Thomas Scott India Ltd (NSE: THOMASCOTT) Q3 2026 Earnings Call dated Feb. 16, 2026
Corporate Participants:
Vedant Bang — Managing Director, Head of E-commerce Division
Analysts:
Purvangi Jain — Analyst
Rehan Syed — Analyst
Ankush Agrawal — Analyst
Divya Jain — Analyst
Harsh Shah — Analyst
Ankur Gulati — Analyst
Swapnil Kabra — Analyst
Anil Parikh — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Thomas Scott India Limited Conference call. Please stay connected, the call will begin shortly. You have been connected to Thomas Scott India Limited conference call. Please take next and the call will begin shortly. Ladies and gentlemen, good day and welcome to Thomas Scott India Limited Q3 and 9 Months FY 2026 Earnings Conference Call hosted by Velouram Advisors. 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 this 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 Ms. Parvangi Jain from Velorem Advisors. Thank you. And over to you Ms. Jain.
Purvangi Jain — Analyst
Good afternoon everyone and a warm welcome to you all. My name is Pravangi Jain from Velourim Advisors. We represent the investor relations of Thomas Scott India Limited. On behalf of the company I would like to thank you all for participating in the company’s earnings conference call for for the third quarter and nine months ended of the financial year 2026. Before we begin let me mention a short cautionary statement. Some of the statements made in today’s earnings conference call may be forward looking in nature. Such forward looking statements are subject to risks and uncertainties which could cause actual results to differ from those anticipated.
Such statements are based on management’s beliefs as well as assumptions made by and information currently available to the management. Audiences are cautioned not to place any undue reliance on these forward looking statements in making any investment decisions. The purpose of today’s earnings call is purely to educate and bring awareness about the company’s fundamental business and financial quarter under review. Let me now introduce you to the management participating with us in today’s earnings call and hand it over to them for their opening remarks. We have with us Mr. Vedant Bang, Managing Director heading the E Commerce division of the company.
Without any delay I request Mr. Vedant to start with his opening remarks. Thank you and over to you sir.
Vedant Bang — Managing Director, Head of E-commerce Division
Thank you Bharvangari and good afternoon to everyone and a very warm welcome to all of you for joining our earnings conference. As some of you may be new to our company, I would like to begin with a brief overview about the company and then move to our onto our operational and financial performance for the third quarter and the nine month ended of the financial year 2026. Thomas Core India Limited was incorporated in 2010 as a traditional apparel manufacturer and has since evolved over the years into a technology enabled fashion retailer. The company has been formed through a demerger from Bung Overseas Limited with a vision of creating a focused retail and fashion business.
Initially we operated as a contract manufacturer for apparels from our Sholapur facility for reputed domestic clients. This way laid the foundation for strong product quality, disciplined manufacturing and deep relationships across the apparel ecosystem. Over the years we have identified an opportunity to move closer to the consumer and build our own retail identity. Building on the legacy of our manufacturing excellence, Thomascott has transformed into a digital first data driven fashion company integrating technology, analytics and manufacturing to deliver trend led products with speed and precision. Our plug in play ecosystem combines real time data forecasting, real time demand for inventory optimization and rapid product launch capability.
This build for demand model allows us to bring new styles to market in a very short time thereby managing inventory risk and ensuring high responsiveness to consumer preferences. Today we operate 12 plus brands and 22,000 SKUs including our own flagship brand Thomas Kot. We also support major global international brands through partnerships with marketplaces. Our products are distributed through leading online platforms like Myntra and others as well as to our own offline stores in Bangalore for our brand Thomas Cott. With manufacturing units in Sholapur, Bangalore and Gurgaon and fulfillment centers across India, we ensure a high degree of control over quality, efficiency and delivery speed.
Positioned in the online premium fashion segment Thomas Scott Our own brand caters to aspirational brand conscious consumers who value style and quality at accessible prices. We continue to strengthen our technology and analytics platforms. Our own platform thread AI and catalog AI are now being actively deployed across product planning, demand forecasting and catalog management. These tools allow us to identify emerging fashion trends quickly, gain pricing insights and determine high demand products leading to better conversion rates and faster response to changing market preferences. Building on a strong foundation, we continue to focus on scaling our operations efficiently, deepening our brand presence and leveraging technology to drive sustainable profitable growth.
With that background, let me now take you through the company’s performance for the third quarter and nine months ended of financial year 2026. For the quarter under review we delivered our highest ever quarterly sales performance this quarter. Revenue from operations stood at INR 56 crore, an increase of 46%. Year on year EBITDA for the period stood at rupees 8 crore reflecting a 41% increase. Year on year the EBITDA margins stood at 11.92%. Profit after tax stood at 5 crore, an increase of 67% year on year and PAT margin stood at 7.54%. For the nine months ended of the financial year, revenue from operations stood at 177 crore, an increase of 56% year on year.
