Kewal Kiran Clothing Limited (KKCL.BO) Q2 FY2026 Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Kewal Kiran Clothing Limited Q2 and H1 FY '26 Conference Call. [Operator Instructions] Before we begin, a brief disclaimer. The presentation which Kewal Kiran Clothing Limited has uploaded on the stock exchange and their website and including the discussions during the call contains or may contain certain forward-looking statements concerning Kewal Kiran Clothing Limited business prospects and profitability, which are subject to several risks and uncertainties, and the actual results could materially differ from those in such forward-looking statements. I now hand the conference over to Mr. Hemant Jain, Joint MD, Kewal Kiran Clothing. Thank you, and over to you, sir.

Good afternoon, everyone, and thank you for taking the time to join us today. Welcome to Kewal Kiran Clothing Limited Q2 and H1 FY '26 earnings call. I'm joined by Mr. Pankaj Jain, President Retail; and Marathon Capital and our Investor Relations Adviser. This has been another strong performance great quarter for KKCL. We have delivered double-digit growth on both consolidated and stand-alone basis, a clear statement to the strength of our brands, our focused execution and the resilience of consumer demand in buoyant market environment. Let me walk you through some of the key highlights for the quarter. Consolidated revenue for Q2 FY '26 stood at INR 354 crores, up 14.9% year-on-year, led by strong growth in both April volume and value. Stand-alone revenue grew by around 14% year-on-year to INR 288 crores with solid contributions from both retail and nonretail channels. Apparel volume growth on a consolidated basis was 17.3% year-on-year, highlighting robust consumer demand and improved market penetration. Average relations per unit improved by 22.1% year-on-year, driven by higher full price sales and a richer product mix. This performance underscores the strength of our portfolio and our ability to engage aspirational consumers through trend forward lifestyle-led merchandise. On the profitability, EBITDA came in INR 71 crores, reflecting 11% growth year-on-year. EBITDA margin stood at 20% ahead of our guided range of 17% to 18%. The margin expansion was supported by operating leverage from higher value -- higher volumes, optimized product mix with stronger contributions from Killer, Kraus and Junior Killer and our continued focus on cost efficiency across the value chain. On the expansion front, revenue grew 14% in the retail channel and 15% in non-retail, showcasing healthy growth across format. We added a net 29 exclusive brand outlet EBOs during the quarter, taking our total to 652 stores as of September 30, 2025. This expansion -- these expansions were led by Killer, Lawman and Kraus. Killer alone now open -- operate 437 EBOs, underscoring a dominant brand presence. Our store rollout this quarter focused on Tier 1, particularly malls, Tier 2 and Tier 3 cities aligned with our broader strategy of expanding lifestyle accessibility in underpenetrated markets. Brand movement. We were also encouraged by the positive response to our Spring/Summer 2026 trade show across all major brands, Killer, easies, Kraus, Junior Killer and Integriti, which gives us strong visibility for H2 bookings and reinforced channel confidence. Coming to our outlook and strategy. We welcome the recent decision by the Government of India to reduce GST on selected apparel price point, a move that will enhance affordability and boost demand at the retail level. We see this as a significant tailwind and KKCL is well positioned to benefit. In addition, India's favorable demographic, rising incomes and evolving lifestyle aspirations continue to make it one of the world's most attractive consumptions market. Early indicators for the festive season are also encouraging with positive channel feedback and improved demand outlook supported further by the recent GST changes. With our established and trusted brand and stable retail model, KKCL is well positioned to capitalize on the structural growth opportunities ahead. Our strategic priorities remain focused on deepening our presence across EBOs, national chains and MBOs, expanding our product portfolio and cementing our place as a multi-brand lifestyle powerhouse, catering to India's diverse and dynamic consumer base. We are confident that our disciplined execution, design-led approach and deep consumer connect will drive sustained value creation in the coming quarters. Our vision 2028 road map continue to unfold as planned, balancing scale, profitability and innovations and our results for Q2 and H1 FY '26 are a strong reflecting of its successful execution. With that, I would now like to open the floor for questions.

