Ladies and gentlemen, good day and welcome to the Campus Activewear Limited Q4 FY 2026 earnings conference call. As a reminder, all participant lines will be listened on. There will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded. I now hand over the conference to Hiral Keniya from EY LLP. Thank you and over to you. Thank you, Yashaswi. Good evening, everyone. On behalf of Campus Activewear Limited, I welcome you all to the company's Q4 and FY 2026 conference call to discuss the performance of the company and to answer your questions. We have with us the management team comprising Mr. Nikhil Aggarwal, Whole Time Director and CEO, Mr. Sanjay Chhabra, CFO, and Mr. Uplaksh Tewary, COO. Before we proceed this call, I would like to draw your attention to the fact that today's discussion may contain forward-looking statements that are subject to various risks, uncertainties, and other factors which would be beyond management control. We kindly request to bear in mind that there might be uncertainties whilst interpreting such statements. Please note that this conference is being recorded. We would now like to start the session with opening remarks from the management team. Afterwards, we will open the floor for an interactive Q&A session. I would now hand over the conference call to Nikhil sir for his opening remarks. Thank you. Over to you, sir. Thanks, Hiral. Good evening. Thank you all for joining us today for our quarter four and FY 2026 earnings call. We continue to demonstrate strong performance in quarter four and FY 2026 and are proud to report a 12.3% YoY growth driven by 18.9% growth in our online channels and 5.5% growth in our distribution channels. This reflects the strength of our execution across key levers, expanding distribution reach, accelerating online channels, and enhancing our product mix, all of which contributed to a higher average selling price. Our ASP grew by 7% year-over-year to INR 683, driven by robust demand for our sneaker range and a healthy product mix in women and kids category, reinforcing Campus as a trusted brand for the entire family. As a leader in making premium sneakers accessible, we remain steadfast in our commitment to democratizing design-led, high-quality footwear. Our sneaker portfolio continued to deliver strong momentum, accounting for a rising share of total volumes and reaffirming growing consumer preference. Our accelerated time to market of 80- 100 days, enabled by a fully integrated manufacturing ecosystem, gives us a distinct edge in rapidly introducing new designs and silhouettes while seamlessly aligning with market demand. We strengthened consumer engagement through the launch of nearly 250 new SKUs in FY 2026. The premiumization trend remains firmly in our favor, well supported by a richer mix of premium SKUs and a strong response to our refreshed product offerings. During the year, we sharpened our brand identity with the launch of a new brand logo, and the same was unveiled through a very successful brand meet with our distributors last week. At the core of this identity shift are three outward arrows symbolizing multiple paths and possibilities, reinforcing the idea that growth and self-expression are not bound to a single direction. Reflecting the Move Your Way philosophy, the refreshed identity celebrates freedom of movement as an extension of personal ambition, culture, and individuality. With a global design perspective rooted in the spirit of Indian youth, it represents a generation that values authenticity and the freedom to shape its own journey while marking Campus' evolution into a culture-led brand spanning fashion, sports, and everyday lifestyle. While we prioritize profitability over aggressive retail expansion this year, our exclusive brand outlet network remains steady at 300 stores. Meanwhile, our upper manufacturing facilities at Paonta Sahib have stabilized, and we have commenced production at Pantnagar unit. Currently, these units are delivering an approximately 200,000 average monthly output, which is likely to double by end of FY 2027, enabling us to efficiently serve rising demand across sneakers and other fast-moving categories. Despite ongoing capacity expansion, we maintain disciplined working capital management, resulting in a strong balance sheet and healthy return ratios with return on equity and return on capital employed at 18.1% and 22.4% respectively. In the context of evolving geopolitical developments and inflationary pressures in certain raw materials, we took timely calibrated price actions across the entire range to safeguard margins. Looking ahead, we remain firmly focused on our long-term strategic priorities, driving innovation, staying agile, and maintaining a consumer-first mindset. With a product portfolio anchored in technology, design responsiveness, and evolving lifestyle needs, Campus is well-placed to further strengthen its position as a trusted everyday brand for young Indians. Thank you, and now I hand over the call to our CFO, Mr. Sanjay Chhabra, to take you through more details on the quarter four and FY 2026 performance. Thank you. Good evening, everyone, and thank you for joining us on Q4 and FY 2026 earnings call for Campus Activewear. First of all, I'll take you through the quarter four performance. Our revenue from operations grew by 12.3% year-on-year to INR 456 crore. Largely benefited by higher revenue in the online channel, which has registered a growth of around 19%, and distribution channel, which has grown by around 5.5%. The company sold approximately 6.8 million pairs during this quarter, and the average