Q1 2027 Max India Ltd Earnings Call

August 12, 2026

Operator: Ladies and gentlemen, good day and welcome to the Q1 FY 2027 earnings conference call hosted by Max India Limited. 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 touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Rajit Mehta, MD and CEO from Max India Limited. Thank you, and over to you, sir.

Speaker #1: As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Speaker #1: 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 has been recorded.

Speaker #1: I now hand the conference over to Mr. Ajit Mehta, MD and CEO of Max India Limited. Thank you, and over to you, sir.

Speaker #2: Thank you. Namaste, everybody. A very good morning to all of you. On behalf of Max India Limited, we extend a very warm welcome to all of you for the Q1 FY27 earnings call.

Rajit Mehta: Thank you. Namaste, everybody. A very good morning to all of you. On behalf of Max India Limited, we extend a very warm welcome to all of you for the Q1 FY27 earnings call. Sincerely, thank you for your continued support, your trust, your confidence, which keeps us encouraging to undertake this journey in a very fast evolving sector. Really appreciate your time for joining us today. Let me share a few updates. Before that, I have with me my colleague, Ishaan Khanna, who is the CEO for Antara Assisted Care Services. Ajay Agrawal, who is Deputy CEO, CFO, Antara Senior Living and Head of Investor Relations. Sandeep Pathak, who is the CFO for Max India and also the legal counsel for Max Group.

Rajit Mehta: Thank you. Namaste, everybody. A very good morning to all of you. On behalf of Max India Limited, we extend a very warm welcome to all of you for the Q1 FY 2027 earnings call. Sincerely, thank you for your continued support, your trust, your confidence, which keeps us encouraging to undertake this journey in a very fast evolving sector. Really appreciate your time for joining us today. Let me share a few updates. Before that, I have with me my colleague, Ishaan Khanna, who is the CEO for Antara Assisted Care Services. Ajay Agrawal, who is Deputy CEO, CFO, Antara Senior Living and Head of Investor Relations. Sandeep Pathak, who is the CFO for Max India and also the legal counsel for Max Group.

Speaker #2: Sincerely, thank you for your continued support, your trust, your confidence, which keeps encouraging us to undertake this journey in a very fast-evolving sector.

Speaker #2: Really appreciate your time for joining us today. Let me share a few updates. Before that, I have with me my colleague, Shan Khanna, who is the CEO of Antara Assisted Care Services.

Speaker #2: Ajay Agarwal, who is Deputy CEO, CFO, Antara Senior Living, and Head of Investor Relations. Sandeep Pathak, who is the CFO for Max India and also the Legal Counsel for Max Group.

Speaker #2: Ankit, who is the CFO for Antara Assisted Care; Abhishek K. Singh, who is part of our IR team; Devraj from SGA; and Rahul as well, who are IR advisors.

Rajit Mehta: Ankit, who is the CFO for Antara Assisted Care, Abhishek Singh, who is part of our IR team, Devraj from SGA, and Rahul as well, who are IR advisors. We uploaded the deck yesterday, so hopefully, all of you have had a chance to go through it. I think if I start with what happened in the last quarter, it has been just execution. We have been focused on executing, and therefore you are able to see now green shoots in all parts of the business. Would like to inform you that after a long wait, we have now issued offer of possessions to all our 340 residents in Antara, Noida in the month of June 2026. This is something we have been waiting for. This is a very important milestone in Antara's journey. We will be operationalizing the first community in NCR.

Speaker #2: We uploaded the deck yesterday, so hopefully all of you have had a chance to go through it. I think if I start with what happened in the last quarter, it has been just execution, execution, execution.

Speaker #2: We have been focused on executing, and therefore you are able to see green shoots in all parts of the business. I would like to inform you that, after a long, long wait, we have now issued offers of possession to all our 340 residents in Antara Noida in the month of June 2026.

Speaker #2: This is something we have been waiting for. This is a very important milestone in Antara's journey. We'll be operationalizing the first community in NCR, while we have many, many learnings from Dehradun.

Rajit Mehta: While we have many learnings from Dehradun, this is going to be quite different for us as well. 340 units, 200, 300 people moving in the next 30 to 45 days. This is going to be a vibrant and buzzing community. We raised a demand of about INR 169 crores with the offers of possession. INR 30 odd crores were collected within June, but the rest has now come, most of it in July and August. As on date, approximately 75% of total dues have been collected. The rest are becoming due now, and we should be able to collect them as well. We have started to already put the team together. There are some people we have seconded from Dehradun to make sure the learnings and the culture of Dehradun also permeates into Noida. We will be ready to welcome the residents in a few weeks from now.

Speaker #2: This is going to be quite different for us as well: 340 units, 200 to 300 people moving in over the next 30 to 45 days. It's going to be a vibrant and buzzing community.

Speaker #2: We raised a demand of about ₹169 crore with the offers of possession. About ₹30 crore was collected within June, but the rest has now come—most of it in July and August.

Speaker #2: As of today, approximately 75% of the total dues have been collected. The rest are now becoming due, and we expect to be able to collect them as well.

Speaker #2: We have already started to put the team together. There are some people we have seconded from Dehradun to make sure the learnings and the culture of Dehradun also permeate into Noida.

Speaker #2: And we'll be ready to welcome the residents in a few weeks from now. After that, the focus will now shift to seeing whether we can go ahead and get approval for Phase Two, which is where we realize most of our profits.

Rajit Mehta: After that, the focus will now shift to saying that can we go ahead and get the approval for phase II, which is where we realize most of our profits, just to remind you. While the average prices at which we sold Noida were between INR 7,000 to INR 10,000, the last sale being INR 11,000 or so. The rates have moved significantly up, and they are in the range of INR 16,000, INR 18,000 plus. So hopefully when we launch phase II, we should be able to realize the profit as well. We continue to focus on growth of other geographies. I know some of you will be waiting impatiently saying, "Why haven't we announced more growth?" Because we are in the last stages of diligence for a wonderful opportunity in Bangalore. It is about 300 odd units.

Speaker #2: Just to remind you, while the average prices at which we sold in Noida were between 7,000 to 10,000, the last sale being 11,000 or so, the rates have moved significantly up, and they are in the range of 16,000, 18,000 plus.

Speaker #2: So, hopefully, when we launch Phase Two, we should be able to realize the profits as well. We continue to focus on growth in other geographies.

Speaker #2: I know some of you will be waiting impatiently, saying, "Why haven't we announced more growth?" But we are in the last stages of diligence for a wonderful opportunity in Bangalore.

Speaker #2: It's about 300-odd units. It's in North Bangalore, 25 minutes from the airport in Devanahalli, overlooking the Nandi Hills at the back. Potential realization is about ₹900 crore in terms of sales value.

Rajit Mehta: It is in North Bangalore, 25 minutes from the airport in Devanahalli, overlooking the Nandi Hills at the back. A potential realization about INR 900 crores in terms of sales value. We are in the last stage of diligence now with the developer, so let us see how that goes. Also aggressively working on a beautiful opportunity in Dehradun. We have had a long waiting list. We do not have inventory to sell. We have found a small piece of land. It might be just less than 150 units, but given the sales price we are commanding, the sales value will be again INR 850 to INR 900 crores. So if you look at our 1.5 million square feet ambition, about INR 1,800 crores of value, that we should be able to achieve with these two. We are still working on some more geographies as well.

Speaker #2: We are in the last stage of diligence now with the developer, so let's see how that goes. We are also aggressively working on a beautiful opportunity in Dehradun.

Speaker #2: We have had a long waiting list. We don't have inventory to sell. We have found a small piece of land. It might be just less than 150 units, but given the sales price we are commanding.

Speaker #2: The sales value will again be ₹850 to ₹900 crores. So, if you look at our 1.5 million square feet ambition—about ₹1,800 crores of value—that we should be able to achieve with these two.

Speaker #2: But we are still working on some more geographies as well. But these two are very specific, so I thought I'll mention them to you.

Rajit Mehta: But these two are very specific, so I thought I will mention them to you. We are also in dialogue with people in Chennai, Chandigarh, and Lucknow. Whereas these two we know will help us meet the commitment for this year. We will provide disclosure and more details once we execute the definitive documents. The expansion in assisted care is exactly as per plan. The occupancy in 485 beds is gradually increasing, and is giving us confidence to explore further expansion sometime later part of the year. AGEasy is also growing steadily. Whatever teething issues we have faced with our D2C channel or marketplace is now behind us, and I will share some numbers with you as we go forward. The efforts are to make sure we are able to manage the inventory days, given the current geopolitical situation.

Speaker #2: We are also in dialogue with people in Chennai, Chandigarh, and Lucknow. But these two, we know, will help us meet the commitment for this year.

Speaker #2: And obviously, we'll provide disclosures and more details once we execute the definitive documents. The expansion in assisted care is exactly as per plan. The occupancy in 485 beds is gradually increasing.

Speaker #2: And it's giving us confidence to explore further expansion sometime in the later part of the year. AGC is also growing steadily. Whatever teething issues we have faced with our D2C channel or marketplace are now behind us.

Speaker #2: And I will share some numbers with you as we go forward. The efforts are to make sure we are able to manage the inventory days, given the current geopolitical situation.

Speaker #2: That is something that's come under pressure because of logistics costs and the ships not being available to bring the material from China. But that is something we are focusing on and deploying capital very prudently.

Rajit Mehta: That is something that has come under pressure because of logistics costs and the ships not being available to bring the material from China. But that is something we are focusing on and deploying capital very prudently. We are very clear in our focus in terms of scalability and achieving profitability and demonstrating path to profitability. I will share some numbers as I go forward to substantiate what I am saying. If you look at the consolidated numbers, the revenue grew at Q1 FY27 stood at INR 68.6 crores compared to INR 41.3 crores in Q1 FY26, representing a YoY growth of 66%. On a sequential basis, my revenue is marginally declined, primarily due to the lumpy, where the DM income comes to us. The EBITDA loss for Q1 FY27 stood at INR 25 crores compared to INR 23.2 crores in Q1 FY26 and INR 6.8 crores in Q4 FY26.

Rajit Mehta: That is something that has come under pressure because of logistics costs and the ships not being available to bring the material from China. But that is something we are focusing on and deploying capital very prudently. We are very clear in our focus in terms of scalability and achieving profitability and demonstrating path to profitability. I will share some numbers as I go forward to substantiate what I am saying. If you look at the consolidated numbers, the revenue grew at Q1 FY 2027 stood at INR 68.6 crores compared to INR 41.3 crores in Q1 FY26, representing a YoY growth of 66%. On a sequential basis, my revenue is marginally declined, primarily due to the lumpy, where the DM income comes to us. The EBITDA loss for Q1 FY 2027 stood at INR 25 crores compared to INR 23.2 crores in Q1 FY26 and INR 6.8 crores in Q4 FY26.

Speaker #2: We are very clear in our focus in terms of scalability and achieving profitability, and demonstrating a path to profitability. I will share some numbers as I go forward to substantiate what I'm saying.

