FSN E-Commerce Ventures Limited (NYKAA) Q2 2027 Earnings Call Transcript

Hi, good evening, everyone. This is Michelle, some chorus call. Welcome to FSN e-commerce ventures limited due to FY27 earnings conference call. From the management at NICA, we have Ms. Falguni Nair, Executive Jefferson, MD and CEO, Mr. Anjit Nair, Executive Director and CEO, Puji, Ms. Advaita Nair, Executive Director and Co-Founder and CEO of House of NICA Brand. Mr. Vishal Gupta, CEO, Naikar Distribution. Abhijit Dabbas, CEO, Naikar Fashion. 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 will consent 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 control. With that, over to you Falguni, ma'am, for opening remarks.

Good afternoon, everyone. It's a pleasure to be here with you to talk about our quarterly results. The second quarter, the September quarter, has ended well, with the GMB at 6,151 crores, which is a 30% year-on-year growth. And the net revenue has come out strongly at 3,006 crores, about 28% year-on-year growth. What is also heartening is that the gross profit margin stands at 31%, which is 1,382 crore. This is a margin of 31% growth in gross profit margin, and the margin stands at 46%. EBITDA is at 253 crores for the quarter, a 65% growth year-on-year, and the margin stands at 8.7%. And the profit after tax is at 101 crores, a 207% year-on-year growth, and the margin stands at 3.4%. So, clearly a good, strong quarter in a period where the festive has shifted to the third quarter. So, in light of that, this is clearly a good result. I'll move on to the next slide, which is the first half performance. On the first half, the net revenue stands at 5,788 floors, or 29% year-round-year growth. And gross profit margin at 45.9%, which is 2,657 crores. A bid out for the first half at 499 crores. Again, a 66% year-on-year growth and a margin of 8.6%. And the PAC at 181 crores, a 215% year-on-year growth, with a PAC margin at 3.1%. So clearly, the first half has been reasonably strong, with the second quarter being slightly improved compared to the first quarter. This is the number for beauty and fashion. On the beauty, we saw a healthy growth rate of 28% on a year-on-year basis for the beauty vertical. And this, on a first half basis, is at 29% year-on-year growth. With the first half number at 4,907 crores of NSV, and the fashion, the same numbers are 509 crore for the quarter two of this year, which is 47% year-on-year growth, a pretty strong momentum, and if you were to look at it on a first half basis, NSV stands at 960 crores, which is a 50% year-on-year growth. The EBITDA margin, again, a strong result. The EBITDA margin for the quarter this year has come out at 260 crores the second quarter, which when compared to 170 crores a year ago, is an EBITDA margin improvement to 10.5%. Significant improvement from 9% that it was about a year earlier. And on a first-half basis, the improvement is similar. On the fashion side, against the loss of minus 12 crores in second quarter of 26, we are break-even at about just 1 crore margin. A positive margin, which is 0.2%. So the EBITDA margin for fashion for this quarter is improved from minus 3.52, which is break-even at 0.2%. And for the first half also, the picture is similar, where again, so 30 crore loss in the first quarter, 30 crore loss in the first quarter at 4.5%. 7%, this was the picture last year, and the picture this year is that we are, again, break-even, which is about 1 crore of our revenue, and that is about 0.1% of our MSP.

Next.

I think if you were to look at the picture longer term, I'm really happy to see that there has been substantial improvement both in turnover. So revenue has grown from 1,500 crores in second quarter of financial year 24. So over three years, this revenue has grown now to 3,000 crores, doubled over a three-year period. And also the growth has been accelerating. You can clearly see that the growth has now accelerated to almost 28% year-on-year revenue growth for the latest quarter. On return on capital employed also, the story has been similar. You can see that from a return on capital employed, which was only 6% three years ago, it now stands at solid 27.3%. And it's the details of the capital employed I'm given that capital employed pretty much stands. Compared to 1,786 rolls in the second quarter of 24, it now stands at 2,566 rolls. So, NICA has managed to achieve scale as well as margin improvement, and the capital efficiency is also improving in terms of return on capital effort. Next. So, the big wins this quarter. If you see the big wins this quarter, again, we have the fourth NICA LAN 4.0, the fourth version of NICA LAN in Delhi again this year. A fabulous attendance against 30,000 attendees, and if you look at it over four years, Naikaland has had 100,000 views to enthousiast visit across its four editions. And the social media reach of this event also tends to be magnified multifold, with total social media reach of 150 million across four editions. We have seen acceleration in launches to bring globally trending beauty brands. So, beauty business has been able to continue to convince the global majors, and now fashion also joins that party, and both of them have been convincing the global beauty and fashion brands that Naika is the platform to live on. And with that, we saw unique partnerships with Me Rocher, Ori, Rare Beauty on the fashion side called Superdry, as well as Working Store. The brand's launch in the last one year alone are 340 plus of the beauty side and 1,700 plus of the fashion side. So clearly, the platform is getting wider and more meaningful in its ability to serve to the customer. We also saw launch of Nykaa Fashion Luxe. We've had a fantastic business on the beauty side, on the luxe side, and I think we are now starting with focus on Nykaa Luxe Fashion as a luxe store-in-store environment, and we do believe that we've been able to get a fairly good set of brands to launch with us initially, and this will continue to grow as we go forward. Another interesting acquisition that I'm really happy to announce on the back of Amino that was announced last quarter is that House of NICA has unlocked yet another new growth factor through acquisition of a brand called Simply Now. This is a brand by Namrata Soni, a beauty makeup professional, extremely well-respected in India, with all of the celebrity artists being heard, customers, and a very trusted name in the beauty industry. And we are really happy to announce the acquisition of her brand, and she will be singing on for a long period to be partnered with us in that business. On NARCA, another very interesting announcement is our partnership with L'Oreal in terms of NARCA and L'Oreal both. This is a strategic partnership to invest in the next generation of high-growth Indian beauty and personal care brands. And this is actually unique, and I think it brings the full power of two global beauty majors, NICA in India and Loria globally, and this would be a partnership that would be an important strategic partnership for any brand that goes into India. And through this, the ecosystem goes, like we are able to give back to the beauty ecosystem and also the two brands benefit from being able to participate in the growth of beauty brands in the country. I'm happy to say that the annualized GMB that now Nika caters to across our platform is $2.6 billion GMB in the second quarter, a 55 million cumulative customer base, a 32% year-on-year growth, and also, of course, we now have 338 beauty stores, almost 73 stores that are in the last one year alone. With that, I have moved on to Unchip to take us to the beauty presentation.

Yeah, thank you very much.

