Monte Carlo Fashions Ltd

MR. YUVRAJ KUNWAR — EMKAY GLOBAL FINANCIAL SERVICES LIMITED Page 1 0f 16

Ladies and gentlemen, good day, and welcome to the Monte Carlo Fashions Limited Q4 FY26 Earnings Conference Call, hosted by Emkay Global Financial Services Limited. As a reminder, all participant lincs will be in the listen-only mode and there will be an oppertunity for you fo ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phene.

Please note that this call is being recorded.

I now hand the conference call over to Yuwraj Kunwar, Emkay Global Financial Services Limited. Thank you, and over to you.

Good morning, everyone. I would like to welcome the management and thank them for this opportunity. We have with us Mr. Rishabh Oswal, Exccutive Dircctor; Mr. Sandeep Jain, Exceutive Director; Mr. Dinesh Gogna, Director; Mr. R K. Sharma, Chicf Financial Officer; and M. Ankur Gauba, Company Secretary.

T shall now hand over the call to the management for the opening remarks. Over to you, gentlemen.

A very good morning to everyone. I'm Sandeep, and thank you all for joining us for today's carnings call to discuss the performance for fourth quarter and full year of financial year 2026.

Let me start by sharing the financial highlights and then operational highlights.

For the fourth quarter under review, the company reported revemue of around INR280 crores, reflecting a strong year-on-year growth of 36%. EBITDA for the quarter stood at INR26 crores, registering a growth of 353% year-on-year and EBITDA margin of 9.2%, profit after tax of INRS crores as compared to a loss of INR10 crores in the same quarter last year, with a PAT margin of 1.78%.

Now coming to the financial performance for the full year ended financial '26. Revenue from operations stood at INR1,276 crores, reflecting a year-on-year growth of 16%. EBITDA stood at around INR227 crores, witnessing a growth of around 22% year-on-year and with EBITDA margin reported at 17.81% without other income. The company reported a profit after tax of INRI12 crores, which is increased by 38% year-on-year with a profit after tax margin at 8.79%.

We are pleased to share that the company has successfully achieved its stated guidance of financial 126 delivering a revenue growth of 16%, along with EBITDA achieved of 20%. This reflects the strength of our business fundamentals, execution capabilities and a brand positioning across categorics. Going forward as well, we remain committed to sustain this growth momentum and endeavor to continue to deliver performance in line with our stated guidance.

Coming to the operational performance for the period under review, we saw a strong rebound in the sales across most categorics. Our brand Rock.it brand delivered another quarter of consistent performance, registering an impressive 86% growth in gross sales during this year. Page 2 of 16

The Home Textile segment also maintained its robust growth trajectory, supported by healthy demand across all categorics. Further, footwear gross sales surged 149% compared to financial 125, and the growth momentum is expected to continue in the coming quarters as well.

Online net sales continue to show a strong momentum, recording a robust growth of 38% compared to financial '25 through our own website and external portals, reflecting the growing customer preferences for our digital channcls. We remain strongly focused on expanding our retail footprint and firmly committed to open around 40 to 45 EBOs across India with a strategic cmphasis on Western and Southern regions.

During the quarter, our retail presence was further strengthened with addition of 2 new Cloak & Decker brand EBOs, taking the total count to 24 stores. The company continued to pursue its expansion strategy through stores ranging between 500 to 1,000 square feet. To enhance customer convenience and reach, we have partnered with quick commerce platforms such as Blinkit, Swiggy, Zepto to cnable express deliverics within 30 minutes.

Additionally, our strategic collaboration with Salesforce is helping us streamlining the operations, clevating customer experience and build a long-term brand loyalty through digital transformation. The company has successfully organized trade show for the order booking in pre-wnter collection in February '26 and winter collection in March '26. Further, we have expanded into overseas e-commerce platforms for dircet and indirect xport through Joom.com and Stylishop.com and broadening our global presence. ‘With this, we now open the floor for question-and-answer session. Thank you so much.

Thank you. We will now begin the question-and-answer session. The first question comes from the line of Gunit Singh with Counter Cyclical Investments.

In the cwrrent quarter, the revenues grew by about 20%. So [ want to understand how mch was volume growth out of this?

The revenue growth was approximately 36%.

So how much was volume growth in this quarter? ‘We consider annual basis and we have achicved 12% increase in volume.

