Ladies and gentlemen, good day, and welcome to the Vaibhav Global Limited Q3 and nine months FY 2026 earnings conference call. 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 touchtone phone. Please note that this conference is now being recorded. I now hand the conference over to Ms. Nishita Bhatt from Adfactors PR. Thank you, and over to you, ma'am. Good evening, everyone, and thank you for joining us on Vaibhav Global Limited earnings conference call for the third quarter and nine months ended 31st December 2025. Today, we have with us Mr. Sunil Agrawal, Managing Director, Mr. Nitin Panwar, Group CFO, and Mr. Prashant Saraswat, Head of Investor Relations. We will begin the call with the opening remarks by Mr. Sunil Agrawal on the business operations, key initiatives, and broad outlook, followed by discussion on the financial performance by Mr. Nitin Panwar, after which the management will open the forum for the Q&A session. Before we get started, I would like to point out that some statements made or discussed on today's call may be forward-looking in nature and must be viewed in conjunction with the risks and uncertainties that we face. A detailed statement and explanation of these risks is included in the earnings presentation, which has been shared with you all earlier. The company does not undertake to update these forward-looking statements publicly. I would now like to invite Mr. Sunil Agrawal to make his opening remarks. Over to you, sir. Thank you, Nishita. Good evening, everyone, and thank you for joining VGL's Q3 FY 2026 earnings call. I trust you have reviewed the results and the investor presentation. We delivered a strong performance in December quarter with revenue growth slightly ahead of our guidance. Our consolidated quarterly revenue crossed INR 1,000 crore mark for the first time, reaching INR 1,066 crore, a 9.1% YoY growth. Performance during the quarter was achieved despite tough geopolitical conditions. Gross margin stood at 63%, up 170 basis points YoY, driven by the strength of our vertically integrated global supply chain. Digital contribution was 42% of B2C revenue, and we remain on track to reach 50% digital contribution by end of FY 2027. Further, I'm delighted to share that our in-house brands reached 48% of sales contribution mark during the quarter, and we are on our journey to achieve 50% sales milestone before the target of end of FY 2027. Let me briefly cover regional performances. In the U.S., we ended the quarter on a strong note and registered revenue growth of 3% YoY. Highly elevated precious metal prices and lower consumer confidence compelled the consumers to defer discretionary purchases. During the quarter, we started our in-house jewelry casting manufacturing operations in U.S. to mitigate tariffs on our jewelry shipped to U.S. However, we still had 489 basis points increase in our overall product costs due to tariff on other products. Despite this, we were able to increase the gross margin by 30 basis points as our vertically integrated model provided requisite resilience. In the U.K., revenue was down by 1.8%. While Ideal World continued to perform strongly and grew by 12% YoY, TJC had negative growth of 6%. Due to softness in overall consumer confidence, combined with steeply higher precious metal prices, consumers deferred their purchases. This had a direct impact on core TJC's growth. Ideal World continued with a strong EBITDA profitability, which is driven by healthy gross margins. Overall, U.K.'s EBITDA margin improved substantially by 240 basis points YoY, owing to dynamic product profile and operational efficiencies. In Germany, we delivered revenue growth of 5.1%, supported by continued strength in the live TV commerce. In digital, we have seen initial signs of improvements, and we are confident that digital will start contributing to overall growth in Germany business in coming quarters. Further, I am pleased to share that the Germany business has turned profitable during the quarter with EBITDA margin of around 6%. We remain on track to achieve EBITDA breakeven for the full financial year 2025-2026. We expect Germany to start contributing to group EBITDA margin from financial year 2026-2027 onwards. Our growth continues to be guided by four clear priorities, which are expanding reach, new customer registration and acquisition, retention, and repeat purchases. During the quarter, our TV networks reached 127 million households. As of 31st December 2025, our unique customer base stood at 706,000, up 2% YoY. On a TTM basis, we added 308,000 new customers, which paid, while retention remains stable at 40%. Customer engagement remained healthy, with customers purchasing on average of 22 pieces on TTM basis. Sustainability remains integral to our operations. Recently, we have made a commitment to the Science Based Targets initiative, that is SBTi, and we are aligning our carbon reduction strategy within the 1.5 degrees centigrade increment pathway under the Paris Agreement. Our ICRA ESG rating was upgraded to 73, reflecting continued progress towards governance and environmental practices. On the renewable energy front, we generated 1.1 million kWh of solar power during the quarter, meeting 100% of our manufacturing power requirements. The VG Group is now Great Place to Work certified across all geographies. Further, under our flagship Your Purchase Feeds program, we have served 109 million meals, currently providing around 59,000 meals per school day. We remain committed to our long-term goal of serving 1 million meals per school day by FY 2040. Capital allocation remains a key priority for us. The board has approved a third interim dividend of INR 1.5 per equity share, implying a 28% payout. Despite ongoing adverse macros, our balance sheet remains strong, providing the requisite agility. During the quarter, we delivered revenue growth slightly ahead of our guidance