Purple Style Labs (NSE:PERNIASPOP) Q2 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to the Q2 and H1 FY 'twenty seven Earnings Conference Call hosted by Purple Style Labs Limited. 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. Please note that this conference is being recorded. I now hand the conference over to mister Abhishek Agarwal, hold time director and chief executive officer from Purple Style Labs Limited. Thank you, and over to you, sir. Hi.

0:46 Good afternoon, everyone, and welcome to our q two and h one FY twenty seven earnings conference call. Along with me, we have SGA, our investor relations advisers. I hope all of you have gone through the investor presentation uploaded on the exchanges and our company website. For all those who are joining for the first time, please refer to slide three on our presentation for a quick overview of our core business, PERNIASPOPUP SHOP, which is one of India's largest and fastest growing multi designer luxury omnichannel platforms, serving customers across domestic and international markets. We have 1,100 plus active designers and two lakh plus products listed on our online platform. We operate 14 stores in 11 cities, including two international stores in London and New York. Next on slide four, you will find a summary of our growth journey since PSL acquired PERNIASPOP OP SHOP in February 2018 when it was primarily an online only platform.

1:40 Moving to slide five. So let's start today's call by understanding what are the key drivers of our business. The luxury consumer base is broadening in India beyond the ultra rich, and there's a shift in spending towards personal consumption. In paddlers, the wedding and occasion wear industry is also getting boost from multiple celebration and events, especially in the high end weddings, and the rising affluence is fueling aspiration for differentiated occasion wear. Further, the Indian designer brands industry is leveraging the high growth of both of these trends in the luxury market. Our industry has seen emergence of hundreds of new designer labels over the last decade, which is compounding aspiration, discovery, and splurging on Indian designer wear. Over the next few slides, let us understand the growth trajectory of each of these three industries in parallel to one another.

2:29 First, let's start with the landscape of India's luxury industry. On slide six, you can see that luxury consumption in India continues to grow across categories, driven by disposable incomes, rising disposable incomes and evolving consumer aspirations. The luxury consumption in India is estimated to touch INR 7.6 lakh crores by 2040, which is approximately USD 8,000,000,000 growing at around 13% CAGR. PERNIASPOP OP SHOP omnichannel platform currently operates in the apparel and accessories category primarily with recent pouring into real jewelry from our flagship stores. Now let's move to slide seven to understand the size of the wedding and occasion wear industry, where luxury segment offers a strong growth opportunity. The luxury wedding and occasion wear industry is expected to reach INR 1.35 lakh crores by 2040 with a higher CAGR versus the overall industry, thereby increasing its share from 6% in 2025 to 15% in 2040.

3:27 PERNIASPOPOP SHOP majorly sells luxury bedding and occasion wear through its large format flagship stores and is one of the largest and fastest growing players in the segment. Moving to slide eight, we have given insights into the top thousand designer brands as an industry, which is our core market. Indian designer wear market has grown very rapidly over the past decade to currently over 10,000 crores and is expected to cross INR 1 lakh crore by 2040. The consumer base for top thousand Indian designers is also expected to grow approximately four times to 1,500,000 by 2040. Riding on these industry tailwinds, PERNIASPOPUP SHOP continues to strengthen its market leader position as a global omnichannel platform for Indian designer brands. We have already grown our market share in the top... In the core top thousand designers market from 2% to 6% between 2020 to 2025 and are targeting INR 2,100 crores GMV by 2030 with more than 8% market share. Our long term target is to achieve INR 20,000 crores GMV with an 18% market share by 2040.

4:33 Now let's move to Slide nine, where we have presented an analysis of how we approach the growth from the angle of customer matrix. The key driver of our long term growth strategy is simultaneous expanding our customer base and increasing our wallet share within the Indian designer wear buyers. As per industry predictions, the the Indian designer wear customer base is expected to grow to one and a half million by 2040. In the same time frame, we are looking to increase the percentage of customers shopping from PERNIASPOPUP shop from 20 in 2025 to 25% by 2030 with a long term target of 40% by 2040. Apart from widening our customer base, we also see a significant potential in increasing average spending of our customers. In the twenty twenty to twenty twenty five growth phase, we had increased our average wallet share from design of their customers from 17% in 2020 to 32% in 2025 and are currently targeting to grow the same by... To to 34% by 2030 and forty five percent by 2040 in the long term.

