Q1 26/27

Aug 1, 2026

Summary

Revenue grew 11% YoY to INR 2,046 crore, while EBITDA rose 14% and margin expanded 50 bps. Growth was broad-based, with emerging businesses up 19%; management plans over 300 gross store additions and expects 3%–4% cost inflation in Q2–Q3, largely offset by efficiencies.

Ladies and gentlemen, good day, and welcome to the first quarter earnings conference call of Aditya Birla Lifestyle Brands 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. Should you need assistance during this conference call, please signal an operator by pressing * then 0 on your touchtone phone. Please note that this conference is being recorded. The call will begin with a brief discussion by the company's management on the Q1 FY27 performance, followed by a question and answer session. We have with us today Mr. Ashish Dikshit, Managing Director, ABLBL, Mr. Dharmendra Lodha, CFO, ABLBL. I want to thank the management team on behalf of all the participants for taking valuable time to be with us. I must remind you that today's discussion may include certain forward-looking statements and must be viewed, therefore, in conjunction with the risks that the company faces. Please restrict your questions to the quarter performance and to strategic questions only. Housekeeping questions can be dealt separately with the IR team. With this, I now hand the conference over to Mr. Dharmendra Lodha. Thank you, and over to you, sir. Thank you. Good afternoon, everyone. Thank you for joining us today. I would like to welcome you all to the Quarter 1 FY27 earnings call for Aditya Birla Lifestyle Brands Limited. As we reflect on the quarter, domestic demand conditions remain broadly consistent with the trends witnessed in quarters, despite continued global macroeconomic uncertainty. Consumer traction remains healthy and well distributed across categories and channels. Occasion wear experienced a modest moderation, primarily due to the Adhik Maas, which temporarily impacted demand during peak wedding periods. Against this backdrop, our business delivered our third consecutive quarter of double-digit growth, driven by healthy performance across brands and channels. Importantly, this growth was accompanied by continued improvement in profitability and margin expansion during the quarter. Now moving to the Quarter 1 performance of our business. ABLBL revenue grew 11% YOY to INR 2,046 crores. Within segment, Lifestyle Brands grew 10% YOY, with revenue at INR 1,725 crores, whereas emerging business grew at 19% versus last year to INR 332 crores. Within channels, retails continue to perform strongly, delivering 10% growth during the quarter, supported by healthy like-to-like growth of 8%, extending its sustained growth momentum for seven consecutive quarters. E-commerce continued to build on the strong momentum established in quarterly last year, delivering robust growth of 20% during the quarter. While wholesale channel grew only 4% this quarter, underlying secondary growth was early double digits, reflecting an overall strong performance across all the channels. Consolidated EBITDA increased by 14% YOY to INR 327 crores compared to INR 286 crores in the corresponding quarter last year, while EBITDA margin expanded by 50 bps to 16%. PAT grew 21% YOY to INR 29 crores. During the quarter, we opened more than 65 new stores across our portfolio. At the end of the quarter, our retail footprint stood at 3,362 stores, spanning nearly five million sq ft across more than 800 cities and towns. The expansion momentum is expected to continue more aggressively, supported by a healthy pipeline across key markets and catchment areas. We are confident to achieve our targeted expansion of more than 300 stores during this fiscal year. Our Lifestyle Brands business delivered a strong performance during the quarter, with revenue growing 10% YOY to INR 1,725 crores. EBITDA stood at INR 319 crores, translating into an EBITDA margin of 18.5% and an expansion of approximately 40 bps over the corresponding quarter last year. Retail continued its consistent performance, supported by healthy like-to-like growth of 7% across an extensive store network of almost 3,000 plus stores. Our small town network continued to perform strongly, delivering double-digit growth for the fifth consecutive quarter. E-commerce also maintained strong momentum led by company's own digital platform, which recorded a growth of over 50% during the quarter. This strong performance was supported by a broader occasion-led assortment, channel-specific offerings, and disciplined go-to-market execution across both stores and digital channels. Turning to our emerging business portfolio comprising Reebok, Van Heusen Innerwear, and American Eagle, the business delivered 19% YOY growth, supported by healthy performance across brands. Performance remained healthy across channels, with retail like-to-like growth of 11% and e-commerce growth of over 30%. Profitability also improved meaningfully, with EBITDA margin expanding by 240 bps YOY to 4.3% during the quarter. The portfolio retail network has now crossed 400 stores, supported by continued expansion across brands, with Reebok leading new store additions and the overall network footprint. In conclusion, the quarter reinforces our confidence in the underlying strength of our business and the resilience of our portfolio. While the external environment remains