Dollar Industries Limited (NSE: DOLLAR) Q1 2026 Earnings Call dated Aug. 12, 2025
Corporate Participants:
Unidentified Speaker
Ankit Gupta — President – Marketing
Gaurav Gupta. — Vice President
Ajay Kumar Patodia — Chief Financial Officer
Analysts:
Unidentified Participant
Sumant Kumar — Analyst
Divyansh Thakur — Analyst
Shubhankar Gupta — Analyst
Sameer Gupta — Analyst
Bhargav — Analyst
Deepali Kumari — Analyst
Deepali Kumari, — Analyst
Anik Mitra. — Analyst
Pulavarthi Saikiran — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Dollar Industries Q1 FY26 earnings conference call hosted by Motilal Oswald Financial Services. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sumant Kumar from Motilal Oswal. Thank you. And over to you sir.
Sumant Kumar — Analyst
Thank you. Good evening everyone and very warm welcome to Dollar Industry Q1FY26 Post Result Earning call hosted by Motila Loswal France Services limited On the call today we have management team being represented by Mr. Arun Gupta, President Marketing. Mr. Gaurav Gupta, Vice President at Strategy and Mr. Ajay Patodia, CFO will begin the call with key thoughts from the management team. Thereafter we’ll open the floor for the. Q and A session. I would like now like to request the management team to share their perspective on the performance of the company. Thank you. And over to the management team. Thank you.
Ankit Gupta — President – Marketing
Thank you, Suman. Good afternoon everyone and a warm welcome to you all. Thank you for joining us today for the Dollar Industries Q1 FY26 earnings investor call. Gaurav and I will walk you through the business and operational highlights of the quarter while our CFO, Mr. Ajay Patodia will share the financial metrics. Before we move into the financial results and operational highlights for Q1 FY26, we would like to express our sincere gratitude to our shareholders, analysts and stakeholders for joining us today. Your continued support and engagement remains invaluable as we navigate both the opportunities and challenges within our industry.
We would also like to draw your attention to the Safe harbor statement included in the earnings call presentation. We request all participants to review it before the Q and A session begins. Let me start with the broader picture. The outlook for the Indian apparel industry remains strong. With its market size estimated at $108 billion in FY25. And it’s expected to grow at a healthy 9% CAGR until FY31. This momentum is being driven by rising income, higher discretionary spending and greater access to products through E commerce and quick commerce. With our strong brand presence, expanding reach and focus on premiumization, Dollar Industries is in a great position to capitalize on these opportunities.
Importantly, we have not been impacted by the recent tariffs imposed by the United States as we have no exposure to the US market with a favorable industry trend. We have delivered a strong start to the year with operating income for Q1FY26 reaching rupees 399 crores representing a healthy 19.6 year on year growth. Volume increased by 18.7% compared to Q1FY25. Our premium segments continued their strong growth trajectory delivering 24% year on year value growth and 19.4% year on year volume growth with the average selling price rising 3.8% year on year. Force NXT recorded 21.5% year on year value growth and 18% year on year volume growth.
Our athleisure segment grew 14.3% year on year reflecting strong demand for versatile apparel. India’s athleisure market, valued at $13.15 billion in 2024 is projected to grow at 5.5% CAGR indicating a promising long term opportunity. These results reflect our strategic focus on driving growth through premiumization and enhancing the revenue contribution from high margin products which is positively influencing our ASPs. Additionally, stable raw material prices are expected to support and further strengthen our margins going forward. We would also like to draw your attention to our cash conversion cycle which stood at 173 days in June 25th. This is primarily due to two factors.
First, quarter one is typically the smallest quarter of the year and for calculation purposes the Q1 FY26 revenue has been annualized which mathematically inflates the number of days. Second, the higher inventory levels reflect the production of thermals for the upcoming two quarters which are higher value products. We remain focused on reducing our cash conversion cycle to around 150 days by the end of this fiscal year and improvement of approximately 10 days compared to last year. Thank you. Now Gaurav will provide further details on the business and operational highlights of the quarter.
Gaurav Gupta. — Vice President
Thank you. Ankit in Quarter 1 FY26, Dollar Industries, Modern Trade, E Commerce and Quick Commerce channels delivered strong momentum recording value growth of 65.2% and volume growth of 82%. Year on year these channels contributed to 12.2% to total revenue up from 8.7% last year, a rise of 351 basis points. A significant growth driver has been the Quick Commerce segment which continues to create new avenues for consumer engagement. We remain highly optimistic about its potential with its contribution to total revenue reaching 3.1% in Quarter 1 FY26. This performance reflects a broader industry shift towards an omnichannel ecosystem driven by a young digitally savvy customer base.