That annual growth in the volume is around 12%. And this quarter, I need to check, it should be around 18% to 20%, I think.

Got it. So according to you, what were the main drivers of this 30% growth? Did we take any price hikes? Or was -- I mean, what were the main drivers of this growth? I want o understand if this 20%, 30% kind of growth should continue in the coming quarters as well?

Sce, whenever we give a guidance, we give anmal guidance. And the reason for this growth is that increase in summer category sales, so which s increasing every year. So as we go ahead also, 50 as we told carlicr also that the summer categorics arc growing faster than the winter wear categorics. So the growth are more in summer categorics. And last year, we suggested that Page 3 of 16

we should be achieving a revenue growth of 15%. And accordingly, we achicved this year a 16% growth in our sales.

Got it. So basically, Q1 is also summer clothing. So I want to understand what is driving the growth in our summer clothing? Is it that we have increased our collections or more trendy design? Or is it because we are entering different channels? What arc the main reasons? And should we expect a similar growth trend in the coming quarters for the summer at least, if you can let us know?

Sce, there arc 2 reasons for that. One is that the penctration is happening across summer categorics, actoss regions. Another reason is that the loyalty customer base, which we're having in our winter wear category are increasing, arc in summer sales. So that we have witnessed in our EBOs. So both factors are helping us in growing summer wear range also.

Got it. And for the -- have we scen any impact of lower spending or higher inflation? Because of the higher inflation, so lower spending on say clothing and any slowdown i the previous 30 t0 45 days of Q17 To be very honest, we don't see any major, I would say, cut down in the spending from the consumers. But we sec that if some hike has been taken by the government for the petroleum and diesel, so it may affect the consumer spending as it may give rise to some inflation. So that is the concern which everyone has, I think, in the Indian industry.

But it's very -- it's too early to say about that how much effect it can be for coming quarter or next quarter, so that we need to sce. But definitely, if the further price goes up in case of petrol and diesel and if inflation goes up in the coming quarters, it may cut down some consumer spending.

Gotit. And would you like to give some guidance for FY27 in terms of store xpansion, in terms of top line, bottom line or any plans that we have?

Store expansion guidelines, already we have given that 40 to 45 stores will be opened this financial year also, So as far as guidance is concerned that the company s well positioned to grow in this financial year also. But to give you accurate guidance, we would do it in quarter 2 con-call. So that exact guidance will be given to all our stakeholders. As there are some geopolitical issus, so because of that, it is - it will be right on our part to give the guidance when we have more clarity as far as ground reality is concerned.

Got it. And we were entering some different segments, like renewable energy, some projects. So do we have any updates on that?

So, I'll ask Mr. Rishabh to comment on that.

So, we have around 40 megawatts of PPA signed with the Madhya Pradesh government, We're just in the final stages of finalizing the commissioning and the vendors for this. So, I think in the next 12 months, it should be operational, maximum inclusive of everything. In this financial year, we will start billing from that unit. Page 4 of 16

Moderator Got it. So, what should be the revenue and the EBITDA margins from this? And as soon as we start commereialization, would we be running at full capacity? I mean...

Yes. As soon as we run, it will be run on full capacity from day 1. I don't have the accurate -- Tl share the revenue figures with you. I will gencrate a revenue of around INRIS crores to INR16 crores depending on the generation of the modules. And the capex will be around INR130 crores to INR140 crores of the total project.

INRI15 crores to INR16 crores anmual revenue and -- got it. And what about the EBITDA margins for these?

It almost - you can — the net operating income is 90% of the top line and this. The O&M cost is around 10%.

Got it. So, this is basically an IRR of about 10%? No, it will be around 15%.

You mentioned that the capex was around INR140 crores, right?

Yes. So, I will send you the exact working of the - we will share the exact working of the project, but we are commissioning the project at a projected IRR of 15% to 16% over a period of 25 years.

All right. Got it. So, I mean, for that, the EBITDA should be around INR20 crores to INR22 <s to have a 15% IRR on... e This will be highly leveraged also. I don't have the exact financial working with me right now.

S0 if you want, we can share it with you over c-mail.

But one thing which you can note down s that IRR should be cxcess of 15%. So, 15% s a base figure. So it can be excess of that also.

Al right. So currently, how much of capex has been incurred? And out of the total capex, how mmuch debt are we taking? In solar?

