Ladies and gentlemen, good day and welcome to Sai Silks (Kalamandir) Limited Q3 FY 2026 earnings conference call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as of the date of this call. These statements are not a guarantee of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded, and I hand the conference over to Mr. Bharadwaj from Sai Silks (Kalamandir) Limited. Thank you, and over to you, sir. Thank you, sir. Good morning. Good morning, everyone. Good morning, ladies and gentlemen. Thank you for joining us today to discuss the financial and the operational performance of Sai Silks (Kalamandir) Limited for the third quarter, as well as the nine-month-ended FY 2025-2026. First of all, I wish you and your families a very happy New Year. I'm Bharadwaj Rach amadugu, Senior Vice President, Sai Silks (Kalamandir) Limited, and I'm joined today by Mr. K.V.L.N. Sarma, our Chief Financial Officer. To give you a scenario on the overall market environment for Q3, during the Q3 FY 2025-2026, the Indian ethnic apparel retail market experienced moderated demand, primarily influenced by the shift in the festive calendar. Dussehra, which contributed meaningfully towards the footfalls of Q3 in the previous year, occurred earlier and fell into Q2 during the current financial year. As a result, Q3 FY 2025-2026 witnessed relatively lower footfalls compared to Q3 FY 2024-2025, where festive-led demand had supported higher store traffic and conversions. Consequently, consumer activity during the quarter also remained largely occasion-driven, with softer demand during the non-occasion periods. Consumers continued to display a measured and value-conscious purchasing approach, reflecting broader consumption trends across the discretionary retail. Despite the near-term impact of the calendar shift, the underlying demand for ethnic wear still remains structurally strong, supported by weddings and cultural occasions. On the financial performance side, for the third quarter ending December 31st, 2025, the company reported revenue from operations of INR 411.25 crores compared to INR 448.5 crores in the last Q. The year-on-year moderation in revenue was largely attributable to the lower footfalls during the quarter, driven by the shift in the festive calendar. For the nine-month period ending December 31st, 2025, the company delivered a strong and resilient performance. Revenue from operations grew by 16.1% year-on-year to INR 1,234 crores compared to INR 1,063 crores in the last nine months of 2024-2025. Gross margin for the Q3 improved 40 basis points YoY, increasing to 42.2% compared to 41.8% corresponding last quarter. This was driven by pricing discipline and improved product mix. For Q3 FY 2025-2026, the profit after tax stood at INR 38.4 crores compared to INR 46 crores in the last quarter. The year-on-year moderation in quarterly PAT was primarily on account of the festive-led volumes and the Dussehra season. For the nine-month period ending December 31st, 2025, the PAT increased by 50% YoY to INR 108 crores this year compared to INR 71.8 crores in the corresponding last period. On the absolute percentage basis as well, this year for the nine-month YTD, we achieved a PAT margin of about 8.77% compared to the last year's PAT percentage of about 6.7%, which is a 200 basis points increase, reflecting improved operational leverage, better cost discipline and absorption, and enhanced operational efficiencies across the business. This represents a strong year-on-year improvement, which is achieved despite the near-term demand variability and ongoing expansion-related investments. Overall, the company's performance demonstrates its ability to protect margins in the softer quarters while delivering meaningful profitability growth over the medium term and underscoring the strength and scalability of its operating model. On the operations front, during Q3, the company continued to execute its calibrated expansion strategy with a focus on strengthening the presence in the key retail ethnic markets. In Q3, we have added approximately 20,500 sq ft of retail space. During the nine-month period ending December 31st, the company added 11 stores, with the cumulative retail space added to be 54,500 sq ft and are well aligned to meet this year's target plan of opening the desired retail area and stores. As of December 31st, the total company's retail footprint stood at 7.7 lakh sq ft of total retail area, reflecting steady and disciplined expansion aligned with long-term growth objectives. As of today, the company still stands to have a track record of not closing a single store. Looking ahead, the company has a healthy pipeline of new store additions planned for the upcoming quarters. The expansion efforts will continue not only in the existing markets, where the company already has a strong brand recognition, but also in select and new markets which are currently being evaluated. The company remains focused on disciplined capital deployment and sustainable growth as it scales its retail footprint across the country. Now, I will hand it over to the operator and would be happy to answer any questions. 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 remove 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. The first question is from the line of Ankit Gupta from Bamboo Capital. Please go ahead. Yeah. Thanks for the opportunity. Sir, on the store expansion front, if you can talk about what are our plans for the next financial year? Are we looking to expand in the existing geographies, the four states we are currently present in South India? So if you can expand upon that a bit. Okay. So first and foremost, currently for this financial year, we targeted around close to 60,000 sq ft-65,000 sq ft. As of today, we are at 54,500 sq ft, and we'll comfortably meet the desired target of 65,000 sq ft, and there's a possibility to open beyond the targeted area this year. For the next year, we want to go a little bit more aggressively compared to this year. We have a very strong store expansion plan, and we wanted to extend the current target from 65,000 sq ft to almost like about close to 80,000 sq ft-85,000 sq ft as well. So the markets where we wanted to look at is both on the current four states as