Ladies and gentlemen, a very good evening, and welcome to Eternal Limited's Q4 FY 2026 earnings conference call. From Eternal's Management team, we have with us today Akshant Goyal, Albinder Singh Dhindsa, and Kunal Swarup. Before we begin, a few quick announcements for the attendees. Anything said on this call which reflects outlook for the future or which could be construed as a forward-looking statement may involve risks and uncertainties. Such statements or comments are not guarantees of future performance, and actual results may differ from those statements. Additionally, please note that this earnings call is scheduled for a duration of 45 minutes, and we will be starting directly with the Q&A section of the call. If you wish to ask a question, please use the Raise Hand feature available on your Zoom dashboard. We will announce your name on the call and unmute your line, post which you can proceed with your question. We will wait for a minute while the question queue assembles. The first question is from the line of Gaurav Malhotra from Axis. Please go ahead. Yeah, hi. Thank you for the opportunity. I had three questions. First question is on the overall EBITDA guidance or indication of, say, $1 billion by FY 2029. Now, we do know that, you know, food is sort of at a steady clip, and it is also growing at that 19%, 20%. You know, we do know about District, you know, EBITDA guidance of FY 2030. If I just take, sort of strip it back, right? Essentially, and we know what is the NOV growth of a CAGR of 60% for Quick Commerce. The implied margin for Quick Commerce comes to around, say, roughly 3%, 3.5%, give or take. Is that the number which we are expecting from a margin perspective in the, say, next three, four years? Hi, Gaurav. Yeah, broadly, I think, broadly the math is fine. We're not giving any specific guidance, therefore it could, the numbers could move a little bit depending on how things pan out. Yeah, broadly, the way you did the math is broadly in line with how we're thinking about it. Okay. Thank you. Just two quick more questions. You know, we see that your fixed cost in Quick Commerce has been sort of flattish this quarter, and yet the MTU numbers have been quite strong. Just wanted to get a sense as to, you know, how to sort of reconcile these two numbers. The second question is just on the dark stores. You know, I remember you had mentioned that maybe you'll pick up the additions in this quarter, but sort of flattish again. Just wanted to get a sense on the dark store guidance of 3,000 by March. These are the only two questions. Gaurav, I think the fixed costs, I mean, like, the MTU addition remains strong because we continue to spend on marketing for new customer acquisition. I think those spends haven't come down in the last quarter and hence the overall fixed cost remains in line with the previous quarter, and the MTU addition also remains strong. Right? We are seeing, I think, a lot of our competitors in the market we feel have pulled back on this, so we are seeing extremely low cost of customer acquisition and we continue to see therefore value in keeping the marketing spends high at this point. On the store addition, I think we are on track on our guidance for March for 3,000 stores. I think we remain firmly on track. Beyond that, like, I don't think beyond that, we're going to give any guidance, or at least at this point we don't think it makes sense. I think we've given overall guidance of 60% CAGR and that would obviously mean some reasonable store expansion. We're not planning to give out any specific number guidance on that. Just a follow-up. Essentially, if 3,000 store happens, that means, the general growth for FY 2027 will not be 100% as you had indicated earlier. It'll be, say, in the 70%-80% range, right? Is the understanding correct? Yeah, it'll not be 100%. We are not guiding to a specific number yet. I think we need that flexibility in the medium term and short term to respond to how the market dynamics are. And hence, w e know that, you know, Street is looking for some guidance. What we have done here is actually given a more longer term 3-year guidance. And I think short term we will respond to the market situation, and if there are opportunities for acceleration, we'll do that. Right? So we're not closing the door on any options for us now in the next 12 months. Thank you so much. Thank you. Next question is from the line of Manish Adukia from Goldman Sachs. Please go ahead. Thank you. Hi, good afternoon. Thank you for taking my questions. My first question is actually a follow-on from Gaurav's previous question. Akshant, like Gaurav asked, the 100% guidance now does not hold true for FY 2027, given what you saw in the market in terms of competition, et cetera. Now when you give your medium-term guidance of 60% CAGR, what margin of safety or room for error are you building in that guidance? I mean, if competition were to remain as is or were to get slightly worse from here, what are the range of outcomes for that 