So, Q2 has been a strong quarter for the duty business as well, with GMV growing 25% to over 4,400 crores, and NSV growing at a pass-to-clip at 28% to 2,500-plus crores. On the profitability front, EBITDA is up 51% year-over-year and has crossed 10% EBITDA margin for the first time. And this strong growth and profitability is on the back of strong customer, new customer acquisition on the beauty.com business, as well as the premiumization and strong customer engagement from our repeat customers. Also, a point to note is the retail business has performed well, and this business has delivered a very strong early 20s, like-for-like growth,

the highest we've managed to deliver in the past. In terms of the consumer momentum, again, it's strong in Q2.

We continue to expand the reach conversion and optimize our spend as well as the consumer spends improving on the beauty vertical. So in terms of monthly activity visitors. That has grown at more than 30%, which is testament to the fact that we have continued to improve the engagement and the kind of activities we are now doing on our platform is highly engaging for our consumers, and that's reflecting in the active, once the active unique visitors. In terms of annually transacting customers, that is now at 22.1 million. And again, on the back of both strong customer acquisition as well as stronger engagement from existing repeat buyers. Finally, on AOV, we have seen a 5% increase year over year. So I would say healthy AOV improvement on the back of premiumization of brands that are being bought on the platform, thanks in part to a lot of the work that we have done as a retail platform on improving the education awareness. For premium brands and premium products, and that is now reflecting in the AOV mix as well.

This year, as mentioned earlier, was a great year

and especially a good quarter for new brand launches. Several high-profile global brand launches on the platform include Evershare, which is a French plant-based skincare and color cosmetics brand. Ouri, which is a U.S.-based professional hair care, luxury professional hair care brand, and Momon, a trending viral Korean skincare brand owned by the Amore Pacific Group, where the three launches this quarter that were not only global brands in terms of their level of awareness for these brands, but these are also brands that were launched exclusively. And I'll talk about that more in the subsequent slides. In terms of overall brand addition, for the year, it was over 350, and many global brands that launched exclusively on NYCHA, not just this past quarter, but earlier in the year, include brands such as Laloche Botte, which is the leading skincare brand globally owned by the L'Oreal Group. Anua, a trending Korean brand out of Korea. Aksura, owned by the Amoreo Pacific Group, the number one Derm. Germat-backed skincare brand out of Korea,

NSA2, which is a prestige skincare brand owned by P&G.

You know, we continue to be seen as the partner of choice, not only for retailing or listing products and brands in India, but more importantly, for being the go-to-market partner of choice. And what I mean by that is Nika offers the services of enabling a brand to import, register, price, handling supply chain, warehousing, end-to-end services for our brand partners. And we do that through our distribution arm that is called the NYCA Global Store. And it's exciting for third-party global brands to partner with NYCA because, of course, we have tremendous local expertise. We understand the market well, and we're a specialty retailer. But on top of that, we also have the scale in terms of our 52 million-plus beauty shopper base being the largest specialty retailer in beauty. And having very wide, you know, distribution to both our .com as well as our retail channels. Second, we are in marketing. We are a locally relevant marketing engine. Full-stack marketing services are offered to the brand partners across content creators, events and experiences, performance and digital marketing services. So end-to-end full-stack marketing is something which we're able to offer to these global brands looking to distribute and retail in India. And third, of course, we own, you know, multiple channels through which to reach the consumers. Of course, we've got online channels like Nika.com and Nika Man. We also now are offering the ability to run direct-to-consumer websites on behalf of our global store brand partners. Second, we are also now offering the ability to run freestanding stores on behalf of our brand partners, as well as distributing them through our multi-brand specialty stores. And last but definitely not least, giving them the ability to distribute even more widely across the half a million general trade, modern trade retailers, which we touch currently through our B2B superstore arm as well. So local expertise, large consumer base. Full stack marketing services, as well as wide distribution and reach through multiple channels. I think it's a very attractive proposition for global brands looking to go to market in India with the right partner. And I think it's reflecting in the fact that currently we have over 45 brands already who partnered with us through NACA Global Store. And these brands are growing at over 60%. Year-over-year, which is more than double the growth rate of the overall platform. So not only are they getting the benefit of working with Naika, they're also seeing accelerated growth because of the relationship.

And some examples of the brands who are working with us through this business model are listed on the slide as well. Next slide, please. So here are some, I would say, key

call-outs from our global store, some case studies of exceptional outcomes we've delivered from global brands. Korean brands are a big part of the overall portfolio, given that Korean beauty is trending and doing well, not just in India, but globally. Today, 34% of the total Korean beauty business that is done on Nykaa. It's being done by brands who are currently coming to the Nika Global Store, and these brands are growing at a GMB of two and a half times that of

other Korean brands on the platform. Secondly, the Global Nika Global Store has been a great way for us to bring

luxury brands into the market, and currently there are 17 brands, 17 global luxury brands that are being distributed via the Nika Global Store. Talking about the unique end-to-end partnerships, as I mentioned in the previous slide, today we are now also offering brands the ability to manage, not just retailing them on Nykaa's platforms, but also operating their standalone direct-to-consumer website, as well as building and operating their freestanding stores as part of their overall. Go-to-market strategy. And currently, we are live with this for Heal, which is a skincare brand owned by L'Oreal, as well as for Charlotte Tilbury, which is a makeup brand, a highly popular makeup brand that is owned by the Pooch Group. And finally, we do a tremendous amount of education in brand building, locally relevant brand building for a lot of these brands. So offering everything from Everything from FSS, Resetting Stores, to .com, to marketing services. These are just some examples of the work we do on

behalf of these MicroGlobal store brand partners.

Finally, as was mentioned, this was the fourth edition of Nykaa Land, and Nykaa Land continues to get bigger and better every year. It is an industry-defining event. It is an event that helps to continue to grow the awareness and grow, I would say, the appreciation for all things beauty in the country. It is probably one of the largest events of its kind globally. And you can see that the attendance was quite meaningful, but more equally important was the kind of social amplification and reach that our content that is created at these events are able to get, and that is upwards of 150 million of social channels itself from over 1,500 content creators, celebrities, and opinion leaders who attended the event. In addition, we have some of the best brands participate in this year's Laika Land, all the way from international luxury brands to homegrown D2C, as well as fashion, lifestyle, and upcoming wellness,

and Korean brands as well participate in this year's Laika Land. Talking a bit about retail, we have just about

slightly more than double the store network over the past few to four years, and expanded the number of cities to 111. There is today 253 of our 338 stores are multi-brand format stores. 69 of our stores are now house of NICA, either kiosks or small format stores. And we've seen...