well as into the newer territories. As we speak, we are already exploring newer markets in terms of Maharashtra and Kerala as well. Very soon, we'll start expanding our store presence across the other areas as well. The formats that we choose to expand is basically going to be majorly driven through a Varamahalakshmi-led expansion strategy supported by the Valli format. So majorly, it will be like Varamahalakshmi, and Valli will primarily happen in the existing states we are present in, right? Hello? Hello. Yeah. Sorry, I lost you a bit. Yeah. So basically, Varamahalakshmi expansion will happen in the new states that we'll be entering, and Valli will happen in the existing states that we are present. That's the right understanding? Correct. You're right on that. Yes, you're right on. Correct. Sure. Sir, the second question was on how is the outlook looking for Q4 and FY 2027? How are the wedding dates panning out for next financial year? If you can talk about how is the demand in the current quarter? So if you can talk about that a bit. Sure. So I just want to quickly take a moment to just recap our conversations. If you look at my earnings call as well as my news that I was participating in that, what I've also mentioned is after seeing a healthy pipeline of wedding dates in half year, I've told that there will be some amount of correction because of shifting wedding dates and festive calendar in the Q3. That is the kind of traction is what we are currently seeing right now. But for the full year, for the quarter four, the desired plan of being able to meet the 15% of revenue target still stands intact. However, on the wedding date side, as you rightly asked for, Q4 is having similar dates compared to last year of Q4. After that, also, in the next financial year, generally, we get one round of calendars in the month of January, and we have one more round of iteration that we do in terms of preparing of the wedding calendar again during the Ugadi period, which is around mid-March or in the month of March and April. From where we initially got our market research as well as the wedding dates, we do have a healthy pipeline in the next year as well. Compared to this financial year, next financial year wedding dates are more by 10% more percent of wedding dates. Last year to this year, it's already increased. Compared to this year to next financial year, it's even more than the current year. It is looking very decent. And the good part, again, which is going to continue, is that all these dates are not clustered or not confined to just any particular month or quarter. It seems to have a distributed month. And especially during the next financial year, from all the way to April to July, there is nonstop. There's no break in terms of the wedding dates. It does have a healthy pipeline. Sure. Sure. Okay. Got it. And sir, on the KLM side, if you can share the numbers for Q3 of this year and nine months as well, and the comparative numbers for the last financial year. And how has been the performance of that? Have you seen some improvement? In the first half, we did see that there was some moderate growth in the KLM sales. So how has been the performance in Q3? And for overall nine months, if you can share the numbers for this year and last year as well. Okay. So on the performance side, I think half-yearly KLM, as we rightly spoke about, because of Dussehra and all moving to Q2, we did see a very healthy SSG growth for KLM as a format. There are no new stores added on the KLM front. But on the quarter three side, there has been some degrowth coming in from majorly the men's and the kids' wear category. Sari as a category seems to still be strong. I think that's what I've also mentioned in the opening remarks as well, because this particular category is the one which is men's and kids' is the one category which has been affected in the KLM business as well. And that is what has caused the major degrowth in this particular quarter. But YTD, KLM is still positive, marginally positive compared to last year. And the way we think the remaining quarter for Q4 also goes, we should be able to end with a low single-digit positive SSG growth for KLM as a business. One headwind that we are facing majorly is with the men's wear and the kids' wear category. The good news is sari as a category. Men's wear, kids' wear on the overall component today stands to be around 12% overall compared to the overall structure, which is 15% last year. So that piece is a little bit shrinking because the KLM as a business, majority of it still being sari should not be a problem. I think we should be able to recover whatever we have lost in Q3 with a marginally slight single-digit SSG growth by the end of Q4. That should be possible. Sure. Sure. And sir, just one last question on the other expenses front. So we have seen a significant decline in other expenses in Q3 compared to the Q3 of last year. And finally, maybe due to the Dussehra getting the sarees getting a coupon. But overall, on a nine-month basis, also, if you look at the numbers, we have hardly grown on the other expenses front. So if I look at the breakup of that, there are major rent-related expenses and other fixed costs which are there. But there are some, sorry, the variable costs which are there. But there are some business and advertising expenses also. So have we reduced on that from business and business promotion and advertising expenses for this quarter? Even on YoY number, there is hardly growth of 14% or 4% in this number compared to 16% growth in the top line that we have seen for nine months. If you can talk about this and elaborate on the same. Sure. One of the major reasons what we have consciously taken a decision upon is because the festivity moved to Q2, we have pushed the aggressive expenditure to Q2 and have controlled expenditure in the Q3, and therefore, you see a reduced expenditure on the overall front. If you also look at this year YTD as a number, majority of our stores are Varamahalakshmi. Varamahalakshmi silk stores generally have lesser advertisement compared to any other format that we currently operate in, so the nature of the business, when we do realize that the festivity calendar has shifted, and therefore we