Emami Limited (NSE: EMAMILTD) Q1 2026 Earnings Call dated Jul. 31, 2025
Corporate Participants:
Unidentified Speaker
Percy Panthaki — Vice President
Mohan Goenka — Vice Chairman & Whole-time Director
Zairus Master — Chief Business Officer
Manish Gupta — President of Sales
Gul Raj Bhatia — President, Healthcare Division
Vivek Dhir — Chief Executive Officer International Business
Giriraj Bagri — Chief Growth Officer
Analysts:
Unidentified Participant
Abneesh Roy — Analyst
Nitin Gupta — Analyst
Harshit Kapoor — Analyst
Param Vora — Analyst
Rahul Agarwal — Analyst
Shirish Pardeshi — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Imami Limited Q1FY26 earnings conference call hosted by IIFL Capital. 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 touch tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Percy Pantaki from IIFA Capital. Thank you. And over to you sir.
Percy Panthaki — Vice President
Hi. Good afternoon everyone. Welcome to Imami’s first quarter conference call. From the management, I have with me Mr. Mohan Goenka whole time Director and Vice Chairman, Mr. Vivek Dil, CEO International Business Mr. Gulraj Bhatia, President Healthcare Mr. Manish Gupta, President Sales Mr. Giraj Baghri, Chief Growth Officer Mr. Rajesh Sharma, President Finance and IR. And joining us for the first time on the call is also Mr. Zaire, master CEO of the Man Company to take you through the results, handing over to Mr. Mohan Goenka and then we’ll open up for Q and A. Over to you sir.
Mohan Goenka — Vice Chairman & Whole-time Director
Thank you Parsee. Very good afternoon ladies and gentlemen. Thank you for joining us today for our Q1 FY26 earning calls for the quarter ended 30 June 25th. As you are aware, the overall demand environment in this quarter remained challenging. Urban discretionary consumption continued to remain under pressure while rural demand showed early signs of recovery. However, the unusually soft and shortened summer season driven by unseasonal rain and the early onset of the monsoons adversely impacted consumption across our summer focused portfolio. Despite these headwinds, we maintained a stable top line with overall revenue remaining broadly flat. The talcum powder and prickly heat powder category, which is highly dependent on summer demand, was significantly impacted and declined by 17% excluding talc and prickly heat powders, our core domestic business delivered a healthy 6% revenue growth and a 3% volume growth reflecting the underlying strength and resilience of our broader offerings.
It is also encouraging to note that Navratna oil delivered a 6% growth despite the subdued summer season. It is important to contextualize the 17% year on year decline in talc and picli powder range which comes off a significantly high base of 54% growth in last year same quarter. So on a two year CAGR basis this category continues to be healthy with a 13% growth. And when we look at the full summer season that is from Jan to June 25th. The category posted flat growth despite weather related headwinds, a clear reflection of consumer stickiness and a very strong brand equity.
Our pain management range grew robustly by 17% by Alboro plus antiseptic creams grew by 60%. Our healthcare range maintained a steady growth of 4%. Male grooming range declined by 9% and Cash King declined by 5% and strategic investments declined by 4%. But we remain confident in their long term fundamentals supported by ongoing brand and distributor distribution interventions. Innovation continues to be key growth lever. During the quarter we launched Durmikool, Prickly Hit Spray and various other variants under Navratna and Boro plus brands. We also relaunched Navratna Gold and Jandu Roll on further, three new Digital first innovations were rolled out via the jhandoo portal.
On the distribution front we saw continued traction in our organized channels which grew by 6% with saliency improving by 190 basis points. Quick Commerce remains a strategic growth channel scaling up rapidly at nearly three times yoy, further validating our omnichannel playbook. Our international business delivered a modest 2% growth despite despite macroeconomic volatility and geopolitical uncertainty in some key markets. We have made meaningful progress in expanding our footprints across some other Southeast Asian markets where initial traction from a focused portfolio has been promising. As this portfolio gains momentum, we plan to broaden our offerings to capture additional growth opportunities.
