Brainbees Solutions Limited (FIRSTCRY) Earnings Call Transcript & Summary

Good evening, everyone. Welcome to Brainbees Solutions Limited Q4 and Financial Year 2025 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 Chief Financial Officer of the company; Mr. Vivek Goel, Chief Business Officer of the company; and Mr. Abhinav Sharma, Country Head of Middle East Business Operations. 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 of the management concludes. We will be covering the presentation in the beginning of the call and we will thereafter open the 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 request Mr. Supam Maheshwari to take it over.

Yes. Good evening, everyone. Thanks for joining our quarterly and -- Q4 quarterly earnings presentation as well as fiscal year ending March 31, 2025. Today, we have reserved 1.5 hours as we would like you to take through a little more detailed dive on our business, some more nuances that you have not seen in the past. I want to reiterate for some of the members who may have joined new. FirstCry, as a company has -- as a baby's first cry a special moment for parents, and at FirstCry, we always aim to make this in every -- all such moments of the parenting journey filled with joy and happiness. This is our mission that we continue to maintain and do every activity towards accomplishing this mission. Today, we will be covering the following agenda items. We'll be covering our entire fiscal year '25 -- '24, '25 financial performance along with quarter 4, JFM. And we'll also be covering our segments, 4 business segments, our India Multichannel business, which is core of our business and International business, then GlobalBees, and in other segments. All 4 of these we'll be covering. And then we'll also talk about our financial summary or console performance of the total company. Moving further, let's just deep dive into our entire fiscal '24, '25 performance. Fiscal year '25, we are happy to report a very strong growth momentum and improvement in profitability for the full year FY '25 over '24. As you can see, this consol performance, revenue of the company at a consol level, increased 18% over FY '24, becoming around INR 7,600 crores of revenue from operations. Gross margin has continued to increase with 159 bps year-on-year expansion to 23% versus FY '24 and adjusted -- EBITDA adjusted for ESOP cost has also increased 90 bps year-on-year expansion with 43% absolute increase over from FY '24. And this in percentage terms means around 5.13% in FY '25 over 4.2% in FY '24. Also happy to report overall cash profit after tax increase of INR 209 crores, which is a 96% increase over last year and super happy to report that India multichannel business turned PAT as well as cash free flow positive in FY '25. And we remain very, very optimistic. And the entire team will be working super hard to deliver both on growth and profitability expansion for -- across all our business segments. This is a new slide where we are disclosing gross margins for our different 4 segments, which earlier we used to report at a consol level. So here, if you will see all our 4 business segments, we will continue to increase for the entire fiscal year revenue as well as gross margin expansion and as well as adjusted EBITDA. So if you look at India multichannel, our revenue increased around 15% over last year. Gross margin improved 20% over last year with 149 bps improvement year-on-year and adjusted EBITDA of a 24% increase over last year. International also had 14% increase of revenue from operations, gross margin improvement of 13%. We'll be talking about in detail some of the -- all 4 business segments. So you'll get a more detailed color of the year as well as of the quarter. And our adjusted EBITDA -- also had close to INR 140 crores of adjusted EBITDA losses, which is similar to around FY '24. GlobalBees had a 30% improvement in revenue terms over last year and gross margin improved 36% absolute, 186 bps increase, and adjusted EBITDA improved 856% over last year to INR 22 crores with 121 bps improvements year-on-year. Others, which is primarily our preschool business, another good year of performance with INR 42 crores of revenue with expansion of gross margin and almost INR 10 crores of adjusted EBITDA with leading close to around 24% of adjusted EBITDA over last year of 17.5%. So all 4 business segments have done fairly well for us for the year. For the Q4 performance as well, look at our annual unique transacting customers, which essentially includes our India multichannel international business improved 17% for the trailing 12 months ending March '25, over '24 improved by 17%. GMV, which is accounting for India multichannel and international increased by 14% over last Q4 of FY '24, and revenue from operation increased 16%, which includes other business segments as well. Consol EBITDA -- adjusted EBITDA improved for Q4 a 20% increase over Q4 FY '24, which represent almost close to 5.2%. And India multichannel adjusted EBITDA improved 17% over Q4, which essentially was 9.3% over 8.9%. Cash profit, a whopping increase of 4.84% over Q4 over Q4 to almost INR 69 crores for the Q4. Now with that, I would like Gautam Sharma -- sorry, Vivek Goel, will take you through our India multichannel business. And I would like to state that a lot of earlier calls, you had request certain more disclosures of some of our business but I would say, performances of certain metrics. This time around, we are sharing a little more nuance around some of our call -- I mean, some of those disclosures, which will help you to understand and appreciate our business in a little more detail. So I will request Vivek to take you through some of the slides may be repetitive for some of you because the moats will remain same. But since we have more disclosures, we will have a far more appreciation of the quality of the business that we are building. So Vivek, over to you.

