Rentomojo Ltd Management Discussions

The following discussion of our financial condition and results of operations should be read in conjunction with our "Restated Financial Information" on page 260. Unless otherwise indicated, the financial information herein is based on our Restated Financial Information included in this Red Herring Prospectus.

Some of the information in this section, including information with respect to our business plans and strategies, contain forward-looking statements that involve risks and uncertainties. You should read "Forward-Looking Statements" on page 21 for a discussion of the risks and uncertainties related to those statements and also the sections "Risk Factors", "Industry Overview", "Restated Financial Information" and "Our Business" on pages 21, 164, 260 and 187, respectively, as well as financial information and other information contained in this Red Herring Prospectus as a whole, for a discussion of certain factors that may affect our business, financial condition or results of operations. Our actual results may differ materially from those expressed in or implied by these forward-looking statements.

Unless otherwise indicated, industry and market data used in this section has been derived from the report "Industry Report on Home furniture and appliances rental market" dated August 18, 2026 ("Redseer Report") prepared and released by Redseer

Strategy Consultants Private Limited and exclusively commissioned by and paid for by us pursuant to the appointment of Redseer vide letter dated October 22, 2025 in connection with the Offer. The data included herein includes excerpts from the Redseer Report, which is available on the website of the Company at www.rentomojo.com/investor-relations/industry-report from the date of this Red Herring Prospectus till the Bid/Offer Closing Date, and has also been included in "Material Contracts and Documents for Inspection Material Documents" on page 402. The industry data included herein includes excerpts from the Redseer Report and may have been re-ordered by us for the purposes of presentation. There are no parts, data or information (which may be relevant for the proposed issue), that has been left out or changed in any manner. The relevant industry sources are indicated at all relevant places within this section. For more information, see "Risk Factors Certain sections of this Red Herring Prospectus disclose information from the Redseer Report which has been prepared exclusively for the Offer and commissioned and paid for by us exclusively in connection with the Offer and any reliance on such information for making an investment decision in the Offer is subject to inherent risks" on page 51. Also see, "Certain Conventions, Use of Financial Information and Market Data and Currency of Presentation Industry and Market Data" on page 18.

Our Companys financial year commences on April 1 and ends on March 31 of the immediately subsequent year, and references to a particular Fiscal are to the 12 months ended March 31 of that year.

OVERVIEW

For information in relation to our business, see "Our Business" on page 187.

SIGNIFICANT FACTORS AFFECTING OUR RESULTS OF OPERATIONS AND FINANCIAL CONDITION

Our results of operations and financial condition are affected by several important factors, including:

Our ability to acquire new subscribers and retain existing ones

Our results of operations are influenced by our ability to acquire new subscribers and retain existing ones across our furniture, and appliances categories. Our revenue from operations are primarily generated through recurring subscription rentals and is therefore driven by the number of live subscribers, average subscription period, number of items per user and average revenue per item. Subscriber acquisition affects the scale of our revenue base, while subscriber retention and repeat usage determine the stability, predictability and lifetime value of revenues generated from that base. As subscription revenues are recognised over the duration of the subscription period, longer tenures and higher retention levels enhance forward revenue visibility and operating leverage, whereas higher churn or shorter tenures may reduce revenue predictability and require incremental acquisition spend to maintain growth. Our average subscription period has remained stable at 18.04 months, 18.82 months and 18.41 months in Fiscals 2026, 2025 and 2024 respectively, providing a transparent basis for assessing forward revenue visibility.

Our subscriber base is built through a combination of online and offline channels, and subscriber behaviour evolves over time as subscribers rent additional products, upgrade products, extend tenures or re-engage across categories. As a result, the depth of subscriber engagement, which we measure through repeat orders, cross-category adoption and items per user, has a direct impact on average revenue per subscriber and margin outcomes.

The following metrics illustrate trends in our subscriber scale and engagement:

Particulars	As of/ For the year ended March 31, 2026	As of/ For the year ended March 31, 2025	As of/ For the year ended March 31, 2024
Number of live subscribers(1)	253,825	194,262	149,498
Repeat rate (%)(2)	50.41%	46.55%	47.31%
Average subscription period (months)(3)	18.04	18.82	18.41
Items per user(4)	2.83	2.67	2.61
Average revenue per item(5) ( )	6,252.80	5,853.45	5,611.84
Total Contracted Revenue(6) ( million)	7,069.02	3,900.28	2,429.11
Unrecognised Contracted Revenue(7) ( million)	2,925.73	1,422.95	682.94

Notes:

(1) Live subscribers refers to the count of unique subscribers who have at least one product rented as at the end of the year.

(2) Repeat rate refers to total orders placed during the year by subscribers who have placed more than one order till date, divided by total orders placed by all subscribers during the year.

(3) Average subscription period is defined as 1/(1- yearly average retention rate). Yearly average retention rate is defined as the average of monthly retention rate. Monthly retention rate is defined as 1 subscribers ending subscription for the month divided by live subscribers at the end of the previous month.

(4) Items per user means items deployed with subscribers at end of year divided by live subscribers at end of year.

(5) Average revenue per item means revenue from operations for the year divided by average items deployed with subscribers for the year.

(6) Total Contracted Revenue for the year represents (a) the number of items newly rented out during the year, multiplied by their total contractual period and multiplied by the rental per month + (b) the number of items that were live at the beginning of the period, multiplied by the unexpired contractual period (i.e., total contractual period less lapsed tenure) and multiplied by the rental per month. Total contractual period is the period for which the subscriber has taken the items on rent.

(7) Unrecognised Contracted Revenue as of the relevant date represents the portion of total contracted revenue that remains unearned as at the reporting date and will be recognised in the Statement of Profit and Loss over the remaining tenure of the underlying subscription contracts, subject to customary risks such as early termination, defaults or modifications, in accordance with applicable revenue recognition principles.

In line with these increasing trends in subscriber acquisition and subscription levels, our revenue from operations have increased from 1,927.01 million in Fiscal 2024, to 2,659.59 million in Fiscal 2025 and were 3,869.88 million in Fiscal 2026.

Subscriber retention directly affects the proportion of our revenues that are recurring in nature. Retention dynamics are influenced by service quality across the subscriber lifecycle, including delivery and installation timelines, responsiveness to repairs, ability to support relocations, flexibility to upgrade or swap products, and consistency of customer experience across touchpoints. As subscribers continue to remain on our platform for longer durations, we are able to generate incremental revenues without further acquisition costs, thereby improving contribution margins and operating leverage. Our subscription contracts renew monthly and have auto renewal features.

Subscriber behaviour also impacts collection efficiency and credit performance, which in turn affects cash flows. We must balance the experience we are able to provide to our subscribers with our need to avoid bad debt or non-recovery. For instance, we believe overly frequent or aggressive collection reminders increase churn, while too few reminders elevate potential bad debt risk, and any friction across service touchpoints directly affect subscriber repeat rates and long term subscriber value (" LTSV").

Any decline in subscriber acquisition rates, increase in churn, or reduction in average subscription period may adversely affect our revenue growth and cash-flow visibility. Conversely, higher retention and cross-category adoption improve subscriber lifetime value and operating leverage.

As a direct result of our proprietary risk-assessment and credit-screening systems, we have been consistently improving our collections, as reflected in the steady enhancement of our revenue realisation efficiency:

Particulars	Fiscal 2026	Fiscal 2025	Fiscal 2024
		( million)
Trade receivables, unsecured (A = B + C)	664.65	488.78	370.03
Trade receivables considered good (B)	445.71	308.68	239.87
Trade receivables credit impaired (i.e. due more than 180 days) (C)	218.94	180.10	130.16
Incremental trade receivables credit impaired (D)(1)	38.84	49.94	37.66
Revenue from Operations (E)	3,869.88	2,659.59	1,927.01
Incremental trade receivables credit impaired as a percentage of Revenue from Operations (%) (F = D / E)	1.00%	1.88%	1.95%
Revenue realisation efficiency (G = 1 - F)	99.00%	98.12%	98.05%

Note:

(1) Incremental trade receivables - credit impaired is calculated as trade receivables credit impaired at the end of the year less trade receivables credit impaired at the beginning of the year.

Useful life, utilisation and redeployment of assets

Our results of operations are influenced by the useful life, occupancy rates and redeployment efficiency of our assets. Our business is built around a multi-cycle asset-lifecycle framework, under which each asset cohort is deployed, refurbished and redeployed across multiple subscribers over several years.

