

However, we maintained or we increased our EBITDA in Q4 and for the full year in GlobalBees business. Consolidated adjusted EBITDA, despite of a dip in gross margin, from 37.4 we have come down to 36.2%.

We still managed to increase our adjusted EBITDA on a consolidated basis, both at a Q4 level and also at the full year level. Q4 adjusted EBITDA has increased by 18%, and the full year adjusted EBITDA has increased by 24%.

That's it. This ends our presentation.

Previous slide. Those are supplementary slides.

Just go back, yeah. Yeah.

We're happy to take questions.

Hi, Jinesh Modi this side. You have taken various initiatives to improve the delivery performance for your online business, like delivering through your own logistic network.

What percentage of orders are delivered through these networks? What is the logistic cost increase in the Q4, and what is the expected increase in FY27?

So

Jinesh, I think the percentage of orders that we were delivering by roughly around Q3 end were 28%. Now we have crossed 40% plus end of March 26, and we will continue to increase it.

Our goalpost was to reach close to 45 to 50% by middle of the year. We believe we are ahead of the curve, and we should be able to deliver it before the next quarter ends.

In terms of cost, there is a marginal front-loading of the cost that actually happens, both for RocketBees as well as for the Qwik, because it takes some certain time to reach to a little maturity within a city in terms of the number of shipments that we can do under RocketBees. Till then you have to front-load, but we will have some impact of 40 to 60 bps from a few quarters, but in a medium term, as the network matures, our costs will normalize to a regular sort of a cost structure that we had, and that excess will be nullified.

That's how I hope I've answered both your questions in terms of what percentage of shipment as well as on the cost front.

Okay. Yeah.

Hi, sir. Hello?

Yes, Vishal.

Sir, my question is how is the store business in MP doing? You have only added 10 COCO stores in FY26.

What is the plan for the store opening in financial year 27? So

In fact, we have mentioned in our previous calls as well that because of the macros, we wanted to maintain capital efficiency, and that's the reason we kind of paused opening of company-owned stores in FY26. Given the initiatives that we have taken to improve the offline growth, Q4 numbers are a testimony to the improvement in growth, the growth is best in last seven quarters.

We will double down on our approach to open company-owned stores in FY27, and hopefully with a mix of COCO as well as COCO stores, we should be opening roughly 100 stores in this year. Yeah.

Hello. Am I audible?

Yes, Tejas.

Yeah. Hi, Supam, hi.

Thanks for the opportunity. Just first question, the interventions that we have made on India multi-channel business, the areas or the pin codes that we are actually now fully deployed in terms of whatever interventions we had to make, what are the key operational and financial parameters that you are seeing, which gives us a lot of confidence that once we roll it out fully, it will actually kind of bring back the momentum that we were missing for the last one year.

Sure. Tejas, while I think Vivek can answer this question, but Vivek, you can add.

I'm going to maybe start. Look, Tejas, it's a fair question, and both for RocketBees initiatives as well as for the Qwik initiatives, we have felt that there is a clear superior customer experience that we are able to deliver, which is what we had originally planned with these initiatives.

It's a very tangible incremental outcome. With that, we are also experiencing incremental growth in those catchments for Qwik as well as in those cities where RocketBees has reached to a certain maturity in terms of the total number of shipments in that city.

With that, we believe as we increase area under the curve, both for RocketBees as well as for the Qwik, and as it improves, this will give us, with a lag effect, because it takes time to reach to a certain volume or to a point where we have certain volume in the city. As we reach there, we will have a benefit of incremental growth being accrued to our overall online business.

Vivek, you want to add anything?

Supam, as you rightly mentioned that we are seeing a lot of positive movement on the consumer experience matrices. From that window, very confident that as the network matures for RocketBees as well as it expands, we should see a good positive impact on our FY27 growth.

I think that's... And

Tejas, the key operating metrics that we see is basically reduction in promise delivery time, actual delivery time, on-time delivery, which is probably the best in the industry. It's more than 92%.

All these factors put together, as Supam mentioned, there could be a lag in terms of seeing a tangible growth in the online business. Yes, we have already started seeing good results in terms of service metrics, and we strongly believe that FY27 online growth should be much superior compared to the growth that we have given in FY26.

Sure. Gautam, this intervention that you spoke about on KPI, it will largely reflect in better AOV, frequency, or recruiting more users on the platform?

It will be both. It will be improving the retentions as well as acquiring more number of customers.

Perfect. Second, just if you can elaborate a bit, what exactly is the source of this gross margin pressure?

You touched upon a bit on certain categories, but is it more of a competitive pressure which is hurting us, or inflation, or a mix of everything playing out together?

So On the India multi-channel, there were two parts to it. We saw 140 bps that we saw in Q3 that we explained.