have taken a conscious decision of limiting the advertisement and business promotion expenditure. That is one of the major reasons why we are still able to show a decent EBITDA margin of about 17% this year and still be able to not affect the profitability aspect. That's, again, something that I mentioned in my opening remarks as well. During the softer quarters, we are aware of what kind of demands will pan out, and therefore we have taken conscious decision to not overspend on advertisement expenditure. So what we are seeing today in the advertisement and business promotion expenditure saving is the actual saving that will happen. And Q4 compared to last quarter and this quarter should pretty much be in the same lines on the advertisement spend. Apart from the business promotion and advertisement spend, remaining all the other expenditure are pretty much similar. It is as per the normal norms of how the expansion has happened. This is one area where we were able to reduce the advertisement and business promotion expenditure, and therefore the entire margin flowed down to EBIT in fact. Sure. Sir, just last question on this one. So how should we look at this number going forward? Like as a percentage of sales or with the expansion that we are planning in the next financial year and new states? Sure. See, on the absolute advertisement expenditure, our internal goal is 2.5%. That's where our goal is. On the ADVT and business promotion expenditure both put together, we should be able to be under 4%-4.5% on the maximum side. But the way things are happening, we are aggressively taking a stand to keep it well under 4%. That should continue when we expand to new states? Absolutely. It should continue. Sure. Okay. Thank you. It will continue as we expand to new states and new formats as well. Whatever comes down, that will still be the goal and the KPI that we will be targeting. Thank you, [Amish]. Thank you. Thank you. Ladies and gentlemen, in order to ensure that the management will be able to address questions from all the participants in the conference, kindly limit your questions to two per participant. Should you have a follow-up question, please rejoin the queue. The next question is from the line of Akhil Parekh from B&K Securities. Please go ahead. Hi. Thank you for the opportunity. My question is on the growth front, right? I understand the festive has shifted this year versus last year. But if I combine 2Q and 3Q numbers, the growth rate is still at 6%-7% on a top line basis, which is relatively weak, given that we were expecting FY 2026 to be a very strong marriage season. So that is one. And second, I think you lowered your sales guidance for full year because last quarter, if I look at it as per the concall, you were guiding for 18%-20% top line growth. Ultimately, what we are seeing now, we are comfortable at 15% top line growth. That's my first question on the growth. See, on the growth side, I think nine months till now, I think we are still positive by 16%-16.5%, which is the overall growth. On absolute SSG level also, I think we are close to around 6%-6% more or less on the SSG side. On the full year side, what we have initially guided is around 15%-18%, while 18% is still the target. I think after seeing a quarter three performance, we wanted to be giving you a conservative approach of being able to achieve the 15% kind of a number that we wanted to achieve. The way things are in quarter four also, there is February and March and April. These three months are heavily motivated by the festive and the wedding calendar that is there. Therefore, we believe that this is a number that should be possible. We've just hardly completed 15, 20 days of business in Q4. From where things are, the business should be able to pick up. And once we start moving down the quarter, we should be able to give you a realistic guidance on it. But at this point of time, I feel like achieving the 15% growth would be realistic right now. Sure, and anything on the market overall? Yeah, please. Yeah, sorry. No, no, go ahead. Go ahead. No, I mean, that's what I wanted to mention. I think what we have also mentioned is I did highlight in my earlier conference call also that quarter three should be a little weaker quarter when you look at because last year in H1, it was pretty negligible year for us in terms of the wedding and festivity calendar. The entire business moved from H1 and fell into Q3 and Q4. So Q3 was a quarter that has taken major heavy lifting in the last year business. This year, what happened is, one, it's a heavy base when you compare to last year Q3 to this year Q3, plus the season has moved from Q3 to Q2 is the reason why we are seeing this sort of a degrowth on the Q3 numbers. But when you pan this out and when you spread this out to a full year, 15% should be possible for us. That's what I wanted to mention. Got it. And my second and last question on the growth and margin front for FY 2027. So first, nine months this year, we did around 16.1% of the delta margin. Given that we are going to expand further in Varamahalakshmi, should we anticipate some improvement on the margin squares for FY 2027? And second, should we pencil in 12%-15% of growth for 2027? That's my last question. So on the margin front, I think I wanted to mention to you is like, see, even with respect to profitability aspect, right? I mean, we're talking about EBITDA margins. I'll come to that also. Last year, in the first three quarters, we have done a total profitability of about INR 71 crores-INR 72 crores. This year, already we have surpassed the last year's full number of INR 105 crores profit already right now. We've reached the INR 108.2 crores or somewhere in that range. Now, what I'm trying to tell you is the operational leverages and the EBIT percentage margins are already kicking in, and that is what is causing us to give a healthy margin. So this should be able to continue in the Q4 as well, and we should be able to post a comfortable margin overall. But on the overall front, the gross margin side, I think achieving a 42%-43% in the next full year should be achievable. And on the EBITDA margin side as well, 17%-18% is something that we are targeting for the next year. This is majorly driven