Good afternoon, everyone, and thank you for joining us on Vaibhav Global Limited earnings conference call for the fourth quarter and full year ended 31st March 2026. Today, we have with us Mr.

Sunil Agrawal, Managing Director, Mr. Nitin Panwad, Group CFO, and Mr.

Vivek Jain, Head of Investor Relations. We will begin the call with the opening remarks by Mr.

Sunil Agrawal on the business operations, key initiatives, and broad outlook, followed by a discussion on the financial performance by Mr. Nitin Panwad.

After which, the management will open the forum for the Q&A session. Before we get started, I would like to point out that some statements made or discussed on today's call may be forward-looking in nature and must be viewed in conjunction with the risks and uncertainties that we face.

A detailed statement and explanation of these risks is included in the earnings presentation, which has been uploaded and shared with you all earlier. The company does not undertake to update these forward-looking statements publicly.

I would now like to invite Mr. Sunil Agrawal to make his opening remarks.

Over to you, sir.

Thank you, Nishita. Good afternoon, everyone, and thank you for joining VGL's Q4 & FY26 earnings call.

I trust you have reviewed the results and the investor presentation. FY26 has been a year where the investments of the last few years have started reflecting in our numbers.

Profit before tax grew 41% year-on-year. EBITDA margin improved to 10.8%.

Our in-house brand contribution has crossed 50% of B2C sales, nearly a year ahead of our earlier target. Germany has turned EBITDA positive for the full year.

We generated our highest-ever free cash flow of ₹272 crores in FY26. These are meaningful outcomes, and they validate the direction we are moving in.

Let me briefly cover the macro backdrop. The year has had its share of noise.

Precious metal prices spiked, the US went through tariff-related uncertainty, and discretionary spending was cautious across our core markets. Despite all of this, we navigated the year well.

We also see the recent macro developments as supportive for VGL. The India-UK and India-EU free trade agreements, the ongoing India-US trade discussions, and the easing of US-China tariff tensions, all create a favorable environment for a vertically integrated retailers like us.

Coming to the numbers, for Q4 FY26, consolidated revenue stood at ₹935 crores, a growth of 10% year-on-year. EBITDA was ₹96 crores with an EBITDA margin of 10.3%.

One of the most encouraging structural shifts during the year was a rising share of our in-house brands, which crossed 50% of B2C sales. This was achieved almost a year ahead of the plan.

Higher in-house brand contribution strengthens customer engagement, improves sourcing efficiencies, supports pricing discipline, and lifts gross margins. We expect this to remain a key driver of margin improvement going forward.

Our digital business also continued to scale steadily. Digital contribution stood at around 44% of B2C sales for the year, supported by better quality customer acquisition, improving retention, and stronger AI-led targeting and personalization.

Our OTT, livestream, and social commerce initiatives are also gaining traction. We remain on track to reach 50% digital mix towards the end of FY27.

Lab-grown diamonds are another important new lever. LGD now contributes 11% of retail revenue at an average selling price of around US$250.

This is lifting realizations, supporting gross margins, and meeting a clear shift in consumer preferences. Moving to our geographies, in Q4 FY26, US and Germany grew by 1% and 7% respectively, and UK degrew by 1% in local currency terms, resulting in total growth of 3% YoY in US dollar terms.

The most important milestone in our international footprint this year has been Germany achieving EBITDA break-even. This is a meaningful, faster turnaround than we experienced in the US and UK earlier when we launched originally.

Germany is now well-placed to contribute to group profitability from FY27 onwards. Our growth continues to be guided by our 4R priorities, that is reach, new customer registration, retention, and repeat purchases.

During Q4, our TV networks reached around 127 million households globally. Our unique customer base stood at 6.8 lakh customers.

Retention remained stable at around 38%, and customers purchase an average of 23 pieces from us on a trailing 12-month basis. Technology and AI adoption remain central to our long-term strategy.