Premiumization remains a key trend as consumers seek higher quality and differentiated designs. While D2C and Quick Commerce are unlocking new growth opportunities, increasingly brands are also being evaluated on purpose and sustainability, making it imperative to align with evolving consumer values. Dollar Industries is actively leveraging these shifts to strengthen our market position. The growth prospects are further supported by the rising penetration of online retail in India, expected to increase from 8% of total retail sales in FY24 to 14% by FY28. Modern trade and e commerce channels also enable us to broaden our SKU portfolio leading to higher ASPs and further supporting our premiumization strategy.
Coming to region wise, Northern India accounted for 45% of total operating revenue, followed by Eastern and Western India 24% each and the Southern India contributed 7%. Our strategic partnership with Goat continues to yield strong results with the Pepe Jeans JV delivering a positive pattern Q1FY26 driven by robust growth in Modern retail and Quick Commerce channels. Further in Q1 FY26 revenue was 12.94 cr reflecting a 56.6% quarter. In quarter growth PAT stood at 1.53 cr, up 54.1% quarter on quarter with a PAT margin of 11.8%. We plan to introduce a broader product range under the JV in the coming months to further enhance our portfolio and strengthen our market presence.
Thank you. I’ll now hand over the call to our CFO Mr. Ajay Patodia to present the financial Matrices.
Ajay Kumar Patodia — Chief Financial Officer
Thank you Gauravji. Good afternoon everyone. I appreciate you all joining us for our quarter one FY26 earning call. Before we open the floor for question and answer session, I’d like to take a moment to walk you through a brief summary of our financial performance for the quarter. I trust you have had a chance to review the earning presentation and press release. While Ankitji and Gauravji have already shared their perspective on the broader macroeconomic environment, I will now focus on our financial highlights for the quarter and full fiscal year. In quarter 1 FY26, our revenue from operation rose by 19.6% year over year reaching rupees 399.13 crore.
Our gross profit for quarter 1 FY26 grew by 19% year over year to rupees 141.48 crore with a gross margin of 35.4%. Our operating EBITDA for quarter 1 FY26 was rupees 42.88 crore with a margin of 10.7%. The EBITDA margin issued at 10.9% in Q1 FY26. Finally, our profit after tax for the quarter was rupees 21.32 crores growing by 39.3 year over year translating to PAT margin of 5.3%. On the balance sheet front, our net debt reduced from 329 crore in March 25 to 278 crore as of 30 June 25. We remain committed to further lowering our debt burden with no significant capex plan over the next couple of years.
The free cash flow generated from operation will be directed towards debt repayment resulting in lower finance cost and improved profitability. We also generated a free cash flow from operation of close to 67 crore in the quarter gone by now. I would quickly run you through the brand wise conclusion for this quarter. Big boss. Our dollar main segment contribute around 40%. Our dollar always contribute around 42.3%. Our women segment dollar Mishi contribute 8%. Rainwear segment dollar Protect contribute around 4%. And our premium segment force NXT contribute around 4.2% and our dollar shops around 2%. We remain firmly committed to our strategic priorities and growth initiative aimed at driving long term sustainable profitability.
Our focus on premiumization supported by rising contribution from Modern trade, E Commerce and Q Commerce. We position us well to deliver strong revenue and profit growth this fiscal year and beyond. Thank you all. With this we will now open the floor for the question and answer.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use answers while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Divyansh Thakur from Hillview Global. Please proceed.
Divyansh Thakur
Good morning. Good afternoon. First of all, congratulations on the great results. So I had a question regarding Project Laksh. So project Laksh contributed 26% in fiscal year 24 and 30% in fiscal year 25. You have said that you target about 75 70% contribution by fiscal year 26 supported by expansion into multiple nation. So what are your company’s plans or strategies to reach this goal?
Unidentified Speaker
So in Q1 FY26 our overall contribution coming in from Lakshya project was 32% of our total revenue without any increase in the number of distributors. Like I said in the earlier call, also like a call before like year end call earnings Call the thing is that due to the intensive competition into the market and with this particular project it really disrupts the market for a time being. And therefore in order to save the market share or the shelf space at the NVO point. So we have slowed down, pasted a bit down the implementation of this project.