Thank you, Supam. So as Supam mentioned in the next few slides, I'll take you through some of the important moats of the business along with some additional information, which will help you appreciate what we are building as a business. So as you already know that we are the largest multichannel retailer for mothers, babies and kids' products in India. Our total GMV of multichannel business -- India multichannel business, 78% comes from online and 22% of this GMV comes from our off-line stores. Happy to report that this year, we crossed 10 million annual unique transacting customers. Also, I want to mention that of our total modern stores, off-line stores, almost 45% of our stores are Babyhug or FirstCry company-owned stores. So as a business, we bring a very unique position as compared to any other retail format, which is where we have both online and offline strengths. And if you really see that our business and Supam has mentioned in past few calls as well, that our business lends very beautifully for an omnichannel or multichannel kind of retail format because there are all kinds of customers who want to buy things with experience as well as they want to buy it with convenience. So we serve both. And over a period of time if you really see if we really see our data, there are a lot of consumers who start purchasing with us in an off-line store and eventually becomes a very loyal online customer. At the same time, a lot of our consumers actually discover us online, and they continue to purchase in the nearby off-line store as well. So a testimony of that is that on the total GMV generated in the top 20 cities for us, almost 38% of GMV comes from these cross-channel customers. The customers who buy both in online as well as off-line stores. Anish, if you can move to the next slide. Yes. So if I would say that mothers of a young baby is the busiest person in the world. So -- and as a team and FirstCry, we really appreciate that fact and we strive to make things easier for them when they come and browse our apps. So one of the most important things we have done is we have personalized our app basis the age and gender of a child. So for example, if you're a mom of a 6-month old girl, you would see completely different home page as compared to a mom of a 10-year old boy. So for example, mom of a 6-month old girl would see products like musical toys or strollers being promoted on our home page, whereas a mother of a 10-year old might see remote control cars and school supplies kind of products, which are more relevant for them. On top of this, we also personalize our app on multiple other accesses, which would include consumer behavior as well as regional nuances. For example, if I would give you a very recent example, monsoons are slowly progressing across the country. So some of the states in South India might see our product selection as well as the promotion selection more conducive to monsoons, whereas certain other regions, which are still reeling under the heat, would see a lot more summer-related product selection and promotions. So this curation and personalization really helps the mother in terms of making the right choices for the babies and easier for them. We apply some of these learnings of personalization also in our offline stores. So as a brand, we address the babies and kids needs across age groups through a wide variety of assortment, which is almost 1.8 million strong in terms of SKUs, which are offered across over 8,000 brands. So a typical journey of our consumers or the moms starts from the pregnancy and continues till the time the oldest child is 12 years old on FirstCry. So when we started our business, at that time, our focus was more in the age group of minus 9 months to 3 years -- until the time of child goes 3 years. A few years back, we expanded our selection to cater to the needs of up to 6-year old child. And subsequently, we expanded to the age group of 12 years. So I also want to mention that as a brand and as a retailer, we are very fashion-focused. And that could be seen in terms of the ratio of fashion business in FirstCry. So out of a total GMV of multichannel India business, 52% of our GMV comes from baby and kids fashion, which includes apparel and footwear categories. All the other categories, which contribute to about 48% of our business, are powered by almost 300,000 strong inventory selection -- SKU selection. So this slide, we have added to give you a little more color in terms of stickiness and long-term cohorts of FirstCry customers. So if I would try to attempt to explain it to you. So in fiscal year 2013, in the acquisition year, if a consumer gave us a GMV of 1x over a period of 12 years, till the time -- over the period of 12 years, we end up generating almost 7.9x GMV from the same consumer and that was for fiscal year 13. If you see this report vertically as well. So for example, till year 4 column , which is 5 years post -- year of acquisition. In fiscal year 2017, the number increased from 3.4x to 3.7x. And for the consumers who are acquired in fiscal year 2021, this number for the first 5 years of revenue increased to 4x. So over a period of time, we can clearly see that the business has demonstrated increasing stickiness. And as I mentioned, that the 6 to 12 months age group that we have launched some time back is still to be completely baked into these long-term cohorts. So we expect these numbers to further continue to improve over a period of time. So this is another very important moat as a brand that we have built, which is the collection of highly curated home brand portfolios. We have built some of the most iconic brands in India when it comes to baby and kids products with some of them include BabyHug, Pine Kids, Cute Walk and Babyoye. So over a period of time, what we have seen is our home brands have grown at a much faster rate as compared to the FirstCry GMV. So for example, in FY '20, the GMV -- the contribution of home brands to FirstCry GM was 37%. In fiscal year '25, the contribution crossed 55% from -- the revenue coming from home brands crossed 55% of our total GMV. So one of -- a couple of very important benefits and strengths that FirstCry home brand is bring in is first that in a market, which is highly fragmented, home brands bring in curated and high quality, much better quality as compared to the market, which helps in better consumer retention as well as the home brands at the second level also help us expand our gross margins. So amongst our home brands, you already know that BabyHug is the largest mothers, babies and kids product brand. We are the largest in terms of selection in Asia Pacific or assortment in Asia Pacific, if you exclude China. And we are also largest multi-category mothers, babies and kids product brand in terms of GMV. So in the next few slides, I'll share -- so over the period of a journey, we have built a lot of important marketing strategies and moats for us, which has helped us in being very prudent with our marketing costs or optimize our acquisitions as well as increase the retention of our consumers. I'll discuss a couple of them in the next few slides. One of them is one of the most unique things that we have built from our strategies is that we have built -- we are one of the unique apps to have commerce and community in the same mobile application. So we are -- we operate the India's largest and most engaged parenting community in our app, which is also called FirstCry Parenting. So FirstCry parenting has educational information, provides educational information to the moms, which is both professional generated content and also user-generated content. We also provide very important tools, which are required by the mothers during the parenting journey, like immunization schedule tracker, grow tracker, Q&A as well as content, which is video as well as text, and a lot of this content is actually personalized base is the child's age. So that the mother again, as I mentioned earlier, doesn't have to waste their time and looking for the stuff they don't need. So parenting actually helps us in consumer acquisitions on one end as well as retention during the most important formative years of a consumer coming on our platform. The second and very important strategy that we have is the hospital gift box program. So this is a long-standing partnership with hospitals. Some of those partnerships go as back as 13 to 14 years. We have partnered with almost 13,000 plus clinics and hospitals across the country where we distribute almost 2.5 million boxes a year at the time of baby birth. So this is very important because the time of baby birth is one of the most emotional movement for all parents and it is the perfect point of market entry or a brand like FirstCry, right? And just to give you a color about the scale that we operate this program at. So we cover almost about 10% of baby births in the country through this program. So now I'll hand over to Gautam to take us through the financial numbers for our multichannel business.

Thanks, Vivek. So this talks -- slide talks about growth in annual unique transacting customers, GMV and orders. We continue to see a very healthy growth in our AUTC in March over last year March, this is a 12-month trailing number. Orders in GMV has almost similar growth for FY '25 or FY '24, which is 16%. And the Q4 growth in orders as well as GMV is around 14%. This is a slightly impact -- in Q4 it got slightly impacted because of 3 reasons. One is we have witnessed some slowdown, especially in the offline business. The second reason is we have seen a truncated winter. We talked about last time that there was a late start of winters. And in fact, it ended early. So that is one of the reason because of the -- because of that, the GMV has got moderated. And third one is -- we all know that we have closed a few company-owned stores in fiscal '25. These are the 3 reasons because of which GMV growth and order growth was moderated in Q4. Revenue growth for full year is 15% and for the Q4 over Q4, it is 12%. Again, the moderation is because of the reasons I just explained. However, we continue to improve the EBITDA for the India multichannel business, both on quarter-on-quarter and year-on-year. So FY '25 EBITDA you see, this is adjusted for ESOP cost. It has gone to 9.5% from 8.8% in FY '24. And it represents around 24% growth year-on-year. Similarly, if we talk about the Q4 FY '25 EBITDA numbers, it is 9.3% compared to 8.9% in Q4 FY '24. This represents a 17% year-on-year growth. Now I will let Abhinav Sharma, who heads our Middle East operations to take you through the international business lines.