During the year, we expanded the use of AI across customer engagement, marketing optimization, analytics, content creation, merchandising, and operational workflows. These initiatives are already helping improve productivity, scalability, customer experience, and operating leverage across the organization.

Sustainability and community remains at the core of our business. Our ICRA ESG rating was upgraded to 74 during the year, reflecting continued progress on environmental, social, and governance practices.

Under our flagship Your Purchase Feeds program, we have now served over 112 million meals to school-going children, currently providing around 56,000 meals every school day. We remain committed to our long-term goal of 1 million meals per school day by FY40.

On clean energy, we continue to meet 100% of our manufacturing power needs through solar. Two of our US sites and one site each in UK and Germany also operate fully on renewable energy.

We have also committed to the Science Based Targets initiatives, aligning our carbon reduction pathways to 1.5°C goal under the Paris Agreement. I'm pleased to share that all our group entities across India, US, UK, Germany, and China are now Great Place to Work certified, reflecting our human resources engagement.

On capital allocation, the Board has recommended a final dividend of ₹1.5 per equity share, including the interim dividends paid earlier, that leads to total ₹6 payout for the year. We remain committed to a balanced approach, rewarding shareholders consistently while keeping flexibility to invest in growth.

Looking ahead to FY27, we remain confident in our growth trajectory and currently expect revenue growth of 9% to 11% along with an improvement in EBITDA margin of 50 to 100 basis points. Backed by continued investments in digital capabilities, technology adoption, customer engagement, and operational efficiencies, we are confident to drive long-term value creation.

With this, I would like to hand over the call to Nitin to discuss the financial performance in greater details. Over to you, Nitin.

Thank you, Sunil. Good afternoon, everyone.

Let me now walk you through the key financial highlights for the fourth quarter and full year ended 31st March 2026. For Q4 FY26, consolidated revenue stood at ₹935 crores, a growth of 10% year-over-year.

EBITDA for the quarter was ₹96.3 crores, translating into EBITDA margin of 10%. Profit before tax came in at ₹64 crores, a strong 41% year-over-year growth, one of the sharpest quarterly profit improvement we have delivered in recent years.

For the full year FY26, consolidated revenue was ₹3,691 crores, with EBITDA margin expanding by 140 basis point to 10.8%. Gross margin remained healthy through the year, supported by our vertical integrated sourcing model, higher in-house brand contribution, traction in lab-grown diamonds, and disciplined inventory management.

Despite elevated precious metal pricing, and geopolitical tariff tension, we maintained pricing discipline and protected profitability. Lifestyle products now contribute around 35% of total sales, and we continue to target medium-term share of 50%.

Lab-grown diamonds contribute close to 11% of retail revenue. As Sunil mentioned, our in-house brands have crossed 50% of our B2C sales, a year ahead of our earlier target.

The business continued to be strongly cash generative. We delivered operating cash flow of ₹305 crores and free cash flow of ₹272 crores, which is our highest-ever free cash flow generation in a year.

Net cash position stood at ₹296 crores as of 31st March 2026. ROCE improved to 24% and ROE to 15%, reflecting much better profitability and disciplined capital allocation.

We also saw operating leverage during the year. Employee cost efficiencies improved further through process optimization, automation, and increased use of AI tools across functions.

Retail cost productivity also improved with sharper product portfolio and better negotiation outcome. Our digital marketing spend continued to stay focused on higher quality of customers with stronger lifetime value, which is helping strengthening our long-term customer economics.

Now let me cover geography-wise performance. In local currency terms, Q4 revenue growth was 1% in US, UK degrew by 1%, and 7% growth in Germany, resulting in total growth of 3% year-over-year in US dollar terms.

In US, the retail landscape continue to shift rapidly towards digital-first customer discovery, with paid social media emerging as one of the most important channel for customer acquisition and engagement. Customers are increasingly discovering, evaluating, and purchasing through platforms like Meta, AppLovin, TikTok, and Google.

