Aditya Vision Ltd — Q4 FY26

Aditya Vision Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=lNirj49TmOY Published: 5 days ago

0:01 1 second Ladies and gentlemen, good day and welcome to Adit Vision Limited Q4 and FI26 on conference call hosted by Access 0:09 9 seconds Capital. As a reminder, all participant line will be the listen only mode and there will be an opportunity for you to ask question after the presentation 0:17 17 seconds conclude. Should you need assistant during the conference call, please signal an operator by pressing star then zero on your touchstone phone. 0:26 26 seconds Please note that this this call has been recorded. I now hand the conference over to Miss Danchi Kandar from Access 0:33 33 seconds Capital. Thank you and over to you ma'am. Thank you. 0:37 37 seconds Good evening everyone and thank you for joining us today for our division's Q4 and 26 earnings call. We are glad to have the senior management team with us 0:45 45 seconds including Mr. Yosha SMA chairman and management director and Miss Yoshin Burton hold director. I will now invite the management to share their opening 0:54 54 seconds remarks after which we will move on to the Q&A session. Over to you. Thank you Dwan Singh. 1:01 1 minute, 1 second Good evening ladies and gentlemen and a warm welcome to all of you. Hope you have had you have gone through our 1:08 1 minute, 8 seconds investor presentation and if not I strongly recommend you to go through it. 1:15 1 minute, 15 seconds As we speak today our about our Q4 and fully year FY26 performance. I would like to take a moment to step back and 1:24 1 minute, 24 seconds reflect on the journey that has brought us here. AIT started as a small single store with a simple vision to make 1:32 1 minute, 32 seconds quality consumer durable, accessible, affordable and trustworthy for customers in underserved markets. 1:41 1 minute, 41 seconds Today as we close FY26 with 27 stores across four states, that journey has scaled meaningfully 1:50 1 minute, 50 seconds over the last 27 years. That vision of Aditya has guided every decision we have taken. Whether it was entering into new 1:58 1 minute, 58 seconds towns, building relationships with customers or staying disciplined in how we grow. I can say that our vision has 2:05 2 minutes, 5 seconds not only scaled, it has become bolder and resilient. 2:10 2 minutes, 10 seconds FY26 in many ways not only tested that vision but also turned to be a landmark year for the for our business model. 2:19 2 minutes, 19 seconds What is encouraging for us is that despite this year having a biggest summer since our inception, we delivered 2:27 2 minutes, 27 seconds approximately 18% revenue growth year over year and 11% at growth year over 2:34 2 minutes, 34 seconds year. At the same time, we maintained gross margins at around 15.6% and IA margins at 8.5%. 2:44 2 minutes, 44 seconds reflecting our continued focus on profitable growth. 2:49 2 minutes, 49 seconds I'm delighted to share that in Q4 we delivered a strong revenue growth of 28% accompanied by an impressive PAT growth of 36% yearonear. 3:02 3 minutes, 2 seconds The last financial year liberated our company from the cackles of seasonal dependent model heavily dependent on Q1 3:11 3 minutes, 11 seconds and more so freed us from the from a seasonal blockade of being dependent on H1 for growth. I'm truly delighted to 3:19 3 minutes, 19 seconds give the comfort to our investors stakeholders that your company is now an all weather allseason company. Despite 3:28 3 minutes, 28 seconds Q1 U FY26 and H1 FY26 delivering only marginal growth of 6% and 11% 3:36 3 minutes, 36 seconds respectively, we still concluded the year with topline growth of 18% which is quite respectable. 3:44 3 minutes, 44 seconds The year began with an unusually weak summer season that extended into late Q2 impacting demand of our core pooling category during the first half. 3:55 3 minutes, 55 seconds Prolonged rains and delays in implementation of GST 2.0 further slowed the recovery trajectory in Q2. 4:05 4 minutes, 5 seconds But what stands out is not the challenge is how the business responded. 4:10 4 minutes, 10 seconds Historically Q1 and Q2 together contributed nearly 55 to 60% of our annual sales. Despite losing these 4:18 4 minutes, 18 seconds lowhanging sales, we did extremely well in Q3 FY26 with a topline growth of 28%. 4:26 4 minutes, 26 seconds Riven by festive season demand. 4:29 4 minutes, 29 seconds The momentum further accelerated in Q4 FY26 where the company recorded another robust topline growth of 28%. 