MR. SUNNY BHADRA — EMKAY GLOBAL FINANCIAL SERVICES LIMITED Page 1 0of 19

August 06, 2026 Ladies and gentlemen, good day, and welcome to the Monte Carlo Fashions Limited Q1 FY27 Earings Conference Call hosted by Emkay Global Financial Services Limited. As a reminder, all participant lincs will be in the listen-only mode and there will be an oppertunity for you fo ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch screen phone, Please note that this conference is being recorded. I now hand the conference over to Mr. Sunny Bhadra from Emkay Global Financial Services Limited. Thank you, and over to you, sir. Thank you, Anushika. Good morning, everyone. I would like to welcome the management and thank them for this opportunity. We have with us today Mr. Rishabh Oswal, Exccutive Director; Mr. Sandeep Jain, Exccutive Director; Mr. RK. Sharma, Chief Financial Officer; and Mr. Ankur Gauba, Company Secretary. T shall now hand over the call to the management for the opening remarks. Over to you, gentlemen. Very good moming to everyone, and thank you all for joining us for today's camings call to discuss the performarce for quarter ended 30th June 2026. Let me start by sharing the financial highlights and then the operational highlights. For the first quarter under review, the company reported revenue from operations INR149 crores, registered a growth of 8% year-on-year. The first quarter remained a lean period, resulting in EBITDA loss of INRI3 crores and a net loss of INR23 crores. The quarterly performance was primarily affected by higher product returns during this period, the impact of which will be offsct in the subscquent quarters. Coming to the operational performance, we witnessed broad-based growth across ow key product categories. Cotton volumes grew by 23% year-on-year, home textile by 42% yeat-on- year, kids wear by 5% year-on-year, reflecting strong produet acceptance. Our Rock It brand continued its growth trajectory, while the home textile segment maintained healthy momentum. Footwear sales also increased 38% Y-o-Y, and we remain optimistic about the continued growth of these emerging categorics. Our retail expansion strategy remains on track with the farget of opening 40 to 45 exclusive brand outlets during the year with a strategic focus on western and southern region. Our digital channel continued to gain traction with online salcs growing by 15% Y-o0-Y. We further strengthened our online presence through partnership with leading quick commerce platforms like Blinkit, Swiggy, Zepto, enabling deliverics within 30 minutes. Additionally, our collaboration with Salesforce is helping us streamlining our operations, cnhancing our customer experience and strengthening long-term customer loyalty through digital transformation initiatives.

August 06, 2026 We also successfully organized our pre-winter and winter trade show in February and March 2026, which received an encouraging participation and supported order booking for the upcoming season. ‘We remain confident in our long-term growth strategy with strong traction across all our product portfolios, expanding retail and digital reach and encouraging customer response to our upcoming scasonal collection. We believe we are well positioned to strengthen our market presence and deliver sustainable value for our stakeholders. ‘With this, we now open the session for question-and-answer. Thank you very much. Thank you very much. We will now begin the question-and-answer session. We take the first question from the line of Sucrit D. Patil from Eyesight Fintrade Private Limited. Twwo questions. The first question to Mr. Rishabh is, beyond the regular outlook, I just want to understand the top 2 to 3 exceution prioritics you're focusing on in the next few quarters. And alongside that, what do you see as the biggest risk in consumer demand shifts, fashion cycles or competitive pressures? And how are you preparing to manage them by strengthening Monte Carlo's position in the branded apparel space? That's my first question. I'l ask the sccond question after this. This is Sandeep Jain. And I would also ask Rishabh also to support my answers. So the first question, as I clearly understood, our strategy for coming 2 quarters, sce, if you have seen this quarter, the returns have been more because we basically plan to have better planning of our returns to dispatch it in times. That is why we have recalled it as in the June quarter because Inst year, it was divided into first quarter and sceond quarter. So to plan better sales in the coming year at our factory outlets also and also to better manage the return inventory, the returns have been more in this quarter. And we believe that we arc in well position to go for a strong year this year also, and we anticipate a double-digit growth going forward, Yes, there have been some tension of geopolitical issues have been there. There have been inflation issues. There have been issues of freight and input cost s going up. But despite all that, we are well positioned to achicve our growth. And I'd also ask Mr. Rishabh to support into this. No, as Mr. Sandecp ji rightly said, so the increased retums that we sce in our numbers in the first quarter is we've improved our operational performarce, and we've recalled and processed the returns on time this time. So the total number of returns will average out in the second quater. Secondly, we are focusing a lot on our digital chamnels as well, focusing on primarily our own. website, along with quick commerce. And our focus has always been on outright sales, which ensures that we get the least amount of returns.

