Good evening, ladies and gentlemen. Welcome to the Q1 FY 2027 earnings conference call of RentoMojo Limited, hosted by Raadhi Capital. As a reminder, all attendees will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. If you have any questions, please feel free to press the Raise Hand button. We will call on you in turn and unmute your line so you can speak. Important note: If you need to ask a question, please ensure Microsoft Teams has permission to access your microphone when you log in. Otherwise, you will not be able to unmute. Please note that this conference is being recorded. Kindly also note that the audio of the earnings call is a corporate material of RentoMojo Limited and cannot be copied, rebroadcasted, or attributed in the PR media without specific consent of the company. Please note that anything said on this call that reflects the outlook towards the future, which can be construed as a forward-looking statement, must be reviewed in conjunction with the risk that the company faces. A copy of the disclosure is available on the Investor Relations section of the website, as well as on the stock exchanges. To give you an in-depth understanding of the company and answer all your queries, we have from the management side today, Mr. Geetansh Bamania, Chairperson, Managing Director and CEO. Mr. Hakim Ujjainwala, Chief Financial Officer. I now hand over the conference to Geetansh for his opening remarks. Thank you, and over to you, Geetansh. Thank you. Good afternoon, everyone, for joining in. As this is our first analyst call, we might have not met all of you, so it is slightly important for us to give a little introduction to the business. But before that, let me start off with the introduction about myself. I come from a small town and grew up in the 1990s in a place called Delhi. When I was growing up in the 1990s, I think most of us were also living in joint families. I remember very distinctly with my father and my mother, whenever we used to buy something like a TV or a washing machine, that used to be an aspiration for us, that used to be a way for us to tell the society that we have arrived. That used to be a big aspiration for all of us. In fact, until 2015, between 1990 to 2015, the only way to meet those aspirations was to spend close to about 6x to 7 x of one's monthly salary to purchase everything. With India's average income at around INR 30,000 -INR 40,000, that has been the state of affairs to consume that aspiration. Most of us used to sacrifice and assimilate most of the savings and then purchase slowly and gradually, and that was the state of affairs. Now, as I also became part of the organization with increased urbanization and coupled with increased mobility in the workforce, with attrition touching close to about 20% across the organizations, you name it. You look at an average LinkedIn profile these days, most of them are changing jobs every two years or so. We saw the society moving from a joint family setup to more of a nuclear and solo setups, with potentially changing houses every two years. In fact, as per the report by Redseer, the average tenancy in India is close to about 19 months. That is the kind of a society that we adopted since 1990 until 2015. With every move, every time somebody was moving away from the household, and of course, with the job change, there was associated household changes that used to happen, and with every move came the compounding issues of relocation costs, breakages, repairs, disposal headaches, and the risk of abstinence altogether. We have heard countless stories that somebody wants to join a new job, they want to join in the next seven days, and they do not know what to do with the products, and they just gift it to their friends and walk away. The countless stories in which people are spending INR 15,000 -INR 30,000 in terms of the cost just on relocating every time they move. Those were the kind of challenges that people were facing, and every couple of years even the design and the technologies are changing across some of the consumption buckets that we deal in. What used to be a big aspiration, like ownership used to be a big aspiration, and slowly and gradually as we moved into being a different kind of a nuclear solo society, I think with the high mobility, that same aspiration became a lot more burden. That is where we thought that why not create a solution which is kind of create a best of both worlds. Which is give you a certain sense of credit and subscription at the same time. In rentals also, one does not have to pay that entire cost upfront. One does not have to deal with the compounding issues of ownership. The entire relocation, entire repairs, entire upgrades are all on the house for free. In fact, it is not even a liability, so it is a pay-as-you-go model. That is why we all subscribe to a Netflix, because till the time that IPL match is happening, maybe I would want to possibly get a subscription for a certain channel, and then post that, maybe just walk away from it. So that is the kind of a pay-as-you-go model, and that is the kind of a benefit that this proposition gives you. So in a sense, we realized that rental can be the best of both worlds. That is when we launched in 2015, and we imagined a different kind of rental. I think rental was there before that also, but we had a different take on how rental should be. Rental was typically a very short-term sort of phenomena. Maybe people were using it for a temporary purpose. We were the first ones to imagine that let us launch as somebody is giving an indication to commit for a longer tenure, why not reduce the rentals and so on and so forth. In the initial days, it was very difficult. We had to build supply and demand at the same time. There were many challenges. While we were creating the demand, we had to also figure out the capital to purchase the assets that most of the people were asking on rent. Both of that, we had to figure out together. Over many years, we have built and shaped this category over the last 11 years. In fact, some of the market participants would have taken more capital, been around for a longer time, but we are steering this market from