5:36 Our customer strategy is not limited to just adding more customers, but also build deeper customer relationships, capturing a large share of their overall Indian designer wear spending. Now before we move forward, let us glance through slide 10 to familiarize ourselves with our historical journey through three distinct generations, which was also a part of our q one presentation. The first generation from FY '19 to '21 was about laying the foundation. The second generation from '22 to '24 was about scaling the footprint and deepening category in luxury women's wear and men's wear segment. In the third generation after FY '24, we consciously trimmed the long tail both of both designers and customers and sharpened our focus only on luxury. Post FY '25, we have actively changed growth gears and opened large format stores in all the major markets like Mumbai, Delhi, and New York. Moving to slide 11.

6:29 Let's discuss the most important pillar of our growth plan, the geographical expansion matrix. Our geographical strategy combines deeper penetration in established markets, expansion into near domestic markets, and build a strong international presence. In the long term, supported by a wide network of large format stores in all the major cities and the online platform, we believe in scaling Indian designer wear industry to a global customer base. Over the longer term, international markets along with Mumbai and Delhi are expected to do the heavy lifting for growth of the overall industry. By 2040, we are targeting a GMV of 4,000 crores from Mumbai, 6,000 crores from Delhi, 3,000 crores from rest of India, 3,000 crores from USA, and 4,000 crores from rest of the world. Now let's focus on the near term 2030 plan and understand the road map for the same on slide 12.

7:18 We are targeting a total GMV of INR 2,100 crores by FY thirty, with Mumbai and Delhi being the primary growth drivers during this phase. From Mumbai, we are targeting GMV of INR 500 crore by driving higher throughput from our recently opened Linking Road and Kalagura Port large format stores. In Delhi, we plan to establish a new 100 k generation four store, which is expected to give us a significant job. Once this new flagship store opens, then along with current large format stores, we are targeting Delhi's contribution to be 700 crores towards our overall f five thirty target of 2,100 crores GMV. For the rest of India, which includes Hyderabad, Ahmedabad, Bangalore, Kolkata, Surat, Chennai, and Indore, and the India online business, we are targeting a GMV of INR 450 crores by 2030.

8:06 To support this growth, we plan to upgrade our existing gen two stores in Bangalore, Kolkata, and Ahmedabad to gen three era stores. Internationally, USA, especially New York, remains an important growth opportunity with a GMV target of INR 270 crores by 2030. Our recently established physical presence in New York is expected to help us deepen customer engagement, strengthen international brand visibility, and drive higher online purchases from the rest of US as well. For the rest of the world, we are targeting a GMV of INR 180 crores by 2030. This market primarily includes The UK omnichannel business where we soon plan to upgrade our existing London store from gen one to gen three era to increase the wallet share from large UK customer base. Apart from this, we plan to keep finding our online reach across Middle East, Australia, Canada, Southeast Asia, and other international markets.

9:00 As a company, our focus will be to approach each of these five markets in parallel with strategies, as mentioned, about to achieve the INR 2,100 pro GMV target by FY thirty as shown in slide 12. Slide 13 to 22, they're already a part of our q one presentation. So I would... I've just reiterated it here to glance through the historical geographical expansion, customer growth, and category mix of PERNIASPOPUP SHOP over the last eight years since its acquisition. Now FY twenty seven is the ninth year of growth, which is riding on the seats shown in FY '26 in the form of four large format stores in Mumbai, Delhi, and New York. Now let's refer to slide 23 to analyze our six month FY twenty seven performance. So PPS GMV grew to INR 397 crores compared to INR 310 crores in six months of FY twenty six. During the same period, average order value has also improved from INR... To INR 84 k from INR 69 k, reflecting our continued shift towards higher value products. As of September 2026, inventory levels stood at INR 196 crores compared to INR $20.08 crores in September 2025 despite the addition of New York and Lincoln Road, Mumbai stores in March 2026. This also reflects in reduction of net working capital to INR 59 crores from INR 84 crores over the same period.

10:23 To understand the growth from geographical perspective, let's see the Slide 24. In India, Mumbai and Delhi remain our largest key markets and growth drivers during six months of FY '27, contributing GMV of INR 905 crores and INR 85 crores, respectively. On the international front, USA GMV contribution increased to INR 64 crores in six months of FY 'twenty seven versus INR 42 crores in six months of FY 'twenty six, attributable to the recent New York store. Moving to our financial performance on Slide 25. For six months of FY 'twenty seven, the revenue from operations stood at INR $2.62 crores compared to INR $2.14 crores in six months of 'twenty six. Gross profit increased to INR 103 crores from INR 83 crores in the corresponding period last year, while gross profit margin improved to 39% from 38% over the same period.