4:38 4 minutes, 38 seconds As a result, we see that the second half is now becoming as important as the first half and our business is gradually 4:46 4 minutes, 46 seconds transitioning towards a more balanced full year full financial year model. This performance 4:54 4 minutes, 54 seconds was further supported by our strategy of stocking inventory at the right time which enabled us to fully capture demand 5:02 5 minutes, 2 seconds and deliver an exceptionally strong quarter. On the expansion front from this year marks a defining phase in our 5:10 5 minutes, 10 seconds journey. We have added 102 stores in this in the last three years which is 5:16 5 minutes, 16 seconds almost equal to 105 stores where we built in the previous 23 to 24 years. 5:25 5 minutes, 25 seconds We have entered earlier than planned with three stores marking our foray into fourth targeted state. This is an 5:32 5 minutes, 32 seconds important step in our in our expansion journey as we continue to replicate our model culture and customer trust across 5:40 5 minutes, 40 seconds new ge geographies in a cal cal calibrated manner. 5:46 5 minutes, 46 seconds As I speak another neighboring state board held for our future expansion which was earlier withheld due to political uncertainty. 5:55 5 minutes, 55 seconds We are now present with 118 stores in Bihar across 38 districts. 33 in Jakartan covering 22 out of 24 6:04 6 minutes, 4 seconds districts, 53 in Uttar Pradesh covering 30 out of 75 districts and three stores in Chhattisgarh covering two out of 33 6:12 6 minutes, 12 seconds districts. We plan to add more stores annually with a strong focus on scaling our presence in Uttar Pradesh and 6:20 6 minutes, 20 seconds Chhattisgarh while continuing to deepen our leadership across Bihar and Jar. We are also on track to enter Madhya 6:28 6 minutes, 28 seconds Pradesh this financial year as we expand into new geographies in a calibrated manner. 6:35 6 minutes, 35 seconds We happy we'll be happy to know that we have onboarded fun party as our brand ambassador further strengthening our 6:42 6 minutes, 42 seconds connect and brand recall across our core market. 6:48 6 minutes, 48 seconds Our inventory levels at the end of Q4 remains higher at approximately 840 cr. 6:54 6 minutes, 54 seconds But this is a conscious and strategic decision. We acted early in anticipation of supply side uncertainties highlighted 7:02 7 minutes, 2 seconds by OEMs particularly around gas shortages due to the sudden Gulf War. We also leveraged price changes driven by 7:11 7 minutes, 11 seconds DE norms divisions where product prices have increased by around 8 to 10% to 7:18 7 minutes, 18 seconds secure inventory at relatively better costs and to remain competitive in the market. Importantly, with clear signals 7:26 7 minutes, 26 seconds of the strong summer ahead, we ensure that we are fully stocked to meet demand without disruption and at the same time remain competitive. 7:36 7 minutes, 36 seconds When I look at where we stand today, what gives me confidence is that we are no longer just expanding. We are 7:43 7 minutes, 43 seconds evolving with resilience and more most importantly our vision is no longer limited to where and how we started. It 7:50 7 minutes, 50 seconds is now on a cat motor of the huge geographies laden with above average population with ever rising disposable 7:58 7 minutes, 58 seconds incomes. With this approach backed by discipline execution, strong regional understanding and a customer first 8:05 8 minutes, 5 seconds mindset, we believe we are well positioned to deliver consistent and sustainable growth over medium to long term. 8:18 8 minutes, 18 seconds With with that I would now like to hand over the floor to Mrs. Yosha to take you through the financial highlight. M yos. 8:29 8 minutes, 29 seconds Thank you sir. Good evening ladies and gentlemen. We are pleased to present the financial performance for Q4 FY26 and the full year FY26. 8:40 8 minutes, 40 seconds For the full year FY26 revenue grew by 18% reaching 2,672 crores. Gross margins stood at 15.6%. 8:51 8 minutes, 51 seconds IIDA reached 228 crores registering a growth of 12% with IIDA margins at 8.5%. 8:59 8 minutes, 59 seconds Profit before tax stood at 157 crores with CBT margins at 5.9%. 9:07 9 minutes, 7 seconds PAT stood at 117 crores growing by 11% Y. 9:13 9 minutes, 13 seconds Same store sales growth for FY26 stood at 8%. 9:19 9 minutes, 19 seconds For Q4 FY26, revenue increased by 28% 9:24 9 minutes, 24 seconds YI reaching 625 cr. Gross margin stood at 16%. 9:32 9 minutes, 32 seconds Ibida for the quarter was 51 cr with IIDA margin at 8.1%. 9:38 9 minutes, 38 seconds Profit before tax stood at 31 crores with PBT margin at 4.9%. 9:45 9 minutes, 45 seconds PAD grew by 36% YI to 24 22 cr. Our 9:51 9 minutes, 51 seconds store count stood at 207 stores as of March 31st 2026. 9:58 9 minutes, 58 seconds Same store sales growth for this quarter stood at 18%. 10:03 10 minutes, 3 seconds In Q4 FY26, Bihar remained our largest revenue com contributor at 74% 10:11 10 minutes, 11 seconds followed by UP at 14% and Jaran at 12%. 10:17 10 minutes, 17 seconds In FY26, Bihar contributed to remain our largest market contributing 75% of 10:25 10 minutes, 25 seconds revenues followed by UP at 13% and Jarhan at 12%. 