Good evening, everyone. Welcome to Brainbees Solutions Limited Q2 and H1 FY 2026 earnings call. This is Anish Arora, and I have with me Mr. Supam Maheshwari, Managing Director and CEO of the company, Mr. Gautam Sharma, Group CFO, Mr. Vivek Goel, Chief Business Officer of the company, Mr. Abhinav Sharma, Country Head of Middle East Business Operations, and Mr. Anuj Jain, CEO of Globalbees. Kindly note that this call is meant for analysts and investors of the company. We wish to highlight that the call is being recorded, and by participating in this event, you consent to such recording, distribution, and publication. All participants have been muted as per the default mode, and participants will be unmuted once we open the Q&A forum for the members to ask questions after the presentation from the management concludes.
We'll be covering the presentation in the beginning of the call and will thereafter open for Q&A forum. We would like to point out that some of the statements made in today's call may be forward-looking in nature, and the disclaimer to this effect has been included in the investor presentation shared with you. With this, I hand over to Mr. Supam Maheshwari.
Good evening, everyone. Sorry, am I audible? Because we had some trouble in—good evening, everyone. Can you hear us?
Okay, all right. First of all, I'd like to say Happy Children's Day to all of you. Thanks for joining our quarter two and H1 2026 earnings presentation. Anish, can we move to the next slide, please? Yeah, we'll take you through our H1 and Q2 performance highlights. This quarter and in H1, happy to sort of share the progress report card. On a consolidated basis, we have been PBT positive, adjusted for ESOP cost in quarter two as well as for H1 2026. Also happy to report Adjusted EBITDA increased by 51% in quarter two FY 2026, led by improvement across all our business segments. We continue to remain free cash flow positive as well for H1 2026.
On the segmental updates, at a broad level, India multi-channel, despite deferring of consumer demand due to implementation of new generation GST reforms, we witnessed sequential improvement in year-on-year basis on growth rate for GMV across both online and offline channels. With further expansion of our faster delivery initiative that we spoke about at length last time around during our earnings call, plus new scale-up of our new initiatives that we will discuss—we have discussed last time, but we will share more details this time around. We believe our year-on-year GMV growth rate for both online and offline will be sequentially better for the second half of the fiscal year 2026. We continue to be PAT and free cash flow positive in H1 FY 2026. On the international business, we delivered another quarter of sustainable growth, as we have spoken about in our last several earnings calls.
This comes with a significant improvement in the adjusted EBITDA, which has been around 52% on a year-on-year basis for quarter two ending 2026. On the Globalbees front, we delivered another strong quarter of organic growth, with Core Categories driving the growth momentum as well as the profitability.
Yeah, so we continue to improve our EBITDA across all the business segments. As Supam mentioned in the previous slide, our adjusted EBITDA for the console business in Q2 has grown by 51% year-on-year. If we further break it down into different business segments, we can see India multi-channel business EBITDA has improved by 14% year-on-year. International business, as Supam mentioned, we talked about this in our previous calls, that we will continue to focus on reduction of losses in international business. You can see a significant reduction of losses in our international business. From a loss of INR 39.4 crore in Q2 FY 2025, we have reduced this by more than half to INR 18.9 crore in Q2 FY 2026. Globalbees EBITDA continued to improve, an increase of 23% year-on-year in Q2 FY 2026 over Q2 FY 2025. Others, which is the preschool business, continue to deliver a strong EBITDA.
It's an increase of 55% year-on-year in Q2 FY 2026. This is a snapshot of Q2 performance for the console business. Annual unique transacting customer, this is trailing 12 month, stands to be 11 million. It's an increase of 11% year-on-year. This is for the India multi-channel business and the international business. Similarly, GMV has also grown by 11% for India and international business put together. Revenue from operations on a console basis has increased by 10% year-on-year. Similarly, the adjusted EBITDA, console adjusted EBITDA, which we talked about in the previous slides, has increased by 51% year-on-year. Talking about the India multi-channel business EBITDA, it has increased by 14% in Q2 FY 2026 over Q2 FY 2025. We continue to improve the cash profit after tax, which stands at INR 71.6 crore. It's an improvement of 157% over Q2 FY 2025.
Now I hand over to Vivek to take you through the performance of India multi-channel business.