dynamic, our diversified brand and channel mix, disciplined execution, and continued focus on driving efficiency position us well to navigate near-term fluidity in the market. Cost pressures remained manageable during the quarter, with limited impact on performance. We will continue to respond through disciplined sourcing, prudent management of operating expenses, and appropriate business actions wherever required to maintain financial discipline. As we look ahead, our priorities remain clear in terms of strengthening the ABLBL business model to deliver the desired financial outcome, sustainable digit growth, high margin expansion, and continued cash generation through sharp focus on execution. We are now open to questions. Thank you. Thank you. We will now begin with the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Archana Menon with Morgan Stanley. Please go ahead. Hi. Thanks for the opportunity, and congratulations for the double-digit top-line growth. My first question was on the Lifestyle Brands business. On the wholesale side, could you help us understand what is the reason for the divergence between primary and secondary sales this quarter, and how should we be thinking about that going ahead? Hi, Archana. This is Ashish Dikshit. I think the primary difference was slight marginal delay in the festive period this time, which pushes a lot of primary billing into the second quarter. It's a shift of 10, 15 days. When you look at quarter 2, you will find the quarter 1 plus quarter 2 in as strong a place as rest of the channels. That's why we mentioned the secondary continues to remain strong. You'll see it even out between Q1 and Q2. Okay. Understood. Also, on the cost side, what is the kind of inflation that you are seeing for your portfolio right now, and has any price hike been taken? Also, how should we be expecting margins to shape up in the coming quarters? Archana, as far as first quarter is concerned, there's been marginal to no cost pressure because most of this was committed much earlier. So we haven't seen any part of that or a very small part of it. For the second half of the year, and particularly between Q2 and Q3, we expect between 3% to 4% cost increase. This is a function of both raw material prices, higher logistics cost, in some cases, higher labor cost also due to minimum wage impact. Overall impact that we have assessed at this point of time ranges between 3% to 4%. We expect a major part of it to come through productivity and the rest through cost optimization. So we don't feel a material change in margin on account of this. Understood. Also, just two bookkeeping questions from my side. Would it be possible to break down the 19% growth for emerging businesses by brand? What would be your overall marketing expense as a percentage of revenue this quarter and in the base quarter? The brand-wise revenue we don't reveal, you know, Archana. To give you a comfort, the two main businesses, which is Reebok and innerwear, are closer to the overall high double-digit number. American Eagle is slightly lower on that. On marketing expenditure, it's slightly lower than last year because last year we had invested in IPL. This year we have moved primarily to digital advertising, but still about 3%-4% of sales. About 3.5% in this quarter. Thank you so much, Ashish. I'll get back in the queue. Thank you. The next question comes from the line of Videesha Sheth with Ambit Capital. Please go ahead. Hi. My first question was if you can talk about the consumption landscape in the month of July. Have you seen the broader trends sustain or seen them improve in context of 1Q being impacted to some extent from other months? I don't see a dramatic shift. Other than the seasonality factors which happens, there is EOSS period which happens in July, and that therefore is difficult to figure out underlying demand. I would say the broader trajectory that you've seen in Q4 last year pretty much. Sure. In case of the small town store network, this is the second quarter wherein you all delivered double-digit LTL. What is driving the same? If you could help us out with the overall revenue contribution or store presence salience of the small store format. We have, of our network, more than 500 stores in small towns. As you have correctly noted, for almost a year plus, we are finding much stronger growth in smaller town network. A part of it is execution, but I would also say a part of it is these markets have recovered from and we are finding it I am sorry to interrupt, sir. There is a lot of disturbance at your end, and you are not audible. Vidisha Sheth, please stay connected. Sure. I do not know, Vidisha Sheth, if you got the earlier part of my answer. Is it possible to repeat the same one part you mentioned was execution, but even with an execution, is it more of your launches being focused on the lower price points or a faster pace of innovation? No. I would say that's the integral part of small town strategy. We have revised merchandise mix turnover last several years to clearly address. That's not changed at all. I think it's the environment and the market conditions in small town, which is the bigger driver of shift. And we've stayed very confident about growing this part of the business with almost a year and a half, almost fifth quarter of strong double-digit growth. Got it. Thank you, sir. Second, what is driven this shrinkage in gross