10:31 10 minutes, 31 seconds This reflects the strength of our core markets while our newer regions continue to scale up steadily. We can now open the floor for questions. 10:42 10 minutes, 42 seconds Thank you so much ma'am. Ladies and gentlemen, we will now open. 10:47 10 minutes, 47 seconds We'll now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish 10:55 10 minutes, 55 seconds to remove yourself from the question, you may press star and two. Participants are requested to use handsets only while asking a question. 11:04 11 minutes, 4 seconds Ladies and gentlemen, we'll wait for a moment while the question to assembles. 11:17 11 minutes, 17 seconds Our first question come from the line of Adja from Invest. Please go ahead. 11:25 11 minutes, 25 seconds Um, hi, good evening sir. Uh my first question is on inventory for room ACs that we are carrying. Uh do you think 11:33 11 minutes, 33 seconds that the inventory that we'll be carrying will be significantly higher uh than what general competitors will be carrying and to that extent uh it will 11:41 11 minutes, 41 seconds be a big competitive advantage at least in the next quarter. Uh should that also bode well for margins and boost our margins uh from from what is usually the case in first quarter? 11:54 11 minutes, 54 seconds Thank you for asking me. uh first of all we we cannot comment on inventories of our other competitors but as far as we 12:04 12 minutes, 4 seconds are concerned we are adequately strong and uh and that is as per our strategy but I'll not like to diverge 12:13 12 minutes, 13 seconds u we it's our strategy to build up uh inventory as far as cooling products are concerned and uh definitely one thing I 12:21 12 minutes, 21 seconds can say that uh we are uh we'll be carrying inventory as per our need and as per our historical figures. 12:34 12 minutes, 34 seconds Sure. So given that this year is very unusual one wherein we are seeing multiple price hikes as we are kind of progressing through the season uh do you 12:42 12 minutes, 42 seconds think a scenario like this uh helps us a lot in terms of margins or is it that uh uh uh it's it's almost the same scenario 12:50 12 minutes, 50 seconds for all retailers and to that extent the entire benefit gets passed on to to the end consumer. What are you really thinking in the marketplace? I I will tell you actually the whole 12:59 12 minutes, 59 seconds business model is like that even if they are hiking prices OEMs we since we are carrying our inventory this is the 13:08 13 minutes, 8 seconds reason we carry lot of inventory because we know that price changes can come and for smaller dealers they may be having 13:15 13 minutes, 15 seconds those inventories of earlier pricing. So we want to remain competitive all the time and so our this buildup of 13:24 13 minutes, 24 seconds inventory helps us in being competitive all the time and which is very important and very necessary also for our 13:31 13 minutes, 31 seconds business. Uh so uh this competitiveness remains there. So it's not necessary that whenever there is a hike in price 13:40 13 minutes, 40 seconds that comes as a profit to us rather we we we watch the market how it reacts then only 13:47 13 minutes, 47 seconds we take a call so it's not dependent of our profitability is not very much dependent on the price of OEMs 13:58 13 minutes, 58 seconds understood that's very clear so my second question is uh that given that almost 50% of our stores are 3 years or 14:06 14 minutes, 6 seconds less than 3 years old uh and that proportion of new store edition will gradually be coming down. Do you think 14:14 14 minutes, 14 seconds that that will be a bit of a margin lever as those stores start generating high revenues become profitable uh or or 14:22 14 minutes, 22 seconds improve their profitability even the company level profitability can have uh uh some some benefit out of it and I'm 14:30 14 minutes, 30 seconds specifically asking because we in in UP we would have spent a fair bit of money that will start getting absorbed over 14:37 14 minutes, 37 seconds larger revenues so how you thinking about margins from a slightly longerterm perspective you are absolutely Right. In fact, more 14:45 14 minutes, 45 seconds we are our these stores which you referred to in fact whenever our bottom 14:53 14 minutes, 53 seconds is now getting heavy in the sense that more and more uh matured stores will be there and uh fewer stores as you said 15:01 15 minutes, 1 second that by in percentage terms fewer stores will be added as a percentage. So this is going this is why in fact in my 15:09 15 minutes, 9 seconds opening speech also I told you that in the very near and near term we'll be in fact uh 15:18 15 minutes, 18 seconds definitely having better control over our operating expenses. 