Q1FY26 establishes the 4-quarter baseline: 26% GMV, Beauty EBITDA at 9%, Fashion at -6.2% (from -9.2%).

My first question was regards to the mix of beauty business, right? So while I do understand that there is sensitivity with regards to sharing the exit margins of different channels of BPC, but can you share some directional color on where we stand on margins for our physical stores as well as House of Nykaa brands? And where do you see them moving as you proceed ahead?

So look, as you rightly said, the Beauty segment is composed of 4 very different businesses, one being beauty.com, which is the e-commerce platform. Second is the physical retail stores. Third is the House of Brands and the fourth is eB2B. So, all 4 actually have relatively very different types of margin profiles. We are obviously, we've not given the breakout in terms of what the exact margin profile is of each business. But what I can say is that the dot-com business being more mature, more established, has a stronger profitability than what the weighted average is. And the retail stores also, as I mentioned on my slide, it's a profitable store network. So that business is also profitable. And the owned brands business, as you know, consumer brand space, they have the kind of gross margins are what they are. They're healthy. So even that business has a decent margin profile and an improving one. Finally, the last business is the Superstore business, which is also part of the Beauty segment, and that has a very different profile, as we've mentioned in the past. That's a volume, that's a scale business, but the margins are lower. And I think we've also shared with you that currently, that business is still loss-making, but is on the path to profitability. So those are the 4 very different businesses. As I said, 3 out of 4 of them are profitable today and some more than others in terms of overall profitability. But all, I would say, in a good place. And most importantly, all 4 businesses that make up the beauty vertical have room to improve their profitability from here on out as well through different levers.

So my question was largely focused on the House of Brands and the physical stores piece. So directionally, do you see the margins improving, I don't know, maybe 300 basis points Y-o-Y or like how much margin improvement?

Because these are consolidated, difficult to predict, but definitely, House of Brands has additional margins at One Nykaa level compared to just the retailer margins that are given to retailers. So I think it is a mix like Anchit said. The mix also changes quarter-to-quarter. So it's very difficult to give it's a composition.

This is largely to understand where the investment is going when I look at the beauty vertical, right? So we do see that marketing expenses have risen Q-o-Q, Y-o-Y as well, and they were already inching upwards in the previous year. So some color on like is this investment going into acquiring more aggressively or incremental customer acquisition is becoming costlier? What is happening there? Secondly, on the other expenses piece, right, I see that piece has grown by almost similar growth rate, if not roughly exactly same to revenue growth rate as well for Beauty business. So where is that investment going, if you can break that down for me?

I think on marketing, we are clearly acquiring new customers. We don't think marketing is getting more expensive. I think the opportunity for accelerating acquisition is there and our own corporate profitability supports a more aggressive acquisition on the beauty front. And in all of the beauty businesses, so there's a store rollout on an aggressive basis. There's new customer acquisition on an aggressive basis. Owned brands, we are accelerating our growth, which we reported earlier in the presentation and eB2B is growing as per plan. So I think there is a significant marketing investment. And also, we are doing more brand building investment also a little bit more. Yes. But just to add to that, one piece, of course, is that it's not that it's getting more expensive. It's just that we are seeing opportunity to increase our investment because there is more growth to be had. So that's a positive. I think the other aspect of why the marketing investment is looking higher is, again, back to the mix, right? And the House of Brands, Nykaa House of Brands has had a superlative growth this quarter. And so it is starting to play a bigger role in terms of the overall mix to business. And given the margin profile they have, given the gross margin that business has, it can also afford higher marketing spend as a percent. So it does have slightly higher marketing spend as a percent of sales versus the dot-com and the retailer businesses. And as they continue to grow faster than the platform business and they continue to become a larger percent of the overall revenue mix, it's also reflecting in the marketing as a percent of sales at the segment level. On the other expenses question, which you had. Number one, when you look at the beauty vertical, other expenses have remained in the same range versus a year ago as well as versus the immediate preceding quarter. What I'd like to add over here is that this is a combination of G&A, employee expenses as well as our web and tech expenses. And I would like to add over here that we continue to invest in terms of web and tech. But in terms of percentage, this has remained range bound. On other expenses, there is a slight investment going on in the various areas of technology where we are doing upfront investment and then plan to recover it as Software-as-a-Service over a period of time for a couple of clients now, and that is what we intend to do going forward. And I think that's on the tech side. And I think on the other one, I think overall expenses are under control.

My question is more general on the demand conditions for both BPC and Fashion segments. What are you observing currently? Do you see improving trajectory for next year for the market in general and for yourself as well? So it would be helpful if you can share some color over there.