Just give us one minute, please.
Hello everyone. Apologies for the technical glitch. Happy Children's Day, everyone. The Q2 for India multi-channel business played out for us in two parts. The first half of the quarter was very good, and we also alluded to it in our earnings call during our last time. The growth in the second half of the quarter was moderated as the customers deferred their purchases following the announcement of the new GST rate reforms, as Supam had also mentioned. We witnessed this from mid-August to late September. In order to incentivize the customers during this period, we increased our discounts on our platform, which has resulted in a difference in GMV and revenue growth, and also a slight reduction in gross margin that you will see in the next slide. However, our adjusted EBITDA margins continued to expand.
Further, it is important to note that the GMV growth on a year-on-year basis has sequentially improved on both online as well as offline channels in Q2 FY 2026. Also, I would like to highlight that we witnessed very encouraging signs of growth during and post-festive season for both online and offline channels. On the profitability front, I'm happy to announce again that India multi-channel business continued to be PAT and free cash flow positive in H1 FY 2026. When it comes to online unique transacting customers, we grew by 11% in Q2 FY 2026 to INR 10.5 million. India Omnichannel Business had an orders growth of 8% in Q2 FY 2026. For a half-yearly basis, for H1 FY 2026, we grew by 7%. Our GMV increased by 12% in Q2 FY 2026. On a half-yearly basis in H1 FY 2026 over H1 FY 2025, we grew by 11%.
As I mentioned earlier, India multi-channel business witnessed continuous expansion of adjusted EBITDA margins. Our EBITDA margins for Q2 FY 2026 grew to 9.1% from 8.6%. For a half-yearly basis, we grew to 8.9% from 8.5%. When it comes to gross margin, as I mentioned, there is a slight decline in Q2 FY 2026 to 37% from 37.3%. However, at a half-yearly basis in H1 FY 2026, we grew to 37.4%, which is a 40 basis point growth over last year.
On India multi-channel business, I just wanted to highlight a few key initiatives that we are undertaking to drive growth. First of the ones is the new generation GST reforms. It's obviously a gift from the government. Almost one-third of our portfolio transitioned to 5% GST. It will help us spur demand for all retailers, including FirstCry. That will be definitely a very good positive for us. Most importantly, what is in our control and what we are endeavoring to deliver, which we have spoken at length last time around. Happy to report that we have expanded our delivery network from four cities to 13 cities, which is an in-house delivery network, and has helped us significantly to improve the TAC, resulting in growth in those cities as well as the customer experience. We continue to expand on this initiative.
Our endeavor is to take and continue to expand month on month and adding more cities to be able to cover half of our shipments by the mid next year. The next initiative that we would like to share with you all is that we have been witnessing, we had witnessed in the past, is around the footfalls in the offline channel. Here we are aiming to roll out a realigned product portfolio by H1 2027. Here, instead of playing with a, instead of a WIT strategy, we'll be playing more of a DEP strategy, enabling us more margins, which we will be able to pass to the customer, and thereby expanding our certain customer base that we will be able to target additionally without really losing any material margins at a gross margin level. With this, we anticipate an increase in footfall as well as conversion.
Also, with improvement in the faster delivery network that we are creating, this all has been created in the last six to seven months only, and we rapidly continue to increase this. We are encouraged with this to the extent that we will be actually spending more marketing monies, and we still manage our unit economics and be able to accelerate the growth because we are able to now offer much superior customer experience that we have not been able to deliver in the past. With these initiatives, we believe the best is yet to come for us, and H2 and even FY 2027 looks more promising as we progress towards in the H2 and the FY 2027 zone. Now I'll hand over to Abhinav to take you to the international business update.
Thank you, Supam, and good evening, everyone. Happy Children's Day to everybody. The best forum you can expect to get wished for Happy Children's Day, I believe. Very excited and happy to share that we've launched our first store in Riyadh in Saudi Arabia. It's a company-owned and operated store in a mall. We launched it somewhere around the third week of August 2025, and off to a very promising start, both from a customer experience or customer feedback standpoint, as well as the first sort of metrics that we've measured. Early days, but very promising and very excited and happy to share with you. I think 14th November is a very good day to share with you this news as well. Anish, on to the next slide, please.