August 06, 2026 Other than this, there's a lot of cffort being put in, in terms of stock planning that we send to our stores. Earlier, we were purcly dependent on the order that we reccived from our refailers. However, now each of the retailer’s order is scrutinized by a back-end team that we've created using multiple software so that we can get better at our sell-through and discounting: My second question is to Mr. Sharma. From a financial point of view, I just want to understand, do you see any key risk or challenges in the coming quarters? And what specific measurcs are being taken to manage margins, steady the cash flow and maintain the balance shect strength, especially in arcas like mw material cost volatility, reccivables and compliances? Yes. The main challenge in our company is only - there arc only 2 factors: discounts and returns. I we can maintain the returns as per our plan, which is approximately 12% to 13%, so we will definitely improve our margins. As far as material cost increase is concarned, it is actually -~ we alrcady - in advance at the fime of booking, we prebook all the raw materials and all the other accessories. So there is bardly any impact to that extent for that. And as far as the working capital position is concerned, we are definitely monitoring quite tightly all our debtors outstanding collections, and we hope that it will be improved further in future also. Twould just like to add that because of slightly risc in the input packing cost, input prices, so there may be 100 basis point difference as far as last year margins are concerned in this financial year. We take the next question from the line of Gunit Singh from Counter Cyclical PMS. I want to understand our cotton sales volumes have gone up by 24% and home textiles by 40%, but our revenues have not increased by even 10% this quarter. So can you help me understand in detail what exactly happencd? And when you say sales returns, so -- which arc higher this quarter, so what was the number of sales returns in Q1 FY26? And will we not sec any sales returns in the next quarter? Or T mean, can you help claborate? That's a good question. Definitely, if you have scen that the volume in cotton scgment has grown almost 20%, as you rightly spoken about it and even home textile also grow. So only reason for less sales is because we have got more returns. Normally, it is spread in first quarter and second quarter. But in this quarter, we got almost INRS0 crores of more retur as compared to last financial year. And that actually basically hurt the revenues part. So in sccond quarter and in third quarter, you would see that we would mullify this refurn as retums would be less as compared to last year, and we will have the revenue growth in second quarter and third quarter.

August 06, 2026 Why were the retums higher? Were these winter products? And how are the retums treated whenever we have the return, is it subtracted from the revenues? No, no. What happens is that -- so the winter refurns basically comes -~ some portion comes in March and the balance comes in first quarter and second quarter. So whenever we bill the material, we bill the material at WSP, but whenever we bring it back, we bring it at a cost. So that is why we have to incur loss also. So now it i - this inventory is now positioned ata cost in our balance sheet. So when we will bill it again, again, the profit will be booked. Got it. And what was the reason for higher returns this quarta? And I mean, will we not see returns in the next quarter? How are you confident about it? Yes. No, you will sce returns in the sccond quarter also. But when you combine the first quarter returns and the second quarter returns, the percentage return to the total revenue will even out. So in this quarter, you will see INRSO crotes of extra return has been processed. Earlier, our capacity to invert returns were limited. We've increased that capacity. That is why we've been able to pull more returns in the first quarter. This has already been refinished, already being sent to new distribution channls like our online channel, brand factories and factory outlets. This will help us realize in achicving better realization of these products. The overall retumn is almost the same as per last year in percentage terms. Just to add what Rishabh has said, sce, the main reason for is that we wanted to refinish it as soon as we can so that we can dispatch it in time, because normally what happens is that then there is a lot of pressure when the returns comes late because the season starts in September, October. So we wanted to refinish it in time so that we can dispatch it on time. Got it. And you mentioned that the processing of refurns capacity has increased. So what exactly did you do? And when did it increase? We've just added more warchouse space and added more manpower. It is a very manual process that is involved during refinishing. So that is all that we've done. So there was a space constraint carlicr. So that happened now we got the space. So that is why the refinishing capacity also have incrcased. Got it. By processing, you basically mean whatever is returned, you can process it quickly and then send it back to the store. That's what you mean, right? Yes. So just to give an cxample that if earlier, we were doing 5,000 picces per day, now we can do 10,000 picees per day. So the refinishing capacity has been doubled. So that is helping us even to take return earlier so that we can finish it well on time and dispatch it on time. So just to give you a broad figure of the total refurns that we were supposed to get in first and second quarter. In last year, we had processed around 50% of total return in the first quarter, 50% in the second quarter. This year, we processed almost 65% of the total refurn that we are Page 50f 19

