# 1. Financial Performance ## A. Key Figures * **Revenue from Operations:** **₹134.63 Cr** (+11.2%) * **EBITDA:** **₹24 Cr** (17.8% Margin) * **Net Profit:** **₹11.17 Cr** (+24%) * **SSSG:** **12.89%** (vs. 7.1% YoY) * **Customer Base:** **>5.5 Lakh** individuals ## B. Revenue & SSSG * **Accelerated Sales Momentum:** Robust same-store sales growth nearly doubled year-over-year, fueled by optimized product delivery and a balanced increase in both **volumes and Average Selling Price (ASP)**. * **Omni-channel Scaling:** Strategic transition toward a national lifestyle brand is being executed through diversified distribution across **EBOs, MBOs, LFS, and e-commerce** platforms. ## C. Margin Expansion * **Operational Efficiency:** Significant margin accretion of **400-500 basis points** was achieved through enhanced sourcing efficiencies and bulk procurement leverage. * **Profitability Drivers:** Improved vendor negotiations and tightened operational controls successfully shifted the margin profile from the low teens to the high teens. ## D. Capital Allocation & Balance Sheet * **IPO Proceeds Deployment:** Management has earmarked **₹46 Cr** for deployment over the next **24 months** to fund store-level Capex and inventory requirements. * **Liquidity Position:** Post-IPO balance sheet remains healthy with a cash reserve exceeding **₹30 Cr**, supporting a self-sustaining growth trend. --- # 2. Store & Channel Strategy ## A. Key Figures * **Current Store Count:** **124** Active EBOs (across 70+ cities) * **Expansion Target:** **66** New stores (next 2 years) · **250** Total stores (by 2028) * **COCO Store Mix:** **110** Current · **198** Projected (out of 213 total planned) ## B. EBO Network Expansion * **Aggressive Footprint Growth:** Significant scaling of the physical network is underway, with a strategic vision to more than double the current store count by 2028. * **Shift Toward COCO Model:** Management is prioritizing the Company Owned Company Operated format for the majority of new openings to maintain tighter operational control. ## C. Omni-channel Integration * **Hyper-local Fulfillment:** Implementation of an omni-channel framework leverages the physical store network to enable rapid **two-hour delivery** via local logistics partners. * **Logistics Efficiency:** Intercity online orders are integrated into the store-fulfillment model, targeting a **two-to-three-day** delivery window. ## D. MBO & LFS Partnerships * **New Channel Entry:** Planned expansion into Multi-Brand Outlets and Large Format Stores in **FY27** marks a diversification of the current distribution strategy. * **Strategic Alliances:** Active negotiations are ongoing with major retailers like **Reliance** to secure approximately **150 counters**, significantly increasing brand visibility. ## E. International Market Entry * **Global Roadmap:** Long-term expansion targeting high-NRI regions including **Dubai, London, and Canada** is slated to begin around **FY27-28**. * **Operational Flexibility:** International growth will utilize a mix of COCO and FOFO models, though the initial preference remains focused on company-operated sites. --- # 3. Product & Brand Portfolio ## A. Key Figures * **Product Mix:** **>50%** Salwar Kurta Dupatta sets · **10% to 15%** Higher-value items * **Average Selling Price (ASP):** **₹2,000 to ₹2,500** Core portfolio ## B. New Category Launches * **Strategic Diversification:** Evolution into a holistic lifestyle brand through the introduction of kids' wear and bespoke studio concepts. * **Kids' Wear Expansion:** Successful pilot of ethnic wear for girls (ages **3 to 13**) in **25 to 26 stores** to be scaled pan-India, targeting mother-daughter up-selling opportunities. ## C. Pricing & ASP * **Premium Positioning:** Significant ASP growth driven by the launch of signature designer stories and a strategic shift toward higher-value inventory. * **Long-term Value Strategy:** Management aims to further elevate price points by fostering customer loyalty and transitioning into a premium fast-fashion brand. ## D. DIY Studio Concept * **Service-Oriented Pivot:** Transitioning larger format stores into service hubs via ready-to-stitch garments and styling, focusing on engagement rather than traditional tailoring. * **Boutique Experience:** The DIY segment is positioned as a specialized service to enhance gifting and customer experience, with expectations for it to more than double its revenue share in the next two years. --- # 4. Operations & Supply Chain ## A. Key Figures * **New Store Capex:** **₹24 