selling price grew by 1.5% year-on-year to INR 668 per pair. The revenue mix between men and women and children categories stood at 78% to 22% versus 81% and 19% respectively in the last year, same quarter. Our gross margins were at 52.1% in quarter four FY 2026 versus 52.3% in quarter four FY 2025. Marginal dilution in gross margin is driven by the GT charges impact in online business, which is largely offset by better channel mix, which is higher online saliency. Our EBITDA for quarter four was at INR 88.5 crore. The EBITDA margin stood at 19.2% during the quarter, an improvement of 50 basis points versus last year, driven by volume and revenue growth. Our PAT for quarter four was at INR 44.1 crore. The PAT margin stood at 9.6% during the quarter, an improvement of 100 basis points versus last year, once again driven by revenue and volume growth. I'll take you through the full- year performance. Our operational revenue for the full- year FY 2026 grew by 11.4% to INR 1,774 crore in FY 2026, largely benefited by higher distribution, which has registered a growth of 10.5%, and online channel, which grew by 9.8%. The company sold approximately 26 million pairs during the whole year FY 2026. The average selling price grew by 7% year-on-year from INR 658 to INR 683. The revenue mix between men and women categories and children stood at 79% is to 21% versus 80% is to 20%, which shows a 100 basis points improvement in women and children category. Our gross margins were at 53.5% in FY 2026 versus 52.3% in FY 2025, an improvement of 120 basis points driven by product and channel mix. Our EBITDA for the year FY 2026 was at INR 314.7 crore. The EBITDA margin stood at 17.5% during the year, an improvement of 145 basis points versus last year, driven by revenue growth. Our PAT for FY 2026 was at INR 150.1 crore. The PAT margin stood at 8.4% versus 7.5% last year, an improvement of 80 basis points driven by higher EBITDA margins. Our balance sheet remains strong with return ratios that is return on capital employed at 22.4% and return on equity at 18.1% as of March 2026. With this summary, I will now conclude my remarks and open the floor to the moderator for Q&A session. Thank you. Thank you very much. We will now begin the question- and- answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We'll take our first question from the line of Aditya Soman from CLSA. Please go ahead. Yeah. Hi, good evening. Two questions from me. Firstly, if I look at the product mix in the pyramid that you shared compared with Q4 2025, we've seen a significant increase in the number of the shoes sold below INR 1,000. One, could you just explain what happened and why was there a shift between the INR 1,000 and second, this pricing is MRP or is it the price at which it was actually sold? Sorry. Okay. This price is the price which the company realizes, which is our average selling price. If you're referring to the last slide of the investor deck and the increase or the movement between different price points, that is a reflection of the corrections in MRP which happened post the GST change. Understand. In other words, basically we've got many of the pairs of shoes that were priced above INR 1,000, they are now priced below INR 1,000. Yeah, 12% GST got revised to 5%. Correct. Okay. No, that's very clear. Second question, just in terms of online mix improving, can you just throw a little more light on what's really helped with that? Hi, Uplaksh this side. On the marketplace operation, of course, you're aware that for the last few years we have increased our overall focus on marketplace operation as compared to the outright business. The growth levers have been on three front, of course, apart from Flipkart being the biggest partner for us. We have made a lot of improvements in our revenue mix with Amazon, Snapdeal as well as our own brand.com. There's been further very aggressive growth that we've had on these platforms as well along with our larger players continuing to grow, hence the highest salience in the last quarter. That's very clear. Thank you. Thank you. Next question is from the line of Gaurav Jogani from JM Financial. Please go ahead. Thank you for taking my question, sir. First, question is regards to the price increase. Nikhil had mentioned that you have taken a price increase because of the raw material prices increasing. What was the kind of price hikes that we have taken? Hi, Gaurav. I would not like to diverge into numbers, but there has been macro inflationary pressures with respect to raw material pricing and minimum wage impact, which has affected the entire industry. Proportionately, we have taken price hikes across the range. We're also working on cost saving initiatives internally within the organization, but at the same time, we have taken price hikes, so to mitigate these pressures as far as possible. Rest assured, we're doing everything we can to still deliver healthy growth and margins. No. I'll ask the question some other way. Because the raw material inflation has been sustaining, so the recent price hikes that you have taken, will that suffice to you to cover the inflation or you might need to take more price increases? No, we've taken enough increase in pricing to cover the inflationary impact. We don't see the RM impact going worse from here. I think we've seen the peak, and with time, in maybe a quarter or so, it should start coming down, as the war settles. The pricing will not change, so that should benefit us in the later half of the year. Yeah. My other question is for Mr. Sanjay. Our other expenses for the quarter and also