We incur upfront capital expenditure to procure assets, which are then monetised through recurring rental subscription revenues over extended periods. Accordingly, the pace at which assets are redeployed, the number of revenue-generating cycles achieved per asset, and the duration for which assets remain serviceable have a direct bearing on revenue realisation per asset, depreciation intensity, return on capital employed and margins.

A key driver of our historical growth and profitability has been our ability to extend the effective useful life of assets through systematic refurbishment, preventive maintenance and quality control, enabling older asset cohorts to continue generating revenue over multiple years. Assets are designed, procured and maintained with durability and redeployability as core considerations, and are tracked at a serialized level through our lifecycle management systems. As a result of our refurbishment capabilities and end-to-end ownership of the asset lifecycle, older asset cohorts consistently deliver higher cumulative returns as they progress through multiple cycles of redeployment.

The following metrics illustrate asset productivity and lifecycle economics, which are key determinants of our margins and capital efficiency:

Particulars	As of/ For the year ended March 31, 2026	As of/ For the year ended March 31, 2025	As of/ For the year ended March 31, 2024
Total live items (number)(1)	851,184	634,091	463,130
Occupancy rate (%)(2)	83.34%	82.82%	86.43%
Refurbishment cost ( million)	190.29	148.99	85.74

(1) Total live items = sum of all live items at the end of the year, excluding scrap items, non-recoverable items, display items in retail stores, items in transit, items with vendors for repair and items for photoshoot. (2) Occupancy rate is calculated as a percentage of the average of the opening and closing number of items deployed with subscribers divided by the average of the opening and closing number of live items for the relevant year. Live items means total items procured since inception less items scrapped/to be scrapped, non-recoverable items, items for display in our Companys experience stores, items in transit, items with vendors for repair and items for photoshoot.

Our refurbishment infrastructure, warehousing network and service workforce enable assets to be inspected, repaired, refurbished and redeployed with minimal downtime between subscription cycles. Returned assets upon closure of subscription are evaluated using standardized diagnostic processes to determine refurbishment requirements, following which they are restored to deployment-ready condition and reintroduced into the deployable asset pool.

The following table illustrates how older cohorts remain revenue-generating for extended periods, indicating useful lives of approximately 10 years (based on management estimate):

Item Cohort Productivity Table

Fiscal Year	Percentage of Item Generating Revenue as of March 31, 2026
2017	56.12%
2018	60.92%

Note: The cohort relates only to furniture and appliances, including water purifiers, and excludes two-wheelers, smartphones and tablets.

Older cohorts, such as those from Fiscal 2017 and Fiscal 2018, continue to show 56.12% and 60.92% of assets, respectively, still generating revenue even after more than nine years of revenue generation, reflecting the strength of our re-commerce capabilities. The managements estimate of the useful life of our furniture and appliances is 10 years, as of March 31, 2026, supported by our systematic investments in refurbishment, preventive maintenance, and multi-cycle asset readiness. This extended revenue-generating capability to support growth and enhances predictability of returns at a cohort level. Any deterioration in asset condition, increase in refurbishment intensity, reduction in redeployment velocity or decline in effective useful life may increase depreciation and operating costs and adversely impact margins while improvements in asset longevity, utilisation and redeployment efficiency enhance revenue realisation per asset, return on capital employed and profitability.

Competition and pricing dynamics

The home furniture and appliances rental industry in India is characterized by asset intensive operations, evolving consumer behaviour and competition from traditional business models. (Source: Redseer Report). Other players in the markets we operate include AVA Lifestyle Products & Services Private Limited, CityFurnish India Private Limited, House of Kieraya Limited, Livpure Smart Homes Private Limited and Waterwala Labs Private Limited, among others. (Source: Redseer Report) For further information on the competition we face in the markets in which we operate, see "Industry Overview Competitive landscape and benchmarking" on page 182.

Our results of operations are influenced by the competitive landscape in which we operate and the resulting pricing dynamics across furniture, appliances and water purifiers. We compete with organised rental and subscription platforms, online and offline retailers offering outright purchase options and unorganised rental operators. For further information on the competition we face in the markets in which we operate, see "Industry Overview - Competitive landscape and benchmarking" on page 182.

Competitive intensity affects pricing levels, promotional activity, customer acquisition costs, and service expectations. Pricing in our business is influenced by factors such as product category, tenure length, city-level demand-supply conditions and competitive offerings. As our revenue model is subscription-based, pricing decisions affect not only near-term revenue realisation but also subscriber lifetime value, retention behaviour and asset payback timelines. Accordingly, sustained pricing pressure or changes in competitive positioning may impact revenue per item, margins and capital efficiency. Competition may also influence the level and efficiency of marketing expenditure required to acquire subscribers. While higher marketing investments may support subscriber acquisition and scale, it may also affect margins in the near term if not accompanied by commensurate improvements in retention, tenure or subscriber engagement.

Sustained competitive intensity resulting in pricing pressure, higher discounts or increased acquisition costs may adversely affect profitability if not offset by scale benefits, higher utilisation or improved subscriber engagement.

Management of operating costs and cost structure

Our results of operations are affected by our operating cost structure and our ability to manage costs efficiently as we continue to scale our business. Our operating expenses primarily comprise logistics and warehousing costs, refurbishment costs, employee benefit expenses, technology infrastructure costs and marketing expenditure. Given the size, weight and service intensity of our products, logistics, servicing and refurbishment represent a material portion of our cost base. These costs are influenced by factors such as fuel prices, labour availability, technician productivity, route density, warehouse utilisation and spare-parts consumption. The following table outlines key operating cost drivers that influence our margins:

Particulars	For the year ended March 31, 2026	For the year ended March 31, 2025	For the year ended March 31, 2024
Logistics expense ( million)	279.85	193.42	138.70
Contractual manpower expense ( million)	380.21	246.49	149.57
Employee benefits expense ( million)	607.98	414.38	309.35
Refurbishment cost ( million)	190.29	148.99	85.74
Information technology expenses ( million)	113.45	83.52	59.23
Performance marketing ( million)	209.48	112.44	61.77
Branding and other marketing expenses ( million)	49.46	45.00	6.12
Total	1,830.72	1,244.24	810.48
Total as a percentage of revenue from operations (%)	47.31%	46.78%	42.06%

Our ability to achieve operating leverage depends on spreading fixed and semi-fixed costs across a growing base of subscribers, assets and service touchpoints. To this end, we leverage our subscription stack, which manages the full 11-touchpoint consumer lifecycle - order, risk assessment, delivery, installation, monthly collections, relocation, repairs, upgrades, subscription contract transfers, reverse logistics, and refunds.

As the business scales across cities and categories, cost efficiency is influenced by utilisation of shared infrastructure, optimisation of delivery and reverse logistics routes, reduction in asset downtime and improvements in refurbishment turnaround times. Any inefficiencies in operations, inflationary pressures or underutilisation of infrastructure may adversely affect our margins. Our results of operations are therefore sensitive to changes in operating cost components, particularly those linked to service intensity and physical asset movement. Any sustained increase in operating costs, if not offset by pricing actions, productivity improvements or operating leverage, may impact margins and profitability.

Macroeconomic conditions

Our results of operations are influenced by macroeconomic conditions and broader consumer spending trends in the markets in which we operate. Demand for our subscription offerings is affected by factors such as employment levels, income growth, urban migration, housing rental activity, inflation and consumer confidence.

Our subscriber base largely comprises urban households, young professionals and mobile workforce segments, whose consumption behaviour may vary with economic conditions. During periods of economic expansion, urbanization increases, employment levels rise, and increased mobility further accelerate demand for flexible, rental-based offerings. (Source: Redseer Report) The rental model is resilient during periods of macroeconomic slowdown as consumers tend to defer capital expenditure and shift from purchasing products to renting them due to employment and income insecurity, thereby benefiting from the subscription-led model. (Source: Redseer Report) As our revenue is primarily subscription-driven, rather than dependent on one-time purchases, our financial performance has historically exhibited lower sensitivity to broader economic cycles. However, we remain susceptible to broader trends such as those set during the COVID pandemic involving work from home set-ups. Larger macroeconomic events may modify the requirements of subscribers, their preferences and demands, which our existing assets may not be compatible with, which may in turn require us to incur significant capital expenditure.

Macroeconomic conditions may also affect operating costs, including fuel prices, labour costs and warehouse rentals, as well as subscriber payment behaviour and collection efficiency. Accordingly, changes in macroeconomic factors may influence both revenue growth and cost structures.

SUMMARY OF MATERIAL ACCOUNTING POLICIES

The Company has applied following accounting policies to all periods presented in the Ind AS Financial Statement.