Speaker #2: If you look at the console numbers, the revenue grew in Q1 FY27 and stood at ₹68.6 crore compared to ₹41.3 crore in Q1 FY26, representing a year-on-year growth of 66%.

Speaker #2: On a sequential basis, revenues marginally declined, primarily due to the lumpy way the DM income comes to us. The EBITDA loss for Q1 FY27 stood at ₹25 crore compared to ₹23.2 crore in Q1 FY26 and ₹6.8 crore in Q4 FY26.

Speaker #2: While revenues have declined in AUC due to cyclical impact, the profitability decline was primarily due to the impact of the exceptional DM fee received in the previous quarter, reflecting the lumpy nature of this revenue.

Rajit Mehta: While revenue saw a decline in the earnings due to cyclical impact. The profitable decline was primarily due to the impact of the exceptional DMP received in the previous quarter, reflecting the lumpy nature of this revenue. If I give you some numbers for comparison, if I look at FY25, FY24, and FY26, the revenue on consolidated basis was INR 175 crores in FY24, INR 145 crores in FY25, and INR 119 crores in FY26. So revenue grew. The EBITDA was INR 57 crores in FY24, INR 139 crores in FY25, and INR 121 crores in FY24. The reason between FY24 and FY25 was basically we put up 250 beds and also launched AGEasy. But as you can see now, as the revenue is increasing, the EBITDA losses are now coming down. So this is a demonstration of our commitment to work towards profitability.

Speaker #2: If I give you some numbers for comparison—if I look at FY25, FY24, and FY26—the revenue on a consolidated basis was 175 in FY24, 145 in FY25, and 119 in FY26.

Speaker #2: So, revenue grew. The EBITDA was 57 in FY24, 139 in FY25, and 121 in FY26. The reason between FY24 and FY25 was basically we put up 250 beds and also launched AGC.

Speaker #2: But as you can see now, as the revenue is increasing, the EBITDA losses are now coming down. So, this is a demonstration of our commitment to work towards profitability.

Speaker #2: As of June 30th, 2026, the treasury assets at Max India stood at about ₹21 crore, with a consolidated net worth of ₹372 crore.

Rajit Mehta: As of 30 June 2026, the treasury assets in Max India Limited stood at about INR 21 crores with a consolidated net worth of INR 372 crores. Now coming to residences. Starting with Dehradun, the operations continue to be profitable. We continue to focus on deeper engagement with our residents, cost optimization, and profitability. Operating revenue was INR 6.2 crores in Q1 FY27, which is 1.1 times YoY basis. Marginally down by INR 7 lakhs, primarily due to club membership. These are all cyclical things will catch up. But our operation profit was a shade better, INR 0.92 crores, which is up 2.3 times YoY and 1.2 times QoQ, driven by continued cost optimization. There were four units which were re-leased, which gave us additional revenue, approximately INR 1.9 crores in marketing fee. The community is now fully occupied, quite stable. Therefore, the growth will be linear in the future.

Rajit Mehta: As of 30 June 2026, the treasury assets in Max India Limited stood at about INR 21 crores with a consolidated net worth of INR 372 crores. Now coming to residences. Starting with Dehradun, the operations continue to be profitable. We continue to focus on deeper engagement with our residents, cost optimization, and profitability. Operating revenue was INR 6.2 crores in Q1 FY 2027, which is 1.1 times YoY basis. Marginally down by INR 7 lakhs, primarily due to club membership. These are all cyclical things will catch up. But our operation profit was a shade better, INR 0.92 crores, which is up 2.3 times YoY and 1.2 times QoQ, driven by continued cost optimization. There were four units which were re-leased, which gave us additional revenue, approximately INR 1.9 crores in marketing fee. The community is now fully occupied, quite stable. Therefore, the growth will be linear in the future.

Speaker #2: Now, coming to residences, starting with Dehradun, the operations continue to be profitable. We continue to focus on deeper engagement with our residents, cost optimization, and profitability.

Speaker #2: Operating revenue was ₹6.2 crores in Q1 FY27, which is 1.1 times year-on-year. Marginally down by ₹7 lakhs, primarily due to club membership.

Speaker #2: These are all cyclical things. They'll catch up. But our operating profit was a shade better—0.92, which is up 2.3 times year-on-year and 1.2 times Q1Q.

Speaker #2: Driven by continued cost optimization. There were four units which were released, which gave us additional revenue of approximately ₹1.9 crore in marketing fees. And the community is now fully occupied, quite stable.

Speaker #2: Therefore, the growth will be linear in the future. Coming to Gurgaon, which was the first intergenerational project in Gurgaon—Estate 360—developed by Max Estates, it is fully sold out.

Rajit Mehta: Coming to Gurugram, which was the first intergenerational project in Gurugram Estate 360, developed by Max Estates, fully sold out. Collection continues to be strong, INR 22.5 crores, taking the ITD collection to INR 556 crores with a collection efficiency of 87% from inception till 26 June. Antara has earned INR 47.69 crores of management fee till 30 June 2026, out of which INR 3 crores has accrued in the current quarter. The second intergenerational project, Estate 361, which we only launched, if you recall, in December, total 360 units. We launched 181st and then 180 in June. As of June end, the bookings were 154. April, May, June, the market was sluggish given the geopolitical situation, but it has now caught up. While we sold only 27 units in Q1 FY27, in the month of July alone, we sold about 34 units, and a similar trend continues in August.

Rajit Mehta: Coming to Gurugram, which was the first intergenerational project in Gurugram Estate 360, developed by Max Estates, fully sold out. Collection continues to be strong, INR 22.5 crores, taking the ITD collection to INR 556 crores with a collection efficiency of 87% from inception till 26 June. Antara has earned INR 47.69 crores of management fee till 30 June 2026, out of which INR 3 crores has accrued in the current quarter. The second intergenerational project, Estate 361, which we only launched, if you recall, in December, total 360 units. We launched 181st and then 180 in June. As of June end, the bookings were 154. April, May, June, the market was sluggish given the geopolitical situation, but it has now caught up. While we sold only 27 units in Q1 FY 2027, in the month of July alone, we sold about 34 units, and a similar trend continues in August.

Speaker #2: Collection continues to be strong at ₹22.5 crore, taking the ITD collections to ₹556 crore, with a collection efficiency of 87% from inception till June 26.

Speaker #2: And Antara has earned ₹47.69 crore of management fee till 30th June '26, out of which ₹3 crore has accrued in the current quarter. The second intergenerational project, 361, which we only launched, if you recall, in December, has a total of 360 units.

Speaker #2: We launched 181st and then 180 in June. As of June end, the bookings were 154. So April, May, June, the market was sluggish given the geopolitical situation, but it is long caught up.

Speaker #2: So, while we sold only 27 units in Q1 FY27, in the month of July alone, we sold about 34 units, and a similar trend continues in August.

Speaker #2: So, we have caught up. The market is getting back to a little bit of normalcy, and therefore, the sales velocity has now totally caught up on that side.

Rajit Mehta: We have caught up. The market is now getting back to a little bit of normalcy, and therefore the sales velocity has now totally caught up on that side. Total collections, INR 108.2 crores since inception. About 194, 197 units sold so far. On the Antara Assisted Care side, total bed capacity of 485 beds across eight care homes in NCR, Bengaluru, and Chennai. We have now completed and relaunched the DLF phase 2 Gurugram center in July 2026, and all the eight centers are now operational. Happy to report that five out of the eight care homes are trending as per the operating model, and we are confident that others will also follow the same. We continue to watch this progress very carefully. The care home and services revenues were INR 12.03 crores, up by 1.5x YoY and 1.1x QoQ.

Speaker #2: Total collections: ₹108.2 crore since inception. So about 194–197 units sold so far. On the Antara Assisted Care side, total bed capacity of 485 beds across eight care homes in NCR, Bengaluru, and Chennai.

Speaker #2: We have now completed and relaunched the DLF Phase Two, Gurgaon Center on July 26, and all eight centers are now operational. Happy to report that five out of the eight care homes are trending as per the operating model.

Speaker #2: And we are confident that others will also follow the trend, and we'll continue to watch this progress very carefully. The Care Home and Services revenues were ₹12.03 crores, up by 1.5x year-on-year and 1.1x in Q1 quarter-on-quarter.

Speaker #2: The care homes revenue on a standalone basis was 1.3x in Q1 Q. And the OBDs, the occupied bed days, went up by 23% on a Q1 Q basis.

Rajit Mehta: The care homes revenue on a standalone basis was 1.3x QoQ and the OBDs, the occupied bed days, went up by 23% on a QoQ basis. Many care homes, as I said, are showing very good trends. The occupancy, Bannerghatta, Bangalore, 41% in Q1 FY27, up from 37% in Q4 FY26. Gurugram 41% from 33% in Q4 FY26. Whitefield, Bangalore 18% from 8%, and OMR, Chennai 12% versus 3% for the same period. You can now see how the occupancy is increasing across the care homes. Our care homes and services have now served about 2,700 patients during Q1 FY27 and about 53,000 patients in reception. Revenue in the segment rose to INR 12.03 crores, which is 1.5, as I said earlier, on YoY basis and 1.1 on QoQ basis.

Rajit Mehta: The care homes revenue on a standalone basis was 1.3x QoQ and the OBDs, the occupied bed days, went up by 23% on a QoQ basis. Many care homes, as I said, are showing very good trends. The occupancy, Bannerghatta, Bangalore, 41% in Q1 FY 2027, up from 37% in Q4 FY26. Gurugram 41% from 33% in Q4 FY26. Whitefield, Bangalore 18% from 8%, and OMR, Chennai 12% versus 3% for the same period. You can now see how the occupancy is increasing across the care homes. Our care homes and services have now served about 2,700 patients during Q1 FY 2027 and about 53,000 patients in reception. Revenue in the segment rose to INR 12.03 crores, which is 1.5, as I said earlier, on YoY basis and 1.1 on QoQ basis.

Speaker #2: Many care homes, as I said, are showing very good trends. The occupancy at Bannerghatta, Bangalore, was 41% in Q1 FY27, up from 37% in Q4 FY26.

Speaker #2: Gurugram, 41% from 33% in Q4 FY26. Whitefield, Bangalore, 18% from 8%. And OMR, Chennai, 12% versus 3% for the same period. So you can now see how the occupancy is increasing across the care homes.

Speaker #2: Our care homes and services have now served about 2,700 patients during Q1 FY27 and about 53,000 patients since inception. Revenue in the segment rose to ₹12.03 crores, which is 1.5x, as I said earlier, on a year-on-year basis.

Speaker #2: And 1.1 on a Q1 Q-on-Q basis. The voice of customer was a steady 84% in Q1 FY27 and remained stable in July as well, reflecting the consistent quality of care and service we are delivering.

Rajit Mehta: The voice of customer was a steady 84% in Q1 FY27, remained stable in July as well, reflecting the consistent quality of care and service we are delivering. Happy to also report that four of our care homes achieved an ever highest RPOB, which is average revenue per occupied bed day of INR 7,000 plus in June 2026. This is really a testimony that the customers are appreciating our quality service at a higher cost. Three of the four care homes have shown significant improvement in contribution margins, which now reflects the past profitability. On AGEasy, we received a net revenue of INR 19 crores in Q1 FY27, showing a 1.3x YoY growth. It was lower than QoQ of INR 23 crores driven basically by moderation of demand beyond the Q4 peak demand period.