Brand boutiques are currently being operated by us, 14 for Kiehl's, and currently two for Charlotte Tilbury, and 14 new stores were added in the

quarter, but I think what's most important to spend a minute on is the kind of growth engine that are starting to really bear fruit on the retail business. You can see that like-for-like, same-store sales growth is up 20% plus, which is the highest same-store sales growth we have had in the past several quarters and past several years as well. In terms of our annual unique transacting customers, we have almost quadrupled the AUTC count in our retail division over the past several years. And finally, The general thematic that we saw across, we're seeing across both online and offline is Nika's efforts to premiumize the consumer's basket is being dividend, and in retail as well, you can see that the average order values in retail today are 40% higher than they were several years before. Pressing upon Naika Now, which has been probably one of our newest initiatives on the beauty side, but quickly, rapidly scaling. Today, Naika Now offers the largest assortment of beauty and wellness assortment in India on any platform for delivery within 30 to 60 minutes. And not only are we different because of the sheer width of the assortment we offer, which is... Over 1,000 marquee brands, as well as at an FDU level, the depth of our FDU count on offers through Nika now is more than double that of the other quick commerce players in the state. But I think the other thing that's very interesting about this business is that we are offering across price points from mass all the way to premium and giving consumers the ability to buy. And receive premium and prestige beauty products within 30 minutes to 45 minutes is an unparalleled experience in the country today. And of course, Leica has always been associated with authenticity and trust, given the way our business has been built over many years. And I think that is, again, reinforcing our belief and our right to build meaningful market share in the quick commerce space.

As Nikonov continues to scale ahead of our expectations over the next several quarters, and on the right, you can just see some of the advertisements and

marketing we did for Nikonov in this past quarter, a very, very, you know, a very fun ad advertisement was done between Sharwadi

and Shibach Chanda, and it's worth watching. Finally, as was touched upon in the opening remarks,

NICA has a very longstanding relationship with the L'Oreal group. It's a relationship that has been now over 10 years in the making. We have worked together as we have worked with L'Oreal as a key retailer of theirs across different divisions from their consumer product division all the way to their luxury division. As I mentioned, we have also now And finally, as we continue to take this relationship deeper, we have signed the partnership to potentially invest in the next generation of high-growth beauty brands in the country. And this is something that we're excited about because we think with NICA's distribution and local specialization and L'Oreal's global. Expertise and R&E capabilities for, you know, for any young B2C brand in the market today, this combination, I think, is a very attractive one as they look to

their own capital and fundraising requirements. And with that, I'll hand it over to Advaita to take you to the House of Naika.

Hi, everyone. Good evening. Today, we'll talk about the House of Naika. As of this quarter, the annualized GMD run rate is at 4,000 crores and an annualized NSV number of 2,300. NSV has grown at 36% year-on-year. As a reminder, we're talking about eight brands across the beauty ecosystem, which is shown on the right-hand side, and we're talking about five brands on the fashion side. Across our brands, we've served 19 million consumers to date, and in terms of distribution, we continue to retail on NICA platforms, NICA offline, but also a large network of offline stores in the general trade, modern trade space, as well as DTC websites, third-party marketplaces, and an international presence. We continue to build this business out holistically such that the brands are truly brands and not private labels, and in that sense, they will have complete 360-degree distribution, and those are capabilities we've been building these last couple of months.

Moving on.

Here we show the NSV trajectory over the last couple of years. You can see how this business from 2024 in a particular quarter did 150 scores of NSV. And in this past quarter, we've done 535. So it's a 3x growth in terms of NSV. And year-on-year, growth of 39%. On the right-hand side, we can see how that splits across various channels. And so we are building a diversified set of sales across Nykaa channels, offline, online, 3P, and what is proprietary to us.

Okay, move on.

The three large brands that... I have really established themselves very clearly in the market, and leadership positions are number one dot and key, which continues to grow from strength to strength. It remains, you know, one of the absolute top skincare brands in the country with 1,300 crores of annualized NSV. This quarter... The team delivered strong innovation from a tinted sunscreen perspective and also launched a Dragon Fruit Jelly bounce moisturizer. The innovations have continued to make the brand very relevant, and we're seeing good and strong growth in this brand. Similarly, very strong growth coming out of K-Beauty, a makeup brand with Katrina Kaif, which has now an annualized run rate of 350 crores, again, going extremely strongly and gaining market and leadership ranks across all platforms and distribution banks. It's also a brand that we continue to focus internationally, and we're deepening our efforts in the UK with a visit that Katrina recently made to the market. On the right-hand side, we have Nykaa Cosmetics, which is now a 300-core brand, also growing well, and the brand continues to focus on bringing accessible, trendy, beauty-forward products to the market in a timely manner made for the Indian consumer and therefore fills a very appropriate positioning that was to be taken.

Moving on.

On this slide, you see some of our other brands, which are smaller in size but are growing very fast, whether that's like our Wanderlust, our Bath & Body brand, whether it's Earth Rhythm, which is our clean beauty, potent natural ingredients, meeting active skin care, whether it's Maison Mois, which is one of our recent launches. It's a premium fragrance brand that we're very, very excited about. We feel fragrance is an opportunity we definitely want to lean in on. And whether it's the mean win acquisition we announced last quarter. Which is a premium Dama Cosmetics brand, which has very strong innovation and R&D capabilities. This quarter, we're also announcing an acquisition of an 82% stake in Simply NAM. Simply NAM is a brand that has really caught our eye, and we're very excited about this. It's an expert-backed beauty brand that was founded by celebrity makeup artist Namrita Soni, who is truly a stalwart in the industry. And we're excited to work with her to really build a formidable, premium, makeup artistry-led, expert-led brand. As of now, this brand in FY26 had a net revenue of 17 crores and has seen 5x growth in the last four years. The brand is very much focused on Namita's philosophy when it comes to makeup and the products that she thinks are essential. What we're really looking forward to in this partnership is exactly that, her philosophy, her ethos, her focus on R&D, on formulation, and bringing that expertise. So this is a brand that will be more premium than the makeup brands that we currently work on and will be more focused on makeup artistry and expertise in delivering that to the Indian consumer. We can move on. In terms of where this fits in into our portfolio, over the last three to four quarters, as you can see, we've been trying to thoughtfully put together a portfolio of brands that is truly enduring, and on this chart here, you see brands that we've had and been building over the last couple of years. You see acquisitions, which are in the pink bubbles, and you see more recent acquisitions, which are in the squares. So between, you know, what we're building internally, whether that's K, Nica Cosmetics, Wanderlust, our perfume franchises, which we decided to build internally, versus things that, you know, we've acquired, whether it's Dot & Key, Earth Rhythm, Amino, and now SimplyNam, we are working thoughtfully on really how to fill out the portfolio in a way that makes sense, in a way where we're seeing a lot of growth, a lot of opportunities, where there's an ability to build something differentiated. I think for us, you know, building more in mass premium, building in more specialized, differentiation, expert-led is really the play that we're going to be going after.