Thank you, Gautam, and hello, everybody, and thanks for joining us on this call this evening. I'll quickly walk you over the international business where we started, when we started, and why we started, what's the journey look like so far. As you can see here, a very compelling reason why we initiated or started our business in both geographies in the Middle East, KSA and UAE. As you can see, KSA birth rates are even higher than India. And the spend for China to top that up is about 8x higher that as compared to India and about 17x higher in UAE as compared to India. So very compelling reasons for us to be present here in both the markets. And it represents a large market opportunity for us as well as very favorable demographics. Anish, Go to the next slide, please. So our journey thus far, we started first in UAE in October 2019 and subsequently, in KSA in August '22. And the basic tenant of our business in both markets internationally has been replicating a very well-defined and evolving sort of a playbook that India business has created over the last 15 years. And -- so you can see the -- we are online only right now in UAE and KSA, both the markets we are operating as a pure-play e-commerce player in our vertical. And the average order values in the international segment is more than 4x that of India average order value as of now. This is a very important slide. This shows you how the gross margin values have or gross margin percentage has evolved in both the markets, India as well as international in certain time stamps. In India, as you can see, we started in FY '11 and after 7 years, we clocked GM of 24%. In the international business, we've completed about 4 years now, and we are very similar in terms of the GM percentage. So the playbook impact that I was talking about in the previous slide, obviously, it has a lot of levers to speak of a few of the levers in terms of margin expansion that has paid out in India, that you can see in year '14, spectacular, 36.6% clock of GM percentage. Increase in share of home brands in the GMV is one lever, share of fashion, which is kids and babies fashion in GMV, better home brand and third-party margins due to economies of scale and of course, operational efficiencies. Now these are some of the levers that the India playbooks handed over to us, which are also in play in the international market. Gautam, over to you.

Sure. Thanks. Thanks, Abhinav. So again, similar to the slides we presented for the India multichannel business. This represents the growth in AUTC orders and GMV. AUTC has increased 14% Q4-over-Q4. However, the growth in orders slightly got moderated in Q4 and even full year. So we talked about a few horizontals -- during our last earnings call, we talked about the horizontals entering the Middle East region. That competitive intensity continues in Q4 as well, and that has impacted slightly the growth in orders as well as the growth in overall GMV. Next slide, please. Moving on to the revenue from operations. It has grown by 14% in FY '25 over FY '24. However, the growth in Q4 FY '25 is a little lower. It got moderated because of the reasons I just explained the competition reason. However, the clear focus is on improving the profitability and sustainable growth. You can see from the EBITDA numbers, the full year EBITDA number, it has come down from minus 19% in FY '24 to minus 16% in FY '25. While the losses in absolute terms remains more or less same but we strongly believe that the peak losses now are behind us and we will continue to reduce the EBITDA burn both in terms of absolute value and absolute percentage quarter-on-quarter going forward. Over to you, Supam.

So on GlobalBees front, I think as this is a little familiar slide, we continue to operate in our 4 segments, home improvement utilities, home appliances, active lifestyle accessories and home and personal care. As we haven't acquired any business since September '22, so all our growth post that has been totally organic. Now if you will look at our performance for the full year FY '25 over FY '24, it is 30%, going up to INR 1,577 crores. And for the Q4, we grew by 33% Q4 over Q4. And in terms of adjusted EBITDA, as you can see, we continue to improve our adjusted EBITDA because this business is 3.5 year old. So -- and in fact, first year went around and priming the engine with a lot of category acquisitions that we did. So really, the business is fairly young for it to be able to result into a more mature EBITDA. But as you can see, we continue to improve our EBITDA year-on-year and quarter-on-quarter basis where for the full fiscal year, we have demonstrated 1.4% EBITDA over last same fiscal year, it was 0.2%. And likewise, for the quarter where negative 0.3% has become 0.7% positive. So these are still early days. The company continues to do -- business segment continues to do very well, both in terms of the growth and expansion of our EBITDA is yet to materialize in a meaningful way. If you look at -- this is a little more detailed color on the GlobalBees. If you look at some of these segments for FY '24 and FY '25, all the -- we have tried to classify into 5 segments, although we just talked about 4 segments. So we have our core 4 segments, which is home utilities in darker pink, slightly lesser pink home appliances and very light pink on home and personal care and active life and accessories. These are our core sort of brands that continue to expand. Other brands, which are -- which we have deliberately slowed down, and we believe the -- we believe because of certain evolution curve that have -- if you look at even the right-hand side, the adjusted EBITDA from the core brands has been around 7.5% and from the other brands, it's minus 31%. And the share of these other brands is reducing from 14% in FY '24 to 8% in FY '25 as a deliberate strategy. So over time, as the other brands piece of the business reduces and we will attempt at making it EBITDA neutral over a period of time while improving our focus of -- on the core brands, which have -- has a disproportionate growth, high growth than the overall business growth of 30% year-on-year. So it will mean a very meaningful outcome as you can imagine that over next 2 years, as we move along, the other brands reduces in size and the adjusted EBITDA for those reduces in percentage terms as well. Effectively, our Globalbees business will deliver a lot more EBITDA in terms of the bottom line, both at a consol -- I mean consolidated brands and we believe we will obviously improvise on our corporate expenses and delivering a superior performance on the overall GlobalBees adjusted EBITDA from 1.4% going forward to a much healthier number over few quarters and years to come. So I hope this gives you a little more deeper color on some of these were asked in questions that you had in the prior calls. So therefore, we thought to share this additional piece of information. I would now request Gautam to talk about the other segments and consol performance.

So this -- so other category largely includes our preschool business. So we have a strong growth in preschool partnership across 160 cities now. And you can see the preschool numbers, number of operational preschools from 105 in FY '23, we have increased the 208 in FY '24, and now we have 363 operational schools. You can see a healthy jump in the number of students enrolled as well. For FY '25, it is 18,470 students who are -- who have enrolled in our schools. Revenue continued to improve from INR 33 crores, we have posted a revenue of INR 42 crores for FY '25 and the same thing is with EBITDA. We continue to improve our EBITDA from negative 13% in FY '23. We have now reached to EBITDA of 24%. This is about the consol performance, all business segments put together. This is -- we are just refreshing the slide in the form of graphical presentation, which Supam has done initially. All 4 business segments, India multichannel business, which is the core international Globalbees and others, all continue to grow their revenue and continue to improve their profitability year-on-year from 8.8% to 9.5% India multichannel business, from minus 19% to minus 16% in international business. Globalbees business, 0.2% to 1.4% and in our preschool business from 18% EBITDA to 24% EBITDA in FY '25. As a result, combining these 4 segments, we get a 18% growth in our net revenue, consol revenue for FY '25 or FY '24 and a 16% growth in our net revenue in Q4 FY '25 over Q4 FY '24. The green boxes in this graph the consol gross margin. So you can see those are also continuously improving. From 36.7% in Q4 FY '24, we have improved this to 37.5%. And from 35.8% in FY '24, we have improved this to 37.4% in FY '25. Likewise, similarly, we continue to improve the adjusted EBITDA as well, consol EBITDA from 5% to 5.2% Q4 over Q4 and from 4.2% to 5.1%. FY '25, over FY '24. This ends our presentation.

