FSN E-Commerce Ventures Limited (NYKAA) Q4 2026 Earnings Call Transcript

Hi. Good evening, everyone. This is Michelle from Chorus Call. Welcome to FSN E-Commerce Ventures Limited Q4FI26 Earnings Call. From the management at NICA, we have Ms. Falguni Nair, Executive Chairperson, MDN CEO, Mr. Anjit Nair, Executive Director and CEO of Beauty, Ms. Adhita Nair, Executive Director and Co-Founder and CEO of House of NICA Brands, Mr. Vishal Gupta, CEO of NICA Distribution, Mr. Abhijit Dabas, who heads NICAFashion.com, Mr. P. Ganesh, Chief Financial Officer. Before we start, we would like to point out that some of the statements made in today's call may be forward-looking in nature, and a disclaimer to this effect has been included in the earnings presentation shared with you earlier. Kindly note that this call is meant for investors and analysts only. By participating in this event, you can send to such recording, distribution, and publication. All participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation from management concludes. With that, over to you Falguni, ma'am, for opening remarks.

Thank you, Michelle. Hi, good afternoon, everyone, and I want to welcome all of you on behalf of me and my management team who are here today. I'll start with the brief presentation of the performance snapshot. You know, for the quarter for financial year 26, we are really seeing continued growth momentum in both GMV, which grew at 28% year-on-year, and net revenue, which grew also at a similar pace of 28% year-on-year, and the net revenue for the quarter was 2,648 crores. This is some of the highest growth we've seen in the last 12 quarters, as well as around now for the last 14 quarters, we have sustained a mid-20s growth in our GMV and net revenue on a broad basis. On the gross profit, we are really happy to say that gross profit has come out at 1,203 crores, which is 45.4%, about a 32% increase year-on-year, and again, one of the highest gross margin ever in the last 14 quarters. On the EBITDA front, the EBITDA was at $223 crore, 8.4%. To net revenue and 67% growth year on year. And again, one of the highest EBITDA margin ever, not just in the last 14 quarters, but ever. And on fat, it came out at 79 crores, a 3% fat with a 313% year on year growth. Again, this is one of the highest fat margins ever. With that, I'll move on to the full year. Financial year 26, performance was also strong. Again, the GMB growth was 28%, net revenue at 26%, and we've touched 10,000 crore net revenue for the first time ever, a billion-dollar revenue mark. You can see that the last quarter net revenue growth was higher than the full year net revenue growth, so we are seeing momentum build through the year. On the gross profit, similarly, the full-year gross profit is at 45.1%, 4,516 crores, a 30% year-on-year growth. And the EBITDA came out at 752 crores. That's about 7.5% of net revenue and 59% growth year-on-year. This, again, I would like to point out is the highest EBITDA margin ever. On the PAT, the PAT is at about 204 crores for the full year, 2% of net revenue, and 186% year-on-year growth. Again, one of the highest PAC margin on a full year basis. With that, I move on to the next chart. And from this, what I've been wanting to share with all of you has been a multi-year journey, where since 2023, we have embarked on diversification come growth expansion journey. And what you're able to see here is that our core businesses like multi-omni-channel beauty as well as fashion have grown 2x on GMV terms over a three-year period, which is a very healthy growth. And in addition, the superstore, the newer business like the superstore and house of Nika is also accelerating on growth, so it's not a new business. They've grown about 4x over the same period of three years of 23 to 26. I also have been saying that if you go to see from the numbers perspective, we now serve about 45 million customers on Nika Beauty, with annual unique transacting customers have grown about 2x in the last three years. From a store perspective, we are at 168 new stores added over the last three years, and we added 20 new cities and six differentiated experiential retail formats over the last one year alone. On the superstore, about 3.8 lakh transacting retailers across 1,000 cities and delivering an assortment of 200-plus brands. And from Nike fashion perspective, you know, we are a number one destination for trend-first, style-forward consumers, now serving almost 11 million customers with 40% growth in customer acquisition. And we also expanded the assortment to 6,000 brands, including marquee global brands like Nike and H&M. House of Nykaa also now has 12 brands across beauty and fashion categories at various growth stages. And two successful acquisitions of both DotNK and Earth's rhythm behind us. DotNK has grown 13x over this last three-year period, and K-Beauty has also grown 3x over this period. From a TAM perspective, I've always maintained that with the diversification and comprehensiveness of our business, we now address, you know, 15 billion TAM in BPC, 14 billion TAM of organized offline, 15 billion TAM of unorganized retail and beauty. All of that is addressed by us. 55 billion TAM in fashion is addressed by us. And now with the house of brand, you can kind of almost double it and play it through two angles. So really large TAMs in which we are able to play and grow.

With that, I'll move on to the next slide.

So, obviously, this is the strategy that is driving the long-term growth with robust growth as well as profitability and great value for the shareholders. So, you can clearly see that from a revenue of 5,000-odd crores in financial year 23, we are now touching 10,000 crores. And through this period of Adding new businesses, we have improved all the parameters. It does improve from 5% to 7.5%. Our FAT has improved from 0.4% to 2%. And you can see the return on capital employed also now stands at a healthy 21.2%. So, huge improvement in return on capital employed. We've been quite prudent on the amount of capital employed in the business, which hasn't grown that much, and all of the revenue growth has come on the back of early existing capital employed.

With that, I'll move on to the next chart, and I'll hand over to Unchip to talk about Beauty Omnichannel. Yeah, okay, great. Thank you very much, and thank you for everyone for joining this call.

So, in a similar vein, Beauty as a vertical has also had a very strong quarter to cap the end of a very strong year. To give you a sense, we closed FY26 with almost 15,000 crores of GMV, which is a 27% growth year-on-year, around 8,500 crores of NSV. And an EBITDA margin of 9.6%. In terms of Q4, again, 27% growth on GMB, 29% growth on NSV, and an EBITDA margin of 10.3%. So, exiting the year on a strong note with a 70 basis point improvement on EBITDA margin year over year. So, we're seeing a growth and acceleration in both growth and profitability as we end FY26.

Next slide, please.

So the growth on revenue is coming alongside an improvement in the marketing efficiencies at all levels of the funnel. As you can see, we had about 1.8 billion visits to our website and app in FY26, which was a 28% growth year-on-year. So despite getting to a very large scale in terms of customer visit and traffic, we continue to grow off of that large base at record highs. Importantly, the visits are converting into meaningful activity on the platform. We had 45 million monthly active unique visitors, of which 19.7 million transacted in the year gone by. You can see from FY23 to FY26, we have almost doubled our annual unique transacting customer base. And these customers placed about 66 million orders this fiscal versus 36 million orders in FY23. So you're seeing a strong traffic and investments behind bringing new customers and new visitors to the platform. And equally importantly, that is converting into a very strong conversion as well as unique transacting customers on the platform who are placing multiple orders in the year. And this marketing efficiency is allowing us to deliver not only revenue growth, but as shown on the previous slide, also improvement in profitability.