for the year, X of the ad spends have increased by 5% only. If this for particular quarter, if you look at the online sales, the online revenue has grown also in 19% odd. The commissions, I am assuming, would also increase. Despite that, the other expenses have only increased by 5%. What is leading to this 5% growth only, and how should we build in it for the period ahead? Okay. It has a couple of elements. You said rightly, online commission. Online commission, again, is a dynamic negotiation between our platforms or the channel partners, and at times there are waivers based on events. That's one element. Also, if you see, as Nikhil mentioned, that our store count remained flat, which means that there was no new cost associated with EBO stores which came in this quarter. That's also one of the reason. These two things kept the increase in other cost to the range of 5%- 6%. The lease line item, if you look at the rentals, the lease line items showing a sharp increase in the lease related cost in the cash flows. If you can give us a sense what kind of rent we have paid for the entire year FY 2026 versus FY 2025, because the lease line item looks sharply increasing, almost 3x. It's a technical accounting thing. The Pantnagar facility which we acquired, technically it is on a 71-year lease from the state government. The cash outflow is shown as a payment of lease liability, whereas like in a normal course, you would treat it as a fixed asset acquisition. That's why that number looks a bit inflated compared to previous year. What would be the normal rental if we have to just have for FY 2026 versus FY 2025 that will be really helpful. Gaurav, for a full year, if you eliminate INR 65.4 crore, that is the normal number. Sure, sir. Thank you. That's all for me. Thank you. Next question is from the line of Aryan Garodia from Ambit Capital. Please go ahead. Hi, sir. Thank you for taking my question. Sir, for FY 2026, if I see the inventory days, it had increased by approximately five to six days. If I see that, which leads to increase in cash conversion cycle. How one should think of going ahead with respect to inventory days, and what are the drivers for increasing in inventory days for FY 2026? Okay. I just want to highlight a bit here. Last year, we reached to a FG inventory level in terms of pairs or in terms of days of cover, to a very minimal level. We had to do that correction. We were deferring that correction. First, we were prioritizing liquidation of non-GST inventory. Then eventually where we have reached as of March 26. That is the right level of inventory to sustain the kind of growth or what we are aspiring for. I would say that the level at which we are in terms of FG inventory, that's the right level. Going forward, it will continue to be that. Got it. Sir, second question is what drove the decision to undertake the recent brand refresh, including the logo change and the broader branding initiative undertaken this year? What benefit do we expect this year to deliver in terms of consumer perception or, say, brand positioning or consumer acquisition and in the long-term growth per se? This is something been on our cards for a long time, actually. It's not like a very recent decision. Of course, we've executed it right now. Broadly, the idea behind that is that the logo, we wanted to come up with a refreshed logo to also project the initiatives and the changes that have taken in the brand. We have really transitioned and transformed the entire brand positioning in the last two years or so. Therefore, the brand refresh or the logo refresh was important to be able to justify that to the end consumer. This is something that we do a very detailed consumer study every year in January across cities with thousands of consumers. This is also something that was very well received as a question that when we put up to them. They did really appreciate the brand refresh, I think, the new identity. It's been very well accepted in the market, very positive feedback from all the trade partners, including distribution channel and online partners. The wordmark has obviously been very strong as Campus wordmark. We do believe that the brand in today's time, it needed a new identity, in terms of logo as well. Got it, sir. Just one last question. Which could be the areas where the cost can be saved going ahead? Would ad spends be a part of this exercise since it would land up impacting the market share growth? No, great question. Ad spend is something that, or specifically I would rephrase that as marketing in the brand-building initiatives. We don't want to compromise on that at all, and in fact, we've taken a fairly aggressive budget in FY 2027 on the marketing side, of course, keeping the overall margin in mind. And that is something that we've never compromised over the last 20, 25 years. It is the philosophy of our brand identity that we've continued to invest in marketing no matter how the markets have behaved. And that is why we've continuously grown the market share. So, we'll continue doing that this year as well. We don't want to deliver margins just by cutting corners with respect to marketing. Got it, sir. Thank you so much. That answered my questions. Thank you. Thank you. Next question is from the line of Umang Mehta from Kotak. Please go ahead. Hi, thanks for the opportunity and congrats on a strong year. My first question is on the sneakers portfolio. Possible to share how much did they grow, what was the mix in terms of volumes, revenues in FY 2026, and how are you looking to scale that up going forward? We've had a very exciting, I