[Operator Instructions] The first question is from the line of Sucrit D. Patil from Eyesight Fintrade Private Limited.

I have 2 questions, one for Mr. Hemant Jain and one for Mr. Pankaj Jain. So Mr. Hemant Jain, my question to you is, looking ahead, what are the key priorities for scaling KKCL's brand portfolio especially in terms of new categories, regional expansion or youth focused formats, how do you plan to strengthen the brand's visibility and customer engagement over the next 2 years?

[Foreign Language] we are very much focused on the opening of retail outlet. Secondly, we have to connect with the consumers like social media [Foreign Language] so this is what we are -- planned on till 2028 [Foreign Language] so our major focus is on to open the first is the retail store. And now we are doing [Foreign Language] now we are started to opening as a 1,000-plus square feet stores. And we are increasing this [Foreign Language], we are working on that or in future, we are going to launch as a Killer Women's wear. That is what our strategy.

And I believe Mr. Pankaj Jain is also on the call today?

Yes. This is me only.

Yes, sir. So coming back to the same point, as you plan for the next phase of growth, how do you see the entire plan of action taking across -- taking place across Tier 1 and Tier 2 cities? What is the plan that KKCL has going ahead with this?

So, every brand has been planning and their entire brand strategy is different. Killer already under auto phase mode, okay, we have already tried to penetrate the Tier 2 and Tier 3 cities. In fact, we have now started entering the Tier 1 presence there and the metro cities, okay? On the Integriti brand, okay, we have tried to penetrate the value segment, okay? Lawman, we are trying to reposition it as a D2C brand and focus on more Gen-Z, okay? After acquiring Kraus, we have already added a separate brand. So every brand has been categorized differently and adding a separate TAM to it. Last year when we launched Kids also, that also added to a separate TAM to KKCL. So we are now trying to portray Kewal Kiran as a house of brands.

And I wish the entire team Happy Diwali and best of luck for the next Q3.

The next question is from the line of Anuj D, Antique Stock Broking.

Congratulations on a great set of numbers. Just 2 questions from my side. So since the acquisition of Kraus, how is the working capital sort of evolved? And has it now converged with the company's level of efficiency? Or is there more room for improvement in terms of integration and improvement in the working capital side? That's my first question.

Are you going to ask the second question also? Should I answer the first?

My second question is regarding the EBOs store addition guidance. So what is the target for the EBO store expansion? And you had also mentioned that the square foot of expansion that you are looking at is -- is a bit higher than earlier so how does the CapEx per store is...

Anuj, I couldn't get your second question, okay, but I'll answer the first one first, okay? When we acquired Kraus, there was a detailed strategy or planning in terms of how the integration will happen. First was, it was in respect of the margins. Currently, it is, okay -- the EBITDA margins are in line with KKCL, that's one, okay? Growth also has been in line with KKCL, okay? Second priority was regarding the working capital. The working capital, if I see on a quarter-on-quarter basis, okay, the working capital has been reduced, but it has not yet reached the level as what KKCL has reached. I think it should take more 1 or 2 quarters to achieve that level.

Sure, sir. I am just going to rephrase my second question.

The working capital for Kewal Kiran for quarter 2 stands at close to around 132-odd days, whereas for Kraus it stands at 151-odd days.

Sure. That's really helpful for the numbers. So my second question is regarding the store expansion guidance and since we are opening larger stores, how much is our CapEx per store in these larger stores that you're planning to add? If you could share that, that will be great.

The CapEx as well as the OpEx, or the working capital should stand at around INR 4,500 a square feet.

The next question is from the line of Keshav Garg, Counter Cyclical PMS.

I just wanted a clarification. Sir, last time, you mentioned that within 3 years, company had planned to monetize the current corporate office of 5.5 lakh square feet in Goregaon. So are we on track to do that and have some more clarity emerged on that? And sir, 5.5 lakh square feet is the total land that is there or 5.5 lakh square feet is the total built-up area that is there?