60% CAGR? The reason I'm asking is that because from a near-term perspective, you could maybe help us understand the building blocks as to where you could see the next three-year growth end up to get to that 60%. That may help us, you know, just to build that number a little bit more conviction. That's my first question. Yeah. Hi, Manish. I think we've addressed that in question three of the letter. I think we've sort of tried to give you the building blocks of what the 60% CAGR guidance sort of is based upon. It's a function of assortment expansion, geographical expansion, as well as more, you know, demand densification in our cities of presence today and we might also get into newer cities, right? You know, we think three year out, you know, any sort of like increase or intensifying of competitive activity, I don't think we don't think it's gonna last beyond the three-year period that we have mentioned. We feel fairly comfortable and confident that over a period of three years we should be able to deliver this CAGR of growth. Sure. Thank you, Akshant, for that. Maybe where I was coming from also was the building blocks in terms of, and I know you don't wanna give, like, a 3-year store guidance, but if you were to think about user growth versus frequency versus average order value, if you can maybe give us a pecking order of what drives the most amount of growth first, followed by the second, followed by the third, that would also be helpful. Yeah, we can't project with that accuracy at this point, unfortunately, yeah. We are also learning as we build in this market, right? These things might change, so we don't want to put out numbers here which we then have to defend in the next call. Right. Maybe just last question on that topic. From a user number perspective, given that there is a fair bit of competition and there are, like, a few well-capitalized players in the market, and given how the market already is today, you don't see a concern in terms of MTU or user penetration reaching closer to saturation levels in the foreseeable future? No, we don't. Very clear. Thank you. Second question on the June quarter, where you're saying a meaningful expectation of acceleration in quarter-on-quarter growth, outside of the reversal of average order value and the fewer days that you had in the March quarter, are there any other drivers that we need to be aware of, whether it's greater store add or anything else, or it's just these two factors of AOV and fewer days? The only other factor will be seasonality, right? It's a different season, so we see different consumption patterns and summer drives growth in certain categories. Overall, that'll also lead to slightly higher growth other than the two you mentioned. Very clear. Thank you. Those are the questions that I had for now. I'll jump back in the queue. Thank you. Thank you. Next question is from the line of Aditya Soman from CLSA. Please go ahead. Hi, good evening. Two questions. Firstly, when we look at the contribution per order in the quarter, we've seen a slight dip. This is largely a function of AOV or which obviously falls seasonally or anything more to read in the sort of drop in contribution per order? Then the second question on the food side, we've seen Swiggy sort of roll out Instamart quite aggressively, which is obviously a different model with a different sort of price structure. Any plans for Eternal to do the same or what do you think of Bistro as being that option for affordability on the Food Delivery side? If Bistro is the option, then any sort of updates on how that business is doing? On contribution, Aditya, I think there are multiple things that change sequentially quarter-on-quarter. Yeah. You mentioned AOV, that is one, right? We're not saying that was the key driver, but there are other things also which keep changing. Last mile delivery is also seasonal in some ways. Availability changes with, or the supply of delivery partner changes during different months in the year. Some of the other things like supply chain costs, et cetera, there could be efficiencies that we are banking in. Net-net, I think the movement is what you see in contribution. Overall that doesn't change the trajectory of our business. More longer term, I don't think there's anything to call out here. Understood. In other words, as the AOV goes up and some of the seasonality changes, your contribution direction should be upwards. Yes. At least, for now, right? As we move to 5%, 6% margin here that we are saying we will get to at some point, contribution margin will go up, right? On a year-on-year basis, we'll see that trend consistent, yeah. If you were to help with that, I mean, you said that in NCR you're doing 5%-6% margin, which would imply, like, the contribution there is 8%-9%. Would that be the right assumption or even higher? We are not just sharing that data point. I don't think it matters also, but yeah, broadly it'll be somewhere in that range. Understood. Then maybe on Bistro and Instamart. I think so we, I