We remain deeply committed to long term value creation in our international markets. On the financial front, our gross margins expanded by 170 basis points to 69.4%. EBITDA stood at 214 crores, a marginal decline of just 1% with a 20 basis point contraction in margins primarily attributable to flat top line profit after tax grew by 9% to 164 crores. Looking ahead, we are excited about the next phase of our growth journey. Smart and Handsome is being extended into other male grooming categories in this quarter. Keshe King is undergoing a strategic transformation reimagining the brand for sustained relevance and future growth.
This change is going to take place in this quarter. The Man Company has returned to growth in June 25th and we are confident of maintaining this momentum through a sharper positioning and a 360 degree brand revamp. Our Digital first brands are gaining traction and we are further amplifying growth on marketplace and QCOM platforms to drive reach and relevance among new age consumers. We remain confident on the margin front and we do not anticipate Any significant input cost pressures. In the near term, we believe the macro environment will gradually improve, supported by abundant monsoons, stabilizing inflation and ongoing consumption recovery.
With our strategic levers of innovation, distribution, expansion, digital acceleration and cost agility firmly in place, we are well positioned to drive sustainable and profitable growth in the quarters ahead. With that, I would now like to open the floor for questions.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone 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 handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question is from the line of Avnish Roy from nuvama. Please proceed.
Abneesh Roy
Yeah, thanks for the question, for the opportunity. My first question is a bit structural. We have seen last 5 years most companies not very happy with the initial expectation on the male grooming. In your case also we have seen even this quarter the decline is there in both the male grooming kind of segment. Man company and smart and handsome. You have commented that in Man Company July has June seeing growth but yeah, that’s one month. Ultimately we have to see longer term trend. So my question is to the business head of man company and also to the overall Imami.
What is the long term expectation from this category? Because most companies have not really been able to crack this. Ultimately this seems to be good on paper but growth and explosive growth in that growth itself is a challenge in this structurally. Could you comment on that?
Mohan Goenka
So Zyrus, why don’t you talk about the man company Then after that I’ll take on the fair and answer.
Zairus Master
Sure, yeah, I think, you know, in my view male grooming is still a very under exploited and an underdeveloped segment of the market. And we are seeing that. We are seeing there’s a huge potential for that. I think what is required is especially in the case of Man. In the case of Man Co. We have not really worked on the brand and the top of the funnel for some time and I think that rejuvenation is required. We are already seeing a trend where if you look at sequential trends and I completely agree with you that it has to eventually come alive in the long run.
But even if you look at sequential trends over the last two, three months they are looking positive and month on month it’s looking better. So from that perspective we strongly believe that this is a segment that will grow quite handsomely. In the as long as we work on the fundamentals.
Mohan Goenka
Avneesh see very honestly in the last few years the advertising spends have come down because of the overall market sentiments in this category as far as because we were driving this category before. If you talk of last five years, you know, but unfortunately you know Fair and handsome has not been growing we which is a fact but after this brand name change and we are seeing there is a lot of D2C competition which has come in in the last few years. So overall I think the market has grown for sure for the male grooming which is not being captured holistically somewhere.
Coming specific to Smart and Handsome. This is an absolute new launch and we are seeing some headwinds I think and we are launching a lot of new categories in this quarter. We have a robust plan. Let us see how it goes. So we don’t think very short term Avnish. Yes there may be some quarters, bad quarters but I think as Iris clearly mentioned it is a very very under penetrated category and there is a lot of scope in the mailrooming.
Abneesh Roy
One quick follow up here Mohanji. I completely agree on the D2C impact. So my specific question here is launching adjacency and relaunching Smart and Handsome. You are relaunched even in Q4 but Q1 again there is again talk of more kind of relaunch etc. So here wanted to understand is this the answer? So launching adjacency and launching relaunching will it be enough to compete with D2C? Because if that was easy I think you and other legacy companies could have cracked it. So I’m trying to understand you do have man company which itself is D2C but is that enough? I wanted to understand that bit.
Mohan Goenka
See for sure we are not competing with each other. There is a clear market. They are primarily on E commerce and others. You know their pricing is very different than what we are doing. So. And there is market for both. I think both for the man company they are more into fragrances and other categories. They are more into some personal care and other categories and pricing is also different. So please. I see. As I said, I think there is enough opportunity as far as meal grooming is concerned. There is. We are definitely focusing after our relaunch big time and let us see which brand we get traction. It is very difficult for us to say at this point of time but we’re not going to leave this because it’s a prime brand for us both man and smart and handsome.