EBITDA for the period stood at 22 crore of 75% year on year with EBITDA margins at 12.65%. Net profit for nine months stood at about 13 crore rupees registering an 82% year on year increase with PAT margins of 7.4%. This strong financial performance reflects disciplined execution and operating leverage gained from our scale and digital model. This performance was despite the fact that during the quarter we encountered an unforeseen incident at one of our warehouses in Vivandi in Maharashtra on 25th November 2025. An accidental fire resulted in the loss of inventory and certain fixed assets stored at that location.
I am relieved to share that there were no loss or injury to life. The affected inventory was adequately insured under a valid insurance policy. The estimated losses are fully covered and the insurance claim process is currently underway. Thanks to the swift response of our teams, we were able to restore the supply chain operations very quickly and minimize disruption as much as possible to our customers and channel partners. This incident has further reinforced our focus on strengthening risk management framework and enhancing operational resilience across the organization. In other updates, our own brand Thomas Scott recorded revenues of 27 crores marking a 91% year on year growth reflecting the rising strength of our own direct to consumer franchise and sharper assortment.
Planning the license and other brand segment sustained steady momentum, reporting revenue figures of 34 crore up 18% year on year driven by healthy traction across key partner platforms. Meanwhile, contract manufacturing business contributed Rs. 5 crore registering a robust growth of 11% year on year supported by improved capacity utilization and enduring client relationships. Demand conditions during the quarter remain encouraging. Our expansion into new categories including winterwear, contributed incremental revenue streams and supported overall growth. We remain confident in our long term strategy and are committed to delivering sustainable growth backed by prudent financial management and disciplined execution.
With this now, I open the floor for questions. Thank you.
Questions and Answers:
operator
Thank you very much. We’ll now begin with the question and answer session. Anyone who wishes to ask the question may press Star and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles participants. You may press Star and one to ask the question. The first question is from Rehan Sayed from three Netra Asset managers, please go ahead.
Rehan Syed
Yeah, good afternoon. Thanks for taking my question. So sir, my first question is around your inventory levels that have risen significantly to IDR 77 crore as you. I I understand as you scale your SKU count which has reached over 31,216 further grad 26. So how are you ensuring that the highway approach doesn’t lead to a long tail of slow moving inventory in your fulfillment center? This is my first question.
Vedant Bang
Sure. I’ll, I’ll, I’ll. I’ll take one, one question at a time. So on the inventory management part I just want to be clear that the SKUs that we report are the number of SKUs that we’ve launched to date. Not all of these SKUs are in stock which means that there could be a number of SKUs which would have sold through over a period. And if you see the incremental SKUs within this quarter, it has been at the constant pace that we have been recording quarter on quarter. In fact, much of the growth is coming from going deeper in STUs that have performed much better in the previous periods.
So the space of launch remains constant. There is very slight acceleration in launch of SDUs which is commensurate with us entering into H2 where the festive season is. However, that remains stable generally and the in stock SQs are not is actually the correct metric to look at and we will see how we can update how we release that information so that it gives more knowledge. In any case, I just want to reiterate on one of our long standing high width low depth strategies. So it is important to understand that when we launch a style we do not launch a lot of inventory in that style.
It is just 100, 120 units that we launch across, you know, four, five, six sizes to just test out. Once this test is completed and then only do we decide based on certain performance markers whether we have to scale or not due to this test and scale model. Generally the inventory contribution in some of these styles is very less, you know, is very less to launch our style. But yes, once we have identified how well it is performing, our ability to scale is what drives future growth and profitability. So this is the core of our model and how we are doing things and that remains to be there other than this obviously even the sizes that we are launching.
So one is doing high with flow depth, the other is launching smart inventory. Based on actual trend insights that we do, we identify what is actually working, which micro markets which is keywords are actually working on marketplaces and we launch based on that. So we are launching very specifically where there is organic demand. Having said that, even then, you know, there is end of cycle, end of life kind of inventory that does come up, you know, for which we use our end of season sale periods, which is typically in June and December, to clear out the inventory.
And those sales typically are at a discount. So largely a combination of these factors allow us to clear most of the inventory, you know, within a 180 to 40 day kind of period. And that’s for the tail inventory, the period that I was speaking about, not for the general. On an average, even then if there is certain amount of inventory that cannot be liquidated, then we have a liquidation team based out of Bangalore that looks into how brand markers can be removed and then this can be removed at a certain discount in alternative market. But again, that’s a very small percentage of the overall inventory.
So all in all, the various steps that I mentioned allow us to kind of manage inventory more effectively. This is to answer your first question. I will pause here in case you’d like to ask the second question.
