Credo Brands Marketing Limited — Call Transcript 2025

Nov 15, 2025

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November 15, 2025

To BSE Limited Phiroze Jeejeebhoy Towers Dalal Street, Mumbai – 400 001

Scrip Code: 544058

To National Stock Exchange of India Limited Exchange Plaza, C-1, Block G Bandra Kurla Complex Bandra (E), Mumbai – 400 051

Scrip Symbol: MUFTI

Dear Sirs,

Sub: Transcript of the investor/analyst conference call

Pursuant to Regulation 30(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the transcript of the investor/analyst conference call held on November 10, 2025 on unaudited financial results of the Company for the quarter and half year ended September 30, 2025, is enclosed herewith.

The same is also available on the Company’s website https://www.credobrands.in/investors/financials/#acc_42.

at

Kindly take the same on record.

Thanking you,

Yours faithfully,

For Credo Brands Marketing Limited

Sanjay Digitally signed by Kumar Sanjay Kumar Mutha Date: 2025.11.15 Mutha 18:31:19 +05'30'

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Sanjay Kumar Mutha

Company Secretary and Compliance Officer

Encl. As above

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“Credo Brands Marketing Limited

Q2 & H1 FY '26 Earnings Conference Call”

November 10, 2025

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MANAGEMENT: MR. KAMAL KHUSHLANI - CHAIRMAN AND MANAGING DIRECTOR MR. RASIK MITTAL - CHIEF FINANCIAL OFFICER

INVESTOR RELATIONS ADVISORS: STRATEGIC GROWTH ADVISORS

Disclaimer: E&OE - This transcript is edited for factual errors. In case of discrepancy, the audio recordings uploaded on the stock exchange on November 10, 2025 will prevail.

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Moderator:

Ladies and gentlemen, good day and welcome to the Credo Brands Marketing Limited Q2 and H1 FY '26 Earnings Conference Call. As a reminder, all participant lines will be in the listenonly 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 and then zero on your touchtone phone. Please note that this conference is being recorded.

This conference call may contain certain forward-looking statements about the company which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not the guarantee of future performance and involve risks and uncertainties that are difficult to predict.

I now hand the conference over to Mr. Kamal Khushlani, Promoter and MD. Thank you and over to you, sir.

Kamal Khushlani:

Thank you. Good afternoon, everyone. I have with me Mr. Rasik Mittal, Chief Financial Officer; and SGA, our Investor Relations Advisors. I hope you all received the investor deck. If not, you can view them on the stock exchange or the company website.

This year, we advanced our transformation journey under MUFTI 2.0, where our goal is to deliver a more premium retail experience, elevate our merchandise architecture and strengthen brand storytelling across all consumer touch points.

As a part of this transition, we opened 5 new premium flagship stores in high potential and strategic locations during H1 FY '26. These stores reflect our refreshed identity and are designed to create a more immersive and aspirational shopping experience for our customers.

In alignment with this transition, we have increased our investments in advertising and digital marketing to enhance brand visibility and deepen consumer engagement. These efforts are showing meaningful results.

Sales through our website have more than doubled year-on-year in H1 FY '26, reflecting a stronger brand salience, improved digital image and an enhanced omnichannel journey. Encouraged by this momentum, we intend to scale our marketing and digital investments to increase awareness of MUFTI 2.0 amongst potential consumers.

Operationally, the first half of the year, we continued to face soft demand and muted footfalls. Additionally, the decline in revenue was largely due to a temporary supply chain disruption from Bangladesh, which delayed product availability for the quarter. These goods have been dispatched now in the third quarter and the associated revenue will flow into Q3.

Due to the festive season arriving earlier this year, as per our policy, we proactively refreshed our network with new merchandise to ensure every store carried a fresh, updated assortment. As part of our business model, we retrieved unsold inventory ahead of schedule, which shifted some revenue out of the quarter.

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This is a reflection of our policy and commitment to freshness and brand experience. Our working capital days stood at 217 days for H1 FY '26. This increase is purely a reflection of our business model and current market conditions and not a structural change. In a softer demand environment, we supported our franchisees and MBO partners due to slight slower stock liquidation and corresponding payments.

Importantly, receivables remain fully secured through deposits and long-standing partner relationships and MUFTI has never incurred a bad debt in its history. As sales momentum normalizes, working capital should revert to usual levels. This is business as usual within our operating framework.