Basis of Consolidation

Subsidiary

Subsidiaries are the entities controlled by the Group. The Group controls an entity when it is exposed to, or has right to, variable returns from its involvement with the entity and has the ability to affect those returns over through its power over the entity. The financial statements of the subsidiary are included in the consolidated financial statements from the date on which control commences until the date on which control ceases.

Consolidation procedures are follows as under:

Items of assets, liabilities, equity, income, expense and cash flows of the parent with those of its subsidiary are combined like to like basis. For this purpose, income and expenses of the subsidiary are based on the amounts of the assets and liabilities recognised in the consolidated financial statements at the acquisition date.

Loss of Control

When the Group loses control over a subsidiary, it derecognises the assets and liabilities of the subsidiary, and related NCI and other components of equity. Any resulting gain or loss is recognised in profit or loss. Any interest retained in the former subsidiary is measured at fair value when control is lost.

Transaction eliminated on consolidation

Intra-group balances and transactions, and unrealised income and expenses (except foreign currency transaction gains or losses) arising from intra-group transactions, are eliminated.

Foreign Currency

Transactions and Balances

Transactions in foreign currencies are translated into the respective functional currencies of the Group at the exchange rates at the dates of the transactions or an average rate if the average rate approximates the actual rate at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency spot rate of exchange at the reporting date.

Foreign currency exchange differences arising on settlement or translation of monetary items are generally recognised in profit or loss, except foreign currency exchange differences arising from the translation of the following items which are recognised in OCI. Tax charges and credits attributable to exchange differences on those monetary items are also recorded in OCI.

An investment in equity securities designated as at FVOCI (except on impairment, in which case foreign currency differences that have been recognised in OCI are reclassified to profit or loss); a financial liability designated as a hedge of the net investment in a foreign operation to the extent that the hedge is effective; and qualifying cash flow hedges to the extent that the hedges are effective.

Non-monetary assets and liabilities that are measured at fair value in a foreign currency are translated into the functional currency at the exchange rate when the fair value was determined. Non-monetary items that are measured based on historical cost in a foreign currency are translated at the exchange rate at the date of the initial transaction. The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item (i.e., translation differences on items whose fair value gain or loss is recognised in OCI or profit or loss are also recognised in OCI or profit or loss, respectively).

Revenue from contracts with customers

The Group generates revenue mainly from providing consumer products on rent to customers. Revenue is recognised when control of goods or services is transferred to the customer upon the satisfaction of performance obligation under the contract at a transaction price that reflects the consideration to which we expect to be entitled in exchange for those goods and services. The transaction price of goods sold and services rendered is net of any taxes collected from customers and variable consideration on account of various discounts and schemes offered. The transaction price is an amount of consideration to which the entity expects to be entitled in exchange for transferring promised goods or services. Revenue also excludes taxes (i.e. GST) collected from customers.

Where performance obligation is satisfied over time, Group recognizes revenue over the contract period. Where performance obligation is satisfied at a point in time, Group recognizes revenue when customer obtains control of promised goods and services in the contract.

Rental revenue

Revenue from customers is recognised by the Group over the period of time in accordance with the terms of the contract with customers and when the related performance obligation is completed. Variable components such as discounts, rental waivers, Commission, etc. is recognized as deductions from revenue.

Sale of Products

Revenue from sale of product is recognised by the Group at a point in time when significant risk and rewards of products sold is being transferred to the customer.

Delivery and installation charges

The revenue from delivery and installation are recognised when the performance obligation of delivering the product and installation of the product is completed.

Other Charges

Other Charges comprises of early closure charges, late fees and quality inspection charges. These charges are a fixed amount which are collected from customers based on contract entered by the Group.

? Early closure charges are imposed on customers in accordance with contracts if the customer wishes to cancel the contract before its expiry. The Group recognizes the revenue when the contract is terminated early by the customers and reasonable certainty of collection is established

? Quality charges are collected from the customers if the rented goods are damaged by the customer during the tenure of the use. The Group recognizes the revenue when the Group inspects and confirms that goods is being damaged by the customers and reasonable certainty of collection is established.

? Customer is liable to pay the late fee as specified in the agreement with the Group when the customer delays payment. The Group recognizes the revenue when the payment is delayed, and the charges become due to be payable by the customer and reasonable certainty of collection is established.

Commission income

The Group is acting as an agent in the partnership contract, connecting the customer with service providers. Accordingly, for revenue contracts where the Group is acting as an agent, revenue is recognised on net basis in form of commission.

Reward points

The Group provides reward points to the customers for referral programs and profile completion. Reward points are credited to the customers wallet upon completion of successful referral for referral programs and completion of the KYC process for profile creation. These reward points have limited validity and are not encashable and/or transferable. The Group considers the likelihood that the customer will redeem the points and recognizes the estimated reward points that would be redeemed.

Other Income

Profit on sale of mutual funds and fair value impact on mark-to-market contracts are recognized on transaction completion and/ or on reporting date as applicable.

Interest income is recognized using the effective interest method or time-proportion method, based on rates implicit in the transaction.

Dividend income is recognized when the Groups right to receive Dividend is established.

Contract balances

Trade receivables: A receivable is recognised if an amount of consideration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due). Refer to accounting policies of financial assets.

Contract assets: The Group classifies its right to consideration in exchange for deliverables as either a receivable or as unbilled revenue. A receivable is a right to consideration that is unconditional upon passage of time. Revenues in excess of billings is recorded as unbilled revenue and is classified as a financial asset where the right to consideration is unconditional upon passage of time. Unbilled revenue which is conditional is classified as other current asset. Trade receivables and unbilled revenue is presented net of impairment.

Contract liabilities: A contract liability (which we referred to as Unearned Revenue) is the obligation to transfer goods or services to a customer for which the Group has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the Group transfers goods or services to the customer, a contract liability is recognised when the payment is received.

Employee benefits

Short-term employee benefits

Short-term employee benefits are measured on an undiscounted basis and expensed as the related service is provided. A liability is recognised for the amount expected to be paid under short-term cash bonus, if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

Share-based payment arrangements

The Group recognises compensation expense relating to share-based payments in accordance with Ind AS 102 - Share-based Payment Group Compensation expense is amortised over the vesting period as per graded vesting method. The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using an appropriate valuation model. That cost is recognised, together with a corresponding increase in Share based payment reserve in other equity, over the period in which the performance and/or service conditions are fulfilled in employee benefits expense. The cumulative expense recognised for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Groups best estimate of the number of equity instruments that will ultimately vest. For share-based payment awards with non-vesting conditions, the grant date fair value of the share-based payment is measured to reflect such conditions and there is no true-up for differences between expected and actual outcomes.

Defined contribution plan

A defined contribution plan is a post-employment benefit plan where the Groups legal or constructive obligation is limited to the amount that it contributes to a separate legal entity.

The Group makes specified monthly contributions towards Government administered provident fund scheme (‘PF) and Employee State Insurance (‘ESI).

Obligations for contributions to defined contribution plan are expensed as an employee benefits expense in the statement of profit and loss in year in which the related service is provided by the employee.

Defined benefit plans

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Groups net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.

The calculation of defined benefit obligations is performed at each reporting date by a qualified actuary using the projected unit credit method. When the calculation results in a potential asset for the Group, the recognised asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan (‘the asset ceiling). To calculate the present value of economic benefits, consideration is given to any applicable minimum funding requirements.

Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognised immediately in OCI. The Group determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate determined by reference to market yields at the end of the reporting period on government bonds. This rate is applied on the net defined benefit liability (asset), both as determined at the start of the annual reporting period, taking into account any changes in the net defined benefit liability (asset) during the period as a result of contributions and benefit payments. Net interest expense and other expenses related to defined benefit plans are recognised in profit or loss.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service (‘past service cost or ‘past service gain) or the gain or loss on curtailment is recognised immediately in profit or loss. The Group recognises gains and losses on the settlement of a defined benefit plan when the settlement occurs.

Other long-term employee benefits - compensated absences

Accumulated absences expected to be carried forward beyond twelve months is treated as long-term employee benefit for measurement purposes. The Groups net obligation in respect of other long-term employee benefit of accumulating compensated absences is the amount of future benefit that employees have accumulated at the end of the year. That benefit is discounted to determine its present value. The obligation is measured annually by a qualified actuary using the projected unit credit method. Remeasurements are recognised in profit or loss in the period in which they arise.

The obligations are presented as current liabilities in the balance sheet if the Group does not have an unconditional right to defer the settlement for at least twelve months after the reporting date.