Rajit Mehta: The voice of customer was a steady 84% in Q1 FY 2027, remained stable in July as well, reflecting the consistent quality of care and service we are delivering. Happy to also report that four of our care homes achieved an ever highest RPOB, which is average revenue per occupied bed day of INR 7,000 plus in June 2026. This is really a testimony that the customers are appreciating our quality service at a higher cost. Three of the four care homes have shown significant improvement in contribution margins, which now reflects the past profitability. On AGEasy, we received a net revenue of INR 19 crores in Q1 FY 2027, showing a 1.3x YoY growth. It was lower than QoQ of INR 23 crores driven basically by moderation of demand beyond the Q4 peak demand period.

Speaker #2: Happy to also report that four of our care homes achieved an ever-highest RPOF, which is average revenue per occupied bed day, of ₹7,000 plus in June 2026.

Speaker #2: This is really a testimony that the customers are appreciating our quality service at higher cost. Three of the four care homes have shown significant improvement in contribution margins.

Speaker #2: Which now reflects the past profitability. On AGC, we received a net revenue of ₹19 crore in Q1 FY27, showing a 1.3x year-on-year growth.

Speaker #2: It was lower than Q1, Q2 of ₹23 crores, driven basically by moderation of demand beyond the Q4 peak demand period. As all of us know, the March quarter is always high from a revenue perspective to cover the annual targets.

Rajit Mehta: As all of us know, March quarter is always high from a revenue perspective to cover the annual targets, but some of this will get caught up as we go on in the year. The ARR now is trending towards 120 and a monthly run rate of about INR 10 crores in July. With marketplaces INR 6 crores, the ROAS of 3.8 and a D2C, the exit ROAS of 2.6. You can see from the numbers that now we are catching up on the ROAS as well. The offline channel achieved its highest-ever revenue of INR 5 crores, growing 18% QoQ basis. A very good response to the newly launched product, Commode Wheelchair. The overall ROAS, which is return on ad spend in Q1 FY27 exit has improved to 2 versus 1.8 in Q4, marking a 10% growth. The Satisfaction Index in Q1 FY27 was 82%.

Rajit Mehta: As all of us know, March quarter is always high from a revenue perspective to cover the annual targets, but some of this will get caught up as we go on in the year. The ARR now is trending towards 120 and a monthly run rate of about INR 10 crores in July. With marketplaces INR 6 crores, the ROAS of 3.8 and a D2C, the exit ROAS of 2.6. You can see from the numbers that now we are catching up on the ROAS as well. The offline channel achieved its highest-ever revenue of INR 5 crores, growing 18% QoQ basis. A very good response to the newly launched product, Commode Wheelchair. The overall ROAS, which is return on ad spend in Q1 FY 2027 exit has improved to 2 versus 1.8 in Q4, marking a 10% growth. The Satisfaction Index in Q1 FY 2027 was 82%.

Speaker #2: But some of this will get caught up as we go on in the year. The ARR now is trending towards 120. And our monthly run rate was about ₹10 crore in July, with marketplaces at ₹6 crore.

Speaker #2: The ROAS is 3.8, and in D2C, the exit ROAS is 2.6. So, as you can see from the numbers, we are now catching up on the ROAS as well.

Speaker #2: The offline channel achieved its highest-ever revenue of ₹5 crore, growing 18% quarter-on-quarter. There was a very good response to the newly launched product, the commode wheelchair.

Speaker #2: The overall ROAS, which is return on ad spend, in Q1 FY27 exit has improved to 2, versus 1.8 in Q4, marking a 10% growth.

Speaker #2: The SAT index in Q1 FY27 was 82%. AGC now has 112 products launched to date, out of which 86 are currently live. We are now also present on Quick Commerce, which includes Blinkit and Zepto.

Rajit Mehta: AGEasy now has 112 products launched till date, out of which 86 are currently live. We are now also present on quick commerce, which is Blinkit and Zepto. Our diaper category, which was the new unique diaper that we had launched, which we have a patent on, now we are hitting a 1,500 pack sale per day. A six times growth in market share on Amazon over the last 60 days. As you know, this is a unique product. It is the only adult diaper with smart absorption technology, and now it is showing up in our increasing market share as well. Four patents have been granted to us for products, and there are three patents which have been filed for senior specific innovative products, reflecting our commitment to innovation.

Speaker #2: Our diaper category, which was the new unique diaper that we had launched, and which we have a patent on, is now hitting 1,500 pack sales per day.

Speaker #2: Which is really sorry. A 6x growth in market share on Amazon over the last 60 days. As you know, this is a unique product.

Speaker #2: It is the only adult diaper with smart absorption technology. And now, it is showing up in our increasing market share as well. Four patents have been granted to us for products.

Speaker #2: And there are three patents that have been filed for senior-specific, innovative products, reflecting our commitment to innovation. And this really will be the biggest differentiator and the moat that we will have.

Rajit Mehta: This really will be the biggest differentiator and the more that we will have, the more patents we have, the more stronger our products will be differentiated. AGEasy so far has touched about 9 lakh lives with about 88,000 repeat customers and serves in reception, achieved an NPS of about 60, which is quite high. That reflects improving customer stickiness as your usage deepens over time. Gross margins for online channels, this is D2C and marketplaces, maintained at 45% in Q1 versus 46%, despite very challenging geopolitical situations which have pushed up the COGS for each product. From this quarter, we are over-indexing on brand awareness. We have onboarded Anupam Kher as our brand ambassador, and therefore we did spend some money, which you will see as an expense in the financials submitted to you. But we are seeing the payback as well.

Speaker #2: The more patents we have, the stronger our products will be differentiated. AGC so far has touched about 900,000 lives, with about 88,000 repeat customers.

Speaker #2: And served since inception, achieved an NPS of about 60, which is quite high. But that reflects improving customer stickiness, as your usage deepens over time.

Speaker #2: Gross margins for online channels, which is D2C and marketplaces, were maintained at 45% in Q1 versus 46%, despite very challenging geopolitical situations that have pushed up the COGS for each product.

Speaker #2: From this quarter, we are over-indexing on brand awareness. We have onboarded Anupam Care as our brand ambassador, and therefore, we did spend some money, which we'll see as an expense in the financials submitted to you.

Speaker #2: But we are seeing the payback as well. In the month of July, the ARR has now picked up to about ₹10 crores. Our conversion rates have improved from 2% to 3.5%.

Rajit Mehta: In the month of July, the ARR has now picked up to about INR 10 crores. Our conversion rates have improved from 2 to 3.5, and our ROAS has gone up as well. The brand spend that we did is already showing the payback in the month of July itself. If I was to really consolidate AACS, and look at Q1 last year, Q4, and Q1 this year, the revenue was 21, 32, and 30 respectively, with EBITDA losses at 14, 18.5, and 19. So despite the brand spend, despite the cost of goods going up, we've been able to bring down the EBITDA losses or keep them flat with revenue going up quarter on quarter. The last update I'd like to give you is on the Antara Integrated Wellness Clinic. As you know, this is our key differentiator for residences.

Speaker #2: And our ROAS has gone up as well. So, the brand spend that we did is already showing a payback in the month of July itself.

Speaker #2: If I was to really consolidate ASCS, and look at Q1 last year, Q4, and Q1 this year, the revenue was 21, 32, and 30, respectively.

Speaker #2: With the EBITDA losses at $14 million, $18.5 million, and $19 million, despite the brand spend and despite the cost of goods going up, we've been able to bring down the EBITDA losses or keep them flat, with revenue going up quarter on quarter.

Speaker #2: The last update I'd like to give you is on the Antara Integrated Wellness Clinic. As you know, this is our key differentiator for residences.

Speaker #2: We had launched a pilot in Gurugram in our care homes to see what the impact is and what the receptivity of customers would be. This is a wellness clinic anchored around modern medicine but combines modalities of Ayurveda, ozone therapy, infrared sauna, nutrition, etc.

Rajit Mehta: We had launched a pilot in Gurugram in our care home to see what is the impact and what is the receptivity of customers. This is a wellness clinic anchored around modern medicine but combines modalities of Ayurveda, ozone therapy, infrared sauna, nutrition, et cetera. Financially, the net revenue for Q1 FY27 was INR 15.75 lakhs. This is expected at this stage to be a negative contribution margin. This is the first quarter only, but we should be able to cover it up as we go forward. On the customer SAT score, very high satisfaction, 96%, with average revenue per client of INR 4,000. The footfalls have grown steadily from 199 sessions to 307 sessions in June. It is a rapid increase, and therefore we will now focus on spending some marketing monies and scaling up this, and also making sure we launch this in Antara, Noida, as the residents start checking in.

Speaker #2: Financially, the net revenue for Q1 FY27 was ₹15.75 lakhs. At this stage, we expect a negative contribution margin, which is typical for the first quarter.

Rajit Mehta: This is the first quarter only, but we should be able to cover it up as we go forward. On the customer SAT score, very high satisfaction, 96%, with average revenue per client of INR 4,000. The footfalls have grown steadily from 199 sessions to 307 sessions in June. It is a rapid increase, and therefore we will now focus on spending some marketing monies and scaling up this, and also making sure we launch this in Antara, Noida, as the residents start checking in.

Speaker #2: But we should be able to cover it up as we go forward. On the customer satisfaction score, very high satisfaction—96%, with average revenue per client of $4,000.

Speaker #2: The footfalls have grown steadily from 199 sessions to 307 sessions in June. It's a rapid increase. Therefore, we'll now focus on spending some marketing monies and scaling up this.

Speaker #2: And also making sure we launch this in Antara Noida as the residents start checking in. On the partnership front, we continue to work with Star Union, the IT Life Insurance, to integrate senior wellness with financial literacy.

Rajit Mehta: On the partnership front, we continue to work with Star Union Dai-ichi Life Insurance, to integrate senior wellness with financial literacy, culminating in specialized financial products for seniors, and with Indian Institute of Technology Delhi on mobility products and well-being nutrition and nutraceuticals and supplements, and Swaasa on self-diagnosis for lung health. Our brand continues to gain strong recognition with Antara Senior Care receiving the Visionary Leadership in Senior Living Award at The Economic Times Real Estate Conclave in June 2026, honoring our contribution to India's silver economy. We also concluded the NABH accreditation in Bannerghatta, which is quite essential for TPA Insurance. We have gone through some more inspections for NABH in the other care homes. In summary, Q1 FY27 has been full of action and execution.

Speaker #2: ...culminating in specialized financial products for seniors, and with IIT Delhi on mobility products and Wellbeing Nutrition on nutraceuticals and supplements, and SWASA on self-diagnosis for lung health.

Speaker #2: Our brand continues to gain strong recognition, with Antara Senior Care receiving the Visionary Leadership in Senior Living Award at the HT India Real Estate Expo on June 26, honoring our contribution to India's silver economy.