11:16 EBITDA from six months, FY '27, stood at a loss of approximately INR 7 crores compared to a loss of INR 5 crores in six months of FY '26. While we have made progress in strengthening gross profitability, our focus remains on improving throughput and driving better operating leverage going forward. We have also made progress on the cash flow and working capital front. Operating cash outflow reduced to INR 13 crores in H1 of FY 'twenty seven compared to an outflow of INR 50 crores in H1 of FY 'twenty six. Free cash free cash flow also improved to INR 19 crores from INR 72 crores in the corresponding period last year. Slide twenty six and twenty seven have a detailed breakdown of the p and l statement for a deeper analysis of the operating cost structure of the company and to understand the operating leverage better of our business model.

12:06 Slide 29 to 31 have the p and l, balance sheet, and cash flow statement for the last six quarters for your reference. Thank you. We are open now... We open now the floor for questions. Thank you. We will now begin the question and answer session. 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 comes from the line of Siddant Lothia with Sanchi Fund. First of all, congratulations on the recovery in EBITDA.

13:10 One quick question. At a mature level in a store, what kind of operating EBITDA are we looking at? So for us, it is not a function of a percentage. So if you, let's say, take the current cost structure as an example, So you would notice that over q one and q two, the fixed cost structures have not changed much. So what we have done, we have taken... Given you the split of other expenses as well in terms of marketing, in terms of logistics, and other expenses. And on the next slide where you have the EBITDA to pad bridge, they have also split the depreciation of our view of assets. And so if you see these costs, they are pretty much fixed in nature unless we are doing an expansion.

13:57 As of now, we have not done any expansion over the last six months in terms of cost structure. That's the senior flat cost structure. So what tends to happen, let's say, Mumbai stores do a certain number in the first financial year, which is f y twenty seven. Now whatever sales you deliver growth over the next three years without opening anything else, all of it technically throws from GP down to the EBITDA. So hence, it's not a function of percentage. It's more of a function of absolute number, which varies from store to store depending on what stage of breakeven they are. Yeah. Yeah. So that was my question. On a store level, what kind of EBITDA can be because store level. If you ask that it is... So... See, that's the reason we don't do store level analysis. We have a store. The store change gear in the window of three to five years. So the cost structure also changes when that change happens.

14:46 Unlike a lot of other stores... Yeah. There's nothing like an average is what I'm trying to say. You will have to look at So you'll look at the number as a whole itself? Yes. So let's say if you today look at the p and l, on a p and l basis, the cost structure is 100 crores. If you look at that cash basis, it is about 15 crores left. So if you see the depreciation of audio of assets and you see that as 45. Whereas if you see the cash spend, that's about $30.31. So that is the gap. So now let's say if my cash spend on a curtain... On a certain quarter is 85 to 90 crores, I'm taking a range, which means once the GP crosses 90 crores in a certain quarter, everything else comes down to your free cash flow in the business. Correct. Understood. Yes. Alright. Thank you. Thank you. Participants, please press star and one to ask a question.

15:38 The next question comes from the line of Devanshu Bansal with MK Global Financial Services. Go ahead. Hi, Abhishek. Thanks for the opportunity and congratulations on the good gross margin performance in the quarter. Abhishek, I wanted to understand you have provided a very long term opportunity as well as how you see the business sort of shaping up. I wanted to check till FY 'thirty in the PPT, we have mentioned only one daily store to sort of come up and few new generation stores in some of the Tier two cities. So wanted to confirm, is this the only growth expansion that you are planning, which will help you to meet this INR 2,100 crore of GMV?

16:30 Is this the right entrance to sort of go ahead with? Yes. That's correct, Devanshu. So our broader idea is that we don't plan quarterly. We typically would make a three to five year plan. So to make it transparent, we have given our investors how do we look at the March 30 and what are the things being done towards it. So if you see in Mumbai and USA, the expansion is already done. So we are looking at a higher throughput over the next three years. Over the rest of the world, the only upgrade is a London store because it's a 2019 store for us. So it's high time we basically upgrade it. And on the rest of India, we are not anticipating any changes to Hyderabad, Indore, Chennai, and Surat, and they're looking only for upgrading in Ahmedabad, Kolkata, and Bangalore.