Naika continues to remain the trusted partner

for all of the iconic beauty groups globally. On this slide, you can see that for all the global beauty companies, Naika remains a partner of the place when it comes to launching and sustaining their business in the India market. As a couple of case studies, we've shown you that for the L'Oreal group, which now has 27 brands in market, Naika is retailing all 27 brands. But more importantly, we have been the exclusive retail partner at time of launch for a handful of some of their brands, including La Roche-Posay, CeraVe, Redken, Urban Decay, and others. Similar story with Estee Lauder out of the 11 brands in India. Most of them have launched exclusively with Naika over the years and continue to remain very strong partners of ours on the platform. And you can see from the list, Unilever, Pooch, P&G, Burstdorf, Amore Pacific, similar story. So I think brands are seeing tremendous value in Nika's very large and sticky consumer base, as well as its unique O plus O retail model, and a very strong content e-commerce flywheel that helps brands to create and maintain brand equity in what is the key growth market for them in the coming years. FY 26 for Naika was also a defining year of marquee brand launches. So we had 200 plus new brands launch in FY 26, despite us already having the largest assortment of beauty brands in India. And as an example, we launched some iconic brands from the Korean beauty space, such as Estura, Erencia, Anua, and Missensee. We were also very lucky to be the partner for launch of some of the most well-known brands globally, such as La Roche-Posay, It Cosmetics, Supergoop, and Nexus. And on the ultra-luxury side, NYCA continues to build a very unique positioning to cater to not only where the market is today, which scales from mass to prestige, but also starting to build a play on the ultra-luxury side for where we assume segments of our consumer base will be in the coming years. And I'm very excited to say that Nika partnered with Chanel, La Prairie, and SK2 to be the retail partner of choice for these ultra-luxury beauty brands when it came time for their India launch.

Some of the key trends we're seeing on the beauty side are the key beauty conversation.

It is a conversation that is happening globally, and India is no different. For us on the platform, Korean brands have shown phenomenal growth at 58% growth year-over-year, and Nika is very, I would say, Nika has been ahead of the curve when it came to identifying and capitalizing on the Korean beauty wave early. We have the largest assortment of Korean brands in the country. We've also created a curated and, I would say, best-in-class experience for Korean beauty shopping on the platform, and we're coupling that with engagement of platform on ground to really cater to the Indian consumer today who is looking for more experiential retail, and we're doing that through influencers as well as through our physical retail stores. The second big trend we're seeing in the beauty space over the past several years, and which we expect to continue going forward, is the trend of derma cosmetics. So these are brands that tend to be recommended by dermatologists. These are brands that are high in efficacy. And globally, this has been a set of brands that have been powerful for many years, and in India, this is also now starting to show very promising results with over 40% growth in GMV for these brands year over year. Again, we have the largest assortment of Derma Cosmetics skincare brands in India. Some of these names are global powerhouses when it comes to the category. But beyond just having the assortment, I think what we've done well is to create the environment that is well-suited to cater to these types of brands and the types of customers who are looking for these brands. So we have created an online experience that includes an AI-powered skin scan, allowing customers to take a scan of their face and allowing them to identify the concerns that they have and recommending products accordingly. We also have an online dermat recommendation engine that allows dermatologists to engage with consumers through both voice and video consultations and, again, recommend products that can help them with their skin concerns. Next slide, please. The third key trend we're seeing is the premiumization of beauty. It's something we have talked of for a few years now. We are also pioneers in premiumizing the consumption of beauty in the country. And again, similar playbook to what we showed you before, we always try to have the biggest and best assortment of brands available, and we cater to them through a very immersive and best-in-class experience, both online, but for this set of brands, equally importantly offline, through very high-quality retail stores across the country. And finally, using our marketing engine and our content powerhouse to create tremendous amount of education that will help the Indian consumer to premiumize over the coming years into the world of luxury beauty. Spending a minute on retail, as you're aware, we do have the largest network of beauty specialty stores in the country. We are just shy of 100 cities and 99 cities today, and we sit at about 313 stores. So we have about more than doubled our retail footprint over the past three years. You can see that we have shown very healthy growth, not only in stock count, but also in terms of life-for-life growth being double-digit for the year gone by. We now have three lakh plus square feet of retail space and many different formats of store to cater to very different use cases for the consumers. So, you can see we have the NICA on-trend format, more for mass, mass-teach consumers in Tier 2, Tier 3 markets. We have the NICA Luxe format, which is more for luxury and prestige shoppers in Tier 1 cities. And now, equally importantly, we have started opening House of NICA stores, which are own brand stores, and these come across multiple formats. As well as a new Nykaa perfumery concept, which is part of our overall strategy to drive penetration of fragrance usage in the India market. And lastly, as I had mentioned on the last quarter's earnings call, we have taken over the Kiehl's India business. Kiehl's is a brand, a prestige skincare brand owned by the L'Oreal Group. So now Nykaa operates their boutique stores in the country as well as Kiehl's.com. And there's also the exclusive retailer for Kiehl's online on nika.com. Next slide, please. So this is just a representation of some of the various new innovative store formats that we have launched over the past several years. We are definitely ahead of the curve, I would say, on creating more experiential formats that cater to a younger generation in the country. This is a category that requires a lot of touch and feel. It's an immersive one, and we're using our stores as a great way to engage with our audience and drive customer acquisition in the coming years.

Finally, just spending a minute on our relationship with

Charlotte Tilbury, the reason why we pulled this out as a case study is because it's a great example of how brand partners see Nykaa as much more than just a platform on which to retail products. So in 2020, we signed an exclusive agreement to retail Charlotte Tilbury in India, and that agreement, that exclusivity has now been extended for over six years, and we continue to be their exclusive retail partner in the country. But beyond just being a retail platform for Charlotte Tilbury, we are also now building and operating their exclusive brand stores in the country, and this is a first for them not just in India but in the APAC region. And this is testament to how we're able to take a relationship and deepen that relationship over time and deliver excellent commercial outcomes to the brands as well as to ourselves. And we hope to replicate this now with several brands in the future, one of which is the Kiehl's brand, as I mentioned, which we have just taken over the operations of that business in the country. And with that, I will pass it over to Azveta to walk you through the house of Naika.