Speaker #2: We also concluded the NABH accreditation in Bannerghatta, which is quite essential for TPA insurance. And we have gone through some more inspections for NABH and the other care homes.

Speaker #2: So, in summary, Q1 FY27 has been full of action and execution. We remain confident in our underlying trajectory, backed by the successful handover of possession at Antara Noida.

Rajit Mehta: We remain confident in our underlying trajectory backed by successful handover of positioned Antara, Noida, steady sales momentum in Gurugram now, and improving occupancy trends in care homes, and early signs of recovery in the AGEasy ROAS. As we look ahead, we remain committed to profitability. As we said, AGEasy, perhaps, by January or last quarter this year, will be in that zone. We will continue to contain losses even though we scale up care homes to make sure we are committed to our path to profitability. I will stop here and welcome any questions that you might have. Thank you once again for joining the call.

Speaker #2: Steady sales momentum in Gurugram now, and improving occupancy trends in care homes, as well as early signs of recovery in the AGC ROAS. As we look ahead, we remain committed to profitability.

Speaker #2: As we said, AGC, perhaps by January or the last quarter this year, will be in that zone. And we'll continue to contain losses even as we scale up care homes, to make sure we are committed to our path to profitability.

Speaker #2: So I'll stop here and welcome any questions that you might have. Thank you once again for joining the call.

Speaker #1: 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 touch-tone telephone.

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 1 on their touchtone 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 a question queue assembles. We take the first question from the line of Harsh from Ionis Alpha. Please proceed.

Speaker #1: 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.

Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue assembles. We will take the first question from the line of Hirsh from Ionis Alpha. Please proceed.

Speaker #2: Yeah, hi. Hi Rajat and team. A couple of questions from my end. Firstly, a broader question: I just wanted to double-click on the EBITDA break-even by the end of the financial year target.

[Analyst] (Ionis Alpha): Yeah, hi. Hi, Rajat and team. A couple of questions from my end. Firstly, a broader question. I just wanted to double-click on the EBITDA breakeven by the end of the financial year target. If we could just understand, particularly from the cost angle, what should change in this quarter versus, say, Q4 of this financial year? Even from a top-line basis, where should one look at? I understand the resi business can be quite lumpy, but just talking about AGEasy and care homes, what should that look at, broadly speaking, by the end of the financial year? Secondly, on the care homes part, just wanted to understand your thought process as to where do we stand now versus what was the initial plan, especially on the occupancy levels. Reason why I am asking this is that, is there any plans to start adding beds in near future?

Harsh Kundnani: Yeah, hi. Hi, Rajat and team. A couple of questions from my end. Firstly, a broader question. I just wanted to double-click on the EBITDA breakeven by the end of the financial year target. If we could just understand, particularly from the cost angle, what should change in this quarter versus, say, Q4 of this financial year? Even from a top-line basis, where should one look at? I understand the resi business can be quite lumpy, but just talking about AGEasy and care homes, what should that look at, broadly speaking, by the end of the financial year?

Speaker #2: If we could just understand, particularly from the cost angle, what should change in this quarter versus, say, Q4 of this financial year? And even from a topline basis, where should one look at?

Speaker #2: I understand the Reggie business can be quite lumpy, but just talking about AGC and care homes, what should that look like, broadly speaking, by the end of the financial year?

Speaker #2: Secondly, on the care homes part, I just wanted to understand your thought process as to where we stand now versus what was the initial plan, especially on the occupancy levels.

Harsh Kundnani: Secondly, on the care homes part, just wanted to understand your thought process as to where do we stand now versus what was the initial plan, especially on the occupancy levels. Reason why I am asking this is that, is there any plans to start adding beds in near future? Have we reached that inflection point?

Speaker #2: The reason why I'm asking this is, are there any plans to start adding beds in the near future? Have we reached that inflection point?

[Analyst] (Ionis Alpha): Have we reached that inflection point?

Speaker #3: Yeah. So, Hirsh, I cannot comment on specific numbers for FY27 or in the future. But when I made the comment on profitability, I meant on AGC, which is our commitment.

Rajit Mehta: Well, Harsh, I cannot comment on specific numbers of FY27 in the future, but when I made the comment on profitability, I meant on AGEasy, which is our commitment. That is one. Care homes are obviously, since we built out the bed in the last 12 months, they will have to wait out the 8, 10 quarters it takes for the bed to be profitable at a unit level. ASLs will continue to be lumpy, so when we get the DMP and et cetera, it will show as a bit positive, right? That varies depending on the projects we sign in DMP. To your question, I will repeat the numbers once again, so that you are able to see what I am saying. If you look at our overall consolid basis, the revenue has steadily gone up from INR 175 to INR 145 to INR 190 over the last three years.

Rajit Mehta: Well, Harsh, I cannot comment on specific numbers of FY 2027 in the future, but when I made the comment on profitability, I meant on AGEasy, which is our commitment. That is one. Care homes are obviously, since we built out the bed in the last 12 months, they will have to wait out the 8, 10 quarters it takes for the bed to be profitable at a unit level.

Speaker #3: That is one. Care homes are, obviously, since we built out the beds in the last 12 months, they will have to wait out the 8 to 10 quarters it takes for the bed to be profitable at a unit level.

Speaker #3: ASL will continue to be lumpy. So, when we get the DMP and etc., it will show as a positive, but that varies depending on the projects we sign in DMPs, right?

Rajit Mehta: ASLs will continue to be lumpy, so when we get the DMP and et cetera, it will show as a bit positive, right? That varies depending on the projects we sign in DMP. To your question, I will repeat the numbers once again, so that you are able to see what I am saying. If you look at our overall consolid basis, the revenue has steadily gone up from INR 175 to INR 145 to INR 190 over the last three years.

Speaker #3: But to your question, I'll repeat the numbers once again so that you're able to see what I'm saying. If we look at our overall consolidated basis, the revenue has steadily gone up from 175 to 145 to 190 over the last three years.

Speaker #3: The EBITDA losses were 57, went up to 139 because we added 250 beds and launched AGC in that year, and then brought 139 down to 121, despite the revenue going up.

Rajit Mehta: The EBITDA losses were INR 57, went up to INR 139 because we added 250 beds, launched AGEasy in that year, and then brought INR 139 down to INR 121 despite the revenue going up. This trajectory will continue for FY27 in terms of revenue going up substantially and EBITDA losses getting contained, because now we are not adding any new beds at this point of time. AGEasy will continue to throw better contribution margins. As we go in the next and next quarter, you will find this trajectory to be substantiated. Occupancy, as I said, the occupied bed days have gone up by 23%. If you look at respective care homes, Bannerghatta is from 37% gone to 41%, Gurugram from 33% to 41%, Whitefield, Bangalore from 8% to 18%, and OMR from 3% to 12%.

Rajit Mehta: The EBITDA losses were INR 57, went up to INR 139 because we added 250 beds, launched AGEasy in that year, and then brought INR 139 down to INR 121 despite the revenue going up. This trajectory will continue for FY 2027 in terms of revenue going up substantially and EBITDA losses getting contained, because now we are not adding any new beds at this point of time. AGEasy will continue to throw better contribution margins. As we go in the next and next quarter, you will find this trajectory to be substantiated. Occupancy, as I said, the occupied bed days have gone up by 23%. If you look at respective care homes, Bannerghatta is from 37% gone to 41%, Gurugram from 33% to 41%, Whitefield, Bangalore from 8% to 18%, and OMR from 3% to 12%.

Speaker #3: This trajectory will continue for FY27, in terms of revenue going up substantially, and the EBITDA losses getting contained because now we are not adding any new beds at this point of time.

Speaker #3: AGC will continue to throw better contribution margins. So, as we go on to the next quarter and the one after that, you'll find this trajectory to be substantiated.

Speaker #3: Occupancy, as I said, the OBD beds have gone up by 23%. But if you look at the respective care homes, Banerghatta has gone from 37% to 41%.

Speaker #3: Gurugram from 33 to 41, Whitefield Bangalore from 8 to 18, and OMR from 3 to 12. So, five of the eight care homes are now trending to the model that we have shared with all of you, respectively.

Rajit Mehta: Five of the eight care homes are now trending to the model that we have shared with all of you, respectively. Five of them. The rest is work to do as we go along. Now we are confident. Sometime, the inflection point, if you recall, was October, November. We had said we will wait till that time and then start making the call on expansion. We are sticking to that timeline. No changes in that as well.

Speaker #3: Five of them, right? The rest is work to do as we go along. But now, we are confident. So, sometime, the inflection point, if you recall, was October–November.

Speaker #3: We had said we’ll wait till that time and then start making the call on expansion. So, we are sticking to that timeline—no changes in that as well.

Speaker #4: Just to add, Hirsh, on AGC, what are the metrics that you could look at, and how that will move to profitability as your CM2?

Ishaan Khanna: Just to add, Harsh, on AGG, what are the metrics that you would look at, and how that will move to profitability is your CM2. If you see historically, we have reported -80%, -70% CM2s for AGG. As of July, the marketplace with CM2 came down to -17%, 17%, and this number for all other channels will continue to improve at the back of improving return on advertising spend, which Rajit reported earlier. This will be corresponding to better gross margins and higher top line. That is how the CM2 will keep improving to achieving a break-even till Q4.

Speaker #4: If you see historically, we've reported minus 80, minus 70 percent CM2s for AGC. As of July, the marketplace is, CM2 came down to minus 17 percent, 17 percent.

Speaker #4: And this number for all other channels will continue to improve on the back of improving return on advertising spend, which Rajesh reported earlier. And this will correspond to better gross margins and a higher top line.

Speaker #4: So that is how the CM2 will keep improving to achieve a break-even by Q4.

Speaker #3: Some of the ablation you see in, for example, employee expenses, is basically some provisions getting written back. So each year, we provide for variable pay.

Rajit Mehta: Some of the aberration you see in, for example, employee expenses, is basically some provisions getting written back. Each year we provide for variable pay, but when we pay out in the month of May, for Q4, the provisions get trued up, actualized. But once we start Q1, we again start providing. It is just an accounting thing in terms of provisions, nothing else.

Speaker #3: But when we pay out the month of May for Q4, the provisions get trued up—actualized. But once we start Q1, we again start providing.

Speaker #3: So, it's just an accounting thing in terms of provisions; nothing else.

Speaker #2: Understood. Just on the blended RPOP bit in care homes, I understand that the last few bed additions, or substantial bed additions, were at a higher RPOP.

[Analyst] (Ionis Alpha): Understood. Just on the blended RPO bit in care homes. I understand that the last few bed additions or substantial bed additions were at a higher RPO. Once the occupancy rises, blended RPO should be between 6,500 to 7,000. Is that the right way to look at it?

Harsh Kundnani: Understood. Just on the blended RPO bit in care homes. I understand that the last few bed additions or substantial bed additions were at a higher RPO. Once the occupancy rises, blended RPO should be between 6,500 to 7,000. Is that the right way to look at it?