Yes. Happy to take now questions. We can wait for a minute for the queue to get formed and then we can start with the Q&A. [Operator Instructions]. First question is from Videesha.

This is Videesha Sheth from AMBIT Capital. I really appreciate the granular data points. My first question was if you can explain the gap between AUTC and the order growth that we've seen in both international and India businesses. You've talked about the reasons for subdued order growth. But going forward, what can be done to narrow the gap? And when do you expect the order growth to be in line with the AUTC trend? That was my first question.

Okay. So if you talk about -- I think AUTC growth with respect to you mean the order growth, right? I mean that's what your question is.

Yes.

If you look at India -- the delta is not that big. If you look at the full year picture say -- Videesha you'll have to put it on mute. I think there was -- yes. So if you look at the full year picture, Videesha, you will not see what you're seeing as the delta is largely coming from certain slowdown that we experienced in our off-line sort of a store network. The footfall leading to a lesser orders -- lesser footfall is leading to lesser orders is what we experienced, especially in January, February, which obviously got corrected in March with the season changed. If you look at our online while the slowdown has an impact on the customers coming back and ordering while the AUTC is registered once it gets registered. So -- and also, if you look at the online growth, online GMV growth for the year FY '24 or '23 or FY '25 over '24, it remains 18%. And if you even look for Q4 online growth, it is close to around 16%, which we feel is a fairly good number. In terms of the pure sort of online.

Just to add, with Videesha , there is no major difference between the AUTC growth and the growth in number of orders in the India multi-channel business. However, if you see the difference in the international business, it is -- as I mentioned earlier, we have seen a few competition entering the market in Q3. So that has led to a difference between the AUTC growth and the growth in the orders. So while customers are coming in but the frequency of those customers transacting, they may be doing some transaction on other sites because of higher discounts or whatever. So that's the reason there is a big difference between the AUTC growth in the international business and the growth in the number of orders. Largely India multichannel business is more or less in line.

Got it. And the second question was on the marketing spend. The ad spends are pretty elevated, so you can elaborate on how should one think about it going forward?

So if you look at our -- we share our total overall ad spend. Our ad spend because Globalbees as a business has a higher percentage of marketing cost compared to all the rest of the 3 channels -- 3 business segments. So the share of that segment has increased. Therefore, you see actually increase of the overall marketing spend but we have ensured that we have a much superior expansion in the gross margin as a business overall, so that we can retain and keep expanding our adjusted EBITDA appropriately. So that way, we have balanced a growth with profitability while sort of managing these 2 expectations. So one is more of a, I would say, weighted average numerical sort of modeling. And second is we ensure while we do that, we continue to expand gross margin to be able to pull it down towards increasing EBITDA as well.

Thank you, Videesha. Next question is from Sachin Dixit.

Thanks so much for the improved disclosure. My first question is at a slightly higher level, right? If you look at your businesses, obviously, multiple businesses, segments, a lot of moving parts. What do you feel a lot more satisfied about sitting at the fiscal year close versus where do you think there is a substantial effort that you need to still put in?

Sorry, I'm not even clear with your question.

So my question is like, if you look at our business performance, right, obviously, you cannot be happy about everything. So there might be pieces where you can tell me, "Okay, Sachin, I'm very happy about this, this, and this, and this is where probably we need to do a lot more work going forward." So that's the question largely.

Look, I would say we would be -- I mean, as a professional or as a team leader, our job is to be able to be -- remain sort of hungry. And I think we feel that we should have delivered more both in India multichannel, even in international, rest -- other 2 segments have done well. We would want to expand our gross margin -- our EBITDA margins faster in GlobalBees. School very small and although it's doing well. So I think both India, multichannel, especially in offline, we believe -- I think we would like to see better performance. And I also would color it with the way that opportunity fundamentally remains solid. There is a large untapped market, largely unorganized. We are the largest organized player. We are a true omnichannel or multichannel player with 1,000 stores and a large amount of business coming online. None of our competitors are like us. So we believe that the opportunity will be with us as it unfolds. But yes, could we have done in FY '25 more? We were doing fairly well, and we believe our online has done quite well. We could have delivered more in offline in our India multichannel. We have become more cautious in terms of capital efficiency. And that's why we will remain that way. But we believe in the longer run and the medium term, we should be able to pull back as overall consumer broad -- consumer slowdown improves with some of the efforts by the government, some of our internal efforts that we have at our sleeves that we will unfold to be able to extract more growth both in India multichannel. And in Middle East, I think our focus will remain very, very profitable growth. We believe that while we had expected a little superior growth but there is no point in getting that growth at a higher cost or a higher burn. We rather believe that we -- what have we -- the way we have played out our story in India when some of these horizontals were there, especially in times like 2013 to 2017 when we played out. Similar moats are getting built up in a similar way in terms of gross margin expansion, which Abhinav talked about, what we delivered in 7 years, in India, we delivered in 4 years. So I think once our home brands get acknowledged and get penetrated in those markets, we will continue to see superior adoption curve and improvement in cohorts, improvement in quality of customers that we will onboard and so on and so forth. Some of these metrics will improve, and the long-term journey is going to remain with us the way we have charted out. So short term, we might feel a little unhappy about the growth that we are demonstrating because of some external reasons. So those are the 2 large points that I will color up. Rest, I think everything how we have anticipated is playing out in -- the way that the moats are structured. They're very fundamental and that will continue to compound for next 10 years or 20 years.

That's very, very helpful, Supam. My second question is on the franchisee network side, right? Obviously, we have not seen any growth in the number of stores in the last 6-odd quarters. So what is happening there? Is it you not proactively wanting more franchisee partners or franchisee partners probably shutting down because there's a COCO store, which is much larger that they can't compete with? What is happening there?