margins that we see YOY, considering the fact that wholesale as a channel has underperformed versus the retail base. Anything particular that you'd like to call out here? No, not really. This quarter is much lower than last year. Most of it happens because of provisioning that we do quarter on quarter, depending on. I don't think this is material or meaningful in any sense. Sure. And just one small clarification to the earlier comment. You talked about how there could be 3%-4% cost increase in the remaining part of FY27. How could you land up mitigating the same in terms of avoiding margin compression? I did hear that you'd called out on sourcing or the sourcing efficiencies or the productivity part of it playing out, but are you looking to take any price hikes in the portfolio? Yes, we have taken smaller price hikes. They are not very large, but we have taken price hikes to compensate for that. Okay. Possible to call out the quantum of the price hike, ballpark? It varies across brands and categories, but it is primarily to take care of large part of this increase. Primarily to offset this. This is no other parameter. Okay, got it. I will get back in the queue. Thanks a lot, sir. Thank you. A reminder to all participants, you may press star and 1 to ask a question. The next question comes from the line of Samir Gupta with IIFL Capital. Please go ahead. Hi, everyone. Good evening, and thanks for taking my question. Firstly, I know this was discussed partly, but there is still a gross margin contraction of around 150 basis points this quarter. You mentioned that the RM pressure hasn't really reflected in this particular quarter. So what exactly is driving this GM contraction? Is it more of a mix thing? Is it higher discounting or provisioning that has led to this? If you could elaborate on that, sir. Yeah. I think as I mentioned before, this quarter has not seen raw material price increase in any tangible manner. So that's not the reason driving it. It's a combination of channel mix, because different channels have different gross margins, and slightly higher provisioning, which also keep moving quarter on quarter. Our policy is consistent, but its application delivers slightly different results. So this quarter, we seem to be on slightly adverse side. But it's not material. It'll even out as we progress during the year. And the higher provisioning is also influenced by the change in festive timings, et cetera? Not really. Actually, we have a consistent policy of taking a certain level of provisioning depending on the age of the inventory, and it keeps moving on. Some quarters you will find it higher, some quarter lower. I do not think I can attribute it fully to that. A part of it is, of course, channel mix. Sure, sir. No worries. Second question, you mentioned it in some ways, but just wanted you to elaborate on this. Most of the plants are located in Karnataka, and the government there has announced a very sharp increase in minimum wages. What we understand from industry is that it is yet to be affected. In any case, garment is currently excluded. Let us say if the hike was to include garmenting as well, what kind of impact do you foresee in near term and what kind of measures would be taken to mitigate the same? We have a diversified now, increasingly more diversified portfolio of our manufacturing base. First of all, a large part of our sourcing happens outside. Manufacturing constitutes about 40% of our overall production. That manufacturing also has got diversified in last few years between Tamil Nadu, Andhra Pradesh, and Odisha. There is a diversified play. As you know, the current increase is withheld, and it is still at the High Court level. We will respond appropriately as we find any decision coming on that. Got it, sir. Just to clarify, the increase which is withheld, basically the garment was never the part of it in any case, right? Yes. It was never a part of it, and therefore, we are out of it, and that's been our stance. In any case, longer term diversification is also under play, and that's what we've been doing over last several years. The minimum wages which you were referring to in your opening remarks, that was basically to do with other states, like U.P., Haryana and Telangana. Yeah. Yes. Primarily other states. Got it, sir. Last question, if I may squeeze in. E-commerce as a channel has witnessed very strong growth within Lifestyle Brands. This is the last three quarters at least that we're talking. Can you tell us about the economics of this channel a bit? Where does it sit in the overall profitability piece? Is it on an EBITDA or a contribution per piece level across channels? Where does it rank and how has it moved over time? I understand that you're not participating in this channel 2 years back meaningfully. What really has changed, maybe in the industry landscape or from your own efforts, which is leading to this kind of growth? Yeah. It is a good question, and thanks for highlighting this. If you look at the overall trend over last three to four years, you would heard commentary from me and Vishak over the years on how we have sort of let some of the growth opportunity in e-commerce pass. A large part of this growth was driven by steeper discount, very competitive pressure, which at some level gets you growth, but the quality of growth is suspect, and we have therefore been very disciplined about it. Over