Despite these short-term challenges added by transition journey where we are closing the underperforming stores, which affected our revenue for H1 FY '26, which is at around INR284 crores approximately, supported by a gross margin of approximately 59%, up 200 basis points year-on-year, driven by a change in product mix.

EBITDA for the half year was approximately INR79 crores, translating to a 28% approximate margin and PAT was at approximately INR25 crores. We remain confident in our long-term strategy and committed to our vision of establishing MUFTI as one of India's leading premium menswear brands resonating with the modern consumer across both physical and digital touch points.

With this, I would like to hand over the call to our CFO, Mr. Rasik Mittal, for the update on Q2 and H1 FY '26 results and financials. Thank you.

Rasik Mittal:

Thank you, Kamal, and good afternoon, everyone. First, I will give you financial highlights for Q2 FY '26. Our revenue for the quarter stood at INR164 crores as against INR186 crores in Q2 FY '25. Gross profit stood at INR94 crores with a GP margin of 57.1% for the quarter. Our EBITDA for the quarter stood at INR48 crores. Our EBITDA margin stood at 29.4%. Profit after tax for the quarter stood at INR19 crores. PAT margin stood at 11.5%.

Coming to the H1 FY '26 performance. Revenue stood at INR284 crores in H1 FY '26 as against INR310 crores in H1 FY '25. Gross profit stood at INR167 crores with a GP margin of 59% for the half year ended. EBITDA for H1 FY '26 stood at INR79 crores.

Our EBITDA margin stood at 27.9%. PAT for H1 FY '26 stood at INR25 crores. Our PAT margin stood at 8.9%. ROCE and ROE as on September 2025 basis stood at 16% and 14.5%, respectively. Cash flow from operations for H1 FY '26 stood at INR32 crores.

With this, we now open the floor for question and answer.

Moderator:

Jay Laddha:

Thank you very much. We will now begin the question and answer session. Our first question comes from the line of Jay Laddha from JL Capital.

The results are very much bad, but it's okay. I know that this is a business it can't move like further, further and further, ups and downs come. But my major concern is that is totally

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slowdown occur in market? Or is this MUFTI only facing this slowdown? And also when we are going back to earnings positive sales and profitable growth?

Kamal Khushlani:

So Jay, we have faced muted footfalls in this season. And this is ridden on the changes that we are making and some of the stores that we are looking to close, the inefficient ones and open the new stores. And in the earlier calls, the guidance that we had given for this year is that we would remain flattish in this year because these are the changes that we intend to make.

And it will -- the changes that we are making is a slightly longer-term outlook that we are holding towards the business. These changes will give results in some time because we've begun making the investments, and it's important for the customer to see MUFTI 2.0 in its new light, and that's going to take some time till people see it, till they realize it and then that starts converting into reflecting positively in the growth trajectory.

So we hope that in the next year onwards, we are going to accelerate our investment into marketing even more, as we have also mentioned that earlier. So that should come about in about 1.5 years.

Jay Laddha: Okay. So we expect something like a top line to bottom line growth of mid-teens or maybe like early teens in next 1 year?

Kamal Khushlani:

No. This year will be flattish. And the following year also, we will continue what we are doing. So I'm unable to predict right now as to what exactly -- what kind of growth it will lead to. So we are going to play it by the day and see how the consumer is responding. But however, we'll be thinking very quickly on our feet and making whatever changes it takes. This is business as usual.

And there are times when you get these kind of roadblocks at times, but you overcome those. We know what are the things that we need to change in the brand, and those changes are currently underway and in process. And as soon as we start seeing the results, we'll be able to predict better.

Jay Laddha: Yes. And this GST impact has created any more footfall? Or is it like, let's say, a shape of GST?

Kamal Khushlani:

What we see is that higher footfalls have been created for hard goods and not so much for apparel. However, in a brand like ours, we have to wait and watch as to how it pans out because not everything we make is below INR2,500. A lot of the products we make are above.

So for us, in fact, the prices have gone up in some of the products. And in some of the products, they have been reduced. So -- but with time, we believe that these reforms will certainly improve consumer sentiment and should improve demand.

Jay Laddha:

We are in MUFTI because of Kamal sir. He is a great person.

Moderator: Our next question comes from the line of Naitik from NV Alpha Fund.

Naitik: Sir, my first question is, just wanted to understand MBO channel, I understand that we might have seen muted footfalls, and that's the reason for degrowth there. But what is the reason for

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degrowth in the online channels? Because I see that has degrown the most -- if I look at Y-o-Y numbers as a percentage, that's the most degrowth. So what is the reason for the same?