Moving on. In terms of where Simply NAMM fits in into our makeup portfolio,

as some of you will rightfully ask, where does it fit in? And so we have two makeup brands today, Nykaa Cosmetics and K-Beauty. Nykaa Cosmetics really is about the trendiest makeup for the young consumers, brought to them in a very timely manner. It plays at 300 to 750 rupees or so price point. K-Beauty, which is a partnership we very much value with Katrina Kaif, brings her beauty expertise to life through high-performance, skincare-infused makeup. It has a lot of glamour in the brand, and that's the brand with wonderful products at 750 to about 1,200. And then when we talk about Simply Nam, that's going to be built very much around her makeup artistry expertise and philosophy of enhancing natural beauty. And that will play at $1250 to $2000. So there's a laddering within makeup that we're very focused on. Moving on. In terms of the transaction structure, we'll be acquiring 82% for $33. Namita Soni will continue to own 18% and serve as co-founder and chief product officer. And we'll be bringing, you know, Nyga's reach, scale, and capabilities to her lens of innovation, formulations, and education. And this transaction is expected to close in quarter three, subject to regulatory approvals.

With that, I'll hand over to Vishal to walk us through Superstore.

Thanks, Arvita. Hello, everyone. Happy to share that Superstore also had a very good quarter where we improved our scale by close to 30%. We grew our onboarded retailer network by 27%, reaching more than half a million onboarded retailer base. We expanded to 100 more cities, taking us to 1,200 cities. We grew NSV at 28%. So, the difference between GMV and NSV is half because of the GST-led impact where the GST, as you all know, came down last year. I had already spoken about this in the previous call where I had said that we will lap this out from Q3. So from Q3 onwards, you will see the gap between NSV and GMV narrowing down. And half the gap is due to our own efforts in improving cancellations and returns, etc. So leakage reduction. So overall, net-net, we have improved our scale by 27-28%, which is very much in line with what we had shared in our investor day. Next. Now, the interesting thing is that this improvement in scale came by zero increase in our offline BD headcount, which remains stable at 2300, while we onboarded more retailers and serviced more retailers. You can see in the top right that per retailer, we are now servicing 26% more retailers, which really brings to fore the focus we are making in improving their productivity. And there, you know, GMV per BD went up by 14%. In fact, NSV went up by 28%. So, good improvement in productivity.

Next.

And this ultimately lands in the P&L as a 363 BIPs improvement in S&D expense, that along with improvement in fulfillment expense, you know, which is an improvement in spite of the, you know, a little bit more money we had to give as part of the new labor code. So, overall, our EBITDA continues to improve and we improved by 370 BIPs. Next. Our scale is actually quite mouth-watering to our brand partners, and we continue to attract new brand partners. You can see the scale of our brands, which continues to go up, and we attract new brands. All the D2C brands sort of want to work with us across categories, and you can see a handful of them listed on this chart. Yeah, next. As I said, you know, we... We are building a platform that is not in the long term going to be dependent on salespeople. So we are building habit of retailers to come on our app, and therefore, you know, it becomes much more productive ecosystem where the retailers organically engage with our app and place orders. And to further that, we have revamped our app interface, making it much more personalized, much more simple and easier to see what is the right pricing, what are the deals, what are, you know, so we have used stuff like what they bought before, of course, their purchase history, what the nearby retailers are buying, you know, allowing for discovery of new brands with a high margin for them, you know, or our data science-led recommendations. So overall, you know, and we just launched this a few weeks ago. So we should see the impact of this as we go along. But we are and we continue to build our app and ecosystem, which, you know, which will encourage the retailers to engage on their own, which really, you know, brings a very productive overall ordering ecosystem.

Over to Abidito. Yeah, thanks, Vishal. Hi, good evening, everyone.

You know, once again, very happy to share that both on growth and profitability, our fashion business continues its trajectory, which we have consistently now been able to share over the past. You know, many quarters. As has been shared already, on the NSV side, as you can see, the last quarter we saw growth of 47%, 509 crore of net sales value in the last quarter, which was coming from 42% growth in GMV. So overall, very healthy growth. This growth has been possible on the back of continued addition of brands across different categories, you know, across women's and men's as well as some of the emerging categories like kids and to a lesser extent home and across many subcategories within that, you know, most particularly women's Western wear, men's fashion apparel, and sports have been very fast growing over the last quarter. As a result of the fast growth as well as improving efficiency both on marketing and overhead cost absorption, for the third successive quarter, we continue to be EBITDA positive, as was shared before, versus a minus 12 crore EBITDA in the corresponding quarter last year. This quarter, we were on a plus 1 crore EBITDA. So again, to recall, we broke even in quarter 4 of the previous fiscal year. And in the second quarter of this year, consistently, there's the third quarter where the business has been profitable, driven by structural

improvements in the underlying business. Next slide. Just a very quick snippet on the consumer funnel.