August 06, 2026 supposed to get. So next quarter, we will only get 35% of total returs. So if that gives a little more clarity. But returns, when you say returns, if a customer wants to come and return their products, T mean, you cannot refuse them, right? So it's not our capacity to process it. It's basically customers coming and returning, right? These are not customer refurms. You are only referring to the online sales retums that happened. These are institutional returns that comes back to us from our retailers. So these are B2B retums. And we can definitely stop our retailers from sending back goods to us if it is higher than what we've agreed. This is not B2C returns. This is B2B returns. Yes, and we have ull control over how much we want to pick up from our retailers. Got it. And when you talk about sales returns, can you also claborate, say, out of INRS0 crores, how much is B2C returns in the customer? 100% is B2B returns. These are all B2B. This is complete B2B returns. Got it. Sir, my second question would be regarding the inflation in yam prices, inflation in cotton prices. So have we taken any price hikes? And you mentioned that our margin will be impacted 100 basis points. So I did not exactly get what you were saying that. So we -- our margin will be 100 basis points lower this year because of this? So Tl break it into 2 parts. So one is the winter trade show, which has happencd 4 months back, as Rishabh has rightly said. At that time, the trade show was good, and we've taken a hike of around 6% to 7%, depending upon the raw material price increase. And now when we come to the summers, again, we are having a trade show next year. So we are taking another hike of approximately around 8% to 10%, depending upon the cotton price increase. So that is one area. But sccond area is that the input cost, the other cost pressure because of inflation, the freight, those things have also gone up. And it not that we can completely pass on each and every hike because there are some material Ieft, which we procure a litfle later also. So I assume that most of the things will be covered. But again, there may be a slight difference of around 100 basis points as compared to last year's margins if we go into this financial year. Got it. We saw this hit in Q1 as well? Pardon? We saw this 100 basis point hitin Q1 as well? When I talk about hit, it is a full financial year. I'm not talking about a particular quarter. So whenever we give guidance, we give guidance for full financial year. Got it. What was the same-store sales growth in Q12

August 06, 2026 It was around 7%. 7%. And for FY27, can you give a breakdown of, I mean, what kind of SSSG are we looking at? And we arc adding 40 new stores. So would you like to give some guidance for FY27 in terms of growth and EBITDA margins? So already, we have indicated that we'll be growing double-digit growth. Exact double-digit growth, I cannot quantify how much - but it will be low double-digit. Yes, there will be a slightly reduction in the margin, 100 basis points, we assume. And SSG, as far as our in-house targets arc concerned, we are targeting 10% of SSG for this financial year as well. We grew 11% last year also. So on above that, we'll be growing 10% SSG in this financial year also and 40 to 45 stores, which we indicated carlicr in our presentation also, we'll continue to open those stores in this financial year as well. Got it. And in terms of EBITDA margins, I mean, are we looking at, sec last year, we did about 18%, if I'm not wrong. Yes. So are we looking at about, say, 17% or lower than that, closer to 15%? First of all, I cannot give you exact mmbers, but we assume that secing the inflation, sceing the input cost, which is going up, it can be same as last year's margin, but we arc safcly saying that it can be less than 100 basis points going forward because we don't want to commit anything which we cannot achicve. But again, if the upcoming quarter is very good as we have seen that the geopolitical tensions have cased and also the prices have gone down for oil also and input cost is coming down. So there may be a chance that we can have the same margin or upward revision of margins also, it all depends on the coming 3 to 4 months. We can give you update guidance in the sccond quarter con call. ‘We take the next question from the line of Amit Kumar from Determent Investments. Actually, I picked up the data from your presentation on the sales returns numbers. I just wanted to sort of get a sense that given that you already had an opening provision of sales return of about INR180 crores and you had an actual of about INR130 crores. So why is it that this entire number is getting booked in your P&L? Shouldn't this be adjusted against the provisions which you already have in the balance sheet? This is RK. Sharma. Actually, the same way what you are saying is rightly saying that it is adjusted against the opening provision itself only. But what happens is that our refurns arise, we receive returns in 2 financial years. So some portion we get in this year, some portion we gt next year. So this - remaining portion will be reccived in second and third quarter. So the retumns pertaining to the last year. So accordingly, the INR180 crores of opening provision will be adjusted according in that only. So this is just the first quarter only. This INR180 crores opening provision is for the full year.