the forefront. We have super thanks to all the market, all the players which are in this ecosystem. They are almost like our brothers in terms of making this market that because of all of us, the market is consistently evolving. Even as per the Redseer analysis shows that rental searches across furniture and appliances categories has been rising meaningfully since calendar year 2021. In fact, it has gone 2x to 2.5x since calendar year 2021, up to 2025. So it is a very fast-growing market displacing existing ways of consumption altogether. In fact, our internal analysis also shows that the keywords for furniture and appliances are growing at close to about 20-odd percent. In this market that we steered and created, we were the largest player by both revenue and subscriber as of H1 FY 2026. So that's been a short brief of the journey. When, of course, we started, the concept was in a very different shape and form. Nobody knew. Rental awareness was very less. Even today, the awareness is quite less for this kind of a proposition. But in FY 2026 alone, we received approximately close to about 1 million items ordered on the platform. That's equivalent to close to about INR 1,100-odd crore of purchase volume getting displaced from the market. If you take just the number of items and multiply with the average retail prices which will be running, that will be close to about INR 1,150-odd crore worth of purchases. That means if we were in the selling business, that's the kind of a demand that we were seeing. In quarter one FY 2027 alone, we have received close to about 3.3 lakh items on the platform, which is again equivalent to close to about INR 400 crore of displacement in terms of the purchases altogether. We believe that the number of items ordered is the single most important metric for understanding the company's growth and the future prospects, as rest of the aspects just flows through in the P&L from that one variable. Our items ordered grew almost close to about a 45-odd percent year-on-year in the quarter one. This strong underlying demand translated into almost a 51% year-on-year growth in terms of the quarterly revenue from operations which grew approximately from INR 83-odd crore in quarter one FY 2026 to about INR 126-odd crore in quarter one FY 2027. More importantly, I would say growth is one thing, but we delivered that without compromising the economics of the business. If you look at our normalized EBITDA margin for several quarters have been closer to about 40% to 41-odd percent over the last three years, even as we continue to reinvest some of the operating leverage in terms of expanding our offline footprint. In fact, by the end of quarter one, we are already close to about 89 stores across PAN India. Our normalized EBITDA grew 50-odd percent year-on-year between quarter one FY 2026 and quarter one FY 2027 from approximately INR 35-odd crore to about INR 52-odd crore, while at the same period, our normalized PAT grew almost 71% year-on-year from approximately INR 12.8 crore to about INR 22-odd crore. Of course, the operating performance for quarter one was strong, thanks to the team that was very driven. But we did see a little bit of unforeseen fire at our Noida warehouses in June 2026, which we also disclosed in the RHP before the IPO happened. Most importantly, thankfully, there was no loss of life or injury to any of our colleagues. We definitely had sufficient insurance coverage for such unforeseen exceptional events that happens. But the loss represented the inventory which was there was close to about 2% of our overall gross base at the WDV. Although this was slightly lesser on insignificant, this did result in a one-time exceptional loss of approximately close to about INR 11-odd crore, which reduced in flow through, reduced the EBITDA from about INR 52-odd crore to about INR 41-odd crore. The same loss was one of the primary reason for the difference between the normalized PAT and the reported PAT. That same INR 11 crore, along with the non-cash deferred tax accounting for that balance, which is a non-recurring one. This was more from a financials perspective. PAT is one, but I would really like to stress on the fact that in a CapEx business, in our point of view, one of the more important ones is, of course, the EBITDA in the business, but at the same time, how much of that EBITDA is translating into cash generation? If you see our cash flow from operations grew almost 50-odd percent, 49.6% year-on-year, with roughly about a CAGR of about 37% last few years. We have been consistently at 100%-plus EBITDA to cash flow from operations translation for the last three years. That goes on to possibly this is a good reflection of the quality of the earnings that we have. What we show in EBITDA actually translates into the operating cash flow. That's been the fundamental principle for us when we approach a certain P&L as well. In fact, for FY 2026, we generated close to about INR 173 crore of operating cash flow, broadly covering our INR 87.5 crore growth CapEx. So this self-funded growth has helped us consistently maintain a normalized return on capital of over 26-odd percent, including in quarter one FY 2027. This, along with the strength of our balance sheet and business economics, helped us raise the incremental debt at close to a [9%]. In fact, less than 9%. We ended March 2026 with, in fact, a healthy debt-to-equity ratio of about 0.6x, and post which, of course, the primary proceeds from the IPO would have only strengthened the balance sheet. With the compounding network effect of cash, which is pretty much utilized for accruals, historically we have seen we are becoming lesser dependent on external debt. Of course, we'll balance as the growth basis the growth behavior as we go forward. What gives us confidence in the growth behavior going forward, and of course, is the kind of behavior that we are seeing from our consumers. With almost 50% repeat behavior, 60% of the demand being organic, I think both the metrics are strong indicators of the kind of experience and the value proposition we are delivering. Can we go a lot more better? Of course, that's what we are striving for. Finally, I