As mentioned on the previous calls, both by Supam and Gautam as well as I, we are truly on our journey towards a very sustainable growth. This quarter as well, we've been able to deliver in both the countries, both the markets, UAE and KSA, a very sustainable quarterly growth by optimizing our top-line mix, resulting in a very superior GMV to revenue conversion and superior gross margins as well. Also, our redundant focus on acquiring superior quality customers, ensuring a very high probability of retention, which has been a key driver to the results that we'll see in the next couple of slides. AUTC grew by 12% in quarter two of 2026 versus the same quarter last year. Orders grew 9% in comparable quarters. We saw 8% order growth first half of this year versus last.
GMV grew by 9% in comparable quarters and 6% versus the first half of last year. Revenue, which actually is the metric that we all should look at from an international business to measure the scale of the business, we grew 13% from INR 208 crore to INR 236 crore approximately in Q2 of FY 2026 versus the same quarter last year. To top it up, we expanded our gross margins by 300 basis points from 23.3% - 26.3%. Sort of a similar story, first half of this year versus last year, 13% growth in revenue from INR 392 crore to INR 443 crore, with gross margin expansion of about 200 basis points from 23.6%- 25.6%. Having done that, we also ensured what we promised over the last few calls is a relentless focus on burn reduction and loss reduction.
We saw a significant reduction in Q2 this year of 52%, INR 39.4 crores going to INR 18 crores, just under INR 19 crores, which then helped us with our EBITDA margins by 1,100 basis points from 19% to 8% in Q2 of this year. Progressively, even in the first half of this year versus last year, we saw a 42% decrease in losses in absolute terms and a similar sort of EBITDA margin improvement from 18% to 9%. This shows us a progressive sort of a loss reduction that we've, the journey that we've embarked upon, the sustainable growth journey that we've spelled out very clearly over the previous calls as well as on this call.
If you compare FY 2025 versus FY 2023, we had about an 831 bps reduction in our EBITDA losses, 25% going to 16%, and then continued in the first half of this year, the 16% versus last year became 9% this year. There is a relentless focus and razor-sharp focus on both expanding the top-line gross margins as well as reducing losses. That has been sort of our cornerstone for this year and for this quarter as well as last quarter. We believe that subsequent quarters also we continue to deliver reduced losses and top-line expansion on both fronts. Anish.
Okay. Good evening, everyone. I'm sorry, because of a technical glitch, I think the video is not coming on, but nevertheless, let me continue with the update on Globalbees. Our Core Categories continue to demonstrate strong growth. These Core Categories witnessed a 30%+ year-on-year growth in H1 FY 2026. Further, the margin profile for core brands also continued to be strong. Core Categories are operating at 5%+ adjusted EBITDA margins post-corporate expenses. As mentioned on previous calls, we continue to rationalize our portfolio across other brands, and therefore the overall growth and overall margins are the way that they are. Our endeavor is to complete this rationalization of other brands within the next couple of quarters. Overall, the revenue growth in H1 FY 2026 was 21% year-on-year with an adjusted EBITDA margin of 1.6%. Specifically for the last quarter, we have grown at 14% overall.
However, if we focus on Core Categories, the growth is 20% plus year-on-year. If we account for the new settlement policy of Flipkart that some colleagues in the industry have also called out, the year-on-year growth is in the mid-20s. An important point I would like to highlight is that this entire growth is organic, and the last acquisition that we made was in September 2022. Anish, you want to, yeah, thanks. I think we're still four years into the business. The first year went in priming the engine, and really we've been scaling up our businesses over the last three years. If we look at EBITDA performance over the last three years, you will see that the adjusted EBITDA has moved from 0% in FY 2024 to 5% plus adjusted EBITDA in H1 FY 2026.
We continue to endeavor to demonstrate a great balance of growth as well as an improvement in adjusted EBITDA.
This is the combined result of all the four business segments. In fact, we did not add any slide on the education business. The preschool business revenue in Q2 has grown by 22%, and we talked about the growth in the EBITDA, which has grown by almost 26% in Q2 over last year Q2. If we combine the results of all the four business segments, we get a 10% growth in our net revenue for Q2 over previous year Q2, and the H1 revenue growth is 11% year-on-year. If you see the gross margins, gross margins while for the Q2, there is a slight dip in the gross margin, largely coming out of the Globalbees business, which Anuj explained in the previous slides, rationalization of other brands, which should be over in a couple of quarters.
