Operator
Ladies and gentlemen, good day and welcome to the Q2 and H1FY27 Earnings Conference Call hosted by Purple Style Labs Ltd. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Abhishek Agarwan, Whole-Time Director and Chief Executive Officer from Purple Style Labs Limited. Thank you and over to you, sir.
Good afternoon, everyone, and welcome to our Q2 and H1 F527 earnings conference call. Along with me, we have SGA, our Investor Relations Advisor. I hope all of you have gone through the investor presentation, For all those who are joining for the first time, please refer to slide 3 on our presentation for a quick overview of our core business, Pernia's Pop-Up Shop, which is one of India's largest and fastest growing multi-designer luxury omni-channel platforms, serving customers across domestic and international markets. We have 1100-plus active designers and 2 lakh-plus products listed on our online platform. We operate 14 stores in 11 cities, including two international stores in London and New York. Next, on slide 4, you will find a summary of our growth journey since PSL acquired Vernia's pop-up shop in February 2018 when it was primarily an online-only platform. Moving to slide 5. So let's start today's call by understanding what are the key drivers of our business. The luxury consumer base is broadening in India beyond the ultra-rich, and there is a shift in spending towards personal consumption. In parallel, the wedding and occasion wear industry is also getting boosts from multiple celebrations and events, especially in the high-end weddings, and the rising affluence is fueling aspiration for differentiated occasion wear. Further, the Indian designer brand's industry is leveraging the high growth of both of these trends in the luxury market. Our industry has seen emergence of hundreds of new designer labels over the last decade, which is compounding aspiration, discovery, and splurging on Indian designer bear. Over the next few slides, let us understand the growth trajectory of each of these three industries in parallel to one another. First, let's start with the landscape of India's luxury industry. On slide 6, you can see that luxury consumption in India continues to grow across categories, driven by disposable incomes, rising disposable incomes, and evolving consumer aspirations. The luxury consumption in India is estimated to touch INR 7.6 lakh crores by 2040, which is approximately USD 8 billion, growing at around 13% Kegel. Pernier's pop-up shop omnichannel platform currently operates in the apparel and accessories category primarily, with recent foray into real jewelry from our flagship stores. Now, let's move to slide 7 to understand the size of the wedding and occasion wear industry, where luxury segment offers a strong growth opportunity. The luxury wedding and occasion wear industry is expected to reach INR 1.35 lakh crores by 2040, with a higher kegel versus the overall industry, Thereby increasing its share from 6% in 2025 to 15% in 2014. Pernia's pop-up shop majorly sells luxury wedding and occasion wear through its large format flagship stores and is one of the largest and fastest growing players in this segment. Moving to slide 8, we have given insights into the top 1,000 designer brands as an industry, which is our core market. Indian designer wear market has grown very rapidly over the past decade to currently over 10,000 crores and is expected to cross INR 1 lakh road by 2014. The consumer base for top 1,000 Indian designers is also expected to grow approximately 4 times to 1.5 million by 2014. Riding on these industry tailwinds, Pernia's pop-up shop continues to strengthen its market leader position as a global omni-channel platform for Indian designer brands. We have already grown our market share in the core top 1000 designers market from 2% to 6% between 2020 to 2025 and are targeting INR 2100 crores GMB by 2030 with more than 8% market share. Our long-term target is to achieve INR 20,000 crores GMB with an 18% market share by 2040. Now, let's move to slide 9 where we have presented an analysis on how we approach the growth from the angle of customer matrix. The key driver of our long-term growth strategy is simultaneously expanding our customer base and increasing our wallet share within the Indian designer wear buyers. As per industry projections, the Indian designer wear customer base is expected to grow to 1.5 million by 2040. In the same time frame, we are looking to increase the percentage of customers shopping from Eurnia's pop-up shop from 20% in 2025 to 25% by 2030 with a long-term target of 40% by 2040. Apart from widening our customer base, we also see a significant potential in increasing average spending of our customers. In the 2020 to 2025 growth phase, we had increased our average wallet share from designer-aware customers from 17% in 2020 to 32% in 2025, and are currently targeting to grow the same to 34% by 2030 and 45% by 2040 in the long term. Our customer strategy is not limited to just adding more customers, but also build deeper customer relationships, capturing a large share of their overall Indian designer wear spending. Now, before we move forward, let us glance through slide 10 to familiarize ourselves with our historical journey through three distinct generations, which was also a part of our Q1 presentation. The first generation from FY19 to FY21 was about laying the foundation. The second generation from FY22 to FY24 was about scaling the footprint and deepening category in luxury women's wear and men's wear segments. In the third generation after FY24, we consciously trimmed the long tail of both designers and