We have been steadily scaling our presence and investment across these platforms. Our paid social strategy is driven by performance marketing, AI-led targeting, creator and influencer partnership, and platform-specific content, all aimed at improving customer acquisition efficiencies and lifetime value.

This aligns very well with VGL's omnichannel model, which blends live TV, digital, and social commerce. Despite higher precious metal prices and softer discretionary spending sentiment during the quarter, we delivered growth in US, supported by improving digital contribution, healthy traction in our proprietary brands, stronger customer engagement, and better marketing ROI driven by AI-led optimization.

Importantly, the in-house jewelry casting line we operationalized in US during the year continue to help us to mitigate tariff impact on our shipments and product gross margins. In the UK, headline revenue was flat during the quarter on the back of weaker consumer sentiments, the impact of elevated metal prices on discretionary purchases.

However, underlying performance improved meaningfully, especially Ideal World continued to be strong momentum with a healthy double-digit growth of 15%, while TJC declined by 7%. Overall, UK EBITDA improved substantially by 220 basis points year-over-year, supported by strong gross margin, disciplined cost management, and an improving product mix.

In Germany, we delivered growth of 7% year-over-year, supported by continued strength in our live TV commerce and improving digital adoption. The Germany business achieved EBITDA break-even for FY26, which is a notable milestone for us.

It is expected to contribute positively to group profitability from FY27 onwards. Mindful Souls, our digital-first acquisition, also continued to its steady performance with strong gross margin and delivered tangible cross-learning benefit across the group.

On dividend, the Board has recommended a final dividend of ₹1.5 per share, subject to shareholders' approval. Including the interim dividend already paid, our total FY26 payout works out to around 37% of our free cash flow, reflecting our continued focus on consistent shareholder returns.

Thank you. We can now open the floor for Q&A.

Yeah. Thanks for the opportunity.

I have a question.

Yeah. Sure.

I have a question. Regarding the margins, in FY22, we did roughly about on a ₹2,000 crore revenue base, a 15% or 13% to 15% margin.

Currently, going forward for FY27, we are doing a roughly about ₹4,000 crores of revenue and still we are inching up at 11% EBITDA margin. I just wanted to understand what it takes to inch up the margins higher?

That is my first question.

Thanks, Aditya, for the question. Margin in FY22, we have launched Germany operations, which initially led the lower margins for the initial period.

Now past financial year, we made the Germany business break-even, and that now will start contributing in our similar kind of margin ratio over the years what we have seen in US and UK, will improve our margin lines. Apart from that, our initial investments as we are expanding in our digital footprints in platforms like Meta or TikTok or the whole paid media channels, it's require investment in these kind of platforms, resulting lower margin compared to FY21.

All of these results, if you see the last 3 years, our margin is steadily improving from 7% to 11% from FY23 to '26 now. We confident that our margin is continuously improving in upcoming years, as we have guided 50 to 100 basis point year-over improvement next year we have given a guidance.

Okay. These investments, we have to continue for the growth.

It will happen slowly, but even though our base is becoming larger, but it won't be that big. Is it right?

Yeah. We expect that margin will continue to improve.

Operating leverage will continue to come in the business with especially the technology development and the AI initiatives what we have, we see the operating efficiency across all the platforms. We expect that the leverage predominantly will come from HR and SG&A and shipping kind of cross platforms.

It will continue to improve and for the foreseeable future, we don't see that we should not achieve the peak margin of 15% we have achieved. In terms of precise guidance, it is not right time to say, but our margin will continue to improve and it can be achievable to our peak level we have seen 15% in earlier years.

In coming 1 or 2 years, basically?

Possible? It's a gradual improvement.

As we have seen the past 3 years' improvement you are seeing it, it will be a gradual improvement.

Okay. Next, my question is a little medium term.

Now since we have the presence in Germany and it is being stabilized, I know you earlier talked about Japan or any other geographies, but I wanted to specifically ask why management is reluctant to start the business in India when there is an aspiring India who is ready to contribute or ready to pay up, and still why aren't we focusing on India? When will be the time that we'll be focusing on India and create an optionality for the company?