Mahendra Jais

August 06, 2026 We take the next question from the line of Mahendra Jain from Way2Wealth. Sir, 1 just nced to understand road map for the next 3 years, like in cotton, we are growing. So where the margin will improve in cotton in future because of so much unorganized sector or tough competition? And as we are like offsciting this winter with cotton and home textile, so where you sce in next 3 years, we will be in margin in cotton plus contribution in cotton? Like, what will be the ratio of contribution of home textile and cotton in the next 3 years? Tthink if you witnessed the trend from last 2, 3 years, it is clearly visible that the cotton sales have been increasing as far as total sales are concerned, as a percentage of total sales. So we almost have reached, I think, around 45% of cotton and 55% of winter wear sales. So we also have said that in next 2 to 3 years, we will even out in summer and winter salcs. And eventually, the cotton sales will surpass the winter sales. So that is the ultimate target, and we are basically sct for this kind of target, And as far as — what was the second question? Margin, what s the margin scenario in 3 years, like, in cotton, be of competition or wnorganized sector. So how we sce the margin as our brand s reputed, so where we sce the margin, sir, as we speak? Means improve... Sorry, T1l be pleased to sharc that we have a better margin in cotton products on winter products as of now. If I -- it is almost 100 basis points up as compared to winter wear products in cotton segment. So there is no worry about the margins in cotton segment. Already, the margins are equal or better in cotton segment. And we anticipate that we will maintain the margin in cotton segment as we have certain advantages. We are number 1 in T- shirts in India. Almost we scll 2 million picces in India, which is growing at a very good rate. At the same time, other categorics also, if you have seen the volume growth of shirts, trousars, denims, all the categorics are growing. So this is giving us confidence that we'll be able to maintain margins going forward also. And overall, for next 3 to 4 years, we said carlier also that wetre looking for a double-digit growth going forward. Even in this financial year, carlicr, we indicated that we might grow at around 20%. But sceing the geopolitical conditions and also to save ourselves, we planned less imventory so that in case somcthing gocs wrong, so We are not trapped at the retail end or at the consumer end. So that is why some of the inventory has been cut. Sill, we are very confident of growing double-digit in this financial year. Sir, where we stand in home textile in gencral scenarios in market, like, our products are very well accepted and - yes. Yes, Tl be pleased to share that last year, we grew around 12%. And this year, we anticipate a growth of approximately 20% to 25% in home textile scgment. So the revenue-wise, it was around, I think, INR170 crores last year.

Mahendra Jais

August 06, 2026 So this year, we should be ending at around INR215 crores. So that would translate into a growth of 20% to 25%. So we are well positioned and brand is -- have a very good recall. And also our summer wear collcetion in home furnishing is growing at 60% to 70% as compared to Inst financial year. So I think we'll be doing approximately 20% to 25% in home textile sales in this financial year as far as growth is concerned. And sir, what is our capex plan? Like, you have mentioned that we are modernizing our plant. This is just I mean, working capex or something you arc adding or - and what cash we have on books now after solar and all this? No, we arc a very assct-light business. The capex only goes in warchousing, which already we have built in this financial year. And there are some modernization of machine, which is not beyond INR10 crores to INRIS crores. So its a very capex-light business, and we'll maintain that capex guidance of INR30 crores also for next financial year. Okay. Sir, what is the cash in books right now and what we are planning with that in future? As a very strong - as our market cap is quite -~ I mean, equal to the net worth of the company. So are you, sir, planning anything to, like, plant visits or analyst meet or something like that you are planning to just make aware people about the valuations? Like, the cash is INR30S crores in books, and we always invite all our analysts and stakeholders to visit us and to see us how we have been doing here. And everybody is welcome to visit us. And even after this con call, if there are any questions which are left wmanswered, you can always give a query to our Valorem Advisors, and we'll be happy to answer it. So it is INR30S crores, o, cash in hand? Yes. Yes. Okay, si. And how's the solar been -- I mean, when we are expecting return on that to start... So the capex on solar projects have not yet started. It will be - we are under the stage of land aggregation. And so I think in the next 9 to 12 months, we should be commissioning the plants and we shouild start the billing from next financial year, so. Any further plan to do more capex in solar, I mean, more investment in solar as we arc having a. But we would first want to implement and commission these projects so that we get the confidence. But yes, so we are putting around 50 megawatts in DC, around INR150 crores of investment. So we would want to complete this investment first, commission, start the billing of the project and then move on to new tenders. But we are very optimistic about this segment. But if something intcresting comes up, we will be more than happy to - and also - yes, sorry.

MONTE CARLO 2. Monte Carlo Fashions Limited It's the way you make me feel August 06, 2026 Mahendra Jais Sir, any other vertical, I mean, you arc planning in mind, like, something like we are in footwear. So any other vertical we are planning to go into that in future, like, or we arc just doing with our own business?

So footwear is a category which is - which belongs to the lifestyle segment also, And we, as a brand, when we move into lifestyle, we have to cater to all categorics. So category addition will keep on happening, whereas solar is a different vertical that we've undertaken. For now we're just focusing on retail and solar. No other segments are being looked at. Okay, sir. Okay. And sir, [ would like to visit, I will request, I mean, your RSVP I would like, sir.

Sure. So we'll ask our Company Secretary, Ankur Gauba, o coordinate with you, and we'll get back to you.

We take the next question from the line of Niraj, an Individual Investor. Ni Sir, my question was on the overall sales. How much is the component which is from a B2B sales perspective and how much is that which is being sold directly by the company? So if I look at last year sales was INR1,300 crores was volume. So roughly what s the percentage?

More than 90% is B2B sales. It's only online sales, which is directly from our website to consumers. So that contributes, I think, 3% to 4%.

Yes, even online, only 20% of the total online sales comes from our own website. Yes, and around 145 company-owned EBOs, that is the direct sales that reaches the consumers.

