Yes Videesha. Ms. Videesha Sheth Hi. This is Videesha Sheth from Ambit Capital. To begin with, can you double down on the initiatives that you talked about on the product portfolio in the offline channel? You did touch upon depth, focusing on depth versus width, but if you could elaborate on this as to whether the initiatives would be towards focused assortment, or tighter pricing, or what is it that you're thinking about over here, please? Mr. Supam Maheshwari Videesha, yes, this will be focused on the product realignment. It w ill be around, sort of focusing on width, which allows us to have more leeway in margins and able to offer better prices to customers as well, without any material dent in our gross margin. This enables us to address more range of customers than today. We will attract more footfalls, more conversions, and also further lead to more online volumes. So, all of this will be enabling us from a multi- channel view. That is what our thought process is. We have done some experimentation, but the whole change will be actually applicable somewhere around H1’FY27. Ms. Videesha Sheth Sorry, Supam. So, just to clarify, offering a wider assortment would be a part of this? Mr. Supam Maheshwari It will be wide enough, let me put it that way. Today we have very wide, we want to make it adequately wide. And increase more depth to be able to get the leverage on economies of scale, to be able to have the m ore latitude on margins, to be able to get that extra set of customers who we are maybe losing out. And making ourselves to be a more destination play, as we have been in the past. So this will make us even bigger destination for mothers, baby, and kids, across all sort of price segments. As you know, both as an omni -channel player, both in our home brands, as well as in our third -party brand partners, we have products across price ranges. So we anyway cater to all kinds of price segments, but this latitude will also help. In offline, obviously you can't, the variety has to be slightly limited, you can't keep such a wide assortment, or such a wide price laddering , as what you can keep it online. But we are just realigning that a little bit o n the offline front as well, so to be able to make , footfall and conversion to further improve for where we stand, is a change that we will be making without compromising any material sort of gross margin loss for us as a business. Hope that answers. Ms. Videesha Sheth Okay, so if you've done any, like you said it's been rolled out in certain stores, so if you could talk about how is the growth profile improved over there? Mr. Supam Maheshwari Look, it's a very early, only a few stores that we have done, so you can't do it at that level. Ms. Videesha Sheth Sure, sure. Mr. Supam Maheshwari Yeah, so therefore, it has to be done at a scale. But we are very confident that it will work out, and it'll actually deliver us the yield that what we are anticipating. So, we are ver y, very confident. That approach compounded with our faster delivery and incre ase in our marketing spend will drive the overall growth for the business in the India multi-channel. This is what we believe is something that we'll definitely accomplish, because we have had issues around delivery, which we have talked about last time, and as you have seen our progress, that instead of 4 cities, in less than a matter of 7 months, we expanded from 0 to 4, and now 4 to 1 2 cities, and we will continue to expand on a monthly basis. And our endeavor will be by mid -next year, we'll be able to take it to almost 50% of our business. And with that, increasing marketing spend will mean more retention of customers, new customers, and more retention of those customers driving the growth. So I think our whole ambition is to drive growth. And obviously, our gross margins and some of those things are structurally well-placed to continue to increase over a period of time.

Got it. Sure, I'll get back in the queue. Thank you for this. Mr. Anish Arora Thank you, Videesha. Next question is from Mr. Rohit Mundra. Rohit, please unmute yourself Hi. Namaste sir. Sir mai shareholder hoon. Ek suggestion tha. Jaise aapke store mai bhi mai gya hoon, mai Miniclub mai bhi gya hoon, unhone koi foreign brand ke saath tie -up kiya hai, toh wahan cloth ki quality na bahut ache hai. Toh aapke paas area ka kami toh hai nhi, aapke paas bhi store hai, aap bhi tie- up kar skte hai. Usse aap premium customer ko tap krenge toh baaki bhi na sale increase hone ke chances hai. Bass ye ek suggestion tha. Aap Miniclub mai ek baar jaakar dekhiye, wahan kaise unhone kisi foreign brand ke saath tie up kiya hai kisi, toh wahan cloth ki range na badh gyi hai, toh apan bhi as a company kuch kar skte hai aisa. Bass ek suggestion tha.

Sure, Rohit. Alright. Thank you

Thank you. Usse aap premium customer ko phir cater kar skte hai, matlab phir dheere dheere na, jo premium khareedne aayega, wo normal bhi khareed lega, toh dono ka improvement hoskta hai use.