Let me take that. This is Sunil.

Thanks, Aditya, for the question. India, the television shopping never took off in India.

For us to get into India, it'll be only digital entry. Now for our own business in Western world, all three countries, the digital is nearing maturity.

Once we feel comfortable with our full maturity in digital, we will look at India as a potential market for us.

Okay. That makes sense.

Also, I have another suggestion for the management. I know we are paying a good amount of dividend, but our stock price is down really from the peak from 1,000 to 230-odd.

We would request the management to go for a buyback so that it helps in the EPS boosting. That will create more shareholder value rather than dividends.

Please have that check.

Thank you, Aditya. Thanks for the suggestion.

We'll keep that in mind.

Hello. Am I audible?

Yes, Pradeep.

Just moment ago, you have already told that our in-house brand already achieved 50% of total revenue. In the investor presentation, it is already written that our in-house brand mostly contributing to gems and jewelry products of 80% to 85%.

You also already said that in mid terms, we will achieve the lifestyle product 50% of total revenue. How you can say that?

Both two statements are contradictory. Can you explain?

Thanks, Pradeep. Yes, let me explain that.

Our total in-house brands is 50% of our total B2C business. Now if we do a sales bifurcation of in-house brands, that is 85% of in-house brands is through jewelry and 15% of in-house brands through our lifestyle products.

The other ratio that we are guiding for the business is whole together that our total sales of business, 35% of total sales of business coming through lifestyle product. Both are the different things.

No,

I am telling you you told that 50% in midterm, lifestyle product will increase to 50%. Already you told that the jewelry product in in-house brand, jewelry product is 80% to 85%.

Then how can you said that? In in-house brand, jewelry product is majority product, but you are telling that lifestyle product will increase.

Mhm. In percentage term.

Lifestyle product will increase in percentage terms. Our medium-term target is to 50%.

It is combining in-house and external brand and our umbrella brand, both. The number we have reported in in-house brands is only the 85% to 15% ratio of our 50% of total branded ratio.

If we have more confusion, that we can have a separately email chat, and then we will explain you better.

Okay. Then I will definitely mail you.

Another question is, can you comment on that tax for next year, means FY27?

What do you mean, taxes? Tax.

Taxes and all. You have already told in the FY26 that it will remain in the line of 20% to 22%.

In case of FY27, can you comment on that?

Got it. Our ETR will be steady around 22% for the upcoming years.

Okay. The next question is that in TV broadcasting expense, can you comment on that?

It will increase in percentage term or remain in percentage term, or it will increase in absolute term but decrease in percentage term in terms of revenue?

Yeah. The line we continuously investing to expand our digital share, we expect that this will continue to be around in 20-odd percentage that line.

Okay. Thank you.

Nothing else.

Thank you, Pradeep.

Yeah. Hi.

Thank you for the opportunity. Sir, I just wanted to understand, we see volumes have declined across the board in both TV and digital by about 9% to 10% YoY, which seems quite significant.

How should we see this? Is this reflective of a broader macro and demand trend or are we seeing increased competition?

Sure. Our portfolio is pretty wide and we offer every day and many new product of 50 to 100 every time based on customer need or market trend, how's going on.

As a recent period, lab-grown demand is pretty high. Lab-grown is around $200 price point.

That to fulfill that demand, our average ticket size is increased, volume is impacted. Also increased metal prices also driving higher price point customers.

We actually look into it more in terms of our quality of customer acquisition and total sale of each platform is a true performance of our overall business. Declining volume doesn't mean that the customer is less buying, is the product portfolio is shifting where we see more quality of customers and more lifetime value.

Okay. Understood.

You're not seeing any sort of slow down in demand at this point, especially given the inflationary environment that we are living in right now?

Yes. Sunil, would you like to comment on this?

Yeah. Sahil, we are very agile in assessing the customer environment, the macro environment, and customer demand.