Speaker #2: So RPOP should be between, a blended RPOP once these occupancies rise, should be between 6,500 to 7,000. Is that the right way to look at it?

Speaker #4: Should be near 7.5, Hirsh.

Ishaan Khanna: It should be near 7,500, Harsh.

Speaker #2: Okay. Understood. Thank you.

[Analyst] (Ionis Alpha): Okay, understood. Thank you.

Harsh Kundnani: Okay, understood. Thank you.

Speaker #3: Thank you, Hirsh.

Rajit Mehta: Thank you, Harsh.

Speaker #1: Thank you. Before we proceed, a reminder: for participants who wish to ask a question, you may press star and 1 on your touch-tone telephone. We will take the next question from the line of Nikhil Gupta from Vayu Capital.

Operator: Thank you. Before we proceed, a reminder to the participants, in order to ask a question, you may press star and one on your touchtone telephone. We take the next question from the line of Nikhil Gupta from Vayu Capital. Please proceed.

Speaker #1: Please proceed.

Speaker #2: Good morning. Thank you for the opportunity. My first question is a bookkeeping question on senior living. So, out of the ₹33 crore collection we did from the Noida community, what would be the revenue which would have been attributed to Q1?

Nikhil Gupta: Good morning. Thank you for the opportunity. My first question is a bookkeeping question on senior living. Out of the 33 odd crores collection we did from the Noida community, what would be the revenue which would have been attributed to Q1?

Speaker #4: So, one, the revenue in Noida will be booked at the SPV level. And since it's a joint venture with us, we will only be consolidating the net P&L.

Ajay Agrawal: So one, the revenue in the Noida will be booked at the SPV level. Since it is a joint venture with us, we will be only consolidating the net P&L. As regards to the joint venture company, if you are asking about the revenue recognition there, presently in June, there have been no revenue recognition because the revenue recognition is not linked with collection. It is linked with the possession or registration. The possessions are going to happen in Q2, and that is the year when all the revenue recognitions and invented write-offs will take place.

Speaker #4: Now, as regards the joint venture company, if you're asking about the revenue recognition there, presently in June, there has been no revenue recognition because the revenue recognition is not linked with collection.

Speaker #4: It is linked with the possession or registration. So the possessions are going to happen in Q2, and that’s the year when all the revenue recognition and inventory titles will take place.

Speaker #2: Thank you, Rajesh, for that answer. But somehow I'm not able to reconcile the numbers. So let's say, you have mentioned in the investor deck the odd ₹38 crore from that senior living segment.

Nikhil Gupta: Thank you, Ajay, for that answer. Somehow I am not able to reconcile the numbers. You have mentioned in the investor deck the odd 38 crore from that senior living segment. I believe around 8 crores is the treasury increment, 30 is our core operation. Around 6 is Dehradun, 3 and 4 is from our Gurugram communities. I am not able to add that 30 number. Can you please help me with that?

Speaker #2: I believe around 8 crores is the treasury income, and 30 is our core operation. So, around 6 is Dehradun, and 3 and 4 are from our Gurugram communities.

Speaker #2: I'm not able to add that 30 number. Can you please help me with that?

Speaker #4: Sorry, from where are you seeing this number? From the results?

Ajay Agrawal: Sorry, from where are you seeing this number? From the results?

Speaker #2: Yeah.

Nikhil Gupta: Yeah.

Speaker #4: So, from the results or from the investor deck?

Ajay Agrawal: From the results or from the investor day?

Speaker #2: Both. I mean, it's the same only, right?

Nikhil Gupta: Both. I mean, it's the same only, right?

Speaker #4: Residences have three components of income, sir. One is the DMC's income, what we are getting at Antara Senior. Second is the ops revenue, what I'm getting at Antara Purukur.

Ajay Agrawal: Residences have three components of income, sir. One is the DM fees income, what we are getting at Antara Senior. Second is the ops revenue, what I am getting at Antara Purukul. And third is the finance lease income, which I am getting as a re-lease in Antara Purukul. That amount was approximately INR 15 crores for the quarter. I think that's the gap what you are mentioning at that place. Since it's not a regular income for me, it's always an exception because we don't plan for a re-lease, hence I don't explicitly display this into my gross revenues in my investor release. I just simply say how much re-lease we have done and how much marketing fee I want.

Speaker #4: And third is the finance lease income, which I'm getting as a re-lease in Antarapurukur. That amount was approximately ₹15 crore for the quarter. I think that's the gap you're mentioning at that place.

Speaker #4: Since it's not a regular income for me, it's always exceptional because we don't plan for a re-lease. Hence, I don't explicitly declare this into my gross revenues in my investor release.

Speaker #4: I just simply say how much re-lease we have done and how much marketing fee I want.

Speaker #2: Okay, so the DMCs is around ₹7 crores, operation is also around ₹6–7 crores, and the finance lease is ₹15 crores.

Nikhil Gupta: Okay. The DM fees is around INR 7 crores. Operation is also around INR 6, 7 crores, and the finance lease is 15.

Speaker #4: Correct.

Ajay Agrawal: Correct.

Speaker #2: And what would be the then odd ₹8 crores that would be the treasury income at the residences level?

Nikhil Gupta: What would be then INR 8 crores? That would be the treasury income at the residences level?

Speaker #4: Correct.

Ajay Agrawal: Correct.

Speaker #2: Okay. Can you help me explain this finance lease? What is this income? I'm not able to understand this.

Nikhil Gupta: Can you help me explain this finance lease? What is this income like? I am not able to understand this.

Speaker #4: So basically, our Antarapurukur is on a lease model, wherein if any units get resold—so if somebody is exiting because of death, or they are shifting from Delhi, shifting from Dehradun, and they want to sell their property—it has to be re-leased.

Ajay Agrawal: Basically, our Antara Purukul is on a lease model, wherein if any units get resold. If somebody is exiting because of death or they are shifting from Dehradun and they want to sell their property, it has to be re-leased. They have to surrender their lease to the company, and the company have to re-lease it again. As per accounting standards, the remaining lease period, I have to recognize as a revenue, and against that I recognize the cost of lease premium. In that particular transaction, we earn some bit of a marketing fee that I account for as additional revenue in our other income.

Speaker #4: So, they have to surrender their lease to the company, and the company has to re-lease it again. So, as per accounting standards, the remaining lease period I have to recognize as revenue.

Speaker #4: And against that, I recognize a cost to lease premium. In that particular transaction, we earn a bit of a marketing fee, which I account for as additional revenue in our other income.

Speaker #2: Got it. My next question is on our integrated wellness. So, going forward three to five years, do you see this segment growing and contributing significantly to our P&L?

Nikhil Gupta: Got it. My next question is on our integrated wellness. Going forward three to five years, do you see this segment contributing significant to our P&L? Because in the annual report also, I think we have mentioned this category as a separate segment. Can you provide more color? Do we think that it can contribute significantly going forward next three to five years?

Speaker #2: Because in the annual report also, I think we have mentioned this category as a separate segment. So, can you provide more color—do we think that it can contribute significantly going forward, in the next three to five years?

Speaker #3: See, the ARWC is an integral part of our residences. We are not opening a separate business line where we will launch ARWC clinics. We will simply put them in all the residences.

Rajit Mehta: See, the AIWC is an integral part of our residences. We are not opening a separate business line where we will launch AIWC clinics. We will simply put them in all the residences so that it is a strong differentiator, very difficult to replicate. This is not just about a doctor or nurse sitting in the campus, it is about a full-fledged protocol-based integrated medicine system which we are launching in the residences. Therefore, all the revenues which come from there, difficult to predict at this point of time. But given the volume of people we are handling, let us say 340 people units in Noida Phase 1, means about 600 people. Difficult for me to comment, how much revenue we will get, but it is a strong differentiator. We will also try to put them in the care homes to be able to work as OPDs to attract footfalls. That is the intention, really.

Speaker #3: So that it's a strong differentiator, very difficult to replicate. It's not just about a doctor or nurse sitting in the campus; it's about a full-fledged, protocol-based, integrated medicine system which we are launching in the residences.

Speaker #3: And therefore, all the revenues which come from there are difficult to predict at this point of time. But given the volume of people we are handling—let's say, 340 units in Noida Phase One—that means about 600 people, right?

Rajit Mehta: Therefore, all the revenues which come from there, difficult to predict at this point of time. But given the volume of people we are handling, let us say 340 people units in Noida Phase 1, means about 600 people. Difficult for me to comment, how much revenue we will get, but it is a strong differentiator. We will also try to put them in the care homes to be able to work as OPDs to attract footfalls. That is the intention, really. We are not launching standalone clinics.

Speaker #3: It's difficult for me to comment on how much revenue we will get, but it's a strong differentiator. We will also try to put them in the care homes, to be able to work as OPDs, to attract footfalls, right?

Speaker #3: So that's the intention, really. We are not launching standalone clinics.

Rajit Mehta: We are not launching standalone clinics.

Speaker #2: Right. Well understood. The last question is on AGV. I think, somehow, the growth has been slow, but sometimes that happens—that's fine. I think we projected to almost double our revenue from ₹77 crore to around ₹150 crore.

Nikhil Gupta: Right. Well understood. The last question is on AGEasy. I think, somehow the growth has been slow, but sometimes that happens, that is fine. I think we projected to almost double our revenue from INR 77 to INR 150 odd crores. Do you still see that happening? Because somehow we are still at the INR 18 crores Q1 revenue seems very low. Some thoughts, please, on that.

Speaker #2: So do you still see that happening? Because somehow we are still at the 18 crore Q1 revenue, which seems very, very low. Some thoughts, please, on that.

Speaker #4: Hi, Ishaan here. Yes, we are still very much on track with our plan for doubling this year. If you look at the year-on-year growth, it is still significantly high.

Ishaan Khanna: Hi, Ishan here. Yes, we are still very much on our plan for doubling this year. If you see the year-on-year growth, it is still significantly high. Yes, quarter-on-quarter there has been moderation. But if you look at July numbers, which Rajeev quoted, we are already at a INR 120 crore annual revenue run rate with a INR 10 crore closing number for the month of July, which is not only an improvement in the top line, but is also complemented with a significant improvement in return on advertising spends. Which is what we were working on in Q1 to solve, so that the next three quarters of growth is at the back of a strong base, both in terms of our CM2s and our ROIs.

Speaker #4: Yes, quarter on quarter, there has been moderation. But if you look at the July numbers, which Rajesh quoted, we are already at a ₹120 crore annual revenue run-rate, with a ₹10 crore closing number for the month of July. This is not only an improvement in the top line, but is also complemented by a significant improvement in return on advertising spends.

Speaker #4: Which is what we were working on in Q1 to solve, so that the next three quarters of growth are on the back of a strong base, both in terms of our CM tools and our OS.

Ishaan Khanna: Which is what we were working on in Q1 to solve, so that the next three quarters of growth is at the back of a strong base, both in terms of our CM2s and our ROIs. Q2 to Q4, we will see a significant improvement in the top line, as now we have already demonstrated that we can efficiently do it by improving the ROIs.