No, no. Still, we have to finalize in next 7 to 10 days. So accordingly, we take the debt thre. Tt will be leveraged up to 75%. 75% would be debt and 25% would be equity. Thank very much wish you all the best.

The next question comes from the line of Manan Shah with Moneybee Investment Adsisors. Page 50f 16

Yes, hi. Sir, thank for the opportunity. Sir in the current quarter, we were anticipating lower returns, which would have - which was looking to clevate the margins. However, it seems it is lower discounts which has helped us with the margins. So, are the retumns as per your expectations? Or I believe you were expecting lower returns in the current quarter?

See, return depends on the market conditions. We did expect that the return will be a little less, but I think it has come a little more than our expectation, but it is in the line as far as market trends are concerned. So overall, I think we have performed well above our expectation in this quarter.

Okay. Okay. Sir, then can you share what sort of growth in the bookings you have seen in the pre-winter and the winter shows that you've recently concluded?

So that is still continuing. There are some areas which still have not booked. So, we can give it in the next quarter. Okay. Okay. Sure. And I belicve there have been some raw materal hikes also in terms of cotton, I believe in wool as well. So, have we taken any hikes and are we looking to take any hikes?

And in the current year, we Wwere expecting to close the year at around 18% to 19%. We've hit the lower level. So, in the coming year, are we expecting to hit the 19% sort of margins?

No, no. We stated carlicr also in our, I think, the last con call that margin should be around 20%, including other income, EBITDA. And we have achicved that figure. So, we expect to be in this range only. Yes, there have been increase in the raw material prices.

And - but we have already covered before we went to our trade show, and we have alrcady taken a hike of around 7% to 8% n our prices also. So, we are fully covered as far as raw material hike is concerned.

Okay. Okay. Got it. And how are the sales for the summer wear going in the current scason given the summer has been much harsher this year?

It has just picked up as summer s a very long season as it starts in March and goes till August this year. So very carly to say about. But as of now, the sales have been good. Let us sc in next 4 months arc very important for us, like June, July, August, the major sales happen in these months. But we hope that the trend will continue, and we have good sales in summer as well Okay. And on the footwear side, this year was a great performance. So, anything that you're looking into the following year? Like how should the performance go from here on?

Yes. So, since the base is still small for - is very small, we are looking at doubling this turnover from footwear category. Currently, we were focusing only on online channels, and that will remain the primary driver of this category business. However, we are also experimenting and we placed oursclves in around 15 large format stores of Reliance, and we are speaking with other chains as well. Also, we have identificd around 30 to 35 of our larger EBOs, where we experiment - where we are retrofitting the store to house footwear, and we are experimenting with those. Page 6 of 16

So, I think in a couple of quarters, we'll have a better feedback in terms of the offline performance. However, the online performance of footwear will continue to grow. And even with just online, we will - we are looking at doubling our turnover in footwear.

Okay. And on the export side, we had exported some goods to Middle East. Any update on that?

How has that performed? And what are we planning for the coming year?

Yes. So Middle East, we had exported very negligible quantity, around 2,500 to 3,000 picces.

Out of that, 70% of that has been sold in the secondary market. This is only online. This is not offline.

And this was an experimental stage. We are very optimistic about this vertical. However, due to the uncertainty in the Middle East right now, buyers are ot ready to place orders for us. So, we expect a delay of 2 to 3 months before we can get a repeat order.

Okay. Got it. And in terms of the cash that we have on the balance sheet, you mentioned that out of that INR140 crores capes, around 25% would be equity, balance is debt. So the surplus cash that s there then, what - how do we plan to then use it over time?

Already company is giving a dividend every year. And this year also, I think the company has announced INR 20 dividend. So, balance, I think we are also looking for the good projects in BESS also in solar also. So those projects -- some of the projects we think that will come in this financial year as well o maybe we can gt order in this financial year and can be excouted in next financial year. So, some cash will be used in those projects. And we will not go for any tender where the IRR is less than 15% to 17% evenin future as well.

On the BESS side, you said we are exploring some projects. So, are these on the EPC side or PP? TPP side.

Okay. So, to complement our current IPP order that we want...

Manan Shah, I would request you to please come back in the queue for further questions. The next question comes from the line of Viraj Parckh from Camelian Asset Management. Please go ahead.