would just like to conclude and say that this was just a milestone for us. Of course, quarter one happened, and we are very excited about it. IPO was a big milestone for us. We have a long way to go. Rental today only displaces only a fraction of the overall purchase market. The opportunity ahead, in our point of view, is humongous, and we are super excited about the next phase of growth as we continue to build RentoMojo with the single most non-confusing purpose that we want to build a new consumption model for the young mobile India, where renting becomes a flexible alternative to purchase. So that, I'll just conclude here and, yeah, we can carry on with the rest of the meeting. Hakim, would you like to go ahead? Yeah. Hi. Thanks, Vinita. Thanks, Geetansh, for such a good introduction about the business and taking everyone through the key parameters of the business. This is our first quarterly results presentation as a listed company, so a warm welcome to all of you. And, Vinita, can you go to the next page? Yes, sure. Yeah. As you can see, and also highlighted by Geetansh a few moments back, our revenue, we had a very strong growth quarter this in Q1, where our revenue from operation grew 51% YoY and 15% sequential to INR 1,263 million. Our normalized EBITDA is also at a healthy INR 523 million and a year-on-year growth of around 50%. Our normalized PAT is also at INR 219 million with a 71% YoY increase. We held our normalized EBITDA and EBIT margins at 41% and 23% respectively, while reinvesting part of the operating leverage into experience store expansion as well. We closed the quarter at 89 stores, up from 82 stores in March. We also reinvested some of the operating leverage in our marketing initiatives, which helps us to grow the business. Our normalized PAT margin also increased from 15% to 17%, which is up around 230 basis point, and that is on the basis of finance cost efficiencies where we optimized our borrowing cost. The finance cost increased 10% year on year, while the revenue grew around 51%, taking them from 7.9% of the revenue to 5.8%. Vinita, if you can just go to the earlier slide. Okay. Earlier. Yeah. Beneath these financials, the item ordered, we have received 329,159 items ordered on the platform from our customers or subscribers. This is a key parameter which we track internally. This is up 46% year on year and 27% sequentially. Another key parameter is purchase displaced, which is the retail value of goods our subscribers chose to rent rather than buy, which crossed INR 4,136 million, which is up 52% year on year. Even on the ROE, our normalized ROE is around 28%, which is up around 198 basis point year on year, and we are growing at 50% with a stable return on capital. This is the thing I would most like you to take away from this slide. Going to the next slide. Yeah, this is the slide which are the reported numbers exactly as filed with the exchanges last evening and also reviewed by our auditors, Deloitte. Starting from the top left, the revenue from operation has grown at a 51% year-on-year and 15% sequential basis. The total income grew at 49.8%. There is a small element of other income which has remained stable. It has not increased. That means that the total income is fueled by growth in the revenue from operation and not from other income. The growth is also supported by volume. My item ordered has increased 45%, live item has increased 41% year on year. Live subscribers are increased 36%. Our occupancies has remained stable at 85%- 86%. On top of that volume, we grew our realization as well. Our average revenue per item rose around 6% year-on-year and around 7% sequentially to INR 1,663 for this quarter. We added assets, we kept them rented, and we earned more on each one of them. The reported EBITDA, EBIT and PAT may appear to fall, but there are some non-recurring items in the financials, both in the current quarter as well as in the base quarters. I will take you through the waterfall to give you more insight on that. Vinita, if you can go to the next slide. Yeah. On the fourth page. This is the normalization bridge which we have created so as to give you idea of what kind of non-recurring items we have removed from the calculation so as to get a normalized and sustainable EBITDA and EBIT and PAT. Starting with the Q1 FY 2027, in the EBITDA and the EBIT bridge, we have added one time fire loss. Geetansh has already highlighted, I am not adding much to it now. We had a fire in Noida warehouse where we lost some of the assets, and the total value of the loss is around INR 113.7 million. That we have added as it is a non-recurring item, exceptional item, and it is also marked as an exceptional item in our limited review financials. On the PAT, same INR 113.7 million is also there, and there is a deferred tax asset also. We had created deferred tax asset in September 2026. The deferred tax asset is not there in the last June financials. To make it comparable with the current quarter one FY 2027, we have highlighted this also as a normalization, so that analyst can have a clear comparison between two. I would like to reiterate that we have not paid any cash outflow of tax in this quarter. The entire INR 27.3 million is deferred tax, which is an unwinding of the deferred tax asset created. Similarly, in quarter four, FY 2026, which is the previous quarter, there is a non-recurring item of INR 29.3 million, which is some old past liability which we have written off. Again, in quarter four, in the PAT bridge, you can see that there is a deferred tax adjustment where some of the deferred tax expense was created on account of unwinding of the deferred tax asset created in September. If you can go on the third slide, Vinita. After adding those normalization, our EBITDA margin have grown. Our normalized EBITDA has grown from INR 348 million to INR 523 million and has remained stable at 41%. Our normalized EBIT has grown from INR 194 million to INR 293 million and has remained stable at around 23%. Our normalized PAT has grown from INR 128 million to INR 219 million, which the margins have increased from 15% to 17.3% because of the finance cost. On the ROE and ROCE, ROE