of 7%-9%. We remain well positioned to sustain profitable growth while maintaining our FY 2026 guidance. We expect to achieve 9%-11% revenue growth in FY 2026-2027, with an EBITDA margin of 10.5%-11%. I will now hand over the call to Nitin to discuss financial performance. Over to you, Nitin. Thank you, Sunil. Good evening, everyone. I will now take you through the financial performance and key operational highlights for the third quarter. Please note that from this quarter onwards, we have enhanced the disclosure of our segmental performance, and the same is published in our investor presentation. As Sunil mentioned, we delivered leading quarterly revenue of over INR 1,000 crore. Reaching revenue of INR 1,066 crore reflects a growth of 9.1% year-over-year, which is slightly above our guidance range. It is also satisfying to see branded sales mix becoming 48% of B2C sales in Q3. Further, digital business is also progressing towards achieving our target of 50% sales contribution by FY 2027. These milestones reflect satisfactory performance towards achieving our strategic objectives. Now I will cover the geography-wise performance in quarter three. In the U.S., revenue growth for the quarter was 3% year-over-year. In quarter three, customers deferred their purchase amidst softer consumer sentiments triggered by higher metal prices. Despite these conditions, our margin remains strong and supported by integrated sourcing and local jewelry casting manufacturing capabilities, which got operationalized in Q3 itself. In the U.K., revenue declined by 1.8% year-over-year. The TJC operations were impacted due to taper demand owing to surge in metal prices and subdued consumer sentiments. Ideal World continues to deliver strong revenue growth, supported by a wider assortment of products and in-house sourcing capabilities. Ideal World continued to sustain its healthier profitability. Overall, U.K. operation has delivered a strong profit growth of 40% year-over-year, owing to cost rationalization and operating leverage. Germany recorded 5.1% revenue growth during the quarter, supported by sustained growth in live TV commerce. In line with our stated guidance, the business delivered positive EBITDA of 6% in December quarter, driven by scale and cost rationalization. We remain on track to achieve full-year EBITDA profitability for financial year 2025, 2026. Overall, in U.S. dollar terms, Q3 revenue growth was 3% year... 3.4% year-over-year for VG Group. TV revenues stood at INR 589 crores, growing 7.7% year-over-year, while digital revenue increased by 11.2% year-over-year to INR 423 crores. Digital now accounts for 42% of total revenue and we remain on track to achieve reach by 50% by FY 2027. Lifestyle products contributed 35% of total sales with a medium-term target of 50%. As mentioned earlier, in-house brand sales mix now 48% of B2C revenue during the quarter, and we are confident to achieve 50% sales contribution before our targeted period of FY 2027. Gross margin remained strong at 63%, maintaining margin above 60% in a challenging operating environment, underscoring a strength of our vertically integrated in-house supply chain. EBITDA margin expanded by 170 basis points to 13.2%, with EBITDA growing 26% year-over-year in absolute terms. So margin expansion was driven by improved realization and operating leverage, led by 120 basis point improvement in employee cost, 60 basis point improvement in airtime cost. Profit after tax grew by 41% year-over-year to INR 90 crores. The business continued to generate healthy cash flows. Operating cash flows stood at INR 160 crores, and free cash flow at INR 143 crores. The balance sheet remains strong, with net cash position of INR 213 crores, reflecting prudent capital management and liquidity strength. ROCE improved to 21%, while ROE stood at 15%, indicating continued improvement in our return ratio. The board has approved an interim dividend of INR 1.5 per equity share, reflecting a balanced approach to capital allocation while maintaining adequate liquidity. In view of the prevailing operating environment, we remain well positioned to sustain our profitable growth while maintaining our FY 2026 guidance, and expect to achieve 9%-11% revenue growth for FY 2027, with EBITDA margin of 10.5%-11%. Thank you, and over to you, moderator. We will now open the lines for Q&A. Thank you very much. We will now begin with the question- and- answer session. Anyone who wishes to ask a question may press star and one on their touchtone 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 Deepali Kumari from Arihant Capital. Please go ahead. Yeah, thank you for taking my questions. So I have just three questions. Quarterly sales volume for TV declined from 1.74 million to 1.71 million units, and digital volume dropped also. So while consolidated revenue grew by 9.1% due to ASP increases, particularly a spike in digital ASP from $32 to $38. So how sustainable is the reliance on pricing power if unit volume continue to trend downwards? Let me take this. So, hi, Deepali. So unit decline is mainly related to the customer adoption of the products. Right now, the lab-grown adoption is pretty high from the customer point of view, and we are seeing the productivity metrics on TV and also on website, the lab-grown product demand is high. So that is driving the higher ASP, but it is also realizing higher revenue to us. So volume has a degrowth, but the realization is pretty good with the lab-grown products. Okay. So what is the revenue contribution for LGD, and what is the average selling price of that? The LGD is now double digits, roughly around 10.7% of our retail revenue. Average selling price is at roughly around $250 for lab grown. Okay. And sir, EBITDA in Europe and mainly in Germany, jumped year-on-year, even though revenue in Germany grew only 5.1% in local currency. So what specific price control