Sure, Rohit. Thank you

Ok. Thank you. Mr. Anish Arora Thank you, Rohit. Next question is from Mr. Jay. Jay, please unmute yourself. Mr. Jay Laddha So, yeah, I'm audible?

Yes.

Yeah Jay. We can hear you. Mr. Jay Laddha Hello. A very good evening, Supam, sir. So, myself, Jay Laddha, I'm from JL Capital. Actually, I am super bullish on this baby care sector a nd as we know, we are only player in an organized sector, and the totally market is unorganized. So, how we are going to penetrate ourselves in this market? And what's our strategy for this?

So, Jay, you're right on one front that 84% of the market is unorganized. It's a massive market. We almost have 25 million babies born, almost , between 0 to 12, you have 300 million children across the country. We are the largest multi-channel mothers, baby, and kids platform, having around 1,100 plus stores and a significant online playbook. As a part of our strategy, we will continue to increase our store footprint, make our products more relevant, be abl e to address customer audience, through different tiering, and product tiering as well. From an offline perspective, get those customers from offline to online and a lot of our customers go from online to offline. In our online, we'll continue to invest behind a delivery experience that has been our pain point for the last couple of quarters, that we have started to improve materially. And plus, we are continuing to invest around technology and personalization , to be able to find relevance across different segments of socio-demographic, econ omic- demographic, and therefore be able to expand that. And then there are several initiatives around building connect programs with mothers, baby, and kids, whether through our schools, where they can enroll their kids and be a partner in that education journey. Or through our hospital initiative program, where we connect with them at the time of delivery. And a lot of other influencer programs that we do. I n the mothers, baby and kid space, we run the largest influencer program in the country, through which we will connect. So, I think it's a whole ecosystem of digitally, physically, within the shopping, outside shopping in education, that we are trying to stitch together to remain on top of the mind, as a choice, both from a retail platform as well as a brand and product platform. Brand and product , both is what we are endeavoring to deliver and build long -term partnership, and build joy of parenting to the young parents. So that has been our journey, and we'll continue to pedal down across all o f these facets that I described, to be able to capture more, and build penetration and capture more and more wallet share of those customers, from an offline and online perspective. So, in a very short way, I've tried to explain this, but each facet has a very detailed sort of overview of how we're going to do it. And we're going to continue to innovate on that to be able to drive relevance and effectiveness, while building our KPIs from top line and bottom line, from a shareholder perspective. Mr. Jay Yeah, so thank you for the opportunity. I'm super b ullish on this baby-care sector. And all the best for ahead.

Thank you, Jay.

Thank you. Next question is from Mr. Vraj Shah. Mr. Vraj Shah Hello? Mr. Anish Arora Yes sir, you are audible. Yeah. Hi Sir, this is Vraj from Satwik Digital Analytics. My question is with regards to India multi-channel business. So as you have rolled out the faster deliveries from 4 cities to 13 cities, so my question is th at what is the growth profile that you are seeing in terms of GMV, or Revenue, if you can share some light there? In comparison to the other cities , for India multi-channel?

Vraj, its significantly higher growth compared to the o ther cities where we do not have our own delivery network as of today. It's significantly higher. As I explained on the last call as well, the reason, the rational for doing and building our own sort of a network – it will yield us a better control on customer experience, reducing RTOs, reducing returns , improving customer experience. All of that will yield, at the end of the day, a superior customer experience and a repeat. And our particular category is a high repeat category, and therefore will enable us to drive growth, as we acquire more customers, building that cohort. So, we remain extremely, sort of bullish on expanding our network, and then driving more marketing on top of it, to be able to accelerate our overall growth. Mr. Vraj Shah Understood, sir. And sir, if you can share, like what percentage of a total GMV that can be coming from this 13 or 4 cities that you have rolled out faster deliveries.

Broadly around, in the last 6 to 7 months, from 0% to almost we have covered 20% of the shipment a nd by middle of next year, we'll cross 50% of the shipments. Mr. Vraj Shah Alright, so understood. Sir, my second question is with regards to the gross margin. So, in India multi-channel business, i s there any increase in the share of home brands, in total revenues?

So, Vraj, we have talked about the gross margin improvement levers in previous calls as well. More or less the gross margin expansion levers remain same, which includes increase in the mix of home brands, increase in fashion mix and continuous improvement in margins with third -party brands w ith continuous negotiations. So all these factors put together led to an increase in margins. And it remains more or less same, every quarter and every year.

Okay, so, sir, my question was more towards the number that you had said for FY25, which was 55% contribution Mr. Gautam Sharma It's continuously increasing, Vraj. Yes.