has remained stable at around 27%- 28%. ROCE has remained stable at around 26%. We have been able to reduce our cost of debt consistently. In quarter one, my weighted average cost is around 9.58%, and the latest debt which we have taken or availed is around 8.95%. We are borrowing at a very competitive rate versus what kind of returns we are generating. The gap is very lucrative. We have also given Ind AS to IGAAP conversion in the annexures, and this can help those analysts who are modeling our business on the basis of IGAAP. Similar adjustments are there in the Ind AS to IGAAP. All our warehouse rentals and experience store rentals gets converted into ROU, right of use asset. Because of that, the Ind AS EBITDA is little bit more than the IGAAP EBITDA. However, on the PAT level, PAT level are almost similar. Our Ind AS and IGAAP PATs are not very different. I will take a pause here, and I will open the cohort for questions. Thank you. We will now open the call for questions. Kindly raise your hand to ask a question. We will unmute your line. Please announce your name and organization name before you ask the question. As a reminder, we request all the participants to restrict themselves to two questions and come back in the queue. Our first question is from the line of [Bala Murali Krishna]. Bala, please go ahead and unmute yourself and go ahead with your question. Yeah. Good evening. I am [Bala Murali Krishna] from MoMoney. It is a great journey, IPO journey. It is a good listing also. In the business perspective, I would like to know from the existing cities where you are there will be some addition of new people coming to cities, and they will take rentals, so that the market will grow maybe at that 10%-15%. What is the plan to enter any new geographies in the current year or in 2, 3 years down the line to have some exponential growth? No, so definitely. Thanks, Bala. I think we definitely don't see this as just an urban phenomenon where most of the growth. I think if India has to grow to a $7 trillion - $8 trillion sort of an economy, I think most of the other geographies will have to play a significant portion. Of course, Indore and Lucknow won't be as big as Bangalore, but at the same time, which is something that we have disclosed in the RHP and the DRHP as well, that Lucknow and Indore are in fact growing at superb exponential rates. This is something that we realized during the COVID timeframe, where a lot of people were moving back to their hometowns. They were not availing this relocation as a free service. That's when they told us that, "Why aren't you there in Indore and Lucknow?" That's how slowly and gradually we started understanding that expanding the network base is also helping create that network effect that we want. So that's a great value add that we provide to the consumer. So expanding cities is not just a growth lever, but also a great experience lever for us. As highlighted in the RHP as well, these are some of the cities which are growing fabulously well. From time to time, of course, there is a certain list that we'll continue to expand the number of cities as we go forward, as we clearly don't see this just as an urban phenomenon. Yeah. Thanks. So do you have any number or number of cities, do you want to enter in this year, new geographies? I- Any planning on that? No, I would refrain from any future expectation setting. It is definitely in the roadmap. If you see it as a lever, I do not know. As I said, it is a growth lever and experience lever both for us. How much of that will translate into what sort of a growth and all of that, I will refrain myself from setting any expectations for that. Yeah, thanks. On the growth front, I think in the last three, four years, you have grown around 40% CAGR. Do you expect the similar kind of numbers in coming years also? Do you think any challenge is to maintain that run rate either at EBITDA level or at revenue growth front? No, in fact, if you see, of course, till FY 2026, we had been growing at 40% CAGR, and that is something that we disclosed in the RHP as well. In fact, between FY 2025 to 2026 itself, the growth CAGR was around 45%. It jumped suddenly in the FY 2025 to 2026. As you can clearly see in quarter one, it is almost like a 50% up. Let me just restrict my response more from a quarter perspective. We are fairly hopeful of the historical trends that we have seen in the past. As I said, and I mentioned in the initial opening remarks as well, the keyword strength is a great indication. Most of the market today is actually growing at the back of it, more of an organic behavior. It is not so much. In 2015, the paid funnel was almost nonexistent. In fact, today, there is a small portion of keyword funnel which is out there. That is the reason because of the organic behavior, it is not that because of capital, you can just purchase a lot of these consumers because the paid funnel is small. More and more, if somebody, the largest player in the ecosystem would have the biggest network effect to play out, and potentially will have the capacity to grow. But certain degree of future can also be seen in terms of the way, historically, the keyword volume is growing. Yeah. Thanks. One small suggestion. So on the guidance front or any forward-looking statement, I think earlier you were bound to [orange terms]. Now, you can share your business plan if you are comfortable. Most of the times it would be okay, that things will happen, sometimes it will miss. But maybe you can rethink on that one, to whether you can restrict yourself and sharing, or maybe you can share some outlook to the investors. It is things followed by all other companies also. I just want to give you some color. No. This was also our first one, so we are also learning and trying to understand the expectations of everyone. We will definitely point note it, and we will deliberate on this, and hopefully, we will be able to share you more guidance in the future. Sure. Thank you. Thanks a lot. All the best. Thank you. The next question is from the line of Pratham Kankaria. Pratham, please go ahead and unmute yourself. Pratham, I think you are on mute. Yeah, Pratham, please unmute yourself. We will move to the next question. Maybe Pratham can join in later. Next question is from [Della]. [Della], please announce your organization name and go ahead with your question. Am I audible? Yes, you are. Yeah. Great. Hi Hakim, hi Geetansh. Hey, [Della]. Hi. Congratulations on a good set of numbers. I had a couple of questions. Given the growth has been quite strong at 51%, and most of it has come on the back of subscriber additions, could you help understand the mix between organic, inorganic user traction in this quarter? How should we think of this 36% subscriber growth number? Are these on additional impetus on, say, performance marketing, et cetera? Also, if you could nuance the offline salience to this growth a bit more. Sure, [Della]. I would be able to clearly give you an understanding of the traffic at least. 