17:19 Just a small follow-up, Abhishek, if you could help us better understand in these one large store in Delhi and three upgrades, what is the ballpark number that you are sort of looking at in terms of investment over the next four years? So, I mean, if you see collectively right now, primarily goes into the the CapEx and the deposit because our networking capital is just a cycle of investing into the inventory first. But as soon as the advances from customer and table build up, it gets knocked off. So from that perspective, you know, currently, we would have about two and a half lives where for that involved. And for that, the total investment of deposit and CapEx is about 150 crores, combining the PPE that you see on our financials along with the deposits.

18:12 So I think if you assume a similar ratio for the 100 k, it could give a fair bit of an idea. And as far as Andhra, Pulkharth, and Bangalore is concerned, they are each about 10 to 15,000 square foot in its current state except Bangalore, which is the smallest store. So we're looking to upgrade each of them to about 10 to 20,000 range and move to that large format size of 20,000 and above eventually. So I don't think that is gonna be a major expense, but I think proportionately you can add another 30,000 square foot to that one lakh to calculate the total. So ballpark, let's say if we make our whole area one and a half times, so if we currently operate at about 150, we're looking at about 75 to 80 crores of total. Okay. Okay.

19:00 So the $75.80 crores over the next eighteen months as we are still in the process of finalizing location, signing, and building that. Got it. So this $75.80 crore of incremental investment can help you sort of move from 700 GMV to 2,100. So so, yeah, so that's very interesting. From the existing throughput, as we have mentioned, the incremental would come from... Yeah. That's correct. No. Got it. Secondly, Abhishek, first half has been we have sort of used some cash from the balance sheet. If you would help us better understand how do you foresee the cash flow in H2 and overall in full year FY 'twenty seven, that would be very helpful.

19:51 That's my last question. Thank you. Sure. So I think from a cash perspective, we need to understand the fact that IT was pretty much towards the end of h two. So the cash deployment has now started in terms of managing the balance sheet. I think if you see the cost spent over h two in terms of your cash, you'll notice that the interest cost combined for all of h one was about 40 crores. And then the rest was for operating losses in the business. But usually in our cycle, h two is higher, which you can see from the last year as well, where out of the 560 crores, 215 crores revenue was in h one. Whereas in h two, that number was collectively 343.

20:44 Now assuming that the business is in similar trajectory, we don't expect operational cash losses in h two. And with better efficient of the debt and the money that we have raised from equity, I think the interest cost will also significantly come down. So I'm hoping that the cash flow would be better in s two. To what quantum, I think we'll let it unfold. Fair enough. Just last... One last one, if I may. Sir, the recent media reports are sort of indicating that at least from a designer way consumption perspective, there are two headwinds side. One is the festive shift and the second is lower travel to India for destination weddings.

21:31 So if you could just throw some light as in are you also sort of witnessing these headwinds in the business? And any initial thoughts as in how festive has sort of picked up in October will be very helpful. Thank you so much. Sure. So, usually, Devanshu, a lot of these are minor headwinds from our lens because we have a global presence. And going by the same logic as you said, in case the travel is lesser, that means our new house tour will... Presence will help to continue, you know, gathering more market share from US consumers. But one way for us to look at the business from a near term on that by '30. So if you see...

22:17 If the industry projects, let's say, the designer brands industry to be 25,000 crores by '30 and growing at about 20, 21%, whereas we are looking to grow 30%. Our broader sense is that because of any headwinds, if the market grows at 15%, that means we just have to grow our market share by 15% to just manage the same 30%. So which essentially means if that market stays at 20,000 crores in 2030, we can still achieve a 2,100 crores. It will just mean that our market share has to be 10 and a half percent. And if you see the historical growth of market share, are much rapid in growing the market share. So the dependency is not alone on the overall market. But I think if there is any such headwind due to geopolitical issues, our new store will compensate for that.

23:07 Fair enough. Thanks, obviously. A reminder to all participants, you may press star and want to ask a quest The next question comes from the line of Saurabh Ganodia with Smiths. Please go ahead. Yeah. Hi. Good afternoon, and thank you for the opportunity. Abhishek, I have one or two questions. I'll just one moment, ask them. First is we have seen companies such as Ethos delivering healthy growth, reflecting the increasing appetite for premium and luxury consumption in India. With the business model being different, do you believe Purple Style is benefiting from a similar trend of rising luxury spending among affluent Indian consumer? And how do you compare the addressable market, customer profile, and growth trends for luxury fashion versus premium watcher?