think, year with respect to sneakers portfolio. We've grown this portfolio about 100% year-on-year. This year we've delivered also 100%+ growth on an annual basis. Quarterly it's been 50%+ growth with respect to our sneaker portfolio. It is a testament to the fact that the development with respect to the products that we have done in sneakers and the quality we are able to produce it at from our new plants at Pantnagar and Haridwar have been phenomenal and very well received in the market. We'll continue doing that. It is something that is a big priority for us as a brand and a company, and it's definitely adding to the premiumization mix as well. Understood. can we assume that you're constrained by capacity as of now, and this 200,000 per month, which you are adding or this 2.4 million annually will entirely kind of potentially grow your portfolio by another 60%-70% in FY 2027, assuming that demand is robust? Sure. I would not say that capacity is a constraint at this point. We have enough capacities and this number of 200,000 is actually a very dynamic number. We are continuing to increase capacity. The plants have been set up in a way that the capacity for Pantnagar, for example, after two phases of development can go up to 600,000 pairs of sneakers per month and Haridwar can go up to 200,000 pairs. Which it already is currently operating at. We are targeting in totality a 800,000- 900,000 pair monthly production of sneakers, and we're well on track to do that. It's a phased development. I would not say we are short with respect to capacity at the moment. Understood. Thanks. The second question was around pricing and margins. Historically, have you taken such larger hike as you would have taken, I'm assuming a high single-digit hike could have happened. Does it lead to any temporary demand shock in terms of volumes? In that context, do you think 2027 you could kind of come to your aspirational margin band of 17%-19%, or would we push that milestone by a year to 2028 given the tough macro backdrop? I do not think we have seen such an inflationary pressure in any of the past years. As much as my memory can take me, with the kind of pressures that have come from a raw material standpoint as well as from a minimum wages standpoint, it's a very major increase that we have seen. We have tried our best to pass on this increase through an MRP increase through the entire portfolio. We are trying to balance between the increase in ASP versus ensuring that demand also sustains. We are in a very nascent stage right now. This price increase happened in the first week of April. We are just in the process. Of course, there would always be resistance when you take a reasonably strong price hike across your entire portfolio. We are trying to mitigate it through better supply with better product launches, as well as increasing our share of new product development that we do into the market. We are trying to balance the two, while we need to protect our margin, but at the same time, we do not want to lose our market share. We are trying to find the right solution. The inflation pressure is very high. Of course, that is the bottom line, and we see us trying to maintain our market share without compromising on margins. Understood. April, we were able to have a reasonably good start as well. April was also on a positive note. Understood. Any margin guidance you can share for FY 2027? No guidance unfortunately. We will definitely endeavor to stay within the range we've guided before, 17%-19%. Sure. Thank you so much, Nikhil, and all the best. Thank you. Thank you. Next question is from the line of Avinash from Motilal Oswal. Go ahead. Hi, sir. Good evening. Am I audible? Yes. My question is regarding the EBOs. Last year and the year before, we have seen a good number of consolidation and the store count has more or less been flat. How do we see this number going forward? Sure. Last year we did a correction. This was the year where we actually focused a lot on profitability. We shut down about 9- 10 odd stores, and we've opened about 13- 14 new stores. That has, of course, improved the P&L for this specific channel. Going forward, this year we will be back with respect to opening of new stores, and we expect to open anywhere between 60- 70 stores or about 80 stores, I would say. Got it. The book you think would be the CapEx for these stores and also for the facilities that you'll be incurring next year? CapEx for the stores, right? We only do CapEx for our COCO stores, wherein we can assume the mix to be 40/60, approximately, like 40 COCO and 60 FOFO. There would be some CapEx with respect to our 30-, 35- odd stores that will be opening. Sure. Thank you for that. No, I'm really asking for the company level CapEx, how should we see since that our Pantnagar facility has incurred a major CapEx last year. How should we see this number next year? Last year, since it was a acquisition of Pantnagar facility, so the CapEx was relatively higher. Apart from that, the CapEx would continue to be in the normal range, which is plant routine maintenance CapEx plus regular CapEx on mold, regular CapEx on EBO store additions and IT infra, et cetera. We'll go back to the normal range, and then over a period of next three years, we'll be incurring CapEx for expanding our Pantnagar facility, including addition of assembly lines. First, at this point in time, we'll try to optimize on the utilization of the upper facility at the first place in Pantnagar. We don't see FY 2026- like CapEx spends in FY 2027. Got it, sir. Thank you. That's it from my side. Thank you. Next