Hi, everyone. So, today we'll be talking about the House of Nykaa. For FY26, this unit delivered a strong 3,176 stores of GMB, that's a 50% year-on-year increase, served more than 17 million consumers, and expanded distribution beyond online as well as to 150,000 GT doors. As a reminder, this unit includes brands across beauty and fashion, seven brands in beauty, and in fashion, five brands with an increased focus on one in particular, which is naked. The year was really strong. From the perspective of certain brands really emerged as very strong players, both on our platform and on other platforms as well. And we'll talk about some of those going forward. There were a lot of very strong innovations that became real leaders on the platform and dominated in categories in which they were launched. And there was a lot of focus on driving the right unit economics channel by channel. And therefore, this unit as a whole saw a very large EBITDA expansion as well. Moving on. Focusing on just the beauty side of House of Nykaa, this unit now is at about 2,788 crores of GMV, which is a 65% year-on-year growth. These brands have 4X'd in the last three years, and we remain really optimistic about the year ahead and the brands that we've got in our portfolio and what we're incubating as well. On the right-hand side, we can see the mix across various channels. And so, today in FY26, Naika Online contributes 45%, Naika Stores 10%, and other 3P channels 30%, Naika Superstore 16%, and a little bit of exports. Moving on. Double-clicking on Dot and Key, our largest brand. This brand grew enormously in the last three years, the 13X, delivering 1,790 tours of GMB. What I love about this brand is it actually dominates in very large categories. It's the number one sunscreen brand across Nike, Amazon, Flipkart, and Blinkit. It's the number two moisturizer brand, and it's the number three face wash brand. For a brand to receive this kind of love across platforms is a testament to truly having a phenomenal product in very competitive spaces. The brand is, you know, predominantly an online-focused brand, but we have been pushing ahead on offline as well, beyond the Nika, stores and Nika distribution. We've also expanded into GTMT with $53,000 across 1,000 cities. Moving on. K-Beauty has really been the breakout brand over the last two years, growing enormously, and what we've stated is 3X in three years to about 380 floors of GMV. We see enormous traction with this brand and are confident that the growth momentum will continue in the year ahead. The brand is really just winning on a bunch of brands. I think it's the right product at the right price. You know, there was a gap in the market exactly where K came in and played. And so the uptick has really been phenomenal. And we see very good efficiency and returns on this brand. We've been very selective about distribution because this is more of a premium makeup brand. Beyond Naika online and Naika stores, we've been actually launching kiosks, which we call K-Cafes. We have a collaboration with a coffee partner as well. Here, the idea is to be in India's top, most premium malls and fortify the distribution in that regard. Late last year, we spoke about the launch of K-Beauty in the UK, and we continue to strengthen our partnership with Space & K, which is by far the leading retailer in the UK. I'm happy to say that as the partnership progresses, we're unlocking more and more doors, but even as we widen the distribution, we're continuing to be a very strong player for them. In many stores, we really outperform. It's really great to see a brand being able to drive that kind of traction internationally. We have a presence in GCC as well with our JV Nysa. As of now, the aim is to really focus on these two markets and do them well. Moving on, Nykaa Cosmetics is actually our second largest brand at 400 crores of GMB. It is the namesake Nykaa brand. It's a brand that's really close to our hearts. We want to make sure the brand stands for bringing phenomenal quality, the right international and domestic trends to the engine consumer as fast as possible, and I think this year we've managed to do that. This year, 24% of sales came from new launches, and for a brand that is really about trend, that's a very good sign. Again, this is a brand that we actually distribute more widely than the other two brands. So there are 62,000 stores offline and, you know, an online presence strongly on Nykaa and Nykaa stores as well as Nykaa kiosks. Moving on. This past year has been about incubating and sort of setting up the next four brands for massive scale. And so, again, these brands have really been picking up, whether it's our bath and body brand, Wanderlust, whether it's our clean beauty brand, Earthrhythm. We were actually really doubling down on fragrance and perfumes, and we'll see us talk a lot more about that next time and in the year of the future, and also Nyka's skin. So all of these now are engines of future growth, and we're feeling pretty confident about where all four of these are based as well. Moving on. With that, I'll hand over to Vishal, who will be speaking about the Superstore business.

Thanks, Advaita. Good evening, everyone. Happy to report that we continue to expand the scale of our business. In a short span of four years, we have created a 1,200 crore GMB business, which is quite remarkable on its own. And this has been driven by two things. The kind of customer base and scale that we have created, we now reach half a million retailers, what we call customers, across 1,300 cities, and we continue to grow that year on year with 1.3 lakh retailers added in last year alone, and the kind of brands we attract, which I'll come to in a second. But what is also important is that this year, almost 30% of our orders actually came from retailers placing the orders on their own, which shows the shift in the habit towards self-serve, which is important for us. Next slide. Like I said, our half a million retailer base is quite mouth-watering for our brand partners. We have over 220 leading brands on our platform from, you know, the traditional large FMCG brands who, despite having a good distribution system, still find value in us. And of course, the newest D2C brands, which are still, you know, nascent and building distribution, and also regional brands, which we take national, and you can see the kind of brands in all the three buckets. I think, you know, all the big marquee brands are there. And, you know, a lot of these brands we attracted in Fi26, all the new D2C brands, you know, just like Nika.com is sort of super important for them to reach consumers. Similarly, Superstore has become very important for them to reach physical distribution. In fact, some of the new brands that we've attracted recently, you know, we have become their first choice before they do anything else. For a D2C brand, they would need to build a network of 300 plus distributors, but if they work with us, then we are a single one place. So our network is actually quite exciting for our brand partners. Next. And you can see that, you know, because of our growing scale, it obviously helps us improve our unit economics, and we have improved our EBITDA margin by greater than 500 BIPs, which is spread across all the levers. We had good gross margin improvement driven by mix as we expand the D2C brands, which are more profitable, and our own in-house brands. Our fulfillment cost is also coming down. S&D cost, obviously, you know, the more organic orders are placed, our S&D expenses come down and our overheads definitely come down. So all in all, I think I would like to summarize by saying we have built a great network, which helps us to attract great brands, which helps us to scale GMV and, you know, continuously keep improving our unit economics. Thanks. I think over to Abhijit.

Thanks, Vishal. Hi, good evening, everyone. I'll quickly share the highlights from the Nike fashion business. So firstly, just talking about the whole year numbers first, as Falgoni ma'am shared earlier, I think this has been a year of revival in growth and strong growth performance for the full year for the fashion business. As you can see on the slide, the financial year 26 was 30% growth, almost reaching 5,000 crore in GMV, close to 30% growth in NSV, reaching 1447 crore in NSV for the year. And as a result of the growth, as well as the underlying health of the business that we have consistently been improving through the year, a significant improvement in EBITDA margin from minus 8.3% in FI25 to minus 2.6%, which is a 570 basis points improvement in EBITDA for the full year. But talking about even the last quarter, quarter four of financial year 26. That was even higher growth, particularly on NSV, it was 42% year-on-year growth. And I'm happy to share with everyone that we reported a positive 30 basis points EBITDA for the fourth quarter of last year. So, overall, strong growth resulting in much improved profitability, but also as we exit the year, we are exiting on an even stronger upward trajectory, and that's great news heading into FY27. Next slide. I'll talk a bit about the underlying levers of the business which have led to this turnaround in the business, the improvement that we see in the GMV and profitability. Firstly, as we have been talking about consistently in each of the quarterly updates for the last several quarters, the consumer funnel has continued to look ever healthier throughout the year. One of the things we have consistently called out is our focus on new customer acquisition. On the slide, you will see all the metrics right from the top of the funnel, which is visits all the way down to orders. Everything shows a strong upward trajectory in this year compared to previous years. But most particularly new customer acquisition is 41% higher year on year. And it is not just the number of customers. It's also the sustained focus on the right quality of customers. You know, this is very focused attention on high-quality premium customers that we've always maintained, which has resulted in marketing efficiency. Average order values, et cetera, just holding where we want them to be.