Thank you so much for the opportunity, sir. Apologies, I joined the call a litflc late. So, if I'm repeating the question. First, I think [ heard you're not giving an annual guidance right now giving in Q2. But is it possible for you to help us understand what is the channel inventory situation right now, channel stocking in terms of this year how we're cntering info the summer and winter this year?

Ithink Im pleased to share that we arc in a very comfortable position as far as our inventorics are concerned, not even at our level, even at our store level also, even our channel partner level also. And that's why we have been guiding the - like even this year, we will have a very good growth. But what I'n saying is that the actual growth numbers or actual guidance, we can only Page 7 of 16

Sir, i it possible for you to give us a dircction in which the 227 pans out? Can it be at far better or than '26, how it has gone based on the inventory situation and already the winter booking which has concluded part of i, it is concluded.

We will be having a good growth in this financial year also, but only thing I'n saying s that the actual growth guidance, like last year, we gave that 15%, we will achieve, and we achicved 16%.

So, L would like to be very near to the acourate guidance. So that I can only give in quarter 2, but there will be definitcly a growth in this financial year. Double-digit growth is definitely on the cards.

Sir, I think last year also, we were looking to open 40, 45 EBOs. If Tlook at our 10-year mumbers, we have opened only 26 this year from 471 to 497 net, ' saying net we've opened. So, when you say 40 to 45 new stores next year as well, is that only the -- is that a gross number or the net mumber?

No, 1o, if's a gross number. Actually, what happened is that we didn't take any corrections in last 3, 4 years. So, we took a correction of around 14, 15 stores which were wprofitable. So, we closed those stores. But otherwise, we opencd 43 stores. But that was a one-off correction, which we took it last year because it was long pending as we could not sustain those showrooms in last 3 years.

So, we thought of closing it and making the company more profitable. So that's why we've taken a decision of closing 14 stores last year. Otherwise, the gross addition was same what we indicated. And this year, Ithink the gross and net would be almost near to 90% as I don't sce any correction of or any closing of stores in this financial year because that decision already, we have taken last year.

The stores we arc opening as on date, can you help me understand this average size per store?

It ranges from 1,000 square feet to 1,500 square feet, the average size.

And this is reduced from carlier stores which we arc opening up, right? I think carlicr we used to open bigger stores?

No, no, 0. I'm talking about the average, some stores are 1,000, some are 2,000, some are 1,500, but the average size is around 1,000 to 1,500 square feet. And sometimes we do get a good location, but the size is only 700, 800 also. And there are some stores which are 2,200, 2,500.

So average, I'm talking about this number. Tbelieve we are also... Page 8 of 16

Just for example, we gota good location in Noida Mall of India, where the store size is only 650 square fect, but the sale we are achieving is INR4 crores. But I cannot leave that location just because it is 650 square fect. So, there arc some good malls or some locations which are very highly - having high footfalls, but the square fect size is small. But - and there are some stores we are getting where the store size is bigger. But the average, I'm talking about 1,000, 1,500 square feet, Sir, the stores in which we showcase our footwear collection as well, those will be bigger to them I'm assuming, right, 2,000 square feet plus? Yes, yes, yes, you're right.

So how many of those stores we have on date out of the network of 4972 Around 50, I think. So those stores above 2,000 square fest, we have home also and we have footwear also. So those are bigger stores and are, I think, around 50 in the total count.

The last question, Il get back in queue. I think our inventory is approximately INRS70 crores.

Ithink the number of -- despite -- can we have some kind of understanding of how we're going to maintain our inventory levels or days, you can say, over the next 2 years? Because I think despite having a good channcl correction and decent growth, the inventory of the number of days or the value of it i still quite high for us.

Tt has come down to 144 this year as compared to 169 last year. Now we are opening more...

And as we're doing business more in SIS and more in large format stores and onlinc, I don't see that inventory level comes down because only we take the end sales. So, when we only take the end sales and the inventory is lying in our account only at our channel partners, so it will remain a this level only.

Got t, sir. Thank you so much. Al the very best. Lwill get back in queue.

Thank you. The next question comes from the line of Shiva from Pumartha Investment Advisors. Please go ahead.

Thank you for the opportunity. My first question is the solar plant. It was said that according to KUSUM, there's a 30% subsidy. Are we cligible for that subsidy? And is it included into the estimates of IRR?