Ok, understood sir. Thank you Mr. Anish Arora Thank you, Vraj. Next question is from Ashok. Mr. Ashok, please unmute yourself. Mr. Ashok Yeah, Hi. Thanks team. Gautam, Supam, thanks and congratulations for the results. I have a couple of questions. One, so your gross margin in India business has declined, but EBITDA is increasing continuously. Basically, what line items are leading to this improvement? Question number o ne. Question number 2 is on the International business, what are the improvement areas in the International business in terms of EBITDA and by when we'll reach our break -in stage? T hird one, do we have any impact of quick commerce on our business? Mr. Gautam Sharma So, Ashok, on the first point, your question was, despite of a dip in the gros s margin, we were still able to improve the EBITDA. So, first of all, gross margin dip is a one-off thing, which is a result of giving away higher discounts, t o dri ve better conversions after the GST 2 was announced from mid- August. And gross margins post -festive season is back on track. However, despite of over 30 bps reduction in the gross margin, we were still able to improve the EBITDA by almost 50 bps, is a combination of efficiency in marketing spends, as well as driving efficiencies in SG&A as well.

And on the second one, Abhinav you want to take that, or do you want us to?

Yeah, so Ashok, Hi. So your question was around the gross margin expansion, correct, for International?

Yeah, gross margin and EBITDA, where it is headed.

Yeah. So, yeah, I'll answer the gross margin first. It's along the similar lines. It's a function of, how we optimize our top line, and the catego ry mix and the home brand share , progressively improving the home brand share, progressively also improving the mix of the categories that we operate in. And essentially a very, very strong fo cus on what rolls up to the topline, while the topline expands. That is very, very key to the gross margin expa nsion. That's point number one on the EBITDA. Obviously, gross margin play, it starts there. B ut there are multiple other cost heads. KSA, and I would say even UAE, are fairly new businesses. UAE being about 5 years, and KSA in the third y ear. So with scale, we will see the opportunities for efficiencies kicking in, in all the line items. Optimizations and marketing, for sure, has been done by us. We've mentioned in previous calls , we mentioned earlier in this call as well, and again, that our focus is on acquiring quality customers. W hile there are strong headwinds for increased rates in CPCs , CACs and CPMs. We fundamentally believe that acquiring the right customer, with as minimal cash burn, while expanding top line and improving retention of the acquired customers, will help us with the EBITDA improvements, so that's one. Second is the operating leverage, you'll get those operating leverages in the SG&A as you scale. And there's a lot of headroom. We are a young business There's a lot of headroom to grow and improve on efficiencies for all cost line items.

Just to add Ashok, in fact, during our March earnings call, we have talked about the levers which will expand gross margins in International business, which are pretty similar to what has led to a gross margin expansion in India also. So it's the same playbook that we have taken in Middle East. And in fact, we have also shown, where did we stand in terms of gross margin in India business for the first 7 years, the same gross margin, we have achieved in Middle East within 4 years. India business became profitable in 10 years a nd given the gross margin journey in Middle East, we believe that we should be profitable, much faster than we became in India. You can see the testimony to it is the losses have considerably gone down. It's a reduction of 52% in Q2 and almost 40% in H1. And the losses that we have reduced, from FY23 to FY25, a similar reduction is observed i n 6 months itself. And that's the guidance we can give, Ashok.