mean, at this point we don't have any plans to do what Swiggy is doing with Instamart. We're not clear on what problem it solves for consumers or for restaurants, right? Till the time we don't get that clarity, I think we'll just stay put on our focus areas, which is Zomato, and I think Bistro is still a small experiment for us. We're seeing early signs of a business model evolving there, but still very small and early. I won't want to showcase Bistro as a big bet at this point. I think we are watching the space and we are seeing what competition is doing, and if at any point we see a thesis there that makes sense, that unlocks a new market, we'll follow suit. Very clear. Thanks, Akshant Goyal. Yeah. Thank you. Thank you. Next question is from the line of Ankur Rudra from JPMorgan. Please go ahead. Hey, thank you. Thank you for the targets on growth and profitability this time. Firstly, in terms of, you know, the 60% growth guidance, and thank you for the color in terms of the building blocks. In the more near term, are you seeing any signs of competitive activity or early signs of competitive activity easing, which gives you any kind of visibility of this, you know, starting to play out from the next couple of quarters? Hey, Ankur. Albinder here. Competitive activity hasn't meaningfully changed from when the last time we were on a call. I think our stance about it is also the same, that we will sort of keep an eye out for it, but do the right things for the business. To the extent, you know, we've mostly delivered on what we thought we would be able to accomplish in face of whatever the competition's going on and whatever guidance you're giving, we're not really changing our outlook on that either. Super helpful. You know, you've given a three-year guide this time. If I look at the last two to three years, there's been a significant amount of linearity between store additions and growth. Is there anything to suggest that that will change over the next three years? I mean, it's not a straightforward comparison. I think, we are still, in some parts the network is still in a store build-out phase. In some other, we just have to create supply in different ways to service customers when we are expanding assortment. Our job is to make sure that the supply is there, whether it's in, you know, smaller stores, bigger stores. I think that number becomes very complicated if you start doing the math that way, so it's hard to quantify it in that simplistic way. Appreciate the color. Just finally, in terms of profitability for Blinkit, you know, approximately 3% is what you've said it seems broadly fine. What are the biggest unlocks for you, either in terms of cost or monetization to get there on a 3-year basis? I think so far we are not really assuming any further unlocks, which would really do it. I think if we just keep doing our job and executing, the way we are doing, we should be able to get there. Okay. Appreciate it. Thank you. Thank you. Next question is from the line of Abhisek Banerjee from ICICI Securities. Please go ahead. Hey. Hi. Congrats on a great set of numbers. First one on the growth in Quick Commerce, you seem to be still growing ahead of the market. Do you think that, you know, when you say about 60% NOV growth going ahead, are you actually happy to grow in line with the market in the future? Why is that? I have another question, which is slightly backward-looking. Now that you have, you know, you have achieved profitability rather steadily, what do you think is the most non-negotiable KPI that you have to crack in order to get to profitability in QC? Is it orders per day per store or is it your NOV number? Abhisek, I think to your first question, right? I think we are in a fairly competitive market with a lot of different players. In that market, it is hard to figure out, you know, what is the actual market growth rate, apart from the two public players who actually have to share their numbers. It's very hard to be able to say that, you know, this is where the market is growing at. Is it a healthy growth rate? Or it's an unhealthy growth rate. I think we are more concerned with whether our quality of growth is maintained as we grow. I think that's our biggest, the only thing that we worry about. I think going forward also, I think quality growth, which actually meaningfully also takes the business towards profitability and sustainability, I think that is the only non-negotiable here. I mean, there are multiple ways to get there, but I think that's the only non-negotiable. Got it. Thanks. Thank you. Next question is from the line of Swapnil Potdukhe from JM Financial. Please go ahead. Hi. Thanks for the opportunity. My first question is with respect to your warehousing capacity. You talked about 17 million sq ft of warehousing capacity spread across dark stores and supply chain, other hubs, et cetera. Can you give a sense as to what was the number a quarter back or a year back? The reason I'm asking is it will help us understand what kind of an uplift