Income tax

Income tax expense comprises current and deferred tax. It is recognised in profit or loss except to the extent that it relates to a business combination, or items recognised directly in equity or in Other comprehensive income.

The Group has determined that interest and penalties related to income taxes, including uncertain tax treatments, do not meet the definition of income taxes, and therefore accounted for them under Ind AS 37 Provisions, Contingent Liabilities and Contingent Assets

Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payable or receivable is the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting date.

Current tax assets and liabilities are offset only if there is a legally enforceable right to set off the recognised amounts, and it is intended to realise the asset and settle the liability on a net basis or simultaneously.

Deferred tax

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes. Deferred tax is also recognised in respect of carried forward tax losses and tax credits. Deferred tax is not recognised for:

? temporary differences on the initial recognition of assets or liabilities in a transaction that: is not a business combination; and at the time of the transaction current tax affects neither accounting nor taxable profit or loss and deferred tax does not give rise to equal taxable and deductible temporary differences temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that the Group is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future;

Deferred income tax assets are recognised for all deductible temporary differences, except carry forward of unused tax credits and unused tax losses, to the extent that it is probable that future taxable profits will be available against which deductible temporary differences, except carry forward of unused tax credits and unused tax losses can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised; such reductions are reversed when the probability of future taxable profits improves.

Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on the laws that have been enacted or substantively enacted by the reporting date.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously.

Property, Plant and Equipment

Recognition and measurement

The cost of an item of property, plant and equipment shall be recognised as an asset if, and only if it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably.

Items of property, plant and equipment are measured at cost, which includes capitalised borrowing costs, less accumulated depreciation and any accumulated impairment losses.

Cost of an item of property, plant and equipment comprises its purchase price, including import duties and non-refundable taxes, after deducting trade discounts, and any directly attributable cost of bringing the item to its working condition for its intended use and estimated costs of dismantling and removing the item and restoring the site on which it is located.

If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment.

Any gain or loss on disposal of an item of property, plant and equipment is recognised in profit or loss.

Subsequent expenditure

Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Group and the cost of the item can be measured reliably.

Depreciation

Depreciation is calculated on the cost of items of property, plant and equipment less their estimated residual values using the straight-line method over their estimated useful lives and is generally recognised in the statement of profit and loss.

The estimated useful lives of property, plant and equipment for current and comparative periods are as follows:

Asset class	Managements estimate of useful life	Useful life as per Schedule II
Furniture and Fittings	8 to 10 Years	10 years
Office equipment	3 to 10 Years	5 years
Electrical equipment	10 years	10 years
Bikes	10 Years	10 Years
Computer	3 Years	3 years
Improvement to Leasehold property	3 to 5 Years	Lease term or useful life of asset, whichever is shorter

Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate. Based on technical evaluation and consequent advice, the management believes that its estimates of useful lives as given above best represent the period over which management expects to use these assets.

Depreciation on additions/(disposals) is provided on a pro-rata basis i.e. from/ (up to) the date on which asset is ready for use/ (disposed off).

Intangible assets

Recognition and measurement

Research and Development cost

Research cost - Expenditure on research activities is recognised in profit or loss as incurred

Development Cost - Development expenditure is capitalised as part of the cost of the resulting intangible asset only if the expenditure can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable, and the Group intends to and has sufficient resources to complete development and to use or sell the asset. Otherwise, it is recognised in profit or loss as incurred. Subsequent to initial recognition, development expenditure is measured at cost less accumulated amortisation and any accumulated impairment losses.

Internally generated intangible asset Computer software/Website

Software development costs are expensed unless technical and commercial feasibility of the project is demonstrated, future economic benefits are probable, the Group has an intention and ability to develop and sell or use the software and the costs can be measured reliably. Directly attributable costs that are capitalised as part of the software/website development include the development cost, related employee costs and an appropriate portion of relevant overheads. Other expenditure that do not meet these criteria are recognised as an expense as incurred.

Other Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is recognised at fair value at the date of acquisition. An intangible asset is recognised only if it is probable that future economic benefits attributable to the asset will flow to the Group and the cost of the asset can be measured reliably. Following initial recognition, other intangible assets, including those acquired by the Group in a business combination and have finite useful lives are measured at cost less accumulated amortisation and any accumulated impairment losses.

Subsequent expenditure

Subsequent costs related to Intangible assets are recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other expenditure, including expenditure on internally generated goodwill and brands, is recognised in profit or loss as incurred.

Amortisation

Amortisation is calculated to write off the cost of intangible assets less their estimated residual values using the straight-line method over their estimated useful lives and is generally recognised in depreciation and amortisation in Statement of profit and loss.

The estimated useful lives of intangible assets are as follows:

Asset class	Managements estimate of useful life
Internally generated intangible assets	5 Years

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the statement of profit and loss when the asset is derecognised.

Financial instruments

Financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Recognition and initial measurement

Trade receivables and debt securities issued are initially recognised when they are originated. All other financial assets and financial liabilities are initially recognised when the Group becomes a party to the contractual provisions of the instrument.

Financial assets and liabilities are initially measured at fair value Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value measured on initial recognition of financial asset or financial liability.

Classification and subsequent measurement

Financial assets

On initial recognition, a financial asset is classified as measured at: amortised cost;

FVOCI debt investment;

FVOCI equity investment; or FVTPL.

Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for managing financial assets.

Financial assets at amortised cost (Debt instrument)

A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL:

it is held within a business model whose objective is to hold assets to collect contractual cash flows; and

its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Financial assets at FVOCI (Debt instrument)

A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:

it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and

its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding

On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect to present subsequent changes in the investments fair value in OCI. This election is made on an investment-by-investment basis. All financial assets not classified as measured at amortised cost or FVOCI as described above are measured at FVTPL.

Financial assets at FVTPL (Debt instrument)

FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for categorization as at amortised cost or as FVTOCI, is classified as at FVTPL. On initial recognition, the Group may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

Financial assets Subsequent measurement and gains and losses

Particulars	Measurement
Financial assets at FVTPL	These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognised in profit or loss.
Financial assets at amortised cost	These assets are subsequently measured at amortised cost using the effective interest method. The amortised cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognised in profit or loss. Any gain or loss on derecognition is recognised in profit or loss.
Debt investments at FVOCI	These assets are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognised in profit or loss. Other net gains and losses are recognised in OCI. On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss.
Equity investments at FVOCI	These assets are subsequently measured at fair value. Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not reported separately from other changes in fair value. Dividends are recognised as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognised in OCI and are not reclassified to profit or loss.

Derecognition

The Group derecognises a financial asset when:

the contractual rights to the cash flows from the financial asset expire; or

it transfers the rights to receive the contractual cash flows in a transaction in which either:

? substantially all of the risks and rewards of ownership of the financial asset are transferred; or

? the Group neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

The Group enters into transactions whereby it transfers assets recognised on its balance sheet but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognized.

Financial liabilities

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss or at amortised cost (loans and borrowings, payables), as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

The Groups financial liabilities include trade and other payables, lease liabilities, loans and borrowings and customer and other deposits.

Financial liabilities Subsequent measurement and gains and losses

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss.

Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term.

Gains or losses on liabilities held for trading are recognised in the profit or loss

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the initial date of recognition, only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk are recognized in OCI. These gains/ losses are not subsequently transferred to Profit and Loss. However, the Group may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognised in the statement of profit or loss. The Group has not designated any financial liability as at fair value through profit and loss.

Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss.

Instrument entirely in the nature of equity

An equity instrument that evidences a residual interest in the assets of an entity after deducting all of its liabilities. All instruments that meet the definition of ‘Equity as per Ind AS 32 in its entirety and when they do not have any component of liability, should be considered as having the nature of ‘Equity. Such instruments are the ‘Instruments entirely in the nature of equity.

Derecognition

The Group derecognises a financial liability when its contractual obligations are discharged or cancelled or expire. The Group also derecognises a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognised at fair value.

On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognised in profit or loss.

Offsetting

Financial assets and financial liabilities are offset and the net amount presented in the balance sheet/ statement of assets and liabilities when, and only when, the Group currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realise the asset and settle the liability simultaneously.

Impairment Financial assets

The Group assesses at the end of each reporting period whether a financial asset or a group of financial assets is impaired. Ind

AS 109 (‘Financial instruments) requires expected credit losses to be measured through a loss allowance. The Group recognises lifetime expected losses for all contract assets and/or all trade receivables that do not constitute a financing transaction. For all other financial assets, expected credit losses are measured at an amount equal to the 12 month expected credit losses or at an amount equal to the lifetime expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition.