60% of our traffic is still coming organic. That gives you an indication of what is the biggest bucket for us in terms of the acquisition so far. Of course, in the last couple of years, we have also added offline as a spectrum, which you just mentioned. I would be able to say that's almost has grown close to about 83% year-on-year. That's an important strategy for us going forward, but it's a mix of organic, and I would say offline is also playing a little role into it. Paid, from a traffic perspective, continues to be around that 30% -odd, if you strike off the referrals again. It's still important, but compared to the organic behavior, I think it's still less significant. Got it. Any sort of guidance to opening more experience centers in the quarter, in the year? I'll refrain again from being our first call. We'll also learn, I think, as we go forward, and we'll be able to give more guidance in the future. But definitely, historically, you can clearly see that's been an important strategy for us because that goes on to show that our EBITDA numbers could have been a lot more better if we were not investing into this long-term strategy for us. But we continue to do that because that's the belief that we have. So there's a certain degree of cushion on the EBITDA side, and as of quarter one ending, we have added close to about 89 stores. So that's where we have ended in terms of the store strength. So we're consistently adding since last 2.5 years. Got it. My second question is on seasonality in the business. The first quarter came in at 51% top line with about 100 basis points margin expansion year-on-year. So for the full year, how should we think of the growth? Also, if you could nuance it with quarter-on-quarter seasonality, is the swing quite drastic or is it range bound? No. The seasonality will not impact your YoY because— Yeah, even QoQ. Just want to understand the seasonality in the business. I would urge, purely from my standpoint, I think the best way to look at this business is purely from a YoY perspective. Because of course, March kicks off with a lot of summer season, a lot of lateral hirings and so on and so forth, and slowly and gradually it gets coupled with a lot of people joining the workforce. I think a lot happens. I think the first two quarters are definitely great from a revenue perspective, and some of the other two quarters are also good from a profit perspective. That's where the seasonality exists. Maybe a coupling of summer season along with lateral hiring is what gives it a great degree of. Because at the end of the day, there's been a big misconception, I think, that the business is for those young professionals, those who are just joining the workforce. I think it has a lot to do with the mobility that we are seeing in the ecosystem and the kind of switches that we see in the ecosystem. In fact, as per the EPFO data, 50 lakh jobs used to get added, which has jumped up to close to about 2 crore a year till FY 2026. So that gives us a certain indication of the kind of mobility which exists, and that definitely helps us. If we ignore the seasonality YoY, if a certain month has given a certain YoY, historically we have seen that kind of gets retained. Got it. This quarter you had called out average revenue per item was higher about 7% year-on-year on air conditioners. How should we think of it going ahead? Will that 7% sustain through the year given that there's seasonality in? Hakim, have you mentioned air conditioners specifically, or would you like to take this? [Della], so our business is very much cumulative business, so even one quarter deployment will not change the revenue or the RP so much because the revenue is built on the accumulation of the past deployments. Only a proportion of the revenue for this quarter will come from the deployment of current quarter. Most of the revenue is coming because we have already deployed some of our assets in the past quarter. So this is a very, I don't know whether I can say this, but this is very predictable nature of revenue. Because once I deploy the assets, those assets give me revenue for the next 18 months. Got it. That's quite clear. I just want to squeeze in one last question. So with roughly 3 lakh subscribers that we have at RentoMojo and probably another 3 lakh from peers and long tail, what's the kind of user penetration that we're looking at with maybe 6 lakh of organized subscribers in the market? How should we think of that market growth rate at large? They are close to about roughly about 4.8 crore rental apartments, 3.8 roughly within the kind of income bracket that we perform in. Within that, almost 1.8 crore pretty much churns out every year. One can argue that a couple of them would have a little bit of family, large family or a joint family also churning out every year. But I think the entire ecosystem sitting at, let's say, maybe 6 lakh- 7 lakh subscriber base today is not even acquired a fraction of the overall number of rental apartments within the income bracket that we are in, which is everything purely from, if you look at some of the keywords, like a rental keyword as a fraction of the purchase, it is just about close to about a percent right now. Some of these indications only goes on to say that the awareness for this proposition is slightly lesser. The biggest driver in