15:25 15 minutes, 25 seconds Sure sir. And sir, anything that you can share in terms of uh uh how throughput per store of a mature store um and 15:34 15 minutes, 34 seconds margins of a mature store uh may differ from a store that let's say is 2 years old. 15:40 15 minutes, 40 seconds Yes, of course it matters but it's not very I'll say similar to each other. All the 15:49 15 minutes, 49 seconds stores are having different uh metrics as you know like all territories are slightly different. So but I can tell 15:58 15 minutes, 58 seconds you one thing that after 3 years we at least we take these stores as quite matured. However, as you know one one of the one full last year was washed out. 16:10 16 minutes, 10 seconds So in fact uh this whole arithmetic has gone little but we are very confident 16:17 16 minutes, 17 seconds that once we in this this come with this current financial year once we are in a normal season then we are going to all 16:25 16 minutes, 25 seconds these banks are going to catch up to the previous expectations 16:33 16 minutes, 33 seconds understood sir that's very helpful thank you so much thank Our 16:41 16 minutes, 41 seconds next question come from the line of Yesh Sanatalia from Adel Wise public. Please go ahead. 16:47 16 minutes, 47 seconds Hi, thank you team for taking my question and congratulations on good setup numbers. So my first question is I 16:55 16 minutes, 55 seconds want to double click on gross mar of 100 bits negative y. Is it more or less because of change in product mix? 17:05 17 minutes, 5 seconds And if yes, can you help me understand what has changed over there? Why we have seen 50% growth in small appliances and why the hit on the large appliances? 17:16 17 minutes, 16 seconds I can tell you that uh yes it's very simple. uh uh in fact gross margin has come down only because that we we we 17:25 17 minutes, 25 seconds failed to uh capitalize on our seasonal product like uh air conditioners, air coolers and refrigerators during first 17:34 17 minutes, 34 seconds H1. So obviously those we always feel that these are the appliances are the are having better margins but there 17:43 17 minutes, 43 seconds because of the season seasonality on because of bad season which we en encountered last last financial year so 17:52 17 minutes, 52 seconds margins will not naturally will come will be depressed. Secondly, say when the share of these products came down, the share of mobility etc. 18:05 18 minutes, 5 seconds went up and even what you said that the small appliances maybe and as you know mobility say ASP was also gradually 18:14 18 minutes, 14 seconds rising throughout the year. So more and more volume was coming through these products which was having lesser margin. 18:24 18 minutes, 24 seconds But I still I think that despite being a bad year as far as uh seasonal 18:31 18 minutes, 31 seconds uh productivity was concerned, we have done fairly well in containing the margin to these levels. 18:39 18 minutes, 39 seconds Uh understood but sir my question was more related specifically to Q4 like Q1 Q2 we understand because of unseasonal 18:48 18 minutes, 48 seconds rain and okay I I agree with you actually it has come down just because that in Q4 18:56 18 minutes, 56 seconds ASP of mobiles went up by 20 to 20%. 19:03 19 minutes, 3 seconds And uh so the share of a volume of that Muslim mobility was far more 20% more 19:11 19 minutes, 11 seconds than what we were encountering in year before. So this was the reason that and that carries low margin. So this was the reason for the Q4. 19:21 19 minutes, 21 seconds Laptop again laptop also speed went up by 10 8 to 10%. So both these products 19:28 19 minutes, 28 seconds which which constitutes more than 25% of our sales they have impacted it 19:36 19 minutes, 36 seconds because of price it has impacted our mar margin. 19:43 19 minutes, 43 seconds Got it. Got it. Very clear. If you if you want more clarification, I can give you that in a basket where you have 19:52 19 minutes, 52 seconds products of lower margin and these these have grown because of sudden spurt in their prices then obviously entire margin of the basket will come down. 20:04 20 minutes, 4 seconds Got it. Got it. And and can you please help me with 50? We saw 50% growth in other extension. Majority of this will 20:13 20 minutes, 13 seconds be promotional because of the expansion in UP. So can you help me what was the exceptional or one of advertisement 20:22 20 minutes, 22 seconds spend we have done in UP to normalize as I told as I told you that we onboarded our brand ambassador also 20:30 20 minutes, 30 seconds during this period uh as well as we were again again I'm telling you that we are entering new geographies and more more 20:38 20 minutes, 38 seconds matured and uh in fact uh evolved geographies of Uttar Pradesh 20:46 20 minutes, 46 seconds western in Uttar Pradesh. So the where we are now trying to invest also and we are doing quite well there and uh only 20:54 20 minutes, 54 seconds because of our efforts and uh I don't think uh uh uh and as you grow as you 21:03 21 minutes, 3 seconds grow and as you expand the geographies your all cost freight cost every cost all cost they go up and so this is so is 21:12 21 minutes, 12 seconds this elevated miscellaneous everything goes up your many or your 18% 21:20 21 minutes, 20 seconds volume has come. So your C like credit card commission is going to go up. Your DBD is going to go up. So so there are several expenses which are going to go up with your sales. 