customers and sharpened our focus only on luxury. Post FI25, we have actively changed growth gears and opened large format stores in all the major markets like Mumbai, Delhi, and New York. Moving to slide 11, let's discuss the most important pillar of our growth plan, the geographical expansion matrix. Our geographical strategy combines deeper penetration in established markets, expansion into near domestic markets, and build a strong international presence. In the long term, supported by a wide network of large format stores in all the major cities and the online platform, we believe in scaling Indian designer wear industry to a global customer base. Over the longer term, international markets along with Mumbai and Delhi are expected to do the heavy lifting for growth of the overall industry. By 2040, we are targeting a GMV of 4,000 crores from Mumbai, 6,000 crores from Delhi, 3,000 crores from rest of India, 3,000 crores from USA, and 4,000 crores from rest of the world. Now, let's focus on the near-term 2030 plan and understand the roadmap for the same on slide 12. We are targeting a total GMV of INR 2100 crores by F530, with Mumbai and Delhi being the primary road drivers during this phase. From Mumbai, we are targeting GMV of INR 500 crores by driving higher throughput from a recently opened Linking Road and Kalahura port large format stores. In Delhi, we plan to establish a new 100K Generation 4 store, which is expected to give us a significant jump. Once this new flagship store opens, then along with current large format stores, we are targeting Delhi's contribution to be 700 crores towards our overall F530 target of 2100 crores GMV. For the rest of India, which includes Hyderabad, Andabag, Bangalore, Kolkata, Suraj, Chennai, and Indore, and the India online business, We are targeting a GMB of INR 460 crores by 2030. To support this growth, we plan to upgrade our existing Gen 2 stores in Bangalore, Kolkata, and Ahmedabad to Gen 3 era stores. Internationally, USA, especially New York, remains an important growth opportunity with a GMB target of INR 270 crores by 2030. Our recently established physical presence in New York is expected to help us deepen customer engagement, strengthen international brand visibility, and drive higher online purchases from the rest of U.S. as well. For the rest of the world, we are targeting a GMV of INR 180 crores by 2030. This market primarily includes the UK omnichannel business, where we soon plan to upgrade our existing London store from Gen 1 to Gen 3 era to increase the wallet share from large UK customer base. Apart from this, we plan to keep widening our online reach across Middle East, Australia, Canada, Southeast Asia, and other international markets. As a company, our focus will be to approach each of these five markets in parallel with strategies, as mentioned, above to achieve the IANA 2100 crore GMB target by F530, as shown in slide 12. Slide 13 to 22 were already a part of our Q1 presentation. So, I would, I have just retweeted it here to glance through the historical, geographical expansion, customer growth, and category mix of Pernier's pop-up shop over the last eight years since its acquisition. Now, FI27 is the ninth year of growth, which is riding on the seats shown in FI26 in the form of four large-comat stores in Mumbai, Delhi, and New York. Now, let's refer to slide 23 to analyze our six-month FI27 performance. So, PPUs GMV grew to INR 397 crores compared to INR 310 crores in six months of FI26. During the same period, average order value has also improved to INR 84K from INR 69K, reflecting our continued shift towards higher-value products. As of September 2026, inventory levels stood at INR 196 crores, compared to INR 208 crores in September 2025, despite addition of New York and Linking Road Mumbai stores in March 2026. This also reflects in reduction of net working capital to INR 59 crores from INR 84 crores over the same period. To understand the growth from geographical perspective, let's see the slide 24. In India, Mumbai and Delhi remain our largest key markets and growth drivers during six months of FI27, contributing GMV of INR 105 crores and 85 crores respectively. On the international front, USA GMV contribution increased to INR 64 crores in six months of FI27 versus INR 42 crores in six months of FI26, attributable to the recent New York store. Moving to our financial performance on slide 25. For 6 months of FI27, the revenue from operations stood at INR 262 crores compared to INR 214 crores in 6 months of 26. Gross profit increased to INR 103 crores from INR 83 crores in the corresponding period last year, while gross profit margin improved to 39% from 38% over the same period. EBITDA from 6 months FI27 stood at a loss of approximately 7 crores compared to a loss of INR 5 crores in 6 months of FI26. While we have made progress in strengthening gross profitability, our focus remains on improving throughput and driving better operating leverage going forward. We have also made progress on the cash flow and working capital front. Operating cash outflow reduced to INR 13 crores in H1 of FI27 compared to an outflow of 50 crores in H1 of FI26. Free cash flow also improved to INR 19 crores from INR 72 crores in the corresponding period last year. Slide 26 and 27 have a detailed breakdown of the P&L statement for a deeper analysis of the operating cost structure of the company and to understand the operating leverage better of our business model. Slide 29 to 31 have the P&L balance sheet and cash flow statement for the last six quarters for your reference. Thank you. We are open now. We open now the floor for questions.