the years, we have managed to bring this channel profitability very close to our retail profitability. It is just marginally lower than our retail profitability. And now that we have got to this level, having exercised a very disciplined and patient approach to building this channel, you are starting to see the growth on that base. And that is a result that is going to. I am very confident from here on, we will be able to grow this channel in line with the growth and organic growth and opportunity that this channel offers, without having to pursue margin dilutive or very highly discount-led growth. Got it, sir. That is all from me. Thanks, and all the best. Thank you. Participants, please press star and 1 to ask a question. The next question comes from the line of Devanshu Bansal with Emkay Global Financial Services. Please go ahead. Hi, sir. Thanks for the opportunity. The PPT mentioned that inflation needs to be washed out, right? From a consumption perspective across various consumption aspects, the consumer is facing inflation. I wanted to check, as per your experience, what can be the possible impact on demand? Because there is inflation across several categories, and we have also taken some price hikes, right? How do you view the upcoming quarters from that perspectives? So I think we have called out a small bit of question around it. We were nervous about it even as we entered Q1, entering Q2. So far, we haven't seen at least a meaningful shift in demand trajectory. But we are cautious that this may play out in the second half of the year, and therefore, we have called out in our commentary. As and when it plays out, we'll obviously have to respond to that at that point of time. There is a benefit of small price increases. We have made sure that those are very minimal, and at least from the price side, in apparel, you won't see meaningful inflation. But yes, in consumer's overall wallet, there is an inflation. That's the only point. At this point of time, we have not seen on ground an impact of it, and we will keep watching as we go along. Got it. Sir, you typically do the study on brand recall, right? In our Investor Day, we highlighted that some of the brands stand low. If you have done any recent study, if you could highlight what are the key takeaways from that across our key Lifestyle Brands, it will be helpful. I think there is nothing big, because these equity results build equity over a long period of time, and the performance has been stable. We have been doing it over 20, 25 years. We do it annually. I do not see a big shift. Some of our bigger brands obviously have benefited from larger exposure and over a longer period of time. Continue to remain strong. There is nothing which has changed dramatically for us to call out at this point. Got it. You addressed this online part in terms of improved profitability for this channel. Quick commerce is also sort of gaining strong traction, right? If we see our positioning on that particular channel, if you could highlight which brands can take good amount of traction in that channel, it will be helpful. We work with all the large and meaningful operator in quick commerce. At this point of time, considering our size, quick commerce is very small, a very small part. Unlike regular consumption category, fashion business has remained, at least the premium fashion has remained small. We continue to participate, but overall size of the business has not been very significant at this point for us. Sir, which consumption occasions can be catered as in maybe formal or casual? What is your initial sense as in what all consumption demand can be catered, which all maybe the brands can benefit, specifically in your portfolio? If you have any initial sort of things that you can highlight. I think innerwear is the largest part of our current business as far as quick commerce is concerned. There is a small bit of regular formal wear, but it is very small at this point. I do not think I can call out any main pieces. There may be other occasions like party or going out, which probably have tendency and potential to move to quick commerce in a slightly higher level. But all those cumulatively, at this point of time, are small. Okay. Sir, just last one from my end, because we have sort of demerged the business recently. So based on your historical understanding, so typically from a revenue PAT sales perspective, what is the ballpark percentage that this quarter sort of contributes for the overall year? If you could throw any kind of light on this front. This quarter is typically about slightly higher than 20%, between 21%-22%. This is on revenue, you are saying, right? Yes, I am talking of revenue. Okay. Anything on EBITDA PAT perspective? Because I guess margins also keeps changing. Yeah. As you know, the business has high operating leverage. So 20% of revenue comes down to less than half of that, 10% odd, even less than that as far as the profitability is concerned, either at PBT or PAT level. Very ballpark numbers. I mean, we will have to look at Yeah the past very closely, but. Got it, sir. Thank you for taking my questions. Okay. A reminder to all participants, you may press star and one to ask a question. The next question comes from the line of Jignanshu Gor with Bernstein. Please go ahead. Thanks. Good evening, and thank you for the opportunity. I wanted to ask if you can add some more