So Sachin, I think as -- our position hasn't changed as what we talked about in our last couple of quarterly calls, we are very sensitive about -- we want to continue to grow our franchisee partnership. We have had strong partnership for almost 13 years plus with many of our franchisee partners as old as 10 years plus in the system, some of them even have multiple stores. So that remains very, very strong. And they have seen our journey for a long period of time, and they continue to remain with us as long-term partners. So nothing has changed. Many of our franchisee partners are also partners for other retail brands in the country. And they have seen some bit of a -- sort of a material sort of a slowdown. So that's how somehow, they also become very cautious, and we have also become super cautious because we just want -- don't want any larger store churn, although some of this is very controlled. So the criteria for us to select a partner has become taller and taller over time in terms of controlling the churn and in terms of superior customer sort of experience that we can give to the end customer, those are the reasons why there has been gross additions, while there has been a churn, which is in late single digit. And therefore, the net number remains what you are referring to. So I think over time, we have been having but because of -- the addition is lesser because of the quality of the partners. And obviously, COCO, we have a far greater control and it's relatively easier to have a say in that in terms of the -- when the location is available, we can actually close and move on. But no change. Fundamentally, we continue to adopt more and more partners as we grow our business in offline, both for the franchisee partners as well as the COCO. In last couple of quarters, you may have seen that but fundamentally, there is no change.

Thank you, Sachin. Next question is from Percy.

So I just wanted to understand on your margins front, like for the India business, what do you think is the stable state margin of this business once we get enough scale, we are at around 9.5%. So where do you think we max out? Is it 12%, 13%, 15%? What do you think is that number? And what will drive it? Because if we are already at 55% private label, how much more can we push that? Because beyond a point, we are a retailer and we want to give the customer as much choice as possible. So if the entire platform becomes predominantly just a private label, then the customer experience will also be affected. So assuming that this 55% goes to a max of 65% and that gives you some margin, but what else will result in the margin expansion? Because see, now our scale is not small. We are close to INR 5,500 crores kind of top line company for India itself. So yes, that was my first question, really.

Sure, Percy. Percy first of all, I would like to draw your attention to the fact that while we are at 55%, we believe that we have a -- and if you look at our -- the that we Vivek through we have compounded on an average, 50% higher than our overall India multichannel growth for our home brands. And that is the reason why we increased from 37% to 55% plus in last 4 to 5 years. Having said this, the journey hasn't stopped. The growth hasn't stopped of over compounding in our home brands. So we believe that we will continue and the reason is very, very fundamentally. There are no -- I mean, there are no big brands in, let's say, the largest category of babies and kids apparels and fashion. You tell me brand, which is mothers, baby and kids and fashion, which will be, let's say, INR 400 crores plus, you won't be able to find a large brand out there or multiple of them. Most of these brands either have withered away or have become very small. There are many of them, which are INR 100 crores to INR 300 crores or INR 100 crores to INR 200 crores range. And then there is a range of hundreds and thousands of them, which are mompreneurs and brands, which are beautifully crafted by mompreneurs or they serve a very specific design aspiration or quality aspiration or curation. And we will continue to hold them beautifully in our portfolio to be able to solve for mothers who are trying to solve for a specific curation need. So we believe that this partnership of holding them, while we will continue to grow as a platform, we will remain relevant to some of -- most of our brand partners, 8,000 of them. But at the same time, we're able to continue to compound because at scale, we can only do it, building reliable supply chain, building reliable product, quality product at scale and at a price point that in a different set of price points that we will be able to bring. So with that architecture, we're paying at a different price point, quality and supply chain and at the scale, it's very hard for a small brand or suboptimal size brand. That's not their aspiration. So therefore, the blend of these mompreneurs of these brands, along with us will continue, and we will continue to compound much superior as we have done in the past. We will continue to perform that. So we believe without putting a number, whether it's 65% or more, we will continue to expand our share of home brand. And we believe that we aspire -- as we have shared in our earlier calls as well, we aspire to be in India multichannel to be at least late teens as an adjusted EBITDA. That is what we aspire to do, and we believe it is possible to deliver what the companies that we personally aspire and our management team aspire to be Page Industries. Where we can get that? Now whether we take 4 years, 6 years, 7 years, is that something that we can deliberate how opportunity presents to us but we will not leave any stone unturned in terms of grabbing improvement of margin, both on a gross margin level as well as a marketing efficiency level. We, again, at a marketing efficiency is very unique to us, as you can see, the multichannel model that we have. It's very unique. And then also, obviously, our operating sort of leverage that we can get on our fixed cost because we want to be expanding on our warehousing and so on and so forth. So all of these will compound, as you will see, which we will deliver over at least for now, we have been with you guys publicly at least for a couple of quarters but you'll continue to see us expanding gross margin as well as EBITDA for a very, very -- for a significant longer period of time. Till the time we believe that we have achieved our aspirational goal.

Sure. Supam, my second question is on the right to win for verticals versus horizontals. So supposing if I just take the example of Nykaa. The 2 differentiations that I can see for Nykaa versus Horizontal is that there is a big threat of fix and counterfeit on horizontal platforms and because Nykaa holds inventory and it's not a marketplace and watches for the products. That is one of the reasons why people buy on that. And the second reason is that this is a category which has a huge number of SKUs. There is a huge, long tail. Many of them are not available on horizontals, and that is why people go there. So if I have to find reasons why people need to go to FirstCry versus other horizontals, what would be the reasons in your case?

So look, I think we are very different than some of our other -- some of the names that you just mentioned. But from a -- first of all, our biggest differentiation is that as we see 55% of our GMV comes from our own home brand itself. They are not available on any other, I would say, a marketplace fundamentally. And so the end consumer, which is primarily the mother and young fathers, they are coming to FirstCry for 2 fundamental reasons. One, we're an NBO, which is solving for every curated need for a brand, for a product tie, product size in a much more curated way, that is what we are solving for. We are a very, very highly curated platform, and Vivek took you through some of the personalization at a age level, at a category level, at a climate condition level, some of those areas, when you club it with the age, it actually makes a world of a difference. So -- and we are more of a discovery platform than a search led platform. So if you apply all of that with our share of a home brand and the curation of other mompreneurs with the fashion being the largest sort of a segment for us, it presents a very different outcome from a young mother or a father to be with us compared to a horizontal. And that is what -- and you know already as a matter of fact that BabyHug, just one of our home brand is India's largest mothers, baby and kids our product brand in a country on JV itself. It's not available. I mean -- and what about the other moms buying on other, let's say, horizontals. The BabyHug is not available fundamentally. So there are 2 reasons why they will come to us is simply it's NMB multichannel -- sorry, on online, just I am talking about online because horizontals are only online. So as a curation for solving every need. And then second is repeat cohort of our buying of our home brand itself because they are very highly, I would say, the products are superior in terms of quality, experience. They have done it over years, and they just want to -- for lack of brands, known brands that they want to repeat and they are satisfied. So with these 2 reasons, they will continue to come back to us. And that is exactly what we have seen even 6-12 when our journeys are ending for mothers from 0 to 6 because BabyHug is available now, it's Pine Kids, which is taking the journey and legacy of BabyHug to Pine Kids for the older age kid. So the power of product -- superior product itself apart from convenience of online and curation that we've built through personalization is driving more and more consumers and stickiness of those consumers, as you have seen in the cohort, which Vivek also took you through, is a result of all of these work that we have been able to deliver.