Abneesh Roy
Absolutely. Last question on the demand side Your comment seems to be a bit more cautious. If I see some of the other business updates, say by Godrek, Consumer Marico or say even actual results which have come and when I also see paint company, India’s number one paint company, call out the green shoots, against that your comments seem to be a bit more reserved. My specific question here is on the urban demand you’re still not talking about green shoots or recovery. So if you could answer, when do you see that coming? Green shoots in the urban side of the demand and in terms of modern trade and quick commerce, if you could comment how the growth has been there and how the profitability is there in those two channels.
Thanks.
Mohan Goenka
So my commentary may sound a little muted only because we are struggling on our talc and that continues in the second quarter also. But excluding the talc, honestly and with the relaunch of Kishking in this quarter and some of the new launches in Smart and handsome, I am confident we will be able to recover much better. Definitely there is some green shoots. I’m not saying no in urban also but unless the overall results, overall sentiments goes up which in our case is dragged by the summer unfortunately and specifically talc. Other than that I think we are very very well placed honestly.
And on the modern trade and E commerce. Let me just hand it over to Manish.
Manish Gupta
See on the mt&e.com front again the story is the same as for the rest of the business. The talc is something where we did suffer some headwinds but as far as the non talc business is concerned we are growing pretty well and the JBMC and the importance of these two channels has only grown up in quarter one as was stated by Mohanji.
Abneesh Roy
So thanks, that’s also my thing. Thank you.
operator
Thank you. The next question is from the line of Nitin from mk. Please proceed.
Nitin Gupta
Yeah, thanks a lot for the opportunity. My first question is with respect to the pain management where we have seen heightened groups. So like is this more attributed to early monsoon that has helped and also wanted to check if the monsoon sort of extends then this portfolio will be fully beneficial for us in Q2.
Mohan Goenka
Yes, absolutely. Nitin, this 17% growth in the pain management is attributable to early monsoons. This is the peak season for this portfolio and we have seen the same results in the month of July. Also if the monsoon continues, which is predictable that the monsoons are going to be good this year, hopefully this category should do well.
Nitin Gupta
Okay, thank you. Second question is around the healthcare where we have seen 4% growth which sort of has slowed down. So is it more of a transient or like a high base will limit growth ahead?
Mohan Goenka
Yeah Gulraj.
Gul Raj Bhatia
Yes. So essentially it seems to be a one off issue. As you can see over the last many quarters we’ve been having good growth in but quarter one was somewhat challenging, especially for the OTC range where I think there was a bit of a sort of a bit of a downturn in the market. And we also checked out that various other companies in the OTC space and Ayurveda space, they have also seen a similar trend. But we are carrying out initiatives for quarter two to overcome the which has. Happened and we are hoping for a much better performance in quarter two.
Nitin Gupta
This is helpful. And the last question is around your gross margin expansion. Like if you can help me understand what exactly led to this gross margin expansion and aligned with that. I just wanted to check like other expenses have also gone up. So is there any shift in sort of line items between these two heads?
Mohan Goenka
It is primarily driven by the mix because normally pain management has a higher margin compared to the talc. So it is due to the mix that the margins have gone up.
Nitin Gupta
Okay, thank you. This is really helpful.
operator
Thank you. Before we take the next question, we would like to remind participants that you may press Star and one to ask a question. The next question is from the line of Harshit Kapoor from investech. Please proceed.
Harshit Kapoor
Yeah, hi, good afternoon. So my first question was on, you know, the new launch pipeline. So we just, you know, you put out a slide on the things you’re doing. If you just kind of bifurcate this, it seems to be in the categories that we are either strong or already have a good hold on. If you look at say extensions in prickly heat or in oils or in Zandu care.
I just wanted to get a sense from Mohanji that is this how we look at initiatives now for the next say 12, 24 months that really penetrate into the larger macro categories that we are into? Is that the innovation strategy that we should expect going forward as well and not really maybe venture into say newer subcategories or newer categories just increased penetration in terms of new variants in the larger macro categories that we are in? Is that the way to think about it?