measure and cost-cutting help achieve such a big margin improvement? Is the current 6% EBITDA margin in Germany sustainable going forward? Most definitely. So Germany, one reason is the improvement in our gross margins. We have, from past quarters, we have managed to improve gross margin roughly 300 basis points-400 basis points in our gross margin with better product offerings, and also the cost measurement that we have done in all the respective areas, from airtime to, shipping partners, and also in the productivity increase in our warehouses. So improvement in gross margins and the... Our cost improvement, we have done in Germany operation, resulting a higher profitability with the 5% growth. And we suspect that this growth is sustainable, and we continue to improve this, profitability, this number with the improvement in our EBITDA margin. Thank you, sir. And just- Just one point, Deepali, on this one. So the seasonal time, which is October to March, is seasonal time for TV e-com business. During that time, we expect to see continued improved gross margins or the EBITDA margins, but during the summer months, it may be a bit lower. But overall, for this financial year, we will be EBITDA, slightly about EBITDA positive, and next year we expect the EBITDA margin to grow up. But the 6% may not be constant every quarter. Some quarter may be higher than that, and some quarter may be lower. But overall, we'll be better next year than almost flat or slightly positive EBITDA we expect this year. Okay. So, like, we can consider, like, above 6%? Yeah. We are not guiding specific numbers for next year yet. Okay. but we will be noticeably better than almost less than 1% EBITDA this year. Okay. For TJC in the U.K., saw revenue fall in local currency. What economics are slowing growth there? How will the Ideal World acquisition help in improving performance in the market in the next few quarters or so? Sunil, you want to take it? Yeah, sure. So Ideal World, as I stated, is performing very well. Last quarter, we have seen 12% growth in Ideal World, and now it is achieving almost similar EBITDA margin what TJC is generating. TJC, as mentioned, that we have seen slowness in terms of consumer demand towards the elevated metal prices. That impacted, and also the lower consumer sentiment impacted the lower, sales growth in TJC. But that is offsetting related, in our higher growth in Ideal World. And Sunil, would you like to add on the growth perspective measurement of TJC part? Yeah. So in TJC, we are seeing good traction on digital space, and we're also exploring some additional national airtime, but only part-time, two, three hours or four hours a day. We had some of these hours, which we exited. Actually, two broadcast services we had, we exited them because there was some price negotiation could not be completed. But we are exploring some other shortly. And digital continues to benefit to us. And the cord cutting in U.K. is much, much slower than U.S., so we expect the TV to continue to add value to our business or the growth to our business in coming quarters and years, foreseeable future. Okay, sir. Sir, your Jaipur, Jaipur plant, do you have any plan to increase factory utilization? Jewelry manufacturing is a low CapEx model. So if we need to increase the production capacity for future growth, we can do that with very little CapEx. And currently it is very, very optimized from people point of view, from equipment point of view. Okay. Okay, sir, got it. Thank you. Thank you, Deepa. Thank you. The next question is from the line of Kiran Gadge from Kni ghtstone Capital Management. Please go ahead. Hello. Hi. For lifestyle, we have, the contribution was 35% of total sales, and in medium term, we are targeting 50% of sales. Because of this shift, will we be able to maintain our margin? Because in lifestyle we are not vertically integrated. Yeah. Although we're not manufacturing lifestyle, but we are able to source it from directly from all over the world. We have offices in four, already four countries to source, and we have supply chain relationships with manufacturers in 30 countries. Yeah, so we expect the margin to be similar, growth trajectory as we are seeing in jewelry. Okay, okay. Got it. That's, that's it from me. Thanks, Kiran. Thank you. The next question is from the line of Garvita Jain from Seven Islands PMS. Please go ahead. Hello. Hi, sir, I hope I'm clearly audible? Yes, you are, Garvita. Yeah. So sir, my first question is on the content and broadcasting expenses side. So I wanted to understand, if I take content and broadcasting expense as percentage of the sales, can we expect it to further reduce? And, if, in terms of absolute number, can we expect it to remain in the same range of INR 190 crores and around that? There are two components of this content and broadcasting. One is the TV content broadcasting, another is the digital spend. So we expect the TV portion to remain constant, but the digital will go up. So as a percentage of revenue, it should be... We, we don't expect a leverage from this area. Okay. So leverage is expected, right? Yeah. Thank you. So, leverage, we expect will be expected. and also- From three areas, we expect leverage in future as we are guiding for higher EBITDA. One is that the gross margin, we expect to continue to improve slowly over the time. The second is the employee cost. So employee cost, we, as we are gaining efficiencies in process improvement and scaling from the fixed base, we expect the HR cost to improve. AI is also helping in this area. And SG&A, some SG&A may have some savings as well. So these three areas will give us a leverage. Okay. Got it. And sir, if I talk about the automation in the business model, any type of automation or AI used in the business model, any possibility of employing such thing in the business which can help us to improve efficiency and reduce cost? And