23:58 Do you see similar opportunity for organized luxury retail to expand in India over the next five years, like, also done? So, Saurabh, if you actually see our first three slides on the industry, all those three industries are different in terms of what they sell, who they cater to, but they have a significant overlap. So the first industry, which is the luxury industry consumption slide, which we have shown you, I think watches would form a part of that, which is the consumption story of India in luxury. But we also operate, you know, in the wedding and occasion wear space where luxury forms... The luxury segment forms a part, but, like, it's a subset of the first one. Actual co market is designer wear, which kind of draws, you know, small pools of consumption from each of these. So from our perspective, given that we would have a common set of customer base, I don't think why our growth should be anything different. The only additional benefit that we enjoy is that unlike the other company you mentioned, they're also a global distributor for Indian brand, giving us a significant market share even in the international waters.

25:10 So I think if we are able to leverage our growth equally good as India in the other countries, then at an absolute level, we should grow much faster even though it might be the same percentage. Okay. Thank you for the answer. My second question is given the nature of the luxury fashion retail and the inventory requirement in the business, how one should look at the working capital intensity going forward as the business scale up? Do you expect operating cash flow to improve further? What is your medium term target for the cash conversion cycle? So we have been very clear about it in the first q one presentation itself. That is why we have put the net working capital as a important metric on our summary slide of the six month presentation. We are not a very capital intensive business when it comes to inventory, given the fact that a significant portion of our business comes from back order in which the customer typically pays 100% upfront, average delivery time ranging from as low as two weeks to as high as twelve weeks.

26:10 And then I pay the designers hours after a certain window once the products are delivered. So what that does, it already reduces our networking capital. So if you see the September numbers, my inventory base is 196 crores, but my networking capital is only 60 crores. So I think so long as we're able to reduce this networking capital going forward, it would actually amplify our capital efficiency in this business versus any other platform. Okay. And, Abhishek, if you can just give us some understanding on the gross profit margin trend going forward. And second is when one should expect meaningful operating leverage to kick in? What is the key levers for EBITDA margin improvement over the next two to three Sure. So if you look at slide 25, we have placed six quarters...

27:03 Four quarters of last year and two quarters of the current financial year side by side. So you can generally see over the quarters how the gross profit moves. Both on the q one and q two, we have improved on the gross profit margins, which as a a trend we hope should continue for the rest of the year, which means on an overall f y twenty seven basis, we should be on a higher gross margin versus f y twenty six, which should deliver the first take of operating leverage. Now as I explained to the previous question that we have a fixed cost structure. Because we have a fixed cost structure in the business, technically, the profitability comes once you cross that threshold. So let's say today, if my annual expenses are in the range of $363.70 crore on a cash basis, once I cross $363.70 crores of GP, that means we become profitable from there. So this year, our target, we should be to come as close to that number. But, hopefully, in f y twenty eight, we should be able to bridge that gap.

28:02 Okay. And any guidance would you like to share for this year and next year in terms of revenue and EBITDA margins? So I think we'll stick to our FY thirty guidance at a GMV basis. As I said, since we don't really operate on a a q on q site, the idea is we try to draw maximum throughput as early as possible from whatever stores we have opened, but it's very difficult to predict how it will happen at a quarterly level. So I think we'll stick to the 30 GMV target that we have already given. Understood. Thank you for all these elaborate answers. Thank you, sir. The next question comes from the line of Nirav Rajiv with Aditya Birla Sun Life Insurance. Please go ahead. Yeah. So thank you for this opportunity.

28:50 I understand you're not giving any guidance, but any sense of all the, like, initial trends of the festive and the marriage season is going on, especially in the couple of Mumbai stores that are recently opened? What is the kind of footfall that is happening? And how is the ramp up happening for these couple of stores? Restoration given that we are now in the key season... Wedding season in the and the festive season that is upon us. Yeah. Sure. So if you see, again, the quarterly comparison that they're given in slide 24, so you can see that in Mumbai itself, out of the 205 crore last year, we had done about 77 crores in h one, and we had done the rest 120 great crores in h two. So assuming we take the similar forty sixty ratio, if we have done about 105 crores in the first, so we are looking at a two fifty plus for Mumbai just on the full year basis.

29:49 And that's just basis, you know, how typically our cycle works on the four quarters. In terms of revenue, this translates to a higher number because a lot of advances which are there for q two usually booked for delivery in q three. That's why if you refer to the slide 15, you will notice that the revenue from operations typically take a sharp jump in q three versus the q So from a wedding season trend perspective, I think the growth of about 30% this year is already reflected in the GMV. So that as a base growth should happen over the whole year as well. As far as the the revenue and GP is concerned, as I said, typically, are moving to a better GP for this year. So I would assume that it could be higher than FY twenty six. How much higher, I think, we'll have to wait the two quarters to finish... To pin that number.