So yes.
Unidentified Speaker
Currently we are no very aggressive in this project. But we assure that we optimistic we completed the project within two years.
Divyansh Thakur
If I can follow up is there. So if we are going to expand then is there any margins that we are looking at Particularly if we increase the pace of project Lux by inventory management.
Unidentified Speaker
Yes, we already, we already implemented the SAP Hana in our project and we have the system from last where we have the data from the project in our system. The system DMS system is integrated with our SAP system. So we get the actual quantity, actual quality which is required it at every state and in every pin code. So accordingly we planning our production and we control our inventory. And for this reason we expect this year we we achieve our target to reduce the working capital days in the current year from 160 to 150.
Divyansh Thakur
Thank you so much.
operator
Thank you. The next question is from the line of Shubhankar Gupta from Equity Capital. Please proceed.
Shubhankar Gupta
Yeah.
Shubhankar Gupta
Hi. Am I audible?
Unidentified Speaker
Yeah, yeah.
Shubhankar Gupta
Actually I have two questions. So first question is around E Commerce. So what have you done differently over the last one or two years for the uptick of modern trade and E commerce channels? That’s one second is roping in large stars like Mahesh Babu for South India. South India promotion. Has it shown any goodness and how are we reaching that?
Ankit Gupta
So Gaurav, do you want to take this? Hi.
Gaurav Gupta.
So in E Commerce what we have done is we have really, you know, driven deep into the various portals that are available. Same Indra Flipkart, Amazon. We have decided to tie up and kind of, you know penetrating all the kind of business models that they have to reach the customer and reduce the tat. Because to in today’s world what happens is the customer is not ready to wait for the product. So you know they have got different models and different warehouses across India where your product if it is made available, it reaches the customer at a faster pace.
So we have explored that segment in depth that is about E commerce and coming to modern retail. LSS channels. We have tied up with Walmart, we have tied up with Spencers, we have even given to Vmart V2. So we are expanding our doors with respect to them as well. So this is in regard to the E Commerce and lfs and how we are expanding into them. Coming to about, you know, our association with Mahesh Babu as a South Indian brand ambassador. See, it definitely has, you know, created a buzz in the market. But South India being a very, very tough market because the local brands and the presence is so strong and you know, to change that mindset and to, you know, declutter that, it’s a long process.
So to comment anything in regard if it has actually, you know, benefited us in numbers will be a very difficult thing to tell. But it’s a long process.
Shubhankar Gupta
That’s fair. So I think in terms of South India, right, as you rightly said, it’s a tough market to penetrate because of local presence. What I’m trying to understand more granularly is how are we gauging that? And let’s say one way could be that in FY24 or 25, in the midst of that and post that one year, let’s say our presence, our old revenue from South India was X and now it’s Y. So if you could share that number, could probably give some early signs as to how it’s coming up, coming along.
Ankit Gupta
So Ajayji, can you share the numbers with them?
Ajay Kumar Patodia
Yeah. So Shubhankar, the thing is that in South India, like Mahesh Babu is so first we have to understand that all the five states act very differently and they have their own set of culture rules and liking, disliking and everything. Right. So Mahesh Babu is very famous in the state of Talendana and Andhra Pradesh. He has some kind of a penetration in Karnataka, but not much in Tamil Nadu or Kerala. So with Mahesh Babu, like if you talk about Q1, we have seen Andhra Pradesh growing by around 40%. Whereas at a company level we grew by 19.9%.
But in Andhra Pradesh we grew by 40%. And in Telangana also we got a good growth which was somewhere around 20, 21%. But overall, to see the actual effect of Mahesh Babu in the market, it’s a gradual process. So it will happen with time. Maybe in next couple of years we’ll be able to see a very big change in South India market penetration because we have changed the entire packaging also as per the South India, we have added the local language also in the packaging with Mahesh Babu picture and everything. People are liking it. We are getting good feedback from the retail point also like the from the MBOs, we are getting a very good feedback about it.
So it’s just a matter of Time and we are very hopeful that it will take off.
Shubhankar Gupta
Makes sense. Makes sense and that’s helpful. Thanks a lot.
operator
Thank you. The next question is from the line of Sameer Gupta from India infoline. Please proceed.