No. So that subsidy is for DCR modules. We were fortunate cnough to get this tender with the cxception of putting up non-DCR. So that is almost already INR1 crores, INR2S lakhs cheaper than a DCR module, 30% cheaper. So, you're talking about the CFA that the center offers of INR1.05 crores per megawatt. But non-DCR modules arc cheaper by that, That is available for DCR modules. Page 9 of 16

Okay. So ours is a non-DCR model?

Yes. It was one of the last tenders to be cligible for non-DCR modules.

Okay. And the entire capacity is 49 megawatts, sir?

It is 35 megawatts AC with an overloading of 30%, we'll do anywhere between 43 to 45 megawatts. We are still doing the feasibility study and the technical study how nuch overloading we need to do.

And the PPA is signed at 2.79, what is the per unit? Yes, at 2.79.

Okay. And could you just help us with respect to what was the annual returns and discounts as a percentage of gross sales for this full year?

Tust a second wait for a minute. So last year retums were 15%. This year, itis 17%. Returns?

Yes. But the discount percentage has gone down.

Last year, discount percentage was 10.16%. This is 9.44%, this year for the revenues -- of overall revenue.

Understood. And I might have missed it. What is the plan for this year's growth in the EBOs network for us exclusive?

We have already answered this question that the growth target we will - the guidance we will give in quarter 2 con-call. But what we indicated is that there will be double-digit growth, but actual growth, what we can do in this financial year, we will give you in quarter 2 con-call T'masking the number of stores cxpansion? 40 to 45 at in this financial year. Tt may go to 50 also. Okay. Thank you.

The next question comes from the line of Sheetal Shah, an Individual Investor. Please go ahcad. AmI audible, sir? Yes, you are audible.

Sir, congratulations on meeting and exceeding your guidance. My heartiest congratulations to you and your team. Sir, I have two questions. Sir, company had become profitable in Q4 aftera Page 10 of 16

gap of many years, I think 3 years. So sir, is it due to some structural change you have made on your side or is it due to market dynamics? I just wanted to know how - is it sustainable, especially in Q47 Yes, of course, it is sustainable. And I think the reason is that adequate provisioning has been taken in quarter 3 and the discounts have been less. As Tindicated, just it was 9.44% as compared 0 10.16%. So that was another factor, which was helping s make it profitable. And thirdly, the summer sales have increased. We have seen that there is a jump in the sales in the fourth quarter.

So that also has been improving the profitability of the company in this quarter.

Okay. Thank you, sir. And sir, I'm not asking about the guidance. As you have told you will speak about it in Q2. But just I wanted to know, sir, what levers will play out in achicving your guidance this year, sir, especially FY272 And sir, what arc the headwinds which you expect not to happen in achieving your guidance just a broad view, sir?

To be very honest, I think we arc more confident as compared to last financial year because all our categorics have shown results. Our Rock. it brand is growing at a very good growth rate.

Our footwear division is also contributing a lot. Our Home Textile is gaining acoeptance year- by-year and existing categories arc also performing well.

So T think all these categories which have been -- which have shown growth in last financial year would significantly contribute in this financial year as well. So we don't have any doubt on that. Butyes, as faras your question is that what can be the headwinds. So headwindis definitely the cconomy.

Ifwe sce that there has been some inflation caused by some LPG or petrol rise, so that may deter some consumers to defer spending for a certain period of time, but that will happen for everyone, not for our brand. So that is the only concern we have right now is that the geopolitical tensions and situation should get normalized as soon as it can be so that it docsn't have any cffect on the Indian economy.

Okay. Very good, sir. And the last question is, sir, about raw material inflation. Sir, is it passed through with immediate cffect or it will take a lag to pass through?

Immediate. So we don't wait for a second when the price goes up. So I think let us — to be very honest that before we go for a trade show, we normally cover all our raw material because we know that how nmuch expected booking we can have it on our books. So accordingly, the raw material is also covered. And also, we take a hike of 6% to 7% or 8%, depending upon like some of the material, which s not covered. So to answer your question, yes, we are adequately covered as far as inerease in raw material prices is concerned. So it will not affect our margins.

And no impact on the margins due to raw material hike in raw material price? Yes.

Okay, sir. Al the best to you and your team, sir. Thank you, sir. Page 11 of 16

The next question comes from the line of Rohit Arora, an Individual Investor. Please go ahead.

Sit, are we expected to be profitable in Q1 of FY27?