Mohan Goenka
So Harshit, the strategy is two pronged. It’s not that we are averse of completely new categories, but the work is on in those also. But at the same time, see we have to leverage our existing brands. So as much as we can leverage those, why not? So as I said this quarter you’re Going to see a number of launches in the Smart and Handsome range, plus a lot in Keshe King range. So we really want to leverage our existing brands and make as strong as much as possible. Also the man company Jandu Care will also see a lot of new launches going forward.
Harshit Kapoor
In that context, Mooji, do you see A and P spends kind of move up further? I mean as a percentage of sales. This quarter it’s a tad lower. But from a full year basis do you see that number getting stepped up as a percentage given that we have some gross margin leverage also?
Mohan Goenka
Not really. Arshad, I think we will be maintaining our A and P spends as per last year’s trends.
Harshit Kapoor
Got it, got it. And the last piece was we seen this decline obviously in Smart, Hanson, Keshe King and the Mail grooming portfolio. Do you see growth in these portfolios now to be expected in the second half of the year with all the initiatives that you’re taking is to etch the right benchmark to look at for growth in these portfolios.
Mohan Goenka
See, hopefully, because see, we as marketeers, we keep on trying, right? And as I said, we are not never going to leave these opportunities because still the penetrations are low and we are the leaders in these categories. So when the market will bounce back, it is very difficult for me to predict. But yes, Keshting is again a big relaunch in this quarter. Let’s hope that, you know, it rebounds. Smart and Ensum was already relaunched. Now this from this quarter we are launching 10, 12 new products under this new umbrella. So that should also bring some traction into the category.
So lot of activities are happening, you know, in every category, every channel. Unfortunately the talc has dragged us this quarter and same continues unfortunately in the second quarter. But otherwise excluding talc, I think we are very well placed. It is very difficult for us to. Say which quarter the numbers will bounce back or which quarter which category will bounce back. But yes, I can say we are not losing consumers but at the same time we are not able to attract a lot of new consumers. So. But as marketeers this is our job and we keep on doing that, we keep on trying.
Harshit Kapoor
Good to know. And the last part was on pain management. I don’t understand actually the dynamics from Q1 to Q2. So is it that the primaries were high in Q1 and that affects Q2 growth on the primary side for pain management? Because typically Q2 is a larger quarter or that understanding is not correct?
Mohan Goenka
No, this time Q1 was exceptionally good because of early monsoons. So of Course, the. Yeah, so. But secondaries are in line with our primaries. There is no stock up in any of the channels for any of this.
Harshit Kapoor
Does Q2 typically have a higher primary in. In, you know, in like for example, versus base quarter? What I’m trying to say is.
Mohan Goenka
Yes, yes. Q2 is a bigger quarter for pain management than Q1.
Harshit Kapoor
And given that sales is shifted a little bit into Q1, does that then impact our Q2 y o y growth this time or that’s not the right. Way to look at it?
Mohan Goenka
No, no, no. I don’t think that will have an impact because July. July was quite good for pain management.
Harshit Kapoor
Great. Those are my questions. Wish you all the best, Panju. Thanks.
Mohan Goenka
Thank you.
operator
Thank you. Before we take the next question, we would like to remind participants that you may press Star and one to ask a question. The next question is from the line of Param Vora from 3 nature Asset Managers, please.
Param Vora
Hi, thank you for taking my question. I’m sorry I missed a few part. Of the Q and A session. So excuse me if I repeat the question. So what I wanted to ask was. That with international business showing a modest growth despite macroeconomic and geopolitical uncertainties contributing to 16% overall sales, are we exploring, you know, to increase the exports and to increase the share in the revenue?
Mohan Goenka
Yeah, Vivek. Yeah. So international business showed around 2% growth only because of one corruption. Bangladesh, where we had a very, very muted infection decline over there and rest of the business has grown by close to 14% for us. So one country where we have faced little headwinds and we are trying to reflect those so that we are back on track and hopefully very soon we should be back on track even in that market. So the issue pertaining to largely one market.
Param Vora
Okay, so are we exploring, are we exploring any new geographies or. We’ll stick to the nations we are serving right now.
Mohan Goenka
The new geographies are a continuous effort that will keep on happening along with the development of portfolio and making the current portfolio relevant for the new geographies. So we have been able to scale up one new geography which has given us some good results in last five, six months. So I don’t want to name the country at the moment, but it is showing some recent results to us. But during the course of this financial year, we will be opening new geographies as well. And that will be, I think, facilitated with launch of new portfolio.