by Varamahalakshmi format and changing the product mixes is the two fundamental reasons that I wanted to put out there. Even if you look at the overall full year, this year projection, even if you're able to achieve a 15%-18% kind of a number, on the profitability side, I think what I wanted to mention is operational leverage will kick in, and almost we are expecting a 35% jump in terms of profitability compared to last year's profit. So both on the margin, gross margin expansion is possible, and EBIT margin is definitely possible. On the PAT margin, I think we are clearly able to see that the jump is already there, and we have surpassed last year Q3, and we have one full quarter of the entire profit being added to the overall full year profitability aspect. This is taking into consideration of the one-time tax provision that we have given last year. Otherwise, the reported profit last year was only INR 85 crores. Sure. This is clear. Just one clarification, you said 35% PAT growth for full year, right, on a YoY basis? FY 2026 over FY 2025? Correct. Got it. Got it. Thanks a lot and best wishes for coming quarters. Thanks. Thank you. The next question is from the line of Rahul Jain from Credence Wealth. Please go ahead. Thanks for the opportunity. So with regards to the growth next year, you mentioned we have better wedding dates, which are much more spread out compared to this year. And also, you are targeting a much higher square feet addition, which you mentioned in your initial comments. So when we look at next year, on overall top line growth, should we expect at least 15% or maybe in the range of 18%-20% given the square feet addition and the wedding dates being better than this year? So can we expect on a current 15% growth, so this year we end up around INR 1,700 crores of sales, on that, can we expect somewhere around 18%-20% growth? The goal, sir, is to actually have a 5% SSG and a 15% kind of a new store rollout addition. Both put together is going to be 20%. That's the goal that we internally have working with. But to answer your question in short, yes, we should be able to target anything between 15% and 20%. Sure. And coming to the next year's store addition, which you spoke about, and also you spoke about Maharashtra being there. So typically, what kind of since the number of stores being added and the square feet addition is quite aggressive, so is there more details in terms of what kind of addition in which states we are looking at and Maharashtra? Typically, are we trying to get some stores in Maharashtra also next one year? As a matter of fact, I think from the last quarter, we have been actively scouting for locations. It's just that the rental costs are much, much higher than the average rental that we pay down in any of these four states. We are actively exploring the negotiating with the landlords to ensure that it fits into our ecosystem of rent-to-revenue ratios. The way things are currently is that the rentals are much, much higher in Mumbai, but I think we are in advanced stages of negotiation, and we are actively pursuing opportunities in Nagpur, Mumbai, and Pune as well. We don't anticipate at this point of time, we should be able to see a huge number of stores in one year, but we should definitely be able to see a few couple of stores and us entering into this market trying to understand. Once next year we start, probably in one or two quarters, we should be able to sign a couple of stores. Once those stores come into full operational existence and once it completes about a quarter or two quarters, probably that's when we'll start adding additional new stores. But at this point of time, to answer your question in short, by next year, you should be able to see stores in Maharashtra. And last thing, sir, with regards to Valli, so we are already at 11 stores and almost more than six months since the first store opened. So if you could share the unit economics with regards to this format, that would be quite helpful. Sir, I think I wanted to again put that first quarter of Valli operations was Q2 and the next another Valli. The The quarter three was a lower quarter overall. So it still wouldn't make sense to give a number. But broadly, if I have to put Valli into perspective and give you numbers, it will be in the same range of how Kalamandir formats are currently working with reduced capex and reduced inventory levels. I mean, what I would request is if you could give me another quarter. By the end of March, it would at least complete about six to nine months of complete operations, and probably I'll be able to give you. And in this next quarter four, we don't have any new Valli stores planned. What we wanted to do is we wanted to have a proper model built in terms of how we wanted to take it forward, and only then we will add new Valli stores. These 11 Valli stores should remain in the same count by the end of March, and we should be able to build a model out of this and be able to provide it to you. Post that, we should start looking at a Valli expansion in the next financial year. Whatever stores that we will be adding in this particular quarter in Q4 will be Varamahalakshmi Silks majorly. Sure, sir. So, sum it up, Valli economics currently are almost somewhere near your Kalamandir format. Is that the right assumption? Yes, you're right. Absolutely. Sure. Thank you so much, sir, and all the best. Thank you. Thank you. The next question is from the line of Param Vora from Trinetra Asset Managers. Please go ahead. Hello. Thank you for giving me this opportunity. So my question is regarding the margins. So are there any margin differences between online and offline sales? Yes. Good morning, Param. So yes, there are margin differences between the online and offline. On the Varamahalakshmi and on the Mandir, these are the two formats that we are having on the online business. Slightly lesser. On the online business, we have 10% lower cost compared to the offline stores. But on the Kalamandir front, again, there's a difference. But online business in the overall aspect, if you see, it's probably 1%-1.5% of the overall business currently. So it's still relatively smaller compared to the offline section. But there's a slight lower margin, I