Sameer Gupta
Hi, good evening sir. Thanks for taking my question. Sir, few like in last week your competitor reported and they highlighted that overall industry trends have remained very sluggish. In fact they themselves saw a very steep moderation and you have grown 19%. I was looking at Lux industries number they have grown at 12%. So just wanted to understand overall industry like have the competitors exited some markets which has resulted in you gaining shelf space? Are consumers down trading from higher premium levels to you know, mid premium levels? Have you seen any increase in receivables this quarter? Just some color on the overall growth performance in industry.
Ankit Gupta
So see one thing we need to understand that Page operates in a very different market segment. Their target consumer is very different from our target consumers. And if you see Page industries they mainly sell through their EVOs large format stores which is like modern retail. What we call a great percentage of the sales comes from organized channel and not from trade channel. Right. But in our case mostly our sales comes from trade channel and very less like around 10 to 12% from modern channel like organized retail I would say. So there’s no down trading happening in the market.
Yeah, maybe it may happen. So that consumer could fall at a EBO level or a large format level might be sluggish. But what we are able to see in the market is we are getting good demand from our distributor point and the MBO point. And even if suppose there was so much sluggishness in the market then our luxury areas would have degrown. But let me give you an example. Like Haryana, Gujarat or Odisha where we have 100% rollout done. These states are completely under Laksha project and in Gujarat we have grown by around 25%. Haryana we have grown by 18% and Odisha we have grown by around 20%.
So the reason why I’m citing these examples are because whatever the distributor sells to the MBO we replenish to the distributors on a weekly basis. So these growth signifies that on a secondary level also the goods are moving and there is no inventory getting stock up at a distributor level. So I wouldn’t say that it’s very much sluggish when we talk about trade channels.
Sameer Gupta
Got it. So basically different segments in the market are behaving differently. That would be a conclude like that.
Ankit Gupta
Would be an interpretation. But there’s no downgrading which is Happening like a person wearing a Jockey wouldn’t be wearing a big boss. He might, he might go and try Force NXT which is our premium product and equally comparable to Jockey. Because if we see our Force NXT growth also we have grown by around 18% this particular quarter.
Sameer Gupta
And how much is Force NXT now for you as a percentage of your sales?
Ankit Gupta
So it’s around 4.2% to our total revenue contribution.
Sameer Gupta
Got it, Got it. That’s all from me. I’ll come back in the queue for follow up sir, thanks for this. Thank you. Thank you.
operator
The next question is from the line of Bhargav from Ambit Capital Asset Manager. Please proceed.
Bhargav
Yeah, good afternoon sir and thank you for the opportunity. So my first question is that in the fourth quarter we did have some additional discounting which was being done by the industry as this discounting started reducing. Or the intensity still continues to be very high.
Ankit Gupta
Hi Bhagavj. The thing is that the competition is still intense in the market and the thing is that the discounting that we are, the extra schemes and incentives that were given in quarter four it has started reducing but not up to a optimum level where we would be telling that we are satisfied with the pricing level. It is yet to come down and gradually I think in a couple of quarters we should see some changes happening.
Bhargav
Okay.
Ankit Gupta
Secondly sir, we’ve reduced the debt by about 51 odd crores in this quarter. Is it fair to assume that by the year end we can reduce about 100 odd crores given that free cash flow generation this quarter was also impressive at about 67 crores.
Gaurav Gupta.
Yes Bhargavij, we already reduced 50 crores and we are target to reduce more within this year. Our ultimate aim is to buy by FY28. We have put the company to be net debt free and already now my commentary, our management want to release the working capital and there is no CAPEX plan in next two years. So all the all the release working capital amount is adjusted toward the net only date only. So we are very hopeful that we take, we achieve our target.
Unidentified Speaker
And lastly sir, obviously we reported very impressive 19% volume growth. But fair to say that the secondary market has also seen equivalent growth or there is some inventory that the channel may be sitting on given the upcoming festive season.
Ankit Gupta
So it would be a mix of both I would say. But given the scenario that we have seen in the Lakshya area there has been equally equal amount of growth that we have seen in the secondary market as well. Because over there in Lakshya area we don’t stock up inventory at our distributor level and we don’t push our products. Right. Whatever they sell to the mbo, we bill it to the distributor on a weekly basis. And seeing that scenario, seeing the secondary data like billing from distributor to the nbos, we have seen a good jump in the secondary also.