Param Vora
Okay, okay. Okay. Thank you. That’s it. From my side. Thank you.
Mohan Goenka
Thank you.
operator
Thank you. Participants who wish to ask a Question may please press RN1 at this time. The next question is from the line of pursuit from iifl. Please proceed.
Percy Panthaki
Yeah, so we have Keshking relaunch this quarter that hopefully should take care of some growth issues in this brand. What about Fair and Handsome? We are still seeing sort of negative sales here. I mean sales decline here. So what is the plan here to bring it back to growth?
Mohan Goenka
Sorry Parsi, sorry I missed your question.
Percy Panthaki
Yeah, so I was saying Keshe King is declining but there is a relaunch planned for that and hopefully that should take care of the growth issues. Fair and Handsome I think is still not out of the woods. It’s still weak. So what is the plan here for strengthening Fair and Handsome growth?
Mohan Goenka
So Parsee the Fair and handsome is primarily the cream portfolio, the fairness cream which is dragging down the business. Unfortunately that is not growing despite of change in the brand name. So the only way is to grow the portfolio. And the idea of changing from Fair and handsome to Smart and handsome was also that that we want to get into a larger space of milk grooming. So the combined business should be much bigger because the opportunity has now become much, much wider. So that is the only way to grow. And our enhanced focus on the face force category which has become quite big compared to the cream.
So we are formulating a strategy to win in the face force market. So that hopefully should help in. In the H2
Percy Panthaki
And in cream. What exactly is the issue? I mean have you done some kind of market research, focus groups or anything of that sort which tells you why people are not using the cream. And also related question is,
Mohan Goenka
I’ve been saying this Percy always that because of the beard keeping habit the surface area is reduced to young generation now is mostly keeping beards.
Percy Panthaki
That is that already be already that issue be in the base by now.
Mohan Goenka
Yeah, but that is in the base. But we’re not getting in new consumers, you know, because that is a. That is a challenge.
Percy Panthaki
Okay.
Mohan Goenka
Yeah. And. So going forward we have to have less, less reliance on this only one cream and get into facials and adjacent categories.
Percy Panthaki
Right, right. And any kind of friction issues in terms of the brand name change. Sometimes the modern trade doesn’t list you because the brand name has changed or sometimes the distributors are a little bit confused or other the retailers are a little bit confused. The consumers might not know that this is the original fair and answer. They might be confused. So have you done some kind of sort of intense communication drives to make sure that there is no loss in this transition process?
Mohan Goenka
Oh yeah. 100%. Without that we don’t even go to the market. The entire research was done and by and large people have accepted it. There is no place where the new product has not been launched and we are still writing both the brand names. So fair and handsome and smart and handsome, both are on the packaging. So there is no chance of confusion.
Percy Panthaki
Got it? Got it. And sir, with this relaunch, was there any sensorial change in the cream in terms of the perfume or in some other case? Sometimes these changes don’t go down very well with consumers also.
Mohan Goenka
So we keep on improving products per se, whether with the change in the brand name or despite of that. Also if there are any improved formulations, which happens in almost every category. So one one formula doesn’t stick forever because there are changing needs, the consumer, you know, trends changes, the consumer behavior changes. According to the research, we tweak a little bit of formulations.
Percy Panthaki
Got it, Got it. And coming back to Keshe King, I know that you have a sort of relaunch pending and therefore you might or might not be able to give certain details. But like is it that the brand. Has fallen out of favor or what is the, what is the problem diagnosis as to why it is not growing? Then we can understand what the interventions are to be done. Right. So have we found out the reason behind the brand not growing?
Mohan Goenka
No, of course the brand team is constantly, you know, doing consumer research and understanding the reasons. The key reason has been the D2C players. There have been a lot of new D2C interventions in this category. So that is the key reason. Of course, BCG has looked into every possible, you know, options and the new strategy will take care of that also.
Percy Panthaki
Okay, understood. So I guess when we have this call next quarter, we’ll be able to talk a little more freely as to what exactly has been sort of tackled in the relaunch.
Mohan Goenka
Yeah.