So the customer funnel looks very strong heading into next year. Next slide. The second thing which has changed fundamentally for us

is that we have just very aggressively onboarded brands across categories this year. Overall, over the last year, we've added more than 1,200 brands, close to 1,300 brands across different categories. As you will see on the slide, this time it is, you know, we will continue to be and we still continue to be a very women's focused, women centric platform. But the brand addition, which has happened over the last year has been fairly democratic in nature. We've also added a plethora of very strong brands across men, across kids, as well as home accessories. And it's very heartening for us to see the growth that we have seen in these emerging categories. So towards the end of the slide, you will see the year-on-year growth number for men is 60%, more than 60% for the last year, kids is more than 50% for the last year, and home is more than 40%. So overall, now with the completeness of assortment across categories that Nykaa Fashion has, while we will continue to be women-centric, but we are a much more holistic lifestyle platform heading into next year.

Next slide.

Within those brands, and this was also a point which was alluded to earlier, we've onboarded some marquee brands which have fundamentally shifted the shape of the business on the platform on Nike fashion very meaningfully. There are no better examples than H&M and Nike. H&M, we reported a few quarters back. We onboarded H&M in November, and H&M is now the number one brand on Nike fashion since launch. We have a symbiotic partnership, which has resulted in a lot of goodness for H&M as it tries to reach out to a premium audience in India, as well as for us, which allows us to elevate the fashion quotient and just the best of fashion, which we are able to make available to our customers. And more recently, in the previous quarter, we've also onboarded Nike on Nike Fashion. I don't have to speak about the brand credentials of Nike, but I do want to highlight that in case of Nike, it's not just Nike being available on Nike Fashion. We've also entered a strategic partnership with Nike to manage end-to-end their digital commerce direct-to-customer platforms in India as of last quarter starting February. In fact, we manage Nike.com and the Nike application in India end-to-end, and that's a very different nature of partnership, which allows us to work more deeply and in a different business model with a marquee brand like Nike.

Next slide.

Lastly, I will also talk about the shift we have made in the way we do marketing. Increasingly, we are living in a world where the creator economy around us is booming. The way consumers discover fashion, get inspired by fashion, and then transact or interact with commerce platforms like ourselves is changing. And we have moved very fast to embrace the change which is happening around us. On this slide, you will see some examples of how we continue to work with, on one hand, celebrities. You will see an example of a girls' night out event we did with Shania Kapoor and with Adarsh Korob a couple of months ago. But we have just amplified significantly the amount of activity we do with creators of various sizes, some Pan India, some regional in nature. And in a way, we have piggybacked on the wave that is sweeping across. Content and commerce as we speak. And this is a direction that we will continue to maintain, which is leaning very heavily into the creator ecosystem and making, you know, making content and commerce integrate with each other going forward. So overall, to summarize, many inputs have gone through the year, over the last year, to show the trajectory and the numbers we just reported, but very happy with how we are entering the year and very excited for the coming year. With that, over to Ganesh for the next section.

Thank you, Abhijit, and good evening, everyone. I'll now share a quick overview of our quarterly as well as full year performance. There's been a strong quarter and, more importantly, a strong year for NICA. We crossed the milestone of rupees 100 billion revenue in FY26. Our revenue from operations has doubled in the last three years, reflecting a healthy growth and continued momentum across businesses. The profitability improvement was even stronger with EBITDA at 3x and PAT at 10x versus three years ago. For FY26, revenue, EBITDA, and PAT growth has been higher compared to the last two years, coming in at 26%, 59%, and 183% respectively.

Moving to the next slide. Sharing a quick snapshot of the

P&L, which reflects a strong improvement across gross margin, EBITDA, and PAT, both for the quarter as well as the full year, and going ahead.

Here we have a quick snapshot of the P&L, sorry,

a quick overview of the key factors that have been driving the margin improvement. That's what you see on this slide, with gross margin improving by 132 basis points in FY26, led by strong performance of House of NICA and improved service income across businesses. Fulfillment expenses, as you can see, have increased marginally by 23 basis points as we continue to invest in fulfillment capabilities to deliver improvement in delivery efficiencies. Marketing and SMG expenses have also been marginally up by 10 basis points YOY on account of investments in customer acquisition, which has been a feature across businesses. So, what we see is strong productivity gains, which are evident in improvement in our employee costs and other expenses. And this has resulted in EBITDA margins moving sharply to 7.5% for the year.

Moving ahead. Yeah, this slide shows you a snapshot of the business verticals for the full year.

And as seen earlier in the business verticals, beauty continues its strong growth momentum, while fashion has also made a very sharp recovery during this year. Beauty improved its margin by 70 basis points. Led through productivity gains and scale efficiencies, while fashion has seen strong improvement of 570 business points as Abhijit covered as well, with strong improvement across marketing in S&D and other expenses.

Going to the next slide. Here you see the...

Results, vertical recording for the quarter. Again, the key highlight here being that, as Abhijit again mentioned, fashion has become profitable, and we recorded a 0.3% EBITDA for quarter four.

So with that, moving to the next slide.

What we can see over here is continuing efficiency on capital front. So our fixed asset turnover has improved to 9.9 in FI26, up from 9.1 in FI25, led by an increasing mix of house of NICA as well as fashion, which tends to be asset light. Working capital days, as you can see, has improved further from an already healthy 34 days to even better at 28 days now, driven by both inventory as well as receivable optimization. And all of this, high profitability as well as better efficiency on both fixed capital as well as working capital, has resulted in ROC seeing a short improvement in FY26 and moving up to 21.2% versus 11.3 a year ago. And so this is a reflection of not just strong P&L performance, but also higher efficiency on the balance sheet front. Moving ahead. Yeah, our capex utilization here, as we can see, has become more efficient. And it currently stands at about 1.4% of revenue. And again, steadily, steadily improving by way of lower salience to revenue. We continue to invest in beauty retail store expansion, fulfillment capabilities, as well as technology, and this is a reflection of higher capital efficiency.

So moving ahead, yeah,

to round things off for the quarter and for the year. We had acquired 76% stake in earth rhythm over a couple of branches between FY23 and FY25, as you are aware, and we now completed the acquisition by acquiring an additional 24% stake, and which happened at pre-agreed terms. So, to sum it up, We are very pleased with the way Naika has executed this quarter and, in fact, the entire year as well. We have delivered strong growth across all businesses, improved profitability, strengthened our omnichannel model, and continued to invest in capabilities that will support our long-term value creation. And we do believe that we are building the business with the right balance of both ambition as well as discipline. With that, I would like to hand over the call part to the moderator to initiate the Q&A. Thank you.

Thank you, sir. We will now begin the question and answer session. If you would like to ask a question, please click on the video question tab. Before asking the question to the management, please introduce yourself, providing your name and your organization name. If possible, you may switch on your video as well. Please limit yourself to maximum of two questions so we can accommodate as many participants as possible. Ladies and gentlemen, we will wait for a moment while the question queue assembles.