Second is a slight change in the revenue mix within the business segments. However, H1 over H1 continued to improve. Gross margin has increased by 10 basis points in H1 FY 2026. A clear focus on improvement of the adjusted EBITDA on a consolidated basis. We talked about the Q2 performance, EBITDA performance, 51% increase in consolidated adjusted EBITDA for Q2 year-on-year. Similarly, if we talk about the H1 improvement, it is an improvement of around 38% year-on-year from 4.3% improved to 5.4% in H1 FY 2026, and 4.2% in Q2 FY 2025 has reached 5.8% in Q2 FY 2026, largely coming out of improvement in profitability across all the four business segments.
Thank you, team. We'll now wait for a few minutes for the queue to get formed, and then we'll start with the Q&A. I request participants to raise the hand for asking the questions. We will unmute you one by one, and you'll have access to mic. Please introduce yourself and the name of the organization you represent. The participants are also requested to limit their questions to a maximum of two. For any follow-up questions, you may join the queue again. First question is from Videesha Sheth. Videesha, please unmute yourself.
Hi. Am I audible?
Yes, Videesha.
Yes. Hi. This is Videesha Sheth from Ambit Capital. To begin with, can you double down on the initiatives that you talked about on the product portfolio in the offline channel? You did touch upon depth, focusing on depth versus width, but if you could elaborate on this as to whether would the initiatives be towards focused assortment or tighter pricing, or what is it that you're thinking about over here, please?
Yes. This will be focused on the product realignment will be around instead of focusing on width, which allows us to have more leeway in margins and able to offer better prices to sort of customers as well without any material dent in our gross margin, enables us to address a more range of customers that today will attract more footfalls, more conversions, and also further lead to more online volumes. All of this will be enabling us from a multi-channel view. That is what our thought process is. We have done some experimentation, but the whole change will be actually applicable somewhere on H1 of 2027.
Sorry, Supam. Just to clarify, offering a wider assortment would be a part of this?
No, no. Wider assortment. It will be wide enough. I mean, let me put it that way. Today, we have very wide. We want to make it adequately wide and increase more depth to be able to get the leverage on economies of scale, to be able to have the more latitude on margins to be, again, be able to get that set of extra set of customers who we are maybe losing out and making ourselves to be a more destination play as we have been in the past. This will make us even a bigger destination for mothers, baby, and kids across all sort of price segments. As you know, both as an omnichannel player, both in our home brands as well as in our third-party sort of brand partners, we have products across price ranges. We anyway cater to all kinds of price segments.
This latitude will also help in offline. Obviously, the variety has to be slightly limited. You can't keep such a wide audience or such a wide sort of a price laddering as what you can keep it online. We are just realigning that a little bit in the offline front as well. To be able to make a footfall and convergence to further improve for where we stand is a change that we will be making without compromising any material sort of gross margin loss for us as a business. Hope that answered.
Okay. If you've done any, like you said, it's been rolled out in certain stores. If you could talk about how has the growth profile improved over there?
Look, it's a very early sort of only few stores that we have done. You can't do it at a, yeah. Therefore, it has to be done at a scale. We are very confident that it will work out and it will actually deliver us the yield that what we are anticipating. We are very, very confident. That approach compounded with our faster delivery and increase in our marketing spend will drive the overall growth for the business in the India multi-channel is what we believe will definitely accomplish because we had issues around delivery, which we have talked about last time. As you have seen our progress, instead of four cities that in less than a matter of seven months, we expanded from zero to four and now four to 12. We will continue to expand on a monthly basis.
Our endeavor will be by mid next year, we'll be able to take it to almost 50% of our business. With that, increasing marketing spend will mean more retention of customers, new customers, and more retention of those customers driving the growth. I think our whole ambition is to drive growth. Obviously, our gross margins and some of those things are structurally well placed to continue to increase over a period of time.
Got it. Sure. I'll get back on that. Thank you.
Thank you, Videesha. Next question is from Rohit Mundra. Rohit, please unmute yourself.
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All right. Thank you.
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It's alright. Thank you.
OK, thank you.
