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Here are the major questions and their detailed answers from the Q&A section of the earnings transcript:

Question 1:

Sucrit Patil: "With festive-led recovery driving 21% revenue growth this quarter, how do you see discretionary demand in Tier 2, Tier 3 cities evolving over the next 1 to 2 years? What specific initiatives will be used to sustain double-digit growth beyond FY '26?"

Lalit Agarwal: "We expect discretionary demand to remain stable, driven by upcoming festivals like Holi and Eid. We're launching our summer collection and leveraging regional festivities to boost sales. Our private labels, crafted by our design team and vendors, will cater to local tastes, supporting sustained growth momentum."

Question 2:

Sucrit Patil: "Given that EBITDA margins have improved to 11.7% despite cost pressures, what levers do you expect to drive margin expansion in the next 2 to 3 quarters?"

Lalit Agarwal: "We're focused on enhancing return on capital and margins through digital initiatives and operational efficiencies. Our aim is not cost reduction alone but improving efficiency to increase sales and scale, thereby delivering better margins."

Question 3:

Hitaindra Pradhan: "What was the mix of your winter assortment versus festive this quarter?"

Lalit Agarwal: "Around 40%-45% of this quarter's sales came from winter assortment. As we approached peak winter in December, this mix could increase to 62%-63%. Our offerings included basic and autumn products that cater well during festive periods."

Question 4:

Hitaindra Pradhan: "What contributed to the gross margin uptick this quarter?"

Lalit Agarwal: "The increase in gross margin stemmed from a higher full-price sell-through, as we avoided discounting this quarter. Inventory management has improved, reducing provisions for shrinkage and enhancing overall margins."

Question 5:

Kaivalya Baing: "What factors led to a slight moderation in revenue growth compared to previous years?"

Lalit Agarwal: "Last year, the Pujo festival was in Q3; this year it shifted to September. This caused a sales shift, affecting growth patterns. Adjusting for this, we expect higher revenue growth in the coming quarters."

Question 6:

Devanshu Bansal: "Can we expect Unlimited to continue delivering better same-store sales growth in the coming years?"

Anand Agarwal: "Yes, Unlimited has consistently performed better over the last two years. New stores are yielding better sales per square foot. As these new stores replace legacy units, we anticipate improved performance overall."

Question 7:

Rajeev Anchal: "Regarding the retail cost structure, was there a one-off cost reduction this quarter?"

Anand Agarwal: "Cost reductions are largely due to improved efficiency rather than one-off occurrences. We've adjusted for previously high LimeRoad costs, leading to a healthier balance in our P&L across all lines."

This is a summary of major questions and detailed answers from the transcript, maintaining the requested character limit.