21:33 21 minutes, 33 seconds Got it. Got it. And like majority of our expansion is right now happening in UP and going ahead also assuming it is 21:41 21 minutes, 41 seconds going to be very similar. So can you give some color how the unit economics of some mature stores which are now like 21:48 21 minutes, 48 seconds 20 30 stores has been present in UP for last two years or more. What is the performance? 21:56 21 minutes, 56 seconds Yes, I got your point. Yes, I have just told you one thing that one of one year has in fact not responded to our mother 22:04 22 minutes, 4 seconds nor in normal uh way as I told you last year. So even if they are two years older we will consider it we consider it 22:12 22 minutes, 12 seconds as one year older only because they have encountered let us say Q1 or Q2 a similar Q1 and Q2 22:21 22 minutes, 21 seconds which has always come to the company. So that way I'll say that they have been doing well and 22:28 22 minutes, 28 seconds they will continue to do they will do very well once we settle down. 22:36 22 minutes, 36 seconds Got it. Thanks. Thanks a lot sir for answering my questions. Best of luck for the interview. Thank you. Thank you. Yes. Thank you. 22:44 22 minutes, 44 seconds Our next question come from the line of Anerudi from ICA securities. Please go ahead. 22:50 22 minutes, 50 seconds Yeah. Uh thanks for the opportunity and uh uh congrats for great set of numbers. 22:57 22 minutes, 57 seconds Uh sir uh two questions uh if you can indicate what will be the normalized margins for Bihar as a state because 23:05 23 minutes, 5 seconds that's a completely mature state for us and a UP or Chhattisgarh as an NP may dilute the margins but what is the uh 23:14 23 minutes, 14 seconds margin that a mature state like uh Bihar is generating and uh by what time frame 23:22 23 minutes, 22 seconds do we see UP also reaching to similar margins mean maybe two 3 years down the line. 23:29 23 minutes, 29 seconds I can comment on your second part of the question the first part because we usually do not diverge because of as you 23:36 23 minutes, 36 seconds know the competition and all that we do not diverge statewise 23:43 23 minutes, 43 seconds margin. Uh I hope you are getting my point Anerud. Yeah sure. 23:50 23 minutes, 50 seconds So but I can only say that yes we are looking forward to even UP or other states where we are expanding we'll 23:59 23 minutes, 59 seconds definitely it will take some time but we are going to definitely we're very conscious of our margins as you have must have seen right through so many 24:08 24 minutes, 8 seconds years and uh we are trying we will try always hard but not at the cost of our sales. So our dominant position will be 24:17 24 minutes, 17 seconds there at the same time we gradually will increase our margin. So this is the way we have come in come up in Bihar also 24:26 24 minutes, 26 seconds and same will be the strategy going forward in uh UP or 24:33 24 minutes, 33 seconds sorry if so or this is this will be our strategy. So rather than asking me the 24:40 24 minutes, 40 seconds margin for a particular state I'll say that we have to make make other states catch 24:48 24 minutes, 48 seconds up with that behalf and for that we all the time we are working 24:55 24 minutes, 55 seconds okay sure sir got it the second question if I take the interest cost and uh uh divide it by average debt so we get a 25:04 25 minutes, 4 seconds rate of interest at almost uh 12.83 8 13%. So that's a pretty high interest rate. So one this includes in finance 25:14 25 minutes, 14 seconds cost me on lease also. So this is not your bank interest. Our bank interest 25:21 25 minutes, 21 seconds again I cannot diverge you for certain banks banks do not like us to diverge the rate 25:31 25 minutes, 31 seconds of ROIs. uh but it is what you are looking towards uh this finance cost 25:37 25 minutes, 37 seconds includes uh uh fi uh interest on lease finance also 25:44 25 minutes, 44 seconds so that when you when you will get the full um annual report then you can find that uh uh separately. 