Operator
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. A reminder to all participants, please press star and want to ask a question. The first question comes from the line of Siddhant Lothia with Sanchi Fund. Please go ahead.
Hi, first of all, congratulations on the recovery in EBITDA. One quick question, at a mature level in a store, what kind of operating EBITDA are we looking at?
So, for us, it is not a function of a percentage. So if you, let's say, take the current cost structure as an example. So you would notice that over Q1 and Q2, the fixed cost structures have not changed much. So what we have done, we have given you the split of other expenses as well in terms of marketing, in terms of logistics and other expenses. And on the next slide, where you have the EBITDA to PAD bridge, we have also split the depreciation of REO PAD. And so, if you see these costs, they are pretty much fixed in nature, unless we are doing an expansion. As of now, we have not done any expansion over the last six months in terms of cost structure, that we're seeing a flat cost structure. So what tends to happen, let's say Mumbai stores do a certain number in the first financial year, which is FI 27. Now, whatever sales you deliver growth over the next three years without opening anything else, all of it technically throws from GP down to the EBITDA. So hence, it's not a function of percentage. It's more of a function of absolute number, which varies from store to store, depending on what stage of breakeven they are.
Yeah, so that was my question. On a store level, what kind of EBITDA can be looked like?
There is nothing like a store level. See, that's the reason we don't do store level analysis. We have a store. The store change gear in a window of 3 to 5 years. So, the cost structure also changes when that change happens. Unlike a lot of other... Yeah, there's nothing like an average is what I'm trying to say. You will have to look at it.
Okay, so you will look at the number as a whole itself.
Yes. So, let's say if you today look at the P&L, on a P&L basis, the cost structure is 100 crores. If you look at that cash basis, it is about 15 crores left. So, if you see the depreciation of REO of assets and you see that, that's 45. Whereas, if you see the cash spend, that's about 30-31. So, that is the gap. So now let's say if my cash spend on a certain quarter is 85 to 90 crores, I am taking a range, which means once the GP crosses 90 crores in a certain quarter, everything else comes down to your pre-cash flow in the business. Correct. Understood. All right.
Operator
Participants, please press star and want to ask a question. The next question comes from the line of Devanshu Bansal with MK Global Financial Services. Please go ahead.
Hi, Abhishek. Thanks for the opportunity, and congratulations for the good gross margin performance in the quarter. Abhishek, I wanted to understand you have provided a very long-term opportunity as well as how you see the business sort of shaping up. I wanted to check till FY30. In the PPT, we mentioned only one daily store to sort of come up and few new generation stores in some of the tier two cities. So I wanted to confirm, is this the only growth expansion that you are planning which will help you to meet this 2100 crore of GMB? Is this the right influence to sort of go ahead with?
Yes, that's correct, Devanshu. So our broader idea is that we don't plan quarterly. We typically would make a three to five year plan. So to make it transparent, we have given our investors how do we look at the March 30 and what are the things being done towards it. So if you see in Mumbai and USA, the expansion is already done. So we are looking at a higher throughput over the next three years. Over the rest of the world, the only upgrade is a London store because it's a 2019 store for us. So, it's high time we basically upgrade it. And on the rest of India, we are not anticipating any changes to Hyderabad, Indore, Chennai, and Surat. And we are looking only for upgrading in Ahmedabad, Kolkata, and Bangladesh.
Just a small follow-up, Abhishek, if you could help us better understand in these one large store in Delhi and three upgrades, what is the ballpark number that you are sort of looking at in terms of investment over the next four years?