any kind of EBITDA margin improvement we can expect from that side? Yeah, you, that is true. We, constantly, we are implementing the process improvement, automation and AI into our business processes. That is the reason you saw 1.2%, in efficiency improvement last quarter, in our HR costs. That is in the HR cost, right. Okay. One more question, sir. On the Germany business part, good to see that you have achieved the breakeven on this business, but can you please give me how exact figure of how much was the PAT loss on nine-month basis from the Germany business? Nitin, can you look it up? Yeah. So PAT is higher. We guided for EBITDA one. So EBITDA is roughly around, for nine months, INR 300,000 loss that we have. And we are expecting that it will cover up in the current quarter. Okay, this is EBITDA. Can you give me PAT loss, sir? PAT is not significant because major cost is the interest, which is intercompany interest, not a third party. So it is an intercompany cost. Okay. Okay, that's fine. Sir, can you give me some kind of guidance on Germany business in terms of the revenue guidance and profitability that we expect... we can expect for FY 2027? Yeah. So overall revenue guidance we're giving for next financial year to be 9%-11%, and that incorporates all the businesses that we have. Now, from the EBITDA point of view, we gave the guidance that next financial year, Germany will start contributing to group EBITDA. In current financial year, it will be flat or slightly positive EBITDA, but next year it will be, it will start contributing. Still, it is, the macro environment is still a bit uncertain, so we are not giving specific guidance of specific business unit. But overall EBITDA guidance we're giving for next year is 10.5%-11%. In fact, this is the first time we are giving EBITDA range guidance in our investor calls, but that's for overall business. Okay. Okay, I get it. One more question, sir, because of the- Sorry to interrupt. With the increase- Please rejoin the queue for follow-up question. One last question, sir, if you can allow me? Sorry, ma'am, can you please rejoin the queue, as there are more participants left in the queue? Okay, no more questions. Thank you. Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star and one on their touchtone telephone. The next question is from the line of Sahil Sharma from Dolat Capital Management. Please go ahead. Hi, sir. Thank you for the opportunity. So I just wanted to understand, so the digital ASP has been consistently growing over the last few years, and it is now more in line with the TV ASP. So first of all, what has been driving this growth? And is there scope for further ASP growth, given that the TV ASP seems to have stagnated at the $38-$39 mark for the last 2 year-3 years? Yeah. So I'll take the first part, the ASP. So digital has two portions. One is the major part, the rising option, which is a $1 bidding model, and the rest is the fixed price catalog and the web TV. So $1 tends to be a lower ASP, as that is a lot of engagement with the customer and the inventory clearance mechanism. Now, as the business is moving towards more the digital marketing through social media and the sales is coming through paid channels, the other portion is increasing significantly over the years. And we have seen over the period that the high-end jewelry consumer are giving more lifetime value compared to the $10 or $5 product. And towards that, we are investing our money where we are getting the higher lifetime value from the customers. One of the examples is the lab-grown product, which is continuously performing well, and that we are marketing and targeting the customer through the paid media on web. That is driving the higher ASP towards that. ASP normally will keep a range of, for a business perspective, around $40. But we are targeting based on the profitability of the customers. So right now we cannot guide on the where the price will fall of digital consumer, but it will be on the profitability side wherever we would like, the customer is giving more value. And also, you have mentioned that SGVs are about $250 ASP, and you know, the share has been growing. So I was just trying to understand if that share goes further, so this can move further, you know, beyond $40 as well. But definitely, that will be the acquisition product, but then the repeat will come back with the different offerings from jewelry to lifestyle products. That will have the lower selling price... So not necessary that if the price is $250, it will remain same. The different product bouquet we have from $5 to $1,000, with 30,000 different SKUs. So that's where the average price becomes low. Understood. And what was the revenue from the OTT channel this time in Q3? I think that number was missing in the presentation. It is not with me right now, but yeah, Prashant will come back to you on the OTT numbers. Okay. And so how are you seeing the conversion of trend in the OTT channel? We are sort of making a lot of investor investments in that channel. So is that investment trend continuing, and how is the conversion trend that you're seeing there? So would you like to take this? Yeah. So we continue to make the investments. There are two reasons for that. We are seeing the audience migrating a lot towards OTT channels. There is a Fire TV, Roku, you know, Samsung TV or Roku TV. There's so many of different platforms. In fact, the OTT viewership right now is almost four times the linear TV viewership in the U.S. So we are continuing to make investments, and we are seeing the lifetime value of OTT customer much higher than TV customer also. The challenge in OTT is once you get customer to download through paid media, once they download, it is difficult to retarget that customer because the OTT ecosystem is not as evolved as the mobile app or the online system is. We are continuing to explore more and more