mean, on the online business compared to the offline business side. Any plans to partner with third-party online channels like Myntra, Jio, etc.? On that front, I don't think as a company, we would want to aggressively go onto the third-party channels. I think on the marketplaces, as you wanted to mention, I think we have tried this out in the last two financial years. And what we have understood is huge marketplace commissions eats up, and there's a heavy advertisement commission that eats up. And the worst of all is when you get the return, the product doesn't come intact in shape. There's a lot of business loss that we are incurring as a saree business. So we thought whatever business we try to do it, we will try to pull it away from the marketplace channels and try to do everything on our websites only, and it's working well. The good part is that we were able to see the typical ASP for these marketplaces that you were mentioning about ranges around INR 700 to INR 900, INR 950. But for us, if you look at the Mandir and Varamahalakshmi, we are still being able to operate at an ASP of about INR 8,000 or so. That's something which is encouraging, and we don't want to actually go into the marketplace as we speak. We are comfortable in this place, and it attracts a lot more. You need to jack up or increase your margins aggressively and then provide deep discounting. That's a model that we don't want to operate in. Okay. Thank you. Thank you. The next question is from the line of Dhwanil Desai from Turtle Capital. Please go ahead. Hi. Good morning, everyone. So first clarification, I think you guided for 15% growth on an entire year. So that comes out to be 12%-13% growth for the Q4, right? So is that a fair understanding? Yes. That's right. Okay. Okay. Got it. Sir, one question on this expansion thing. I think whenever we last interacted, the idea was that there is enough room in the existing state to go deeper and try out newer formats. We were opening some stores of Varamahalakshmi in Karnataka. There was some space there. Same thing in Andhra also. If you can elaborate your thought process on the idea behind entering a state like Maharashtra, which is quite different maybe in terms of taste and the kind of merchandising that you need to keep. Also, if you enter in a city like Mumbai, wouldn't it make sense to have multiple stores rather than have one or two stores there? If you can talk about your strategy, why we are going into a state like Maharashtra, which is kind of away from what we have been doing so far. Okay. So on the overall strategy wise, yes, there are pockets of areas in the current existing territories where we are not present. I mean, I've given examples in my previous conversations as well, which is in Telangana, apart from Hyderabad, and there's one small city called Khammam, there is no other store present. There's a lot of opportunity in this Telangana as well as in Andhra. While we are adding up new stores in the existing core markets, we also wanted to start slowly pivoting into newer territories. See, when we go to a new state, what we have already followed, when we were only present in Hyderabad, then we experimented with Karnataka, then we moved to Tamil Nadu. The way we wanted to do is open one or two stores max and understand what the consumer behavior and consumer pattern is. The good part is our ecosystem is there where if we wanted to change the product mix, there's always an opportunity for us to sell it in different stores. Even as of today, the procurement that what we do for our existing stores in these 80 stores that we have are not just sourced from one city. We source from pretty much any saree weaving cluster that is out there in the market. We source from different points, like north, south, east, west, wherever it is. More than 100 places is where we source our products from. So the consumer point of view would not vary too much. We would still be able to operate in the wedding space, I mean, which is the saree space, but slightly be able to add the value with kurta, kurtis, and lehengas aspect to that. But overall, our USP and primary point of focus will still be Sarees. So when we move into a new territory like Maharashtra, be it Mumbai, be it Pune, wherever it is, we will start off with one single store, understand what the consumers and customers are asking for, make the necessary changes before aggressively expanding. Once we crack that part of what exactly the customers want, then we'd start aggressively going to expand two, three, four stores. And the reason behind that will be to give you some leverage with respect to back-end operations like warehousing could be or administration. This is that cluster model that we have been following for the last two decades. That is what has worked for us, and we will continue to operate in the same aspect. So this logic applies to new cities, new territories, and new states. Anything that we do, this is the kind of logic that we will try to apply for. Got it. Got it. So, sir, for now. Mr. Dhwanil. Please rejoin. I just had one question, right? I had just one question. Sure, sure. Please, please. Yes. Yeah. So, sir, second question is on the Varamahalakshmi. So I think we were clocking around 25,000-30,000 kind of a number for the Tamil Nadu stores, and the idea was that it will eventually mature to 45,000-50,000 range. So where are we in that journey? Are we moving towards that number? Do we expect that to hit that number in Q4, Q1 next year? Any thoughts on that? Any thoughts on that? Tamil Nadu currently is delivering on an average around 37,000-37,500 per sq ft. There is a potential for it to go up to 45,000 by the end of 2027. So on a staggered basis, this will deliver another 7,000-7,500 in the next four, five quarters to come. Got it. And that will help improve our margins, right? Because that's the most. That will substantially improve the margin because the store-level costs are already met at the current time. Got it. Got it. Got it. Thank you. Thank you. And wish you all the best. Thank you. Thank you. The next question is from the line of Resha Mehta from GreenEdge Wealth. Please go ahead. Yes. Hi. So the first question is on the store expansion plans. So while it's around