Thank you, Rohit. Next question is from Mr. Jay. Jay, please unmute yourself.
Yeah, hello am I audible?
Yes.
Hello?
Yeah, Jay.
Yeah. Jay Ladda, from JL Capital. Actually, I am super bullish on this baby care sector. As we know, we are only player in an organized sector. Totally, market is unorganized. How are we going to penetrate ourselves in this market? What is our strategy for this?
So Jay, you are right on one front that, you know, we have 84% of the market is unorganized. It's a massive market. We almost have 25 million babies born. Almost between zero to 12, we have 300 million children across the country. We are the largest multi-channel Mothers, Baby and Kids platform, having around 1,100 plus stores and online, significant online playbook. As a part of our strategy, we will continue to increase our store footprint, make our products more relevant, be able to address customer audience through different tiering and product tiering as well. From an offline perspective, get those customers from offline to online. And a lot of our customers go from online to offline. In our online, we will continue to invest behind our delivery experience, that has been our pain point for last couple of quarters, that we have started to improve materially.
Plus, we are continue to invest around technology and personalization to be able to find relevance across different segments of socio-demographic, economic demographic. Therefore, be able to expand that. Then there are several initiatives around building connect programs with mothers, baby and kids, whether through our schools, where they can enroll their kids and be a partner in that education journey, or through our hospital initiative program, where we connect with them at the time of delivery. A lot of other influencer programs that we do in the baby and mothers and baby and kids space. We are the largest, we run the largest influencer program in the country, through which we will connect.
So I think it's a whole ecosystem of digitally, physically, within the shopping, outside shopping, in education, that we are trying to stitch together to be remaining on top of the mind as a choice, both from a retail platform as well as a brand product platform. Brand and product both is what we are endeavoring to deliver and build partnership, long-term partnership, and build joy of parenting to the young parents. That has been our journey and will continue to pedal down across all of these facets that I describe to be able to capture more and build penetration and capture more and more wallet share of those customers from an offline and online perspective. In a very short way, I have tried to explain this, but each facet has a very detailed sort of an overview of how we are going to do it.
We are going to continue to innovate on that to be able to drive relevance and effectiveness while building our KPI from a top line and bottom line as a from a shareholder perspective.
So thank you for the opportunity. I am super bullish on this baby care sector and all the best for ahead.
Thank you, Jay.
Thank you. Next question is from Mr. Viraj Shah.
Hello?
Yes, you are audible.
Yeah, hi sir. This is Viraj from Tatvic Digital Analytics. Sir, my question is with regards to India multi-channel business. As you have rolled out the faster deliveries from four cities to 13 cities, my question is that what is the growth profile that you are seeing in terms of GMV and revenue? If you can share some light there in comparison to the other cities for India multi-channel.
Viraj, it's significantly higher growth compared to the previous other cities that where we do not have our own delivery network as of today. It's significantly higher. As I explained in the last call as well, the reason, the rationale for doing and building our own sort of a network will yield us a better control on customer experience, reducing RTOs, reducing returns, improving customer experience. All of that will yield at the end of the day a superior customer experience and a repeat. Our particular category is a high repeat category. Therefore, will enable us to drive growth as we acquire more customers building that cohort. We remain extremely sort of bullish on expanding our network, and then driving more marketing on top of it to be able to accelerate our overall growth.
Understood, sir. And sir, if you can share like what percentage of the total GMV that can be coming from these 13 or four cities that you have rolled out faster deliveries.
Broadly around, we in last six to seven months from 0% to almost we have covered 20% of the shipment. In middle, by middle of next year, we will cross 50%.
All right, sir. Understood. And sir, my second question is with regards to the gross margin. So in India multi-channel business, is there any increase in the share of home brands in our total revenues?
So Viraj, we have talked about the gross margin improvement levers, you know, in previous calls as well. More or less, the gross margin expansion levers remain the same, which includes increase in the mix of home brands, increase in fashion mix, and continuous, you know, improvement in margins with the third-party brands with continuous negotiation. All these factors, you know, put together led to an improvement in gross margin. It remains more or less the same every quarter and every year.
OK. So sir, my question was more towards the number that you had said for FY 2025, 55 percentage contribution.
It's continuously increasing, yes.
OK. Yeah. Understood, sir. Thank you.