25:54 25 minutes, 54 seconds Okay sure sir sure understood understood. So third and last question uh any outlook on the uh real estate or 26:01 26 minutes, 1 second rental inflation because post uh uh IT uh slowdown or some of the issues in IT 26:09 26 minutes, 9 seconds sector uh due to AI we are hearing about uh uh some slowdown in real estate markets in uh places like Pune, 26:16 26 minutes, 16 seconds Bengaluru, Hyderabad etc. But uh I don't know is there having any derivative impact on uh the real estate market in 26:25 26 minutes, 25 seconds uh uh Bihar Jakart or No as as you know they are having 26:32 26 minutes, 32 seconds hardly having few so it has not impacted neither BR or nor 26:42 26 minutes, 42 seconds impacted it has not come down but maybe let's see what is in store inuture future. 26:51 26 minutes, 51 seconds Okay. Sure sir. Uh absolutely. Last question. Uh uh is there any uh plans to implement AI in the operations because 26:59 26 minutes, 59 seconds we keep hearing about other retailers also uh investing uh in terms of AI for demand generation reaching out to 27:07 27 minutes, 7 seconds customers and uh multiple other u uh in a way initiatives. Uh so so any any any plans on uh that? Yeah. Thank you. 27:18 27 minutes, 18 seconds I mean actually we are we are always open to new new ideas and always exploring these things AI and other 27:26 27 minutes, 26 seconds things but it's not that that we go with the crowd we are we always explore and we will like to see the benefits with 27:35 27 minutes, 35 seconds the cost we are going to everything will be taken into account what benefit we are going to get then only agree will take a decision the management will take 27:43 27 minutes, 43 seconds a decision okay sure sir Uh many thanks. 27:49 27 minutes, 49 seconds Thank you. Thank you. 27:54 27 minutes, 54 seconds Our next question come from the line of Baba Baba Gandhi from Bajage Alternate Investment Management Limited. Please go ahead. Yeah. Hi, thanks for the opportunity. 28:03 28 minutes, 3 seconds Just wanted to understand if there's any unsold inventory left. Can we return that back to the OEMs and how's the policy usually over there? 28:12 28 minutes, 12 seconds No actually we have been telling in so many conferences and phone calls actually we 28:21 28 minutes, 21 seconds do not have to return those inventories to manufacturer. Usually manufacturers they don't prefer taking back their 28:28 28 minutes, 28 seconds inventory rather they will they help us in liquidating that inventory. So if if there is any unsold inventory left with 28:35 28 minutes, 35 seconds us they it is their own onus is on them to get it liquidated as quickly as possible then only we go for new 28:43 28 minutes, 43 seconds buildings. So it is always whims are in pressure as as far as once inventories are concerned. 28:51 28 minutes, 51 seconds Okay. Okay. Got it. And sir would you like to guide for the store expansion targets for FI 27 and 28? 28:59 28 minutes, 59 seconds uh we have been expanding over 30 by over 30 stores every year since last I 29:06 29 minutes, 6 seconds think three four five years and we don't we don't give a guidance because we are always ahead of the guidance we remain 29:14 29 minutes, 14 seconds always ahead of the guidance but you can safely assume what we when somebody actually ask will ask us how many stores 29:24 29 minutes, 24 seconds you want to open then we only say the figure of 25 stores however we have been delivering much much more than what we 29:31 29 minutes, 31 seconds have been guiding and uh maybe and we are as we told we just don't do not uh 29:40 29 minutes, 40 seconds believe in expanding anywhere or anyhow it's not our 29:48 29 minutes, 48 seconds in fact our model we want to expand in a very calibrated in a cluster approach 29:55 29 minutes, 55 seconds manner where we want we try to capture the entire our state. So got it. This will be our got it sir. 30:04 30 minutes, 4 seconds Yeah. So just one last thing on the AIA margin. If you're expanding in newer geographies, the OPEX will tend to be much higher. So will it weigh on the 30:13 30 minutes, 13 seconds overall AITA margins as we expand into newer geographies Chhattisgarh and all those regions 30:23 30 minutes, 23 seconds Madhya Pradesh and Chhattisgarh is the next uh target. But then again try to understand what I said that now that 30:31 30 minutes, 31 seconds more of most of more of the most of our stores will be over 3 years old. So in fact we'll be bottom heavy as far as 30:40 30 minutes, 40 seconds matured stores are concerned. So newer stores will be very few as far as in percent in percentage terms of the 30:48 30 minutes, 48 seconds overall entire store count. So it is quite we can safely assume that going forward 30:57 30 minutes, 57 seconds our opex will not increase that it will be consumed with our overall expenses. 31:06 31 minutes, 6 seconds Got it. So out of the 30 35 stores that we target how much will be in the new states if you can just provide some numbers on that front. 