That is the consumers. Nis No, so basically from the company’s owned EBO, how much is the sales that is coming across? Is i, like, only 10% and the remaining is coming from the B2B vendor?

We can check back and we can write back to you. I don't have a figure right now, but i's approximately -- it should be around 20% of the salcs of total EBOs, I think. So that is company-owned. So the sales would be like that only. But exact salcs, we can - you can separately write to us and we will answer it. Okay. And just coming on the sales return part, it is comparatively quite high. If I look at the overall sales and the sales return, it is coming to be around almost like 25 to 30 percentage of the sales which we do. How is it that -- I mean, this basically adds an additional burden on the P&L as well? How do we plan to reduce this amount of sales return?

We are one of the best company in whole space who have a return of around 11% overall at a company level. So if you compare with any company which is listed or which is unlisted, it is around 15% to 16% or maybe more than 20%. So we arc one of the few companics in India, which have a return of 11% of overall sales, if you see that.

August 06, 2026 But the only thing is that for the third quarter is very heavy, so it starts reflecting in the first quarter itsclf. But when you see our second quarter and third quarter results and fourth quarter results, you would see that this doesn't come up ~ the return issue doesrit come up. It's only the first quarter we have to face some difficultics because of heavy third and fourth quarter. But overall, please sec us as a full financial year performance as compared to last year financial year, so that you would see that our returns, our profitability, our revenues, so that would syne in line what we are committing. And this sales return is primarily on the woolen part, or is i, like, across for the cotton and as well as all the other... Actoss every category has the returns. But woolen is being higher ASP. So it shows more in the balance sheet in the first quarter, but all the categories have some returns. But the percentages overall s the same, which I indicated carlier around 11% at a company level. Because I was looking at this number, like INR180 crores is the total retum for the current quarter. And what I understand that, that is 65% of the overall refurns it is there and 35% is there that we are basically additionally expecting in the quarter 2. So if I take it out, which expects the overall salcs return will come to around INR250 crores, INR260 crores? Sorry, 50 65% of the winter retums. So this time we are projecting winter returns, summer returns will be in addition to this, which will come in the third and fourth quarter. So in terms of quantum, how much is it going to be estimated? And I don't want the exact figure, but just a ballpark figure, like, now this is INR180 crores? Yes. So Il just tell you, in the first quarter, we've inverted almost 1 lakh cxtra picces as returns. And in the next quarter, we will invert around 70,000 esser in quantity as compared to lnst year. So if you see overall the - in first and second quarter combined, the overall return will increase by 35,000 to 45,000 picces, which s in line with the growth in dispatch. Okay. And if you arc trying to - and what I understand is there is no way to reduce this particular amount of return. This is an industry practice and this is something that is expected across then when our sales increase, this sales return will also increase in that percentage point of view. Sales retun is the number 1 KPI that we track in the company because this is one thing that can impact our margins as well as profitability. As Mr. Sandeep ji said, because of all these cfforts, we have one of the lowest returns in the industry as compared to any other company. These are part and parcel. These can never go out. Our best effort is to minimize them as low as possible. ‘We take the next question from the line of Amit Sanghvi, an Individual Investor. Yes. See, if I sce this P&L, advertisement and busincss promotion expenses is lower by INR362 crores. And in spitc of that, the losses are higher by INR10 crores. So how do we read

August 06, 2026 about the sales which we expect in future, whether the sales will be lower comparatively as compared to last year -- last Q2 and Q3 or how we should read about it when the expenses are lower in case of advertisement and business promotion? Yes. Please don't see advertiscment expense in quarterly basis. On a yearly basis, the guidance is around 3% of sales, which will remain there. So there have been changes in sometimes quarterly variations. Sometimes the quarter 1 is having a lesser advertising cxpense, quarter 2 is having a more cxpense. So sometimes the bills are moved in the sccond quarter. So overall it will remain same at a financial year level Okay. But you are sure that there will be a double-digit growth in top line revenue and more or less or lesser by 1% in EBITDA growth? Yes, you're right. That's what we have said. Okay. And what s the total expenses ineurred on the cnergy projects so far? So far, none of the -- there has been no investment that has been done. It will be to the tune of INR147 crores to INR150 crores, but none of this amount has been invested so far. It will be invested in the next quarter. But I think we have announced this a year before. So even after lapse of New Year, we haven't incurred any expenses? No, because when we had announced, we had got the LOA, then we - it got converted into an LOL Then there was a PPA process that had to be undertaken, which took another 3 months to be signed. Now because its a rainy scason, we are right now aggregating land. And in the next quarter, you will see - because it's a very short-term project. So the disbursement will happen within 2 quarters. So you will sce the entire amount being disbursed in the next 2 quarters. So the time taken is for compliances and gefting agreement signed. We take the next question from the line of Diwakar from Prudent Equity. Considering the company's healthy cash position, is management evaluating the possibility of share buyback? Yes, definitely, it is always under the Board's discussion. So whenever there is any plan, we'l definitely let all our stakeholders know about this. Okay. And sir, when you say the double-digit growth you are looking for, so are you refarring to closer to 10% to 12%, or higher, 18% to 20% growth? Sce, we indicated low double-digit growth.