you've guided for around 80,000 sq ft-85,000 sq ft, can you give the breakup between Varamahalakshmi and Valli? Broadly, what is it that we are thinking? And also in terms of Varamahalakshmi, so at around 37 stores or maybe if you want to put it in square footage terms, where do you see that kind of saturating in the existing markets of South? Okay, ma'am. So for the next year target, more than 50% will be Varamahalakshmi, and the remaining 50% will come from a Kalamandir format and a Valli format. As I did mention, in quarter four, we are holding off onto expanding into Valli format because we want to build a model and reduce as much like bring in more efficiencies in the current model, build that model, and start scaling into the other tier two and tier three stores. The vision that we have for Valli is eventually, if not this year or maybe within the next 12-15 months, we should be able to make this model attractive so that if at all in future, we are able to build in an investor-friendly franchisee model, Valli as a format will be able to help us build that. That's the vision plan for Valli for the next 12 15 months. But for the next financial year, because we already have a capable steady format, which is Varamahalakshmi, which is better in terms of capital allocation and better margin profile, everything, we wanted to at least have 50% of the overall expansion coming from Varamahalakshmi format. In the location strategy perspective, while we are scouting for newer territories, which is Maharashtra and Kerala, the emphasis, at least in the next six months, will be in the core markets. It is just that we are trying to finalize and freeze these locations. Not many locations are ready to occupy for us to begin with. But by the end of this FY 2026, FY 2027 financial year, you should be able to see stores where we are able to open beyond the four territories. In the existing markets, if you ask, are there any scope for expanding into newer markets? With With respect to Varamahalakshmi and Kalamandir, yes. In tier two cities, we are not at all present in terms of Telangana market as well as in Andhra market to a certain extent. We are currently in the active pursuit of closing a few locations. But again, in Karnataka, in the last year and this financial year, I think we have closed a few locations in Karnataka, and there are still opportunities in Karnataka. With respect to Tamil Nadu, what we will do is we will pause with the Varamahalakshmi format in Tamil Nadu because we are having the Varamahalakshmi spread out pretty much every two hours or three hours in tier two locations. We have our Varamahalakshmi stores present. There's maybe two or three new Varamahalakshmi stores that could come in Tamil Nadu. But what we will do is that with the Varamahalakshmi stores already being present, we will now support that existing store network with a newer format. This could either be a Kalamandir or a Valli format. And that is what will help us bring in that cluster expansion strategy and be able to get that advantage in terms of administration and back-end warehousing. So this is broadly the structure that we have for this financial year and the next financial year. Sorry, so just two clarifications here. So when you say 50% store expansion for the next financial year, you're being led by Varamahalakshmi. So you say 50% in terms of the store count or in terms of the square footage? I think what we are currently tracking is with respect to store square feet itself. I think the store count, the averages are moving a little bit here and there, 5,000 sq ft, 6,000 sq ft, 7,000 sq ft is the kind of average that we're going. I think from the last, I think, three, four quarters only, we started communicating, and the way we are tracking is with respect to the store sq ft itself. So the metric that we should be able to assess is the store square feet itself. Okay. So 50% store square footage from Varamahalakshmi. And the second clarification was on, so basically what you're trying to say is that Varamahalakshmi will still, I mean, you all will continue to expand the stores in tier two cities of Telangana and Karnataka, while Andhra and Tamil Nadu will be kind of in a pause mode. Is that understanding right? Okay. More or less, yes. There are still three, four locations in Tamil Nadu and three, four locations in Andhra that we are currently going to complete expansion. In Andhra, I think by quarter four, we should be able to add two or three locations in Andhra. After that bit completes, then there are three, four stores. But majorly in tier two of Telangana and Karnataka, you should be able to see stores coming in. Understood. The second and the last question is basically on funding this expansion and the working capital. So with this 80,000 sq ft, and if I assume around INR 4 crore CapEx per store on an average, right? However, we don't have the store count per se, right? So how and also, let's say if we do around, based on your guidance, INR 2,000 crore kind of a revenue in the next financial year, and half of our working capital is half of our sales, so INR 1,000 crore working capital requirement, and to fund the store expansion, so where do you see how do we when will we need fresh funds, etc.? I do understand that there's still some bit of unutilized IPO money is left, right? But where do you see the funding requirement again coming in? Yeah. This IPO money, we will be getting exhausted by this month end, at this year end, FY 2026. So by that time, out of IPO money, we would have completed about 190,000 sq ft of expansion. However, during the current year and some part of the last year, we have internal accruals accrued, which we are holding in cash right now after liquidating the entire working capital borrowings. So broadly, if you take the store expansion along with the working capital, if we are implementing, say, around 75,000 sq ft-80,000 sq ft, then for that, we would be requiring at the rate of 4,000 per sq ft and about 8,000-9,000 per working capital. We should be requiring in the range of 12,000-15,000 per sq ft, including working capital, which entails approximately INR 100± crores for the year. Right now, our current year internal accruals, since the entire internal