you can get from by just utilizing the capacity or even if there's additions to those ongoing rate. Yeah. Thanks. Swapnil, we don't disclose that. Yeah. You won't find it in our letter, it's not a miss. Okay. Got it. Got it. The other number I was tracking was your orders per day per store. I mean, that number has been broadly flat for a long period of time. Any sense as to when we can see some uplift in that number? Because, I mean, presumably that is where you'll get a decent bit of operating leverage. See, Swapnil, as Albinder mentioned, I think like the contours of this, the business might keep on changing, right? We are not hung up on, like, certain metrics going in a certain way for the business to work, right? I think, you know, there could be arguments to be made on why that number. I mean, for that number to not go up and still the business might deliver 5%, 6% margin, right? That's also possible. We are not therefore constraining ourselves into a certain way of thinking about the business. I'm not saying that this metric will not go up, but I'm saying that t he reason we are not providing a guidance for this metric and how this will end up, and instead we're giving a guidance of the overall growth of the business, is because these variables and the building blocks of how we look at the business might evolve as we go along, right? It's a good number to track, that's why we disclose it. You know, we are not sure of, like, how this will trend, and therefore we don't wanna give a guidance on it, right? Got it. This one metric, another metric that I track is, like, customer retention, the number of orders that every customer gives you. That number seems to have come down off for the last couple of quarters. It used to be around 3.6, now it is around to 3.3. Is that to do with some retention getting impacted because of high competitive intensity? Or is it a function of a significant addition in new customers and their ordering frequencies being lower? Yeah. It's largely the latter, Swapnil. I think we haven't seen much impact on customer retention, despite us being sort of more, I mean, more, like, more expensive for customers in certain geographies. I think most of this is on account of the acceleration in new customer addition that we have seen in the last couple of quarters. Got it. Just on your Food Delivery commentary. You did say that you have been offering a lower MOVs of around INR 99 to make food more affordable. But at the same time you have been consistently increasing your platform fees, you know, those kind of things. How does that tie up? I mean, like, you know, right, if you were to make it affordable, you should not be increasing platform fees. Yeah. I think what we mean by that is that, see, the platform fee is applicable to all customers, but the offers or discounts can be targeted to a certain cohort of customers who are more price-sensitive, right? Or in certain locations and geographies where these subsidies actually deliver growth, right? That doesn't work for all customers or all geographies. I think what we're trying to do essentially is increase the overall revenue per order by increasing the platform fee, and then channel that revenue to select cohort of customers in select geographies where we are seeing growth. Okay. Just the last one quickly on the District also. I mean, there have been constant media reports that there are some events getting canceled because of inability of certain artists not coming to India because of the war. Any sense as to, like, will the business still continue to deliver strong numbers despite all this macro challenges from that business? Yeah. I don't think this will impact the overall broad growth part of the business. Events is just a part of the business, and we have multiple categories now. I don't think few concerts getting delayed or postponed or even canceled will impact the outlook on the business. Perfect. Thanks a lot for taking my question. All the best, guys. Thank you. Thank you. Next question is from the line of Ashwin Mehta from Ambit. Please go ahead. Yeah. Hi. Can you hear me all right? Yeah, Ashwin, hi. Go ahead. Yeah. Hi. Thanks for the opportunity. One question. If I look at your consolidated financials, your advertising promotion cost in absolute terms was flat sequentially. Any sense that you can give in terms of what proportion of this goes to Blinkit? The follow-up to that is, philosophically, how are you thinking in terms of reacting to competition? News flow seems to suggest that one of your competition seems to be growing much faster, sequentially at least. Are you okay to let go of some market share near term and still focus on profitability? Or you will possibly react to some of them given the guidance of 60% plus growth? Hi, Ashwin Mehta. This is Kunal Swarup here. To your first question, look, consolidated ad promotions includes multiple things across our multiple businesses, right? There is promotional spend. Let's say on the Food Delivery side, like Akshant said, we