The first question is from Kapil Singh. Please introduce yourself and proceed with your question.

Hello, am I audible?

Yes, you are, sir. Please, Rasheed.

Okay. Good evening. This is Tapil from Amura. Congratulations on very strong performance for the quarter as well as for the year. As we are starting a new financial year, so I thought that it would be appropriate to ask your outlook for the next year and, you know, all the key segments, what are your thoughts, both in terms of growth and margins. We are seeing some signs of inflation as well, so any thoughts there?

How does it impact demand and margins?

I think it's really hard to

make forward-looking statements, but I have to admit that April and May have been good overall for the business in terms of the growth momentum. However, you are right that the global concerns, which are being translated to high... Currency and oil prices, I mean, high oil prices and depreciating currency and its impact on inflation and through that consumption makes us cautious for the next year. But we are, I have to admit that we are definitely seeing benefits of AI-led growth in our business for sure. So it'll be a combination of the two. There will be some general global concerns, but... We also do see opportunities for businesses like us to benefit from current developments on AI, and the benefit is both on

top line as well as the cost.

So, broadly, we can sustain somewhere in the same growth zone we have been for last few quarters.

So, except for the general environmental, you know, concerns, we are not seeing any specific concerns yet, but it is hard to assume that they won't emerge as you go forward because inflationary pressures may be there. Not necessarily for our industry, but for oil consumption in general. But then I would like to remind everyone of our consumption categories are small. You know, luxuries, and as a result, their consumption is not as impacted during tougher times. Yes.

Sure. And second, I had also asked about the margins.

In particular, what I would like to know is that we've seen a kind of uptick in the new visitors, the top of the funnel, which I think Anjit also referred to, and marketing efficiency. We are seeing that marketing spends have come down on a water on water basis. And that has also driven profitability. So how are you achieving this, you know, drive up in new visitors, but marketing spends well under control, any insights here would be really helpful. And you also referred to AI driven growth. So would like to know a little bit more about that.

Yes, I think best to say that we're seeing improvement in marketing funnel at all levels, you know, on visits, cost per visit to conversions to, you know, more engaged users. So I think across the board that I benefit.

Any comments from Anshit you want to elaborate? Sure, sure, sure.

I can add a bit of color there. So, look, I think a couple of things. One is we've been talking about our focus on new customer acquisition with you now for the past at least four to six quarters, right? So that should not come as a surprise. So, I think there's been a lot of work we have done to improve the new customer experience on the app, and that has led to – and, of course, spending. I would say there's also efficiency that we have found on customer acquisition through digital platforms like Meta and Google. And I think FN was alluding to some of the benefits that AI has allowed us to drive in terms of efficiency on marketing on third-party platforms for customer acquisition. But it's been a focus of ours, and we've done a lot of good work off-platform as well as on-platform to really continue to invest behind what we see as a big driver of growth for the coming years. And AI has only allowed us to be more efficient in terms of how we spend that additional dollar

on some of these other platforms.

And the other thing where we're using AI in a big way is on-app experience personalization. And what that means is that, you know, for existing buyers, it's easy to personalize the shopping experience based on the various signals that we have from them with regard to their previous purchase and browse history on the platform. But AI has now allowed us to also infer signals about new customers where we don't have too much previous browse and purchase history data on them, but AI allows us to personalize the experience for them to an extent that was earlier not possible. And I think that's also allowing us to drive further efficiency from the customer acquisition spends which we make off-platform to convert them better on the platform. So I hope that answers your questions around the traffic, the acquisition, as well as the AI impact, both on top line and to an extent on efficiency and marketing.

Yes, it does. Thank you so much, and best wishes for next year.

Thank you.

Thank you. The next question is from Sachin Salgaugar. Please introduce yourself and proceed with your question.

Thank you. This is Sachin Salgaugar from Bank of America. Congrats on a great set of numbers. I have two questions. First question, more a follow-up on margins. I would love to understand where should we see steady-state margins of BPC coming up to? We have seen consistent improvement on margins. I understand, you know, add as a percentage of revenue continues to increase, but we would love to get a sense. And, you know, same on fashion. We already had break-even, so should we expect continued improvement in margins actually going ahead? And any thoughts on, you know, where are we from a steady state? A relative question out here is, you know, how should we look at the inference cost adding some pressures to the margins? And my second question is on impact of a higher fuel price we should see on raw materials, and should we see procurement cost increasing, and hence an impact on margins out there. Thanks.

So maybe I'll kick it off on beauty, and then, Abhij, you can come in on fashion.

So in terms of the – look, again, as I always say on these calls, the beauty vertical comprises three very different businesses. One is obviously the multi-brand retail business. Second is our house of brands. And third is the B2B superstore business. So all three have very different margin profiles. But what I can tell you is, and based on the commentary you heard from the various business leaders, each business is independently seeing improvement in their margin profile. So, ultimately, how that shakes out at a consolidated vertical reporting level is also an outcome of how fast each of those businesses grow. So, if B2B and own brands continue, if own brands continues to grow, you know, outpace the growth of the other businesses within the vertical, then that can be accretive. B2B, of course, currently. The call is improving its margin profile, but at the aggregate vertical level, if it grows faster, that can be diluted. So, each of the businesses are independently improving their margin profile, and there are efficiencies on the core multi-brand retail business as well, as you noted, on both marketing as well as on fulfillment. But on the beauty retail business, there is a degree of confidence that there is growth to be had, and so reinvesting some of that efficiency back into funding growth, I think, will be the priority. So I think in terms of guidance, what I can say is each of the businesses will continue to improve. Thank you. The call is despite us reinvesting aggressively for growth. So, yes, I think you could assume that all else remaining constant. You can see similar trajectory in the coming years. But, yes, some of it is a result of the weightage of each of the respective businesses within the vertical. And on inflation and procurement costs. It is a risk in the sense that I think freight, cost, and obviously with the currency issues that we're facing, there is some pressure probably on brands to take a price increase. It hasn't happened yet. And, you know, from my conversations, it seems brands are trying their best to not pass that price increase on to the consumer. But it can happen. I would say it's not likely in the near term, but yes, it can happen. And how will the consumer react to that? I think that is yet to be seen. But as FN also alluded to earlier on the call, beauty is a small luxury of life. The ticket size is not large. It is becoming a lot more core to people's lives. It is part of daily consumption. It is... It is becoming habituated in terms of usage, and it's a low-ticket purchase, so we're confident that even with inflationary pressures, hopefully our category remains more immune than others, but, you know, we have to see how things progress in terms of some of the macro conditions which we're currently seeing.

Thank you, Anshith. And maybe I could just follow up before we go on to the fashion margin thought process. You mentioned about the three different subcategories in beauty. Any thoughts on where the margins could stabilize at steady state for all the three separate businesses?

Three, all three businesses have a very different steady state margin profile, right?