Sce, I can't say -- I can't guide you quarter-by-quarter. But one thing which I can definitely tell you is that we would be better as compared to last financial year. And the exact guidance we will give in quarter 2 concall. But one thing which I carlicr also indicated is that the double-digit growth is definitely on the table. Double-digit growth. Yes.

And sir, are we looking to expand our summer portfolio?

It's - I think over the last many years, it has been growing faster than the winter wear category and that is why the contribution from summer is also increasing every year as compared to winter wear category. So that process will contimue because being a tropical country and being of 9 months of summer. So this country is definitely going to outgrow winter as well and other categorics. I just give you a range of like this year of winter wear range contributed 45%. Non-winter contributed 42%. Textile contributed around 10.2%, and accessories and footwear contributed 2%. So that indicates that now we are almost equal o our winter wear range as far as summer products are concerned.

And sir, are we looking to expand our accessories partfolio?

Yes, consciously we are doing it as the number of stores are increasing, so accessorics arc also growing.

We have accessories of only men or we have accessories of women as well? Both men and women both. And kids portfolio?

The kids portfolio s doing around INR100 crores. It has grown to INR110 crores this year. Annually? Annual revenue run rate Okay, sir. Thank you.

Thank you. The next question comes from the line of Ankur Gulati from Genuity Capital.

Tust one question again. Q1 growth is similar to. Page 12 of 16

Can you please speak loudly?

Sir, what I'm trying to understand is Q4, W got benefit of our strategy where we arc establishing our brand in full scason. So the strategy is there it will play out in Q1. So the seasonality impact on profitability will go this quarter or are you expecting it will not?

But see, in the quarter 1, what happens is that we get returns of winters. So that is why it brings down my revenue. And that happens every year. So we are trying to reduce it. But as you know, that the third quarter is very, very heavy and the returns normally comes in April and May. So that is why it reduces my revenues in that case. And the primary sale also is a little less. But as we g0 to Q2, Q3, it starts increasing. So the Q1 has around 12% to 13% of the revenues, then quarter 2, quarter 3 starts building up.

So the 17% return, which you referred to that was from which quarter, I mean, INR280 crores revenue booked in?

For full year, I'm talking about 17% return.

Okay. And just to understand the business better, those INR600 crores sales were there in Q3 on average, 15% to 16% comes back in Q4 ~ QL Is that what you meant to say?

Ttis divided between Q4 and Q1. Not everything comes in Q1. So some of the quantity comes in Q4 and some of the quantity comes in Q1. Majority comes in the Q1.

Okay. Fair cnough. So Q4 this year is up, let's say, 35%, 40%, right? And on the net sales basis for Q, can we at least expect this INR140 crores of Q1 last year will also have similar 40% bump because at least the summer scason, summer offers, which we have, summer products have started?

Tean't give revenue guidance for quarter-to-quarter. I can only give you annual guidance because there are variations in quarter-to-quarter depending upon the season, depending upon the demand. Soit will be prudent for s to give you an annual guidance rather than quarter-to-quarter guidance.

Fair enough. And your anmial guidance, the solar business is over and above that oris it included in that?

Solar business, we are above that. I'm talking about our standalone business.

Okay, sir. Got it. Thank you. All the best.

Thank you. The next question comes from the line of Jayveer Thakur an Individual Investor. Please go ahead.

Firstly, congratulations on a very good set of quarter 4 numbers. Coming to my question, sir, regarding the quick commerce tic-ups that we have, are they present only in Delhi or are we planning to scale this to the rest of India? Page 13 of 16

Yes. So for now, we started with off with Blinkit. And since Blinkit is more predominant in the Delhi NCR region, they also started experimenting with the dark stores in that particular region.

However, since we've tied up with Swiggy, now owr products are available in some dark stores of Bangalore also.

Also, we are one of the few brands which have also onboarded Zepto and arc in final talks with BigBasket. After we gt BigBasket, we will have the entire ccosystem of quick commerce where Monte Carlo products will be available. However, the final decision where the products will be placed geographically lies with the buyers only as with quick commerce players, we work on an outright model.

So the final call is with them. We are not working in a marketplace model with quick commerce because that will involve us taking care of the imventory. So to begin with, we are doing an outright business. So the final call for geographical penctration lies with the buyer as of now.

Sure, sir. That actually makes sense. Second question, s, that L have is on the fast fashion brands that are coming up nowadays. How are you planning to sustain the growth that we have in terms of double-digit growth that you do?