Lifetime expected credit losses are the expected credit losses that result from all possible default events over the expected life of a financial instrument.12-month expected credit losses are the portion of expected credit losses that result from default events that are possible within 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months). In all cases, the maximum period considered when estimating expected credit losses is the maximum contractual period over which the Group is exposed to credit risk.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECLs, the Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Groups historical experience and informed credit assessment.

Credit-impaired financial assets

At each reporting date, the Group assesses whether financial assets carried at amortised cost and debt securities at FVOCI are credit impaired. A financial asset is ‘credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred.

Evidence that a financial asset is credit-impaired includes the following observable data:

? significant financial difficulty of the debtor

? a breach of contract such as a default or being more than 180 days past due

? the restructuring of a loan or advance by the Group on terms that the Group would not consider otherwise.

? it is probable that the debtor will enter bankruptcy or other financial reorganization or

? the disappearance of an active market for a security because of financial difficulties.

Presentation of allowance for ECL in the balance sheet

Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the assets. For debt securities at FVOCI, the loss allowance is charged to profit or loss and is recognised in OCI.

Write-off

The gross carrying amount of a financial asset is written off when the Group has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof.

Impairment of non-financial assets

At each reporting date, the Group reviews the carrying amounts of its non-financial assets (other than inventories, trade receivables and deferred tax assets) to determine whether there is any indication of impairment. If any such indication exists, then the assets recoverable amount is estimated.

For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGUs.

The recoverable amount of an individual asset or CGU is the greater of its value in use and its fair value less costs of disposal. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU.

An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its recoverable amount.

Impairment losses are recognised in profit or loss. They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis.

In respect of other assets for which impairment loss has been recognised in prior periods, the Group reviews at each reporting date whether there is any indication that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. Such a reversal is made only to the extent that the assets carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

Intangible assets that have an indefinite useful life or intangible assets not ready to use are not subject to amortisation and are tested annually for impairment.

Provisions (other than employee benefits)

Provisions are recognised when the Group has a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

Leases

The Groups lease assets primarily consist of leases for warehouse, experience stores and office spaces. At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

Group as a lessee

To assess whether a contract conveys the right to control the use of an identified asset, the Group assesses whether: i. the contract involves the use of an identified asset ii. the Group has substantially all of the economic benefits from use of the asset through the period of the lease and iii. the Group has the right to direct the use of the asset.

The Group applies a single recognition and measurement approach for all leases. The Group recognises lease liabilities representing obligations to make lease payments and right-of-use assets representing the right to use the underlying assets.

Right-of-use assets

The Group recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of- use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, lease payments made at or before the commencement date less any lease incentives received and an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term or the estimated useful lives of the assets whichever is earlier.

The right-of-use assets are also subject to impairment. Refer to the accounting policies in section 2.(ix)(b), Impairment of non-financial assets.

Lease liabilities

At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the payments of penalties for terminating the lease, if the lease term reflects the Group exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognised as expenses in the period in which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Group uses its incremental borrowing rate at the lease commencement date as the interest rate implicit in the lease is not readily determinable. The Group determines its incremental borrowing rate by obtaining interest rates from various external financing sources and makes certain adjustments to reflect the terms of the lease and type of the asset leased. The lease liability is measured at amortised cost using the effective interest method.

After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. The Groups lease liabilities are included in financial liabilities.

Short-term leases and leases of low-value assets

The Group has elected to recognise right-of-use assets and lease liabilities for leases of short- term leases. The Group applies the low-value assets recognition exemption to leases of assets that are considered to be low value. Lease payments on leases of low-value assets are recognised as expense on a straight-line basis over the lease term.

Extension and termination option

The Group has several lease contracts that include extension and termination options. These options are negotiated by management to provide flexibility in managing the leased-asset portfolio and align with the Groups business needs.

Management exercises significant judgement in determining whether these extension and termination options are reasonably certain to be exercised. Management have not considered any future cash outflow for which they are potentially exposed arising due to extension and termination options.

Borrowing costs

Borrowing costs are interest and other costs incurred in connection with the borrowing of funds. Borrowing costs directly attributable to acquisition or construction of an asset which necessarily take a substantial period of time to get ready for their intended use are capitalised as part of the cost of that asset. Other borrowing costs are recognised as an expense in the period in which they are incurred.

Contingent liabilities and assets Contingent liability

Contingent liability is a possible obligation arising from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation that arises from past events but is not recognized because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability. The Group does not recognize a contingent liability but discloses its existence in the consolidated financial statements.

Contingent Asset

Contingent asset is not recognised in consolidated financial statements since this may result in the recognition of income that may never be realised. However, when the realisation of income is virtually certain, then the related asset is not a contingent asset and is recognized.

Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

Earnings per share

Basic Earnings Per Share

Basic earnings per share is calculated by dividing the profit (or loss) attributable to the owners of the Group by the weighted average number of equity shares outstanding during the period/ year. The weighted average number of equity shares outstanding during the period/ year is adjusted for bonus issue, bonus element in a rights issue to existing shareholders, share split and reverse share split (consolidation of shares).

Diluted Earnings Per Share

Diluted earnings per share is computed by dividing the profit (considered in determination of basic earnings per share) after considering the effect of interest and other financing costs or income (net of attributable taxes) associated with dilutive potential equity shares by the weighted average number of equity shares considered for deriving basic earnings per share adjusted for the weighted average number of equity shares that would have been issued upon conversion of all dilutive potential equity shares.

Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share or increase the net loss per share. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

Share capital Equity shares

Incremental costs directly attributable to the issue of equity shares are recognised as a deduction from equity. Income tax relating to transaction costs of an equity transaction is accounted for in accordance with Ind AS 12.

Compulsorily Convertible Preference shares

The Groups compulsorily convertible preference shares are classified as instruments entirely equity in nature, because the

Group does not have contractual obligation to be repaid in cash or any other financial asset or instrument.

Treasury Shares

The Group has created an Employee Benefit Trust (the Trust) for providing share-based payment to its employees. The Group uses the Trust as a vehicle for distributing shares to employees under the employee remuneration schemes. The Trust buys shares of the Group from the market, for giving shares to employees under the Employee Stock Options Plan (ESOP plan). The Group treats the Trust as its extension and shares held by the Trust arc treated as treasury shares.

Own equity instruments that are reacquired (treasury shares) are recognised at cost and deducted from equity. No gain or loss is recognised in profit or loss on the purchase, sale, issue or cancellation of the Groups own equity instruments. Any difference between the carrying amount and the consideration, if reissued, is recognised in capital reserve. Share option exercised during the reporting period arc satisfied with treasury shares.

Cash and cash equivalents

Cash and cash equivalents for the purpose of presentation in the statement of cash flows comprises of cash at bank and in hand, bank deposits with an original maturity of three months or less that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value.

Events after the reporting period

Adjusting events are events that provide further evidence of conditions that existed at the end of the reporting period. The financial statements are adjusted for such events before authorisation for issue.

Non-adjusting events are events that are indicative of conditions that arose after the end of the reporting period. Non-adjusting events after the reporting date are not accounted but disclosed if material.

Use of estimates, assumptions and judgements

In preparing these Restated Financial Information, management has made judgements and estimates that affect the application of the Groups accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.

Judgements

Information about judgements made in applying accounting policies that have the most significant effects on the amounts recognised in the financial statements is included in the following note:

Leases

The Group evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116. Identification of a lease requires significant judgment. The Group uses significant judgement in assessing the lease term (including anticipated renewals) and the applicable discount rate. The Group determines the lease term as the non-cancellable period of a lease, together with both periods covered by an option to extend the lease if the Group is reasonably certain to exercise that option; and periods covered by an option to terminate the lease if the Group is reasonably certain not to exercise that option. In assessing whether the Group is reasonably certain to exercise an option to extend a lease, or not to exercise an option to terminate a lease, it considers all relevant facts and circumstances that create an economic incentive for the Group to exercise the option to extend the lease, or not to exercise the option to terminate the lease. The Group revises the lease term if there is a change in the non-cancellable period of a lease.

The discount rate is generally based on the incremental borrowing rate to the lease being evaluated or for a portfolio of leases with similar characteristics.

Recognition of Deferred Tax Assets

Deferred tax assets (DTA) is recognized only when and to the extent there is convincing evidence that the Company will have sufficient taxable profits in future against which such assets can be utilized. Significant management judgement is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits together with future tax planning strategies, recent business performance and developments.