The 5.5 lakhs is the completely built-up area, it's not the land.

[Foreign Language]

[Foreign Language] Approximate 7,200 or 7,500-odd figures. So that's the land size. But in -- when we multiple into the [Foreign Language] So we built around 5.5 [Foreign Language] 5.5 lakh square feet. Secondly, [Foreign Language]

[Foreign Language]

[Foreign Language] It's too early to say anything now.

[Foreign Language] multiple brand strategies [Foreign Language]?

[Foreign Language] Killer still today is a flagship brand of Kewal Kiran [Foreign Language]

[Foreign Language]

[Foreign Language] Company owned. [Foreign Language] all registered under Kewal Kiran Clothing Limited.

[Foreign Language]

[Foreign Language]

Next question is from the line of Naveen Baid from Nuvama Asset Management.

Sir, what is the channel mix that we are targeting over the next couple of years? Or cross channels, retail or nonretail, what is the margin differential? So this is my first question. The other question is across brands, if you could just highlight and categories also as to what is the margin differential?

The retail as well as nonretail this quarter, both have grown close to 15%. On the composite mix on the EBITDA, okay, almost it contributes similar also.

[Foreign Language] going forward, mix same [Foreign Language] retail or non-retail over the next couple of years?

Right now, it's 54-46. I think going forward also, it's going to remain similar.

My next question was on the margin differential across brands.

We generally don't comment on the margins...

Just some color, which are the brands, which are premium brands and where the margin is higher than the other brands?

Okay. On the overall business, I can just tell you is that okay, Killer contributes the highest and where the margins would also be the highest.

Okay. Okay. Got it. Sir, just one more question, if I can squeeze in. So [Foreign Language] stores. So typically, in the first year, if you were to compare that particular store with a mature store, [Foreign Language] what is the revenue that you're able to generate if your mature store is doing, let's say, INR 5 crores per year, then first year, [Foreign Language] roughly?

[Foreign Language] so our growth is 9%.

Okay. My question was [Foreign Language], for a similar size store, typically first year revenue will be obviously not INR 8 crores. So what revenue would that be?

[Foreign Language] 85% to 90% business operated with the FOFO model. [Foreign Language] first the revenue should be 12% and next year is the 18% and the 24% [Foreign Language]

So ROI metrics are [Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

The next question is from the line of Pavan Kumar from Ratna Traya Capital.

Sir, first of all, [Foreign Language] is it because of [Foreign Language] or going forward [Foreign Language] you seem to be saying it is contributing now [Foreign Language]. And one final comment, sir, [Foreign Language]

I beg to differ that Kraus has not been growing. In fact, it has grown by 20% for this quarter.

[Foreign Language] consolidated or stand-alone [Foreign Language] is there any other way, Pankaj?

On a stand-alone basis, we have grown by close to around 14%, and the Kraus has grown by 20%.

Okay. [Foreign Language]

[Foreign Language]

Going forward, is the expectation [Foreign Language]

[Foreign Language]

At a consolidated level, [Foreign Language]

[Foreign Language]

And sir, any comments on the Junior Killer we have, I think there are 2 seasons have been over. So [indiscernible]

So we have started finding an traction, okay, especially on the same-store perspective, the number of counters have been increasing. Absolute number is very low to comment on, okay? But okay, it has been growing at a faster pace.

[Foreign Language] you would have different stores for different brands. How do you look at that overall?

Right now, the strategy is separate for each individual brand, but we are formulating a strategy okay, of what we have said.

And Pankaj, what is the plan on metros and Tier 1 [indiscernible]

Okay. We're penetrating that, okay, we have also started our own D2C website for Kraus as well as Killer, okay? Where the numbers are coming attraction from the metro centric cities only.

So we have started this now and we are focusing?

Yes.

The next question is from the line of Ashutosh Joytiraditya from ICICI Securities.