Speaker #4: So, Q2 to Q4, we will see a significant improvement in the top line, as we have already demonstrated that we can efficiently do it by improving the OS.

Ishaan Khanna: Q2 to Q4, we will see a significant improvement in the top line, as now we have already demonstrated that we can efficiently do it by improving the ROIs.

Speaker #2: Thank you for the response. That's it from us. Best of luck.

Nikhil Gupta: Thank you for the response. That is it from my side. Best of luck.

Ishaan Khanna: Thank you.

Speaker #4: Thank you.

Speaker #1: Thank you. Before we proceed, a reminder to the participants: in order to ask a question, you may press star one on your touch-tone telephone. We will take the next question from the line of Rano Deep from MAS Capital.

Speaker #1: Please proceed.

Speaker #2: Yeah, thank you for the opportunity. My question is around AGV. Now, AGV's revenue has declined 18% quarter-on-quarter after the Q4 peak. How much of Q4 was genuinely seasonal versus demand pulled forward through promotions?

[Analyst] (MAS Capital): Yeah, thank you for the opportunity. My question is around AGEasy. AGEasy's revenue has declined 18% QoQ, after the Q4 peak. How much of Q4 was genuinely seasonal versus demand pulled forward through promotions? What should investors consider the normalized quarterly revenue base going forward? A connected part to the same AGEasy is we have touched 9 lakh lives till date, but only 88,000 are repeat customers. How do you distinguish between top-line growth purchase through marketing and genuine customer loyalty? The last part to that question is, what repeat rate and CAC to LTV ratio would convince you that AGEasy has become a structurally strong consumer brand?

Ranodeep Sen: Yeah, thank you for the opportunity. My question is around AGEasy. AGEasy's revenue has declined 18% QoQ, after the Q4 peak. How much of Q4 was genuinely seasonal versus demand pulled forward through promotions? What should investors consider the normalized quarterly revenue base going forward? A connected part to the same AGEasy is we have touched 9 lakh lives till date, but only 88,000 are repeat customers. How do you distinguish between top-line growth purchase through marketing and genuine customer loyalty? The last part to that question is, what repeat rate and CAC to LTV ratio would convince you that AGEasy has become a structurally strong consumer brand?

Speaker #2: And what should investors consider the normalized quarterly revenue base going forward? And a connected part to that same, AGV is like we've touched 9 lakh lives till date.

Speaker #2: But only 88,000 are repeat customers. So how do you distinguish between top-line growth purchased through marketing and genuine customer loyalty? And the last part to that question is, what repeat rate and CAC to LTV ratio would convince you that AGV has become a structurally strong consumer brand?

Speaker #4: Sure.

Speaker #3: So, I'll let Ishaan answer that. But to your question on quarter-on-quarter, there was a transition that we were doing in Q4 last year.

Rajit Mehta: Sure. I will let Ishan answer that. To your question on quarter-on-quarter, there was a transition that we were doing in Q4 last year, which causes aberration. But let Ishan explain that.

Speaker #3: Right? Which causes abrasion. But let Ishaan explain that.

Speaker #4: So I think one has to be cognizant of a couple of things in a business like AGV, which is a products business. One, there will be two impacts that we will see on how this plays out through the year.

Ishaan Khanna: I think one has to be cognizant of a couple of things in a business like AGEasy, which is a products business, is that one, there will be two impacts that we will see on how this plays through the year. One is that around the festive period, which is depending when it happens, September or October, we will see a significant surge, which we saw last year as well. Q3 was a significantly higher number compared to Q2 or September, October was the peak. We will see that same peak this year as well. The second seasonality impact that comes, which does come for products like kneecaps, nebulizers, diapers, is during the winter season where the consumption is higher. Going forward also, I would want to indicate that we will see these. It will not be linear.

Speaker #4: One is that around the festive period, which is depending on when it happens—September, October—we will see a significant surge, which we saw last year as well. Q3 was a significantly higher number compared to Q2.

Speaker #4: September and October were the peak. We will see that same peak this year as well. The second seasonality impact, which comes for products like kneecaps, nebulizers, and diapers, is during the winter season, when the consumption is higher.

Speaker #4: So going forward also, I would want to indicate that we will see these; it will not be linear. We will have these spurts during periods of either high purchases during the festive time, and then in the winter season.

Ishaan Khanna: We will have these spurts, during periods of either high purchase during the festive time and then in the winter season. What also happens towards the latter half of the year is that we do, and because we work with marketplaces, there are some big deals, the purchases that they make from us, because it is everybody's year-end and closing. That also happens. Hence you see that kind of an impact. Will we see that this year? Yes, we will see that kind of seasonality impact and festive year impact this year as well. I also mentioned that July and August, we are already seeing that it is going back to INR 120 and now INR 140, INR 150 crore ARR as well. That trajectory is picking up, giving us the confidence that the guidance we have for this year's revenue for AGEasy should certainly happen.

Speaker #4: What also happens towards the latter half of the year is that we do, and because we work with marketplaces, there are some big deals—purchases that they make from us—because it's everybody's year end and closing.

Speaker #4: So that also happens, and hence you see that kind of an impact. Will we see that this year? Yes, we will see that kind of seasonality impact and festive-year impact this year as well.

Speaker #4: Like I also mentioned, in July and August we are already seeing that it's going back to 120, and now 140–150 crore ARR as well.

Speaker #4: So that trajectory is picking up, giving us the confidence that the guidance we have for this year's revenue for AGV should certainly happen.

Speaker #2: And on the CAC to LTV ratio?

[Analyst] (MAS Capital): And on the CAC to LTV ratio?

Ranodeep Sen: And on the CAC to LTV ratio?

Speaker #4: We will currently be looking at return on advertising spend. The return on advertising spend is a critical factor because that currently tells us the efficiency that the brand is giving us and how our performance marketing is efficiently moving.

Ishaan Khanna: We will currently be looking at return on advertising spend. The return on advertising spend is a critical factor because that currently tells us the efficiency that the brand is giving us and how our performance marketing is efficiently moving. We were at, if you recall in the last quarters, we were at around 1.5 for our D2C, and we were at around 2.5 for marketplaces, which is now closer to 4 for marketplaces and 2.5 for D2C. That efficiency indicates because marketing is the biggest spend in AGEasy, so that return on advertising spend is a critical factor. On your repeat, I want to clarify one thing, that our repeats are not 18,000. Our repeats are around 88,000 to 90,000. That's the number. We are at around 10% to 12% repeat rate.

Speaker #4: We were at if you recall in the last quarters, we were at around 1, 1.5 for our D2C and we were at around 2, 2.5 for marketplaces, which is now closer to 4 for marketplaces and 2.5 for D2C.

Speaker #4: Now, that efficiency indicates that, because marketing is the biggest spend in D2C in AGV, the return on advertising spend is a critical factor.

Speaker #4: And on your repeat, I want to clarify things. One thing is that our repeats are not eighteen thousand. Our repeats are around eighty-eight to ninety thousand. That's the number we are at—around 10 to 12 percent repeat rate.

Speaker #4: One has to also understand the nature of the products we sell. Besides diapers, which is one of our top-selling products, the others don't lend themselves to repeat.

Ishaan Khanna: One has to also understand the nature of products we sell. Besides diapers, which is one of our top-selling products, the others don't lend themselves to repeat. Somebody who's bought from us one product will, at best, buy some other product, and chances of buying the same product, like if you bought a baby monitor, you will probably come back and buy a baby monitor from me maybe after a year or two. Same product repeats are lesser. The cross-sell is where the opportunity is, and that's what now we are building an engine to promote and push.

Speaker #4: So somebody who’s bought from us—one product—will at best buy some other product. And chances of buying the same product, like if you bought a BP monitor, you will probably come back and buy a BP monitor from me maybe after a year or two.

Speaker #4: So, same product repeats are lesser. The cross-sell is where the opportunity is, and that's what now we're building an engine to promote and push.

Speaker #3: But directionally, if you're able to achieve a 20%+ repeat rate, we should be in a good space.

Rajit Mehta: But directionally, if you're able to achieve a 20% plus repeat rate, we should be in good space.

Speaker #2: Sure, sure. Thanks for the clarification. Rajitsa, my next question is more of a macro question and it's directed to you. So, Max India's long-term thesis appears to be built around India's aging population and the emergence of a large silver economy, which you've explained beautifully in the past.

[Analyst] (MAS Capital): Sure. Thanks for the clarification. Rajat sir, my next question is more of a macro question and to you. Max India's long-term thesis appears to be built around India's aging population and the emergence of large silver economy, which you have explained beautifully in the past. But given the significant capital requirement to build communities, care homes, and consumer products, what prevents a large hospital chain or a real estate developer or a financial services player from eventually entering senior care and compressing your returns? What is the moat you believe will still exist 10 years from now?

Ranodeep Sen: Sure. Thanks for the clarification. Rajat sir, my next question is more of a macro question and to you. Max India's long-term thesis appears to be built around India's aging population and the emergence of large silver economy, which you have explained beautifully in the past. But given the significant capital requirement to build communities, care homes, and consumer products, what prevents a large hospital chain or a real estate developer or a financial services player from eventually entering senior care and compressing your returns? What is the moat you believe will still exist 10 years from now?

Speaker #2: But given the significant capital requirement to build communities, care homes, and consumer products, what prevents a large hospital chain, or a real estate developer, or a financial services player from eventually entering senior care and compressing your returns?

Speaker #2: What is the moat you believe will still exist ten years from now?

Speaker #3: Yeah, so let's talk about a segment separately, right? And by the way, please keep in mind, when we are saying we are building an integrated care ecosystem, we are focusing on the consumer.

Rajit Mehta: Yeah. Let's talk about a segment separately. By the way, please keep in mind when we are saying we are building an integrated care ecosystem, we are focusing on the consumer. It is the same consumer who, depending on age, medical condition, and circumstances, will need either a residence or a rehab or a diaper or a Commode Wheelchair. We have taken a customer view, number one. Number two, if you look at all the three segments, real estate players can come and replicate the infrastructure. No doubt on that. Maybe do a better job. However, the core of that product is services, not infrastructure. It is all the IP we have gained over the years in terms of what kind of engagement services, what kind of wellness services to integrate, what kind of mental wellness, emotional, social, et cetera, we will have to offer.

Speaker #3: It's the same consumer who, depending on age, medical condition, and circumstances, will need either a residence, rehab, diapers, or a wheelchair.

Speaker #3: So, we've taken a customer view, number one. Number two, if you look at all three segments, you see that real estate players can come and replicate the infrastructure.

Speaker #3: No doubt about that. And maybe do a better job. However, the core of that product is services, not infrastructure. It is all the intellectual property we have gained over the years in terms of what kind of engagement services, what kind of wellness services to integrate.

Speaker #3: What kind of mental wellness, emotional, social, etc., we'll have to offer, and all the practices that we have picked up in terms of how to handle muscle loss, frailty, anxiety, and depression.