Estimation of defined benefit obligation

Employee benefit obligations are measured on the basis of actuarial assumptions which include mortality and withdrawal rates as well as assumptions concerning future developments in discount rates, the rate of salary increases and the inflation rate. The Company considers that the assumptions used to measure its obligations are appropriate and documented. However, any changes in these assumptions may have a material impact on the resulting calculations.

Key estimation relating to fair value measurements

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using other valuation techniques including the discounted cash flow model. The inputs to these models and the discount rates are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Judgments include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

Share-based payments

Employees of the Company receive remuneration in the form of share-based payment transactions, whereby employees render services as consideration for equity instruments (equity-settled transactions). In accordance with the Ind AS 102 Share Based Payments, the cost of equity settled transactions is measured using the fair value method. The cumulative expense recognised for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Companys best estimate of the number of equity instruments that will ultimately vest. The expense or credit recognised in the restated statement of profit and loss for a period represents the movement in cumulative expense recognised as at the beginning and end of that period and is recognised in employee benefits expense.

Estimates and assumptions

Information about assumptions and estimation uncertainties at the reporting date that have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within the next financial year is included in the following notes:

Useful lives of property, plant and equipment and intangible assets

The Group has made significant estimates in determining the useful lives of Property, Plant and Equipment, particularly for assets deployed under rental arrangements with customers. These estimates are based on expected usage patterns, historical data, and anticipated technological obsolescence, and are reviewed periodically in accordance with Ind AS 16 Property, Plant and Equipment.

Given the nature of the Groups business, where assets such as furniture, appliances, and electronics are leased for relatively short durations and may be refurbished or redeployed, management exercises judgement in estimating useful lives that may differ from those prescribed under Schedule II of the Companies Act, 2013. The useful lives are determined considering factors such as customer usage behavior, asset recovery rates, refurbishment cycles, and expected residual value.

Any changes in these assumptions could materially affect the depreciation expense and the carrying value of PPE. The Group reassesses these estimates at each reporting date and adjusts them prospectively, where necessary.

Provision for expected credit loss on trade receivables

The measurement of expected credit loss reflects a probability-weighted outcome and the available historical information. The correlation between historical observed default rates and expected credit loss is a significant estimate. The amount of expected credit loss is sensitive to changes in business and industry circumstances. The Groups historical credit loss experience may not be representative of the actual default in the future.

Standards issued but not yet effective

Ind AS 1 - Presentation of Financial Statements: For accounting periods beginning on or after 1 April 2026, when an entity breaches any covenant of a long-term loan arrangement on or before the end of the reporting period with the effect that the liability becomes payable on demand, it classifies the liability as current, even if the lender agreed, after the reporting period and before the approval of the financial statements for issue, not to demand payment as a consequence of the breach. An entity classifies the liability as current because, at the end of the reporting period, it does not have the right to defer its settlement for at least 12 months after that date.

However, an entity classifies the liability as non-current if the lender agreed by the end of the reporting period to provide a period of grace ending at least 12 months after the reporting period, within which the entity can rectify the breach and during which the lender cannot demand immediate repayment.

This amendment is to be applied retrospectively for annual reporting periods beginning on or after 1 April 2026, in accordance with Ind AS 8, Accounting Policies, accounting Estimates and Errors.

NON-GAAP MEASURES

Certain measures such as EBITDA, EBITDA Margin (%), Profit After Tax Margin (%), RoE (%), adjusted RoCE (%), Cash

Profit, net worth, return on net worth, net asset value per Equity Share, Net Debt and Net Debt/ EBITDA ("Non-GAAP measures") presented in this Red Herring prospectus are a supplemental measure of our performance and liquidity that is not required by, or presented in accordance with, Ind AS, Indian GAAP, IFRS or US GAAP. Further, these Non-GAAP measures are not a measurement of our financial performance or liquidity under Ind AS, Indian GAAP, IFRS or US GAAP and should not be considered in isolation or construed as an alternative to cash flows, profit/ (loss) for the years or any other measure of financial performance or as an indicator of our operating performance, liquidity, profitability or cash flows generated by operating, investing or financing activities derived in accordance with Ind AS, Indian GAAP, IFRS or US GAAP. In addition, they are not standardised terms, hence a direct comparison of these Non-GAAP measures between companies may not be possible. Other companies may calculate these Non-GAAP measures differently from us, limiting their usefulness as a comparative measure. Although such Non-GAAP measures are not a measure of performance calculated in accordance with applicable accounting standards, we believe that they are useful to an investor in evaluating us as they are widely used measures to evaluate a companys operating performance. For further information, see "Risk Factors Certain non-GAAP financial measures relating to our operations and financial performance have been included in this Red Herring Prospectus. These non-GAAP financial measures are not measures of operating performance or liquidity defined by Ind AS and may not be comparable" and "Other Financial Information" on pages 53 and 260 respectively.

Reconciliation of Non-GAAP measures

Reconciliation of restated profit after tax to EBITDA and EBITDA Margin

EBITDA is calculated as our restated profit after tax before exceptional items, plus depreciation and amortisation expenses, total tax expense, and finance costs. EBITDA Margin is calculated as EBITDA divided by total income.

Particulars	Fiscal 2026	Fiscal 2025	Fiscal 2024
	( million, except percentages)
Restated profit after tax (A)	1,042.99	431.06	224.12
Total tax (expense) / credit (B)	366.43	-	-
Finance costs (C)	253.35	265.23	256.10
Depreciation and amortisation expense (D)	704.71	488.10	301.30
EBITDA (E) (E=A-B+C+D)	1,634.62	1,184.39	781.52
Total income (F)	3,940.89	2,719.61	1,957.97
EBITDA Margin (%) (G =E/F)	41.48%	43.55%	39.92%

Reconciliation from restated profit after tax to return on equity

Return on equity is calculated as restated profit after tax minus preference dividend divided by the average total equity at the end of the respective year.

Particulars	As of/ For the year ended March 31, 2026	As of/ For the year ended March 31, 2025	As of/ For the year ended March 31, 2024
	( million, except percentages)
Restated profit after tax (A)	1,042.99	431.06	224.12
Preference Dividend (B)	-	-	-
Restated profit after tax (C=A-B)	1,042.99	431.06	224.12
Opening Total Equity (D)	1,836.10	1,396.05	222.18
Closing Total Equity (E)	2,958.07	1,836.10	1,396.05
Average Total Equity (F)= (D+E)/2	2,397.09	1,616.08	809.12
Return on equity ("RoE") (%) (C/F)	43.51%	26.67%	27.70%

Reconciliation of return on capital employed

Adjusted Return on capital employed is calculated as EBIT divided by Average Capital Employed.

Particulars	As of/ For the year ended March 31, 2026	As of/ For the year ended March 31, 2025	As of/ For the year ended March 31, 2024
	( million, except percentages)
Restated profit before tax (A)	676.56	431.06	224.12
Add: Exceptional items (B)	25.79	-	-
Add: Finance costs (C)	253.35	265.23	256.10
Less: Other Income (D)	71.01	60.02	30.96
Earnings before interest, taxes (EBIT) (E = A + B + C - D)	884.69	636.27	449.26
Total Equity (F)	2,958.07	1,836.10	1,396.05
Total Borrowings (G)	1,875.90	1,545.82	1,472.21
Deferred tax assets (net) (H)	365.21	-	-
Intangible assets (I)	17.78	21.41	12.84
Intangible assets under development (J)	13.33	2.31	-
Cash and Cash Equivalents (K)	230.97	125.21	432.01
Bank balances other than cash and cash equivalents (L)	93.82	85.64	228.34
Investment (M)	57.91	220.38	60.48
Capital Employed (N= F+G-H-I-J-K-L-M)	4,054.95	2,926.97	2,134.59
Average Capital Employed (O) = (Opening + Closing) / 2	3,490.96	2,530.78	1,427.64
Adjusted Return on Capital Employed ("RoCE") (%) (P = E/ O)	25.34%	25.14%	31.47%

Reconciliation of Net Debt and Net Debt/ EBITDA

Net debt is calculated as the sum of total borrowings less cash and cash equivalents and term deposits.