So, I mean, if you see collectively right now, the investment primarily goes into the the capex and the deposit, because our networking capital is just a cycle of investing into the inventory first. But as soon as the advances from customer and payable build up, it gets knocked off. So from that perspective, you know, currently, we would have about two and half lakhs square foot, I think, ballpark. And for that, the total investment of deposit The deposit in capex is about 150 crores, combining the PPE that you see on our financials along with the deposits. So I think if you assume a similar ratio for the 100k, it could give a fair bit of an idea. And as far as Andabas, Kulkatan, Bangalore are concerned, they are each about 10 to 15,000 square foot in its current state, except Bangalore, which is the smaller store. So, we're looking to upgrade each of them to about 10 to 20,000 range and move to that large format size of 20,000 and above eventually. So, I don't think that is going to be a major expense, but I think proportionately you can add another 30,000 square foot to that 1 lakh to calculate the total. So, ballpark, let's say if we make our whole area one and a half times, so if we currently If you operate at about 150, you're looking at about 75 to 80 crores of total. Okay, so this 75 to 80 crores. Over the next 18 months as we are still in the process of finalizing location, signing and building them.
Got it. So this 75 to 80 crores of incremental investment can help you sort of move from 700 GMV to 2100. So, yeah, that's very interesting.
Part of it would be from the existing throughput, as we have mentioned. The incremental would come from, yeah, that's correct.
No, got it. Secondly, Abhishek, first half has been, we have sort of used some cash from the balance sheet. If you could help us better understand how do you foresee the cash flow in H2 and overall In full year FY27, that would be very helpful. That's my last question. Thank you.
Sure. So I think from a cash perspective, we need to understand the fact that our IPO was pretty much towards the end of H2. So the cash deployment has now started in terms of managing the balance sheet. I think if you see the cost spent over H2 in terms of your cash, you'll notice that the interest cost combined for all of H1 was about 40 crores, and then the rest was for operating losses in the business. But usually in our cycle, H2 is higher, which you can see from the last year as well, where out of the 560 crores, 215 crore revenue was in H1, whereas in H2, that number was collectively 343. Now, assuming that the business is in similar trajectory, we don't expect operational cash losses in H2, and with better efficient of the debt and the money that we have raised from equity, I think the interest cost will also significantly come down. So, I'm hoping that the cash flow would be better in H2. To both quantum, I think we'll let it unfold. Fair enough.
Just one last one, if I may. Sir, the recent media reports are sort of indicating that, at least from a designer-based consumption perspective, there are two headwinds, right? One is the festive shift, and the second is lower travel to India for destination weddings. So, if you could just throw some light, as in, are you also sort of witnessing these headbands in the business? And any initial thoughts as in how Festive has sort of picked up in October will be very helpful. Thank you so much.
Sure. So, usually, Devanshu, a lot of these are minor headwinds from our lens because we have a global presence. And going by the same logic, as you said, in case the travel is lesser, that means our New York store presence will help to continue, you know, gathering more market share from U.S. consumers. But one way for us to look at the business from a near term on the F by 30. So if you see, if the industry projects, let's say the designer brand industry to be 25,000 crores by 30 and growing at about 20, 21 percent, whereas we are looking to grow 30 percent, our broader sense is that because of any headwinds, if the market grows at 15 percent, that means we just have to grow our market share by 15 percent to just manage the same 30 percent. So, which essentially means if that market stays at 20,000 crores in 2030, we can still achieve a 2,100 crore. It will just mean that our market share has to be 10.5%. And if you see the historical growth of market share, we are much rapid in growing the market share. So, the dependency is not alone on the overall market. But I think if there is any such headwind due to geopolitical issues, our New York store will compensate for that. Very good.
Operator
A reminder to all participants, you may press star and want to ask a question. The next question comes from the line of Saurabh Gynodia with Smiths. Please go ahead.
Yeah, hi, good afternoon, and thank you for the opportunity. Abhishek, I have one or two questions. I'll just one-by-one ask them. First is, we have seen companies such as Ethos delivering healthy growth, reflecting the increasing appetite for premium and luxury consumption in India. With the business model being different, do you believe Purple Style is benefiting from a similar structural trend of rising luxury spending among affluent Indian consumers? And how do you compare the addressable market customer profile and growth runway for luxury fashion versus premium watcher? Do you see similar opportunities for organized luxury retail to expand in India over the next five years, like ethosism?