I have 2 questions. One is on -- so how has been the festive demand in like last 15 days for October. If you can give some idea on that, that would be really helpful. And second thing is that what is your strategy to scale up the value -- value brands in different tier of cities given there is already a lot of competition. So what would be the differentiating factor, will the management would take to grow the value brands?

Okay. So the Integriti falls under the value brand perspective, we are trying to penetrate the modern trade channel there, okay? The first 6 months for us was just okay, transition period. I feel that, okay, the next 6 months will be very attractive, because we have started getting the counters and the numbers look good on those counters also.

I just wanted to check how has been the demand for first 15 days, the festive demand, especially just before the Diwali buying and all those things?

Positive [Foreign Language]. But averagely business -- market sentiment is very positive. [Foreign Language]

The next question is from the line of Pramod Dangi from Unifi Investment Management LLP.

First of all, congratulations. And first question is on the regional mix changes. See, we are -- we have a larger share in the north and eastern part of the country. So with our EBO, are we targeting changing the mix. And with the Kraus, obviously, we have South also now. So any meaningful change which we are seeing in the -- our regional mix for the Tier 1, Tier 2 mix kind of thing?

So, yes, I would definitely agree that our presence is higher in the East because in most of the channels, we have already penetrated or in the East in all the channels of sales. Our focus is primarily now, okay, West and North in terms of retail EBOs. So we are capturing 1 zone at a time trying to penetrate and capture it very well so that, okay, you can have entire focus on 1 zone.

Okay. So it's not like that we are opening more of the EBOs in Western part where we already have the MBOs rather we are opening in the newer zone or near region?

See, that's under out-of-phase mode, okay, that is already happening, okay? There's not much of effort structure. Efforts are right now going in, okay, strengthening, the northern as well as the western zone.

Okay. Okay. And can you quantify in terms of 3 years back and today, is there any change happened in the product, the revenue mix, excluding Kraus, obviously, because Kraus will impact the numbers, so.

I'll have to get back to you on this. You can take it...

[Foreign Language] since I think GST has been reduced [Foreign Language], how we will tackle the GST and how it will impact? And second is, this year winter is expected to be good. So any thought on the seasonal demand from the winter?

[Foreign Language] More than INR 2,500 [Foreign Language] so it is very first season for us also, [Foreign Language], we don't know. [Foreign Language] because it's a compulsory below INR 2,000 [Foreign Language]

We will also get to know what the competitor is also doing.

Okay. Okay. Okay. And how the winter -- winter wear's demand -- I'm sure it would have started for the northern part, right?

It's too early [Foreign Language] numbers are still yet to come.

Pramod Ji, just to add up, okay. I feel that in case, okay, if we do not increase the price and maybe the competition increase the price, I feel that, the fresh sell-through percentage will increase.

Next question is from the line of Naitik from NV Alpha Fund.

My first question is, can you give us bifurcation of how much of our revenue comes from EBOs, how much from MBOs, how much from LFS, et cetera?

We give generally bifurcation of retail to nonretail, which right now, the contribution is 55-45.

55 is non-retail, right?

55 is retail.

Retail, got it. Got it. And sir, we are going to roughly add, say, 250-odd EBOs. So just wanted to understand, is the mix of new EBOs opening also going to remain the same, like majority of them are going to be FOFO and remaining are going to be COCO?

Yes, that's the strategy. Excluding for Kraus, where it's co-driven.

Sorry, I didn't get your last point, sir.

Including for Kraus, which is more COCO-driven stores.

Next question is from the line of Pritesh from Lucky Investment Managers.

Sir, my question is on Kewal Kiran and stand-alone. So if you look at our 2-year CAGR. So obviously, last year, you had a challenge with respect to the just-in-time. So if I look at a 2-year CAGR, 2-year CAGR in the Kewal Kiran portfolio is about 4.5%. This is way different from what typically you have grown at a double-digit rate. So if you could highlight any insights here and just not look at 1 year, because if you look at a 2-year number also, you can just share some highlights if any on this single-digit number, it would be very helpful, highlights whether there are any challenges or any other thing that we need to understand for this 4.5% growth and how do you see the Kewal Kiran stand-alone portfolio emerging over the next maybe 4 to 6 quarters?