Particulars	As of/ For the year ended March 31, 2026	As of/ For the year ended March 31, 2025	As of/ For the year ended March 31, 2024
	( million, except percentages)
Current Liabilities Financial Liabilities- Borrowings (A)	778.03	727.01	691.07
Non-Current Liabilities Financial Liabilities Borrowings (B)	1,097.87	818.81	781.14
Total Borrowings (C) = (A+B)	1,875.90	1,545.82	1,472.21
Cash and Cash Equivalents (D)	230.97	125.21	432.01
Bank balances other than cash and cash equivalents (E)	93.82	85.64	228.34
Investments (F)	57.91	220.38	60.48
Net Debt (G= C-D-E-F)	1,493.20	1,114.59	751.38
EBITDA (H)	1,634.62	1,184.39	781.52
Net Debt/ EBITDA (I=G/H)	0.91	0.94	0.96

Reconciliation of Net Worth and Return on Net Worth

Net worth is calculated as the sum of equity share capital, instruments entirely equity in nature and other equity. Return on net worth calculated as restated profit after tax divided by the average of opening and closing net worth.

Particulars	As of/ For the year ended March 31, 2026	As of/ For the year ended March 31, 2025	As of/ For the year ended March 31, 2024
	( million, except percentages)
Equity share capital (A)	34.47	0.19	0.19
Instruments entirely equity in nature (B)	6.50	6.50	6.50
Other Equity (C)	2,917.10	1,829.41	1,389.36
Net worth (D = A + B + C)	2,958.07	1,836.10	1,396.05
Opening net worth (E)	1,836.10	1,396.05	222.18
Closing net worth (F)	2,958.07	1,836.10	1,396.05
Restated profit after tax (G)	1,042.99	431.06	224.12
Average of opening and closing net worth (H = (E+F)/2)	2,397.09	1,616.08	809.12
Return on net worth (%) (I = G/H)	43.51%	26.67%	27.70%

Reconciliation of Net Asset Value per equity share

Net asset value per equity share is calculated as net worth divided by the diluted number of equity shares.

Particulars	As of/ For the year ended March 31, 2026	As of/ For the year ended March 31, 2025	As of/ For the year ended March 31, 2024
Net worth (A) ( million)	2,958.07	1,836.10	1,396.05
Diluted number of equity shares (B)	103,233,240	103,103,034	91,589,438
Net asset value per equity share (C = A/B) ( )	28.65	17.81	15.24

PRINCIPAL COMPONENTS OF INCOME AND EXPENDITURE

Income

Our total income comprises our revenue from operations and other income.

Revenue from operations

Our revenue from operations comprises revenue from contracts with customers, whom we refer to as subscriber. Our revenue from contracts with customers comprises primarily of

(i) sale of services which includes

(a) rental revenue, and

(b) delivery and installation;

(ii) sale of products, which relates to assets sold to leasing companies under sale and lease back arrangements, which we have discontinued from Fiscal 2024 onwards; and

(iii) other operating revenue, comprising quality, inspection and other charges, which includes an optional add-on for subscribers to pay a monthly fee towards a damage waiver for subscribers who do not opt in for this add-on, any damage charges levied on the subscriber for damages to products upon return.

Other income

Our other income comprises

(i) interest income from financial assets measured at amortised cost on bank deposits;

(ii) interest from other financial assets carried at amortised cost;

(iii) gain on sale of net investments (net);

(iv) gain/loss on termination of lease;

(v) fair value gain on investments measured at FVTPL;

(vi) liabilities no longer required written back; and

(vii) miscellaneous income, which includes insurance claims.

Expenses

Our expenses comprise:

(i) purchases of stock in trade;

(ii) changes in inventories of stock-in-trade;

(iii) employee benefits expense;

(iv) finance costs;

(v) depreciation and amortization expense; and

(vi) other expenses.

Purchases of stock in trade

Our purchases of stock in trade comprise purchases of furniture and appliances.

Employee benefits expense

Employee benefits expense comprises:

(i) salaries, wages and bonus;

(ii) contribution to provident fund and other funds;

(iii) gratuity expense;

(iv) share based payment expense; and

(v) staff welfare expenses.

Finance costs

Our finance costs comprise of

(i) interest expense on financial liabilities measured at amortised cost on

(a) debentures;

(b) term loans from banks; and

(c) term loans from others;

(ii) interest expense on lease liabilities;

(iii) interest expense on MSME dues;

(iv) loss on derecognition of financial liabilities;

(v) interest on expense on delayed statutory dues; and (vi) other finance cost (includes foreclosure charges).

Depreciation and amortization expenses

Our depreciation and amortization expenses comprise of (i) depreciation of property, plant and equipment;

(ii) depreciation of right-of-use-assets; and

(iii) amortisation of intangible assets.

Other expenses

Our other expenses primarily include

(i) power and fuel;

(ii) logistics expense;

(iii) contractual manpower expense;

(iv) payment gateway expense;

(v) office, retail store and warehouse expense ;

(vi) allowance for credit loss on trade receivables;

(vii) information technology expenses;

(viii) assets on rent;

(ix) rent expense on

(a) warehouse;

(b) experience stores;

(c) equipment; and

(d) others;

(x) repairs and maintenance relating to

(a) plant and machinery; and

(b) others);

(xi) loss on sale of property, plant and equipment, which relates to loss incurred on scrapping of assets which are no longer in use and the difference between amount realised on sale of such assets and the carrying value is recognized as a loss;

(xii) rates and taxes;

(xiii) communication expense;

(xiv) insurance expenses;

(xv) security charges;

(xvi) travelling and conveyance;

(xvii) performance marketing;

(xviii) branding and other marketing expenses; and

(xix) legal and professional charges.

Results of Operations

The following table sets forth certain information with respect to our results of operations for Fiscals 2026, 2025 and 2024:

Particulars	Fiscal
	2026		2025		2024
	( million)	Percentage of Total Income (%)	( million)	Percentage of Total Income (%)	( million)	Percentage of Total Income (%)
Income
Revenue from operations	3,869.88	98.20%	2,659.59	97.79%	1,927.01	98.42%
Other income	71.01	1.80%	60.02	2.21%	30.96	1.58%
Total income	3,940.89	100.00%	2,719.61	100.00%	1,957.97	100.00%
Expenses
Employee benefits expense	607.98	15.43%	414.38	15.24%	309.35	15.80%
Finance costs	253.35	6.43%	265.23	9.75%	256.10	13.08%
Depreciation and amortisation expenses	704.71	17.88%	488.10	17.95%	301.30	15.39%
Other expenses	1,672.50	42.44%	1,120.84	41.21%	867.10	44.29%
Total expenses	3,238.54	82.18%	2,288.55	84.15%	1,733.85	88.55%
Restated profit before exceptional items and tax	702.35	17.82%	431.06	15.85%	224.12	11.45%
Exceptional items	25.79	0.65%	-	-	-	-
Restated profit before tax	676.56	17.17%	431.06	15.85%	224.12	11.45%
Total tax (expense)/ credit
Current tax	-	-	-	-	-
Deferred tax credit	366.43	9.30%	-	-	-
Total tax credit (expense)/ credit	366.43	9.30%	-	-	-
Restated profit after tax	1,042.99	26.47%	431.06	15.85%	224.12	11.45%

FISCAL 2026 COMPARED TO FISCAL 2025

Total income

Our total income increased by 44.91% from 2,719.61 million in Fiscal 2025 to 3,940.89 million in Fiscal 2026, primarily due to an increase in revenue from operations.

Revenue from operations

Our revenue from operations increased by 45.51% from 2,659.59 million in Fiscal 2025 to 3,869.88 million in Fiscal 2026, primarily due to an increase in our rental revenue from 2,598.01 million in Fiscal 2025 to 3,608.30 million in Fiscal 2026 on account of higher rental volumes of our furniture and appliances; our number of gross items ordered increased from 694,785 in Fiscal 2025 to 989,931 in Fiscal 2026, our number of live items increased from 634,091 as of March 31, 2025 to 851,184 as of March 31, 2026 and our number of live subscribers increased from 194,262 as of March 31, 2025 to 253,825 as of March 31, 2026. Further, our income from delivery and installation charges increased by 73.32% from 45.87 million in Fiscal 2025 to 79.50 million in Fiscal 2026.

Other income

Our other income increased by 18.31% from 60.02 million in Fiscal 2025 to 71.01 million in Fiscal 2026, primarily due to an increase in liabilities no longer required written back from nil in Fiscal 2025 to 30.88 million in Fiscal 2026. This was partially offset by a decrease in

(i) gain on sale of investments (net) from 29.76 million in Fiscal 2025 to 20.32 million in Fiscal 2026, and

(ii) miscellaneous income from 11.64 million in Fiscal 2025 to 2.72 million in Fiscal 2026.

Expenses

Total expenses increased by 41.51% from 2,288.55 million in Fiscal 2025 to 3,238.54 million in Fiscal 2026, primarily on account of an increase in

(i) employee benefits expense;

(ii) depreciation and amortisation expense; and

(iii) other expenses.