So, Ashok, I'll take a third question on the quick commerce. We have mentioned, we have communicated in previous calls as well, that our overlap with Quick Commerce remains small. So, exposure is fairly small. However, the quick commerce has led to an increase in consumer expectation when it come s to on-time delivery and faster delivery of goods being shipped online. And in order to meet those increased expectation is why we have been expanding our initiative around faster delivery. Where Supam has mentioned that we have expanded to 13 cities, from 4 cities over 7 months. Mr. Ashok Okay, thanks. Thanks, team, for clarifying, and all the best for future. Mr. Gautam Sharma Thanks Mr. Anish Arora Thank you, Ashok. Next question is from Sheela. Sheela, please unmute yourself. Ms. Sheela Rathi Yeah. Thanks for taking my questions. So my first question, again, is on faster delivery. Just want to understand, I mean now we have expanded into 13 cities, what kind of portfolio, what part of our portfolio is actually doing well on the faster delivery side? So that's the first part of my question on faster delivery. There's a second part to it, but I'll wait for your response before asking that question. Mr. Supam Maheshwari Sheela, what do you mean by when you say, portfolio? Yeah. Yeah Supam, so what I mean is, is it diapering which is doing well, or apparel, which is doing better there? I mean, that's the kind of question I have. Mr. Supam Maheshwari Sure, okay. So, look, it's a total mix. We are taking city by city, it's not, we are not sayi ng that in that particular city, we will only do certain goods, or hard goods, or apparel or fashion or diapering. When we are taking a cit y, we are building that network. In a city , you have to build a network, w here the source can com e from various different cities, we have warehouses in different cities. Obviously, we'll try to have the first allocation within the same city , so that we don't have to work, I mean, the logistics cost reduces as the network design becomes superior. But having said that, we are delivering all products. I mean, whether it is, our consumables, whether it is hard goods or whether it is fashion, f or the cities that we are mentioning. Especially where we have built a network where we can do the first mile and mid -mile as well. I hope I'm able to answer, so, as o ver time, as the network wil l become more and more stronger, with that, we'll be able to do a large part of that city, as we go along. And build more cities in the network itself. It's that the wh ole logistics is a network game and doing it for ourselves, we are cu stom- tailoring it in a way that i t suits our requirement the most, keeping young parents in mind, in terms of meeting those standards, which we can't rely on as much as we can rely on our own sort of a network. So that's the idea. So covering all product portfolios. Ms. Sheela Rathi Understood. I mean, the follow-up which I have is the current proposition, which we have in terms of delivery, c an it meet our requirement to be profitable in this channel? I think that's where I am getting to. Mr. Supam Maheshwari Okay, so look, we did share this in the last, or maybe last call itself that this is not coming at a sort of a huge sort of incremental cost. Yes, in the short term, there might be some bps change, but on a medium term, we will be as competitive or as cost-effective as we have been working with in the past with the third -party logistics. So it's not going to be denting our unit economics in a material way , is all what we can say, while improving the customer experience in a very, very dramatic way.

Supam, as we are on the conversation of e-commerce. Do you have any updated thoughts on selling on third -party e - commerce channels? The BabyHug products, or any of your own brand products? Mr. Supam Maheshwari Sheela, we remain glued to building our own network, our own ecosystem, as what we have seen. And, we would like building cohorts on our own platform, for both, from a window of being the largest multi -channel retailer as well as the product brand for which the customer will come back and shop with us through our multiple home brands and that has been our strategy for a long, long period of time. We had the similar questions around 2015 - 2016, we debated internally, we remained focused on that strategy. While as of today, we continue to remain on that path. However, we are analyzing, and we are thinking through that more closely. We haven't changed our mind yet. But, it's something that we'll continue to observe. There are other channels who may be better in certain things, because they're solving for a customer experience of, let's say, 10 minutes or a 15 minute. But so far, we haven't seen , as we said, those do not overlap so much with our business. So, I think we will retain our original strategy for now, unless anything dramatically changes, which we don't think it'll change over the foreseeable future. So, we will continue to be a dominant force, both as a shopping destination, online and offline, and also as a brand and product destination, o r I would say preferred choice of customers from a brand and product perspective, driving back both cohort onto our platform. So I hope I've answered that, no change in strategy. Ms. Sheela Rathi Understood. My final question is, now given that the first half is behind us, h ow should we think about the full year F26 growth? On the revenue front for both India Multichannel and International? Mr. Supam Maheshwari So for India Multichannel, I think Vivek did mention this . Sequentially, we will certainly grow higher than what we have done. Q2 was higher than Q1. Q3 and Q4 , which is H2 will be higher than H1 for s ure, is what we believe. Even d uring festive and post -festive season have been very good for us. And we believe that should continue, and given our inputs that we are putting, through increase d marketing efforts on back-of better customer experience through delivery and our overall focus around, overall technology, personalization, sorting frameworks and so and so forth, should continue to drive us the cost efficiency while being able to m ake that spend happen on marketing to maintain our unit economics intact, but delivering higher growth, is what you should be seeing from us, for the H2 of FY26. That's for India. And for International, I think Abhinav did mention, we will have a similar sort of a journey. Our focus is sustainable growth in the Middle East. A nd we heard this as a feedback when we ca me, we had a different playbook that we had in mind when we started our Middle East playbook. H owever, after entering in to the public markets, we heard that the public market viewpoint as well. And we changed track to be able to build a sustainable growth track to bring first our unit economics in place, by getting the product mix, both category mix and the home brand mix, to be able to align, a faster, superior unit economics. And once you have done that, we will be able to accelerate the pedal around marketing to be able to drive even further gr owth, but the burn will remain very, it'll shrink faster. That's what we had all desired for, s o we are walking down that path, as what we had promised, and I think we are delivering that . So you should continue to see that happening over the next few quarters including FY26 H2, as well as in FY27.