31:15 31 minutes, 15 seconds We usually we want to go to new state and try to on a creeping cluster basis we want to 31:23 31 minutes, 23 seconds capture the entire state but so but we do not uh 31:30 31 minutes, 30 seconds we just simply we not stop our expansion there wherever we get the opportunity where wherever we see new opportunity we 31:39 31 minutes, 39 seconds go there. So it's not like that that we'll only only expanding this year in Jarkand or Madhya Pradesh. UP is a big state where we have to do lot of things. 31:51 31 minutes, 51 seconds As I told you in the earning call that our neighboring state has also now political uncertainties are over. So 31:58 31 minutes, 58 seconds it's it's a good place for us to um go and start uh uh expanding. 32:04 32 minutes, 4 seconds Got it. Thank you so much. That's it from my end. Thank you so much. Okay, thank you. Thank you. 32:12 32 minutes, 12 seconds Our next question comes from the line of Manoj Gori from EQ securities. Please go ahead. Yeah, thanks for the opportunity sir. 32:21 32 minutes, 21 seconds First of all, congratulations for strong recovery after the weak start of FY26. 32:28 32 minutes, 28 seconds Uh I have two questions. So one if we look at if I'm uh if I understood correctly contribution 32:37 32 minutes, 37 seconds is around 14% last year if I'm right we have worked 32:45 32 minutes, 45 seconds I'm sorry to interrupt you sir but your voice is break you please repeat your question and be 32:52 32 minutes, 52 seconds very clear go ahead yeah so my my point was if we Look at 33:00 33 minutes the current year. We have opened more stores into Uttar Pradesh as compared to other geographies and the revenue 33:07 33 minutes, 7 seconds contribution has come down from 14% to 13% during FI26. 33:13 33 minutes, 13 seconds Anything to read here because ideally more store openings should result into more contribution from UP markets. 33:22 33 minutes, 22 seconds Uh you have got two questions. So this is your first question, right? 33:27 33 minutes, 27 seconds Yeah. And second, the second question is we have uh obviously the operating cash flows have 33:34 33 minutes, 34 seconds been positive. How should we see in the coming years whether we'll continue to stay OCF positive and probably uh day by day our balance sheet will strengthen. 33:46 33 minutes, 46 seconds So any highlight uh any inputs over there will be appreciated. Uh I'll tell you the first question sir. 33:54 33 minutes, 54 seconds uh why it has come down is a different thing but as if you will go through our uh store opening uh in schedule then 34:03 34 minutes, 3 seconds you'll find that mo most of the stores have opened in last last month or February or March of the uh last 34:12 34 minutes, 12 seconds financial year in UP most of the stores so you are you are taking you are taking for the full year but full year they 34:20 34 minutes, 20 seconds have not worked most of the stores have worked very less less than folia sure 34:27 34 minutes, 27 seconds but but still but still contribution from up is 14% and not 13% as you are saying 34:36 34 minutes, 36 seconds okay it is 14% yeah sir but but still I would like to tell you that most of the stores are very new and 34:45 34 minutes, 45 seconds in fact they have not run even 3 months of the full financial year so as you taking into account that what 34:52 34 minutes, 52 seconds contribution they have made. You cannot strictly go by the numbers unless and until one full year goes by. 35:00 35 minutes Sure. 35:00 35 minutes And and second, as far as balance sheet and cash flow is concerned. Yes. This this time our cash flow is quite 35:08 35 minutes, 8 seconds healthy. uh but we'll continue to invest the cash flow and uh as as I've been telling that uh we don't uh require at 35:17 35 minutes, 17 seconds the moment we do not require any equity our internal acral 35:35 35 minutes, 35 seconds can hear me So we'll we'll continue to strengthen our balance sheet. No doubt about it and 35:44 35 minutes, 44 seconds uh most of the money will be invested in opening new stores and acquiring inventories at the right time. uh and uh 35:51 35 minutes, 51 seconds our internal equival uh borrowings short-term borrowing which is working capital borrowing that will 36:00 36 minutes be enough for us to continue for at least we do not foresee raising any capital in this financial 36:07 36 minutes, 7 seconds year definitely not not in near term so lastly just to continue on this with 36:16 36 minutes, 16 seconds better efficiencies and better scales from the new stores your OCF to epida 36:23 36 minutes, 23 seconds should ideally keep improving from year on on Y basis right is that understanding correct no I can't understand your whole 36:31 36 minutes, 31 seconds question so what what I meant was operating cash flow as a percentage of AIDA 36:39 36 minutes, 39 seconds from year on should keep improving with higher scale from the new newly opened stores so should that be assumed that it 36:47 36 minutes, 47 seconds will keep improving from here No, that you should not take it as a 36:54 36 minutes, 54 seconds benchmark because it operating cash flow will definitely depend on the how we how 37:01 37 minutes, 1 second we get our inventories built, how we take advantage of OEM's 37:10 37 minutes, 10 seconds and how do we manage our working capital that will be very key to cash flow. So 37:18 37 minutes, 18 seconds we won't like to comment on that. It will depend on betterment for the it will always depend on the betterment of the company finance. 