30:45 But we're definitely improving on the GP versus last year. Sure. Sure. That's great to know. And and on the US tour, how is the wrap up? We have seen, like, the... On a small base, it is it is doing well in the first half. So what is the kind of footfall? What is the kind of trajectory that is expected going forward? I mean, how is that ramping up? I mean, see, honestly, unlike Mumbai and Delhi, which are hubs we operate, it's easier, you know, to manage. New York was a new learning curve. So March, April being the initial months of beginning from there to September, the growth has been high. I think this quarter, we would get a better clarity in terms of how much our US business will overall increase.

31:30 And this is that, you know, we can keep growing. So if you see as an FY thirty target, the idea is that wherever we end up this year, whether it's 150, 60, 40, that's something we'll get to know when FY twenty seven ends. But from there, to target a two seventy over the three years without any cost structure, major change in cost structure is not a very high up. So that's the reason why we are not worried about what happens in the next one or two quarters in The US. But clearly, you can see from the numbers that the growth is coming in terms of, you know, as the source learning and the employees are learning better in terms of what we do. Sure. Thank you so much. The next question comes from the line of Rohit Mehra with ESK Securities.

32:18 Please go ahead. Hi, sir. Good afternoon, and thank you for the opportunity. Hope I'm audible. Yes, sir. Please go ahead. Yeah. So my first question is in the investor presentation on slide 12, the target is, let's say, INR 2,100 crore of GMV by FY thirty, and it includes around 100 k square feet stores in Delhi and mostly in the large format stores in Ahmedabad, Kolkata, and Bangalore, like tier one cities, and an upgrade in London store. Correct? So when are the start with this targets to start and when are we commencing this... In the West towards this? And what are the expected CapEx and lease commitments and how are they funded?

33:07 So I think, to the ones who we had already explained how we can estimate the CapEx and deposit. As we said, we ballpark... We have about two and a half lakhs square foot across all our stores. And the PPE towards that, that number is already there in our financials. So I think this is that what we are estimating is that if currently we have 150 crore are deployed towards deposit and CapEx, and these stores, if they add another 130,140 square foot per hour, so we would assume that about 80 to $90.80 crores of investment would go towards these projects over the next eighteen months. To the first question in terms of timeline, since we typically run just one store in a city except for Mumbai, Delhi, and these are usually planned for three, five years, We take our time till we narrow down on the right property. But, yes, as we keep signing something or the other on our regular quarterly calls, we'll keep you updated. So nothing is signed as of now, but, yes, all of these five are in progress in terms of exploring locations and finalizing the terms wherever we like a property.

34:13 So as for future quarterly calls, we'll keep you posted over the next six quarters as something gets signed. Got it, sir. Got it. Thank you. And my second question is in q one, you said six months of new data will be showed in US number. And in h one, the GMV was around 64 crore against 42 crores. So how much of extra 22 crores came from the store and how much from online? If you would provide the bifurcation? So Rohit, generally, as a practice, whenever we look at a geography, we look at the omnichannel business. That's for US and UK both. The reason for that is it's very difficult to identify as to what is attributing the state. So let's say, you know, historically, if you see on slide 13, where we have given eight years history of US. So if you see the last three, four years before the tariffs came into play for FY '26, the average was about $100,120 gross of sales. Now that was all online.

35:15 From that, a significant portion would also come from the New York price state area and nearby. Now once you have the store there, for a lot of those purchases, store might be a better experience, so people tend to migrate. So that's the reason we would suggest we look at US as a wholesome number and not really differentiate how much is coming from the store and how much is coming from online. Got it. So so in that case, could you please help me with the store's AOV? Was that near to $1,500? Or Yeah. That's correct. That's correct. So we had already told us in q one as well. Our US is doing pretty much in line with how UK stores operate, and we are doing somewhere on the north of $1,500 AOE at the store. Whereas online are typically...

36:02 We got about $500. So it's similar to, like, other locations about three times of our online business. Got it. And given you are on a short list, what store level is it? Would you like you to renew and renegotiate or rent or update? So we are working on that, Roy. I think by the time we do the q three call, we'll have an answer towards that. The idea of doing a short lease earlier was because of new geography. We didn't want to tie ourselves to a long term lease. But given that we have some idea on the cost structure, some idea on the growth potential and the overall market, I think we'll take the conscious call of how to work on New York after June 27. I think in q three call, we'll have an answer. Got you. Got you. So that's it from my side, and and all the best, and happy Diwali.