May I be permitted? One statement to this. So all the horizontals actually are a reflection of the market, which is highly unorganized. So that is where both in terms of home brands and the other brands as well, third-party brands as well. Our curation ensures a superior selection as well as experience for the consumer. And that is what Supam was mentioning, increases our stickiness and strength for the organization.

Got it. Got it. If I might be permitted one small question more. On the India business growth this year has been around 15% which is a little lower than our expectation of around 17% to 18%. So do you think this is a blip or an anomaly and you will come back to a 17%, 18% kind of number? Or do you think that what we have displayed this year is more likely to be the sustainable growth going ahead.

So Percy, while in the short run, it's very difficult to sort of outline exact data point. But I can -- what we collectively think is that the industry, which is growing at 12% to 14% highly unorganized. And this particular I would say, year saw a slight bit of a -- or rather this calendar year, starting from January, February, we saw a little bit of a consumer slowdown and especially in the offline. So we believe that it is not a reflection of a medium-term approach of the overall growth that the industry will demonstrate. And being the largest player in the industry, we should be able to come back to a much superior growth. If you look at our online, even Q4 resulted in 16% GMV growth quarter-on-quarter, quarter 4 over quarter 4 or -- I mean, '25 over '24. So it's just the offline piece, we believe it will get -- I think it's just a blip. Even the government is doing its bit in terms of reducing some tax slabs and some of the other areas where the government help will also reflect in some more consumer pickup, plus some of our other efforts internally that we are putting up maybe we can talk about. But those are also going to fill up getting more and more customers and improving retention or improving frequency. So we believe it is just -- I think, it is a temporarily blip is what we believe because there is we remain steady and strong as far as a shift in terms of driving more growth over a medium to long run.

An important thing Percy is that we are not losing our road to any competitors or any new players. So we got better than the industry growth. While we have seen some slowdown, but we'll continue to deliver a better growth compared to industry growth.

Thank you, Percy. The next question is from Sachin Salgaonkar.

Two questions from me. First question is on international business. Clearly, with the businesses in nascent stages but we are seeing an order growth of 8% on a Y-o-Y basis. And you guys clarified it's largely on the back of competition. So the question is, is it only competition? Or is it something else, which is impacting the growth? And the reason is, see, the players, which we are talking about, like Temu and others are here to stay in the market perhaps for a long time. And what we are seeing in other markets is they tend to get aggressive over a period of time. So I was wondering if there is any change in strategy from management to accelerate the growth out here, given the fact that the growth is slowing over the last couple of quarters?

Sure, Sachin. I'll just maybe start the answer and maybe Abhinav can add to it or Gautam can add. So look, I think it was important for us, while this is some external factor that really played out. As I earlier also alluded, we have seen this in the past in India as well when the marketplaces were very, very aggressive, but they became saner over time. That same thing will play out in Middle East geography as well. It is important that we keep our head down and build a moat that we started our journey with because that is what will help us, not just our discounts or higher marketing burn on higher CPMs. So that doesn't result, except for increasing your burn. It was easy for us. We had the money. We can do all of that, but we don't believe in that. It is better to improve the quality of the customers, improve penetration of the home brands, improve assortment of the home brands that we have in India, taking there. We have actually, in fact, tailored home brands for the Middle East market as well. So we just want to focus on those -- building those assortments because it takes time to build those assortment and get the penetration of those assortments into the market, get our product mix, the category mix, our home brand mix to a level that what India has already accomplished in an accelerated way because once you deliver that, none of the horizontals will ever be able to sort of -- they don't operate in that fashion. So therefore, we will be having a very superior economics over a period of time. So we don't want to play a rush game. We want to play a very steady game to ensure that we build a sustainable, profitable growth, keeping a focus on reducing burn and making our Middle East operations profitable as per our internal plan of within a few years, you want to make it profitable or neutral EBITDA. That is what we want to focus more on through our own strengths rather than actually burning more sort of tire. I think that's how we are tracking ourselves internally, not a rest approach. But I Abhinav if you want to add anything or Gautam, if you want to add anything else?

So in fact, as Supam mentioned earlier, Sachin, we have witnessed the competition from horizontals in India as well during 2013 to 2016. We stick to our playbook on building home brands, improving margins. And today, we can proudly say that we are the largest multichannel player in India in terms of GMV. The largest brand, again, is Sombra -- is BabyHug. And we have taken the same playbook in Middle East as well. So we will be focused more on improving the customer stickiness as we have done in India. And you can see the impact of the same on the strength of the playbook in the margins, what we have delivered in India in 7 years, in terms of gross margin, we have delivered that in Middle East in 4 years. Abhinav, do you want to add anything?

No, I think you guys have provided it completely.

Great. My second question is on Globalbees. Clearly, a very phenomenal growth in the quarter given the context that there's a consumption slowdown going into India. And what we are seeing on the ground with multiple D2C brands, given the fact that consumer preferences are changing so fast now with how quick commerce is evolving. Not many brands are sort of scaling up beyond a particular level. So the question to you guys is out there is, should this be a steady-state growth going ahead in terms of, let's say, 25% to 30%? Or how could one think about sort of a normalized growth in this business? And same is in terms of long-term steady-state margins for GlobalBees to think about that?

So look, going forward, I think, obviously, growth has to moderate at one remain at a 30% level. But yes, it will remain meaningfully high as we go along for at least next few years to come. We are a young company. We have some great, I would say, brands and great sort of founders that are working with us. Hungary and all of us are working together to grow some of these brands. And the -- as I said, their journey itself, they are fairly young. So they will have a very decent growth and a good even profitability margin as well. The slide that we talked about, the 8% of our business, which was 14% earlier, leads to a 30% negative EBITDA. Once you shrink that meaningfully low in terms of 8% becoming even smaller and 30% reducing to 0, you can imagine our business will be even more profitable at the current stage itself. I mean even if you don't increase the gross margin or the operating leverage within the rest of the brands, which is 92% of the business, right? So essentially, we are clearly saying that GlobalBees business over a period of time will improve adjusted EBITDA, no questions on that. Yes, it will play out in a -- over a, I would say, a 3- to 5-year journey. It's a hardly less than 4-year old company. First year went out and a lot of acquisitions, as you know, it's not easy. I mean -- and -- but I just want to make sure that while the business has done, segment has done very well and so on and so forth. And we continue to believe that we will deliver stronger performance, both in top line and bottom line for a few -- I mean, many years to come because we believe the story is getting there. We have the playbook that we have executed well and is getting stronger and stronger.