advertising option and continuing to explore those areas. The revenue continues to improve, YoY. I don't have the exact number, but we are continuing to make the investment and continuing to expand in that area. Understood. And one last question, sir. So we had this, you know, target of reducing our timeline, breakeven timeline for customer acquisition cost from about 9 months to 3 months-6 months. So where are we on that journey at present, and is the trend encouraging? Yeah. So we have got six brands. So, two of those brands have already achieved three months breakeven, and the rest are between the five months to nine months period. And we are learning every day and experimenting with different products, different offers, different landing pages, and getting to and shortening the time. And as we shorten the time, we'll continue to scale those brands up, and that is one of our growth strategies going forward in future. Understood. Thank you so much for answering the question. Thank you. The next question is from the line of Deepesh Sancheti from Maanya Finance. Please go ahead. Hi, am I audible? Yes, sir. Please continue. Okay. Now, I just wanted to understand in jewelry, how much is the sales from gold, silver, and artificial jewelry? Hello? Hi, Deepesh. So in plain gold, we don't have much. Majorly, we do the casted jewelry, studded gemstone or diamond or lab-grown product. Plain gold, as our guardrail of keeping the margin 60 and above doesn't need, so we don't do, unless it is very designer jewelry, we do that part. But, the margin guardrail, just that product normally do not need, so that is why the proportion is comparatively very low compared to the other major product is gemstone jewelry. No, I'm just trying to understand that in the jewelry segment, which is approximately 65% of your sales, how much is in terms of a gold product, in a silver product, and how much of it is artificial jewelry? And does that all have the same margins or not? That I mentioned about that, we are the proportion from gold, silver, and platinum with the studded gemstones. So gold portion will not be a significant one in the product cost. So we target based on the different gemstones. So we cannot have—we don't have right now that how much gold portion we'll have on those products. Yeah. but the major part will be gemstones. How much of your products, I mean, even in studded, how much of it is done in gold, how much of it is done in silver, how much of it is done in platinum? If you can have that bifurcation. Got it now. Yeah, Deepesh- Majority of the product, yeah. Yeah. Deepesh, I can give you rough numbers, I don't have exact breakup, but approximately 70% of our jewelry would have silver, gold or platinum component of it, and by value, I'm saying. And the 30% would be base metal. That is, brass or copper or stainless steel. Great. That's it. That's good enough. Yeah, that's just a rough number. So what we can do is to get the data in more detail and get that out to you later. I think you can contact the IR for that, to have the exact numbers, if you can have. Sure, yeah. Prashant will arrange for you. Great. And just wanted to understand also the U.S. exports. Is it going fine? Because you had mentioned that, you know, you are casting over there, getting it here, finishing and going back. It's only 5.5%, I think, what you mentioned last, in last con call. So is that working well, or are we facing any duty challenges? ... No, that is working well because we are casting there, and we have the customs border protection ruling specifically for our company, stating that this process is, as per the law. So in this case, we are paying 5.5% tariff only on the value addition, and not on the casting component. Great. On casting, it is zero. Great. And your lab-grown is done mainly in gold or, in other, in every metal, in every precious metal? Pretty much every precious metal, silver, gold, platinum, everything. Silver, gold, platinum. Okay. Are you seeing any traction more in silver? Because of the high gold prices, a lot of lab-grown jewelry has started coming into silver. Are you seeing that kind of traction, or it's working well in all the three metals? For us, it's more platinum and silver. Gold, velocity actually reduced after prices shooting up. Now, silver has recently shot up extra exponentially. So we don't know how the silver with the new prices fare up in lab-grown. But we, right now, it's doing well. But, going forward, we don't know. So what we're doing is testing into more different metals, like base metals with a lower carat weight, lab-grown, and see how that consumer takes up. So we, we constantly bring new product, Deepesh, 100 new products every day. There's a very high velocity of experimentation, testing, and then, new product coming to customers. Great. Is this new FTA, which has been signed between EU and India, how are we as a company exploring that opportunity? Because apart from- Yeah, definitely helping. Focusing as a part of EU, that's why. Yes, yes. So we save 4% on all jewelry exports from India to Germany, so that will definitely benefit us. Okay. That will add to our margin directly. Is that the right assessment? Correct, it will. Great. And if you can just give us a ROE going forward- Sorry to interrupt, Mr. Deepesh, but I will have to ask you to- Just the ROE, because- Sir, can you please join the queue for more questions, as there are more participants in the queue? Okay, no problem. Thank you. The next question is from the line of Lakshmin arayan from Tunga Investments. Please go ahead. Yeah, thank you. When I look at your unique customer growth, I see the growth has been 2% for the nine months across. Just want to understand which geographies the growth has been positive and which geographies the growth has been negative. And if you can actually give some idea of whether it is on the lifestyle or in the