I think you're aware of that. And we've mentioned in the past that B2B is probably a single digit margin type business. You know, beauty owned brands could have even better margin profile than the multi brand retail business, given that they have a higher gross margin. And that is accretive. And selling more of our own brands on our platform itself is also accretive to the retailer margin. So I don't know if we've given exact numbers in terms of guidance, but the better own brand does, the more accretive it is to the vertical, the better B2B does in the short term, that might be slightly dilutive, which is kind of counterintuitive, but you understand, I'm sure. But, as I said, again, generally over time, both the own brand business and the multi-brand retail business have opportunity to improve an already healthy margin profile. And I think that's anyway what accounts for majority of the weightage to the revenue mix in this vertical.

Thank you. Very clear.

Yeah, I'll just add on to what Anjit said. You know, on the fashion side, firstly, again, it's a combination of several businesses. The largest one is the fashion.com platform, naikafashion.com platform. But then there is also the own brand business. And more recently, there is a vision of a very different business model with Nike. On the largest business, which is mykafashion.com, which more or less makes up for a bulk of the numbers in the vertical, we've been talking about intrinsics of the business, which we've been successively focusing on over the last year, and that is resulting in both higher growth and improved profitability. We remain confident that the intrinsics will continue to improve. Any retail platform depends on a flywheel of the right kind of customer acquisition happening over a period of time, the retention of those customers, good quality customers taking shape, which leads to marketing efficiencies successively improve, and the retention improves when the reasons for customers to come back to the platform are more than what they were previously. Obviously, the service levels are good. Assortment addition plays a very big role in that. So as you increase the assortment, you create more hooks for customers to want to come back to the platform. And those are the very same inputs that I very briefly spoke about in the slides which we presented some time ago. So we feel confident that the intrinsics and the sort of tailwinds on each of those intrinsics are in place. So we feel confident that the trajectory should be positive on margins for the fashion business from here on. Own brands, again, I think during the year we've made gains in the health of overall the portfolio, naked, as Advaita said, most particularly, but overall for that business. And early days on the Nike partnership, but again, we are seeing good signs in the first few months. So overall, we remain confident about the trajectory continuing to be positive from here on in. I'll not speculate on long-term numbers just yet, but very much the trajectory is expected to be positive, and we are optimistic.

Got it. Thank you and all the best.

Thank you. The next question is from Nihal Mahesh Chham. Please introduce yourself and proceed, sir.

Yes, good evening. This is Nihal Jam from HSBC. Congratulations on the strong performance. I had three questions. The first was that what has dimpled the improvement in the fashion growth in 2016? We've seen that 2015 has sort of jumped to more than 30 in this year. And this we've managed while reducing marketing also. So if you could just give a landscape of both these elements.

Sure. Thanks for the question.

Like I said, you know, I think growth is firstly dependent on just customers transacting more frequently, more customers transacting more frequently. We have remained focused and we have called out in. Pretty much every quarterly update that we have remained focused on customer acquisition throughout a bulk of our marketing investments actually go towards brand building for the platform as well as acquiring customers. And then we've been very focused on assortment additions through the last year, particularly adding very strong brands like an H&M, like a Nike. Those have, very simply put, those have led to the growth revival that we have seen. And as we, you know, focus more of our traffic towards the better brands, as we acquire the right quality of customers. Marketing efficiency de facto looks better. So it's a very targeted and very deliberate effort to onboard the right kind of customers, to onboard the right kind of brands, and to work deeply with partners, both on the brand side as well as marketing channel side, to show the right brands to the right traffic, to the right customers, so that they convert efficiently. That's what results in marketing efficiency looks better. And those are structural changes, very deliberate structural changes we've made in the business. And that's why we remain confident that, you know, we should continue to see positive trajectory.

Sure. Has competitive intensity also from certain platforms who are sort of similar positioned abated this year in any way?

I wouldn't say it has abated. I think there is always competitive intensity. Although I would say to your point, other platforms, you know, every platform is positioned slightly differently. We are uniquely positioned. Naika Fashion is positioned differently compared to others in the market in that we have been very clear that we focus on the premium fashion online market. We don't so much play the mass market categories, and therefore we go after certain kinds of brands, we go after certain kinds of customers. So, in that sense, we play in a different space compared to most others. It's also worth mentioning that we, you know, we are a much younger business compared to BPC, and the headroom for growth is just much higher for fashion as a business compared to how large the category is. If you recall the slide on TAM, you know, the TAM is 55 billion, and we are still playing in a very, we are a very small percentage of the market. So, irrespective of competitive intensity, which will always be there, we have a lot of headroom for both, and we therefore just remain focused on intrinsics.

Sure. My second and third question is to answer that, you know, inflation overall, we've seen with, say, traditional media players ends up leading to a cut in advertising or marketing spend. So, from our perspective, you know, have you historically seen that when inflation plays out and if, say, FMCG companies is a reasonably large size of our marketing budget that they sort of step back? And another question was that on private labels in BPC, we already had 20% kind of a contribution. Is there a possibility that Naika as a platform can save and touch a 30% without sort of, you know, impacting the health or the way other brands, independent brands look at a platform?

Yeah.

So to answer your first question, you know, it is a possibility that certain brands pull back on ad spends or on marketing on digital platforms, including ours. That is a possibility. The good news for us, however, is that, as you're aware, no single brand or even brand company accounts for double-digit revenue to our platform. So we have very low revenue concentration, and as a result, even our ad dollars

are not as

concentrated to where that risk is meaningful for us. So there are thousands of brands on the platform. We have spent the last several years making the platform more inclusive in the sense that allowing... More brands to be able to participate in advertising on the platform by creating, you know, more opportunities for them to participate. And as a result, we have diversified our base of advertisers. And so we're not overly reliant on FMCG, nor on international brands, neither on luxury brands, nor on mass brands.

So I think it's well diversified.

And we continue to launch new advertising properties that are of interest to all of our brand partners. We're also now providing a lot more consumer insights. And again, here's where AI is helping, but our ability to share real-time. You know, insights on performance of marketing campaigns on the platform has been seen as very helpful by brands as well. So, you know, I think given the strong and high-quality customer base we have, very specialized platform, very high-quality consumer, very high-quality conversations, and now a much higher level of consumer inciting and more advertising opportunities on the platform, you know, there are a lot of things that we now have going for us that could counter. The desire for brands to possibly pull back on advertising if the inflation and the currency issues continue to persist. So that, I hope, answers your first question. On your second question regarding owned brands, they don't account for 20% of the retail revenue yet. I don't know where you got that number, but we can confirm what that exact number is if it's disclosed. Thank you.

I can jump in there. You know, we don't, first of all, obviously, our brands sell on, you know, multiple platforms and like offline and other platforms and so forth. So that's just putting the number in context. And in terms of how we think about the strategy, it's not about getting a particular share of Nika as a platform. We're truly trying to build an independent unit within Nika, which is truly a house of brands. It's the brand's business, and we want to have a beautiful portfolio of brands which extend across many different categories, many different positionings, and we want to make sure every brand hits its own correct potential and its own correct distribution strategy, and whatever that nets out to in terms of the revenue and top line is where we're headed. But I would say as we're getting increasingly focused on this business, it's not about just penetrating, you know, like other retailers, but it's truly about building. Standout brands in the country. And we think it's a really incredible time to be building brands in India, actually, because there's a lot of appetite from consumers to try, you know, Indian brands that are being built on Indian side.