That has continued. It will take us a couple of quarters for the irrational discounts or irrational intensity to go away.

We had seen this pressure in 2016-2017 as well. Everything normalized, and lately a few more players in the quick commerce have joined sort of, and again there has been the same intensity has been carried forward in the larger horizontal commerce players as well.

We believe that it's probably a four to six quarters sort of a phenomena. It will go away.

That's on the 140 bps that we are talking about that we spoke in Q3 that has continued for this quarter. The remainder part of the gross margin loss

in India

multi-channel, Q4, in India multi-channel, it's very transitory, especially coming from our manufacturing, and which is crude-linked input cost as well as rupee depreciation, and as it gets passed to the customer, you will see it bumping back, fully recovered in Q2. It's just transitory in nature.

In past it has happened, but such a steep depreciation and such a steep increase in crude price has not happened in the past. At least we haven't seen it.

Since it will get recovered from the customer, from Q2 onwards, as Gautam mentioned, we will be back on track. This part of the loss will be recovered in our Q2 numbers.

And

Just to add, what will improve the gross margins going forward? A, the gross margin expansion levers, which is increasing home brand mix.

There is a separate slide in additional disclosures, which basically talks about the GMV mix of our home brands. Fashion mix increase, again there is a separate slide, which basically clearly shows the increase in the fashion mix.

Continuous negotiation of third-party vendors. These factors will continue to play on, which will increase the gross margin going forward.

The second factor, which Supam talked about, that the manufacturing business loss in gross margin will be recovered starting Q2. That will again add to the incremental gross margin.

Third one is the deep discounts, especially in the librarying category, which led to a 140 bps reduction in gross margin in Q3. That will also, we believe, that should be probably in the next one to six quarter.

That should also come back in the business. All these three factors will help us regain the gross margin in probably starting from Q2, probably in next four to five quarters.

Perfect. Just one follow-up by me.

This pressure on diapers from quick commerce in terms of margins, is it coming from largely the unlisted players, or are you seeing any behavioral change once you get listed and you start chasing profitability, or the behavior is across same in terms of losing money or being aggressive on this category?

No, it is not specific to any low cost, or it is across the board. It's more of a platform phenomenon than a brand phenomenon.

So

Tejas, to answer that question, we have seen it both in listed and unlisted platforms, and that has led to a further price competition from the horizontals, which are unlisted as well. It is across from Q-commerce and horizontal where there is a price competition, which is resulting into this loss as of now, which we, as Supam and Gautam mentioned, which seems to be quite irrational, and typically the cycle takes a few quarters to subside, and that's what we expect as well here.

Thanks. That's all from my side.

we can come back to Jayant.

Hi, I have a couple of questions. How is AI benefiting us?

I wanted to understand that.

Is that the only question? I thought there was...

Okay.

Another...

I think look, AI has sort of multifaceted ways of improving, both from a revenue optimization, gross margin optimization, as well as improvement in productivity, efficiencies. It has multiple facets of improvement that one would see from a usage of AI.

I can give examples, because otherwise it'll take a little longer for me to be able to explain every point across different facets. It is very fascinating to be able to come up with answers and able to get information processed, whether it is benefits that we can drive to save cost, for example, you can save your supply chain cost in terms of making a product live much faster than what you were otherwise taking.

That leads to an improvement in working capital, to improvement in how you will build URLs for your SEO, AEO, or GEO kind of models to be able to be more relevant, more effective, to improve conversions. There are n number of opportunities that we are utilizing within the company, across different facets of running a business, to not just use it only in typical sort of a call center savings or automated voice bot, chatbots, email bots, but across the board in different facets to be able to optimize our costs as well as efficiencies, productivities, as well as revenue optimization, and even to the extent of discount or maybe the gross margin optimization.

These are at various stages of evolution. Over a period of time, some of we have already got the benefit.

Some of the benefits will accrue over a period of time. Maybe we can take this question a little more offline if you have more interest, but that's a broad gist of it.

There is too much excitement in the entire organization, what we all can do with AI. So,

To sum up, we are working on cost efficiencies, we are working towards revenue expansion and margin expansion, as well as people efficiencies. Every single aspect, I think AI has already entered in the organization.

Cool. What percentage of boots or something we can expect as a benefit in the long run?

Is it? If you have any number?

It's too early to comment on that, but I think that this could be a meaningful outcome as we go along. It should definitely be a meaningful outcome.

We'll be able to speak more in the subsequent quarters because this initiative has just started a couple of months back. It's premature for us to talk about the overall improvement that it'll do, but we remain very focused on the benefits that it will accrue.

It's not small. It's going to be meaningful.

Therefore, we'll reserve our comment on that, but maybe in the next quarterly update, we can probably share that number as well.