So it would be unfair to say that people have stocked up the goods and we have pushed to them. So I think it would be a blend of the two and more contributed towards the secondary growth. Only.
Ankit Gupta
In terms of advertising cost, how is the trend on a YYY basis? Is it falling or it continues to remain on a growth path.
Ankit Gupta
So in Q1, in Q1 our advertisement cost was somewhere around 29 crores with respect to 24.5 crores last year. So it’s a 18% growth. But overall on a year. Overall on a year, on year basis like on a full year basis we’ll be capping our advertisement cost to somewhere around 85 to 90 crores which should last.
Ankit Gupta
And lastly in terms of your luxury areas, what has been the volume growth? Is it possible to quantify?
Gaurav Gupta.
So in Lakshya areas, if you talk about all the states who have been rolled out fully, like if you talk about Gujarat, so there we have seen a volume growth of 25%. Haryana, we have seen 18%. Telangana. Sorry Andhra Pradesh, we have seen around 50% kind of a growth. And if you talk about Odisha, we have seen 21% kind of a volume growth where the project is still ongoing. So there it’s somewhere around 12 to 13% kind of a volume growth.
Sameer Gupta
And the working capital in these areas would. How much?
Sameer Gupta
Sir, Sorry.
Unidentified Speaker
With the luxury area we will try to assume that the working capital will be lower. Yes, definitely. The. The debtor days in Lakshya area is lower than what we see in the normal non luxury areas. Both debtor and inventory. Right, Debtors. Because inventory is. We. Our sale is completed when we bill it to the distributors. So. And there’s no good written into the company. Right. So sorry. So inventory at a distributor level does not come into our working capital cycle.
Bhargav
Okay. And lastly in terms of luxury in the next two years, where do you see the rollout from current? 31, 32.
Unidentified Speaker
So it would be very difficult to actually commit or give guideline on the same. We really want to wait for three, four months before we actually come with a proper plan and strategy. Because of the intense competition that is going on in the market, we are unable to comment on that. But we are very optimistic about the project and we really want to take it forward because we are seeing good growth. It is just that in a short term period it causes disruption in the market and we are not yet ready to actually lose the market share while we are implementing this particular project.
Bhargav
Okay, thank you and all the very best and good congrats on a good free cash flow. Thank you. Thank you so much.
operator
Thank you. The next question is from the line of Deepali Kumari from Ariant Capital Markets. Please proceed.
Deepali Kumari,
Yeah, thank you for the opportunity. You have made 16.5 crore export revenue in Q1 across 15 countries. So what cable are you targeting for export in next two or three years? And are there any specific geographies you are prioritizing and looking for a new geography?
Ankit Gupta
So we have, we have always been strong in the Gulf market, but the newer market that we are trying to enter and increase our overall export is the African market and Myanmar, Burma. So we have very recently, like last year only, we started off with African market and Burma exports as well. So we hope that we’ll be able to crack because it’s very difficult to enter a market where. So in, in African market there’s a lot of counterfeit product that sells, there’s a lot of private labels. So there’s a cost constraint also in order to enter into the particular market.
So we are very hopeful that we’ll be able to grow our export.
Deepali Kumari
Okay. Okay. And sir, are you looking, I mean for winning growth for brand acquisition? Sorry, are you looking for any inorganic growth?
Ankit Gupta
So we have been looking for inorganic growth for quite a while, but things have not materialized. But in case there’s a good opportunity that comes in with the business point of view. Yes, we are open to it. See the product mix evolving between core innerwear, outerwear, athleisures and adjacent segment by 27 or 28.
Ankit Gupta
So currently our athleisure segment is around 12%. Our innerwear contributes around 85% to our sales and the rest is thermals and socks and women outerwear going ahead, we think that grow at a faster rate than our innerwear. And we are very optimistic about the thermals also since it’s a seasonal product, one can’t comment on that. But yeah, there’s a good opportunity. And our market share is very less when we talk about thermalware. So we have a good opportunity over there as well. Plus the raincoat that we have come out with dollar protect. So we are getting very good traction in a couple of years.
We are standing at 4% of our total contribution coming in from Dollar Protect Rainwear. So we are very hopeful about these product categories growing at a faster rate than the core.
operator
Thank you so much. Thank you. The next question is from the line of Naman Bhattacharya. It’s on the line of Naman from Aum Capital. Please proceed.