Rehan Syed
Very clearly. And my second question is around your receivable side that your trade receivers have climbed up to INR 71 crore as of H1FY 26, up from 5 crore 25. So given that 94% of your revenue is now B2C which usually involves shorter payment cycle, so what is the reason for this increase and what steps are being taken to improve the cycle?
Vedant Bang
Right.
Rehan Syed
So connecting with this.
Vedant Bang
Sure. Please, please complete
Rehan Syed
my question.
Vedant Bang
Yeah, please.
Rehan Syed
And yeah, connecting with this question, like could you please give the overview of your how your stores are performing in Bangalore?
Vedant Bang
Sure. So that would be three questions. I’ll take question two. First on the receivables. With respect to receivables, there are a couple of factors that are important to understand. One is that our general payment cycle online, you know, is about 45 days, 30 to 45 days. With the marketplace partners, we are also selling a lot of inventory on B2B 2C model. Okay. Essentially thereby removing all various variables in terms of logistic costs and those kind of things. So in those cases also there is a credit cycle associated with it. Having said that, in the case of pure B2C we show all customer returns as a receivable till such time that the inventory is received back by us for any point of time, some portion of our receivables would actually be customer returns and stock that is spending to be received again.
So that’s the second aspect to understand with stands and receivables so that technically stock standing within the scope of receivables. And that’s mostly from an accounting point of view how we represent things. And the last point is that most of our sales for the past quarters, including this current quarter, have been concentrated in the third month of the quarter. Largely because the festive or the sale periods are falling up. Just to give you an example, last year it was March was EID and Ugadi. Padwa. June was end of season sale, September was the Sera sale and again December was end of season winter.
So because the of revenue concentration in month three of, of a given period, about you know, 50, 60% revenue coming in month three, thereby the receivables kind of, you know, showcase a point in time effect of being higher than normal which reverses over the general course of business. So a combination of these three factors have to be understood to look at this with greater clarity. But just to be clear, yes, receivables are something that would normalize over a period of time. As we scale it is that we are working on multiple models. But as this would also kind of come to a more stable level.
But so so far as the sale concentration in monthly, that is kind of the major factor that results in certain amount of escalation because most of the receivables emanate from that particular month. Yeah. Question three on stores. So the stores have been performing well, but again as I said, it’s just six stores at the moment, which is a very low base. They are not a major contributor to the overall revenue or to the capital deployed of the company at this point of time. And currently we continue to be focused on getting greater depth within E Commerce online or greater within E commerce online.
And that focus continues to remain at this point it is again too early. It’s only been a quarter, you know, since the last time we kind of looked at performance. It’s still a bit too early to kind of look at it. But we are to go kind of do a full review in March and maybe as a part of the next set of investor presentation release, we can talk a little bit about how the stores are performing more specifically.
Rehan Syed
Yeah. Okay. And last one, bookkeeping question. Like if you can just highlight how you are seeing the quarter four regarding any industry headwinds or tailwinds. If you just specify anything on that.
Vedant Bang
Sure. So quarter four again remains a generally upbeat quarter from a demand point of view. We do see good demand overall. Again month three where we have our EID and sale happening that is going to be the critical month that would be the defining month for us. But largely it remains from, from a demand point of view, things seem to be positive. Some of our bets that we did this year in terms of winter where have paid off well, some of it would show effect has shown effect in Q3 and some of it will show effect in Q4 as well.
Other than this, there are, you know, few lateral projects in terms of increasing width that we are working on. And at the same time we are also looking at how we can take, how we can work with the right partners who can distribute inventory globally as well. There’s an entire global e commerce angle that has come into play right now. But these are small seeds that we are putting in right now which may give a bigger result over next few quarters. At this point of time, the focus continues to remain to be in depth within the categories and within the brands that we are working in at the moment with positive demand momentum.
Rehan Syed
Okay, okay, okay. That’s it for myself and good.
Vedant Bang
Thank you.
operator
Thank you, thank you. Next question is from the line of Ankush Agarwal from Surge Capital. Please go ahead.
Ankush Agrawal
Yeah, hi. Thank you for taking my question. So firstly, I mean we have seen a sharp jump in our other expense during the quarter. So is there something to read over there? It’s a normal course of business.
Vedant Bang
Yeah. So that’s, thank you for that question. Other expenses have largely escalated because increased marketing initiatives on our side from a Diwali Dasera point of view. So you need to kind of get greater brand visibility during this time because the spends across the board from a competitive landscape is generally higher marketing. So this is something that we had to, you know, the visibility trends to get the right amount of visibility onto our products. And that is what has happened in this particular period. Again for us the visibility spends are largely ROI oriented. So we kind of make sure that we are still earning the right price kind of ROI on the spends that we do, you know, out there.