jewelry. I just want to understand that particular part. Yeah. Hello, Lakshmin arayan. So, we are seeing the good improvement in TJC in U.K. The digital customers adoption is pretty high over there. Ideal World remained flat, and also Germany remained flat. Mainly, we are seeing some low customer in U.S., as the strategy of acquisition on digital customers, we have moved from low price point to slightly higher price point customers. So that's where the unique customers were lower. Mm-hmm. Initially, we acquired a lot of digital customers through $10-$30 price point, but we have realized later that those customers are not giving value as we anticipated, and we are seeing that more high-end customers giving more value. So that's where we, we have seen, last 12 months TTM basis, unique customers are lower on the U.S. side. On the U.S., again, there are two ways to think, right? One is lifestyle, one is jewelry. Another way is digital and non-digital. Where do you see the decline in unique customers in the U.S. market? Which segment of it? So with digital customers, mainly we have seen the change in past one year, as the customer inflow was very high, and mostly jewelry product we were targeting to acquire those customers in one year back. And that is now reduced after the changing of strategy to higher price point targeting, so mainly U.S. jewelry customers. What is your outlook in terms of that unique customer growth, you know, broadly? What is the internal thought process for FY 2027? Do you intend to keep the U.S. unique customer growth at somewhere like mid-single digits, or how are you thinking about it? We mainly target the profitability of the customers, rather targeting number of customer, targeting quality of customers. So not a specific number, but more a quality of customer we are targeting. Good. The second question is that, if you look at the last nine months, any specific projects or something which you have actually initiated and that have actually done pretty good for us? Anything you would like to call out the last six months, last nine months, where you see either benefits have already come, or you think benefits should come actually down the line- Um- which you haven't done the previous year? There are so many initiatives, just to sign- Anything you would like to call out and prioritize, like what, which you are- ... There's one pure D2C brand called Rachel Galley, that we signed four years ago. So last quarter, we, we were able to see the good traction on lab-grown diamond and a couple of other jewelry products. And then we, scaled up the spend, and we're able to triple the revenue within that, the brand. Now, it's a very small base, so that overall it doesn't, kind of speak or not come up in the total numbers. But there is a proof of concept that on digital space, if, we are able to, crack the code, there is a room to scale up the revenue pretty, rapidly. And that we saw with Rachel Galley. Now, we've putting up AI, initiatives in different places. For example, AI chatbot, so all the, text responses are generated by AI. The email responses are generated by AI. Even the voice response now, we're testing with 10% customer in U.S., you know, voice response is by AI. We're using AI for creating our TV schedules, our calendar is getting done by AI. The, we have CRO GPT within our business in U.S., so any question for internal data, we can ask in natural language and get the answer now. At multiple levels, we are implementing AI. The content and everything everybody does, but this, these are more high value-added AI use cases in the organized company. Warehouse automation, not automation, process improvement, in U.S. especially, has led to lower operation costs. Now, U.S. is running with 350 people at higher revenue, which used to be 500 people, three years ago, and lower revenue. So we're seeing a lot of different areas and initiatives in different places. There is varying of... One initiative that you've asked, and I'm just sharing with you, there's a concept called zero distance. The Chinese term called RenDanHeYi, founded by Haier founder, Zhang Ruimin. And last month I went to China to meet him at his $55 billion company. He gave me 90 minutes. And we understood from him how we, how they create micro-enterprises within the group with P&L responsibilities, and then how they drive efficiencies to increase the sales, reduce the cost, improve the margins, and that leads to efficiencies. So across Vaibhav Group, now we have over 100 micro-enterprises with P&L responsibilities. And we are developing entrepreneurs within our company to drive the business forward. So a lot, many initiatives that I can list here, but all this put together gives me confidence that we are, VGL is poised for strong growth in years to come. Thank you, sir. Thank you very much. Thank you. The next question is from the line of Naveen Baid from Nuvama Asset Management. Please go ahead. Thank you for the opportunity. I had a bookkeeping question. If I look at your segmental revenue, there is a disconnect between what is reported to the exchanges and what is put out in the presentation. Can you please explain that? Let me see, one second. Yes, so exchange gain specifically is not present in the segment one, it is clubbed between the all the entities. You are referring in the investor presentation segmental result? Yes, yes. So, if I look at the investor presentation, the segmental slide, your U.S. revenue is at INR 593 odd crores, right? Right. Right. Right. Right. Whereas if I look at what you have reported as an extra one in the exchange filing- Right. - your revenue for U.S. is INR 685 crore. Yeah. I got it now. So that is why we have shown separately, because that is the published accounts is based on the geography-wise, and here we have separated the retail and the manufacturing. U.S., we have a two entity. One is only- Mm-hmm. the sourcing