See, first of all, the fast fashion brands have not come today. They are here in India from last 10 years. So Zara is here in last, I think, 10, 12 years, they came in around 2009 and Shein came in around 2014, '15. So we have been competing with them. And we have our own USPs as far as designing and fashion is concerned. And India is a very large market. So it can accommodate fashion brand as well as large fashion brand also. So we don't sce any issu as far as our growth is concerned because of these brands.

Okay, sir, sure. And sir, on the online and the e-commerce side, can you just help me understand how much commission we pay to the e-commeree platforms like AJIO, Myntra that we have?

Yes. So se, these are all our trade agreements that we have with these guys. It won' be fair for me to disclose them here. But it varies because we operate in all different models. Its an SOR marketplace outright and margins vary depending on category to category. Margins arc also a combination of margins plus marketing spends, all of that. So it won't be okay for me to share the exact margin that we are giving these players.

No, sir, that's finc. I don't want a specific number, but just a broader structure as to how do we plan these commissions?

So se, the commission, so one thing when we look at our online business is we never want fo bleed money when we work online. So the base target that we have, we want to achieve the same profitability as our other verticals do. So all the margins are in line with the other channels.

There's not extra margin that is being offered to the online channcls. If can - if that can answer your question.

Okay, sir. Sir, s there any difference in the margins between the distribution channels we have? Can you just throw some light on that? Page 14 of 16

Yes. There are some differences based on the distribution channels because cach distribution channel has their own cost. For example, my MBO, SIS business will have an agency cost and a distributor cost, whereas my c-commerce and LFS will not have that. My LFS has a lot of ‘manpower cost.

My EBOs, which are franchised, do not have that much pressure on the top line. So the margins are limited over there. Our factory outlets have the least margin because they scll products at a discounted rate. So margins vary, but sce margins is ot the only cost component for cach vertical. So - but when we look at the expenditure, the total expenditure for cach vertical is within plus/minus 4%, 5%.

Okay, sir. And just one last question from my side. What sort of revenue contribution are you expecting from your home textile segment in FY27?

Tthink we will maintain around 13% to 14% through the overall revenue.

Perfect. All right. That’s it from my side and the all the best for the future. Last year it was 12%.

Okay. So we are seeing a growth of around 3% to 4% here?

We see a growth in home textile segment as recently we had a very good trade show. So we expect that the contribution from home will grow from 12% to 13% to 14%.

Okay, sir. Sure. Thank you for your answer.

The next question comes from Sheetal Shah, an Individual Investor. Please go ahead.

Yes. Thank you for the follow-up. Sir the company is regularly paying a very good dividend, sir. A request from our investor side at some point, you consider buyback also, sir. The reason being our share price is languishing in the same range for so many times, the company has good cash to go for buyback. And we are trading at a very low multiple compared to our peers. I's Just request. Keep a note on this, sir.

Thanks for the suggestion. And we'll pass your suggestion to the board as well. Thank you, sir.

The next question comes from Rohit Arora, an Individual Investor. Please go ahead.

Hello, sir. Are we looking to do more IPP projects after the completion of our current projeet?

Sce, it all depends on the ROI we get. So if IRR is good, definitely we have been thinking of doing ofher projects in BESS and other energy area also. But it all -- once we implement this, and it all depends on the IRR we get in those projects. If IRR is good, we definitely go ahead in that also. Page 15 of 16

Do we have to acquire land? A separate subsidiary has been made.

Do we have to acquire land on our own to do a project?

Yes. So most of the projects that the government gives land has to be acquired by us, but we prefer leasing land instead of buying it because that gives us a better IRR on the amount - mvested amount. And are we looking. .2 To answer your, aggregation is done by us only. Aggregation?

Yes, land aggregation and leasing is done by us.

And are we looking to expand our manufacturing facilities? Any capex in them required? Its in the normal range.

Tn the normal range of INR10 crores to INRI1S crores every year, not more than that. ‘We prefer outsourcing our increase in production.

And moreover, 85% of the production is outsourced from different vendors across India. Okay, sir. Thank you.

Thank you. There are no further questions at this time. I would like to hand the conference over to the management for closing comments.

Thank you. On behalf of Emkay Global Financial Services Limited, that concludes this conference. Thank you for joining us and you may now disconneet your lines. Thank you. Page 16 of 16