color on the Lifestyle Brands retail channel performance. I am sorry to interrupt- I think- Jignanshu, your voice is breaking up. Could you please change your location and use your phone on the handset mode in case if it's not on handset? Am I audible now? A little better. Yes, go ahead, please. Okay, sure. I wanted to You are breaking up again. Excuse me. Jiganshu. Okay, let me join again, please. Sorry. Okay, sure. The next question comes from the line of Hemant Shah with NMAMC. Please go ahead. Good evening. Thank you for the opportunity. Just wanted to understand on the distribution innerwear. In the current year, we could be at about 38,000 to 40,000 trade outlets. Where do you see this going in the mid to long term? Sorry, I couldn't hear you clearly, but are you saying where do we see the distribution network going? Yes. I think at this point of time, we will continue to, because compared to the overall size of the market, we're still under-penetrated with 38,000, 40,000. Over the next couple of years, we expect in line with the overall growth about 20% kind of addition in the network as well. Secondly, again, on the Van Heusen, where do you see the traction? Is it in the- I am sorry to interrupt, Hemant. Your voice is not audible. It is quite muffled. Please change your location and use your phone on the handset mode in case if it is on hands-free. Are you able to hear me? Yes, but your voice is quite muffled. It is not clear. Is this better? A little bit, yes. You may go ahead with your question. Go ahead. Ask your question, Hemant, if you can. Just wanted to understand the traction in the price points, whether entry-level price points are doing well, premium doing well. What is the current market scenario in terms of price points? I don't think I can talk about the market as much. As far as our business is concerned, as you know, we have the largest part of our business at the premium end, and that is the part which is growing with that. We still have opportunity at the entry price points, but the current traction is more at the mid to premium end, which is the higher end of the market. Just last one on Reebok. Just wanted to understand whether we are facing any BIS-related issues and if you could also explain the sourcing in brief. BIS does remain a problem as the factories have to get the BIS approval on an ongoing and annual basis, and we are still continuing to operate with a couple of factories outside India. But as a part of our overall long-term strategy, we have built a very strong domestic base so that we are not impacted when the regulatory changes come in. For international imports, we are constantly creating substitute and inland sourcing and vendors. Our factories which we import from are currently BIS enabled, but that is a process that we will have to update every year because it comes up for annual renewal. We are basically continuing to diversify while our current operations and current source, which is from outside India, is very stable. Thank you so much. The next question comes from the line of Mohammed Haris with YES Securities. Please go ahead. Yeah. Hi, sir. Thank you for the opportunity. Just wanted to ask, you mentioned the traction is there in the mid to premium price point while the overall growth in rural stores has been good. So shouldn't the growth be more from the value format side, and not from the Lifestyle Brands side, as for my understanding? No, as we reported, Lifestyle Brands are growing. This is seventh quarter of strong like-to-like growth. Consistently same stores and a large part of our network and Lifestyle Brands business is in bigger cities, let's say top 30, 40 cities, which contribute a significant part of it. So they're growing extremely well. They're solid, robust, well-rounded growth consistently delivered over a long period of time. The only point is the smaller part of the business. Currently, the smaller town portfolio is relatively small as overall portfolio, but it's growing even faster. It is a long-term growth driver, small format, and therefore we continue to talk about it as it has emerged from a period of relatively low base in, let's say, 2023 to 2025. Last year and a half, we are beginning to find very strong growth coming in small town as well. But it's still small, large topics. Right. Understood, sir. In smaller towns, these would be the Peter England stores mostly, right? The value format. No, Allen Solly, Van Heusen, and in some cases even Louis Philippe has these small town stores. While Peter England is the largest, the other premium brands also have distribution there. Okay, sir. Roughly in terms of FY26 numbers, if you can give that brand-wise, what is the size currently? I know you do not give very detailed numbers, but anything ballpark figures per brand, that would be very helpful, sir. We do not. There is a reason we have stayed consistent at the level of reporting that we do. I do not think I want to give furthest split. We do not give it at that level. Okay, sir. Understood. Thank you. Thank you for answering my questions. Participants, please press star and 1 to ask a question. The next question comes from the line of Jignanshu Gor with Bernstein. Please go ahead. Hi. Hello. Am I audible now? Yes, very clear, Jignanshu. Okay, great. Thank you for the opportunity and sorry for the disturbance earlier. I wanted to take your help and double-click on