Whatever the current environment, whether recessionary or positive, we will adapt and bring the products suitable for that particular time. Volume may not be the right barometer for you to look at it, the number of customers, repeat purchase, the retention rate, and the reach, the 4R are the best way to look at our business and the overall revenue and profitability.

Understood. Sir, on the own brand as a percentage of revenue has reached about 49% and 85% is of that would be jewelry, I think it would be about 64% to 65% of the jewelry revenue is now coming from own brands.

Do you see the share of jewelry revenue from own brands increasing further? How do you see it in the next 3 to 5 years?

You mentioned that it would be margin accretive, would it be margin accretive on an EBITDA level given there could be higher advertising spends in the own brand segment?

Having higher own brand ratio is margin accretive. As we increase the ratio across jewelry and LSP product, the EBITDA margin will increase.

We don't have precise calculation for that because it is still very dynamic, but it helps in margin accretion because our customer with our own brand has better repeat purchase and better retention, and we can give better value figure with our own brand than the third-party brands. Understood.

On the share increasing further, do you see it increasing further?

Yes, it'll continue to increase. I do not have exact guidance on that because we constantly push it, but we are also cognizant of customer pull.

We'll continue to increase it. At what ratio we will increase in coming years, I don't have guidance on that yet, but it'll definitely continue to increase in foreseeable future.

Sir. Can you just give a little more color on this sharp increase in the ROU, what has led to this increase?

Yes, let me take this. ROE is primarily driven in our growth in our PAT.

Our company's PAT is grew sharply during the quarter and year-over-year both. That is leading in our ROE number.

If we normalize the tax credit that we have got in this year, we still having an improvement in our ROE to 15%.

Sorry. I was asking about ROU, the right of use assets.

Oh yeah, okay. Now got it.

Got it, sir. I understand that.

We have signed a lease in UK in February. That resulting a higher ROU, but the existing building that we have, we will vacate and move in a new buildings during this financial year.

ROU increases mainly related to the new lease we have signed for the UK premises. Also,

would that result in a significantly higher depreciation cost going ahead?

Depreciation will be similar in line that for this financial year compared to the next financial year. We have a resulted savings in terms of as we are consolidating our four buildings operation in one building, operational efficiencies, faster execution, deliveries, all around we will get the benefit in our operational cost side.

All right, understood. Great.

Thank you so much.

Thank you, sir.

Thank you, Sahil.

Hello, can you hear me?

Yes. Yes, Shreyans.

Hi. Congratulations on a good set.

Sir, my first question is over the last 3 years, our mix has consistently improved from, say, TV to digital. I'm just looking at that percentages from 38% to 41-odd percent right now, digital, right?

The other thing that you also mentioned is that we're having a lot of sales from lab-grown diamonds, which is about 11% of your sales right now, and also gold has to an extent played a big role in this growth, right? When I look at your gross margins over the last 3 years, it hasn't improved that much.

We were also made to understand that as your business mix moves more towards the digital side, your gross margins tend to be better on that side. Why aren't we seeing a commensurate improvement on the gross margins, or is it that the TV business that we're ending up doing is at a far lower gross margins that we used to do historically?

Can you just help us understand this piece, sir? Hello?

Thanks,

Shreyans. Hi.

Gross margin side, what I see actually it is an improving trend, but the main reason I see is only the gross margin as we have a B2B sales share is increased. Though the B2B sales EBITDA margin is very close to our channels EBITDA margin, but B2B gross margin is much lower as the B2B doesn't have a fixed cost of digital or content broadcasting.

That's much. That is why you are seeing in the overall console result that it is a flattish over the years, but in the current quarter, we have seen around 180 basis point improvement in gross margin, and the full financial year is also 40 basis point improvement in gross margin.

As digital share is expanding now further and which might be in next year a significant half of the business size from the digital, then gross margin will further expand in future.