So, if you actually see our first three slides on the industry, all those three industries are different in terms of what they sell, who they cater to, but they have a significant overlap. So, the first industry, which is the luxury industry consumption slide, which we have shown you, I think watches would form a part of that, which is the consumption story of India in luxury. But we also operate, you know, in the wedding and occasion wear The luxury segment forms a part, like it's a subset of the first one. Actual co-market is designer wear, which kind of draws, you know, small pools of consumption from each of these. So from our perspective, given that we would have a common set of customer base, I don't think why our growth should be anything different. The only additional benefit that we enjoy is that unlike the other company you mentioned, we are also a global distributor, For Indian brand, giving us a significant market share even in the international waters. So, I think if we are able to leverage our growth equally good as India in the other countries, then at an absolute level, we should grow much faster, even though it might be the same percentage.
Okay. Thank you for the answer. My second question is, given the nature of the luxury fashion retail and the inventory requirement in the business, how one should look at the working capital intensity going forward as the business scale up? Do you expect operating cash flow to improve further? What is your medium-term target for the cash conversion cycle?
So, we have been very clear about it in the first Q1 presentation itself. That is why we have put the net working capital as an important metric on our summary slide of the six-month presentation. We are not a very capital-intensive business when it comes to inventory, given the fact that a significant portion of our business comes from backorder, In which the customer typically pays 100% upfront, average delivery time ranging from as low as 2 weeks to as high as 12 weeks. And then I pay the designers after a certain window once the products are delivered. So what that does, it already reduces our networking capital. So if you see the September numbers, my inventory base is 196 floors, but my networking capital is only 60 floors. So, I think so long as we are able to reduce this net working capital going forward, it would actually amplify our capital efficiency in this business versus any other platform.
And, Abhishek, if you can just give us some understanding on the gross profit margin trend going forward. And second is, when one should expect meaningful operating leverage to kick in? What is the key levers for Avidda Margin Improvement over the next two to three years?
Sure. So if you look at slide 25, we have placed six quarters, four quarters of last year and two quarters of the current financial year side by side. So you can generally see over the quarters how the gross profit moves. Both on the Q1 and Q2, we have improved on the gross profit margins, which as a trend we hope should continue for the rest of the year, which means on an overall FI 27 basis, we should be on a higher gross margin versus FI 26, which should Now, as I had explained to the previous question that we have a fixed cost structure, because we have a fixed cost structure in the business, technically, the profitability comes once you cross that threshold. So let's say today, if my annual expenses are in the range of 360, 370 crores on a cash basis, once I cross 360, 370 crores of GP, that means we become profitable from there. So, this year, our target should be to come as close to that number, but hopefully in FI28, we should be able to bridge that gap.
Okay, and any guidance would you like to share for this year and next year in terms of revenue and EBITDA margins?
So, I think we'll stick to our FI30 guidance at a GMV basis. As I said, since we don't really operate on a Q&Q site, the idea is we try to draw maximum throughput as early as possible from whatever stores we have opened, but it's very difficult to predict how it will happen at a quarterly level. So, I think we'll stick to the 30 GMB target that we have already given.
Understood. Thank you for all the elaborate answers. Thank you, sir.
Operator
The next question comes from the line of Nirav Rajiv with Aditya Birla Sun Life Insurance. Please go ahead.
Yeah, thank you for this opportunity. I understand you're not giving any guidance, but any sense of how the initial trends of the festive and the marriage season is going on, especially in the couple of Mumbai stores that recently opened? What is the kind of footfalls that is happening? And how is the ramp-up happening for these couple of stores, given that we are now in the key season, wedding season, and the festive season that is upon us?
Sure. So if you see again the quarterly comparison that they're given in slide 24, so you can see that in Mumbai itself out of the 205 crore last year, we had done about 77 crores in H1 and we had done the rest 128 crores in H2. So, assuming we take a similar 40-60 ratio, if we have done about 105 crores in the first, so we are looking at a 250 plus for Mumbai just on the full year basis. And that just basis, you know, how typically our cycle works on the four quarters. In terms of revenue, this translates to a higher number because a lot of advances which are there for Q2 usually booked for delivery in Q3. That's why if you refer to the slide 15, you will notice that the revenue from operations typically take a sharp jump in Q3 versus the Q2. So from a wedding season trend perspective, I think the growth of about 30% this year is already reflected in the GMV. So that as a base growth should happen over the whole year as well. As far as the revenue on GP is concerned, as I said, typically we are moving to a better GP for this year. So, I would assume that it could be higher than F526. How much higher, I think we'll have to wait the two quarters to finish, to pin that number. But we are definitely improving on the GP versus last year.