absence for a large paid funnel. The driver of the industry right now is the network effect that you can create with your own base. That is what we are seeing. That is what has been giving that 20% CAGR in terms of the keywords that we are seeing and the industry growth that we are seeing right now. Got it. This was very helpful. Thank you so much, and all the best. Thank you, [Della]. Thank you. Our next question is from Manish Ostwal. [Manish], can you please announce your organization name and go ahead. [Manish], please unmute yourself. You are on screen. Is there an issue with the mute, Vinita? Can you just check? I hope it is not. I hope people are able to unmute. No, as we already mentioned, they have to give permission to Microsoft for unmuting to allow access. If they have not done that, then they will not be able to unmute. Okay. Okay, we will take the next question from Dikshant Gupta. Dikshant, please go ahead. Hello? Am I audible? Yeah, Dikshant. Yes. Yeah. Hi, sir, and congratulations for the very good set of results. Thank you. I just wanted to understand a bit of the unit economics, such as what is your payback period and refurbishment cost, et cetera. Let's say you purchase an asset for INR 10,000. What is the rental that you get on it, and what is the refurbishment cost when it changes hand? Of course, like any CapEx business, like a manufacturing or a hospital or like a hotel, this is of course if you put in $100, how quickly are we getting that capital back and what sort of a revenue multiple that you can generate. I think we mentioned that in the RHP as well that as per the 2017 cohort, it was almost like 5x revenue was built on that index to $100, of course. 2017 cohort was, of course, a couple of million dollars, but if you index that to $100, that generated 5x the return. I mean, 5x the revenue multiple, and about almost 56% of the products were still generating revenue for that cohort. So that gives us a certain degree of sense of the kind of useful life that there is in the business. Of course, the paybacks are lesser than the useful life. But of course, yeah, that's what I would say. We haven't disclosed the payback as such. But there is a considerable difference between the payback and the useful life. Coming back to the second question that you asked, which is the repair and maintenance as a fraction of the revenue, I think this is something that we disclosed, was around 6%, I think, which is there in FY 2026 as well. We spent close to about INR 20 odd crore in terms of the consumables. This doesn't include the technicians and carpenters altogether. In FY 2026, it's out there. We spent around almost INR 20 odd crore on a gross block of roughly about INR 460 -INR 450 odd crore of the gross block that we had. So that's the kind of repair maintenance that we spent, and roughly about, I would say INR 49 -INR 50 odd crore that was spent on depreciation. So roughly about INR 70 crore that was spent on a gross block of roughly about INR 450 -INR 460 odd crore, which gives you a 6x sort of a life. If you divide the INR 460 odd crore divided by the INR 70 odd crore, that's what it should translate to. So that's what I would say, Dikshant, for now. Thank you. Are your stores running under the COCO model? Currently, what is the online versus offline revenue mix? It is completely company operated. All the 89 stores are company operated for us. The YoY growth in the offline that we have seen is roughly about, as I said sometime back, close to about 83%. Sorry, 83% is the growth or the share? The growth. What would be the share out of the total revenue? This is something that we can take it offline. For more questions around the store economics or anything like that, happy to connect offline and either with me or with Raadhi's team. We would be happy to assist you with that. Sure. Definitely, I would like to connect with you all offline. Sure. Thank you. Thank you. Our next question is from [Manish Poddar]. [Manish], please unmute yourself and go ahead with your question. Hi, team. I have two questions. One is, if you could help me with the balance sheet situation right now. Let's say, what is the gross number and how much is literally cash or debt number which is there on the balance sheet today? Hakim, would you like to take this? Hi, [Manish]. [Manish], we have not presented the balance sheet, being the quarter one. I would refrain from giving any numbers as of now. What we have disclosed as cost of debt, the latest cost of debt is around 8.95%, and the average is around 9.5 odd percent. But Hakim, maybe you can specify the FY 2026, where you were in terms of the debt to equity and what sort of a net worth addition happened Yeah. Okay. Frankly. Maybe slightly more clustered and of course, we can connect with him offline and try and give him more picture. [Manish], we had a debt of around INR 180 crore-INR 185 crore in FY 2026 with a cash of around INR 35 odd crore, so net debt of around INR 150 crore. And on that, the net worth was around INR 290 crore, so we were at a very healthy debt to equity ratio of around 0.4x to 0.45x. And with this IPO, we are raising around INR 150 crore capital. We have raised INR 150 crore capital, so my net worth will become around INR 440 crore plus some profit, which will be added in the H1. So by September, it will be INR 450+ crore, and accordingly, you can model the debt equity ratio. The debt equity ratio is still at a very healthy ratio. Okay. And just if I have to understand this, the purchase pattern which we generally do. If you can help me understand, let's say last year, generally, whatever you purchase in Q1, how much is that of the full year purchases, if I have to think about it? That number typically is not handy with me. Maybe we can connect offline and I can share that with you. Okay, no worries. Thanks. Thank you. Our next question is from the line of [Raj Shah]. [Raj], please unmute yourself and go ahead with your question. Please announce your organization name. Hi, are you able to hear me? Yeah. Yes. Hi. [Raj] here from Prudent Asset Management. I wanted to understand in terms of our growth. Going forward for the next two to three years, what