Rajit Mehta: All the practices that we have picked up in terms of how to handle muscle loss, frailty, anxiety, depression. Now our ability to put integrated medicine inside, which is more IP-based. It is not you hire a doctor and start doing that. Which is going to be a strong differentiator. Most real estate developers, if you follow the trend, are outsourcing this. Either they are tying up with a nearby nursing home or tying up with a hospital. That is not a sustainable model. You need a doctor to stay on the campus. You need a first responder team for emergencies. You need nurses 24/7, so on and so forth. On that, our moat is going to be our entire IP around wellness services that we have developed, which we will now keep on strengthening as we go along. That is on that.

Speaker #3: And now, our ability to put integrated medicine inside, which is more IP-based—it's not that you hire a doctor and start doing that—which is going to be a strong differentiator.

Speaker #3: Most real estate developers, if you follow the trend, are outsourcing this. Either they are tying up with a nearby nursing home or tying up with a hospital.

Speaker #3: Right? That's not a sustainable model. You need a doctor to stay on the campus. You need a first responder team for emergencies. You need nurses 24/7, and so on and so forth.

Speaker #3: So, on that, our moat is going to be our entire IP around wellness services, right, that we have developed, which we will now keep on strengthening as we go along.

Speaker #3: That's on that. On the care home side, frankly, there are some hospital chains who are doing geriatric care now wanting to do care homes.

Rajit Mehta: On the care home side, frankly, there are some hospital chains who are doing geriatric care now wanting to do care homes. The simple answer I have is, if I was an investor, since I come from the healthcare world, I will prefer to spend INR 100 on the healthcare business that generates an EBITDA of 30% plus versus 18% margin. The care homes are more a hospitality with some medical care kind of business, while the hospitals are more surgery, diagnostic, and pharmacy business. So while they in a summary sense, Sameer, appear similar, the profit signatures and the competencies are very different. If a hospital decides to come into the care home, frankly, the investor should ask the question, "Why the hell are you diluting your margins?

Speaker #3: The simple answer I have is, if I was an investor, since I come from the healthcare world, I'll prefer to spend 100 rupees on the healthcare business that generates a little bit of 30% plus, versus the 18% or more in a hospitality-with-some-medical-care kind of business, while the hospitals are more surgery, diagnostic, and pharmacy business.

Speaker #3: So, while they, in a summary sense, may appear similar, the profit signatures and the competencies are very different. So, if a hospital decides to come into the care homes, frankly, the investor should ask the question: why the hell are you diluting your margins?

Speaker #3: Why are you spending your time and money, right? Either you say that you are running your hospitals totally full, you can't open more beds, and all the flow-over you want to capture.

Rajit Mehta: Why are you spending your time and money?" Either you say that you are running your hospitals totally full, you cannot open more beds, and all the flow over you want to capture. If you look at the care at home journey as well, many people are offering at-home services. But they are only offering to the captive patients. They are not able to market and find profitability. That is my answer to the second question. On AGG, there are only two moats, which is differentiated, innovative products which are senior specific and brand. Nothing else is a moat. Therefore, the patents we are filing, we already have three patents CBA filed. The more we learn about consumer behavior and the bigger brand we build is what is going to stand us in good stead. The market, by the way, individually for the product is quite large.

Speaker #3: Right? If you look at the care-at-home journey as well, many people are offering at-home services, but they're only offering them to captive patients.

Speaker #3: They are not able to market and find profitability, so that's my answer to the second question. On AGV, there are only two moats: these are differentiated, innovative products which are senior-specific, and brand.

Speaker #3: Nothing else is a moat, right? So, therefore, the patents we are filing—we already have three patents, three have been filed. The more we learn about consumer behavior and the bigger brand we build is what's going to stand us in good stead. The market, by the way, individually for the products, is quite large.

Rajit Mehta: Therefore, the patents we are filing, we already have three patents CBA filed. The more we learn about consumer behavior and the bigger brand we build is what is going to stand us in good stead. The market, by the way, individually for the product is quite large. If you look at the diaper market itself, it is about INR 2,000 to 2,500 crores kind of market.

Speaker #3: If you look at the diaper market itself, it's about ₹2,000 to ₹2,500 crore kind of market, or ₹5,000 crore only. Right? So, we are not building a ₹10,000 crore business in AGV in the next five years.

Rajit Mehta: If you look at the diaper market itself, it is about INR 2,000 to 2,500 crores kind of market.

Ishaan Khanna: 5,000.

Rajit Mehta: Or INR 5,000 crores only. We are not building a INR 10,000 crore business in AGG in the next five years. It is going to be perhaps INR 1,000 crores. So enough market to be had on that side. That is my answer to the verticals.

Speaker #3: It's going to be perhaps ₹1,000 crore. So, enough market to be had on that side. That's my answer to the verticals.

Speaker #2: Thank you. Appreciate the response, sir. Only just from a, I think, we raised it last time also, I think, with respect to the announcement about expansion.

[Analyst] (MAS Capital): Appreciate the response, sir. Only just from a, I think, we raised it last time also, I think, with respect to the announcement about expansion, if we can be a little more aggressive given, in the past you have seen couple of cities being on pause or halted. We eagerly look forward to the announcement, and I think you gave a glimpse about the Bangalore opportunity that you spoke. So look forward to that. Yeah.

Ranodeep Sen: Appreciate the response, sir. Only just from a, I think, we raised it last time also, I think, with respect to the announcement about expansion, if we can be a little more aggressive given, in the past you have seen couple of cities being on pause or halted. We eagerly look forward to the announcement, and I think you gave a glimpse about the Bangalore opportunity that you spoke. So look forward to that. Yeah.

Speaker #2: If we can be a little more aggressive, given that in the past you've seen a couple of cities being on pause or halted, we eagerly look forward to the announcement.

Speaker #2: And I think you gave a glimpse about the Bangalore opportunity that you spoke about, so I look forward to that. Yeah.

Speaker #3: Absolutely. I'm quite unfortunate. We had to unwind Chandigarh because after operations, Hindu, the height clearances were not given to communities on the flight path.

Rajit Mehta: Absolutely. Quite unfortunate we had to unwind Chandigarh because after operations resumed, the height clearances were not given to communities on the flight path. Bangalore, unfortunately, the developer ran into some financial issues. I totally appreciate that comment. We are quite focused, and in the next few months, you will find the announcements coming through.

Speaker #3: And in Bangalore, unfortunately, the developer ran into some financial issues. But totally appreciate that comment—quite focused. In the next few months, we'll find the announcements coming through.

Speaker #2: Thank you.

[Analyst] (MAS Capital): Thank you.

Ranodeep Sen: Thank you.

Speaker #3: Okay.

Speaker #1: Thank you. We will take the next question from the line of Rajvesh Singh from Vivek Investment Managers. Please proceed.

Operator: Thank you. We take the next question from the line of Rajveer Singh from Vivek Investment Managers. Please proceed.

Speaker #2: Hi, thanks for the opportunity. My question is: among the residential senior living care homes, care at home, and AGV, which business do you believe can ultimately generate the highest return on capital?

Rajveer Singh: Hi, thanks for the opportunity. My question is that among the residential senior living care homes, care at home, and AGEasy, which business do you believe can ultimately generate the highest return on capital? Where do you intend to deploy the majority of incremental capital? Yes, of course, sir.

Speaker #2: And where do you intend to deploy the majority of incremental capital?

Rajit Mehta: Okay. By nature, if you look at the way we do our business, our senior living model is quite capital light because we do not buy land. We tie up with developer partners who own land and preferably construct. There, we do not require that much of capital per project. It is very small. AGEasy, we have already done the heavy lifting and the investment. If we are able to meet our objective of FY27 last quarter being contribution positive and EBITDA positive, that will not require much capital. I think the capital will be required will be care home expansion, because each bed takes about INR 10 to 12 lakhs per bed, including the ops losses, and therefore that is going to be a business of scale. That is where most capital will go.

Rajit Mehta: Okay. By nature, if you look at the way we do our business, our senior living model is quite capital light because we do not buy land. We tie up with developer partners who own land and preferably construct. There, we do not require that much of capital per project. It is very small. AGEasy, we have already done the heavy lifting and the investment. If we are able to meet our objective of FY 2027 last quarter being contribution positive and EBITDA positive, that will not require much capital. I think the capital will be required will be care home expansion, because each bed takes about INR 10 to 12 lakhs per bed, including the ops losses, and therefore that is going to be a business of scale. That is where most capital will go.

Speaker #3: Okay. So, by nature, if you look at the way we do our business, our senior living model is quite capital-light because we don't buy land.

Speaker #3: We tie up with developer partners who own land and preferably construct. So there, we don't require that much capital per project—it's very small.

Speaker #3: AGV, we have already done the heavy lifting and the investment. So if you're able to meet our objective of FY27—last quarter being contribution positive and EBITDA positive—that will not require much capital.

Speaker #3: I think the capital that will be required will be for care home expansion, because each bed takes about 10 to 12 lakhs per bed, including the operating losses.

Speaker #3: And therefore, that's going to be a business of scale. That is where most capital will go.

Speaker #2: So, do you think the highest bed business is also going to generate the highest return on capital as well? If you're deploying so much capital there instead of in the other areas?

Rajveer Singh: Do you think that business is also going to generate the highest return on capital level? Since you are deploying so much of capital there instead of in the other areas.

Speaker #3: You see, if you look at—you're talking about ROCI, I presume. Right?

Rajit Mehta: You see, if you look at, you are talking about ROCE, I presume.

Speaker #2: Yeah. ROCI. Correct.

Rajveer Singh: Yeah. ROCE.

Rajit Mehta: Right.

Rajveer Singh: Correct.

Speaker #3: There, I feel AGV, obviously the nature of the business is such—e-commerce is not linear in growth; it jumps in terms of the ARR.

Rajit Mehta: There I feel, AGEasy obviously the nature of the business is such as e-commerce is not linear in growth. It jumps in terms of the ARR. That is going to be the highest ROCE business, followed by care homes. The ASL segment is quite

Speaker #3: That is going to be the highest ROCI in the business, followed by care homes. The ASL segment is quite IRR-based, and there our objective is to be able to build a very healthy annuity income.

Rajveer Singh: IRR.

Rajit Mehta: -IRR based, and there our objective is to be able to build a very healthy annuity income. If we are able to achieve our target of INR 1,800 crore sale value every year, we will be able to see a very healthy annuity income in 2030 and 2033. The three businesses operate a little bit differently, but between AGEasy and care homes, obviously AGEasy will have a much higher ROCE. But even the ROCE in care homes should be 23%, 24% plus.

Speaker #3: So, if you're able to achieve our target of ₹1,800 crore sale value every year, we will be able to see a very healthy annuity income in FY30 and FY33.

Speaker #3: So, three businesses operate a little bit differently. But between AGV and care homes, obviously, AGV will have a much higher ROCI. But even the ROCI in care homes should be 23, 24-plus.

Rajveer Singh: Understood. My second question is that despite strong revenue growth, the company is still reporting substantial losses. Can you give us a sense of the expected cash burn over FY27 and 2028 before the existing businesses become self-sustaining?