One more question I had. We are trading at a pretty low valuation compared to our revenues.

Is there any risk of someone trying to acquire us? Is there any chance of we are doing buybacks or something?

Look, we haven't discussed this. I think we are focused right now on what we can execute to be able to deliver a far superior growth in FY27 with expansion in our adjusted EBITDA.

That's what we are focused at. Rest of the stuff that you talked about, we haven't experienced that in the past, maybe.

We haven't really thought through it yet as well. Yes, we have sufficient cash on the company, but we haven't discussed any of these buybacks and stuff like that so far in our internal discussions or even board discussions.

Thank you.

Hi, sir. Just wanted to understand this offline channel.

I think this quarter the growth is higher than the overall India multi-channel growth, right? Just two questions from this.

One is what really has changed or what initiatives have you taken to revive the growth in the offline channel? Secondly, if that channel has really grown faster than 11%, which is your overall growth, that means the online channel has done a single-digit growth.

What is the reason why the online channel growth is so low, given that the overall category itself might be growing at 10% and our share within that is increasing? Just wanted to understand the reason for this low growth.

Sure. Percy, Supam talked about the initiative that we have taken in the offline business, and we are talking about this initiative since our last presentation.

That's basically changing the product assortment from a width to a depth strategy. That has really played out very well for our offline business, especially the cocoa business, and that has resulted in a significantly higher growth in our offline business, which is around 15% in Q4 on a year-on-year basis.

In terms of online growth, Percy, it's not single-digit. Online GMV growth is roughly 10.5% in Q4, and it's around the same range for all the four quarters between hovering around 11 to 12%.

However, even the initiatives that we have taken around faster deliveries, both in terms of delivery through our RocketBees network and FirstCry Qwik, which we believe should be delivering at least 10% of our online orders by end of this year, we believe we should be able to deliver a much superior growth even for the online business in FY27 compared to the FY26 online growth. Both the channels, online and offline, Supam talked about that the growth that we have delivered in Q4 should continue even for the rest of the part of FY27, and online should also deliver a much better growth, while the cost of logistics is front-loaded.

The tangible results comes with a lag, and hopefully in coming quarters, we should see a much superior growth in online business also.

Percy, our mix has changed for both offline. Online GMV mix hasn't changed what you see in FY26 over FY25.

There is no material change in that. Believe with the lag effect, I think you should see a growth bumping back in online as well.

Compounding effect of that, you should be able to see. That's why we are very confident FY27 India multi-channel GMV growth will be much superior than the FY26.

Understood. Next question I had, again India multi-channel business only, given that there are the margin pressures, which you said can continue for a few quarters more, on a full-year to full-year basis, FY27 versus FY26, do you think that the EBITDA, rupees crore EBITDA, can have a double-digit growth?

Yes. If you look at it, you're talking about India multi-channel only, right?

Yes.

Yes, we will have it, Percy, sure. Effectively, we are saying, I would say the drop that we have seen because of manufacturing should be recovered fully by Q2.

We will have three quarters of that benefit. I don't think that effect will be there.

Yes, the diapering effect may continue for the full year. Margin expansion from the 85% of our category should continue as well.

The overall growth that we are anticipating will be superior, and also you'll get operating leverage also coming out. We still believe that we should be able to do a much superior sort of a growth to answer your question, both in terms of top line as well as bottom line.

Right. One last question, if I can squeeze in.

Just wanted to sort of understand on a benchmark basis what you are doing on delivery versus how the competition is doing the delivery. With RocketBees, own delivery, how would that compare to the structure of players like, let's say, Amazon, Nykaa, Flipkart, etc.?

Do they also do their own delivery or are they completely outsourced the same way that you were, let's say, a year ago? Just wanted to understand, within the industry practice, where do you fall on the spectrum?

So,

Percy, I'll just answer in two points. One, I think understand the BBN Kids business is fairly complex from a supply chain perspective, both from a warehousing perspective as well as from a first mile, mid mile, last mile delivery standpoint.

Because we are dealing with a category where you have almost 10-gram diaper pin to a 30-kilogram toy car that has to be delivered, and it's fairly complex to have that size of spectrum in terms of managing our supply chain from availability to, and very fragile products as well on top. Given that, nothing that what we do, how we do, can be really compared with some third-party, either shipping companies or third-party commerce players, whether it is the names that you have mentioned.

I won't really directly compare, but what we have built in RocketBees is a fairly asset-light model, and the technology is completely in-house. The entire technology stack that we have built is being used by dedicated partners that we have, regional, local, and we manage the first mile and the mid mile, although on a totally asset-light, capex-light basis, and the last mile partners are actually delivering and giving us a superior way of delivering and giving the better customer experience than otherwise that we were being managed through third-party in our prior context.