the Lifestyle Brands LFL growth that we have seen, I think as you mentioned, Ashish, quite consistently now over a few quarters. So a few questions to understand that growth better. One, what is our assessment? Are we gaining market share in those micro markets or are we growing in line with the industry? Second, is the growth driven more by footfalls, conversion, price? How are we thinking about this in the future and what are north star metrics for this? Thank you. I think if you look at retail channel, we do believe our growth is definitely marginally ahead of the industry, because we are talking of seven, eight quarters of consistent high single digits, some quarters double-digit growth for Lifestyle Brands. So that's been very robust, and this is over 3,000 plus stores across the country, north, south, east, west, different formats, small, high street. So fairly robust and well-rounded growth over a long period of time. I think the largest driver to my mind has been, and that's been the story of these brands, is really around continuously contemporizing merchandise, improving store experience and service. Part of it also comes from continuous premiumization, which comes with superior product, better fabric, and equivalent, therefore, price increases. It would be split between price increase and support, but probably even if I don't have the exact breakup, but over longer term than I see, half of it at least would be coming through premiumization. Okay. This is helpful. This would be across all our four major Lifestyle Brands or would you say one is more geared towards premiumization versus one towards more volumes? The three premium brands, Louis Philippe, Van Heusen, and Allen Solly definitely are more primed for premiumization, and you will see that in the products. Peter England has both sides of it. There is a premiumization in the brand, and at the same time, there is a sharper value proposition which drives the small town business, which is larger in Peter England. It plays at both ends of the mid-premium market. Great. Just a quick follow-up to this, are we also seeing any I think the last time that we did the last two times in our Investor Days, when we have presented the mix of categories between these brands, between formal and informal very broadly, informal share has been increasing. Since we presented this data in Investor Day last, has there been a meaningful further shift or is it broadly stable now, the split between formal, informal wear? I think it continues to grow. The share of casual wear continues to grow, so I would not say it is stable. We have seen even in a period of one year, you would find typically between 2 to 3 percentage point increase in the share of casual wear. Okay. Very helpful. Thank you. I think that is the question I had. Thank you so much. The next question comes from the line of Aditya Bansal with Motilal Oswal Financial Service. Please go ahead. Thanks for taking my question. Can you first confirm the gross store additions for this quarter? Did I hear it correctly, it was 65? It was 68. 68, right? Sixty-eight. 68 was the gross store. If I look at on a net basis, the numbers are quite low. Can you just explain in terms of what is still driving this closure? Typically what we do is at the beginning of the year, we take calls on the rationalization of network. Somewhere around January, when we have seen the season post-Diwali and evaluated the network performance. Between February to July, which is before the peak season, is when we take the actual implementation of the closures because some of them have notice periods, et cetera. You will always find that this part of the year will have more closure, while the expansion is actually more towards the second half of the year. Sure. That is helpful. When we talk about 300 store additions, I presume we are talking about gross. Can you just help us understand what would be the same on the net basis? On a net basis, I think we did close in the year between 120 to 140 odd stores. Sometimes little higher, sometimes little lower. Therefore the net number would be a function of where we end up with that. Somewhere net number between 150 to 200 stores versus the gross number closer to 300 stores. If I look at in terms of store opening, that will be like I am also assuming some increase in the store size, so that will hardly contribute to a mid-single digit sort of a growth. So, what are our views in terms of this LFL scaling, even though we are doing a lot of closures, so what is it that we are building so that we can deliver a consistent double-digit growth here? If you do the math, the 200 stores on a 3,000 store network, typically slightly larger than the base network, should give us higher than 5%, 6% kind of network-related growth. We also believe we have demonstrated over a long period of time between 7% to 8% kind of like-to-like growth. So sometimes some numbers are higher, some numbers are lower, but that gives us confidence retail can grow in early double digits. Sure. Thank you. All the best. A reminder to all participants, you may press star and one to ask a question. The next question comes from the line of Prerna Junjunwala with Elara Capital. Please go ahead. Thank you for the opportunity. Just wanted to understand how your brand portfolio is catering to the Gen Z target audience, and how are you looking forward to add stores between