accruals are free for us because the entire expansion was funded by IPO funds and working capital was already brought to zero by the beginning of the year, we will have the entire current year accruals available for us for expansion in the next year. So that will be fully adequate for that. And then it is a cycle going ahead next year also. So broadly, if you take, say, we are holding an inventory of INR 770 crores-INR 800 crores at this point of time where working capital borrowings are zero. So then when we are deploying, when we are expanding, and along with expansion, our working capital is also met through internal resources only. So the expansion for the next year would be easily funded by the internal generations that we are holding at this point of time and the funds that will accrue in the Q4 as well. This will be a cycle till we undertake a larger expansion. And wherever required, if there is any shortfall of funds at any point of time, we would go in for working capital borrowings. But as I foresee, we will not be requiring any borrowings for working capital until the second half of FY 2028. Understood. Very clear. And we have some INR 22 crores unutilized money. Just the last question, data question. Can we let ma'am explain? Yes, please go ahead, ma'am. Thank you so much. So we have this unutilized INR 22 crores for two warehouses. So do we plan to utilize this for the two warehouses? Yeah, we would. We have a plan to identify and put up the warehouse also because Tamil Nadu expansion is almost complete, but for about three to four possible stores and so forth. We would be implementing the warehousing implementation also. Maybe there may be a slight delay of two or three months, but the identification transaction will be closed before 31st March. Understood. Thank you so much. And all the best. But on the overall front, I think, ma'am, what I wanted to tell is the unutilized funds that are currently there in the monitoring account, more or less, I think we should be able to have the utilization completed by 31st of March. Sure. Thank you. The next question is from the line of Amish Kanani from JM Financial. Please go ahead. Yeah. Hi. Congrats, sir, on a very good control on working capital and profitability, controlling the cost. Sir, quite a bit also is asked about the growth, which was slightly softer on Q3. If you can just give us some sense, you mentioned the men's and kids' wear category probably were the reason. Is this the way things will pan out because of our expansion strategy or the category can come? I understand the growth of 10%-20% probably will come from there. So one, if you can give us the sense that for reaching 20%, 10% store count growth and 5% SSG, where that extra 5%, if at all, we have to grow at a higher rate, how will we kind of achieve? If you can give us some sense, that would be helpful. Only this year, performance overall, I think in quarter three, if you take, pretty much all the formats did see degrowth. And the reason why I mentioned men's and kids' supported by KLM Fashion Mall is that those were the sections that took a bigger impact in terms of the degrowth aspect. But if you look at YTD, saris still continue to dominate and show resilient performance overall. So we will still continue to operate in that particular space. As we keep adding new stores, the impact of men's and kids' as a category itself will slowly come down and will not increase in the overall contribution to the revenue. With that being said, there are efforts, I think in the last couple of quarters also, what I have been mentioning is men's and kids' wear is undergoing a lot of changes. The changes include changing of the overall product mix in the men's and kids' wear category, renew the entire purchasing style that what we have been capturing. Those are some efforts that we are taking, and we will continue to do so. But for the next financial year, I think we will still be able to plan and build a model around where the SSG contribution to the overall growth will be 4%-5%, and remaining growth, whatever be it aggressive or less aggressive, will entirely come from the new store addition that we plan to add. So to answer your question, the remaining gap in terms of the overall growth will come from the new store addition that we will plan. If I may add a little on this, the growth comes from three quarters. One is store addition. The second is SSG beyond 3%. It will add to some margins. And the third, the stores which have already come into existence, getting matured and giving higher productivity. So the higher productivity in the stores that have already established will give a better margin, a higher margin going ahead. So the growth in the profitability aspect will come from all these three aspects. Yes. And in that question, sir, in that same light, how is the store count addition that we had for last year and this year year to date? How is the productivity there? Is it shaping up the way we like it and scaling up to the normal mature economics, sir? That's all. For the last question, I remember to have answered this, that the new stores that have come in last year, they are averaging around 37,000-37,500 with a potential of 45,000. So there is a potential of another 7,500 sq ft, another INR 7,500 per sq ft on approximately 100,000 sq ft that would come over the next four to five quarters. Sure, so I have a couple of more, but I'll go ahead and take back interview. Thanks. Thank you. The next question is from the line of Hitaindra Pradhan from Maximal Capital. Please go ahead. Hitaindra, your line is unmuted. Please go ahead. Yeah. So first question is on the store expansion for FY 2027. So if I heard it correctly, you said 15% square footage addition, which I think translates to almost 1.2 lakh sq ft. Or is it 10%? Hello? Store addition is 10%, approximately 75,000 sq ft. Okay. Okay. So the question here was, last year, the June quarter was basically a washout quarter. So on the base of last quarter, this nine month, 15% is looking nine. But if I look at two-year CAGR for nine month to nine month, which takes into account the wedding day dips in the June quarter last year, your sales CAGR is around 10-odd%. And your square footage addition itself is 