Kamal Khushlani:

So this is a function of when we are working with the marketplace partners on our website, the business has grown. And these are tussled that keep happening sometimes for margins, et cetera. But that's -- by the end of the year, we will end up doing what we wanted to do even in the online space.

Typically, we use it as a channel to liquidate the old season merchandise, and we maintain our strings very strongly and hold on to our reins so that we don't end up losing margins. We don't mind liquidating the inventory slightly slower, but we ensure that the value of the brand does not get eroded.

Naitik:

Sir, in that case, I mean, was -- I mean, we did make higher -- we took some returns also and we made some provisions. So online should have actually grown in that case, right? I mean, if we use it as a liquidation channel, this quarter, we refreshed the inventory also earlier. So that should have grown ideally, right?

Kamal Khushlani:

The sales overall has been muted, Naitik.

Naitik: Okay. Got it, sir. Sir, my second question is what -- I mean, we were going to spend extra amount on marketing. So have we started doing that? And if yes, what was the percentage we spend higher than, say, last year first half?

Rasik Mittal:

So current year, the marketing spend is around 5% in H1 FY '26.

Naitik: And this was maybe 4%, 4.5% last year?

Rasik Mittal:

Last year, I think 3.5%.

Kamal Khushlani : By the end of the year, we may end up spending between 6% to 7%.

Naitik:

Right. So it is not fully come in yet as a percentage of sales. That is what I'm trying to understand. The increased percentage. Got it. Got it. Sir, my next question is, do we see any sort of green shoots? Or do we expect H2 to grow Y-o-Y, I mean, versus H2 last year? Because if not, we would end up not flat, but having -- we would end up having degrowth year-over-year?

Kamal Khushlani:

Hopefully, we should end up with a flattish year, and we expect to see that growth. Like even in Q3, we should be higher than last year because some of the sales moved into -- due to supply chain issues from Bangladesh, some of the sales moved into Q3, et cetera. And due to earlier Diwali, some goods were also picked up earlier this year.

Naitik:

Sir, is it possible to quantify the -- sorry?

Kamal Khushlani:

If you look at our business, Naitik. We've said this in the past as well. A quarter does not reflect the health of our business.

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Naitik:

No, sir, what I'm trying to understand is, if you can quantify this due to -- what is the amount of sales we lost because of supply chain issues from Bangladesh?

Rasik Mittal:

So Naitik, around 1 lakh pieces, which we expected to come from Bangladesh in September and sold got delayed to October, November. And similarly, around 1 lakh pieces, we picked up earlier from -- last year, it was in October. This time, we picked up them back in September. So around 2 lakh pieces, the sales got impacted by around 2 lakh pieces, which should be around INR20 – 25 crores.

Naitik: Right. So close to INR25 crores. Got it, sir. And sir, my last question is just wanted to understand what percentage of our portfolio would be below INR2,500 and what percentage roughly would be above INR2,500? Just trying to understand the GST impact overall as a company on us?

Kamal Khushlani: Just give us a minute. About 60% to 70% would be below. Naitik: 60% to 70% would be below. So that should see a benefit? Kamal Khushlani: That's realized sale price we are talking about. Naitik: Got it. So we should eventually see some benefit, right, of the rate cut? Rasik Mittal: Yes. We should. Naitik, we had to pass on the benefit as per the government directive. So this will not reflect but going forward, we have some scope for gains in that.

Naitik: Right. So eventually, that demand could -- you could see demand increasing because of passing on. That's what I wanted to understand. Eventually, not next quarter or immediately, but eventually, that should somewhere lead to increased demand?

Kamal Khushlani: Yes, we expect that.

Moderator: The next question comes from the line of Nilesh Doshi from Prospero Tree Asset Management LLP.

Nilesh Doshi: Yes. Sir, my questions are related to the management view about the flattish growth. See, when we are opening a new store and closing down -- even opening a new store at a mall where the footfall are higher than the others and closing down the nonperforming stores, then why there is a guiding about the flattish growth.

Then the company should report the higher growth because we are closing down the nonperforming store and opening a new store at a place which can generate the higher revenue, then there should be the revenue growth rather than the flattish growth. Am I correct, sir?

Kamal Khushlani:

Sure. But this is a time when we are going through that change. And like I said, after the changes that we make, we expect to see the results come in. But in the beginning of this year, we had said that for the next 2 years, we are unable to say what exactly that will be. But next year onwards, we expect to be on a growth -- back on a growth trajectory.