Unidentified Participant
Hi, good evening and first of all thanks for the opportunity and congratulations are a good set of numbers. So I have a question like I just want to understand since cotton forms are major part of your raw material, how has been the trend in the content till date and how should we expect it to evolve going on.
Ankit Gupta
Sorry, we didn’t get your question.
Unidentified Participant
Can you please. Yes, yes, yes.
Unidentified Participant
Yeah, yeah. So I was asking that since cotton forms a major part of our raw material, how has been the trend with the cotton prices today and how should we expect it to evolve?
Ankit Gupta
Currently cotton trend is cotton market is very stable and from last six months average candy price is stable between 55 from to 56,000. And as per current guideline, the agriculture for cotton crops is also very good and we hope that there is no fluctuation in the market with regard to cotton prices and it is stable for next six to 12 months.
Unidentified Participant
Okay.
Ankit Gupta
And like as you said that you expect the price to remain stable. So suppose in case there is some hiccups going ahead. So have you done any kind of hedging to protect the prices like because if it suits us then it is obviously going to impact our performance.
Ankit Gupta
Actually we purchase 80% of the our procurement is yarn only so we required 20%. We purchase cotton for our yard spinning unit only. So. So there is no any requirement for such aging purpose.
Unidentified Participant
Oh, okay. Thank you.
Unidentified Participant
And like my next question is like could you please provide us a breakup of your export revenue based on countries like what portion of your export accounts for a particular country. If you can just provide it.
Ankit Gupta
Currently not available now but we can help you to send after the call if you contact our at our email we can give.
Unidentified Participant
Okay. Okay. Thank you. And.
Ankit Gupta
Yeah. Yeah yeah please yeah. Just to clarify that we don’t have any exposure to US market so there is no impact on the tariff imposed by the United States.
Unidentified Participant
Yeah, yeah yeah. You mentioned about this. Comment. So yeah on that part I have no further questions to ask. And like I heard you mentioning that advertisement cost is somewhere around the assument you are targeting around.
Unidentified Speaker
In absolute terms for the full year.
Unidentified Participant
Okay. In absolute terms. And like yeah like while I was going through your financials in the other expenses part There was approximately 90% jump on a Y o Y basis. So could you please shed some light on that like what led to this chart jump?
Ankit Gupta
Actually in quarter one we have also promotion through the IPL also. So in quarter it is, it is heavy. But overall in full year the budget is within our range, within 5 to 6% only. So currently our total cost, total budget is around 80:80 to 5 crore. So in next quarter there is less on advertisement.
Unidentified Participant
Thank you. This was all from my side and best of luck for your future. Thank you.
Ankit Gupta
Thank you.
Unidentified Speaker
Thank you.
Unidentified Speaker
Thank you.
operator
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your question to two per participant. The next question is from the line of Anak Mitra from Finica Phenomics. Please proceed.
Anik Mitra.
Am I audible?
Anik Mitra.
Yes sir.
Anik Mitra.
Hello. Yeah, good afternoon sir. Thanks for taking my question. So my first question is regarding EBO coming FY25 you have given a target of 125 EPO and in FY24 and 25 we have seen that you have 17 videos and once again you have given 125 EVOs target by FY26. So I just want to understand how do you achieve this number? What is the strategy behind this?
Unidentified Speaker
Behind this like achieving this 125 evos from 17 currently.
Anik Mitra.
And what would be the impact of this increasing impact on your top line?
Ankit Gupta
So Mr. Anik, the thing is that during last year only we said that we are, we are not opening any EBO and we won’t be able to open 125ebos by FY26. Also because the basic problem still persists that are the exclusive brand outlets that we have have, the ASPs are very low and the per ticket value is that we are getting right now is not feasible and it’s bleeding. Right? So up to a certain level we are able to optimize and also we are treating it as a white elephant. Like it is a more of a experience store for a consumer and it’s a permanent hoarding of our brand which is there and we are compensating our franchisees also on a yearly basis.
Although the amount is not big enough, it’s almost negligible. So the amount we are bleeding is almost negligible. But finding a new franchisees for the stores is getting difficult. Secondly, we don’t really want to open Coco stores because it would, it would be capital intensive and a lot of it’s capital heavy. So that’s why we don’t want to move for Coco model yet. We Are trying a few different things in the market with respect to evo like kiosk and getting smaller stores where we can find franchisees very easily. So we are working on that and we are also working on the front that how do we increase our overall ticket value at the store level.