Rajveer Singh: Understood. My second question is that despite strong revenue growth, the company is still reporting substantial losses. Can you give us a sense of the expected cash burn over FY 2027 and 2028 before the existing businesses become self-sustaining?

Speaker #2: Understood. My second question is that, despite strong revenue growth, the company is still reporting substantial losses. So, can you give us a sense of the expected cash burn over FY27 and FY28 before the existing businesses become self-sustaining?

Speaker #3: So, I can't share projections for '27 and '28 at this point in time. I have only shared the past numbers with you. As I said, the EBITDA losses went up from 57 to 139 when we built 250 beds.

Rajit Mehta: I cannot share projections of 2027 and 2028 at this point of time. I only shared the past numbers with you. As I said, the EBITDA losses went up from 57 to 139 when we built 250 beds and we launched the AGEasy business. But since then, the revenue has increased and the EBITDA losses have come down, from 95% to 63% this year EBITDA loss. A significant drop suddenly. And this trajectory will continue in FY27. As we report next quarter, I promise you will see the reduction in 63 as well.

Rajit Mehta: I cannot share projections of 2027 and 2028 at this point of time. I only shared the past numbers with you. As I said, the EBITDA losses went up from 57 to 139 when we built 250 beds and we launched the AGEasy business. But since then, the revenue has increased and the EBITDA losses have come down, from 95% to 63% this year EBITDA loss. A significant drop suddenly. And this trajectory will continue in FY 2027. As we report next quarter, I promise you will see the reduction in 63 as well.

Speaker #3: And we launched the AGV business. But since then, the revenue has increased. And the EBITDA losses have come down. From a 95% to 63% this year.

Speaker #3: Right? EBITDA loss. Significant drop, suddenly. And this trajectory will continue in FY27 as we report next quarter. I promise you, you will see that the reduction is in 63 as well.

Speaker #2: Okay, thank you so much for answering my questions.

Rajveer Singh: Okay. Thank you so much for answering my questions.

Speaker #3: Okay.

Rajit Mehta: Okay.

Speaker #1: Thank you. A reminder to the participants: in order to ask a question, you may press star one on your touch-tone telephone. We will take the next question from the line of Vikas.

Operator: Thank you. A reminder to the participants, in order to ask a question, you may press star and one on your touchtone telephone. We take the next question from the line of Vikas, an individual investor. Please proceed.

Speaker #1: An individual investor, please proceed.

Speaker #2: Hi, sir. Thanks for your time. I just wanted to understand—since we're still making a decent amount of losses and we raised capital last year, and the cash is also limited on the balance sheet—how will we look to sustain the business going forward?

[Company Representative]: Hi, sir. Thanks for your time. Just wanted to understand since you are making a decent amount of losses still, and we have raised capital last year, and the cash is also limited on the balance sheet, how we look to sustain the business going forward? What kind of capital raising plan we have?

[Shareholder] (Private Investor): Hi, sir. Thanks for your time. Just wanted to understand since you are making a decent amount of losses still, and we have raised capital last year, and the cash is also limited on the balance sheet, how we look to sustain the business going forward? What kind of capital raising plan we have?

Speaker #2: What kind of capital-raising plan do we have?

Speaker #3: So, I mean, nothing has changed, Vikas, from what you said a year back, or even two years back, in terms of how much capital we need.

Rajit Mehta: Nothing has changed, because from what you said a year back, 2 years back, in terms of how much capital we need. The first raise was done through two tranches of rights issue and the pref issue, and the balance was supposed to be raised as we went into business. That was supposed to be done June this year, but frankly, due to better performance and we taking some credit lines to manage the working capital, inventory, et cetera, we have been able to push the second fund raise out, but the number hasn't changed.

Speaker #3: The first raise was done through two tranches of rights issue and the pref issue. The balance was supposed to be raised as we went into business.

Speaker #3: That was supposed to be done in June this year. But frankly, due to better performance and us taking some credit lines to manage the working capital, inventory, etc., we have been able to push the fund—the second fundraise—out.

Speaker #3: But the number hasn't changed, right?

Speaker #2: Another ₹40 crore you're receiving in July.

Ishaan Khanna: 40 crores we have received in July.

Speaker #3: And we've also received ₹40 crore with the second tranche of the pref issue in July. What has really changed and caused us to have to push the fund is also that the Noida position opened up.

Rajit Mehta: We have also received 40 crores as the second tranche of the pref issue in July. What has changed really, this caused us to push the fund raise also is that the Noida possession opened up and therefore those collections have come in, and we are able to utilize that. The total number of capital required has not changed for the last two years. In fact, it has come down a shade from a peak requirement which we thought was about $25 million, it has come down to about 20 or under 20 now.

Speaker #3: And therefore, those collections have come in, and we're able to utilize that. But the total amount of capital required has not changed for the last two years; in fact, it's come down a shade.

Speaker #3: From a peak requirement, which we thought was about $25 million, it's come down to about $20 million or under $20 million now.

Speaker #2: Sure. So, let's say for the next two years, what is the incremental capital required, sir, as per our thought process?

[Company Representative]: Sure. Let us say for next two years, what is the incremental capital required, sir, as per our thought process?

[Shareholder] (Private Investor): Sure. Let us say for next two years, what is the incremental capital required, sir, as per our thought process?

Speaker #3: The estimate is around 20 million.

Rajit Mehta: The estimate is around 20 million.

Speaker #2: Okay. Thank you.

[Company Representative]: Okay. Thank you.

[Shareholder] (Private Investor): Okay. Thank you.

Speaker #3: Okay.

Rajit Mehta: Okay.

Speaker #1: Thank you. We will take the next question from the line of Rajveer Singh from Vivek Investment Managers. Please proceed.

Operator: Thank you. We take the next question from the line of Rajveer Singh from Vivek Investment Managers. Please proceed.

Speaker #2: Thanks for the follow-up. My question is regarding BLS announcing its entry into senior living, so I just wanted to know your thoughts about it.

Rajveer Singh: Thanks for the follow-up. My question is regarding DLF announcing its entry into the senior living. I just wanted to know your thoughts about that. I mean, it's a big competition coming in.

Speaker #2: I mean, it's a big competition coming in.

Speaker #3: Yes, Charlie. It's not only DLS; there are other marquee investors also wanting to look at senior living. DLF, to our best understanding, though, has delayed their launch consistently for the last six months now.

Rajit Mehta: Yes, surely. It's not only DLF, it's other also marquee investors wanting to look at senior living. DLF, our best understanding, they have delayed their launch consistently for last six months now. They have an existing community in Gurgaon where they are putting one or two towers as senior living. It's not something that they're creating new. Within the existing township is what they want to do. They're tied up with most probably Medanta Hospital for doing the healthcare services, is how they're attempting it. We welcome the move actually, because all these people will spend marketing monies and create awareness for the customers. While the announcement made by DLF came six months back, we haven't noticed any impact on our sales velocity of Gurgaon. It is going as per plan for this year.

Speaker #3: They have an existing community in Gurgaon where they are putting one or two towers as senior living. It's not something that they are creating new.

Speaker #3: Within the existing township is what they want to do, and they're tied up with, most probably, Vedanta Hospital for doing the healthcare services—how they're attempting it.

Speaker #3: We welcome the move, actually, because all these people will spend marketing monies and create awareness for the customers. While the announcement made by DLF came six months back, we haven't noticed any impact on our sales velocity in Gurgaon.

Speaker #3: It is going as per plan for this year. We are exactly on the plan. But I think we are actually wanting more and more people to step in.

Rajit Mehta: We are exactly on the plan. I think we are actually wanting more and more people to step in. A, it increases category awareness. B, it will also push the government to release minimum standards, because the more standards that come in, some of us who are specialized in senior living will tend to benefit. Actually, we are quite welcoming the move.

Speaker #3: Eight, it increases category awareness. B, it will also push the government to release minimum standards, because the more standards specialized in senior living, the more it will tend to benefit.

Speaker #3: So actually, we are quite welcoming of the move.

Speaker #2: Yeah, I think at first, it should give us a first-mover advantage as well.

Rajveer Singh: Yeah, I think it should give us the first-mover advantage as well.

Speaker #3: Yeah. It's already.

Rajit Mehta: Yeah. We haven't stopped our sales in Estate 361, and as I said, the launch has been delayed twice now, so let's see when they launch.

Speaker #2: That we haven't stopped our sales in 361.

Speaker #3: And as I said, the launch has been delayed twice now. So let's see when they launch.

Speaker #2: All right, sounds good. Thank you so much.

Rajveer Singh: All right. Sounds good. Thank you so much.

Rajit Mehta: Yeah.

Speaker #1: Thank you. As there are no further questions from the participants, I would now like to hand the conference over to the management for closing comments.

Operator: Thank you. As there are no further questions from the participants, I would now like to hand the conference over to the management for closing comments.

Speaker #3: So, thank you very much once again for joining. Again, we deeply, deeply appreciate the questions. I think you're absolutely on the ball; these are questions you should be asking us.

Rajit Mehta: Thank you very much once again for joining. Again, deeply appreciate the questions. I think you are absolutely on the ball. These are questions you should be asking us on the path to profitability, on growth, and making appropriate announcements. We absolutely welcome these. I would like to assure you that whatever plan we had for this year, we are currently on plan. There are some minor aberrations because of external factors will keep on happening. For example, the labor courts pushed up the manpower cost for the quarter. We will have to find ways and means of mitigating that. The geopolitical issue caused the logistics cost, and delivery from China impacted. We had to airlift some product which caused a margin depression. All these in the current world are things I think any business should just embrace and keep moving on. That is what we are doing.

Speaker #3: On the past two profitability, on growth, and making appropriate announcements, we absolutely welcome these. I'd like to assure you that whatever plan we had for this year, we're currently on plan.

Speaker #3: There are some minor aberrations because of external factors, which will keep on happening. For example, the labor courts pushed up the manpower cost for the quarter.

Speaker #3: Now, we'll have to find ways and means of mitigating that. The geopolitical issue caused the logistics cost and delivery from China to be impacted, and we had to airlift some products, which caused a margin depression.

Speaker #3: But all these are things that, in the current world, I think any business should just embrace and keep moving forward. And that's what we're doing—we're just focusing on execution.

Rajit Mehta: We are just focused on execution. There is no new strategy we have to think through. We are very clear what we are doing and what we want to do. Hopefully, in the next two quarters, you will find more and more evidence from us on our commitment to path to profitability in all the businesses. There are different points of time, but at least the movement you should be able to see. That is our promise to all of you. Thank you once again, and wishing you a very, very happy 80th Independence Day as well.

Speaker #3: There is no new strategy we have to think through. We are very clear about what we are doing and what we want to do. And hopefully, in the next two quarters, you will find more and more evidence from us on our commitment to path to profitability in all the businesses.

Speaker #3: There are different points in time, but at least the movement you should be able to see. That's our promise to all of you. So, thank you once again.

Speaker #3: And wishing you a very, very happy eighth Independence Day as well.

Operator: Thank you. On behalf of Max India Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

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