9-10% in these two years. So now we are talking about even more aggressive expansion. But somehow the data which is available to us is not reflecting any sort of meaningful SSG, which you are getting from the stores. So given that, and also you mentioned about the consumer behavior, which is becoming more value-oriented, and we are more specialty sales driven. So given this, what is giving you the confidence to become more aggressive in the store expansion? Okay. So on the SSG-wise, I think last year was that disrupted year, and the previous year also a little bit in terms of the Q3, Q4. There has been effect in the overall demand perspective. These changes, what we have been seeing in the last couple of previous year and the last year, was majorly with respect to retail as a category on the whole. Those are reasons I would probably attribute to the macroeconomic trends, which I probably don't want to comment today upon. But in this particular financial year, if you look at, this is that one year where if you remove the quarterly highs and lows, on a full year basis, we are able to showcase that ideal year where SSG level contribution is still there, plus we are still be able to showcase the overall growth as well. So what I would want to point out. That is the disconnect because if you remove last year Q1, which was basically a washout, and as another analyst also pointed out, for Q2, Q3 combined, it was looking at 6%-7% growth only, which is not more than your square footage addition. So that is where the disconnect is coming. The data which is available to us is not showing any meaningful store-wise growth, sir. Okay. So what I was trying to communicate is when I continue the format by format, if you're able to clock a positive SSG growth, that gives us confidence for us to start expanding beyond the current levels. While the last year and the previous year all are disrupted because of other factors, with Varamahalakshmi format and the Valli S ilks format taking into shape, we believe the store expansion should be able to help us balance out and maintain a positive level growth. But still, the goal for us still will be to ensure a positive SSG that we should be able to achieve, which is what is happening in this financial year. So because we know that by the end of March, we will be able to clock a positive SSG, this gives us confidence to start expanding beyond the current territories to newer territories and start making a mark for us and start expanding further beyond these markets. Because even when we go beyond the current territories, go into newer territories, there is still a possibility for ethnic retailers like us because in those markets, majorly, these are dominated by the Kurta Kurti Lehenga categories. Sari as a category, there are still no trusted brand or a trusted player pan-India. And we feel like there's a gap in the market, and we will fit that gap properly. Sir, it would be good if you can help us with format-wise SSG because we are not able, if you look at the overall company picture, to understand what is giving you the optimism to become more aggressive about store expansion. Because maybe your enthusiasm is coming because you are seeing maybe VML and Valli as having good [triple SG]. But overall, at the company level, we are not able to see SSG from the financials which are there if we take out the Q1 of last year. That is one. That was the feedback, sir. Second is on the other expenses. Now there has been a major dip. Last year, I think we had some short-term rents and ads which were sort of major heads inside that. If you can give some numbers on what has contributed to only 4% other expenses growth for 9M, and how do we see that in the coming years, sir? I think on the other expenditure front, I think I made this explanation earlier as well. This year, we have reduced the overall advertisement expenditure on the whole, and especially majorly, this has come into effect in the quarter three, which is the last October to December quarter, and that had a major impact in the reduced expenditure. Last year and the previous year, what we have also done is business promotion expenditure also was something that we were carefully, aggressively promoting. Because half year, we had a negative half on the overall degrowth, we started operating majorly on business promotion to give some kind of rewards to the customers to come and continuously shop with us. This was again driven majorly with the KLM format as such. This year, we do understand that business has the seasonality aspect and the wedding dates are evenly spread out. We reduce the overall dependency on the business promotion aspect as well, and therefore, the additional new stores that came in this year, which is Varamahalakshmi stores, in general, only requires lesser advertisement expenditure, so therefore, these both are the two factors why the advertisement expenditures for nine months seem to be much lower than compared to last year. Now, again, one other aspect to this is last year, in quarter two onwards, we started aggressively expanding and spending in digital media digital marketing. While the important in the last the offline newspapers, which was that also came down, whatever we are trying to spend is on the digital front and social media channels. So the changes that used to have a reduction in the overall, broader ad expenditure, we will be able to have percent, but this number should start coming down, move along. Thank you. Thank you. Question for today. So to Mr. Bharadwaj, over to you, sir. Thank you for joining. Before we close, I want to mention that the seasonality, one good thing the company is continuously is that in terms of the versus the growth in a much manner, and that we were able to in this quarter this growth. The company aspect seems to what we also consider when we keep on expanding is this sort of an operational leverage still kick in, and by the end of Q4, we should be able to target a much profitability compared to that we will continue. This is a trend that we should be able to next and upcoming to come. Again, in the next quarter, you have a nice day. Thank you. This is Sai Silks (Kalamandir) Limited. Thank you all for joining us on the conference line.