Sure, sure. That's great to know. And on a U.S. tour, how is the wrap-up? We have seen, like, on a small base, it is doing well in the first half. So, what is the kind of foot pause? What is the kind of trajectory that is expected now going forward? I mean, how is that ramping up?
I mean, honestly, unlike Mumbai and Delhi, which are hubs, we operate, it's easier, you know, to manage. New York was a new learning curve. So March, April being the initial months of beginning from there to September, the growth has been high. I think this quarter, we would get a better clarity in terms of how much are our US business with overall increase and basis that, you know, we can keep growing. So if you see as an FY30 target, the idea is that wherever we end up this year, whether it's 150, 60, 40, that's something we'll get to know when FY27 ends. But from there to target a 270 over the three years without any cost structure, major change in cost structure is not a very high ask. So that's the reason why we are not worried about what happens in the next one or two quarters in the US. But clearly, you can see from the numbers that the growth is coming in terms of, you know, as the stores learning and the employees are learning better in terms of what we do.
Operator
Sure. Thank you so much. The next question comes from the line of Rohit Mehra with ESK Securities. Please go ahead.
Hi, sir. Good afternoon and thank you for the opportunity. Hope I am audible.
Yeah, so my first question is, in the investor presentation on slide 12, the target is at the 2100 core of GMV by F530, and it includes around 100k2 feet stores in Delhi, and mostly in the large format stores in Ahmedabad, Kolkata, and Langlo, like Tier 1 cities, and an upgrade in London stores, correct? So, when are these targets to start and when are we commencing these endeavors towards this and what are the expected CAPEX and lease commissioners and how are they funded?
So, I think to Devanshu, we had already explained how we can estimate the CAPEX and deposit. As we said, we ballpark today have about 2.5 lakhs per foot across all our stores and the PPE towards it, that number is already there in our financials. So I think this is that what we are estimating is that if currently we have 150 crore are deployed towards deposit in Capex, and these stores, if they add another 130, 140 square foot per hour, so we would assume that about 80 to 90, 80 crores of investment would go towards these projects over the next 18 months. Now, to the first question in terms of timeline, since we typically run just one store in a city except for Mumbai, Delhi, and these are usually planned for three, five years, we take our time till we narrow down on the right property. But yes, as we keep signing something or the other on a regular quarterly calls, we'll keep you updated. So nothing is signed as of now, but yes, all of these five are in progress in terms of exploring locations and finalizing the terms wherever we like a property. So, as for future quarterly calls, we'll keep you posted over the next six quarters as something gets signed.
Got it, sir. Got it. Thank you. And my second question is, in Q1, you said six months of New York data would be short in U.S. numbers, and in H1, the GMV was around 64 crore against 42 calls. So, how much of extra 22 Koro course came from the store, and how much from online, if you would provide the by-percussion?
So, Rohit, generally as a practice, whenever we look at a geography, we look at the omni-channel business. That's for US and UK both. The reason for that is, it's very difficult to identify as to what is attributing the sale. So, let's say, you know, historically, if you see on slide 13, where we are given 8 years history of US. So, if you see the last 3-4 years before the tariffs came into play for FY26, the average was about 100-120 crores of sales. Now, that was all online. From that, a significant portion would also come from the New York Tri-State area and nearby. Now, once you have the store there, for a lot of those purchases, store might be a better experience, so people tend to migrate. So, that's the reason we would suggest we look at US as a wholesome number and not really differentiate how much is coming from the store and how much is coming from online.
Got it. So, in that case, could you please help me with stores AOV? Was that near to $1,500?
Yeah, that's correct. So, we had already told this in Q1 as well. Our US is doing pretty much in line with how UK stores operate, and we are doing somewhere on the north of $1,500 AOV at the store, whereas online, our typical AOVs are about $500. It's similar to like other locations, about three times of our online business.
Got it. And given you are on a short list, what store level results would you like to renew and renew a shutout or rent or exit?