Percy Panthaki
Okay, sir, we can go back to the question queue.
operator
Thank you. The next question is from the line of Rahul Agarwal from Ikkikai Asset. Please proceed.
Rahul Agarwal
Hi, good afternoon, Mohanji. Sir, two questions. One is obviously tank. I understand it’s impacted, but exof tank, we’ve grown about 6% value growth. I would imagine this year. Second half looks better. So we’ll retain our value growth of 8 to 9% for the full year. Is that fair understanding?
Mohan Goenka
I can’t really comment at this point of time on 8, 9% of growth. A lot will because first quarter, unfortunately overall growth was not there. And second quarter also has a high base of Talc. So July has been pretty muted for Talc. So overall numbers may be slightly challenging. But X of Talc, I don’t see any challenge. I see good numbers. As I said in my opening remarks, I don’t see any challenge on margins. So we will definitely try to make up the losses we make on Talc through other categories. But top line can be slightly challenging because last year base was very high for Talcs.
Rahul Agarwal
Understood, understood. And secondly,
Mohan Goenka
But profitable growth should come because casting pain bombs and antiseptic creams, those are profitable brands.
Rahul Agarwal
Right, right, got that. And secondly, on console margins, obviously you have said don’t foresee much of input pressure. It should be profitable growth for the full year because we’re seeing lot of new product launches on man company as well as gender Care. I think that will also expand. I was actually thinking that in case we can reduce some cash burn from those two brands and maybe that will, that can also add up to, you know, overall margins. Should we expect then the cash burn to remain flat or should we expect them to like, bit of increase because of a lot of new product in the pipeline?
Mohan Goenka
Sorry, what? The cash.
Rahul Agarwal
So what I meant was Man Co. And Genducare, I think, you know, they have EBITDA losses. Right. So I was saying I was expecting that to decrease in fiscal 2627. That could add to overall compound profitability. Is that the case or how would, how would the trend be?
Mohan Goenka
Oh yeah, yeah, absolutely. I think both the man company and the Jandu Care will definitely have lesser losses compared to the last years.
Rahul Agarwal
So that should add to the bit of margin.
Mohan Goenka
Right? So that should add to some bit of margin. See, it’s a large portfolio. It is very difficult for me to say which portfolio will fire when. Okay. Because mix makes a lot of difference. If Boroplus doesn’t fire, then there is an impact if. It’s very difficult for me, Rahul, to say which product will fire. But overall, I am saying if we see the trends, we monitor it almost on a regular basis. If we see certain trends, then we of course change some internal mixes, reduce some advertising somewhere. Margin has never been a issue as far as Imam is concerned.
Rahul Agarwal
Got it, Got it. And lastly, you know the idea behind the rebranding in the new logo? I obviously read the press release. But just as in terms of thought process, how does it go in terms of communication with the trade channel and on the packaging? Does it any commercial sense on that commercially?
Mohan Goenka
No, this is more of a, you know, corporate logo. So it doesn’t have an impact at the consumer or the trade level. Very honestly. Because we don’t use this logo in pacs or in any communication.
Rahul Agarwal
Okay.
Mohan Goenka
It was just to celebrate 50 years of making more modern. Yeah.
Rahul Agarwal
So best wishes for the rest of the year. Thank you.
Mohan Goenka
Thank you. Thank you.
operator
Thank you. To ask a question, please press Star in one. Now the next question is from the line of Shirish from Motilal Otswar. Please proceed.
Shirish Pardeshi
Hi Mohanji Rajeshi and team. Good afternoon sir. I have few questions on TNP and new Edge brand. Last two quarters we’ve been struggling. We had a higher inventory, we tried to rationalize inventory. What exactly we are trying to do here. Have we changed any go to market strategy or any changes in the brand positioning? Something like that. And maybe now we have a control. So how we should look at this brand next two to three years in terms of growth margin perspective.
Mohan Goenka
Okay, so Zyrus is here.
Zairus Master
Yeah. Okay. So I think you know to your question, what we have done in the last quarter is that we have improved our efficiency and effectiveness in each of the, that we operate in. And of course predominantly we operate in the online space and in organized trade as far as offline is concerned. So in both these places we’ve tried to improve our efficiency, focus on secondaries so that you know, that’s the true test of demand. The second thing that we’ve done is that right now we worked on our media mix objective again is to drive top of funnel.