And just to add, Sachin, so while the consol growth of GlobalBees is 30%. But if you see the growth in the core brands, the 4 core segments, the growth is disproportionately higher.

Thank you, Sachin. Next question is from Garima.

Yes. I also had a couple of questions on Globalbees. What was the loss GlobalBees made in FY '25? And this CCPS infusion is essentially to keep funding losses for the next 2, 3 years? Or you have some acquisitions in mind? How should we read it?

So at the EBITDA level, Garima, Globalbees is positive. It has given us a positive EBITDA of INR 22 crores. The other thing, which -- we post EBITDA, the large part of the spend is a noncash expenditure, which is in the form of amortization of brands, which is roughly INR 100 crores every year and some finance costs towards the borrowings made by GlobalBees and their subsidiaries. Other than this, if you adjust these 2 items, we will reach to -- at a PBT level in Globalbees. One important thing I would like to mention is if you see the consol results, there is an exceptional item that we have taken roughly amounting to INR 37 crores. Those are towards impairment of some brands in GlobalBees. So you will see that additional onetime impact in GlobalBees as an exceptional item. Other than that, it's doing very well. Brand amortization, again, is the classification of investment done by GlobalBees in the consol financial statement. So we have to amortize it over period. So that's a noncash expenses. And once the company starts generating higher cash profits, I think the number should become better, Garima.

So the CCPS towards both?

This is largely for taking care of the working capital requirement, Garima.

All right. Understood. GlobalBees also recently had a departure of the CEO plus some Board of Directors resigning, what was that about? And who takes over the reins of this entity going forward?

So Garima, I think some of these news article, I would like to clarify. See, first of all, obviously, Nitin who was the CEO of the company left for the personal reasons. His role has been taken over by Anuj, Anuj Jain, who has almost 10-plus years of experience with ITC and L'Oreal. He was a thorough professionally. He is an MBA. And I mean some of these are public information. But sharing it that he was with ITC and L'Oreal before he joined FirstCry. He's been with FirstCry for 12 years. So he has seen a 20-year plus consumer product journey playbook across ITC, L'Oreal and FirstCry and steered up the ship for -- in India and multichannel and in BabyHug as well as. So he has seen D2C, he has seen online, he has seen offline, he has seen throughout our journey of FirstCry, and also lastly, he was handling our school business. And we felt he was -- he would be most appropriate, and he has now taken the reins of the Globalbees. So that's Anuj. And about the directors. So I would just like to clarify, look, I mean the news article said that 3 directors resigned after Nitin resign, that's not correct. One director resigned 9 months prior to Nitin. And see, these are investor directors, Garima. And typically -- investor directors, typically investor, I mean, PeVC fund investor directors and they typically have an internal policy. While I can't speak for any one of them on their behalf, but what I'm saying at a generic level, they have a typical policy of not being part of a Board of a publicly listed or deemed public listed company. Therefore, the request was to not being part of as a Board member. So that is -- and while one of them resigned 9 months prior to Nitin, which was like early September or August, somewhere around that. But the news article you know how it was. But -- so please ignore that. And one of the investor directors remain as an observer. So it's not that completely removed away.

So that's all in. Just to give you additional comfort, Garima. Few of these investors who used to represent on the Board of GlobalBees, they have participated along with us in the recent funding we have done for GlobalBees.

It's not few, all of them, all 3 of them. All of them have invested in the last round. So there is not even a single exception.

Thank you, Garima. The next question is from Madhav Yadav.

This is Tejash Shah from Avendus. So, Supam, with the master delivery becoming a baseline expectation across the ecosystem, including for the traditional online players, what steps are we taking to strengthen our delivery proposition?

I heard the second part of your question. But first, delivery becoming a base, I didn't understand you meaning delivery experience...

Yes, Supam. I'll repeat it. So am I audible?

Yes, yes, you're absolutely audible.

Yes. So no, I was just saying that now faster delivery has become a very hygiene baseline expectation, so...

Understood, understood. Fair enough. Fair question. Okay. So look, you're absolutely right. So what we are doing, Tejash, there, we haven't put a slide on it but what we are doing was -- I'll also sort of share that, I think some of companies like us and online companies or e-commerce companies as well have experienced a little bit of a, I would say, customer experience being, I would say, not up to the mark that we would have wished as operators because some of our delivery partners have had challenges. And while -- and those are because of the manpower constraints on the last mile, which we are dependent on them. So those -- I'm talking in India multichannel, India online in that sense. So those are experiences that we have faced in the last, I would say, 2, 3 months a lot more than what we have faced in the past. And I think some of other colleagues from the overall ecosystem has alluded to some of these commentary as well. Having said this, what we are doing, to your answer to your question as well, while we are improving in some of the cities, we have done some experiments to take our tech infra and work with local logistics partners within those cities to be able to improve the last mile experience as well as improved and a faster delivery. So let's say, in a city, we were delivering SDD, [indiscernible] in the delivery in 6 hours. So our attempt is now to reduce it to 4 hours or the 3 hour. So that is the experiment that we have taken into a few cities as of today in last couple of months. And our endeavor will be to continue to expand on this journey that we are just talking about into many more cities. So that we do not remain dependent or we do not really have to work at an industry average level, which is -- has deteriorated in the past couple of months and still we will be able to improve the quality of the customer experience in terms of delivery performance. So we'll expand on our experiment that we have just in a couple of cities to be able to overall improve and at the same cost, not just increasing the cost. So I hope I have been able to answer your question in terms of directionally that what we are doing to improve the delivery experience, faster delivery experience for our customers.

Yes, Supam. Very clear. So second question pertains to private label ambition that you spoke about. Now what we have observed that it's a double-edged sword from multiple dimension from working capital from customer expectations whether they are ready for it or not. So when you look at our categories today, where are we under-indexed, you think materially in private label versus, let's say, company average? And I'm assuming that our private label contribution will be higher on off-line channel versus online channel. So how should one think about sort of a very immediate, 1- or 2-year perspective, how this can move in terms of low lever of private label?