mix of growth can come from subscriber growth and just a mix between subscriber growth in terms of the number of items per subscribers and the ASP growth as these three mixes to understand the total growth that we can do? [Raj], historically, we have seen the item per user move from roughly about 2.3 to, as it stands today, close to about 2.8 something. That has been a pretty, I would say, decent lever in terms of the overall revenue growth that we are seeing. Subscriber additions continues to be the biggest lever in terms of the growth historically, and item per user. RPI, I would say, the rent per item has remained broadly same historically. Let me give you that understanding. But predominantly, it was a mix of subscriber and item per user that we are seeing change in the business. Okay, understood. Secondly, on the agreement that we have signed with Dixon, currently what are we sourcing from them? Because of this sourcing, what kind of cost reduction can we see in terms of per item basis? Because these will be slightly lower cost as compared to branded products. What cost reduction can we see and what is the mix that you see going for over the next three, four years from this agreement? The discount, of course, depends a lot more on volume and the kind of terms and the kind of working capital terms that you have, et cetera, which also fluctuates a little bit. I would say with Dixon, we are predominantly getting our refrigerators and washing machines at the moment. It has been an important relationship for us, but we are building these kind of relationships across with some of the other contract manufacturing companies as well. Predominantly, it is refrigerator and washing machine. Understood. Just lastly, what will be our gross block addition for this year? For FY 2026? 2027. 2027, it's just been first quarter. I can talk about FY 2026, that was close to about INR 170 odd crore. Okay. Thank you. Our next question is from [Naveen Kaushik]. [Naveen], please unmute yourself and go ahead with your question. Please announce your organization name. Yeah. Am I audible? Yeah. [Naveen]. Yeah. I am [Naveen] from ithought PMS. Just a couple of questions. They are pretty much follow-ups to the previous participant. First, just want to understand, again, the share of our gross block that we have from Dixon versus from other manufacturers and more of the economics part of it. Essentially, if you are doing further CapEx, what would our preference be with respect to private label versus other brands? I just want to understand a bit about this. [Naveen], that number is not handy. Okay. We will, of course, pull that number and maybe try and get you. What I would say is we are not biased around a private label or our own brand or anything like that versus another brand. We still have Wakefit on the platform. We carry Duroflex mattresses altogether and wonderful relationships that we have with them. We, of course, take it from Haier, Samsung. There are multiple brands which are also running on the platform. It all depends on the kind of demand behavior that we are seeing for a certain SKU. The back end is more about we are perfecting over and over many quarters and over many years, we are perfecting our inventory prediction algorithm, which doesn't bias between a private label or a non-private label at all. Our procurement is completely dependent on the demand that we are seeing from the consumer. In some categories, you might see the brand being an important parameter to take up even on entry. In some categories, maybe price would be. Basis that, we go ahead and purchase. Got it. My next question would be on the fleet addition. I do not need exact numbers for the gross block additions this year or next year. What I want to understand is how you evaluate adding to the gross block in the first place, and essentially, do we think about it in terms of budget, or do we think about it in terms of size, in terms of market share? I just want to understand how we go about planning. Of course. Next supply addition. The supply addition, as I said, it is a complex inventory prediction algorithm that we have perfected over many years. For most of the typical, let us say, if you are in a selling business, all you need to figure out is what sort of a traffic which is coming in, let us say, add to carts and whatnot, and then look at the funnel and try and estimate a certain degree of demand. Basis the impressions that you are seeing on the paid side, organic side, whatnot. Here, the complexity is not just predicting demand, but also at the same time predicting churn. So there are several predictions which are happening. So I would say we have to predict demand, we have to predict churn, we have to predict how many we will be able to repair on a daily basis, and that has countless consumables at the back. We have more than 200- 300 SKUs and countless 1,000 + consumables at the back that we need to figure out, do inventory prediction of them at the right time, maintain the inventory days for that. If the consumables is there, maintain a prediction of the attrition of the technician and carpenters, and somehow, miraculously predict that how many of, let's say, a certain refrigerators we will be able to push from a refurbishment bin to a deployable bin. These are three different predictions running at the back. Of course, as a company, we have tried to balance both growth and return on capital at the same time. That's why you are seeing a 40% growth and a good 25%- 26% return on capitals last several years. There is a certain degree of budget angle to it, as you rightly pointed out, that defines the traffic, that defines the multiple variables that flow through, multiple variables that goes into churn, multiple variables that goes in terms of the refurbishment activity. Then multiple variables that goes in terms of the supply chain, because the vendors are all across PAN India. You need to use the supply chain somehow to ensure that your products are also reaching those warehouses on time. That reflects on the occupancy. We don't find 90% occupancy good. We don't find 65%- 70% occupancy good. We have been able to see a good sweet spot