So we’ve driven media consumption on spend in terms of influencers, in terms of product like advertising. But that’s, you know, it’s just been a start given the fact that it’s just been three months into the year and me being here. So that’s phase one in the long run. Of course, look, all growth in terms of all profitability etc has to come out of growth. And like I mentioned before that the market is extremely underpenetrated and therefore there’s a lot of potential. So if you look at the next three quarters, our endeavor is to continue to look at sequential growth.
The trajectory has to be positive month on month. I think that’s, that’s a. We are currently relooking at our brand mix, our brand positioning, etc to see if there is an unlock out there and how we can drive that forward. At the same time. Also looking at how the category roadmap is evolving, you know, going forward as new categories emerge which are, you know, which are better. So how do we take advantage of that? So all these things put together is our, you Know is what we’re saying that how we will grow in the near future as well as, you know, become more efficient at a cm2 level and therefore flow back into profitability.
Shirish Pardeshi
Just one quick follow. What is the channel mix here right now?
Zairus Master
Look, if I were to just roughly say 80% of our business will be online.
Shirish Pardeshi
Yeah, but is there any attempt to improve MT and gt?
Zairus Master
No, we’re not. So as far as modern trade, I call it organized trade because a large part of our business comes out of alternate channels like lifestyle stores, etc. You know, the fashion and lifestyle stores. So yes, I think that’s an area where we want to continue focus and we have seen, you know, handsome growth coming out of that space. GT is not something that we intend. We’ve not intended in the near future to look at that. We’d love to see our brand grow to a much larger size for us to then start looking at general trade as an opportunity.
But right now, again, given the fact that we’re dealing with top of the pyramid consumers who are largely shopping in either modern trade or in E commerce.
Shirish Pardeshi
Okay. No, the reason why I’m asking because online is profitable but the moment you get into the different channel the profitability will be impacted. So just wanted to pick up your thought. Whether the growth is going to be important or the margin also is going to be important in the medium term.
Zairus Master
Look, I don’t think it’s one or the other. If I, if we grow at a margin that’s not good, then we will, you know, further destroy value. So we are in fact working on both fronts. If you look at an online business, I would say it is revenue and CM2 that’s what we need to focus on. That’s the unit margin that we extract and quite frankly as our brand presence improves, we do expect that our channel spends will come down going forward. So we will grow but we have to constantly improve CM2 also. So I don’t think we are of course in terms of percentages our growth will be much higher than the efficiency improvement that we’ll bring around.
But we will have to work on both. And that’s what our plan is in the next three quarters also where we drive growth as well as at a reasonable CM2.
Shirish Pardeshi
Okay, my next question is to Vivek excluding Bangladesh, I mean what is the Bangladesh decline which is added this quarter and if you strip off Bangladesh, what is the international growth we have reported?
Vivek Dhir
So that is except Bangladesh it is close to 14%. I think to be precise it is around 13.6. Exact number. Bangladesh in primary terms, yes, we have steeper decline, but in market, sales have invariably declined by around 2% in British terms.
Shirish Pardeshi
Okay, my last question was, any update on Axiom and Canis Lapus? Is there any consolidation? What is the strategy there?
Mohan Goenka
No. EX and K. G, you’re there.
Giriraj Bagri
Yes, I’m there.
Mohan Goenka
Yeah, yeah. Please, just.
Shirish Pardeshi
Yeah. Hi, gy.
Giriraj Bagri
Hi. Hi. How are you? Good to be speaking to you guys. So right now, as far as EX concern, we have a significant minority stake at this point in time. So in terms of channel consolidation, there isn’t any intent to do any channel consolidation in the short to medium term. Longer term, as our entry into the healthy food and beverage space expands, then there could be something agree. However, on the. On the side of the green channels, we are exploring some opportunities where how we can leverage our group understanding and network to see how the digital channels can and the organized trade can help drive.
Shirish Pardeshi
Okay. All right. Thank you, Mohanji. And all the best.
Mohan Goenka
Thank you, Suresh.
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Mohan Goenka
Thank you all for joining us today for our Q1 results. Conference call. Thank you, Parsi. Thank you, IFL for arranging this. Thank you.
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