So, we are working on that, Rohit. I think by the time we do the Q3 call, we'll have an answer towards that. The idea of doing a short lease earlier was because of new geography. We didn't want to tie ourselves to a long-term lease. But given that we have some idea on the cost structure, some idea on the growth potential and the overall market, I think we'll take the conscious call of how to work on New York after June 27th. I think in Q3 call, we'll have an answer.
Got it, got it. So, that's it from my side, and all the best, and happy Diwali.
Operator
The next question comes from the line of Shantanu Basu with Smiths. Please go ahead.
So, thanks for the opportunity. First of all, I have a few questions. First question is with regard to your H2. So, can you please tell me about how H2 is looking and where do you see growth coming in H2? Second question is with regard to your real jewellery, you have added real jewellery, started selling real jewellery. So how do you see this category going forward, near term and long term, near term and mid term, maybe? And then with regard to your London store, the new London store, what is the capex and the timeline for the new London store?
All right. So let's start with the first question in terms of performance. So what we have done is given an idea in terms of how the last four quarters were there for the last financial year. So if you see out of overall 720 crore of gross sale, we had done about 310 in the H1 and we had done about 411 in H2. So, even if you assume a basic growth of similar nature, then you are looking at a number which would be a similar 30% higher for H2 as well versus the last number. This is all that we can predict sitting here in terms of where the numbers are going to land basis on historical trajectory. The only difference this year is we had a bit of delayed in terms of wedding shopping start, which for us is typically Diwali minus three months. So, we are hoping that that delayed performance of Q2 should reflect in Q3 and Q4. The second question on London store. Now, it's part of the expansion plan that we have for FY2030. The timeline is something which will be dependent on what kind of opportunities are we getting and what kind of rent. We are not looking at a very, very large store in London, to be honest. And in terms of the capex and the deposits, they are not very different from what ratio we have at an overall basis. So, I think the same logic that I have given on to other people who ask the same question, we can estimate basis and 80 to 85 crores of investment over the next three years on these five projects collectively. If there is any deviation or changes to this, we will keep you guys posted. But they are going to happen over 18 months till March 28. There is 85 crores of investment. That's total deposit plus KPEX combined for all the five locations combined, in which Delhi 100k square foot is the major driver.
Okay. And what about the jewelry thing? We have started sending the end to it. Yeah.
So see, I mean, what we have done, if you go to slide 18, currently, all accessories, jewelry, kitswear, home decor lie as a single line item, Because none of them are very large, you know, for us to give a bifurcation. Also, category is something that we analyze more on a, you know, two to three year journey basis. So, yes, we have started selling real jewelry from some of our stores. FI27 is better than FI26 without putting a number to it because it's the first full year. And these large format stores have also become a destination for, you know, wedding shopping. So, we are able to upsell the products to a lot of our luxury consumers. But whenever real jewellery becomes a sizable number for us, you will see a line item in the category table.
But how is it doing, basically?
See, for us, real jewellery doesn't occupy a lot of space. It definitely takes the average order value higher. We are not buying inventory in real jewellery. So I think the answer to how it is doing cannot be bad or good, is what I'm saying, because the base is too small. But all I'm saying, if real jewellery ends up becoming 100 crores on a 2100 crore or FI 30, then we'll definitely show you a line item how it is. Okay, once it becomes 100 crores. Yeah, I mean, it has to be a sizable number in terms of percentage of the sales. Like, for example, when we have shown you the geographical growth, we merged rest of India for five cities, which were smaller. As the company grows further, if you see the top 5 geographies that we have done, we have emerged Hyderabad, Ahmedabad into the rest of India. That's the whole idea of presenting the bifurcation.
Okay. And how are designers who have their own stores doing in areas that you have opened stores, large stores like Mumbai, you have opened in Fort and Lincoln Road. How do other designers fare in that area?