channelize some of our incremental revenue per order, you know, to a certain cohort of value-conscious customers that would sit there. There are, you know, obviously customer acquisition spends for our Quick Commerce business, marketing spends for Food Delivery. It's, you know, I think each business has its own nuances and dynamics. I don't think we can, you know, strip that apart and get into each of those. I think broadly the commentary we've given for each business kind of reflects our strategy for each business there. And- Yeah. I'll answer the question on growth, Ashwin. See, I think to the best of our knowledge, we are growing as fast as we can in the market, adhering to the principle that the growth actually has to be meaningful and it has to be healthy for the business, both in the short term and in the long term. Of course, you can always make the argument that, you know, we can grow a lot faster by opting for unhealthy growth right now. We just don't think that that is the right thing to do, and that that growth will eventually turn into, you know, healthy growth just by magic. As far as we know, you know, this is the fastest that we've been able to grow this quarter, you know, in a way which still adheres to our core principles. Sure. Thanks, Albinder, and all the best. Thanks. Thank you. Next question is from the line of Jignanshu Gor from Bernstein. Please go ahead. Hi, thank you for the opportunity. I have two questions. One is, as a large part of our growth narrative from here on depends in some sense on either growing the non-,sort of, grocery assortment and going deeper into outside of the metro cities. Two questions related to these. One, is there possible to give some quantitative understanding of how some of the non-metro cities are doing in terms of size of business per store? I understand the profitability margin metric which was in the letter, but in terms of size, either revenue or order per day, what kind of ratio can we expect in metro versus versus Tier 1 or a Tier 2 town? I think that's question 1. Let me ask the second one so that if there is any interdependence. The second is we see that inventory days seem to have gone up over the last few quarters after the transition as well, right, to 1P? What would be the driver for this and where would we feel comfortable, not from a working capital deployment, but just from a risk perspective? What would be comforting for us? Jignanshu Gor, we don't, we don't disclose the breakup intentionally for whatever our business is in the larger cities versus emerging cities. On the second part, I think before we give more color, I don't think it is related, the inventory days are not related to in any ways to the split that we have between Tier 1 and T ier 2 or Tier 3 cities. Jignanshu, just on that inventory build, when you say last few quarters, of course we're aware that last few quarters from Q2, Q3 especially, we saw the shift to 1P, right? The share of 1P also increased, during that time. Q3 to Q4, there hasn't been any meaningful increase apart from the increase expected because of the growth and the scale of the business, right? That doesn't change the inventory days anyways. I think inventory days are fairly steady. We're not seeing that increase unlike what you're suggesting. Okay, cool. Just then maybe a follow-up, just one small point. On the, if we look at the standalone business, my understanding is that includes, and specifically looking at ad spends, it includes basically Food Delivery plus District ad spends. Is that the right assumption? It's not the entire District, but a part of the going out business, largely the dining out business. Yeah. Okay. Even for dining out, it's a small part. That's right. Okay. Our businesses are spread across multiple entities, so generally speaking, I think it's hard to reconcile our MIS that we the way we report it to our audit financials you know, unless you have more data. Got it. I was trying to reconcile your statement that you're seeing a low CAC on the Quick Commerce business and hence, trying to reconcile that with the MTU addition. Yes, that's correct. I think for the same marketing dollars, we are seeing more new customer addition. Right. That's how, that's what I meant when I said the CAC for us is reducing. Yes. All right. Great. Thank you. Thank you. Next question is from the line of Gaurav Rateria from Morgan Stanley. Please go ahead. Yeah, hi. Congratulations on good performance on profitability in Quick Commerce. I have two questions. My first question is on your comments around competition, which probably hasn't changed much in the last couple of months, and still you expect a 60% plus CAGR in the Quick Commerce business. Is it that you're not changing your stance and you still expect this healthy growth to continue at 60%? At what point in time, you know, you need to kind of relook at the stance on your certain thresholds of MOV or other things? What is the North Star metric that you focus on, whether it is MTU addition or number