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Nilesh Doshi:

And sir, when you say that there will be a flattish growth, flattish growth to which year when it is -- are you taking the FY '25 as the base year for the flattish growth for the next 2 years or the FY '26 will be the base year because we are implementing the new changes in the FY '26?

Kamal Khushlani:

So FY '26 will be flattish like FY '25. And the year after that, we certainly expect to see growth.

Nilesh Doshi:

So FY '24...

Kamal Khushlani: And we don't want to predict that this is what the growth will be. We want to see what kind of growth is reflected in the -- after the changes that we make.

Nilesh Doshi:

And that's okay. We don't want any prediction or we are doing the best. Sir, but do we have done any studies that we are sitting in the -- because the high footfall mall will have a higher rent cost and other allied cost. So will it be enough to spend that money? Or will it be a growth driver? What it will be exactly, sir?

Kamal Khushlani:

Certainly, with whatever we are doing and communicating the new identity of MUFTI, that will certainly -- we expect that, that certainly changes consumers' perception that rekindles the demand for the brand.

Moderator:

Our next question comes from the line of Apurva from BugleRock.

Apurva:

So my question -- I have 2 questions. One is, can you provide some color on the new stores that we have opened in those high-end malls, right? There are 4 or 5 that we have opened. If you can give some data points around that in terms of traction that we are getting. I mean, I know it's early days, but still if you can throw some light?

Kamal Khushlani:

The signs are very encouraging. And overall, the salience of the brand is improving. And the sales on our website is a reflection of that. And also, these stores have just been opened in the last 45 to 60 days. So it's too early to be saying anything. But it's a store -- if you visit the store, Apurva, you will be able to see when we say that how the brand has been premiumized.

If you visit one of our earlier stores for the previous identity and then visit one of the stores, whether it's Oberoi Sky City Mall or you visit the Phoenix Palladium, Sky Zone, you will be able to tell the difference. And then you will see what kind of changes we have made and whether they are actually being reflected in the stores or not.

Apurva:

Okay. Just related to this, in terms of the quality of the -- I mean, we are always focused on quality, but have we further improved upon the quality of the merchandise? Or I mean, how -- it's just the SKUs that have been rejigged in terms of where the stores are being opened? Just trying to understand?

Kamal Khushlani:

Certainly, we are working on that, but that's a constant endeavor and a work in progress, Apurva. That is something which is constantly on. And when we have been saying that we are looking to premiumize the brand, we are not looking to premiumize the brand in terms of charging more.

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We are looking to premiumize the brand in terms of delivering more in the experience at the final touch point for the consumer. That's what we are looking to do when we say we are premiumizing the brand. But coming back to quality that is constant work in progress.

Apurva:

Okay. And one medium- to long-term question. So I mean we are spending -- we will be increasing our percentage of -- in terms of marketing and sales as a percentage of revenue and the premiumization of stores and things on these lines. So over the next 2, 3 years, we are going to see a change.

So how does it -- I mean, in terms of going ahead, how does it pan out -- I know I don't need a forecast, but in terms of directionally, in terms of margins, the return profile and the leverage on the balance sheet, can you just take us through that a bit? How are you looking at it over the next 3, 4 years maybe?

Kamal Khushlani:

Apurva:

Rasik Mittal:

Apurva:

Kamal Khushlani:

Moderator:

Tanmay:

Kamal Khushlani:

This should take us a couple of years to get this communication through. And after that, certainly, we should look to bounce back. And our margins will -- our EBITDA will remain in the range of 27% to 30% as we've always guided. In a bad time, it could be 27%. In a good time, it could be 30%, maybe 1 percentage point here or there, but nothing is going to change that much. It's a business model which has been tried and tested over the years. And it's just a matter of time before we get back on the growth path.

No, in terms of not growth, maybe -- will there be a leverage on balance sheet, capital structure or your capital allocation decisions going forward? How -- I mean, what would be the cash -- I mean, how much are we planning to invest over the next 2, 3 years, which might be accelerated than the last past 3, 4 years that we would have done, sir, on that, I'm not talking about the growth per se, growth is a result, so that should follow?

So, Apurva, we -- whatever capex or growth plans we have, we should be able to fund that through internal accruals. There should not be any leverage on the balance sheet for that purpose.

Okay. So no leverage and margins should be similar even after the increased spending on advertising and promotions?