question is from the line of Devanshu Bansal from Emkay Global. Please go ahead. Yes. Hi. Am I audible? Yes. Yes. Hi, Nikhil. Congratulations. Thanks for taking my question. Sir, we've recently concluded our annual distribution meet. I believe this is an important annual event for you. Checking if you can share some insights from the meet based on whatever you witnessed during the meet? Yeah. We had a very successful meet, concluded that last week. It was a two-day affair, and of course, all our top distributor partners and our franchisee partners and online partners were all present. We've received really encouraging set of orders. I will not be able to share the numbers around that, unfortunately, but this is something that is like a four-month forward number, which helps us predict our supply and demand. Of course, this meet was also focused around not just the orders, but also the new brand logo reveal, and a couple other surprises, which I will not be able to share at this point due to confidentiality reasons. In all, this meet has given us very good visibility with respect to the orders and with respect to demand forecasting that we need to do to plan our supply chain. Fair enough, Nikhil. I understand the competitive nature of the industry, but maybe in comparison to last year, whatever demand trends or obviously these all are qualitative things as well. If you could just compare over last few years, how was the environment and maybe compare that with the current year, that would also be helpful. Maybe if you could share some insights. On the order front, what I can say is that we had wanted to take our entire order booking till the month of September. Depending on the AOP alignments with our distributor partner, we were able to close that over 100%. The total alignment which was deployed to the partner network till September, after excluding April revenue, which was already recognized by that time, the balance number is what was committed and was aligned with the partners to come and place an order for, and they gave 100% of that number. Whatever the AOP alignments with our distributors has been concluded till September. Now the execution phase starts. The orders are in, right? Fair enough. That is really encouraging. Secondly, as a footwear industry, sir, we are entering an inflationary environment. I was checking if you could share some insights around possible impact on the demand front as well as key raw materials. I also sort of understand that this is a period where you can also sort of gain a good amount of share from the unorganized channels. If you could share some sort of insights around that. Well, we have seen inflation across categories, actually, in raw materials, because most of it is linked to crude in some way or the other. Major impacts we’re seeing is in EVA and PU pricing, right? Already, like I mentioned before, we have seen the peak of it, and as we speak, the prices have started to come down a little. Our latest purchase was at a slightly lower price, which is encouraging signs because the market is reacting to it. It’s a very dynamic environment at the moment, and we have factored in the peak raw material pricing within our cost and within our pricing that we have passed on. That way we should be covered. With respect to demand, it is something that we’re yet to see. As Uplaksh mentioned, we’ve seen a strong start to the quarter one, and of course, it could be difficult to predict as we go on, but we are fairly confident of maintaining market share and growing market share actually at this time, because the impact that we have passed on as a brand, I don’t think it’s very comfortable and easy for a lot of the other smaller players to pass on in the market. Therefore, we believe that we should gain as a brand in terms of market share. Any initial signs of consolidation, Nikhil, this last bit if you could address? There are signs of it. Because you’ll have to understand that not every brand will have the pricing power to pass it on and also at the same time absorb all the entire raw material cost. There have been signs in the industry with respect to slowing down of production that’s come to our knowledge. There are many companies that have slowed their production at this time. Thank you, Nikhil. That’s it from my end. Wishing the best to you again. Thank you. Thank you. Next question is from the line of Sameer Gupta from IIFL. Hi, good evening. Am I audible? Sorry to interrupt. Can you please unmute yourself, Sameer? Sure. Hello? Yes. Sameer? We can hear you. Am I audible? Yes, we can. Okay. Firstly, sir, on the ASP growth of 1.5% this quarter. There is a healthy growth in the D2C online and offline space, and typically here realizations are higher given no or low- trade margins. Unless the overall mix has been kind of unfavorable, what explains the low ASP growth this quarter? It’s primarily the GT charges impact. Last year in the online business, let’s say we were having an ASP of INR 100, but in this year or since 16th of June, the portals changed their accounting, wherein instead of billing at INR 100, we are billing them at INR 82. INR 18 towards freight is being billed directly by them, and hence to that extent, my revenue has come down and resulting into a lower ASP. This change happened with effect from 16th of June, which was not reflected in last year Q4, but is fully reflected in this year’s Q4. Got it, sir. This explains. Yeah. Second, sir, this is more of an industry question. There’s been a chatter around BIS rethink. Any indication you are hearing that there could be any relaxations on