Sir, B2B is hardly, I think, ₹200-odd crores out of ₹3,700 crores. Also, the volumes have dropped off from what we used to do historically.

That is why the question that we're not able to see the kind of gross margin improvement that we were earlier looking at.

I see as the gross margin 1% improvement from FY21 FY21 to FY26 now.

I'm saying the last 3 years, from 64.6%, we are at 65.5%. In last 3 years, your digital has improved by 3%.

Lab-grown has become 11% of your sales, where ideally gross margins would have been higher. Volumes have sort of dropped off, your ASPs have gone up.

Just these three, four things when I look at these things, and then try to sort of come to the gross margin number, I feel are we doing the traditional TV business at a lower gross margin than what we used to do historically?

Yeah. Margins-wise, it is flat.

Time to time, we do a inventory clearance. Overall, broadly we look into it that year-over-year are we getting an improvement in our overall margin or not.

That we are seeing in past 3 years. Though it is not maybe a significant amount of percentage higher, but still 100 basis point higher in past 2, 3 years.

Now we are seeing more traction on the higher gross margin side in our paid media sales channel. That share is increasing in a recent period.

That will drive more higher margin in coming years.

Let me add to that, Shreyans. Last financial year has been the tariff addition to the business.

The cost of tariff was there. Although in jewelry, we were able to start casting in US and bringing to India and then making, we saved tariff on some portion of the jewelry.

Overall, the tariff intensity was substantial, and the metal price spike was there. In spite of that, we were able to expand the margin during the year.

Digital has helped to some extent, but it was more of internal discipline of improving margin that has seen the growth in margin and therefore the profitability and ROC and ROI. Given the circumstances, I believe that we've done pretty well with our margin profile.

Got it. My second question is obviously employee costs as a percentage of sales have improved by about 200-odd bps the last 3 years, and now when we're seeing 50 to 100 bps of margin improvement going forward and Mr.

Panwad also mentioned that some of it would come through from employee costs. Just trying to understand, going forward for the next 2 years, which significant line item should we see improvement coming from?

That's one piece. Second is, what is the kind of top-line growth we should ideally look at?

Because I'm just looking at the constant currency full-year numbers for US and UK. Obviously, we understand the macro, but UK is flat and US is 3%.

Could you help us understand what are you looking at for the next 2 years in terms of constant currency growth in two, three geographies,

sir? For constant currency, there's still a lot of noise of the currency fluctuation and the tariff uncertainty.

We are just giving one guidance in INR for mid term of around 10% to 12%. For next year, we are giving guidance of 9% to 11% of overall revenue growth.

Now business as we go more towards digital where we have more conviction of growth, then we can give local currency guidance going forward. At this time, because of the macro and business transition, we are not giving that constant currency guidance.

Got it. The margin improvements, where will that come from, 50 to 100

bps? Because

we've already improved employee costs by 200-odd bps.

First it'll come from gross margin improvement, then employee cost improvement. Shipping may have some leverage, but of the Asian crisis, the war has whatever gross we had last year or the margin leverage we had last in shipping that won't be available for this financial year.

As the business goes steady state, then there may be a room in shipping as well. SG&A, I don't see leverage because we will continue to invest into whatever saving we do on TV, we'll continue to invest into digital.

The content broadcasting will stay at around 20% what Nitin mentioned earlier. Leverage, to sum it up, leverage will come from margin improvement and HR costs.

Okay. All right.

Just last question. When I look at your other expenses ex of CNB, that has increased by about 16-odd percent in this quarter, right?

What has led to this 16% growth? The second thing is, we've taken a write-off of about ₹25-odd crores in the Mindful Souls piece, right?

Just trying to understand what has happened in that piece, because I think it's just 1, 1 and a 1/2-year-old business and are we too early to take that write-off or you think fundamentally something has changed in that business?

Hi, Shreyans. I will take this question.

The other line which is increased is mainly related to our traveling and the different office expenses that we have incurred initially to set up the warehouse in UK, and also some of the technology expenses that we have driven in AI side that we have done, resulting a other expenses are slightly higher compared to last year. That we see that it is a temporary in nature.