I definitely would agree what numbers you are saying -- all the numbers you are saying on, okay? But okay, the placement what you had lost takes time to again grab back or the market share. So I feel going forward, we have tried and been able to achieve it within a year itself. So going forward, the CAGR should stay into double digits, and the growth should also stay in double digits, okay? The strategy for Kewal Kiran as well as Kraus is different and the market responds differently also. So I would say that, okay, you look at the consol number as compared to a standalone number.

That we are looking but just as further analysis we have to do because 80% of your revenue is still your original Kewal Kiran portfolio?

It's a house of brands, okay? But I'm definitely saying both will grow above double digits.

You didn't still answer if, we didn't understand why, first of all, ended up growing single digit on a 2 year CAGR, if you could just tell that is there any challenge within that in a particular brand. And I didn't understand that you lost placement if you could just share. Is it that you lost some counters or lost some distributor, if you could just share something?

See that entire Kewal Kiran was under transition mode. We were trying one on a real-time basis on the inventory, okay? If Lawman as a brand, we have to restrategize ourselves, and okay, we started concentrating only on retail from a format structure. Integriti was having a problem in terms of placement structure. So we started to target it on a value segment. And everything has now started to channelize back. The past, can be looked as a number, but we have seen that, okay, we have re-strategized and I think the future looks exciting for us because, okay, all the strategies we have placed have now started to get executed.

So the double digit CAGR in Kewal Kiran is not far away, right? It will emerge in maybe a quarter down the line or it is slightly far away in your opinion?

Not in the long run, okay. You'll see it the numbers from next 2 quarters itself.

Next question is from the line of Jayshree Bajaj from Trinetra Asset Managers.

We performed a good number this quarter and half yearly. But still our PAT is impacted. For H1 FY '26 it is INR 20.7 crores, earlier in H1 FY '25, it was INR 45.1 crores. So it was just onetime gains or it's because of nonrecurring items, the reduces?

It was one time gain.

Okay. That was one time. And what is the sustainable run rate for the other income based on current treasury and the investment...

The other income will stay in the range of INR 30 crores.

Okay. And my second question is, as we can see, many companies are integrating AI in their systems to reach the customers and follow the trends. So what we are planning to integrate AI to take the leverage of AI?

So, we have also started it. We have started in from the supply chain perspective, okay? We are trying to implement in the design execution part and more on the analytics part, okay?

Next question is from the line of Palash Kawale from Nuvama Wealth.

Sir, my question is on Killer Junior. Now that enough, like there has been some time after the launch of the brand. How is the response? And what are your understandings, what are your learnings from the brand? And how do you see it growing going forward?

[Foreign Language]. And there's 2 seasons we are already compensated and we are in the third season. So [Foreign Language]

Next question is from the line of Harsh Dubey from LFC Securities.

I was asking [Foreign Language]

Normally, [Foreign Language]. So as we said, okay, most of the stores are FOFO stores, and we work more on an ROI basis perspective, where we see that the first year return should be around 10% to 15%, second year should be 18%, and going forward should be around 24%. So generally, if you remove the payback period, it should be around 3, 3.5 years.

Okay. Okay. So 3 to 3.5 years [Foreign Language]

Put together, all the brands [Foreign Language]

Next question is from the line of Ankit Kedia from PhillipCapital.

Sir, typically in quarter 2, there are a lot of primary selling because East is a big market for you has said. So just wanted to know how was Navratri this time for you in the East market because there was a lot of rainfall in those markets as well?

Numbers were good, Ankit, not a problem. If you look at the current SSG numbers also, the SSG for the quarter was around 9%.

Sure. And from the MBO placement perspective, how has been the buying and in which brand are you seeing more traction from the MBOs?