the BIS front or is it just a chatter with no substance? I think it’s just a chatter at the point. There’s nothing that we have heard of officially from the government yet. As a company, we are fully covered with respect to the compliance. As we speak, we’re left with hardly any stock of BIS. We’ll be fully compliant by 31st July. Sure, sir. That's all from me. All the best. Thank you. Thank you. Next question is from the line of Shanta [Kaparya] from [inaudible]. Hello, am I audible? Not very clear, Shanta. Hello, am I audible?. Go on, Shanta. Congratulations on this set of numbers. If we take a look, there is an increase in competition from the global as well as the local brands, especially in the affordable leisure segment. What does the management believe the Campus' strongest moat as of today? Would it be distribution, sizing, speed? I'm sorry, your voice is not very clear, Shanta. Can you wait? Yeah. Go to your handset, Shanta. I'm already on handset. Yeah. Shanta, you're not very clear. I'm sorry. Can you please repeat your question? Hello. Yeah. Can you repeat your question, Shanta? Yeah. Sorry, Shanta. Can you return back from your current location? Check your network, please. Okay. Okay. Thank you. Ladies and gentlemen, to ask a question, please press star and one on your key. We take the next question from the line of Hitesh [inaudible] from [inaudible]. Please go ahead. Thanks for the opportunity, sir. Sir, my first question is related to the PAT margin. During the quarter four, the company has reported the 9.6% PAT margin in comparison to quarter four 25.5%, and for the full year it is 8.4%. Particularly because in quarter four, we have reported the ASP of INR 668, which is lower than the full- year ASP of INR 683. What has actually occurred and what is the trigger point by which our PAT margin has increased during the quarter four? Can you please throw some light on the PAT margin, sir? The PAT margin growth is primarily driven by revenue and volume growth. If you are trying to link it purely with ASP, the ASP is a function of channel mix as well. Quarter three ASP or full- year ASP is higher because of quarter three. Quarter three ASP is higher because of higher saliency in online and quarter three being season right. When we enter quarter four the mix changes, which also includes more of school shoes and hence the ASP is slightly subdued. Having said that, lower ASP does not mean that lower material margin, right? In quarter four, we have shown decent growth in both volume and revenue, which has resulted into a better PAT margin. Is it particularly the quarter four episode or can it happen in another quarter also? Because you mentioned that the school shoes were sold during the quarter four. I think more contribution from the school shoes segment. Is it like that or the quarter four is a one time during the full year? School shoes is highest in quarter four and then again there is school shoes somewhere around September, October, which can fall either in quarter two or quarter three. Right? Which will result in slightly lower ASPs. That's it. That does not mean it will result in a lower margin. Okay, sir. Sir, I go through the presentation. Our outsourced versus the in-house ratio is still in favor of the outsourcing. Sir, is it our well-thought policy or will it be changed gradually by having capacity? By increasing that capacity, can we improve the quality and overall margin for the company? Okay. It will definitely improve over a period of time, but it will show a very gradual change in the mix of in-house because the upper is still we have a very good number of outsourced partners who make upper for us. Exclusively. Exclusively. That will continue to be there. What will happen or what will change with the investment in newer capacity is that the sneaker volume, which has a high demand and requires investment in machinery, which we have done and not our outsourced partners. The sneaker volume will continue to be in-house. That will help us to improve the mix to serve our consumers in the category where the demand is and will result in a higher ASP as well. Basically, you can foresee this as that the future growth will be met from our in-house facilities by and large, and that will result in a gradual shift in this saliency of in-house versus outsourced mix. Any outsourced party is related party or all are the third party? All are fragmented, very small. We have approximately 100- odd job workers which work exclusively for us. Okay. My last question related to D2C channel. See, it is mentioned in the presentation that during the quarter D2C channels has contributed around 48.3% say 44.8% on a YoY basis. Which vendors are falling under the D2C category and how this margin profile? By D2C we mean both D2C online, which is th e portals, primarily Flipkart, Myntra, Amazon, Snapdeal, et cetera, and D2C offline. By D2C offline, we mean the D2C is direct to consumer. D2C offline means all our EBOs, franchisee partners, and large format stores like DMart, V-Mart, Lifestyle, Reliance Footprint. All this where we reach directly to consumer instead of reaching through intermediaries. That is D2C. How it affects your margin, sir, margin profile? We work on a certain margin threshold that remains the principle or criteria for us selling a product, barring the EBO channel or exclusive stores, where it is more about reaching out to consumers or reaching out in the new markets, and the gestation period for such stores is slightly higher versus any other D2C online channel. Can I assume? May I request you to join back the