Thank you, Viraj. Next question is from Ashok. Mr. Ashok, please unmute yourself.
Hi, thanks team. Gautam, Supam, thanks and congratulations for the results. I have a couple of questions for you. One, your gross margin in India business has declined, but EBITDA is increasing continuously. Basically, what line items are leading this improvement? Question number one. Question number two is on the international business. What are the improvement areas in international business in terms of EBITDA? By when will we reach our break-even stage? Third one is, do we have any impact of Q-c ommerce on our business?
So Ashok , on the first point, which is your question was, despite of a dip in the gross margin, we were still able to improve the EBITDA. First of all, gross margin dip is a one-off thing, you know, which is a result of, you know, giving away higher discounts to drive better convergence after the GST 2.0 was announced mid of August. Gross margin post festive season is back on track. However, despite of a 30 basis points reduction in the gross margin, we were still able to improve the EBITDA by almost 50 bps . It is a combination of, you know, efficiency in marketing spends as well as, you know, driving efficiency in SG&A as well.
And on the second one, Abhinav, you want to take that or do you want to?
Yeah. So Ashok, hi. So your question was around the gross margin expansion, correct for international?
Yeah, gross margin in EBITDA.
Gross margin in EBITDA when it is.
OK. So yeah, I will answer the gross margin first. It's along the similar lines, you know, it's a function of, you know, how we optimize our top line and the category mix and the home brand share, progressively improving the home brand share, progressively also improving the mix of the category that we operate in, categories that we operate in. Essentially, you know, a very, very strong focus on what rolls up to the top line, you know, while the top line expands, what rolls up to the top line. That is very, very key to the gross margin expansion. That's point number one. On the EBITDA, obviously, gross margin plays, you know, it starts there.
But there are multiple other, you know, cost heads, you know, KSA and I would say even UAE are fairly new businesses, you know, UAE being about five years and KSA in the third year. With scale, we will see, you know, opportunities for efficiencies kicking in in all the line items. Optimizations in marketing for sure has been done by us. We've mentioned in previous calls, we've mentioned earlier in this call as well. Again, our focus is on acquiring quality customers while there are strong headwinds for, you know, increased rates in CPCs and CACs and CPMs. We fundamentally believe that, you know, acquiring the right customer with as minimal cash burn while, you know, expanding top line and improving retention of the acquired customers will help us with the EBITDA improvement. That is one. Second is, you know, the operating leverage.
You will get those operating leverages in the SG&A as you scale. There is a lot of headroom. We are a young business. There is a lot of headroom to grow and, you know, improve on efficiency for all cost line items.
Just to add, Ashok, in fact, during our March earnings call, we have talked about the levers which will expand gross margins in international business, which are pretty similar to what has led to a gross margin expansion in India business. It is the same playbook that we have taken in Middle East. In fact, we have also shown, you know, where do we, where did we stand in terms of gross margin in India business for the first seven years. The same gross margin we have achieved in Middle East within four years. India business became profitable in 10 years and given the gross margin journey in Middle East, we believe that we should be profitable much faster than we became in India. You can see, you know, testimony to it is losses have considerably gone down.
You know, it's a reduction of 52% in Q2 and almost 40% in H1. The losses that we have reduced from 23% to 25%, a similar reduction is observed. You know, you can see in six months itself. That's the guidance we can give, Ashok.
So Ashok, I will take the third question on the quick commerce. So we have mentioned, we have communicated in previous calls as well that our overlap with quick commerce remains small. So exposure is fairly small. However, the quick commerce has led to an increase in consumer expectation when it comes to on-time delivery and faster delivery of goods being shipped online. So and in order to meet those increased expectations is why we have been expanding our initiative around faster delivery. Where Supam has mentioned that we have expanded to 13 cities from four cities over seven months. So yeah.
OK. Thanks, thanks team for clarifying and all the best for future.
Thanks.
Thank you, Ashok. Next question is from Sheela. Sheela, please unmute yourself.
Yeah, thanks for taking my questions. So my first question again is on faster delivery. Just want to understand, I mean, now we have expanded into 13 cities. What kind of portfolio, what part of our portfolio is actually doing well on the faster delivery side? So that's first part of my question on faster delivery. There is a second part to it, but I will wait for your response before asking that question.