From multi-brand outlets, I think, okay, on all the channel mix, Killer contributes the highest there.

So placements, we are not worried currently, the placements have happened in the market?

Placements are already there in the market. So I said, okay, the strategy for Lawman is more EBO driven. It is only Integriti and Killer, which is more MBO-driven as well as Junior Killer.

Sure. And sir, on the margins perspective, are you confident to deliver that 18%, 19% guidance for the full year?

We feel 17% to 18% is achievable.

The next question is from the line of Lakshminarayanan from Tunga Investments.

I just want to understand what is your full price sales across the womenswear and menswear. How that's changed in the last -- when compared to the last year?

[Foreign Language]

Okay. Sir, and we closed FY '25 at a recently high inventory and we had a -- for the first time, I think our cash flows are actually a little declined. So how are you thinking about this complete year? What kind of inventory levels do you like to maintain? Because I understand that the womenswear maybe require a little higher inventory level?

Inventory will be the same, [Foreign Language]

Sir, expansion happens by volume growth or maybe price growth as well as distribution growth rate? I mean, how many MBOs, you actually have, now in the last 6 months, how you have actually increased your reach? And are you able to increase the reach in terms of yours EBOs or MBOs and others?

So we have been able to achieve on all the 3 fronts, okay, on the quantity as well as value as well as the distribution.

Okay. Any number you can give in terms of distribution, how much you have actually increased, either the number of your direct distributors or the end points that the customers can actually buy the quantity from?

On the channel sales, I'll say there's an overall number, okay. So retail has grown by 14%, and the nonretail has grown by 15%. And the absolute margins also are similar on both the fronts.

Okay. One last question in terms of our e-commerce-driven sales, how they have actually expanded sir, is it actually growing at much higher than the company's average? Or can you just help me understand that part?

Similar to what Kewal Kiran is growing at.

Okay. Okay. Okay. And any price increases we are actually planning to effect or you...

Sorry, price?

Price increases across the portfolio, any specific...

We have not yet planned that strategy. For the current quarter as the government required to decrease the price or pass on the GST benefit, we have done that. We have not increased the price for the proportionate stocks, which were above that price bracket, okay. Going forward, we are still strategizing on whether we'll be having a price increment or not.

And any inventory price corrections you have to take because of this inventory in the system and the GST disturbance?

As required by mandatory requirement was there, we have already done that.

Okay. Okay. And what is the impact, sir?

The impact for Kewal Kiran was neutral.

The next question is from the line of Harsha from Bandhan AMC.

Sir, in your vision FY '28 slide -- so I'm saying in FY '28 -- Vision FY '28 slide, the discovering new horizons, we have mapped out various categories, right, denims, semiformal, ethnic, and you've mentioned that categories in which you were present, where you have pivoted and where there's a vacuum, right? Is it fair to understand that there's like Kraus, let's say, if we look at acquisitions in the future, we would look at more in that category where there's a vacuum or, let's say, even where do you want to pivot, is there you want to look at any acquisitions there?

We are not discouraging on any of the channels. So even if it's a competitive brand, I'd still like to explore it. I can still have operational synergies there. So definitely, okay, adding a separate TAM would be better off. But I'm not discouraging to the idea that even if it's a competitive brand.

Okay. Okay. Okay. Got it. And this target of FY '28 of INR 1,500 crores when you kind of -- is that largely organic or that would have to include some element of...

It is only organic.

Okay. Got it. And any views on -- we have discussed this in the past calls as well, but any views -- any views which we have formed, let's say, on the factory building, which we have, which basically was supposed to be, any views there, whether we are in talks to kind of sell it off, develop, et cetera, et cetera? Any views there?

No, not yet, Harsh. Nothing planned yet on that.

And by when would our -- I mean, what would be the CapEx for this new office building? And by when would that be ready?

Our entire requirement right now after the land, requirement would be close to around INR 90 crores, and it will be required in 3 years period.

Okay. Okay. So that office will be ready after 3 years, basically.