queue, please? Okay. That's fine. Thank you, sir. Thank you. We'll take the next question from the line of Gaurav Jogani from JM Financial. Please go ahead. Thank you for taking my question again, sir. My question is with regards to, again, the competitive intensity. Given the fact that you are now able to produce sneakers, and also many of your competitors are facing issues in terms of production or getting footwear from outside India due to raw materials and many other reasons. How that has helped you over the last one year in terms of market share gains? If you can highlight some of the scenarios where it has played out. We think, Gaurav, that while we haven't done honestly a detailed study on market share post the IPO, we do track the industry growth rate. We don't think the industry has grown last year beyond 7%-8%, at most. Us growing at about 12%, we think we've definitely gained market share. There is some bit of consolidation that has happened in the market, both with respect to sports and sneaker range. Definitely given the current situation, we have a good opportunity on hand to further increase our market share in the market. Nikhil, just one last bit from my end is in terms of the logo now. Given that we have a completely new logo, has there been any issues that you would have faced because people would associate brand Campus with the older logo? How do you communicate the newer logo for this? Because of this, have you faced any disruptions in the internals? It's a very valid question, Gaurav. We actually did a soft launch of this logo in October, November last year, where the new products that were being launched in the market were all with the new logo, starting October 2025. That was a soft launch. We didn't announce it at that point. The numbers basically tell the story, right? Like R&D, we've had great results and even quarter four. That is clearly reflecting that all our NPDs that have been launched with the new logo have been very well received in the market. Therefore, that gives us confidence that the logo is very well accepted. Thank you, Nikhil, for answering the question. Thank you. Thank you. Before we take the next question, I would like to remind participants to ask a question, please press star and one on your phone. Next question is from the line of Manasi Joshi from SMIFS. Please go ahead. Hi. Congrats for such a strong performance. There are two questions from my side. Campus has built strong reach in North India, while South and West regions still contribute relatively lower sales. What are the key consumer behavior differences in this market? Are you making any changes for being made to product assortment or planning to improve the penetration across this region? The second one is, given the competition from global as well as local brands, the competition is increasing in affordable SN segment. What are the Campus' strong moats today? Is it distribution reach or pricing or any local trend responsiveness? What makes it different from the other global and local brands? Hi, Uplaksh on this side. On the first question, you asked about us being a North-heavy business. Actually, that's slightly an older philosophy. I think we have been able to extract and reach a lot more markets. Just to give context, currently our second largest state is Maharashtra, which wasn't so five years back from a channel trade point of view. There has been significant increase in a lot of states, including Maharashtra, Gujarat, MP, West Bengal, a lot of other states, including South. We have done a reasonably strong job in AP Telangana, and we are focusing on other states as we speak. There is a product differentiation from a market requirement. Some markets are slightly more open heavy, some markets are slightly more shoes heavy, some markets are slightly more sneaker heavy. We try to customize our offering looking at the requirements of the particular channel as well as the geography. The requirements of an online business will be slightly different. The consumer profile will be a bit different, and the general trade consumer will be slightly different. The consumer cohort is different, the geography cohort are different. Since we have a very wide assortment, we are able to customize our offering depending on the requirements of this particular market. Our team does regular visits to find out what exactly is the need. We do competition benchmarking. We do online benchmarking to understand what's happening in the market, and we build that into our product development cycle. Right. We are not really a north-heavy company. Amongst our top five cities, there is Pune and Bangalore in our online business as well. Number 2 generating state is Maharashtra today. We are pretty much a very strong pan-India story and not really a regional story, and that's one of the reasons for our scale as well. On the second piece, when you mentioned there is competition from multiple sides, local players incoming. The moat of our Campus is a multifold moat. We have a completely vertical and horizontally integrated supply chain vertical. We have the strongest distribution network. We have a very strong back-end R&D engineering, and we have a legacy and a brand identity and customer loyalty of over 20 years. All these add up to where our brand moat is, and I do not see it's very easy for anyone to want to replicate it. Of course, there would be competition, and that is part of our business. All these moats are very difficult, if not impossible, to replicate in today's environment. We believe that we have a right to win in the market, and we'll continue