37:25 37 minutes, 25 seconds Sure. Sure sir. Got it. So lastly if you can throw some light how things are progressing in April. Sorry if I am uh 37:33 37 minutes, 33 seconds making you repeat this how things are shaping up in April uh and probably how things are progressing in May. If you 37:40 37 minutes, 40 seconds can highlight over that. U April has been very robust for us and uh May is 37:47 37 minutes, 47 seconds slightly colder at uh in the initial uh period but we are expecting very soon that it is going to become a normal summer season. 37:59 37 minutes, 59 seconds Sure sir. Thank you and wish you all the best for future quarters and years to come. Thank you manage. Thank you. 38:08 38 minutes, 8 seconds Our next question comes from the line of Vik Basina from Onage Network Capital Limited. Please go ahead. 38:17 38 minutes, 17 seconds Um good evening sir and congratulations on good set of numbers. Um sir uh can you 38:24 38 minutes, 24 seconds just quantify as to uh suppose for example around more than 50% of our stores would be mature now and the 38:33 38 minutes, 33 seconds balance would would not be so mature. So uh how much margin do the mature store enjoy and how much do the unmature 38:42 38 minutes, 42 seconds stores enjoy versus how many stores are there which are still yet to come profitable. 38:51 38 minutes, 51 seconds Uh we have we have been given guidance that most of our stores they get they are they get recover by 90 between 9 to 38:59 38 minutes, 59 seconds 12 months from their opening. uh and uh it's very again it will not be proper 39:06 39 minutes, 6 seconds for me to give you the guidance or rather margins for mature stores and things which are m it is a it is a 39:15 39 minutes, 15 seconds evolving process waiting you try to understand it it's not one of one thing 39:21 39 minutes, 21 seconds has stabilized even those branches which have matured still lot of lot of things have to come still are 39:31 39 minutes, 31 seconds still to Similarly for every fors which are not that mature even there in 39:39 39 minutes, 39 seconds so many geographies some some stores are doing still doing very well some stores 39:46 39 minutes, 46 seconds are no normal nor in growing in normal way. So these are all when you are talking about more than 200 stores then 39:55 39 minutes, 55 seconds it is all you cannot give a bifurcation of uh let us say margins what what mature store is earning and what a 40:03 40 minutes, 3 seconds nonmature store is earning. It all depends of how crowded that market is how your place is in that town. These 40:12 40 minutes, 12 seconds are all important thing in this type of uh this format of business. 40:18 40 minutes, 18 seconds Okay sir. Um and sir one last thing is that uh can you can you speak louder please? 40:26 40 minutes, 26 seconds Yes yes yes and sir one last thing is that uh when can we expect margins to 40:33 40 minutes, 33 seconds reach back to 9% or level is there any guidance on that? 40:40 40 minutes, 40 seconds U I I cannot give you a guidance on that but our endeavor we always give a guidance of between 8 to 10%. So 9 will 40:49 40 minutes, 49 seconds 9% will be the mean factor of our margin and we strive to be at that type of 40:57 40 minutes, 57 seconds margin but again as I told you we cannot compromise in certain sales and we have to have those sales as well. So it is 41:05 41 minutes, 5 seconds all control growth but still we can give you a fairly good guidance of 8 to 10% of margin. 41:16 41 minutes, 16 seconds Okay sir. Uh it uh that's it for myself. Thank you sir. 41:25 41 minutes, 25 seconds Thank you ladies and gentlemen. Due to the time constraint that was the last question for today I now hand the conference over to the management for 41:33 41 minutes, 33 seconds the closing remarks. Thank you and over to you team. 41:38 41 minutes, 38 seconds Thank you Dani Dhani. Thank you Danti and all people who are on the call. Uh, 41:46 41 minutes, 46 seconds thank you very much. See you soon again and take care of you. Thank you very much. Bye-bye. 41:54 41 minutes, 54 seconds Thank you so much, sir. Ladies and gentlemen, on behalf of Access Capital, that concludes this conference. Thank you for joining us. And you may now disconnect your lungs.