Just to follow up here, and that's my last thing . Last quarter, you called out that the India multi -channel revenue growth will be early teens in F26. Do you hold on to that view, or it's going to be better than that? Mr. Supam Maheshwari We definitely believe that we should be somewhere there . Hopefully better than what we have said. There are signs. But we were caught off -guard when we said in the middle of August, the first half of the second quarter, we were in early teens, because of GST, which Vivek covered, we did not see that anti cipated growth . I mean, whil e we grew on a GMV basis around 12%, however, we had to increase discount, ensuring that the customers don't defer their purchases. Although we are not seeing that now, during a little b it of a festive season, we were seeing a little bit of a heated approach. However, it has normalized . From a gross margin window, we are back on track. While the growth continues, we believe it should continue the same way for the remainder of the fiscal year, even in FY27, b acked with all of the inp uts that we are putting through, s o we should be back on track, what we had promised earlier in our previous earnings call. Hopefully, we'll surprise, but I don't want to commit on that, or superior than that for now. But all w e can say, as a management team, w e are fully geared to deliver growth. While we have been a ble to expand our gross margins, and our EBITDA on almost on a recurring basis, since we have been sharing our results publicly. But we believe that all the inputs that we are taking, should continue to expand and deliver the growth, that we all, because we are , as a team, we are not very happy with the growth that we have delivered so far. And there is a lot more that we can deliver, we know for a fact. And we believe that we will definitel y be able to deliver that growth with all the inputs that we have talked a bout with incremental marketing. So, we remain very bullish, hoping to sort of demonstrate that and walk the talk. Once it happe ns, we will be happy to thump it, on our next earnings call, or next to next earnings call. So, sequentially, you shou ld be able to see better growths. Mr. Anish Arora Thank you, Sheela. The next question is from Mr. Sanjay. Sanjay, please unmute yourself. Yeah, thanks for giving me the opportunity. I have one question. This Globalbees, now, is there any strategy for increasing, like how customers are coming to know that there exists a platform, Globalbees and the re are so many wonderful brands . Because I have asked at least 10 -15 persons in my group and nobody has heard about this platform. Mr. Anuj Jain Sure, okay. So Sanjay, firstly, we're not a platform in the typical sense as you would think about it. We have a host of brands in some key catego ries th at we play in. And these brands are sold on marketplaces. So, if you go on Amazon, for example, or a Flipkart, you will see all our brands selling over there, and you will see them amongst the best sellers on these marketplaces. So it's really, these channels where you will find our brands.

But I was going th rough this even today. Products are b eing sold on Amazon or Flipkart?

That's right, that's right. So we have some fantastic categories that we operate in, and we've got a huge range of products that we sell on Amazon, Flipkart, Quick Commerce, across marketplaces.

Sanjay, think of us as a house of brands. Where our identity is brands, not Globalbees as a company. As you know, consumers will know, a lot of Hindustan Unilever brands, but may not know Hindustan Unilever , just think of that as an illustration. Mr. Sanjay Because just before this, there was a question from, I think, Sheela, so you mentioned that you'd like to have your own platform or your own channel for distribution or delivering goods? Mr. Supam Maheshwari No, no, that was for India multi-channel, Sanjay. That question was for India multi-channel, not for Globalbees. Over a period of time, we will expand on channels, even in Globalbees, but right now, we remain focused as a pre ferred online sort of a channel, is what our playbook is. But yeah, over time, we will build more channels into that. While, we have many, many platforms to partner with. Mr. Sanjay And what is a business value from this platform? Approximately in terms of percentage, if you can tell? Mr. Supam Maheshwari 95% plus.

95% plus? Mr. Supam Maheshwari From all these platforms, all online platforms.

Online. Okay, that’s all from myside. Thank you.

Alright. Thank you Mr. Anish Arora Thank you, Sanjay. That was the last question. Thank you, everyone. I hand it back to Supam for concluding remarks.

No, no , nothing. Thank you, everyone, for attending our Quarter 2 result presentation on a Friday late evening. And once again, Happy Children's Day. Thank you once again, and see you next quarter. Mr. Gautam Sharma Thank you, everyone. Mr. Vivek Goel Thank you.