So this is to answer on the other expenses, largely owing to marketing, increased marketing expenses during festive period to ensure that brand gets the right amount of visibility and does not lose out on visibility to other competitors. But it’s absolutely in the.
Ankush Agrawal
Okay. Secondly, in your notes to account you mentioned that we have taken a write off of inventory of about 22 crores and that same has been written off in the pnl. But your expense doesn’t tally that. We have written off that 22 crores in the PNL. So just wanted to understand where we have Written off that amount.
Vedant Bang
Sure. I’ll just clarify on the accounting of it. So we have, we have a valid insurance claim. Our insurance policy completely covers this value in question. So what we have done is we’ve written off the carrying value of the inventory and based on the relevant communications that we’ve had with our surveyors and with the insurance company, based on that there is a certain amount that we are, that is expected to be recovered and that has been recognized as a receivable which is equal to the carrying value of this inventory. So what has effectively happened is that there is a write off in the P and L which is based on the value of the stock and there is also a exceptional gain that, that, that has been recorded on account of expected insurance claim receipts and there’s an insurance claim receivable also that has been recorded accordingly.
So com. So these are net of each other.
Ankush Agrawal
Sorry, yeah, sorry, there is no. Yeah, good. Sorry.
Vedant Bang
Yeah, yeah. The portion that is not covered by insurance which is amounting to about 31.22 lakh which is, which has been communicated to us. That part we have written off because that is something that is known to us that is not covered by insurance and that part we have written off. But yeah, net, net. The, the. The loss that has occurred on account of fire has been, has been covered against the insurance claim receivable based on the policy coverage.
Ankush Agrawal
Right. So net, net 31 lakhs is what we have written out during the quarter in the PM.
Vedant Bang
2020, 21.2, 1.8. Like CR problems.
Ankush Agrawal
Oh no. But there is a receivable against it. Right, so net impact on the P during the quarter is only that 31 lakhs.
Vedant Bang
Right? Yeah, it’s just the 33 lakhs. 31 lakh. Sorry, 31.22 lakhs.
Ankush Agrawal
Yeah, just on the receivables. So like being the D2C sort of, you know, business, one would expect that the receivers would be relatively modest. I mean I do understand that given the scale and the kind of receivables day of 30, 45 days that you’re saying. But still for a business from say for example now almost 35, 40% of our business is coming from own brands. And even if we understand that in the business that you’re doing for the license brand receives might be on the higher end. But still, I mean receivables which is close to like 100 days sort of doesn’t add up for a business like yours.
So I mean even if you say 35, 45 day sort of receivable cycle. Still that number on the books, it’s still relatively higher. So just wanted to understand one thing that I wanted to ask is since a lot of our sales are routed through our parent company bank, so is it a situation wherein some of the receivers are also stuck on on that company or that company pays us off immediately as soon as they receive the money from the marketplaces.
Vedant Bang
Okay, so there are two parts to this. One is most of our sales is given through marketplace model in within marketplace models. Also there are a number of sub models that we operate on. They are in the nature of a B2B2C transaction also in some cases. So in those cases basically there is a credit period associated. Again it depends on the model itself. But for that we get better commercial terms in terms of pricing, in terms of variability in the expenses, variable expenses. So those things are managed better in those models. So that’s why we prefer it even though the credit period is slightly on the higher side in those cases.
Having said that, the real reason why receivables kind of look to be on the higher side are, you know, one is a timing effect of concentration of revenue in a particular month. And the second is that the returns, the customer returns the way in which we account for it though it is actually stock, it is shown as returns till such time that it is received back. If I mean we can consider looking at a way of accounting or representation where that inventory actually looks in stock and you know this thing. But then we’ll have to prepare certain comparatives to make sure that you investors and this better.
Yeah, but having said that all our transactions with respect to SO one is the transactions which were happening through bang overseas which was a related party that is getting curtailed over a period of time as a percentage of the overall revenue. Most of the contracts are getting transferred directly within Thomas Scott India limited And these effects will start have already started to show from Q3 onwards will continue into Q4. So in that case also there’s direct kind of, there’s no pass through or anything. But otherwise also the pass through is just one is to one in most cases.
So it’s just a sale of a month or so that kind of remains and that churns through in the coming months.
Ankush Agrawal
Okay, so like in the very long run as you grow as a business scale and everything, do you believe there is room for substantial reduction in receivable day or it would be more of a sort of gradual reduction. It would still sort of settle at a relatively higher levels.
Vedant Bang
So We, I believe that long term receivability would settle at somewhere around 50 days. And this is under current accounting practice.
Ankush Agrawal
Sorry, I missed that number.