August 06, 2026 ‘We take the next question from the line of Shital Shah, an Individual Investor. Pardon me, I joined the call late. So if my question is repeated, pardon me, sir. Sir, Q3 is always the joyous quarter for we sharcholder, but the joy fades away as we enter Q4, Q1 and it's turned into sorrow when we enter Q1 of next year, sir. Sir, management has taken the step to overshadow this impact by diversifying into cotton and leather products. But sir, impact is somehow not visible, sir. Sir, my question is, what the management is thinking of how to reduce the impact or overshadow this impact so that it does not distort the whole year figure, sir? Sce, first of all, all quarters, please have leathers because when we indicate in our con call in the beginning of the year, so we indicate for annual performance. We dori't guide for quarterly performance. We have rightly said that third quarter and fourth quarter, there is some pain in the fourth quarter and first quarter. But if you sce this fourth quarter, we have taken adequate measures and this fourth quarter was positive. Second quarter was positive. Third quarter was positive. Only there have been loss in the first quarter. So this year also, the same practice will be followed. So first quarter is again having a loss because of returns. And second, third, and fourth quarter definitely will be followed as we have followed in last financial year. But the good thing is that we have been known as a winter wear player. You see that there has been a volume growth of 27% in first quarter and summer season sales. So that shows that the summer wear categories have been accepted and being established in the market as far as Monte Carlo brand is concerned. So that is a very good sign for us. And going forward also, because ofherwise, we were having -- we were planning to have higher double- digit growth, but we curtailed our production, seeing the geopolitical tensions, sccing the nflation. So there might be some risk of some higher returns and there have been some issues with monsoon also. Otherwise, we would have indicated more than 20% growth. But we try to be very safe, and we try to protect our margins also. That is why we have curtailed down the growth a little, but we are not compromising much on the margins and much on other areas. Sir, just add on, sir. So is there any measure which we can do to curtail this sales return because that is the only horror thing in our financials, sir. If it reduces our whole year, sir, profit figures look decet, sir. So can we do anything or the management has any game plan to reduce this sales return figure, sir? Sce, this question has been answered repeatedly in this con call. We clearly indicated this is part and parcel of the business. What we only can do is that we can minimize it, and we are already at a very low level, 11% to 12%. As far as industry-related figures arc concerned, they are more than 15% to 20%.

August 06, 2026 But we are always trying to have more cfforts to reduce the returns, but that would be percentages-wise. It cannot be very high. If I'm at 12%, I can be 11.5%, but I cannot bring it down to 9% or 8%. That is not possible at all. But what we are trying to do s that always have alesser retum as compared to last financial year, maybe in the 30 basis points, 40 asis points, 50 basis points. That is what we are trying to do always. Okay. Okay. The reason was that, sir, our stock is quoting at only 10 P/E, where other retailers are quoting at 30 plus P/E, sir. That was the main reason for this asking. And sir, the sccond question is, sir, in last 2 con calls back, you had told that while we maintain this type of margin, we can only grow by this amount, sir? So my question is, sir, carlicr, you had told that we can grow casily by 15%, 20%. So duc to geopolitical tension, you are saying that our sales revenue guidance is reduced to low double- digit. So if geopolitical tension cases, do you sec any other headwind for us not growing by 15%, 20%, sit? Yes. Yes. Can you please just repeat it? I was not able to listen. Sorry. Sorry, sir. Two con call back, you had told that if we keep revenues this - [ had asked you, why would not we increase our revenue? Then you told that for keeping this type of margin, we can only grow by this amount. So 15%, 20%, we can asily grow by keeping this type of margin, so that we are not increasing our revenue to keep our margin safe. Now due to geopolitical tension, sir, you ar telling that we can grow at low double-digit. So only geopolitical tension is a headwind to us for not growing 15%, 20%, or any other headwinds do you foresee? Partly, you have answered your question. So balance, I will answer . So first of all, yes, we clearly indicated that we would like to grow 15% to 20%. I think in the fourth quarter when we were like having a con call, and we were having a clear visibility of 15% to 20% growth because our order book was at that level. But now consciously, we have cut down the production. So it's not that the order book is not there, just to sc that there have been some issues because of geopolitical tensions, inflation has gone up, which is alrcady indicated in the RBI also. And there have been some monsoon deficit news also, which is, I think everybody knew that India is highly agriculture cconomy and dependence on monsoon also. So we don't want to take undue risk on our margins. So that is why we have cut down our production a little so that we can grow at around double-digit, but not aggressive growth, in case there have been this war prolongs or there are some more issucs of monsoon or inflation. So then it may hurt the sale and it may then have more discounts and also it can push more returns. So just to safeguard oursclves, we have indicated that we will be growing low double- digit. Otherwise, the initial plan was as per the order booking and from trade show we had was 15% to 20% only. But again, this is just to safeguard our production, safeguard our margins, we have taken this decision.