lakh – ₹25 lakh** average per unit ## B. Inventory & Logistics Strategy * **Dynamic Inventory Cascade:** Employs a multi-tier liquidation strategy, moving aging stock from premium malls to fixed-price clearance outlets to protect margins and recycle capital. * **Omnichannel Fulfillment:** Utilizes **geolocation technology** to route digital orders to the nearest physical point of sale, optimizing nationwide delivery speed and inventory turnover. ## C. Manufacturing & Sourcing * **Integrated Design Model:** Mitigates production risk by retaining all sampling and design in-house while outsourcing manufacturing to dedicated partners under strict quality agreements. * **Vendor Management:** Leverages high-volume procurement to maintain pricing power, utilizing a data-driven **supplier profiling system** based on sell-through rates and quality metrics. ## D. Store Unit Economics * **Basket Size Optimization:** Management is pivoting toward staff training and upselling initiatives to address stagnant average bill values despite rising ASPs. * **Low-Cost Format Efficiency:** The Nine99 model maintains profitability through aggressive Opex control, utilizing off-location sites in smaller towns and minimal fit-out costs. * **Capex Variability:** While baseline investment is established, actual spend fluctuates based on location type (malls vs. high streets) and city tiering. --- # 5. Customer & Market Metrics ## A. Key Figures * **Repeat Customer Rate:** **21% to 30%** range * **New Customer Acquisition:** **70%** of total shoppers * **Online Revenue Contribution:** **1% to 2%** current · **10% to 12%** 2-year target * **Store Footprint:** **700 to 1,000** sq. ft. current · **1,200 to 1,500** sq. ft. target for large formats ## B. Market Positioning & Expansion * **Tier 2/3 Focus:** Leveraging recent **BSE SME listing** to scale an omni-channel "affordable luxury" model in high-aspiration regional markets. * **Strategic Format Testing:** Utilizing **Nine99 stores** as low-risk market probes to identify high-demand locations for full-scale brand flagship launches. * **Portfolio Diversification:** Transitioning to larger store formats to accommodate new product lines, including **Kiaasa Divas** (girls' wear) and **DIY studios**. ## C. Retention & Digital Strategy * **Loyalty Upside:** High influx of first-time buyers presents a significant opportunity to improve the long-term loyalty base and conversion metrics. * **Omni-channel Integration:** Digital platform provides real-time access to fresh inventory across remote geographies, mirroring flagship store availability. * **Digital Scaling:** Management anticipates a significant multi-fold increase in online revenue contribution over the next 24 months. --- # 6. Risks & Retail Factors ## A. Key Figures * **MBO Partner Margins:** **28%** to **32%** range * **Liquidation Price Point:** **Below ₹999** at Nine99 outlets ## B. Inventory Obsolescence Risks * **Strategic Liquidation:** The Nine99 factory outlet format functions as a dedicated clearance channel, structured to recover at least the **base product cost**. ## C. Partner Margin Pressure * **Profitability Headwinds:** While the Multi-Brand Outlet (MBO) segment accelerates top-line growth and brand visibility, the substantial partner margins result in a lower relative contribution to the bottom line. --- # 7. Guidance & Outlook ## A. Key Figures * **Projected CAGR (thru FY30):** **35%** Revenue · **45%** EBITDA * **EBO Store Count Targets:** **250** stores by FY28 · **300** stores by FY30 (from **124** currently) * **MBO/LFS Expansion:** **600 to 1,000** counters by 2030 ## B. Long-term Growth Strategy * **Aggressive Scaling:** Revenue and profitability targets are underpinned by a rapid expansion of the physical footprint, aiming to more than double the current store count by 2030. * **Market Capture:** Strategic network growth is designed to penetrate the Indian women's ethnic wear market, which is forecasted to reach **₹2.5 lakh crore** by 2030. * **Omni-channel Diversification:** Beyond exclusive outlets, the company is pivoting toward high-volume channels by establishing a massive presence in Multi-Brand Outlets and Large Format Stores. ## C. Profitability Sustainability * **Margin Accretion:** Management anticipates current margin levels are not only sustainable but positioned for expansion over the next five years. * **Efficiency Drivers:** Long-term bottom-line improvements are expected to stem from rigorous cost minimization and the consolidation of operational activities.