So as you can see, right from visits all the way to transacting customers and orders, we've seen healthy growth over the past quarter. But the key thing on this slide is that with a 25% year-on-year growth in visits, We have been able to deliver a much stronger growth in the number of transacting customers as well as orders, and that's because of a lot of product enhancements which have gone into improving conversion as a result of personalization as well as just a lot of use of AI and smart funnel optimization. The conversion has delivered significantly better outcomes in the previous quarter. The growth is driven not just by, you know, a strong repeat funnel, but also continued strong customer acquisition. The customer acquisition itself has increased 31% year on year. And as a result, the cumulative customer base for the fashion business alone is now 12 million plus customers, which is a sizable number. And, um... It continues to grow in a healthy manner. I should also point out that a lot of this customer addition is happening from the premium customer bases in the country, which is very over-indexed on iOS and premium Android devices, as we now like to look at. We don't any longer look at only the tier of city from where customers are coming from, but we look at the device type as a key indicator of the affluence of the customer, and we are very focused on acquiring premium customers as we speak. AOV continues to be leading in the industry. We continue to be the preeminent... Premium fashion platform for online shopping, AOV of close to 4,400 rupees. And I will talk a little bit about additions we've done to our Luxe portfolio a few slides down the line. And as I said, as a result of marketing optimization and product enhancement, our customer acquisition cost also for the 31% higher customer, you know, new customer growth. CAC itself is 30% down. So we are acquiring more customers and doing so more efficiently, which will show up in the marketing percentage spend that you will see a few slides on. Next slide. You know, these are just some examples of the 250-plus brands that we have added, and as you will see, many of these brands are... More premium as well as some luxe brands that always have been our focus. Some more prominent names are Super Dry, as was called out before, Anta Shoes, which is a very large global sportswear brand, Echo, and also from categories such as Home, you will see a brand like Sleep Well on this slide as well as Child Home. So, well-rounded brand addition across multiple categories, which continues to strengthen the assortment that we are able to offer to customers. Next slide. As you will recall, we had, you know, called out the launch of H&M in quarter three of financial year 26, which was a really marquee brand launch for the platform. And very quickly, H&M established itself as one of the top brands on our platform. We've been successively working with the H&M group to deepen the partnership with them because it's really a brand which we respect deeply and one which has shared objectives with us in being able to democratize premium fashion for the discerning customer in India. We followed that launch up with launching H&M Move as a sub-brand in quarter one of this financial year. And again, it's an example of... Being able to work with the brand to position it differently versus how it may be positioned on other platforms, we are a platform which prides ourselves on being able to lead with non-discounted sales, with being able to launch and give prominence to key propositions like these for our key brand partners. And most recently, in the previous quarter, we launched Koss, which is another landmark moment for us as a fashion platform. Koss, as some of you will know, belongs to the same group, the H&M group. Koss launched in India offline a few months ago, and this time launches exclusively online through Nykaa Fashion. And we are very excited with launching costs and already initial traction we are seeing in terms of numbers. Next slide. Again, doubling down on the point which was shared earlier about Nika Fashion Luxe as a separate proposition being launched in the previous couple of quarters, we now have, much like on beauty, we have a separate dedicated It's a great experience for our Luxe customers and Luxe brands. There is a shopping shop, which we launched a few months ago on Nykaa Fashion, which does luxury fashion very differently compared to what is available elsewhere in the industry. In our case, it is really a very curated mix of brands across both international luxury as well as Indian designer labels. You'll see many examples on this slide. We offer personalized concierge service, styling, customization, alterations, end-to-end support, even post-ordering online. And in our case, like always, we work only with authentic brand partners so that there is no question of trust in a consumer's mind. We've always had a very strong assortment of Indian designer labels. But over the past quarter, we have been able to onboard a very wide range of marquee international luxury brands. There are some examples shared on the slide here. You'll see, you know, very well-known names like Prada, Michael Kortz, Fendi, Cavalli, Valentino, and there are many, many others. And we believe that over the time to come, we will now be in the whole position to continue to grow the luxury business for us, which will have obvious benefits in terms of AOV as well as quality of business. That we are able to deliver. Next slide. I'll round off. This is the last slide in this section, but all of what I covered previously, the increasing scale as well as efficiency improvements across the funnel. Has translated into the EBITDA improvements. As you can see, you know, fulfillment expenses, in spite of us finding ways to deliver faster in keeping with customer expectations nowadays, we have been able to keep fulfillment expenses in check. Marketing and S&D expenses are significantly better. You know, more than 400 basis points better year on year. Overhead expenses are close to 200 basis points better. And as a result of all of that, we were able to deliver 370 basis points better EBITDA year on year. So overall, you know, very strong quarter and looking forward to quarter three. Over to you, Ganesh.

Thank you Abhijit and good evening, everyone. I'll now take you through our performance for the quarter as well as half year of FY27. As we can see, we continue to deliver strong growth with sharp acceleration with profitability. Quarter 2 was another quarter which was strong for NECA with growth remaining healthy across the business and profitability continuing to scale. Net revenue grew 28% YOY to 3,006 crore. Versus 2,346 a year ago. EBITDA has also grown well at 65% YOY to 233 crore and EBITDA margin expanding by 196 basis points to 8.7%. Our PAT growth has also moved up in tandem and has been very strong at 207%, taking PAT margin to 3.4% versus 1.4% a year ago.

Going to the next slide.

Micah's strong performance is evident in acceleration across both our business verticals. Beauty maintained its healthy momentum with NSV growth at 28% for the quarter versus a little lower at 27% a year ago. Passion has continued to build on its growth scale, delivering another stellar quarter with NSV growth of 47% versus 27% a year ago. On the profitability front, both businesses have continued to expand margins, supported by operating leverage and scale efficiencies, while we remain focused on investing behind growth opportunities.

Moving ahead. Yeah.

Let me now walk you through our consolidated performance for the second quarter of FY27. Revenue from operations grew 28%, reflecting healthy momentum across both beauty and fashion. Gross margin expanded by 106 basis points to 46%. This was supported by the rising contribution of House of Micah portfolio, along with an uptick in marketing income. Fulfillment expenses increased by 47 basis points as we continue to invest in our infrastructure expansion, which is leading to O2D efficiencies. The increase in fulfillment expenses has been offset by improvement in marketing and S&D and also leverage on employee expenses and overheads. Marketing and S&D expenses as a percentage of revenue has improved by 50 basis points to 15.2%. Down from 15.7 a year ago. This reflects better efficiency in performance marketing spend across both beauty and fashion platforms, along with improved VE productivity on our superstore business. Similarly, employee and other expenses as a percentage of revenue has also improved by 87 basis points to 11.9% from 12.8% a year ago, reflecting scale efficiencies and productivity gains across the organization. Taken together, these factors have resulted in an EBITDA growth of 65% YOY, which is a sharp 196 basis points expansion in EBITDA margin, taking it to 8.7%. Moving to the next slide, here you get a snapshot of our vertical reporting, which provides an in-depth performance details across both our business verticals. At the vertical level, as we can see, both businesses have continued to improve meaningfully on growth as well as profitability. Both beauty and fashion have seen an acceleration in revenue growth on a worthwhile basis and a notable margin expansion benefiting from scale, operating leverage, efficiencies, and productivity gains.

Moving ahead.

Yeah, the next slide is similarly a snapshot of a vertical recording for H1F527, which is reflecting a similar pattern.

Moving to the next slide.

Here, when we look at our capex, it remains quite steady at about 1% of revenue, even as we continue to invest in key growth areas, including retail store expansion, fulfillment capabilities, as well as in tech. This reflects our continued focus on capital efficiency.

Moving to the next slide.

Overall, from a balance sheet point of view, we want to sum up, what we can see is that NICA has maintained a disciplined approach to capital utilization with a focus on long-term value creation. As profitability continues to improve, we are also seeing a steady improvement in capital efficiency and this is resulting in a stronger balance sheet. Fixed asset turnover, Increased to 10.8x in H1 Fi27, compared to 9.9 in Fi26, reflecting the increasing salience of our asset-light businesses. Working capital days, which were already healthy at 28 days in Fi26, have remained stable at a similar level for H1 Fi27. Together, with the improvement in profitability and capital efficiency, this has driven a sharp improvement in ROC, which is now up at 27.3% in H1-FI27. So, overall, to conclude, NICA has delivered yet another strong quarter with healthy growth across both verticals, continued margin expansion, and a meaningful improvement in capital efficiency. We remain focused on balancing investments beyond customer acquisition, infrastructure, and future growth opportunities with disciplined execution and improving operating leverage. With our differentiated omnichannel approach, powerful brand ecosystem, and sharper operating leverage, we remain confident in our ability to create sustainable long-term value for our stakeholders.

With that, we will now open the floor for questions.

Thank you very much, sir.

We will now begin the question and answer session. If you would like to ask a question, please click on a video question tab. Before asking the questions 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 a maximum of two questions so we can accommodate as many as possible. Please and gentlemen, we will wait for a moment while the question queue assembles.