As guided, yes.

Our next question comes from the line of Tanmay from RV High Growth Venture.

Yes. Sir, I have a simple question that before 2 to 3 quarters, you were saying that we are preserving -- we are a profitable company, and we want to have our profitability intact. But in the last quarter, you have increased your advertising spend and all. So how it was an all of a sudden decision to just go aggressive in the advertisement than expansion, I would say?

So, Tanmay, we still are a profitable company, albeit we would be making less profit, but we would still be a profitable company. And this reason to make these investments is to rekindle demand and firmness for the brand and bring it back on the growth track and bring it to the same levels of profitability as in the past. These expenditures that we make are investments in the brand. So it's nothing sudden. We continue to remain profitable.

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Tanmay:

It's a valid point, but when I compare you with the certain listed players like Cantabil and all, they are having a growth of 15% to 17% in each quarter in Y-o-Y basis. So even in certain other brands like Rare Rabbit and all, they are reporting that they are having a growth. So why MUFTI is having a deviation from a growth path, I would say. And if you have -- if you could give us some insight about this?

Kamal Khushlani:

See, I would say that depends on the life cycle that the brand is in its journey. Over a period of time, we have seen many ups and downs. We are very confident that we'll bounce back to our levels again.

Tanmay: Sir, I would say as we have our clients who are into your stock and on a -- from a shareholder perspective, it's very discouraging for the stock price to fall down and because of the previous quarter, I would say. So if you could just guide us on the -- what could be seen in the future?

Kamal Khushlani:

What could be?

Tanmay: We could expect of -- in the last year, you were guiding for around double-digit growth, then you came down to single digit and now you came that we have a flattish growth. So as a shareholder perspective, it's very discouraging to see that the growth coming down. And...

Kamal Khushlani:

Sure. We understand that, Tanmay, but this is business. Sometimes you see ups and downs, we were on that growth path, and we realized that for the longer term, there are some changes that we need to make, which would be in the best interest of all stakeholders. So that's what we are doing currently.

And if we were to reduce our advertising expenses, we would be on that track. But we believe in doing business for the longer term. And we are sure and confident in the decisions that we are taking, and we hope to start paying off within the next 1.5 years, as I said.

Tanmay:

One very last question that in the previous con calls, you have guided that you would be expanding into other categories such as women and kids as well. So are you planning to expand in those categories in -- after 1 year or 2 years?

Kamal Khushlani: Tanmay, I think there is some misunderstanding. We have never guided that we would get into women's or kids wear.

Tanmay:

But sir, you have said that you would consider it out?

Kamal Khushlani: No. At some point in future, we may consider it. That is not a guidance at all. Anywhere in the medium term, we don't have in our mind to enter the kids wear or women wear.

Moderator: Our next question comes from the line of Devesh Advani from Reliance General Insurance. The line for the current participant was on hold. We'll move on to our next question.

Our next question comes from the line of Aditya Varma from Synergy.

Aditya Varma: Yes, sir. Actually, most of my questions have already been answered. And I would just like to ask, sir, that the flattish guidance that you have given is still for another 1.5 years. So we can

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expect better results as now once this -- from March and April month, correct, sir? I mean the upwards trajectory should start from that period. That is correct?

Kamal Khushlani:

That's correct, Aditya.

Aditya Varma: Okay. I think most of the questions we have already answered in the previous participants query.

Kamal Khushlani: Yes. However, profitability would still be lower in the forthcoming year because we will be enhancing our expenditures on marketing.

Moderator: Our next question comes from the line of Rajesh Agrawal from Proprietary Advisors.

Rajesh Agrawal: See, what are the early trends you are seeing playing out on the premiumization strategy? Are the AOV, ASPs are higher in the new flagship stores?

Kamal Khushlani:

This season, we have seen a muted demand. So it's a bit too early to predict that, Rajesh, but we are very, very confident. And like I said, if you are in any of the places where we have opened these stores, then please visit one of our earlier stores and this store. And in the physical presence, when you experience the store, you'll be able to see what we are saying, and you'll be able to then judge whether what we are saying is correct or not.

Rajesh Agrawal: Sure, sure, sure. H2, how many new retail identity stores you will have visibility of opening?

Kamal Khushlani:

We are already -- we should be opening about more than 20 stores in this year, by the end of the year, not in the new identity, in the new identity it would be another 4, 5 -- maybe higher single digits. Just come rapidly and they are wild cards, we have to do them immediately. Right now, how many are we making?