of order growth, NOV growth, et cetera, or market share, to be able to understand that at what point in time you need to change your stance to react to the competition? I think we keep reacting according to what we feel is right and it all depends on micro markets. Our stance is more around the principles that we have around building a healthy business and, you know, there are places where our MOV is also lower. There are places where we also offer free delivery. I think these are not uni-dimensional calls for us, and we keep taking them. Largely, Gaurav, I think we look at, you know, customer retention and customer frequency on our own business, right? I think as long as we don't see that being impacted in a meaningful way by what everyone else is doing, I think then, you know, the choice to stick to the principles Albinder mentioned is still there, right? We haven't, you know, over the last few months, seen our customers turn away from our platform too much, right? Hence, I think at this point we don't see the need to react more than what we've already done. Got it. My second question is on your Tier top 8 cities. You did give a very good data point on geographic coverage of 80%, 90% coverage in pin codes. Does it mean that now from here on, incrementally growth will be less led by the customer addition in these top eight cities and more by the wallet share and the average spend per customers and hence the growth rates, when we look at the MTU addition, it is gonna be largely driven by the non-top eight cities? Thank you. Partly true, but I think even in these cities where we have high pin code coverage, it doesn't mean that we have like maxed out on potential customers in that neighborhood, right? While assortment expansion will drive higher wallet share for existing customers, I think equally or maybe even larger portion of growth will continue to be customer addition given the low penetration that we have within the pin codes that we cover. Thank you. All the best. Thank you. Thank you. Next question is from the line of Garima Mishra from Kotak. Please go ahead. Yeah, thanks for the opportunity. First question on Blinkit. How should we think about the discounting which is prevalent in the Quick Commerce market today, and how confident are you of maintaining your pricing discipline as well as the 60% growth CAGR in the business? Garima, we are very confident of maintaining our pricing discipline. We're not sure what competition will do. It is very hard to estimate what is happening in the market, frankly. How much of the market is fraud, how much of it is artificially inflated by discounts, it's very hard to actually tell. Very hard to comment on that. You remain confident in that you are already retaining that customer who you think is the more profitable customer and sort of sits well within what Blinkit stands for. Is that the right understanding? Yes. Got it. Second question was on District. You are already present in different verticals pertaining to the broad going out category. What new categories are you looking to add within District and particularly within travel? Garima, I think we've no plans to add any more category to District than we already have. I don't think travel is a focus area for us at this point. Got it. Last question maybe, Hyperpure reported a small margin in the quarter. You have, however, not included this segment when you talk about your future profitability. How should we read this, and should we assume that this business remains insignificant from an overall, you know, profitability perspective? Not really. I think, I don't know why you are saying that we haven't included this business when we're talking of. I mean, the overall a billion-dollar profit statement that we have made includes all the businesses that we are into today, including Hyperpure. It will of course, it might be the smallest, but it'll still be meaningful and relevant. Got it. Thank you so much. Thank you. Next question is from the line of Rishi Jhunjhunwala from IIFL. Please go ahead. Yes. Thank you. A couple of questions. Firstly, see, if we look at our, you know, order growth in Food Delivery as well as in QC. In food, order growth was 15% YOY, the active delivery partners on a monthly basis went up by 30%. In QC also, the order growth was slightly above 90%, the rider growth was 120%. While in QC I can still understand that you're expanding rapidly and probably, you know, adding a lot more there. In food, you know, what explains this gap given that, you know, effectively if I calculate in number of orders per rider per month, it has come down by 10%-15% in both the businesses over the last one year. Rishi, the nuance over here is the changing nature of how much people work every day on these platforms. We are seeing more and more part-timers also delivering, and that actually increases the active partners, but reduces the number of orders they do per shift per day. Understood. The second question is on Food Delivery, right? We are close to that 20% mark