doing so. Okay. Thank you. Just to contextualize a little bit in numbers. We did just a very small check at our end with respect to anybody trying to replicate our supply chain would need maybe close to around INR 2,000 crore today to replicate the same level of supply chain that we have with respect to land, building, the plant and machinery that we've set up over the years. It's not just the investment part of it is much more than that to be able to grow together with the entire vendor base, to take them along with you, your partners, your channel partners. It's a very fairly complex ecosystem that has been created with a lot of rigor and brand, of course, investment as well over the years, which is something that we don't think is very easy to replicate by anybody else very easily. Okay. Thank you very much. Thank you. We'll take our next question from the line of Tejas Shah from Avendus Spark Institutional Equities. Please go ahead. Hi. Thanks for the opportunity. Three questions. First, this quarter was a very complicated quarter from the sense to gauge consumption demand sentiment because a lot of development happened at the far end of the quarter. Just from your assessment or the way you are looking at data, would you say there was a perception or there is rather a perception shift in demand momentum which should sustain in FY 2027, or you believe that the whole event that has played out or unfolded in the last 60- odd days kind of disturbed the momentum which was created? No, you're right. It's been a very dynamic market at this point, but more so from a supply point of view, I would say. Like I mentioned, we've seen the peak of it with respect to availability of raw material and the pricing around it. Now going forward, we see stability and some raw material has started to correct already. On the demand side as well, yes, till March, we've not seen really much of an impact. There was some impact in the month of March, but not very significant. Going forward, of course, if the war sustains, then it's anybody's guess, to be very honest. Nobody will be able to commit any kind of numbers with this kind of scenario prolonging for a very long time. If it sort of settles at this point, we see a good recovery in place, and the market should recover also fairly soon. Second, on our better performance in online versus the other channels, was there any concentrated effort which actually played out or kind of resulted in good performance you are facing this year in the channel? That's one. Second, based on the data, because online is a very reflexive channel on that front, do you believe that we would have gained market share or the channel itself did very well for the category at large? I think the growth of marketplace is a growth that has been happening for some time for us. This is a journey we've been on for the last three years, where we have been building our own capabilities of running a marketplace operation. Over the last 12-18 months, we've also started leveraging the infrastructure of Flipkart, Amazon, and Myntra as well through the FBA, FBS, and LGAT models through which we supply through their warehouse infrastructure to be closer to the consumer, of course. Last quarter, of course, the big call-outs for the quarter would, of course, be our long-term partnership with Amazon and the growth potential that we're seeing there. It's been a story that has been playing out for over 18 months now, and we see it continuing into the long-term future as well. Our brand.com is a very successful story. Only launched about three years back. It will be among the top four marketplace platforms if I compare it as an individual marketplace as well, as well as Snapdeal, which is also been a very strong turnaround story for us. While Myntra and Flipkart continue to be very big players for us, we've also been able to scale up the other partners and bring them to a certain threshold. We don't see marketplace growth to be slowing down anytime soon. Of course, it's a tough space because it's extremely competitive, extremely expensive, extremely complicated, looking at the way this business is done overall, looking at the complication of returns, logistics, marketing, other factors, as well as the alignments with the larger space. We have been signing off JBPs and JMPs with all these big players so that we have a long-term alignment and visibility with them, and we are able to focus on long-term growth creation with these partners. Marketplace operation is extremely positive. Only Flipkart is the only partner we work with from an outright business point of view. All other businesses for us on the online side are pure marketplaces. Last one on brand logo change. Usually such an established brand when it goes for a renewal on the logo side, at least for the initial period, it needs a lot of branding and marketing support for it to create that recall. Should we expect some heightened branding spend this year or will it be part of the par for course in terms of what we'll spend on this? It will be part of the regular spend only, but more focused on the brand building side rather than performance marketing. That is something that we endeavor to do this year, is focus more on the brand building side. Got it, sir. Thanks a lot. Thank you. Ladies and gentlemen, that was the last question for today's call. On behalf of Campus Activewear Limited, that concludes this conference. Thank you for joining us. In case of any further queries, please reach out to Campus Activewear's investor relations team at ird@campusshoes.com. You may now disconnect your lines.