entity, so that revenue is clubbed in U.S. But now for the better presentation, that's the actual real reflected number in investor presentation. So the other revenue is the sourcing revenue, which is done by a separate entity in U.S. Okay, but then, it's fair to assume that those products are eventually getting sold in the U.S. only. So the incidence of sale, the true incidence of sale in the U.S. is, what is reflected in the exchange number of INR 685 crore? Is that fair to assume? Yeah. But that will not be a comparable number then, because some of the inventory will be remaining from those products in U.S. So, fair to compare the retail and the sourcing separately, both sales. Okay. Okay, got it. Just one more question. So what is our current customer acquisition cost across channels? Just some color. So that would be very, Naveen, that would be difficult to pinpoint because we have six brands, and within each brand- Mm-hmm. We have multiple acquisition channels. We have Google- Mm-hmm. We have Meta. Within Meta, we drive about 10-12 different product categories, and each have different- Mm-hmm. - customer acquisition costs. ... Let me just rephrase the question. So then, what is the ROAS that we generate on the digital performance marketing spend that we do? The return on ad spend. Yeah, so we look at ROAS, overall ROAS on a store ROAS basis. We look at 2.5 as a target ROAS that we should generate, because our margin is about 65%. At 2.5 ROAS, we are breakeven. And then we then try to get that customer to purchase again and again in future with us. So from all marketing put together, there is Meta and Google, Apple, affiliate and email, you know, text, all those marketing. Mm-hmm. That's the overall, overall company, uh, target that we look at, or, or the brand target we look at. But individual channels may differ. Some channels, for example, Meta, lab-grown diamond, one day click, accrual ROAS, we are okay with 0.4 or 0.5, 0.4, 0.5. Because then that eventually we know flows into the other channels, and then email or direct or whichever, and then goes to 2.5. So it's a bit complicated because across different product categories and different channels. Okay, got it. Thank you. That was helpful. Thank you. Thanks, ma'am. Thank you. The next question is from the line of Tripti, an individual investor. Please go ahead. Hello, sir. Am I audible? Yes, ma'am, please continue. Okay, so sir, my question is like, India and UAE FTA trade deal was concluded yesterday, removing the 2%-4% duty on jewelry. Your German revenue has been stagnant, and you cited a 9% digital drop last quarter. So since your Jaipur unit is already shipping to Germany, will you use this 400 basis point margin tailwind to lower price and fix the digital decline? Or will you let the flow bottom line ensure Germany doesn't slip back into the loss in Q4? Good question, Tripti. Thank you. So, we will... Our aim would be to get to a revenue growth of 10% or higher in Germany with EBITDA contribution to the group. So within that objective, we will look at what works best. Should we reinvest some of that into the customer acquisition or to let it flow? So that will be decided on a pretty dynamic way. So at this time, it will be difficult for me to give a guidance how exactly it will play, because our business is very dynamic, Tripti. There's TV, web and, you know, multiple product lines, so we look at that pretty dynamically. Okay, okay. And, one more thing, like, you had multiple leadership realignment in Germany over past 18 months. So is current team permanent, or should we expect more reconstruction in cost in FY 2026? Yeah, we're pretty happy with the team that we have now, and they are coming together very well, and they are performing. As you saw, last quarter, there was a revenue growth from quarter before, there was no revenue growth. Last quarter, there was revenue growth, the growth margins are higher, EBITDA positive, and it's profitable, so we're very happy with the team, coming together and performing. Okay, so there is no change in team, right? No, no change. No major change expected. Some additional spaces to fill, but they're all middle level only. But nothing, no senior changes or no major changes. Okay, there is a last question. Like, you can consistently beat your lower, lower margin, like 7%-9%, whatever you guided. Then, given that you grew 16% in U.S. this quarter, so why are you still maintaining such a low guidance for full year? So for first part, I'll take Tripti. So U.S. growth, 16% is not applicable comparison, because that includes the sourcing unit growth. But for... You can refer the investor presentation, that will be the better in line with the comparable number. So U.S. in past quarter, we have a growth of 8.7% in local currency terms. That is the more comparable comparison. This is rupees. In rupee terms, yeah. And for next year, we are guiding that 9%-11%. So that is definitely the other initiative is helping, and that is why we are guiding the higher number for the next year. Okay, thank you. Okay, thank you so much. Thank you. Thank you. The next question is from the line of Deepesh Sancheti from Maanya Finance. Please go ahead. Yeah, a couple of questions from here. Can you hear me first? Yes, Deepesh. Yeah. What is the labor code impact on our company in this quarter? Yeah, I'll take that. So the basic labor code impact was not significant, around INR 1.7 crore. So that we have accounted in our employee cost. Okay, okay. And going forward, what is our ROE expectations? Because in 9 months, you've done ROE of about 15%. And in 2022, we were you know, about 20%, 2023, 32%, that kind of a number. So we... How, when do you see that number actually going to 23%, you know, from 15% to 23%?... Hello? Yeah. So yeah, Deepesh, difficult to guide the, the exact timeline for that, but what I expect that, and we already given the