August 06, 2026 And last - final, sir, our stock is quoting at a very low P/E. Sir, in future, please consider the proposal of bugback sir. We take the next question from the line of Ritika Pahwa from Pahwa Securities Private Limited. I have 2 questions. One is about your store expansion. I saw in the presentation that you are planning about 40 to 45 store addition this year. Just want to understand the broad investment in all the new store versus the payback period, if you could claborate a bit on how you go about it? And the sceond question would be about exports. Is the company focusing on exports inany manner? Tl come to the first question, which is the capex. Capex is only of the franchise. We do capex. only in the company-owned stores. So that is only -- I think the 10% to 15% of the stores which opens in a financial year. That is only the capex we do. Rest capex is done by the franchisees, and we expeet to have ROT of 3 to 4 years. Okay. Got it. 3 to 4 years typically? Exports, we don't have any exports as of now, but we have been doing some like online exports. Reasons Mr. Rishabh will explain. Yes. So as a company, we are not an export house. We are a retailer brand. So our focus is ot on export. Our focus when it comes to selling overseas is only if it sells under our own brand. For this, we've tied up with a few Middle Eastern portals where there is some sale, but it is not that much that we can have a discussion about it. But as a company, our focus is on the domestic market and not exports. Okay. Understood. So you do not benefit from any of the FTAs India is entering into be it UK or Europe, not in this entity. You don't sce any benefits from the FTA, right? No, because as a company, we don't own a lot of manufacturing units. We outsource most of our production and the only manufacturing that we have is to service our own demand. So as we said, we are an assct-light company. So in order fo export, we need to have that ‘manufacturing capabilitics in-house. Otherwise, we can't work it in a trading model. Okay. And just an add-on, what is your capacity utilization right now? And what do you think what is the maximum tumover can you expand to with the given capacity? Or would you need further capital for that? So for woolen, we've added almost 15 to 17 new machineries and our cotton plants are running at full capacity. We don't have any spare capacity available with us. And all the other demand that s there, we outsource to third-party vendors, and that will be our plan going forward. So no further capex is planned. Whatever incremental demand you're talking of like double- digit growth for the next 3, 4 years, this will all be your own plant...

August 06, 2026 Yes. Outsourced. Yes. So we spend around INR10 crores to INR1S crores every year on our internal plants in modernizing and adding a couple of new machinerics, but that is it. No major capex when it comes to production. We take the next question from the line of Gunit Singh from Counter Cyclical PMS. So sir, in 2015, our share was trading at INRS67. And now after 11 years, our share is trading at the same price or lower than that. And despite being one of the oldest brands in India, share is trading only near its book value, whereas if you look at other branded companies, they have multiples of, say, 2x, 4x of the book value. So sir, T would just request you rather than putting money in commoditized businesses like solar where returns are miniseule, why don't we consider investing in the company itsclf by buying back the shares and taking up the promoter sharcholding to 75% because I think at these levels, there is not any investment that's better than, I mean, buying back the shares of the company since we have cash also? And it will be a long-term bencfit for the long-standing sharcholders by permancntly increasing the EPS. So I would just like to understand if the Board is considering anything of this sort, anything of the sort on the books? And if not, kindly request you to consider it? Thank you, Gunit ji. And definitely, I can understand the pain as far as - and we are also having the same pain that the share price has not performed cven though the company have almost multiplied the tumover ffom 2015 to this financial year. And definitely, we have noted on your suggestions. Parfect, sir. And I mean, share buyback will also show our confidence in our own business and it will give a good signal to the market as well. So thank you very much for considering it, and Thope that something gets done in that dircction. We take the next question from the line of Jigar, an Individual Exvestor. Duc to no response from Jigar's side, we'll just move with the next question. ‘We take the next question from the line of Amit Sanghvi, an Individual Investor. Yes, you said that sales return is for this Monte Catlo is based in the industry, which is around 12%, as against 15% to 20% as per industry standards. So I don't think there is any more possibility to reduce this percentage of 12%. As you said that it can be 11.5% or maximum at 11%, but not lower than that. So what I feel then -~ what I suggest that if we can make basis the last 2 years average sales return, if you can make higher provision in Q3 where our sales is on a very high side, then this EBITDA margin or EBITDA level will be even out and this type of distorted Q1 or Q4 will 1ot be there. So I just wanted to have a suggestion on it?