Vedant Bang
Sorry.
Ankush Agrawal
How many days? You said
Vedant Bang
60 days.
Ankush Agrawal
60 days.
Vedant Bang
Yeah. Long term. Long term. I’m saying long term. We believe that receivable days would settle somewhere close to 60 days. But there is a, you know, we need all the contracts to be transitioned in that manner. Our models to kind of move into pure B2C. So those kind of things are under play right now. As soon as that kind of comes into effect over a period of time, automatically you will start seeing receivable days of closer to 60 days. I can’t commit a timeline at the moment as to where we will get there because, you know, at the end of the day there are certain business considerations where we offer additional credit period as well.
But that should kind of normalize, you know, over a period of time as we scale.
Ankush Agrawal
Got it, Got it. That was helpful. Thank you.
operator
Thank you. Next question is from the line of Divya Jain from Sapphire Capital. Please go ahead.
Divya Jain
Hi sir. Am I audible?
Vedant Bang
Yes, yes.
Divya Jain
So how much did the winter wear collection contribute to our revenue this quarter?
Vedant Bang
Sure. So we believe that about. Based on our. So when we say winter, there are two parts to it actually. One is our autumn, winter 26, 25 kind of collection which is say heavier shorts and those kind of things. And then there is core winter wear articles which is like jacket, sweater, sweatshirt, those kind of products. All right. Now when I say winterwear, when I say winter wear, I just mean core winterwear products. I do not mean, you know, other articles in which there would be certain winter based launches. When I. When we look at purely winterwear products, which is largely sweaters, sweatshirt, jackets, these products have contributed somewhere close to about 15 to 20% during this particular quarter.
And in the month of December it was as high as 35%.
Divya Jain
All right. And can you quantify the inventory loss at our warehouse in Vivandi?
Vedant Bang
Yeah. So the carrying value of the inventory at our warehouse in Bhubandi has been disclosed in notes to account at 21 crore 85 lakh rupees approximately.
Divya Jain
And one last question, are expectations for revenue next year and also for EBITDA margin.
Vedant Bang
So currently we are not giving any forward looking statements in terms of the revenue or margin projections, but we will continue to remain on a growth trajectory that we have been. So you would see a very, very similar set of growth numbers is what we’re expecting over a period of time. So the growth journey will continue and we are targeting ebitda margins between 12 to 15% at any point of time. So we will maintain that obviously as we scale, there is potential for these margins to improve.
Divya Jain
All right, sir, thank you.
operator
Thank you. Next question is from the land of Harsh Shah from Samaira International llp. Please go ahead.
Harsh Shah
Hello. Hi. Thank you for the opportunity. Congratulations on a good quarter. So sir, my question is related to. Our fire incident and sir, we have recorded a write down in our P and L and we have recorded a receivable from the insurance company. So what is the timeline? When do we expect to receive the payment from the insurance company?
Vedant Bang
Sure. Thank you for the question. Since the matter is subject to, you know, insurance and survey, I can’t really comment much on it, but generally our claim is mostly claim of stock and stock claims are generally backed by, you know, strong GST documents. So based on this and based on our understanding of how claims work, stock claims are generally faster to settle. The only thing is that. The only thing is that the sheer documentation that is required to be submitted considering the high volume of transactions that were happening from this particular warehouse is on the higher side.
So. And there are certain prescribed formats in which these submissions have to happen. So there are few iterations that we have to go through. But generally, you know, once the entire documentation is completed, we don’t expect that it should take too much time for the claims to be settled and our team is on it, you know, to make sure that this happens on at the fastest pace possible. But yeah, having said that, there is no fixed timeline that I can, you know, mention at this moment. But generally stock claims, as I said, are very fast to.
Are faster in general to set.
Harsh Shah
Okay.
operator
Thank you. Next question is from the end of Ankur Gulati from Genuinely Capital. Please go ahead.
Ankur Gulati
Can you quantify revenue loss because of fire Ankur.
operator
Sorry to interrupt. We lost your audience between. Can you repeat a question from the beginning a little louder please?
Ankur Gulati
I audible now.
operator
Yes.
Ankur Gulati
Can you quantify revenue loss? I understand. 21 inventory. So if, if we have to quantify revenue loss, should we just add gross profit to this? That’s the potential revenue loss in this quarter.
Vedant Bang
Thank you for the question. I. I was. I’m thankful for you to ask this question. No. Now while it is a little difficult to say because there was a lot of effort that our teams and you know, the team at Thomascott has put in post the incident to make sure that we cover up revenue. So you know, it is, it is a little difficult to say because. Because of the Event there are certain other actions that we took. You know, factories started working a little extra, team started working more efficiently. We figured out how we can work with channel partners more deeply.