So only 2 points that I will make. First of all, I would request everyone to call it home brands. We just see privately is just about margin and not about the love and how we have built all of these products. So we certainly call it home brands. But in the home brand point, I would say that it's not like a double-edged sword because our long-standing partners, brand partners, will continue to grow with us. It's not that they are not growing with us. It's not that there will not be more partners that we will are taking our partnership as -- if you see our disclosures on a number of partnerships from 7,000 brands and now we are at 8,000 brands. So our number of brand partners have continued to increase. But having said this, many of our brand partners are small, and they will -- they -- for whatever historical or evolution curve reasons, they will remain while we will continue to overcompound on our growth journey in terms of home brand because it is a very structured playbook, structured homework that we do from a design till manufacturing and capability and all of that. So therefore, we will remain, I would say, powerful enough while continue to embrace our other partners as well. And the ecosystem will continue to deliver a superior homegrown home brand share, while at the same time, embracing both brand partners and expectation of our end consumers and mothers who want to solve for unique attributed products as well while home brands solves for some of them. So I don't think that would be a challenge and that hasn't been a challenge even in the past when we travel our journey from 37% to 55% plus. So we don't believe that it will be the case, unless you were not being able to have brands which are not growing with us. And in terms of gross margin expansion, home brands definitely give more home -- sort of margins and therefore, that will continue to happen for us in terms of margin expansion. So it will not be the case and we will see our journey together for over the next few quarters and years. We won't be able to talk about it short term. But I think over a longer period of time, there are no big brands that really kind of say like after BabyHug or after some of these brands, no brand is like in a very -- even in a -- if I just remove India, let's say, Pampers and Johnson and some of these brands, in fashion, not even a mid-single-digit percentage in terms of the share. So it's very comforting for us to embrace all of that and the best attributes that they make still embrace with us while we continue to compound on our home brand strategy.

So Supam, if I may add one point on this. Because you mentioned that we should not call private label, but we should call our brands home brands. So one of the core fundamental in developing products and home brands. is not to capture share in any underpenetrated cutting. The fundamental premise why we create any product is to give a superior experience to the end consumer. And that is a very important factor for the over period of time how we have grown our brands. And we continue to follow that philosophy as a company.

Thank you, Tejash. Next question is from [ Nigel ].

Firstly, can you talk about the unit economics for various types of offline stores in terms of store sizes, CapEx revenue and profitability for the FirstCry stores versus BabyHug stores? And how does it work for owned versus franchisee stores as well?

Okay. I think it's -- there in some of our sort of quarterly calls but Gautam, do you want to repeat at a high level maybe so that you...

So the size of the store I talked about, the FirstCry franchisee stores are typically a INR 1,500 to INR 1,600 square feet area. The same size we follow for our baby wear company-owned stores. However, when it comes to FirstCry company-owned stores. Those are a little larger, probably at INR 2,000 to INR 2,500 square feet. In terms of CapEx that we do, the CapEx per square feet is around INR 1,500 per square foot and a little lesser than the CapEx is the working capital that we put in each company-owned stores. So roughly INR 1,011 per square feet is the working capital we put in. In terms of profitability, at CM2 level if we talked about both off-line stores as well as online and gives us almost a similar profitability post marketing spend if we see.

And even in CM2 4 stores will be post rent. And some of the franchisee partners, [ Nigel, ] we have had a large number of our franchisee partners have been 7, 8 years plus and many of them are 10 years plus, and they have multiple sort of shops with us. So they have seen the profitability in their stores over years with us, and they continue to stay and have being an outstanding partner with us. So likewise, we have tried to look for such partners who can be a long-term partners. On that basis, only we started our COCO journey roughly around 2021. And because of having run the COCO business for last first 10 years. So that's how the profitability was ensured in the FOFO network, both for the franchisee and for the company. And therefore, we took that journey ahead for the COCO journey as well.

Second question is for the India business, what sort of growth have you had in the India online business versus the offline business?

Yes, it's there in the disclosures further in the presentation. For the online business, [ Nigel, ] we had 18% GMV growth for FY '25 or FY '24. Even for Q4 of FY '25, we had 16% growth over FY '24, Q4 for the online. But for the off-line business, annual one, I wouldn't exactly remember, I think it was around 11% or 12% slightly lower. But for Q4, it is around 5%.

And that is largely because of we mentioned that there is slowdown we have witnessed, especially in the offline business.

Plus some store closures that we have in the base effect of the last previous year quarter.

Thank you, [ Nigel. ] In the interest of time, we'll take one last question from Chintan.

So I just had one question, and that is on India off-line business. So we understood the external issues that we faced as well as some store closures that impacted the performance but over slightly medium to long term, as a strategy, what are we doing or what steps we are taking. So as to we have more conversions from unorganized to organized as well as protect ourselves from the competitive intensity that keeps on increasing. That is one. And second, how do you think in medium to long term, this online is, say, 78% of [indiscernible] and it's doing pretty well. So over a longer term, how do you think offline as a strategy? Where does this mix to head to? And what we are the plans for expansion in this segment? That's it from my side.

Sure, Chintan. So Chintan, first, fundamentally, if you look at our business, mothers love to buy the product, both online and offline. If you remember, one of the slides that Vivek showed, this is the first time that we had done this disclosure. In the top 20 cities, 38% of our GMV comes from customers, which have an overlap of online and off-line. And we have been seeing this very, very unique category where consumers or mothers typically love to buy products both online as well as offline. They can start their journey online and go off-line as well in the vicinity of their homes and other reverse way as well, which is going offline and come for convenience in the online because they built a trust with the platform as well as with the product and the brand of that curation that we had. So I think fundamentally, nothing will change this. If you look at last 3 years of our journey, our ratio between online and offline has not materially changed maybe 100 to 200 bps here and there in terms of the share. So not material changes has happened. And we will continue to expand our offline operation as well in terms of the gross block that we will add in FY '26 will be somewhere similar to FY '25. So we do not feel that we will have a lot of legroom to play even to expand our offline network but we have become more cautious for last few months that we have seen. And we believe these are temporary because, ultimately, the customer that we get, how we look at our offline business, particularly is a footfall that gets the customer into our store gets the experience of our platform also then goes online. So it has a network effect on advantage both in terms of the experience and the CAC eventually even for online and so on and so forth. So it's a very unique proposition of multichannel, which you would not find in a very traditional or a normal business model in a retail model. So we believe that we will continue to play from a consumer insight or a mother's inside of buying both and also the unit economic benefit that will continue to drive from being both present online and off-line. So we'll continue to play this card start for a very long period of time. We may tailor here and there in terms of improving the wallet share of the customer in that catchment and the footfall optimization that we can continue to do. So those are efficiencies that we'll try to drive to build more capital efficiency. But strategy-wise, nothing will change. We'll continue to compound on both our off-line, which will also deliver online and online will deliver offline as well.

Thank you, all the participants. That was the last question. Back to Supam and Gautam and everyone to just for the concluding remarks.

Thank you very much, everyone, for being patient. We are at -- instead of reserving 1 hour, we reserved 1.5 hours so that you can have a lot more detailed conversation but really appreciate your time and patience. We look forward to seeing you in the next quarter. Thank you.

Thank you so much, everyone. Thank you so much.

Thank you so much.