The other point about the Mindful Souls, Mindful Souls current business, initially we structured based on the higher growth and forecasted based on the double-digit growth basis the initial impairment testing that we have done it. Though conservatively, we have taken this year that however that number of growth percentage not coming, but this business is still good profitable business for us and there's a cross-learning is pretty high that we are having the US, UK, and Germany, all three business are learning from Mindful Souls.

Considering that we perceive that that business is very fruitful for us. Now the recent investments that we are seeing and changing our digital strategy in Mindful Souls, focusing more on the one-off single items, we are seeing that this quarter started seeing the positive number from Mindful Souls.

The write-off is mainly related to the conservative impairment testing that we have done it. Initially we forecasted that business will be recover all the invested money within 5 years.

Now it is increased to 7 years. The potential it may be reverse in upcoming years if the business perform well, but for now, because of the initial year, we haven't converted well for Mindful Souls, that is why the write-off is coming of ₹25 crores.

Sir. Thanks and all the best.

I'll get back in the queue.

Thank you, Shreyans.

Yeah. Hello.

Am I audible?

Yes, sir.

Yeah. Thank you for the opportunity.

Considering the current macro environment in US and UK, particularly elevated gas prices, inflationary pressure, could you give us qualitative color on the current trends that you are observing in April and May so far?

Nitin? I'll take that.

We are seeing better digital traction in both the geographies, but the television audience is still a bit stressed owing to the inflation. The gas price is high and interest rates are getting higher.

We are comfortable with our guidance that we gave on 9% to 11% growth year-over-year in overall for the group. Looking at the Germany also, the Germany is seeing better traction this current quarter than it did last quarter.

All in all, for the group, we are comfortable to see the growth in revenue as well as profitability in current quarter and for this financial year.

Okay. Thank you.

Thank you for the opportunity. Sunil ji, I think one of the concerns is that US market particularly has been growing at low single digit consistently for now 3 consecutive years.

We've been making a lot of investments on the digital side, we've been trying a lot of things. How do we get comfort that this will grow higher going ahead?

What is it that you're seeing? Is there something that you're doing that gives you comfort on this going ahead that it'll grow higher?

Yeah. Pulkit, good observation.

Over the course of last 31 years we are public, we have transformed our business multiple times. From B2B to B2C, brick and mortar to TV, to jewelry to lifestyle, and to now digital.

Last 3 years has been our transformation journey from purely TV-dependent to TV slash e-com and more and more towards e-com while giving improved EBITDA, improved margin, and amidst German initial build-up negative margins. Your question of US, given that our investment into digital and my conviction of us being on the right track gives me confidence that in mid to long run, US and UK, both geographies will get double-digit growth for us.

Because we put those investments in place and the teams in place.

You're talking about double-digit constant currency growth you're expecting for both the markets eventually?

Yes, in mid to long run, yes.

Any initiatives you want to touch upon, AI or otherwise, that gives confidence that you're doing something new which is kind of giving you that confidence of visibility?

Number one is AI is now completely integrated into our digital efforts. From scanning the competitor environment, all Meta ad library or other data, for what is working, what angles are working.

We scan that, and then we create the creatives for Meta or for AppLovin based on that intelligence through AI. Then we create landing pages for those customers clicking on that ad with the help of AI.

Then we analyze with AI where the customer is bouncing from through a Microsoft service and that integrated with AI. We are able to watch real time where the conversion is slowing down, where the customer is bouncing, and that is helping us getting to improve the conversion and customer spend ROAS.

That gives me a lot of confidence, from product identification to creative angles to making the creative with AI and the landing pages and analytics. Completely this is on the marketing side.

Now we are also using AI in our operations too for a supply chain demand forecasting into the back end supply chain analysis and optimization. It's quite across the board we are using AI and this is only going to accelerate.