So a lot of effort that was taken by the team post the incident and a great momentum has been achieved by the team, you know, owing to that desire to kind of make sure that we do not miss targets. So that, so there was a change overall in terms of how we kind of manage things. And you know, we worked very hard to kind of ensure that our growth journey does not get impacted. Despite this setback, our supply chain was quick to react. So there’s a lot of things right from the grassroots factory worker to the teams, operational logistics teams that have worked around the clock to make sure that the journey that the company is on in terms of growth is collectively kind of achieved.
Having said that, and I’m totally speaking from my judgment and it is very difficult to quantify because maybe we would have kind of been in a very different state had that not happened. But purely based on my judgment, we feel that there would be about a 15 to 20% further revenue that we could have potentially achieved based on judgment. You know, even despite a certain amount of hard work that was put in by the teams post the particular event and some of the expenses that we have incurred in this quarter, they would still remain at the current level.
So the margins could have been also higher. But we have still kind of made sure that as much as possible the overall impact is minimized. And even for future quarters, we kind of upped the entire level of efficiency or the level at which we are operating at. So that this momentum that we are in, in terms of growth, it continues going ahead as well. But yeah, so headline is that it’s little difficult to qualify because there are certain steps that we took post that certain amount of hard work that the team has put in post that, which I’m very thankful for.
But in general, purely based on my judgment, we believe that 15 to 20% additional revenue could have been expected in this particular quarter.
Ankur Gulati
So you did 67, 15% of that is 10 crores. So steady state. It should have been close to, let’s say 75, 76 this quarter. Fair enough.
Vedant Bang
Yeah. So I mean that, that is what, 15%? So we were looking at a number closer to 75 to 80 in case the fire incident was, had not happened. But again, the, you know, it’s, it’s difficult to say.
Ankur Gulati
And in this slide, did you lose anything which you were, which you committed to some of your E Commerce clients or some of the brand. So is there a penalty clause that has triggered in the act or.
Vedant Bang
No, no, there is no penalty clause or there is no, you know, so our growth percentages have still been very high and there are no penalty clauses dictated. In general, in some contracts of ours, there are minimum guarantees that are there, but even those would not be invoked because our revenue levels are still much higher than the minimum guarantee levels. So in any case, there’s nothing from that side. In fact, Channel Partners have been very supportive through this journey and there has been certain new avenues that we have been working with Channel Partners with, you know, in terms of increasing speed to delivery by housing inventory, you know, with Channel Partners.
So those kind of models have opened up and that has resulted in making sure that the level remains.
Ankur Gulati
Last part. What about the inventory loss? Any color that. Whether you lost that mostly in your for your own showroom or was it for licensed brands or for E Commerce?
Vedant Bang
So yeah, so it was a mix. It was a very similar mix to the revenue mix overall. So generally we house inventory in a manner that is optimized for speed. So it’s not that it is concentrated with one particular brand altogether. You know, it’s concentrated very evenly across all our warehouses.
Ankur Gulati
Okay, thanks. All the rest.
operator
Thank you. Ladies and gentlemen, you may press RN1 to ask a question. Next question is from the line of Sopnil Kabra from SK Enterprises. Please go ahead.
Swapnil Kabra
Hello.
Vedant Bang
Hi Sapnil. Thank you for the question.
Swapnil Kabra
Yeah, hi Vedant. Congratulations on another quarter of good performance. So I just had a couple of questions. What exactly is driving demand for us and what are the triggers that will help us in growing it offline? And also, are we in talks with any new brands?
Vedant Bang
Sure. So generally the demand has been upbeat and you know, our test and scale model is something that is servicing us better than before where we have a lot of top ranking products that we have created over this period of time and there is good amount of demand and ranking on those products and they are driving kind of continuous, profitable sales for us. So going deeper in general with our existing brands and making sure that we are able to maintain ranking through our superior quality and execution, that is kind of making sure that the demand is maintained or the demand momentum is maintained at this point of time.
I can’t really comment on any brand that we are onboarding or are working or are looking at because that is generally competitive information for us. But the focus at this point of time is in terms of going deeper in terms of the existing brands. That we are working with and also kind of focusing how we can leverage our e commerce know how, you know, to create additional channels or demand even with the current brand pool. Probably you will hear more on this in the March quarter once there are certain contract signings or launches that happen which are in the pipeline.
But till such launches or contract signings are completed, I’m unable to comment on them.
Swapnil Kabra
Yeah. So is this a function of better customer discovery or anything else that you. Want to add here? Marketing, I mean.