of around 83% - 84%. Which has not been too aggressive in terms of the stock that we are seeing a little bit of warehouse capacity unutilized. At the same time, not so conservative that we are consistently going out of stock. We have been able to maintain 83%- 84% occupancy, which is a direct outcome of the inventory prediction model that we have. Maybe a small follow-up on this. I just want some perspective on the funding angle of this, right, and the scale, especially. Essentially, cash flow before financing for us was. I don't think we had any cash flow before financing for FY 2026, and then also not earmarked any IPO proceeds for the same purpose. I just want to understand, at what scale of business or rather, does the scale of our current business have a bearing on how much supply addition we want to do? Will it grow as the scale of the business grows or? I would say we are comfortable there. Let me not give you a great degree of guidance, but let me give you a lot of comfort that we are not restricted by supply at all. We are generating almost INR 170 crore of operating cash flow for FY 2026. INR 170 crore went in terms of buying CapEx. With what Hakim mentioned, the debt to equity was not even 0.5x to 0.6x. You can imagine the kind of leeway that you have there, where a bulk of your accruals is going into CapEx. Then comes the waterfall that you can take external debt, and there also you can go up to a certain debt to equity. We are definitely not constrained by our aspirations of growth. That is definitely not the case. That is something that I would love to give you that comfort. Yeah. Got it. Thanks a lot for your time. Yeah. This is very helpful. Thank you. Thank you. Due to time constraint, we will take the last question for the day. We have [Chintan Shah]. [Chintan], please unmute yourself and go ahead with the question. Hi. Thank you so much for the opportunity. I had two questions. One is, right now we are sitting in a scenario which is inflationary, especially on the consumer durable side, and potentially we could also see some increase in interest rate, a cycle over probably next a few quarters. Two things that I want to understand. One is, how does this inflationary and increase in interest rates scenario impact our business in terms of your subscriber behavior and growth perspective? Second, just wanted to understand our strategy to tackle this, probably in terms of pricing, et cetera. Those were the two aspects, if you can throw some light. [Chintan], I will take the second one first. With respect to, of course, this is challenging times where a lot of interest rate sensitivity has. Our business is not a spread business at the end of the day. It is a business of payback and useful life. It is a business of occupancy at the end of the day. Marginal 1%, 2% here and there does not impact the return on capital that much. Some of you would have some of our earlier models that we would have gave. Most of us can calculate the sensitivity of return on capital on the interest rate, which is not going to be so high. That is one. B, of course, as the supply chain gets constricted a little bit, we have historically seen, let us say, some of the costs going up in packaging, but repairs itself is almost about 6% of the revenue, so that does not impact that much. Some of the places where the pricing goes up. See, we are not in the business of selling at the end of the day. The benchmarks are also not clear. In some cases, maybe the benchmark as a proposition for the consumer can be purchase, for some it can be maybe a furnished apartment, for some it can be a secondary. The benchmark is not as visible. Any which way, even if it is a 10% - 20%, 30% increase in terms of the price, imagine if you are paying that 20% increase in the next 18 - 20 months. That purely from a hit perspective, if you are in the purchase business, this hits because a 20% you are paying on day one. If you are paying over a staggered, in a subscription plan over many months, that also helps you at the end of the day. I think that should give you some sense of the lens where I am going with these two variables. All right. Understood. Just two follow-ups here. One is basically, suppose the cost has gone up, say, around 10%-15% odd. There is a sharp increase suddenly that has happened on the consumer side. Probably your purchase cost or supply cost increases. But how do you pass this on? Is it like a gradual mechanism where you keep on gradually increasing prices, or is it more of a one-time activity that you will do just immediately? No, sir. Our rentals are always a function of the kind of procurements that we are doing. Let's say, that's a lever that is always there with us. Should we pass it back? Will it decrease something for us? But largely what I want to say is maybe a 10%-15% staggered over 18 - 20 month period has not so much of a sensitivity on the conversion funnel or on the margins as we are giving as much importance to. The sensitivity is less to the conversion funnel or to the margins. Got it. Because it is staggered over 18 - 20 months view. Got it. Understood. That is clear. Just one more bookkeeping question. If you could just spell out the unrecognized contracted revenue as of end of Q1 FY 2027. I believe FY 2026 end it was INR 293 crore. The same number you can highlight for Q1 FY 2027 end. Hakim, you would have that handy. We just discussed just yesterday, I think. You are asking about contracted revenue, right? Yeah, the unrecognized part. Ending quote. The total contracted revenue which we contracted this quarter is around INR 5,544 million. Unrecognized is around INR 4,079 million. INR 4,079 million. INR 408 crore. Okay. Got it. That's all from my side. Thank you so much for answering my question. Thank you, [Chintan]. Thank you. That was the last question for the day. Thank you once again for your time and participation. On behalf of RentoMojo Limited, this concludes today's conference. For any questions, please feel free to write to us on the email IDs mentioned on the invite. We appreciate your engagement. You may now disconnect your lines. All right. Thank you. Thank you, everyone. Thank you. Thank you.