36:51 Thank you. Happy Diwali, sir. The next question comes from the line of Shantanu Basu with Smiths. Please go ahead. Well, thanks for the opportunity. First of all, I have few questions. First question is with regard to your h two. So can you please tell me about how h two is looking and where do you see growth coming in h two? Second question is with regard to your real jewelry. You have added real jewelry, started selling real jewelry. Yeah. So how do you see this category going forward near term and long term... Near term and midterm, maybe? And then with regard to your London store, the new London store, what is the CapEx and the timeline for the new London store?

37:43 Alright. So let's start with the the first question in terms of performance. So what we have done is given an idea in terms of how the last four quarters were there for the last financial year. So if you see out of... Overall 720 crore of gross sale, we had done about 310 in the h one, and we had done about 411 in h two. So even if you assume a basic growth of similar nature, then you are looking at a number which would be similar 30% higher for h two as well versus the last number. This is all that we can predict sitting here in terms of where the numbers are gonna land basis on historical trajectory.

38:28 The only difference this year is we had a bit of delayed in terms of wedding shopping start, which for others typically Diwali minus three months. So we are hoping that that delayed performance of q two should reflect in q three and q four. The second question on London School. Now it's part of expansion plan that we have for FY 2030. The timeline is something which will be dependent on what kind of opportunities are we getting and what kind of rent. We are not looking at a very, very large store in London, to be honest. And in terms of the CapEx and the deposit, they are not very different from what ratio we have at an overall basis. So I think the same logic that I have given on to other people who ask the same question, We can estimate this is an $82.85 crores of investment over the next three years on these five projects collectively.

39:28 If there's any deviation or changes to this, we'll keep you guys posted. But they are gonna happen over eighteen months till March 28. This $8.85 crore of investment? That's total deposit plus CapEx combined for all the five locations combined. In which Delhi 100 k square foot is the major driver. Okay. And what about the June anything? We have started Yeah. I'm sure you're asking question. Yeah. So see, I mean, what we have done, if you go to slide 18, currently, all accessories, jewelry, kids wear, home decor lie as a single line item because none of them are very large, you know, for us to give a bifurcation.

40:16 Also, is something that we analyze more on a, you know, two to three year journey basis. So, yes, we have started selling real jewelry from some of our stores. F I twenty seven is better than f I twenty six without putting our number to it because it's the first full year. And these large format stores have also become a destination for, you know, wedding shopping. So we are able to upsell the products to a lot of our luxury consumers. But whenever real jewelry becomes a sizable number for us, you will see a line item in the category table. But how is it doing, basically? See, for us, real jewelry doesn't occupy a lot of space. It definitely takes the average order value higher. They're not buying inventory in real jewelry. So I think the answer to how it is doing cannot be bad or good is what I'm saying because the base is too small.

41:08 But all I'm saying is real jewelry ends up becoming 100 crores on a two thousand one hundred quarter f I thirty, then we'll definitely show you a line item how it is. Okay. Once it becomes 100 crores. Yeah. I mean, it has to be a sizable number in terms of percentage of the sales. Like, for example, when we have shown you the geographical growth, we merged rest of India for five cities which were smaller. As the company grows further, if you see the top five geographies that we have done, we will emerge Hyderabad, Andhraabad into the rest of India. That's the whole idea of presenting the bifurcation. Okay. And how are designers who have their own stores doing in areas that you have opened stores, large stores, like Mumbai, you have opened in Fort And Lincoln Road?

41:59 How do other designers fare in that area? No. I mean, see, there are different reasons why I would go to a solo designer store and a multi designer store. The assumption is that a customer on day one knows what they want to shop. Multi designer store usually offer the first browsing experience to a customer where they can compare multiple products together and decide what they want to purchase. If you see our customer matrix, we are never claiming that we are looking to sell 100% wallet share to a customer. So typically, all those products which a customer is happy to decide at a multi designer store together and make the purchase from us would come to us. Anything which is a much higher price point or it's a product that, you know, they would want to prefer to buy from the designer directly, it goes to them. So the way we look at the market share is if you take Bombay as a geography since you mentioned Bombay stores.