Rajesh Agrawal:

There is one humble suggestion.

Kamal Khushlani: 5, we have already opened and 4 or 5 are already in the process.

Rajesh Agrawal: Okay. Okay. My humble suggestion is there. A flagship store is an important development. But company does not file any information on the stock exchange. I will -- to a hotel, a management contract is there. Even signing up the management contract, they file on the stock exchanges regularly. While opening also, while signing also.

Here, what should happen that when you open a flagship store, not an EBO always because flagship store is a new development for you in a new Avatar. So my suggestion will be each and every flagship store once you open, just file it, just file it by way of information to the stock exchange. You have 80,000 shareholders. They have a right to know. They will visit. You are telling me to visit. Definitely, I'm going to visit. But how do others know?

Kamal Khushlani:

Sure, we'll make a note of this.

Moderator:

Our next question comes from the line of Devesh Advani from Reliance General Insurance.

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Devesh Advani:

Yes. Actually, what I wanted to ask is that your working capital days has gone up from -- continues from March '24 onwards. So it has went up to 217. What is the reason for that? And apart from this, what are the temporary disruptions in the supply chain that we are facing from Bangladesh? Is it the only reason for falling in revenues or there is any other reason?

Kamal Khushlani:

So this time, due to the problems that both the countries had among each other and the route was closed down because Bangladesh typically used to get supplied into Kolkata and then from there, the goods used to come. And this time, that route became much longer and it took more than 3 weeks extra for the goods to reach because the only port that they were allowed to ship to was Nhava Sheva. So these are -- this is a temporary hiccup that we faced.

And as far as the working capital days are concerned, naturally, this is -- for us, it's business as usual. We will -- should be able to bring it back down in the range of 180-odd days, 170, 180 days.

And that's just a matter of time because when you have a bad season and the way our business works and our model is that we have advances as deposits from our franchisees and the rest, they make payments every week on the sale basis. So because the sales have been muted this season, naturally, there appears to be a rise in the receivable days.

But fortunately, so far, the company has not had any material write-offs on account of this, and we don't expect that even in the future. We have long-standing relationships with these partners. And during muted times, even with our distributors and our MBO partners, we do support them. And that's why we hold the kind of respect in the relationships with our partners.

Devesh Advani:

As far as the renovation of store is concerned, so how many stores have been renovated in this quarter? And how many new stores have we opened up? And what's our plan for the whole year?

Kamal Khushlani:

So in H1, we have opened 15 new stores and closed 13 old stores. And we intend by the end of the year to close totally about 23 stores out of 13 have already been closed. And we intend to open a similar number of stores by the end of the year. Should be flattish, like I said, for the next couple of years, the store count may not go up.

If we get good opportunities, good stores, of course, it may, but it's not going to go up in a big way. For the next 2 years, we'll focus on consolidation and changing the consumer perception about the brand.

Devesh Advani:

So what is the reason of so much closure of stores...

Kamal Khushlani:

Devesh, your voice is muffled. It's very hard to...

Devesh Advani: Is it now audible?

Kamal Khushlani:

Better.

Devesh Advani:

Yes. So as far as store closing is concerned, so how do we strategize on opening new stores since we are closing down on so many stores. So what is our strategy as far as store opening is concerned? How do we plan in which area? Or how do you plan the store mechanics?

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Kamal Khushlani:

This is a process that has been on year-on-year and will continue to remain, Devesh. What happens is that there are many places where we are missing, which are already important markets where rentals may be high or there may be scarce availability of real estate where we may be absent, and we call these wildcards.

As soon as we get them, whenever we get them, we have to quickly respond and close these stores. However, in the rest of the markets, India is evolving. And typically, stores first in a smaller town, et cetera, the MBOs in that town begin to see a rise in demand from the consumers for national brands.

And then they start stocking us. So typically, we enter MBOs. And as the market becomes conducive for single brand retail, we go on opening EBOs also over there. But this is -- we have enough local intelligence spread all around India, and this is something which is constantly on.

Moderator:

Kamal Khushlani:

Moderator:

As there are no further questions, I now hand the conference over to the management for closing comments.

Thank you. I'd like to thank everyone for being part of this call. We hope we've answered your questions. If you need more information, please feel free to contact us or SGA, our Investor Relations Advisors. Thank you, and have a good day.

Thank you. Ladies and gentlemen, on behalf of Credo Brands Marketing Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

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