from a growth perspective. We are at 5.5% from a margin perspective. We had taken a mid-quarter hike in platform fee, probably, you know, next quarter it flows down completely to the bottom line. How do we, you know, think about, you know, incremental operating leverage that you would get in the business as well as some of these increase in monetization to flow through the Food Delivery P&L? Do you intend to utilize that incrementally in some sort to increase growth? If yes, how? Otherwise, do you believe there is actually there could potentially be upside risk to that, you know, NOV margin guidance that you have provided in the past? Rishi, I think this is, I mean, this has always been the case that we are more leaning towards growth, right? If we can find ways of effectively reinvesting any incremental margins that we get in our business, any business, right? I think we would do that. You know, because the objective is to optimize for growth of absolute profit and not the profit margin percentage, right? That, that's always been the principle and it'll remain that way. I think what we are seeing now in the last two, three quarters, especially in the Food Delivery business, is a good ROI on these investments for growth, right? That, and that's a function of like also like us innovating on how we look at these investments, right? What and how we implement. It comes down to execution also, and it's also a function of like market readiness, consumer readiness, and so on. At this point, therefore, we are seeing that if we reinvest in growth, we are getting outcomes and that growth quality is good. We'll continue doing that without worrying about what it does to the margin. I think net-net, this should ensure that our absolute profit continue to grow at the fastest pace possible for Food Delivery business, right? In future, again, applying the same principle, if that stops happening, right, we could see some of this incremental revenue flowing down to profitability, and that's also fine, right? I think that's the sort of framework that we follow and outcome could be either percentage margin increasing or growth going up. Both of them will actually optimize for the absolute dollar EBITDA. Understood. Thank you so much. All the best. Thank you. Thank you. Ladies and gentlemen, in the interest of time, we will now take the last 1-2 participants. The next question is from the line of Vijit Jain from Citigroup. Please go ahead. Thank you for the opportunity. My first question is, you know, within that guidance of 60% plus CAGR on Quick Commerce, you know, the top 20 cities that you call out, would they still be, you know, above 40% within that? Any kind of, you know, broad assessment of what that embeds for top 20 cities that you could give would be helpful. That's my first question. My second question is, within QC in terms of the ad monetization, I just want to get a handle on, in terms of the monetization, is it mostly driven by the SKUs that you stock and that you're able to surface to the customers or the ad loads at checkout and top of the funnel ads are meaningful? That's the second thing I wanted to ask. Third, if you could give more color on where how you think about the whole supply chain automation. You talked about it, I think, in 3Q, and I just wanted to get a sense of, are we looking in the next 2- 3 years at more of these automation CapEx for your business? Any sort of guide you can give on how you're thinking about CapEx beyond the store additions that you would do. Those are my three questions. Thank you. Vijit, the first one, we don't give that breakup. I think we won't be able to give you that color. I didn't really understand the second question. I think if you're asking. I just wanted to understand the ads business, right? The ad monetization that you achieve. My guess would be the biggest chunk of that is, you know, the brands themselves advertising on you for stock that you actually hold on the platform. Yeah. There will also be ads, related to, you know, that you show on checkout or ads, which are more, you know, like the brand page that you have. I wanted to get a sense of, you know, what the composition of your ad revenue looks like between these two, three different kinds of categories. you know, non-paid ads, basically ads by brands or platforms which don't sell on the Blinkit platform. That's insignificant for us. Got it. Perfect. The last question was on, you know, CapEx and, how much of, you know, what CapEx you plan to do over the next two, three years is, related to, you know, automation that you might do. I think. I'm just trying to get a sense of whether automation, you know, all the automation that I think, you guys have shown in some videos as well, how much of that is scalable and is that something that you're planning to do across all of your warehouses and so on and so forth? Yeah. Vijit, we keep testing for that. I think, like, we don't want to just pursue automation for the sake of it. I think. The framework is that the