Sheela, what do you mean by when you say portfolio?
Yeah, yeah, Supam. So what I mean is, is it diapering which is doing well or apparel which is doing better there? I mean, that's the kind of question I have.
look, it is a, it is a, it is a total mix. We are taking city by city. It is not, we are not saying that in that particular city we will only do certain goods or hard goods or apparel and fashion and diapering. When we are taking a city, we are building that network. You know, in a city, you have to build a network where the source can come from various different cities. We have warehouses in different cities. Obviously, we will try to have the first allocation within the same city so that we do not have to work. I mean, the logistics cost reduces as the network design becomes superior. Having said that, we are delivering all products.
I mean, whether it is, you know, consumables, whether it is hard goods or whether it is fashion for the cities that we are mentioning, especially where we have built a network where we can do a first mile and mid mile as well. I hope I am able to answer. Over time, the network will become more and more stronger. With that, we will be able to do a large part of that city as we go along and build more cities as in the network itself. The whole logistics is a network game.
And doing it for ourselves, we are custom tailoring it in a way that it suits our requirement the most, keeping young parents in mind in terms of meeting those, you know, and meeting those standards which we cannot rely on as much as we can rely on our own sort of a network. That is the idea. Covering all portfolios.
Understood. I mean, the question, the follow-up which I have is the current proposition which we have in terms of delivery. Can it meet our requirement to be profitable in that, in this channel? I think that's where I am getting to. I mean.
OK. So look, we did share this in the last or maybe last call itself that this is not coming at a sort of a huge sort of a cost, incremental cost. Yes, in the short term, there might be some basis points change. In the medium term, we will be as competitive and as cost effective as we have been working with in the past with the third party logistics. It is not going to be denting our unit economics in a material way is all what we can say while improving the customer experience in a very, very dramatic way.
OK. Supam, as we are on the conversation on e-commerce, do you have any updated thoughts on, you know, selling on third-party e-commerce channels, the BabyHug products or any of your own brand products?
Sheela, we remain glued to building our own network, our own ecosystem as what we have seen. We would like, you know, building cohorts on our own platform for both from a window of being the largest multi-channel retailer as well as the product brand for which the customer will come back and shop with us through our multiple home brands. That has been our strategy for a long, long period of time. We had the similar questions around 2015, 2016. We debated internally with our, and, you know, and we remain focused on that strategy. While as of today, we, as of now, we continue to remain on that path. However, we are analyzing and we are thinking through that more closely. We have not changed our mind yet. It is something that we will continue to observe.
There are other channels who may be better in certain things from a, because they are solving for a customer experience of, let's say, 10 minutes or 15 minutes. But so far, we haven't seen those are not very, you know, as we said, those do not overlap so much for our business. I think we will retain our original strategy for now, unless anything dramatically changes, which we don't think it will change over foreseeable future. We will continue to be a dominant force, both as a shopping destination online and offline, and also as a brand and product destination, and a, I would say, preferred choice of customers from a brand and product perspective, driving back both cohort onto our platform. I hope I have answered that. No change in strategy.
Understood. My final question is now, given that the second, you know, first half is behind us, how should we think about the full year FY 2026 growth on the revenue front for both India multi-channel and international?
So India multi-channel, I think Vivek did mention this. Sequentially, we will certainly grow higher than what we have done in Q1. Q2 was higher than Q1. Q3 and Q4 H2 will be higher than H1 for sure is what we believe. Even the post-festive, during festive and post-festive season have been very good for us. We believe that should continue. Given our inputs that we are putting through increased marketing efforts on back of better customer experience through delivery, and our overall focus around, you know, overall technology, personalization, sorting frameworks and so on so forth, should continue to drive us. The cost efficiency while being able to make that spend happen on marketing to maintain our unit economics intact. Delivering higher growth is what you should be seeing from us for the H2 of FY 2026. That is for India.
For international as well, I think Abhinav did mention, we will have a similar sort of a journey. Our focus is sustainable growth in Middle East. We heard this as a feedback when we came to, you know, we had a different playbook that we had in mind when we started our Middle East playbook. However, after entering into the public markets, we heard the public market sort of a viewpoint as well. We changed track to be able to build a sustainable growth track to bring first our unit economics in place by getting the product mix, both category mix and the home brand mix, to be able to align a faster, superior unit economics. Once we have done that, we will be able to accelerate the pedal around marketing to be able to drive even further growth.