And it's a very large revenue profitability pool, you know, which we can tap into for the future. We're building towards being a big player there.

Yeah, sure.

So I'll just complete the answer. So I think, as Azveta mentioned, they're building brands that can stand on their own two feet in a broader consumer context. And similarly, we're building a retail platform that caters fairly and equally to all of our brand partners. And this is something I've spoken about and I'm very, very passionate about. And I've spoken about this with all of you over many, many years, that As a retail platform, our multi-brand retail relationships and commitments come first. So we really are very, very committed to creating a very fair and balanced playing field for all of the partners who retail on our platform. And as I say, every brand has as much of a right to win and as much of a right to lose. on the platform as our own brands. So the fact that our own brands are growing well on the platform and that they are gaining market share is great. That's good. But we are not solving for any market share increase or any market share for our own brands. So they have to grow on their own merit. They have to have a consumer connect. They have to have a unique value prop. And I think they're doing that. And as a result, they're seeing success not just on our platform, but across multiple platforms.

Sure. Thank you. Thank you so much.

Thank you.

The next question is from Parsi Pandhati. Please introduce yourself and proceed.

Yeah, am I audibly?

You are. Please proceed. Yeah.

Yeah, this is Percy Pansicchi from IIFL. I just had a question on your own brand in beauty. You've done exceedingly well in this portfolio. There's been a 65% growth YOY. Dot and key must be probably close to 1,000 crore in NSV terms. How do you see this portfolio growing now? I mean, on this base, which is a pretty high base now, do you think that this growth rate maintains or it slows down a little bit, given that it has already scaled up to a meaningful size now? And it would be unrealistic of us to expect the same kind of growth. And I'm sure that, as you said, these businesses are at... Higher margin, that is probably one of the reasons contributing to the margin expansion in the beauty segment this year. If the growth of that portfolio slows down, do we see that lever to push up margins in the coming one or two years being a little weaker than what it was?

Yeah, I can come in there first to address, you know, the first part of that question. The way I would position it is more about, I think Nike has become very excited about the opportunity to build a really compelling house of brands in India. And I think that strategy will come down to having the right portfolio of brands. You know, we have three big brands at the moment. I would say we probably have four really meaningful brands at the moment, Dot & Key, Nika Cosmetics, K-Beauty, and Naked. And I would say there are a couple of brands further that are looking very high potential that will sort of break out this next year. So I think the strategy is really probably three-pronged. The first is making sure that the big brands continue to... Hit the right potential within each of their categories. So continuing to take market share in each of the categories they play in, continuing to take the right distribution calls, and making sure that we're as ambitious as possible for these four brands that have already sort of broken out. I think the second prong of the strategy is, you know, these incubating brands that are just starting to take off, making sure, again, they get through to that 150 crore-plus threshold such that they can definitely exist and have a life of their own. And I would say the last bucket is to do, you know, acquisitions and look for either brands to acquire or brands to build in-house. And that sort of supplement our category. So I think when you put all those three things together, I think the potential of how big this business can be is really exciting. But it will be on the back of the right portfolio strategy, picking the right brands, the right categories, and then making sure that you structure the organization to be able to deliver each of those with the right ambition. So, I'm not answering your question exactly of, like, will the growth continue to be, you know, 50% plus next year. I think the way I'm more saying it is... I think we're getting really focused and ambitious about the strategy here. So it's about having the right breakthrough growth in each of those three pockets, and then we'll see where the growth pans out. But I think it's going to be a really exciting business from here on out.

Okay. Second question is on, again, the beauty of B2C retail platform that you have, and the kind of growth that you're clocking there, probably in the high 20s on both GMV and NSV. I just wanted to understand the contours of the growth. Do we see that changing? Like currently, we see a lot of growth coming from unique annual customers sort of increasing. And the AOV growth is probably not a big material contributor in the overall GMV or NSV growth. Over the next, let's say, two to three years of Verizon, Do you feel that you can keep adding new users at the same pace as you have been, or do you think the new user growth is likely to taper down a little bit and the slack will be picked up by the AOV going up?

Is this a question for the B2B business?

No, it is the B2C retail platform, B2C business, which includes, I mean, which is your overall retail platform, own brands plus third party.

Yeah, you mean the Nika.com and Nika retail store? Yes, yes, yes, yes, absolutely. Okay, so first, I also just want to answer your earlier question regarding... Because the sense I get is you're implying that a lot of the margin improvement we're seeing in the beauty vertical is on the back of the own brand's growth, right? So firstly, let me say that in theory, the own brand's business should, and it can be accretive to the overall margin profile for the beauty vertical going forward. But currently, the retailer business that we have is the business with the highest margin profile, right? So the margin improvement is not solely on the back of the own brand business going faster than the platforms. It's also the core retailing business itself has a very, very healthy margin. And continues to improve on the back of marketing efficiencies, as well as certain improvements on fulfillment costs and repeat customer behavior on the platform. So even if the own brand's business does... I don't think you're going to see an impact on the overall margin profile for the beauty of verticals. I hope that helps answer your first question.

That's very useful.

Yeah. Now, that being said, I think the other way to look at it is there is tremendous opportunity for the own brand's business to not only continue to grow fast, but also improve its own margin profile, which will be accretive to the overall vertical going forward. Now, coming to your second question around growth and how much of that is going to come from AUTC versus AOV going forward. Yes, I think we have invested behind customer acquisition because customer acquisition is a customer acquired today is a repeat customer tomorrow. And I think one thing Naika does very well is to convert new customers into repeat customers. And over time, we've seen that the annual consumption value and the average order values of repeat customers tends to grow and be greater than that of a new customer. And that is in large part due to all of the education, all the personalization which we do on the app to get the consumer to shop more frequently, to shop at higher price points, and generally increase their consumption and our wallet share of that customer over time. So, yes, I would say growth, you know, for us, growth comes from not just new customers, but also from existing customers and how their basket evolves with every subsequent purchase. That being said, we have not seen too much growth in AOV in the past several quarters, and the reason is twofold. One is you have to remember that because new customer AOVs are lower than repeat customer AOVs, any quarter in which we have very... Strong customer acquisition. At the aggregate level, the AOV can look muted. The AOV growth can look muted because we have a larger percent of our transacting customers coming from the new customer bucket. And the second is that we have been trying to focus on driving a lot more frequency of purchase as opposed to just focus on average order value because ultimately our goal is not just average order value, but more importantly, annual consumption value. And so that's why you've not seen as much AOV growth. That being said, I think as, you know, there are some – we have some initiatives in Pre-Base to improve annual consumption value and also improve AOV for our existing buyers, our repeat shoppers in the coming quarters. And, again, personalization, you know, making the right – showing the right products to the right user, which is ultimately what personalization is, we believe can help to improve AOVs and ACV over time. And, of course, premiumization, relative premiumization of our consumers, given the assortment that we have, can also help. So the objective is definitely to get incremental growth from AOB, as well as from annual consumption value growth in the coming quarters and coming years. And I think as the new consumer evolves... As they embrace premium and prestige beauty, as their shopping behavior becomes more sophisticated, you'll start to see those improvements over time. But that being said, there is still tremendous runway for us on customer acquisition. You know what our annual unique transacting customer number is. It's still a long way to go, and so we're quite excited about the millions of consumers who are still yet to experience the NICA universe and also engage with beauty in a meaningful way, and I think our job is to bring those consumers into the beauty ecosystem over the coming years, and we'll continue to invest behind that. Got it, got it.