The next question is from the line of Sahil Doshi from Thinqwise.

Just firstly, just one clarification on the employee cost. So we've seen a 20% kind of an increase in this quarter. And even in stand-alone, we've seen an 18% kind of an increase. Just broadly want to understand is there any onetime here? Or how should we think about the sustainable number here?

It's mainly because of the cost because we have tried to explore other channels of sales so the team is getting built up.

Okay. Even in the stand-alone, I actually see almost a large increase there, 18% kind of an increase compared to the past, so?

Okay. It's also because of a higher production during the quarter. The factory expenses are also built in the employee expenses.

Okay. Okay. So this INR 33 crore number which we see per quarter in the standalone, is this a sustainable number? Or there is some variable element in this?

Little bit variable, there should be semi-variable here.

Okay. Understood, sir. Second on the mix, if I see this quarter, we've seen others decline 32%, possibly, I understand there could be some impact because of the GST thing. Could you give your thoughts here? And consequently, we haven't seen an improvement in gross margin because your mix has got favorable. Your bottomwear, which is denim plus trouser both mixes same in that sense. So could you just talk about why the decline in others and...

It is mainly because of accessories as a category, okay? And there, the price bracket varies. So absolute number or the absolute turnover has increased in that category also, just a quantity mix.

Value wise, there is a 32% decline, INR 30 crores to INR 35 crores.

Volume, there is no decrease. It's a quantity decrease.

Okay. Okay. I'll clarify this later. But just I'm just saying, if the mix changes happen on the gross margin, we're not seeing any benefit here. Incrementally, how should I think about gross margins, meaning the band of 42% to 45%, we used to say, should we -- where are we in that journey? And how do we try and pivot towards improving this?

I just went through the numbers. What you're saying is absolutely right, and the absolute number has fallen down. It is majorly because of the winter mix. So where winter mix has been pushed maybe, okay, last year, it was more driven towards quarter 2, okay, this time, it should be around quarter 3.

Okay. [Foreign Language]

I would not term it as favorable or unfavorable category, okay, the mix should almost remain similar unless there is a heavy discounting happening in that category.

Okay. Okay. Okay. So this last quarter, you said basically the decline was possibly because of higher discounting...

This could be in the case of quarter 3 also. So it just got pushed away to quarter 3 as compared to quarter 2.

Okay. Okay. Okay. And just if we've seen that in the H1, we had a benefit of -- benefit or we were coming out of the inventory correction issue, and that's why the growth number seems decent. Incrementally, how should we think about it? And also, is the inventory correction largely done now and you said the market share is heavy, the placement in all the counters is it complete? Or how is it?

Yes. You can still look at that, okay, the inventory level should stay stable here, okay? And we'll do that double-digit growth ahead also on the same inventory cycle.

Understood. Understood. And just lastly, if I see stand-alone working capital days, the inventory level is around 87 days. I understand Y-o-Y is not comparable but from the past levels also, this seems a little higher. So is there some change here in terms of strategy? Or is it because of EBO mix or something of that sort?

As I said, okay, in terms of other categories, okay, winter has shifted to a quarter 3 scenario, and that's the reason it has gone up. I think whatever the inventory cycle is there right now, it should stay at this current level.

Sir, in the past, you have spoken of an aspiration growth [Foreign Language]. And now we are suggesting that it could be close to double digits, but not that high double digit. Is that understanding correct? [Foreign Language] kind of toning down of what we had earlier anticipated?

Aspiration stays the same.

Okay. But a more realistic number to work would be a double-digit number?

Should be a double-digit number.

Ladies and gentlemen. We take that as the last question for the day. I now hand over the conference over to Mr. Hemant Jain for the closing comments. Over to you, sir.

Thank you once again for joining us today. We truly value your continued support and confidence in KKCL's journey. Should you have any further questions, please feel free to reach out to our Investor Relations team. Thank you, and have a great day, and Happy Diwali.

On behalf of Kewal Kiran Clothing Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.