Vedant Bang
Yeah, so it’s really a function of making sure that our products that are top ranked continue to remain top ranked, you know, and we keep adding more and more top ranked products. So our, you know, we are doing small launches, small batch launches, seeing how things perform. So our inventory investment is very low. But the products that hit, they are big hits and we have to just make sure that we are maintaining them with the right quality in stock all the time. And as soon as that happens, marketplaces in general start pushing product by themselves.
Your product kind of starts climbing the ranks and getting more visibility by itself. So this momentum has kind of come in and that is contributing to greater demand for us.
Vedant Bang
Yeah. Thanks, Matul.
operator
Thank you. Next question is from the line of Anil Parikh, individual investor. Please go ahead.
Anil Parikh
Hi, am I audible?
operator
Yes sir, you’re audible.
Anil Parikh
Okay. Thank you for taking my question. Hi Vedant. I was just trying to understand the business of thumbscot in a little more detail. I was going through your website and I see products which are listed at a price point of greater than 4,000 for even shirts and jeans. I was just wondering because when you compare this pricing to popular brands like Levi’s, when it comes to denims and jeans, they are priced at a lower price point. So I guess my question is which age group is your primary target audience? Any details you could share on what percentage of your sales go to under 20? Age group between 20 and 30 and so on would really help.
And in addition, how your expensive products, how quickly do they move compared to products under 1500? Could you share with me some details? Could you give us a little bit. Of color on that?
Vedant Bang
Sure. So there are two parts to your question. One is on pricing for Thomas Scott brand and the other is on the demographics. I’ll take the first question in terms of pricing for Thomas Scott brand. So Thomas Scott has been launched as an online, first online focused brand. Okay. When we had launched essentially at that point of time, even right now, there are certain browsing pages that are available on marketplaces that are available to only a certain discount percentage. All right, so there is a high mrp, high discount kind of strategy that was implemented for some of the product lines back then and it has continued even today to make sure that we are relevant in those browsing pages.
It is more of a strategy that we use to make sure that we can get as much additional visibility for our products as possible by being able to enter those pages. And you may have seen some of those products generally, but our selling price is not that high. You know, it is mostly at par with what a premium brand would be. So our denims typically have an average selling price of close to actually 1200 rupees. Our trousers are close to again 1200 rupees. Shorts are between 800 to 1000 rupees. That’s where the average selling price tends to trend.
So generally it’s a good, you know, good, good. It’s a good selling price from an online point of view. It is slightly more than what you will find for, you know, a lot of other brands online. But again, I want to emphasize that the quality that we offer and the kind of product that we offer, the same factories that make goods for world class brands are also making for Thomas Scott. And there are certain, you know, additional cost associated with it. But it’s this very quality that kind of creates a repeat customer behavior for us.
So that’s the reason why our pricing may be on slightly the higher side, but I don’t think it is remarkably higher than the competition. Having said that, overall it’s just a high mrp, high discounting kind of thing. That and those products that you may have seen, that you may have formed that view. But generally pricing is at par. And in terms of demographics, so our major demographic actually is the 25 to 40 years segment and there is also the secondary demographic that we target which is between 20 to 25. Essentially. A lot of our purchases, a lot of purchases that happen are for young individuals who are young men who are moving into their first job or into corporate jobs or have just, you know, in the first two, three years of their corporate jobs.
A lot of our marketing initiatives also towards it kind of seed us as the preferred brand for, you know, a casual go to office or go to go out or daily wear, you know, positioning. And then these customers tend to remain, you know, repeat customers for a long term period of time, ensuring brand loyalty. So that’s how we kind of target our customers. But yeah, the major demographic in terms of actual sales is about 25 years to 40 years.
Anil Parikh
Yeah, that’s Great. I have a quick follow up. How do you see this, the consumption landscape in India change for an apparel company like yours? Say if we talk about two years out or five years out, any information on that would be tremendously helpful because you’re an online marketplace for apparel. How do you see this consumption pattern change? What does it look like it’s going to be three, four years out?
Vedant Bang
Sure, sure. So when we look at online, I will just talk about online apparel first and then I’ll kind of zoom into where we are. If you look at online apparel, it was growing at a very steady rate, you know, right up to Covid, maybe somewhere around 30, 35% kind of growth rates that some of the marketplaces were experiencing right up to Covid. In Covid, there was a J shaped kind of increase in online purchasing. This was largely driven by, you know, the lockdowns. And this resulted in the first time customers, you know, your first time customers kind of trying online, doing the test and buy those kind of things.
And now these customers who were bulk first time customers that were created during COVID they are now the repeat customers who are doing the 30th, 40th, 50th purchase online. What we have found in terms of our understanding of the purchase patterns, we have found that as these customers are going from their first purchase to their 30th or 40th purchase, their basket size and the kind of brand that they are purchasing are both increasing. By brands increasing, I mean they’re premiumizing in general. This was something that we recognized in early 2024. And that’s when we decided that, you know, premiumization as a trend is going to continue because of number of factors.