CapEx should have ROCE that we can track and that is visible. That's the fundamental principle. Directionally, yes, I think what we are seeing is that more and more, directionally, we are seeing the automation increasing in both our warehouses, in all our warehouses. We will see that happening over the next few years as well. How much of it is automated is a function of, again, the framework on ROCE. It's all the function of the cost and the efficiency uplift we get because of automation. Okay. Thank you. Those are all my questions. Thank you so much. Thank you. Thank you. Last question is from the line of Sachin Salgaonkar from Bank of America. Please go ahead. Thank you for the opportunity, and congrats on great set of numbers. First question is on competition. Just wanted to understand, is competition also intense in Tier 2, Tier 3 cities, or is it that there are few operators and hence competition is reasonably lower out there? I think, competitive intensity is fairly high pretty much wherever everybody's. I mean, different set of players in different markets, right? Someone is aggressive somewhere at this point, right? For us, it's competitive everywhere. Got it. In terms of dark store additions, when we think about it, is the mix still 80% urban and 20% Tier 2, Tier 3, or, you know, that has changed over a period of time? That's changing, Sachin. I think, I mean, we're not giving a specific guidance, as we mentioned, but increasingly, I think, as we've also mentioned in the letter, a large part of our growth will come from geographic diversification. We will see that mix change over time. Okay. You know, other part you mentioned in your letter is obviously assortment expansion. Does that mean we are looking to upgrade some of the dark stores to bigger size dark stores now or add more dark stores in the vicinity? I think that means we are going to expand our assortment by whichever way we can. I mean, for us, it's like square foot space, right? Size of the store is a function of a lot of factors, availability, the specific neighborhood, the urban infrastructure in that neighborhood. It's a very hyperlocal call. There is no sort of one single sort of answer for this that applies to every city and every locality. Got it. Pretty clear. Next question is on AI on ads. You know, we are seeing multiple platforms globally actually now seeing that the ceiling on ad revenue as a percentage of GOV has now started to move up, because AI does allow them to do a lot more things and, you know, push ad per se from that point of view. You guys clearly are doing a lot on AI. Does that mean that, you know, at some point in future also, what we're expecting as a sort of a cap on ad as a percentage of GMV, that might move up and hence, there's room for your steady state margins also to move up in both food as well as quick com? Generally, we don't operate, like, with a cap in the mind, right? I mean, we don't know what the cap is like, honestly, right? I think we'll respond to the realities of the situation around us in the business, right? If that means that we have an opportunity to have higher ad income in our business, so be it, right? Same framework then. If we have that, we have more margins, can we invest in growth? Can that growth drive more profit? Like, that's the mental model, which is fairly fundamental and simple. We don't operate with a set of hollow metrics with some ceilings or target or goals in mind. I don't have, like, any other color to share on this. Got it. Actually, when we talk about Quick Commerce margins at steady state being at 5%-6%, is there an implied assumption in terms of, you know, how much ad out here is in terms of that 5%-6%? No, no. As I said, I mean, like, we don't know we're discovering that. Like, I mean, like, Quick Commerce is a much younger business than Food Delivery. It's already doing more in terms of ad as a percentage of NOV, right? I mean, we don't necessarily don't have a number in mind here on where does it land and finally go to. Got it. Last question is, if there is any sensitivity on higher fuel prices to demand on food. Historically, have we seen anything when fuel prices have increased, there has been an impact in demand? It depends on the quantum. Generally, you know, increase in fuel prices will lead to higher cost of delivery. The last mile cost goes up, right? Now what percentage of that we decide to pass on to consumers is something that we'll decide when the time comes, right? It all depends on that quantum. In the past, if you see, going by the last 12, 18 months ex-experiences and examples, like the GST hike happened, you know, we were fairly easily able to pass it on to consumers without too much impact on demand. Unless it's a drastic increase, I don't expect fuel price increase to have a meaningful impact on margins on our business. Got it. All the best. Thanks. Thank you. Thank you. Ladies and gentlemen, we will now conclude this conference call. Thank you for joining us and you may now disconnect your lines.