So once we are able to achieve that, I think we’ll be able to scale up our exclusive brand outlet.
Anik Mitra.
I understood sir. So my another one question is like what is the ratio of your premium, semi premium and mass products in terms of revenue value?
Ankit Gupta
So in terms of revenue our economy range is contributing around 42% of our sales. Mid premium is 48% and premium is 8%. Okay, premium is 8%. Yeah. 8% of our total sales. That is the premium sub brands that we have. But if we talk about a premium in terms of EBITDA contribution there It’s. It’s almost 24 to 25% of our sales premium.
Anik Mitra.
Okay. Okay.
Unidentified Speaker
So sir post next itself contributes around 4 to 4.2% as per Q1FY26. So overall it is. You are saying 8%
Gaurav Gupta.
. Okay, I got it. I got it. Fine. Thank you so much sir. I’ll come back in the team.
operator
Thank you. The next question is from the line of Pulawati Saikiran from Pulavati Advisors. Please proceed.
Pulavarthi Saikiran
Hi, thanks a lot for taking my question. Just continuing on one conversation. On the advertisement expenses. If you look at your annual report last year you have advertisement expenses of approximately 100 crores. And you also have commission and brokerage of around 30 and half crores. And you have got sales promotion expenses are around 14 crores. And you have got other selling and distribution expenses at 35 crores. Sir, how do you classify among these four and if I compare with your peer group, all this combined together you have got a very high proportion as percentage of sales.
How do you think about it? And also going forward how you evaluate the effectiveness of these expenditure? Thank you.
Ankit Gupta
Yeah. With. With respect to advertisement expenses we believe that we classify all the ATL and BTL activity like electronic media and like inso branding. But with regard to commission, if the commission is paid on sales and on purchase also so we when we purchase procure yarn then there is a commission when we proceed procure when we sell our product then we have the system of Del Crater agent. So we have to pay the commission from 1.5 to 1.75% of our sales to. And with regard to sales promotion expenses, they are the expenses which are the organized conference for our dealers and distributors time to time and promote and the selling expenses is related to the bat a part of the salesperson.
We have this team of around 650 persons for sales salesman team. And that selling expense is related to the traveling and da part of the sale. Yes, all the four are different head and different nature.
Pulavarthi Saikiran
Understood sir, how do you measure the effectiveness of your advertising expenditures, sir? Pardon? I mean to say that you look at hundred crores in terms of the advertisement expenditure, right? As percentage of sales it’s almost like one of the highest in the industry. Almost like 6 to 7% is what you have. How do you measure the effectiveness of the advertisement expenditure which you have?
Ankit Gupta
Yeah, if you see our balance sheet from last five years then you see that our advertisement expenses is kept within hundred crores. Because according to US 100 crore is the handsome amount for the for the brand to promote. And currently this allow target is around 80 to 85 crores. So we have the target of growth of 11 to 2% 12%. Then it’s come to around 4 to 5% of the total revenue for this year.
Pulavarthi Saikiran
And one last question sir. In terms of project Laksha, when you look at. I understand that you measure your effectiveness of the project Laksha but have you ever worked with the distributors? What kind of benefits the distributors got and how the benefits are improving.
Ankit Gupta
So there are majorly three to four benefits that the distributors are having. One is that we don’t push our products to the distributor. So the distributor’s inventory is optimized at a level of 30 to 45 days. Secondly is we have fixed their margin and we have fixed the retail price also at which the distributor would be billing to the retailer. And it is being guided by our distributor management system. The third is the roi. So the ROI that we have guaranteed our distributor if they follow all our SOPs is somewhere between 18 to 20%. And the distributors who have been working hard in the market and following all the sops, we have seen that distributors are earning around 20 to 25, 28%.
Also ROI. So these are the benefits that the distributor gets. And in turn we get all the data that at which PIN code, which retailer is getting billed and at what frequency, what is the kind of rain selling that we are doing in the market. So and the sales representative that we give to the distributor. Earlier our sales representative was limited but now we ensure that from company side there is minimum of 15 days of working happening at a distributor point. Let the distributor handles this area plus we have given telecoller support to the distributors.
So our Telecollers also take orders from the retailers on a weekly basis. So these are the benefits that the distributor get while they are dealing with us.
Pulavarthi Saikiran
May we request you to join the queue again? Thank you.
operator
Thank you. The next question is from the line of Prena Junjunwala from Alara Securities. Please proceed.