The first question is from Vidisha Saeed from Ambid Kapiti. Please go ahead.

Ms. Tate, please unmute yourself and speak.

As there is no response, we'll move on to the next question from Kapil Singh. Please introduce yourself and speak.

Hi, good evening. I hope I'm audible. Pardon? Yes.

Okay, great.

Congratulations on another strong quarter. I had a few questions on AI. You know, we are seeing possibly increased pace of new brand launches with AI. So just wanted your perspective on this. Is this an opportunity for Nika or how do you perceive the threat for house of Nika? And the second subpart of the question is that we are also seeing a trend of AI shopping agents emerging. Is there a risk of consumers bypassing NICA's platform for product discovery and purchases, and how are you preparing for this?

I think I will take the question and I'll answer the second part first. I think on the second part about AI agents and what they want to complete the transaction on like our or elsewhere depends. And I think the emergence is not like, obviously, AI agents cannot optimize only one outcome. They would have to look into what the consumer mindset is about how to complete the transaction. So I feel that the company tends to have a lot of moat in terms of, you know, large assortment, unique assortment of, you know, faster deliveries, high-quality advice, and matching the consumer's desire with the right products, which has been a big discovery-led category that Nika is, you know, where it's a question of leading the consumer mindset and surfacing the right products when Nika has done some great work. So I think there are enough modes that make us believe that NICA will continue to be a meaningful contributor in, you know, an energetic world. And NICA is doing everything, not just wishing, but doing everything to make sure that the partnerships and the platforms are ready to be playing that role, you know, in an energetic, dominated world. So that's the answer to the second question. On the first one, I think we do believe that it's not just due to AI, but in general, beauty as a category is seeing a lot of brand proliferation, and not just in India, but all over the world. So in every market, whether it be US, Korea, China, there is a lot of brand proliferation. I was recently in China where almost 20,000 brands are launched annually and 15,000 shut down. And I think the retailer role where a lot of customers are already there and they're coming to discover great new brands is an important role in such an ecosystem. So I think even when NECA was first set up, it was with a clear understanding that beauty as a category has a lot of brand proliferation and that is good for the retailers. So I think we want to continue to play the role in allowing brands to be discovered by the right customers and also being that platform where new brands get discovered, but at the same time, the customer is also able to choose the right brand that matches them. So a lot of personalization, a lot of... We are working on a customer cube where a lot of information about the customer will be there that will allow us to match what would complete the transaction, and all that will be evident in the conversion and in the efficiency of the platform, and we are seeing some of that.

Okay.

Thanks a lot for that. And the second question was on NICA Now. Could you comment on the economics of NICA Now? What are the contribution margins after fulfillment and last mile delivery costs? And how do they compare to the whole platform? And also on the scalability, what do you think, what's the experience so far?

Yeah, maybe I'll come in.

So, you know, we're not, we are not disclosing separate standard financials for NECA now, but direction what I can tell you is that it is, it is not very different from the mainline order, both in terms of cost of servicing, nor in terms of the, you know, the average order values at this point in time. You know, there's a possibility that the AOVs could be slightly lower for a NICA now order versus a mainline order because customers don't need to wait to build a basket. They can just pick up products and check out. And also the plan is to help us, is to help NICA now to really grow our market share on personal care academies as well, which has historically not been an area where we have focused. There could be some impact on AOV or NikaNOW orders, but we believe that the higher frequency of purchase that NikaNOW will facilitate will more than offset that, when I look at it from an annual consumption value perspective. In terms of the other costs, I think the main cost is fulfillment, and that, as I said, it's not materially different. From the cost of servicing a mainline order, a Naika Now order. So, yeah, I think that's how much we're sharing at this point in time with regards to Naika Now. As I said, we're very confident this will help us to really bring incremental demand to the platform, both in terms of the number of orders placed by consumers, but also ultimately in the annual. Total consumption value of the shoppers on the platform by having this capability live.

So, I know that doesn't fully answer your question, but that's the best we can do at this point in time.

No, it gives very good color. Thank you so much and best wishes.

Thank you.

The next question is from Aditya Soman. Please introduce yourself and proceed with the questions.

Hi, good evening. Can you hear me?

Please proceed.

Yeah, hi, thanks. So, two questions from me. Firstly, we've seen you indicated very strong like for like low despite sort of 26% increase in retail growth in the beauty business. So, one, what is driving this? Is there a significant component of pricing just given that we've seen inflation? And second question on the fashion side, can you sort of give some sort of quantification of the impact of, let's say, the relationship with H&M and Nike and what that's done to the business, particularly with regards to sort of this massive activation and customer addition? So you talked about 31% new customers, but at a lower cap, so would these sort of partnerships have played a big part in this?

Thanks.

Sorry.

Can you just repeat the question?

Yeah. So the first question was on the beauty side, where we've seen 20% plus life for life growth, and this is despite a very strong retail-based digital stock area addition. So what's driven this, and what proportion of this is pricing, if you can give us a sense, given that we've had strong inflation? And the second question was on the fashion side. So, can you give us some sense of how much this relationship with H&M or Nike have contributed to this acceleration in customer acquisition and the lower gap? If you can quantify that.

Yeah, sure. So I think on beauty, the growth is obviously a segment growth, which reflects both a strong growth in beauty, omni-channel, vertical, which is driven by new customer acquisition as well as type teamization through AOB increases and maintaining of, you know, returning customer. You can see the annual unique transacting customer also has been growing strongly. So I think everything is working well for beauty, driven by assortment and momentum on assortment and also now, Nika now for quick delivery. So I think everything's coming together for beauty omni-channel business. It is slightly uplifted by growth in House of Naika and also retail, which are both growing a little ahead. This quarter, the superstore was slightly lagging behind. So overall, I think the segment growth tends to be similar to... H&M and Nike, there are certain categories that are going strong. Thank you. It's reflected in those results, and it is reflected in the growth momentum that we have experienced. The entire, you know, fashion business is, you know, this is at the summary level, and I think we do. the line items of segmental reporting. What it is doing is that the higher growth is allowing us to improve in terms of, you know, you know, fulfillment is slightly better, marketing costs are slightly lower vis-a-vis, you know, actually vis-a-vis a year ago, marketing costs are significantly lower. There is almost a 350 basis for improvement. In marketing costs, and you're also seeing that other expenses are also being spread over larger turnover, and hence there is an improvement from those coming down from 13% to 11.1%. So overall, there is close to 350 basis point improvement in the fashion margin driven by strong.

Thanks. And if I just may follow up on the first point. So, would it be fair to say then that the sort of contribution from inflation isn't very large? It would be more holistic in the sense of premium education driving that AOV uplift?

Yes, we believe that it's premium driving AOV uplift rather than inflation. On fashion, I just wanted to say that we've also been sharing that the assortment on the fashion platform is going very wide and is growing in every category. So even that is driving. So it's not driven by only a couple of big players. Of course, they have a role in our growth.