So, I mean, see, there are different reasons why I would go to a solo designer store and a multi-designer store. The assumption is that a customer on day one knows what they want to shop. Multi-designer store usually offers the first browsing experience to a customer where they can compare multiple products together and decide what they want to purchase. If you see our customer matrix, we are never claiming that we are looking to sell 100% wallet share So typically, all those products which a customer is happy to decide at a multi-designer store together and make the purchase from us would come to us. Anything which is a much higher price point or it's a product that, you know, they would want to prefer to buy from the designer directly, it goes to them. So the way we look at the market share is, if you take Bombay as a geography, since you mentioned Bombay stores, out of the overall market of, let's say, 10,000 crores plus that I mentioned, Bombay would have a certain number. So we always look at, okay, how much of market share we can grab for Bombay. So for, let's say, theoretical purpose, if Bombay is a 2,000 crore market, out of which some pocket sells from Kalagoda in South Bombay, some from Juhu Bandar, some would be fragmented. We are looking at, you know, grabbing maximum market share from that. So, if we are able to touch a 500 crore and buy, then the Bombay market is 2,500 or 3,000 crores or 4,000 crores, our market share will be a byproduct of that. And the same number was 120 crores in F525. So, clearly, we have increased the market share by a disproportionate number in a very short window of one and a half crores.
That is what is most important for us. Okay. Thank you. Thank you very much.
Operator
The next question comes from the line of Keval Shah with Jitri Investment. Please go ahead.
Sir, I'm trying to understand when I think about, obviously, first of all, congratulations on the revenue growth and the EBITDA growth. Below the EBITDA line item, when I see the lease cost, I'm just trying to understand what the annual lease cost is of your current footprint. Because obviously, there's a difference between the P&L and the cash flow statement. So, is the correct thing to do, just annualize the cash flow statement, your quarterly run rate?
The only addition you will have to do was the U.S. lease was paid up front last year. So, you will have to just add 3 million of U.S. rent to that. So, about 30 crores. So, if you add the cash flows that we have given on the rent, that comes to about 120 crores. Add 30 to it. I'm just rounding off 3 million to 30. Yeah. That gives you a number of 150. That is the right number. Whereas, if you see a plane on the P&L, it's about 45 into 4, that's 180. So, that's 30 crore of cash cash.
So, our cash cash is a 30 crore lower. That's why the Q3 FY26 was 50 crores, because you were paying the U.S. lease up front, effectively.
Both in Q3 and Q4, we had paid part rent of U.S. up front. And that was paid until June 27, until the end of the year.
Okay, perfect. That makes sense. And if I, and in terms of like the annual rent escalations, are those pre-negotiated or are those?
Yeah, usually for lockstores, it's pre-negotiated. Generally, an average number would be somewhere on 5% plus minus range. Some of them get escalated at 15% after three years. Some of them have an annual escalation. But you can generally assume a 5% number per annual.
Okay, that makes sense. And so, my last question, sir, is you have a very good reason for looking at the city-wide growth as opposed to store-wide growth because obviously your store matrix has changed a lot. But from next year, will you start looking at SSSG given that the store portfolio is not changing?
It's the same thing, right? If I'm not changing anything in Mumbai, SSG, you can look at a store G&B itself. So, that's the whole idea why we have given you such a detailed bifurcation, right? Because you can look at Hyderabad and see, okay, fine, what did Hyderabad grow from X, Y, Z? The whole idea is we want to give you a row line item which makes sense on an overall sales basis. So, Mumbai will make sense, Delhi will make sense. But maybe an in-law, if I give you a line item, it won't make sense, it's too small enough.
Okay, that makes a lot of sense. Thank you, sir.
Operator
The next question comes from the line of Siddhant Lodhya with Sanchi Fund. Please go ahead.
Just a quick question. Wanted to understand how should we look at revenue conversion from the GMB that we are, you know, targeting currently? Sure. So, if you go to our historical journey,
we have given you the financial statements for 23 to 26, and we have also given you the GMV. So, if you see the number, it has been ranging from 80% plus minus 3%. So, I think a similar range is good enough.
The reason 2, we are at 70, and H1 is 66.
So, is this going to be the same? Always look at it on an annual basis because you have to constantly adjust the advance from customer to look at that number. So, I think there only looking at annual will make sense. So, if you are, let's say, pinning an X number for the GMB for this year and for next year, then you can just take an 80% plus minus 3% range to where it will land.
Operator
Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Mr. Abhishek Agarwal for the closing remarks.
So, to conclude, the progress made during the first half of FI27 reflects our continued effort towards generating higher support in our business to showcase operating leverage going forward. As we look ahead, we'll further strengthen our omnichannel capabilities to capitalize on the fast-growing demand for Indian designer wear across domestic and international markets. Our endeavor is to create long-term value for all our stakeholders while building on the opportunities ahead. Thank you. Thank you, everybody, for attending the call.
Operator
Thank you, sir. Ladies and gentlemen, on behalf of Purple Style Labs Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.