I think it's clearly, we're living in very strange times, I think, to say the least. And there is clearly uncertainty. And I think there is some amount of pressure that remains on urban. Again, I'll only talk urban because, as you know, our business is less weighted towards rural. But on the urban side, clearly, there is some pressure. So there are areas where the pressure is easing, but there are areas where the pressure remains there. So I think as you look at other names who also reported, I think it's a mixed bag. So I think there has been improvement in some areas, but in other areas, there seems to be uncertainty. But I think what's important is despite an uncertain environment, I think Nykaa has delivered very, very, I would say, commendable results on the BPC side at mid-20s growth. And coupled with the macro environment also, it has been a very competitive set of players focusing their energies and efforts on the BPC space over the past several quarters, as I'm sure you're aware, quick commerce players, horizontal players, specialist beauty players. So despite a very, very, I would say, a lot of attention and a lot of focus on this category, Nykaa continues to deliver market-beating growth despite already being the largest player in the space, right? So I think with the uncertain and a mixed bag of macro indicators and a highly elevated state of competition over the past several quarters, in light of that, I think the growth we've put up is commendable and that bodes well, I think, for us for the coming quarters as well because we do think that certain pressures will ease in terms of competition and also certain pressures should ease and as we get more clarity on the way things shake out with some of the macro and the trade concerns which we are facing. I think as some of those things shake out to the positive, I think that will only be a positive for our business and for the category.

My first question is great performance on Dot & Key as well this quarter again. I can see that the GMV is now double digit of the total GMV there, and it's still the run rate growth rate is 100% Y-o-Y. If you can talk a little bit about where Dot & Key could go in the next 2 to 3 years in terms of run rate it could hit? And secondly, the margins as well, you already have highlighted that currently, this is high teens EBITDA margins. With this kind of a growth rate with high teens margins currently, where could it go, that you would like to call out?

Yes. So I can take that. So I think it's been a really good sort of couple of months and a couple of quarters for Dot & Key. I do see that the growth is continuing in a very strong manner. I think they've got very strong categories that they're playing in, whether it's sunscreen, moisturizer, both where they have market leadership position and they continue to take share. But also the serum play that they're trying to get into, this is a new category where there's a lot of growth possible where they have relatively less share compared to those other 2 categories. So I think there's a lot of acceleration possible there. So yes, I see the growth continuing in a strong manner, probably not 100% year-on-year for many more quarters, but there is very significant growth that we're seeing here. I think what we have more certainty on though is on the margin side. I do feel that there is a clear path to even higher margins here. And I think here, we're looking at all the strong FMCG brand companies, both in India and globally, where 20% is what most companies strive for with these types of brands, and we will work towards that. So both, we do see growth continuing in a very strong way, and there's further margin expansion possible as well. And just the last thing I can add to what Adwaita said is that the brand has grown quite wide in terms of its distribution and is doing GT/MT distribution along with being on 3P platforms. And basically, all areas of distribution are being done well. And I think as you're aware we are taking a couple of owned brands international, like we've begun with Kay Beauty, and I think Dot & Key also may have an opportunity in future to go global.

Is there any tangible benefit that you guys will have from the U.K., India deal? I know that includes cosmetics. And I know some of your partners that you've called out in the past are U.K.-based. So I'm just wondering what impact that has on everything from what you can sell on the platform at what prices as well as your margins there?

Yes, yes. I think you covered it. I mean, yes, there are brands of ours, which are U.K., I mean, founded by U.K. founders, but I think a lot of it depends on where the manufacturing is being done. So we're looking into it. And yes, there are some brands where it could be a net positive. And any benefit that's there, we will take a call on whether that gets passed along to the consumer in the form of pricing or we try to keep that as a margin benefit. So I think it's all being evaluated. It's yet to be seen. But I wouldn't expect it to be meaningful because, as you know, most global beauty brands of size and scale are either U.S. or Europe or Asia-based. So the U.K. is a few high-quality brands, but the scale is still small.

How is new versus repeat ratio in BPC this quarter? Are higher marketing spends leading to more GMV from new customers?

Share of GMV coming from new customers. So I don't think we are disclosing the mix of business between new and repeat. But as we've said in the past, we are very lucky to have a very, I would say, very sticky, very loyal base of consumers, and we do a lot to continue to drive existing shoppers to shop more frequently and to shop for more items on the platform. So what we call as repeat customer annual consumption value is a priority of ours. And repeat buyers contribute a majority of the business on our platform. That being said, new customer acquisition is also an important driver of growth, but it's also more than a driver of growth in the quarter in which those customers are acquired. It is a driver of future growth, and it's an investment for future business and products, future premiumization opportunity on that customer base. So it is a priority of ours. It's, in fact, increased in terms of prioritization over the past several quarters, new customer acquisition, and it continues to grow very, very well. But in terms of mix, it's not something we are disclosing. But as we've said in the past, majority of our business does still come from repeat buyers.