No, very clear, and thank you for that answer. Very strong to those thanks.

Thank you. The next question is from Sachin Salgankar. Please introduce yourself and proceed to the questions.

Thank you for the opportunity. This is Sachin Selvalkar from Bofa Securities. My first question is on advertising. Any sense in terms of, you know, where ad revenues as a percentage of GMB is there for both businesses? And are we seeing brands change the way they advertise heading into this entire new world of Asian TKI? Because, you know, I mean, this is multiple interactions, what we are having. Brands across platforms are looking to advertise in a different way. A question out here is, you know, should we see some change, you know, because of Agent TGA in terms of how they're advertising, or should add as a percentage of GMB continue to increase for Nike?

I can take it.

So I think it's been a good quarter when I look at the monetization piece or what we call it marketing income as services and marketing income at NICA. On the beauty side of the business, it's been a strong quarter. There's definitely been a recovery over the past several quarters. And we continue to remain very optimistic that, you know, as we are and continue to be the largest destination for the most relevant basis shoppers in the country, when it comes to the beauty category for beauty brands, to get access to not just the scale of the customers we have, but also the quality of customers we have is a very unique and quite a targeted. A cohort of consumers that they want to have, that they want to have the ability to speak to and engage with. So the, you know, the strength of the platform in that sense is well known to the advertisers, and they appreciate that. And I think, as I've spoken about in the past couple of quarters, We've also invested this past, you know, year, year and a half behind building more capabilities for advertisers, more opportunities for advertisers to be able to spend on the platform across the funnel and sharing a lot more real-time consumer insights and, you know, ad performance metrics with the advertisers. So I think by creating more opportunities, To advertise as well as being able to share real-time data and tracking of performance campaigns. And on top of that, of course, just the sheer scale and relevance of our shopper base, I think it's a very attractive and continues to become more of an attractive proposition for advertisers. So, if there is going to be a shift in budgets, I think it's going to continue to be away from traditional forms of media into more new age digital forms of media. And I think advertising on e-commerce and quick commerce platforms like Nika is probably the direction in which a lot of those advertising dollars will move. So, yeah, I hope that answers the question.

Yes, Vansha, when we talk to good commerce platforms and others, they do say around 3% to 4% of the GMB is around ad revenue. Is Naika similar, higher, lower? How should one think about the range?

No, I think if we were going to share, it's not disclosed, but...

I think you would have to judge it from standard retail margins to what NICAG margins are, and I think it tends to be much higher. I think you would have to judge it based on the overall gross margins that we report.

And Falun, does that mean are we coming at a ceiling? Because what you're alluding to is, you know, pretty high ad as a percentage of GMB. And typically at 5-6%, you know, ad as a percentage of GMB does cap for most companies.

I think it depends on how you convert and what results you deliver and what is the efficiency, what is the ROI that the brands enjoy on your platform. So, the better your conversions, the better your… You know, you add to the brand partners. So I don't think so. I think like I was doing a lot of work on building a strong ad platform that, you know, that allows users, I mean, brand partners to do marketing in a manner that they used to on platforms like Amazon, and a lot of that work. It has gone in over the last two years, and yeah, we do believe that we'd like to, you know, I think we are able to maintain our marketing. But I think, I mean, we're still very retail-dominated numbers, but over time, like, how this NICA does not have had income. You know, superstore and low ad income, but that can grow. Fashion and low ad income, that can grow. So there are always competing vectors, you know, in our own of our validated numbers.

Got it.

And my second question is on fashion EBITDA margins.

Clearly, like any internet business, fashion margins have shown a sharp hockey stick kind of an improvement in the last four out quarters. You did mention reasons for that with scale improving, marketing expenses coming down. The question out here is, should we expect the same trajectory now to continue? First, we have a partnership with Nike, then you have a partnership with H&M, and plus you are seeing premiumization play out there. So, directly on that basis, any range of margins we should expect in the next three to four quarters?

So, I was just saying that, you know, the guidance, Sachin, the guidance we will share will always be towards the longer term guidance that we share. You know, we never share two, three quarters out guidance. And to that extent, The same things that we've been working on, which now has started showing results over a sustained period of time, over three successive quarters, will lead to the long-term guidance that we have shared, which is high single digits by FI30 and then 10% plus in steady state. The large part of that improvement from where we are now to get to there will again be on the back of better marketing efficiency, which is, you know, it's doing the same thing, but just better and at higher scale, which is attracting customers at lower tax. which is being made possible by a wider assortment as well as a stronger brand that we are able to partner with. I think AI keeps coming up in conversations, but there are ways in which Even us as retail platforms, when we try to target customers on various other platforms from which we try to attract customers, we are able to target exactly the right customers for us using tools which are AI enabled. And we offer the same in return as an ad platform to brands who want to spend money on us. So by virtue of that, stats improving as well. There's a lot of tech and AI which goes on underneath in making that happen. And then absorption of overheads better. So we are still going to guide towards the same long-term guidance and not a three, four quarter outnumber as we typically do. But given the trajectory, and this time, you know, it is on the back of proven hockey stick growth and profitability, as you have seen already, we feel even increasingly more confident that we are on track for our long-term riders.

Yes, obviously, the question was exactly that, you know, what you're talking about, a long-term guidance and, you know, adding that, you know, I mean, superimposing that with the commentary of what you're giving, that could be, you know, pretty soon rather than FI30 because AI is helping you guys, you know, improve monetization, ad revenues are increasing, marketing spends are sort of coming down, scale economies are helping you. So you already showed minus 12% margin going to 0.2% in a, you know, span of, you know, quite frankly, you know, very fast period. So, you know, directly, you do see that improving up in a meaningful manner. So that's the point, right? You know what I mean? Why FI30? That margin could be, you know, much earlier than that.

No, I think just a couple of things on that. I think what is there on the screen is the vertical reporting, and you see that clearly the main area of improvement is the marketing cost, right? That's the only one that's different. It's not like passion is too off on fulfillment expense or other expenses. So the main area of improvement is going to be on marketing. And marketing has a certain thing about, you know, repeat customers get more and more entrenched on the platform over a period of time. And it doesn't happen overnight. And, you know, I always keep reminding everyone that the beauty business was built over, like now it's a 15-year-old business where fashion is a, you know, about seven, eight-year-old business. So it takes time to reach those echelons. And then, obviously, you know, the beauty is a combined profitability based on... Certain percentage, like there's a certain percentage that comes to physical retail. I think fashion is currently purely only e-commerce, and over time, you know, one has to make certain investments. So I think long term, we are very clear, but I think it's not like one will try to build a business in a way that makes sense from a meaningful, creating dominance and more so over longer term. So, it may not just rush to that level, but, yeah, whether 30, 31, or, yeah, it's not next year, for sure.