Unidentified Participant
Thank you for the opportunity, sir. So, just wanted to understand the competitive intensity in the industry. Given that 19% growth that you have done during the quarter. Is there any base effect or easing of competitive intensity or how should we read this number?
Ankit Gupta
So Prenda, the competition is still intense in the market. Although it’s not as intense as it was in Q4. But the intensity is still there. And the 19.5% kind of a growth that we have done is the hard work of our sales team and the distributor and the trade channel and the modern. The support that we got from the E Commerce, Quick Commerce and the modern retail. We have seen 82% kind of a growth in our modern trade sales. So E Commerce has also helped us a lot in increasing our overall sales.
Unidentified Participant
Okay, just a follow up. Will that be meaningful to our overall numbers when we look at the 12% volume growth for how much would be the E. Com contribution in that?
Ankit Gupta
So overall E. Com contribution to our total sales. The modern trade contribution to our total sales is 12% for this quarter.
Unidentified Participant
Okay. Okay. And do you see this kind of performance continuing over the next few quarters given the support of Modern trade and Q Commerce continuing? So we will be able to achieve 15% plus growth for the next of next of the quarters coming ahead.
Ankit Gupta
So Pirnanshi, we are very optimistic about the numbers and everything. But as told earlier that our guideline will still be at 11 to 12% on a yearly basis. Yeah. So which would be majorly guided through volume growth and not value.
Unidentified Participant
Okay. Okay. And so I was not there on the call earlier so I would have missed this. But the distribution of Lakshya is not improved in the quarter. How do we see this project moving, moving ahead?
Unidentified Speaker
So it is, it is slow paced right now and it’s a conscious call that we have taken into account the overall competition behavior also in the market. And that’s why it’s a bit slow pace and it’s a strategic decision that we have taken right now. But we are very optimistic about the project and seeing the results coming in from the matured state as well in the first quarter. So it really motivates us that we’ll move ahead with this particular project and sooner or later we’ll be able to complete the project pan India basis. But yeah for the time being we have slow paced this particular project.
But at the same time yeah, yes, we are very optimistic. So we’ll be completing the phase that we have started. We are ongoing WIP is Jharkhand, Bihar, some parts of Himachal that we have. So these are some of the states that we need to complete Maharashtra. It’s an ongoing project for us right now. So still more than half of Maharashtra is still left. So we’ll be completing this and will not be including any new states as of now. Because this particular project disrupts the area for a timing and we’re not in a mood to shed the market share that we have or the shelf space.
Unidentified Participant
Understood. So sir, any improvement in working capital cycle or you know type of products that you are seeing in luxury that you were targeting to achieve, could you highlight some of the benefits that have all that are starting to accrue in the luxury network.
Ankit Gupta
So in luxury network our data days are much better than the non luxury distributors. So our data days are better, we are able, the sales are much more organized and we can actually track the secondary data also on a on a daily basis distributor wise. So we actually know where they’re lacking and we get real time market feedback also market data also like which product is doing well, which is not doing well, where we have to put in more focus, which brand to focus more on and what is the kind of visibility we are getting or traction we are getting in the market with respect to the competitors.
So all those data that we are getting is very valuable overall. Yes, the distributors ROI has increased so they are also more focused about the project and they’re working really hard in the market and yeah, that’s it. And the data days that has reduced which I told what will be the. Difference in the data days of Luxion non luxury it would be to the.
Ankit Gupta
Tune of 30 to 35 days.
Unidentified Participant
Okay. And the last question is on is on Dollar Woman in one of the slides you’ve mentioned the brand wise contribution of dollar woman at 8% and gender wise contribution of 13%. So just wanted to understand where is the rest of 5% actually included in the numbers.
Unidentified Speaker
So it’s a. It’s in dollar always. So like dollar always is the consolidation of our all the economy range of products. So it’s a mix of members. Actually it has always operated in a similar manner. So that’s why.
Unidentified Participant
Okay, okay. Thank you. Thank you so much and all the best. Thank you.
operator
Thank you. Due to time constraints that was the last question. I now hand the conference over to the management for the closing comments.
Ankit Gupta
I would like to thank you all for taking the time out to join the earnings call. Have a nice day. Thank you.
Gaurav Gupta.
You. Thank you. Thank you. Thank you so much.
operator
Thank you.
operator
Thank you. On behalf of Motilal Oswal Financial Services. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.