So just to summarize, if I understand you correctly, you think that the AUTC growth can more or less continue at the current growth rate in the next two to three years as well?

Yes, as I said, I think there is headroom for growth and customer acquisition for sure. Again, those are my questions. Thank you so much.

Thank you. The next question is from Latika Togra. Please introduce yourself and proceed.

Sure. Hi, this is Latika from JP Morgan. You know, thanks. You answered a lot of the questions that I had, but just a few more things from my side. The first is, you know, given the way the rupee is depreciating, I just wanted to get a sense of what's the salience of imported brands, you know, in your beauty business. And have you started to see some of those translation-led realization increases already? Is it even meaningful to think about?

Yeah, so the imports for us, direct imports form a relatively small portion of our business. So in that sense, it limits our exposure both from a forex volatility perspective as well as from a potential supply chain challenge. Having said that, from a forex perspective, we operate on a fully hedged basis, and at any point in time, the next two to three months, exposures continue to remain hedged. So, that also gives us a level of protection from near-term volatility as far as currency is concerned.

Sure. The second, you know, question I had was just an extension of the discussion you had on own brands, you know, clearly FY26 saw a massive 65% increase in GMB growth, you know, and almost two thirds of that business is dot and key. And you talked about how distribution expansion, portfolio expansion actually led to that growth. What I want to understand is there's a wide difference between an 1,800 crore GMV brand and the next one is 400 odd crores. To sustain this kind of 50-60% growth, Do we then need another new brand in this portfolio? I'm just trying to gauge, you know, how should one think about the growth of this portfolio here in FY27, considering, you know, it did really well in FY26. So, any more thoughts there? Yeah.

Okay, Avita, you go first.

Like I stated before, you know, I think the growth has to be on the back of both the existing brands accelerating. And I think there's, you know, still considerable growth for Dot and Key to be had. But there's also a lot of potential in those next two makeup brands that I mentioned, where there's a larger, you know, market share gain that is possible. And so there's a big acceleration there possible as well. And then I think the second part of it is making sure that we have, you know, new engines that also come in place which start to file. So, it is also about laying the right portfolio that delivers consistent growth over the next, you know, five years, ten years, rather than just year-on-year as well.

Yeah, I just wanted to add to that that actually the weightage of dot income may not be as high, I mean, that high as you spelled it out. But it's significant. But I think, like Ajwata has been saying, it's a portfolio approach. And if you have three, four brands who are at one-third the turnover, but growing 65% or 100% is very much possible. So I think on a portfolio basis, we remain confident that we can deliver high growth. Nowhere are we claiming that we will deliver 65% year-on-year growth forever for the next five years. I think we've been good at guiding over a three-year or a five-year growth, and I think, like we said, we see a very big opportunity in building a house of grants, and we have a big ambition. I think we have an annual day coming up soon, in about a month and a half, and at that time, we'll make an effort to explain the entire plan more in this year. But in many brands, like that also, that I've been saying, in different brands, there are different opportunities. You know, .NTs of the size and scale are based on more e-commerce success, and a lot can be done on physical and GTMT rollout, and even international forays can be considered for many brands. And, you know, skin is a different space than makeup, so the two can't be compared. So I think everything has to be seen in the context of size of the tan that they play in, and what do they do well, and what are their assets, and how can they take them and leverage them forward. Okay, okay.

Understood. All right. So, I just looked at 1800 cross GMD versus 2788. Just last two questions. What's the salience of NICA now for you in FY26 or as you exited the year? And any specific call-outs on, you know, offline store expansion targets for FY27? Thank you.

So, yeah, on the second question around

retail, brick-and-mortar expansion, at this point in time, we're thinking it will be similar to what it was in FY26, so, you know, similar $50 to $60 or $70. And we're already now covering the top 99 cities, so it's more about now increasing the density of our store network in Tier 2, Tier 3 towns to get to, you know, to... To maybe anywhere from two to five stores per city in these tier two, tier three towns. So we have said in the past that the plan was to get to about 500 stores over the next three to four years, and we said this about two years ago. So we're on track towards achieving that, you know, that number. So we can see about 170 or 180 doors more over the next two to three years, averages out to about 60, 50, 60 doors a year. So we're on track with that expansion. I'm sorry, what was your first question?

I have Nika now, you know, what's the salience in your overall GMV? Anything that you could share as you exited the year?

Yeah, so what I can share on Nykaa now is that last

year was the year of really building

out the network in terms of the rapid stores, as we call them, and today we're quite well covered in the top seven metros. So we have, I think, close to 75 or 80 rapid stores in the top seven metros that allows us to cover 80 to 90 percent of the relevant PIN codes in those metros with a delivery promise of about 30 minutes to two hours, which we think is adequate for the beauty and personal care space. Where we don't think the 10-minute delivery is required for our categories, and we're coupling that speed with a very unique assortment, right? We have the largest assortment of beauty and personal care products available on Naika now, given that we're a vertically specialized platform, and we don't have to stock other items in the dark stores. And on top of that, we're also able to offer our prestige portfolio of brands because we're using our retail stores also to fulfill Naika Now orders where required. So, I would say that now there is a meaningful percentage of our owners in the top seven metros that are being serviced through NICA now. In terms of the exact number, I don't think it's disclosed, but we can get back to you offline if that's something that we're comfortable to share. But this year, as I said, was a year of building out the density, getting the assortment right, and now in FY27, the plan is to really... We'll start to market Nykaa now more actively to our consumers, given that we have the assortment and the speed buttoned up. So you'll see us market it a lot more aggressively and hopefully start to see even better consumer traction. But so far, the consumer appreciation, obviously, for Nykaa has been huge because, you know, it's not something that they were expecting. And I think they've been pleasantly surprised with the speed which we're able to deliver. So now that we've got the product market fit, we're going to market it, and you start to see it contribute to a much more meaningful percentage of our overall orders in the coming quarters.

I completely agree with that for sure. Thank you so much, team, and wish you all the best.

Thank you. That was the last question we can take today. You may reach out to Naika's Investor Relations team for any additional queries. I would now like to hand the conference over to the management for closing comments. Thank you, Ann.

Thank you very much, everyone, for being on the call with us, and we look forward to seeing you again later in the year.

Thank you, members of the management. On behalf of FSN eCommerce Ventures Limited, that concludes this conference. We thank you for joining us and you may exit the meeting now. Thank you.