But the burn will remain, burn will remain very, it will, it will shrink faster. That is what we had all desired for. We are walking down that path as what we had promised. I think we are delivering that. You should continue to see that happening over the next few quarters, including FY 2026 H2 as well as in FY 2027.
Just a follow-up here, and that's my last thing. You know, in last quarter you called out that the India multi-channel revenue growth will be early teens in FY 2026. Do you hold on to that view, or it's going to be better than that?
We definitely believe that we should be somewhere there, hopefully better than what we have said. But since our, you know, there are similar, there are signs, but we were, you know, caught off guard when we said in middle of August, first half of the second quarter, we were at early teens because of GST, you know, which Vivek covered. We did not see that, I mean, while we grow on a GMV basis around 12%. However, it's, we had to increase discount from ensuring that the customers don't defer their purchases. Although we are not seeing that now. During little bit of a festive season, we were, you know, we were seeing little bit of a heated approach. However, it has normalized. From a growth margin window, we are back on track.
While the growth continues, we believe it should continue the same way for the remainder of the fiscal year, even in FY 2027, back with all of the inputs that we are putting through. We should be back on track, what we had promised earlier in our previous earnings call. Hopefully we will surprise, but I do not want to commit on that, you know, a superior than that for now. All we can say as a management team, we are fully geared to deliver growth. While we have been able to expand our growth margins and our EBITDA on almost a recurring basis, since we have been sharing our results publicly.
But we believe that all the inputs that we are taking should continue to expand and deliver the growth that we all, because we are as a team, we are not very happy with the growth that we have delivered so far. There is a lot more that we can deliver, we know for a fact. We believe that we will definitely be able to deliver that growth with all the inputs that we have talked about with incremental marketing. We remain very bullish and hoping to sort of demonstrate that, you know, walk the talk. Once it happens, we will be happy to thump it on our next earnings call or next to next earnings call. Sequentially, you should be able to see better growth.
Thanks, Sheela. The next question is from Mr. Sanjay. Sanjay, please unmute yourself.
Yeah, thanks for giving me the opportunity. I have one question, this Globalbees. Now, is there any strategy for increasing, like how, how customers are coming to know that there exists a platform, Globalbees, and there are so many wonderful brands? Because I have asked at least 10-15 persons in my group, and nobody has heard about this platform.
Sure. Okay, so Sanjay, firstly, so we are not, we are not a platform in the, in the typical sense as you would think about it. We have a host of brands, a host in some key categories that we play in. And these brands are sold on marketplaces. So if you go on Amazon, for example, or a Flipkart, you will see all our brands selling over there, and you will see them amongst the best sellers on these marketplaces. It is really, you know, these channels where you will find our brands.
But I was going through this event today. Products are being sold on Amazon and Flipkart.
That's right. That's right. We have some fantastic categories that we operate in. We have got a huge range of products that we sell on Amazon, Flipkart, quick commerce, you know, across marketplaces.
Sanjay, think of us as a house of brands, where our identity is brands, not Globalbees as a company. As, as, you know, consumers will know a lot of Hindustan Lever brands, but may not know Hindustan Lever. Just think of that as an illustration.
Because just before this, there was a question from, I think, Sheela. So you mentioned that you would like to have your own platform for, and your own channel for distribution and delivering goods.
That question was for India multi-channel, not for Globalbees. Over a period of time, we will expand on channels, even in Globalbees. Right now, we remain focused as a preferred online sort of a channel, is what our playbook is. Yeah, over time, we will build more channels into that. While online is, we have many, many platforms to partner with. Yeah.
What is the business value from this platform, approximately in terms of percentage, if you can tell?
95% plus.
95% plus.
From all these platforms, all online platforms.
Online. Okay, that's all from my side. Thank you.
Yeah. All right.
Thank you, Sanjay. That was the last question. Thank you everyone. I hand it back to Supam for concluding remarks.
No, no, nothing. Thank you everyone, you know, for attending our quarter two result presentation on a Friday late evening. Once again, happy Children's Day. Thank you once again. See you next quarter.
Thank you everyone.
Thank you.