August 06, 2026 That's a good suggestion. But this year, we have taken a good provisioning. That is why our fourth quarter was positive, which was negative last financial year. But definitely, we have noted your point. We take the next question from the line of Jigar, an Individual Investor. Sir, my first question is regarding the store cconomics. You plan to open 40 to 45 stores this year. So what is the average payback period and mature store EBITDA margin? Also, how ‘many stores can India ultimately accept over the next 5 years? Sce, first of all, I have already said that the ROI for franchisces is 3 to 4 years when we open the store. So secondly, how much - how many stores India can accommodate, I might not be able to answer that. But definitely, we have a plan of around 45 to 50 this financial year, and we may increase it once we have all this situation normal as far as inflation, geopolitical tensions arc concerned. We might open more store next financial year. India is a huge market, and it is a country of countrics. We have a population of 140 crores to support. And where the middle class income is rising every year and where the lower middle class is shifting into middle class and poor ar shifting into lower middle class. So definitely, there is a lot of space for organized players like Monte Carlo to increase their salcs as still we are - we have only, I think, 20% of organized sales as compared to, if INR100 sales is happening, it is INR20 only organized salcs. So a lot of potential from 20% to go to 50% as it's in other developed markets we have seen like America, Europe and China, their organized sales contributes almost 35% to 40% or 50% even. Soa lot of scope for brand like Monte Catlo to grow in this space. Okay. And my second question is regarding the revenue guidance, sir. Sir, you have already guided for low double-digit revenue growth - revenue growth, I mean. So can you help us understand the contribution expected from store additions versus same-store sales growth versus price increase? Yes, I don't have a readymade data available with me. We can just wite back to you. Please give you c-mail to Valorem Advisors, they will reply back to you. We take the next question from the line of Mahendra Jain from Way2Wealth. Sir, I'm repeating my question, like, on solar contract, can you claborate a little about that? Are we making investment into land or what is the exit clause if suppose in future, we don't like this business as we are doing only investment as per you said in last call also? So what is the contract clause like that are we buying land ourselves or something like this? Can you please claborate in this mix? And the margin is - around EBITDA is 15%, as you said in last call. So are the liquid investment or what kind of investment, please? So the land for all these projects have been leased. We are not buying these land. These are long-term leases spanning from 25 to 30 years. The agreement that the PPA that we signed

Mahendra Jais Mahendra Jais

Mahendra Jais August 06, 2026 with the Madhya Pradesh government is for 25 years. So we are responsible to sell them these wnits for the next 25 years. We are not allowed to exit this investment for the period of 1 year after investment, after commissioning. But post that, we are okay, if we want to monetize this asset, we want to exit his business. There arc cnough buyers in the market, enough funds which buy these recurring revenue assets, and these are sold at a basic discount rate of cash flow. That is the whole reason that this is being cstablished in an SPV and not in the mother company itsclf. That is why - because it will be an casy transfer if you want to exit this business in the future. So are we buying even solar pancl and all the installation will be done by us or it will be EPC contractor and they are things, like? No, it will be given to an EPC and they will do the installation and everything. But government... Investment will be our like, Okay. Yes, that's how all solar installations work. There are professional EPC companics which install. We have around -- even our in-house solar capacity is outsourced to EPC comparics. ‘We don't have an in-house team of engincers that can install it. Correct. Correct. So it's almost, like, any time we can take exit if we don't need to go into that business in future, like? Yes, post 1 year of commissioning as per the agreement. Okay. So the SPV will give exact return what you will get. I will be merged info the parent company only, no, end of the day? Yes. Yes, it's a wholly owned subsidiary of the parent company. But as you said, for the next 25 years, if we want to exit this business, it is a much easier process to just transfer an SPV to anewinvestor rather than doing an asset sale. Yes. Yes. Because sir, everybody is trying to understand why our valuations are low. Im ot talking about stock price. I'm saying, it's not reflceting exactly the valuation of the business, the brand. Right now, we are sceing new IPOs, any company, they are cooking their books, whatever they are doing, but we arc a very reputed company. So it should be, I mean, noticed by investors and all this. So we have to excrcise not exactly - I'm not advising any buyback, nothing like that, but we should put our investment into high-growth arcas and which especially in our core strength, like, in textile or in woolen or whatever. So the expansion we are doing in the right path. So we hope - and anything regarding to restore confidence of the investors, we have to do sir. So this is the...

August 06, 2026 Right, sir, we'll take it your point. And as promoters, we get to gain the most in terms of if we increase the nultiple. Tt is in our best interest to o that. And -- but we've scen a lot of queries regarding this, and we promise to be more proactive about it, and we'll take steps. And by next quarter, you should see something. As there are no further questions from the participants, I would now like to hand the conference over to the management for closing comments. Over to you, sir Yes. Thank you so much. I hope we have been able to answer all the questions satisfactory. Even if you have any further questions or anything which you would like to know about the company, please reach out to our IR advisors, Valorem Adrisors. Thank you so much. Thank you. On behalf of Emkay Global Financial Services Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.