tier 1, tier 2, and tier 3, as tier 2 and tier 3 are actually driving growth across brands currently. Need clarification on these two. As far as the Gen Z customers are concerned, I think each of the brand has a proposition which is more reflective in the merchandise individually. It is arguably smaller part of our current business, but brands are focusing on ensuring that customer is somebody we don't lose out on. A significant part of our effort in merchandising shift is actually built around that. On the- Could you elaborate on this? How are you looking forward to increase the share of Gen Z? How much it could reach going forward, and what are the- I don't have the numbers to share that with you, but this is the effort each of the brands as they create designs and merchandise for the customer. Because a lot of it is about the kind of products that we make, and because that's something that's an ongoing process, each of the brand has been working on that, and that's a part of our business. Of course, some brands are more tuned to it, brands like Reebok, et cetera. Similarly, Peter England has a sub-brand called Vibe Collections in Allen Solly. Each of the brand has part of their portfolio which is dedicated to address these customers. Over a period of time, we expect this part to grow. Some have clear sub-brands, some have collections or parts of merchandise, but that's a part of portfolio that will grow with time. As far as your second question was around distribution expansion, we have distinct strategies for large metros, big cities, versus small town customer. A part of what you heard in today's conversation about fifth consecutive quarter of double-digit growth in small town is primarily a reflection of our ability to uniquely address those markets in terms of retail format, price proposition, the kind of merchandise assortment. We understand that India is tiered and different customers are looking at different kind of merchandise selection, and we have created that ability in the system to operate both at the metro and tier 1 at one level, and tier 3 and tier 4 at another level. What will be the growth currently in these markets, tier 1 versus tier 2 and tier 3? Tier 3, tier 4 markets where small towns are, which is a small part of our business, is growing in excess of 15%, while metros in tier 1 is growing closer to 10%. That's the kind of difference that we have for last year and a half. The picture was slightly different 2 years back, 2 and a half years back, when the smaller towns were actually under pressure and some of them were declining or growing very marginally. That's changed in last 18 months. Understood, sir. Thank you. And best wishes. This was helpful. The next question comes from the line of Devanshu Bansal with Emkay Global Financial Services. Please go ahead. Sir, hi. Thanks for the follow-up opportunity. This question is sort of to understand the business performance of Reebok better. We are seeing a very strong revenue growth trend for this particular business. Firstly, I wanted to check whether secondary growth trends are ballpark in line with the current primary growth trends or this primary growth is also being helped by network addition that we are doing, right? Secondly, it is more from a medium to long-term perspective as in how do you see this brand evolving, right? What are the key channels of growth that we anticipate for this particular brand? Maybe from a product-value proposition perspective, what are the kind of consumers or price points that we are targeting which can help to sort of ramp up this brand? These were the two questions that I wanted to understand. Okay. Thanks, Devanshu. The first part of the question on how organic is this growth, I think, I do not know if you mentioned before, but Reebok has the highest like-to-like growth in the network, close to mid double digits for last few quarters. That tells you the organic strength and momentum that the business has. Even secondaries in department stores and other channels is in high double digits. Very strong secondary performance is actually fueling organic growth across the channels. The business continues to, as we had mentioned, the entire emerging portfolio itself is growing at 20%, and we expect Reebok to lead that portfolio with slightly higher growth rate. That is the trend we are watching for last three, four quarters. We think on an annual basis also, that is the kind of growth that we can deliver. In terms of channel, it is a very strong brand which is hugely under-penetrated. I would say the opportunity exists across all the channels. We are rebuilding retail. For a brand of this size and nature, our other premium brands have between 500 to 700 stores. Reebok is still in 200 odd stores at this point of time. There is a long runway on retail. Wholesale business also, as we are building channel distribution, is growing very rapidly. We have mentioned in the past, we have also started to now take Reebok to smaller towns with a slightly differentiated product and price proposition. Exactly what we have done with the rest of other brands. We started opening unique retail concepts for smaller towns, and we are developing that over a period of time that would allow Reebok to travel much deeper in this country versus where the typical sportswear brands have been in the past. Multiple growth opportunities. E-commerce, again, is a