guidance for next quarter for the EBITDA number, and we don't foresee a major CapEx, except some in U.K. but, nothing exceptional, CapEx. So, ROE and ROC, ROIC both should improve next year, and, medium term they should continue to improve. So what I'm, what I'm, guiding is that we should continue to see leverage next year and in medium term. The trajectory will be upwards? The trajectory will be upwards. Is it- Correct. Right. And if I can just, put in one more question: that, how much of your lab-grown sales actually come from a carat and above? Because that's where the real margin would be, I'm assuming. Nitin, do you have an idea? No, I don't have that number. Very, very micro question. It's a good question, Deepesh, but it's a very micro question. So- Yeah. Prashant can probably. But I can give you a general idea that from my, you know, back-of-the-envelope estimate, about 70%-75% of sale would come from 1 carat and up. Great. That's good enough. Yeah. Thank you so much. All the very best, guys. Mm. Thank you, Deepesh. Thank you. The next question is from the line of Shreyansh Jain from Swan Investments. Please go ahead. Hello, can you hear me? Yes, Shreyansh. Yes, sir. Please continue. Yes. Yeah. So my first question is, like you're guiding for 9%-11% of top line growth, what sort of INR depreciation are we building in this guidance? Yeah, so we'll have some, we'll have benefit of first two quarters, assuming that now rupee slide stays where it is, so it doesn't slide any further more. So first two quarters we'll have benefit, and we don't expect much benefit for second, H2 of next financial year. So I don't have exact numbers that we calculated with me right now, but just, overall benchmark, overall framework is H1 will have benefit, H2 won't have much. Just given historically, the rates at which INR depreciates, would it be fair to assume that 5%-6% is our constant currency guidance in that 9% growth rate? I don't have the exact number, Shreyansh, but I do... Long term, rupee has depreciated about 3.5% against dollar. Right. So, but, first two quarters would have more than that, and next two quarters would have less than that. So the calculation that we've done in [materialization] is not with me right now, but there is some component of depreciation in the guidance we've given. Okay. All right. And sir, the other question is on our acquisition of Mindful Souls. You know, since our acquisition, I think, the revenue run rate has been constant at about $4 million. And given that that business is at a high gross margins of 75%, so is there, is there an opportunity to, you know, look at 60%-65% gross margins, which we typically operate at, at a company level, and drive some growth there? Because I think post our acquisition, the revenue run rates have largely been stagnant at $4 million. Yeah, good observation. So the, the main reason for revenue stagnation is the digital customer acquisition cost. And we, we want to limit it to certain percentage of revenue. Beyond that, it becomes, not, not a profitable business. And as we are learning more and more about the business and, and also adding some more strength to the team in India, we expect this business branch to scale in coming future. So, YoY, we had degrowth in, last quarter, Q3, and Q4 would not be, would also may have a little bit of degrowth. But from Q1 onwards, we expect it to have, single digit growth, and then get into double digit growth few quarters down the road. So I'm quite excited with this, brand that we have. As a group, VG group, we learned quite a bit from the processes, digital marketing processes from the brand, and this brand itself has a potential to grow with the demographic that we address it, we target. Okay. And the last question on the U.K. business. So, you know, Q3 of Ideal World, constant currency is degrown by about 6%-odd. Now, U.K., you know, since the last few quarters has been struggling, at least on the revenue bit. So, what are the opportunities you think there are, you know, going forward? Because both U.S. and U.K. are a large piece of business for us, and U.K. was negative, and U.S. also, I think, was 3% constant currency. So when we are guiding for 9% to 11% of top line growth, these two geographies are typically, you know, they have to fire, right? So are we seeing some signs on the ground where, you know, customer sentiments have improved or something on those lines? Yeah, so I'm not seeing consumer sentiment improving. So our guidance is without that sentiment in play, but we are seeing our own internal digital marketing improving in both U.S. and U.K. As I mentioned, [Vision Geli] had 3x revenue and with profitability, and that learning from each other, all the six brands that we have, is percolating within the group in different vertical, like Meta, Google, AppL ovin, Affiliate, Influencers, Email, all these areas. And that is. That gives me confidence for this year's growth. In addition to that, we lost two contracts for national broadcasting in U.K. in last, say, six months, and we are negotiating with couple of such contracts, and that, that contract will also give us growth. So I'm fairly confident that the U.K. will come back to growth, and U.S. will accelerate the growth. Okay. All right, sir. That helps. Thank you, and all the best. Thanks, Shreyansh. Thank you. Ladies and gentlemen, we will take that as the last question for today. I now hand the conference over to Mr. Sunil Agrawal for closing comments. Over to you, sir. Thank you, everybody. I want to thank all the participants for your time and great questions. If you have any further question, feel free to reach out to Prashant Saraswat at VGL or Amit Sharma at Adfactors PR India, and we'll be happy to answer your questions. Thank you all once again. Thank you. On behalf of Vaibhav Global Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line. Thank you.