We are not doing centralized AI. We're encouraging all our team members to use AI within certain security guidelines to utilize AI to improve their results, and their contests across the company going on for best AI use and people are getting handsomely rewarded for the good AI use that they demonstrate.

Right. These initiatives on AI, demand generation or marketing, when have they started and when do you think it can reflect in terms of significant impact in terms of demand generation?

How old are these initiatives and how do we understand?

They started a few months ago. You just don't switch on one switch and go on.

It started almost a year ago and in recent weeks and months, it's started accelerating. I cannot predict how much it'll result in substantial increase, I cannot say that, but I'm comfortable with the guidance that we've given you and we hope to meet or exceed those guidances.

Understood. Thank you and all the best.

Thank you, Pulkit.

Hello, sir. Thank you so much for the opportunity.

Sir, last two quarters, there was some uncertainty due to tariffs. Can we say that the tariff-related uncertainty is out of the way right now or we have to wait for one more quarter also?

With the current administration, Mehul, we can never be certain. I can only say whatever the circumstances, we are very agile and pretty multi-country operations and logistics that will deal better than competitors.

Right. Sir, another question related to this is that since we have reported a very good set of numbers, if the tariffs-related uncertainty wouldn't have been there, we would have been significantly better?

That is very hypothetical question. Difficult to answer.

It is a fact that uncertainty can cause disruption, but I look at uncertainty sometimes as an opportunity to make a difference, do something better than competitors are not doing. Difficult to say.

Hypothetical and very difficult to say.

Right. Sir, another question is related to certification, are our products certified by external agency or there is no requirement as such for our customer base?

Nitin?

Yes. Our products like lab diamonds or lab-grown those are certified products and customer also looking for certification to get a trust and authenticity.

Regulatory requirement also is in UK to assay the silver and gold jewelry item, so that also certified. Most of the product and branded products side we certify and the certification varies based on product price range and product brand-related.

I would say that the trust we have created and value generation that we have created across the years, the customer believes and customer trusts there and we do a certification also wherever customer is needed.

Sir. My last question is about lab-grown diamonds.

Since when are we selling these products

Sorry, I didn't get that last part.

When are we Since when are we into the business of lab-grown diamonds? Is it we have started in last couple of years or

Yeah. Lab-grown category picked almost around 18 months back.

That category was pretty much nil for us in lab-grown diamond, but now that category within 18 months it is picked to almost 11% now.

Okay. Sir, thank you so much for all the answers and wishing you all the best.

Thank you, Mehul.

Can you hear me?

Yes, sir.

The first question is about the unique customer which has gone down. How do you see that panning out maybe next 2 years, 3 years?

Sure. Hi, Parth.

The customer number we are constantly looking and refining our customer persona and portfolio. Where we see a more value or quality of customers that we have targeted.

In the past year that we have targeted very low price point customers and then we have seen the lifetime value for those customers were not high, then we deliberately move to the more quality of customers where we get more repeat like beauty items and the lab-grown and the other gemstone items. That we have expanded and that they are naturally slightly high price point items and the quality of customers cost is also high, but longer term it gives value.

Overall, unique customer we monitor based on how many quality of customers we acquiring. The number has gone down because of mainly those one-off customers which were earlier not giving value, inflating the last year number.

Now their focus is more on the quality of customers.

Do we see that increasing maybe not immediately, but at least 2 years down the line? Because Germany is doing very well, we have two acquisitions.

If I recall from the past calls, we have been investing in customer acquisitions and all. Do you see that happening?

We are seeing that the recent improvement led through AI and the digital marketing the whole across platform that we have created of content generations. That is resulting the acquisition of higher number of customers with lower cost, and we see that that number will continue to improve.

Sure. Thank you.

Thanks, Parth.

Thank you, everybody, for your participation and great set of questions. If you have any further questions, please feel free to reach Vivek Jain at Vaibhav Global, or Disha or Amit Jain at Adfactors, and they'll take care of your questions.

Thank you so much.