42:51 Out of the overall market of, let's say, 10,000 crores plus that I mentioned, Bombay would have a certain number. So we always look at, okay, how much of market share we can grab of Bombay. So for, let's say, theoretical purpose of Bombay is a 2,000 crore market. Out of it, some pocket sales from Kalagura and South Bombay, some from Juban, and some would be fragmented. We are looking at, you know, grabbing maximum market share from that. So if we are able to touch a 500 crore and by then the Bombay market is 2,500 or 3,000 crore or 4,000 crore, our market share share will be a byproduct of that. And the same number was 120 crores in FY '25. So clearly, we have increased the market share by disproportionate number in a very short window of one and half, two years. Okay.

43:37 That is what is most important for us. Okay. Thank you. Thank you, sir. Thank you. The next question comes from the line of Keval Shah with Jetere Investment. Please go ahead. Hi, Am I audible? Yes, sir. Please go ahead. Sir, I'm trying to understand, when I think about, obviously, after first of all, congratulations on the revenue growth and the EBITDA growth. I'm below the EBITDA line item. When I see the lease cost, I'm just trying to understand what the annual lease cost is of your current footprint because obviously there's a difference between the P and L and the cash flow statement. So is the correct thing to do just annualize the cash flow statement, your quarterly run rate? The only addition you will have to do was The US lease was paid upfront last year. So you will have to just add 3,000,000 of US rent to that.

44:30 So about 30 crores. So if you add the cash flows that we have given on the rent, that comes to about 120 crores. Add 30 to it. I'm just rounding off 3,000,000 to 30. Yeah. It's a lot of $1.50. That is the right number. Whereas if you see us playing on the p and l, it's about 45 into four, that's one eighty. So that's 30 crore of cash gap. So our cash equivalents are 30 crore lower. Yeah. That's why the q three FY '26 was 50 crores because you are paying The US fees upfront, effectively. Both in q three and q four, we had paid part rent of US upfront. And that was paid till June 27 till the end of the lease. Okay. Perfect. That makes sense. And if I... And in terms of, like, the annual rent escalations, are those pre... Prenegotiated, or are those Yeah. Even for law school that's prenegotiated, generally, an average number would be somewhere on 5% plus minus range.

45:24 Some of them get escalated at 15% after three years. Some of them have an annual escalation. But you can generally assume a 5% number for annual. Okay. That makes sense. And my last question, sir, you have a very good reason for looking at the at the... At citywide growth as as opposed to storewide growth because, obviously, your store matrix has changed a lot. But from next year, when you start looking at SSSG, given that the store footprint will be bit more efficient. Right? If I'm not changing anything in Mumbai, SSG, you can look at a store GNIASPOPIT. Yeah. So that's the whole idea why we have given you such a detailed bifurcation. Right? Because you can look at Hyderabad and see, okay. Fine. What did Hyderabad grow from x y z? The whole idea is we want to give you a roll line item which makes sense on an overall sales basis. So Mumbai will make sense. Delhi will make sense.

46:14 But maybe in Indore, if I give you a line item, it won't make sense. Too smaller number. Okay. That makes a lot of sense. Thank you, sir. Thank you. The next question comes from the line of with with Sanchi Svante Fund. Please go ahead. Just a quick question. Wanted to understand how should we look at revenue conversion from the GMV that we are, you know, targeting currently. Sure. So if you go to our historical journey, we have given you the financial statements for twenty three to '26, and we have also given you the GMV. So if you see the number, it has been ranging from 80% plus minus 3%.

47:00 So I think a similar range is good enough. The reason why, you know, you cannot we are at 70, and each one is 66. So is this going to be the trend? Always always look at that at an annual basis because you have to constantly adjust the advance from customer to look at that number. Sure. Understood. Yeah. So I think they're only looking at annual will make sense. So if you are, let's say, pinning an x number for the GMV for this year and for next year, then you can just take an 80% plus minus 3% range to where it will land. Okay. Sure. Thank you. Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Mr. Abhishek Agarwal for the closing remarks.

47:48 So to conclude, the progress made during the first half of FY 'twenty seven reflects our continued effort towards generating higher throughput in our business to showcase operating leverage going forward. As we look ahead, we'll further strengthen our omnichannel cap... Capabilities to capitalize on the fast growing demand for Indian designer wear across domestic and international markets. Our endeavor is to create long term value for all our stakeholders while building on the opportunities ahead. Thank you. Thank you, everybody, for attending the call. Thank you, sir. Ladies and gentlemen, on behalf of Purple Style Labs Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.