Got it. And last small question, you already have 338 stores in the beauty side, you know, where should this stabilize? Do we see that going to 500 odd levels in a few years?

Yeah, we have given guidance that we go to about

600 stores in the next few years.

Okay, all right. Thank you.

Thank you.

The next question is from Swapnilpur Dukhe from JM Financial.

Please go ahead.

Hi, thanks for the opportunity. A couple of questions from my end. The first question is on the Q3 seasonality. It's a festive quarter, but we have been hearing from a broad set of people that there has been some slowdown on the e-commerce side this time around. So if we can provide any color with respect to NICA, have you seen any kind of a change in pattern because of this festive season?

I think we're so much at the beginning of the festive season, with NICA's big sale usually scheduled for end November. So very difficult to judge and give insights on that. But we remain very optimistic about the quarter. Beyond festive season, what happens next year? I don't know. You know, I mean, not for NICA, but in general for the industry, but right now I feel the festive season. It needs to be judged with the full quarter numbers, which will only pan out when you see all the numbers up to December. So, till then, it would be like hazarding a guess, which is not worth it. But we remain optimistic, and we hope that the season goes well.

But just to extend that question, how were the pre-festives typically, which is built up to that festival?

Pre-festives were strong, as you can see in the quarter numbers.

Okay. And I was referring to October month.

Yeah.

The other question is with respect to your operating cash flows. So I can see that the number is negative in the first half of FF27, likely because of a buildup of inventory. Can you just elaborate as to what exactly is happening on there?

Hey, this is on the back of buildup of inventory for the festive season. And versus last year when you look at it, the festive season this year is falling in quarter three. So, what you are seeing is actually a buildup of that. It is primarily on account of the inventory of tech, which will normalize by the time the festive season gets over and you come to the end of quarter three.

Got it. Got it. Thank you. Those were the questions in my mind. Thank you.

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

Hi, team. Thank you for the opportunity. Just one question on the beauty business. As we compare our Naika Now business with some of the quick commerce platforms, and as Anshid mentioned that we offer more SKUs, but we are also hearing announcements from many of those platforms about Significantly increasing the store network and going into smaller towns, whereas our Nikonau offering is expected to be 25 cities by the end of this year. So how do we think about the competition from there? And I wanted to just highlight one more point in this regard that If till last quarter in the data that we used to share about the order volume, if we back calculate sort of the frequency of purchase, that was trending down for the last four to five quarters on the beauty business, right? On an annualized number. So are they two correlated and can we share the order volume of the marketplace so that we can sort of track that? And am I wrong in considering that that's a lead indicator for some competitive intensity on Nikonov versus Biggots? So, we'd love your thoughts about this. Thanks.

Maybe I'll answer the question. So, firstly, the frequency of purchase number is a weighted average of new customer FOP and repeat customer FOP. And, you know, as we've always shared, directionally new customers tend to have You know, no AOVs, no frequency of purchase in the first year of, you know, of their time on the platform. So I wouldn't look at, you know, it's more important to look at the frequency of purchase of the respective cohorts independently. So if our existing shoppers, their FOP is increasing or, you know, staying constant, I think that's probably the right thing to look at, but we don't disclose. Separate FOP for new and repeat customers. As you can see from our monthly active unique visit shows you that there is a lot of interest, a lot of engagement from consumers. They're keen to increase the frequency with which they engage with the app, whether that's a visit. Or a shopping journey, but the level of engagement of shoppers with the app is increased, and that's reflecting here in the MAUV number. So I wouldn't try to overanalyze the frequency of purchase numbers that you are anyway deriving from our numbers because it's the weighted average. With regards to the quick commerce expanding into smaller cities in Tier 2, Tier 3, Look, I think we've always felt that retail in India is such a massive opportunity. If I look at online retail, it is arguably even a larger opportunity because it's highly underpenetrated, and it is growing faster than other segments of the retail market. And within that, beauty is even more severely underpenetrated. So I think it's a bit too early to start thinking about competitive intensity in a beauty market like India. And that to an online duty market like India. And again, you know, competition is not new for us. As analysts yourselves, you have been asking this question now since we've been listed, but even before that, it was a different set of investors asking the same question on competitive intensity. First, it was from the horizontal, then it was from the Indian large conglomerate, so it's gone into the space, and now it's about quick commerce. So I think if there's any proof in the pudding, it's that India retail is large enough for multiple parties to coexist. They're servicing different requirements. And ultimately, it's also about execution. And I think for retailers who execute well, understand the consumer well, and are offering a proposition that has a value to the consumer that I don't think you need to worry too much about competitive intensity every couple of years. So, yeah, I mean, I think let them continue to follow the strategy they would like to follow. We are following, we have a strategy that we have been following for many years now. We always talk about it. Penetration and premiumization, both are important. Both are playing out well. Penetration, you can see from the customer acquisition, which we're doing year over year, quarter over quarter, it's healthy. Premiumization, you can see also on the platform is playing out nicely, so existing shoppers. Shopping, more higher ASP products, more frequently on the platform. So our own thesis is playing out in its own way. So I'm not too, you know, obviously we keep an eye on what the quick commerce players are doing. They're doing a good job. There's no doubt about it. But there is definitely a value to what we're offering. And now I think the biggest change is that I don't think there will be a difference between quick commerce players and non-quick commerce players. I think every, and you must be seeing this from all the companies you cover, but everybody is offering some form of quick delivery, whether it be us or the horizontals. So it's going to become, I think, a base. The level of, it's going to be a type of speed, a type of convenience that will be provided by multiple platforms.

Sure, I think that's helpful. Just on the second part, just a follow-up. So, should we assume that the order volumes for the marketplace will not be disclosed from now on? Or is that the new normal? In the frequency of purchase. No, we used to have a KPI table at the end, which had marketplace metrics. Okay, okay.

Yeah, yeah, yeah. I'm not sure you'll have to ask my IR team, but yeah, as I said, I don't think, look, you're seeing, I think the annually transacting customer number shows you that that number has grown at a very healthy clip. Revenues are up. Nikon now, as we've disclosed here, they have a higher frequency of purchase and mainline orders. I mean, we're trying to give you guys a sense that the business is in a healthy place, but definitely the IR team can come back to you if there is a question with regards to disclosure around certain PPS.

Sure. That's helpful. Thank you so much. That's it.

Thank you. That was the last question we can take today. You may reach out to NICA's investor relations team for any additional queries. I would now like to hand the conference over to the management for closing comments. Over to you, Ma.

Thank you very much, everyone, for participating in the call, and really all the best, and my wishes for a great Diwali with your family and friends, and just wish you guys best for Diwali and what it brings for all of you ahead. With that, thank you very much.

Thank you, members of the management. Thank you, sir. 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.

Thank you. Thank you.

Goodbye.