One is with repeat purchases, increasing confidence in online, that is the first factor. And the second factor is an increase in the aspirational class overall who are aspiring to buy products of a superior quality or a superior make. And the third factor is also disposable incomes increasing in general for the younger consumers. So a combination of these three factors made us believe that the right space for us to be would be from the mass premium to premium kind of segment online. And that’s where we veered our entire focus. We believe that this market will show outsized growth against the baseline growth that online is experiencing online apparel is experiencing.
Generally, online apparel in major marketplaces is experiencing a 25 to 35% kind of growth. Even right now we believe that there will be outside growth that would be there in the more premium or mass premium segments. And our focus will Continue to remain out there.
Anil Parikh
So the mass premium and the premium segments that you’re defining, are you defining it somewhere in the price bracket of thousand to 1500?
Vedant Bang
Yes. So from 750 or right up to 2000, you know, is the bracket that we’re looking at.
Anil Parikh
Okay. And my last question is, you know, what percentage of products sold come back as return?
Vedant Bang
Sure. So this differs usually from brand to brand and category to category. And there are two types of returns. I’ll just put a little bit of light on this. In our case, our customer returns are quite low. So we have customer returns of somewhere Approximately close to 20%, which is lower than 28 to 30% that most other apparel brands experience. In terms of customer returns, our return to origin, which is basically in the case of cash on delivery COD orders where the customer does not accept the order. So generally at the industry level it’s anywhere between 10 to 20% depending on how localized your inventory and how fast you deliver to the customer is.
In our case it is as low as 6 to 9%. So generally our return percentages are lower than the benchmark. Two reasons driving this from a customer returns point of view, it’s our superior quality and the value that we are giving to customer, you know, at that price point. And in terms of rto, it’s because of our speed, our localization of inventory that we are able to kind of have lower return to origin RTO cases. So yeah, that’s, that’s on the customer returns.
Anil Parikh
Excellent. Thank you so much.
operator
Thank you. Next question is from the land of Ankurwal from Search Capital. Please go ahead.
Ankush Agrawal
Yeah, hi everyone. Thanks for the opportunity again. So a core part of our business growth is driven by us identifying trends and then, you know, launching SKUs and benefiting from them. But can you give some sense of how much of our business would still be reliant on say SKUs or designs those were launch say one year or two years back. Because unless we have a base business and as the business size grows, I think driving growth from new trends every now and then would slightly become difficult at a larger scale. So just wanted to understand how the base business is shaping up.
Vedant Bang
Sure. So the positive is that we are focused in menswear as a segment where the trends are very long cycle. So even today, amongst the bestseller products that we created, say two or three years back out, maybe just 2 or 3% of those products have actually gone into a detrend bucket. Otherwise these trends are long term. In fact, in the case of menswear, we find that launching more colors, if a base color see a black color shirt is doing well. And if we launch a few more colors in that we end up finding that customers are also purchasing those other colors once they have confidence in the first color that they purchased.
So the trends are very long cycle. And you can capitalize deeper on trends in menswear once we kind of identify what’s working and launch lateral products as well with color variations. So you know, and as I said for that we launched two or three years back, the return date has not been more than 2 to 3%. So we are stacking up a lot of bestsellers or rather a lot of high rank products over a period of time and that is driving a lot of our growth as well. Having said that, it is still important to keep accumulating those bestsellers and that is why the fashion engine also needs to keep churning.
So it’s, it’s a double engine. Growth is a double engine of fashion bets as well as replenishment or high rank style. And we need to kind of maintain the balance between the two. We are maintaining a very constant rate at which we are launching new SKUs. It is accelerating at a constant rate. Just to be very clear, it is not like if you launch 5000 this quarter, it’s same 5000, 5200, 5300 SKUs in the coming quarter. But again our bed sizes are so small that it becomes insignificant, lesser and lesser significant as a percentage of the overall launches that we do.
Ankush Agrawal
That was. Thanks.
operator
Thank you. A reminder to all the participants. You may press Star and one to ask a question. A reminder to all the participants, you may press star N1 to ask a question. As there are no further questions, I will now hand the conference over to the management for closing comments. As there are no further questions, I’ll now hand the conference over to the management for closing comments. Sir, would like to give any closing comments.
Vedant Bang
I would like to thank all participants in this earnings conference call. Of course, if you have any further questions or would like to know more about the company, please do reach out to our investor Relations manager at Colorum Advisors. I would also like to thank Palorum Advisors for engineering this conference and the entire team. So thank you.
operator
Thank you very much on behalf of Thomas Scott India limited that concludes this conference. Thank you for joining us. And you may now disconnect your lines.