business that we have been very disciplined in the way we are building that channel. It is again, a large part of our portfolio. It is a brand which has a huge potential, but currently the footprint across all channels has been very small. That is why it has allowed us to grow this business from INR 250 crores to INR 500 crores, and we still feel confident over longer term, closer to 20% growth rate is what is possible for this business. Understood. Sir, this is very helpful. A sub-part to it I also wanted to understand is from a category perspective within Reebok, are we also sort of focusing on women or maybe from apparel perspective, which can be a key differentiated offering. If you could throw some light there also, women and apparel within Reebok. Yes, both are growth drivers. In apparel, because we have intrinsic deep capability. When we acquired the business, it was a little more than a fourth of the business. As we progress, we have brought it to almost a third of our business. So 32%-33% kind of business apparel from 26%-27% when we acquired the business. So that itself is growing quite strongly. Women's wear is still small. I think that opportunity is a much larger opportunity. We are working on product. There are specific collections that we are launching focused on it. But again, it is new to Reebok in its current form and currently very small. But that is another large growth driver that is available for us. Okay. I just wanted to double-check. You said current scale is INR 250 crores. Is that what you said? No, no. It was 250 stores to 500 stores. No, no. I was talking about when we acquired this business 2 and a half years back. Okay It was INR 250 crores. Okay. Got it. We more than doubled in less than three years. I think the current trajectory gives us confidence that we can further double it in another three and a half years. Got it, sir. Thank you so much. The next question comes from the line of Rajiv Bharti with Nuvama Wealth Management. Please go ahead. Hi, good evening. I am sorry to interrupt, Rajiv. You are not audible. Can you hear me? Yes, now I can. Please go ahead. Yes, now we can. Yeah. You are again not audible, Rajiv. Hello, Rajiv, we are still not audible. Yeah. Is it better now? Yes, much better. Yes. Yeah, I just tried. On the emerging business side, can you give what is the classification in terms of channel mix there? Because we do not have history of how it used to be earlier. I do not think it is dramatically different except that the share of retail, I think our Lifestyle Brands overall portfolio is about 65%. In emerging business it is a little lower as far as the retail is concerned. Wholesale and e-commerce are a little bit higher, primarily because of Van Heusen Innerwear which is a large wholesale business, and Reebok, which is a uniquely large e-commerce business. I think the only difference versus the overall profile is a slightly smaller retail compared to the overall size of the business, slightly larger wholesale and e-commerce. Sure. Coming to innerwear in particular how the growth and- Rajiv, your audio is breaking up again. Okay. I'll try it again. Sorry about this. Are you there, Rajiv? I tried it in. Hello. Thank you. Sure. Thank you. Yeah. The next question comes from the line of Bharat with Emkay Research. Please go ahead. Yes, sir. Thank you for the opportunity. Sir, I just missed two data points. At the gross level, what is the store addition that we plan and what is the consequent figure for the next store addition every year? Hello. Hello. Yeah. Can you repeat the question? You said network addition drops in net level. Is that what you are saying? Bharat, your audio is breaking up. Could you please change your location and use your phone on the handset mode, please? Okay. Sure. Sir, I was saying that on the gross and net store addition every year that you plan, what would be the rough figure that we should work with? I had mentioned for this year, we will have more than 300 stores as far as the gross is concerned, and between 150 to 200 stores, which is the net itself. Okay. Sir, you talked about the small format stores that we are specifically targeting for the small towns. What would that proportion be in the overall network currently, and what is your strategy going in the medium to long term of that? Our overall retail revenue, it is about one-sixth or so in small towns. It is still small, although the network is about 500 odd stores, but the overall revenue is about 15%, 16%. That portion is growing faster, and the opportunity is also larger. Over the next three, four years, I think it will be more than 20% of our portfolio. Sir, you said 15% to 16% of revenues, but what was the approximate store count? What would be that? About 500 stores. 500 stores. Okay. Over the next three to five years, we count approximate revenues. Yeah, 20% in terms of revenue. Okay. Thanks a lot. Thank you. Of course, sir. The next question comes from the line of Rajiv Bharti with Nuvama Wealth Management. Please go ahead. Hello. Rajiv, you are still not audible. Maybe I will try to get offline. Sorry. Sure. Thank you. Ladies and gentlemen, that was the last question for today. On behalf of the management, we thank all participants for joining us. In case of any further queries, you may get in touch with Mr. Amit Dwivedi. Thank you for your participation, and you may now disconnect your lines.