I hope I've been able to answer. The landscape fully can't be compared, but at the same time it is totally asset-light, utilizing first mile, mid mile on our own, again asset-light, but fully dedicated partners who are only delivering our shipment, not mixed shipments of third-party and not other brands and us.

That's not the case. It's only dedicated first-mile deliveries that our last-mile partners make.

So

this last-mile partner, would it be dedicated for all the other players also? Or is it something unique to our business model?

Well,

different players have different sort of models Percy. I won't be able to say that.

In a few cities people may have different models. In a few cities they may have a third-party model, like if you utilize a third-party player, they may aggregate shipments of different companies or different brands or different platforms.

There are different models for different companies. There is no one model that every company follows.

Understood. Are we planning at some point of time to go 100% RocketBees, or we will sort of stabilize at certain percentage and keep doing business of the certain percentage as per the old methodology?

We will continue to improve the coverage of RocketBees. It will be very difficult to go to 100%.

Got it. That's all from me.

Thank you and all the best.

Thanks, Percy. Thank you, Percy.

Hi, am I audible?

Hi, sir. Thanks for taking my question.

Sir, just a couple of questions on India multi-channel. I know the basic thought process behind RocketBees and Qwik was to, let's say, increase both customer satisfaction and from an ordering perspective, get back, let's say, some of the pains which customers had of delayed delivery.

Just from your initial takeaways over the past two quarters, if you could share on places where you've implemented both Qwik and RocketBees, are you seeing higher transaction of orders versus places where RocketBees is not there? Is that giving you confidence heading into FY27?

The second question is on international business. Has there been some part of the international business also impacted by the Middle East, which has led to the slow single-digit revenue growth?

I know on the cost side you have been working on getting the margins down to at least a break-even. Just has that also impacted some movement towards break-even on the international business?

Jayant, I will let Abhinav take the second question, but the first question answer is, the same question was asked by Tejas. Answer is that we are seeing incremental growth in the cities as well as in the catchment where we are serving both RocketBees and the Qwik.

Therefore we'll continue. We have clarity of what we are executing.

We are watchful of service metrics that Gautam also spoke about. We'll continue to improve on that and bring more area under the curve and build that incremental growth as we go along.

That's an answer to your first question. Second question I'll let Abhinav speak on the Middle East.

Abhinav Sharma (Country Head of Middle East Business Operations, Brainbees Solutions Limited):

Hi, Jayant. Your second question is related to the current evolving situation and how it impacts the business.

Is that right?

Right. So Abhinav Sharma (Country Head of Middle East Business Operations, Brainbees Solutions Limited):

Jayant, the situation we all know what is happening. However, there has been a little bit of a moderation in consumer sentiment.

I don't have to say anything else about that. Yes, there has been and there is some import complexities also is happening as we speak.

However, I think fundamentally, for our business and our goalposts as we've shown in the last so many quarters now, has been, our sort of a path is towards a stable growth. We are continuously focusing on our top line operational and gross margin expansion.

Our home brands are one of the most important levers to improve our business. This situation is beyond anyone's control, to speak.

This is also an opportunity, as the way I look at it or the way we look at it in generally, when we can optimize further on our processes within our discounting strategies, our marketing costs, and reaching out to the right consumer who will potentially give us a longer sort of an LTV that we desire. While we do all of this, also improve our home brand mix in the top line that we can get.

This is a unique opportunity for us. Our focus is the same, growing and not chasing the top line at the expense of, as we reduce costs to a very high on our expense, while we hope that the situation ends sooner than later, but I think there's a lot of learning for us in terms of how we optimize and how we continue on our path to sustainable growth.

Sure. Abhinav Sharma (Country Head of Middle East Business Operations, Brainbees Solutions Limited):

Just to conclude, we will continue to reduce our losses. What we did in FY26, we will continue to do the same thing in FY27 also.

Sure, fair enough. If I just may squeeze in one last question, just on the relevance of the 6 to 12 years age, which you've extended your category.

If you could just give us in terms of how that is doing well in the past couple of quarters, I'm just trying to understand from a retention of customer point of view. How is that shaping up, if you could just give some thoughts on that?

So

Jayant, I'll probably take up that question. We are seeing a positive traction and we continue to see a positive traction in 6 to 12.

That remains the fastest-growing part of our business when it comes to age group of children. As we continue and basis that we continue to build our assortment, which is more conducive.

Overall it is good news on that front. At the same time, there is a slide in the supplementary slide, which shows our long-term cohorts being very strong for a consumer who has been acquired 10 years back continues to transact with us.

There is a good segment of that consumer. All of that indicates towards a good positive future on the 6 to 12 segment for us.

Sure. Thanks, and all the best.

No, thank you everyone. Thank you for your time and

so much.

Really appreciate it. Thank you.

Thank you.