Employee benefits expense

Our employee benefit expenses increased by 46.72% from 414.38 million in Fiscal 2025 to 607.98 million in Fiscal 2026, primarily due to an increase in

(i) salaries, wages and bonus from 357.90 million in Fiscal 2025 to 534.63 million in Fiscal 2026,

(ii) contribution to provident fund and other funds from 15.44 million in Fiscal 2025 to 21.24 million in Fiscal 2026,

(iii) gratuity expense from 10.32 million in Fiscal 2025 to 16.08 million in Fiscal 2026,

(iv) share based payment expense from 12.38 million in Fiscal 2025 to 13.48 million in Fiscal 2026, and

(v) staff welfare expenses from 18.34 million in Fiscal 2025 to 22.55 million in Fiscal 2026. These increases were primarily on account of an increase in our number of employees from 568 as of March 31, 2025 to 835 as of March 31, 2026, as well as an increase in compensation levels for existing employees.

Finance costs

Our finance cost decreased by 4.48% from 265.23 million in Fiscal 2025 to 253.35 million in Fiscal 2026, primarily due to a decrease in

(i) interest expense on financial liabilities measured at amortised cost from 210.35 million in Fiscal 2025 to 195.00 million in Fiscal 2026 due to repayment and prepayment of our borrowings.

Depreciation and amortisation expense

Our depreciation and amortization expense increased by 44.38% from 488.10 million in Fiscal 2025 to 704.71 million in Fiscal 2026, primarily due to an increase in

(i) depreciation of property, plant and equipment from 294.10 million in Fiscal 2025 to 490.17 million in Fiscal 2026 on account of increase in gross carrying value from 3,421.47 million as of March 31, 2025 to 5,299.22 million as of March 31, 2026; and

(ii) depreciation of right-of-use-assets from 186.19 million in Fiscal 2025 to 208.32 million in Fiscal 2025 due to an increase in the number of our experience stores and warehouses.

Other expenses

Our other expenses increased by 49.22% from 1,120.84 million in Fiscal 2025 to 1,672.50 million in Fiscal 2026, primarily due to an increase in:

(i) Contractual manpower expense from 246.49 million in Fiscal 2025 to 380.21 million in Fiscal 2026 on account of increase in contractual personnel for warehouse operations, refurbishment, installation, servicing and subscriber support functions to support the expanding rental asset base and operational scale of our business;

(ii) Logistics expense from 193.42 million in Fiscal 2025 to 279.85 million in Fiscal 2026 due to higher last-mile and reverse logistics volumes arising from growth in new subscriptions and churn associated with scaling of operations across cities;

(iii) Refurbishment cost on plant and machinery from 148.99 million in Fiscal 2025 to 190.29 million in Fiscal 2026 on account of higher costs incurred to extend the usable life of rental assets and maintain service quality as the asset base expanded;

(iv) Performance marketing from 112.44 million in Fiscal 2025 to 209.48 million in Fiscal 2026 due to higher spending on digital marketing initiatives aimed at driving subscriber acquisition and subscription growth across new and existing markets;

(v) Information technology expenses from 83.52 million in Fiscal 2025 to 113.45 million in Fiscal 2026 due to continued investments in our technology platforms to support and improve customer experience, subscription management, asset lifecycle tracking, logistics optimization and refurbishment planning; and

(vi) Allowance for credit loss on trade receivables from 32.29 million in Fiscal 2025 to 67.97 million in Fiscal

2026 due to provisioning for subscriber receivables based on expected credit loss assessment, in line with growth in the subscriber base and growth in revenues.

Restated profit before tax

Effective November 21, 2025, the Government of India consolidated 29 existing labour regulation into four Labour Codes - the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020, collectively referred to as New Labour codes. The New Labour codes has resulted in a one-time material increase in provision for employee benefits on account of recognition of past service costs. Based on the requirement as per the New Labour codes and relevant accounting standard, our Company has assessed and accounted the estimated incremental impact as Exceptional item in the statement of profit or loss for the year ended March 31, 2026 of 25.79 million which has been treated as exceptional expense in the financial statements. Upon notification of the related rules to New Labour codes by the Government and any further classifications from the Government on other aspects of New Labour codes, our Company will evaluate and account for additional impact if any, determined in subsequent periods.

Post considering this impact and for the reasons discussed above, our restated profit before tax was 676.56 million in Fiscal 2026 compared to restated profit before tax of 431.06 million in Fiscal 2025.

Tax expense

Our current tax expense was nil in both Fiscal 2025 and Fiscal 2026, primarily on account of the set-off of brought-forward business losses and unabsorbed depreciation available to our Company under the provisions of the Income-tax Act, 1961. During Fiscal 2026, we assessed the recoverability of previously unrecognised deferred tax assets on unutilised tax losses, unabsorbed depreciation and other temporary differences, and based on the nature of our business, past trend of business growth, history of taxable income and future projections approved by our Board of Directors, recognised a deferred tax asset to the extent there is reasonable certainty that such deferred tax assets will be utilised in the foreseeable future, resulting in a deferred tax credit of 366.43 million for the year. Accordingly, our total tax expense/(credit) was nil in Fiscal 2025 and there was a credit of 366.43 million in Fiscal 2026.

Restated profit after tax

Our restated profit after tax increased by 141.96% from 431.06 million in Fiscal 2025 to 1,042.99 million in Fiscal 2026.

FISCAL 2025 COMPARED TO FISCAL 2024

Total income

Our total income increased by 38.90% from 1,957.97 million in Fiscal 2024 to 2,719.61 million in Fiscal 2025, primarily due to an increase in revenue from operations.

Revenue from operations

Our revenue from operations increased by 38.02% from 1,927.01 million in Fiscal 2024 to 2,659.59 million in Fiscal 2025, primarily due to an increase in our rental revenue from 1,892.10 million in Fiscal 2024 to 2,598.01 million in Fiscal 2025 on account of higher rental volumes of our furniture and appliances; our number of gross items ordered increased from 524,949 in Fiscal 2024 to 694,785 in Fiscal 2025, our number of live items increased from 463,130 as of March 31, 2024 to 634,091 as of March 31, 2025 and our number of live subscribers increased from 149,498 as of March 31, 2024 to 194,262 as of March 31, 2025. Further, our income from delivery and installation charges increased by 46.32% from 31.35 million in Fiscal 2024 to 45.87 million in Fiscal 2025.

Other income

Our other income increased by 93.86% from 30.96 million in Fiscal 2024 to 60.02 million in Fiscal 2025, primarily due to an increase in

(i) gain on sale of investments (net) from 13.71 million in Fiscal 2024 to 29.76 million in Fiscal 2025 mainly due to the availability of additional funds for investment and the timing of recognition of such sale of investments; and

(ii) miscellaneous income from 0.86 million in Fiscal 2024 to 11.64 million in Fiscal 2025 primarily on account of receipt of an insurance claimpertaining to fire at the Companys warehouse in Mumbai in November, 2021.

Expenses

Total expenses increased by 31.99% from 1,733.85 million in Fiscal 2024 to 2,288.55 million in Fiscal 2025, primarily on account of an increase in

(i) other expenses;

(ii) depreciation and amortization expenses; and

(iii) employee benefits expense.

Employee benefits expense

Our employee benefits expenses increased by 33.95% from 309.35 million in Fiscal 2024 to 414.38 million in Fiscal 2025, primarily due to an increase in

(i) salaries, wages and bonus from 274.65 million in Fiscal 2024 to 357.90 million in Fiscal 2025,

(ii) contribution to provident fund and other funds from 11.00 million in Fiscal 2024 to 15.44 million in Fiscal 2025,

(iii) gratuity expense from 8.23 million in Fiscal 2024 to 10.32 million in Fiscal 2025,

(iv) share based payment expense from 8.36 million in Fiscal 2024 to 12.38 million in Fiscal 2025, and

(v) staff welfare expenses from 7.11 million in Fiscal 2024 to 18.34 million in Fiscal 2025. These increases were primarily on account of an increase in our number of employees from 446 as of March 31, 2024 to 568 as of March 31, 2025, as well as an increase in compensation levels for existing employees.

Finance costs

Our finance cost increased by 3.57% from 256.10 million in Fiscal 2024 to 265.23 million in Fiscal 2025, primarily due to an increase in

(i) interest expense on lease liabilities from 24.62 million in Fiscal 2024 to 43.57 million in Fiscal 2025 due to increase in experience stores from 14 in Fiscal 2024 to 45 in Fiscal 2025 and warehouses from 18 in Fiscal 2024 to 20 in

Fiscal 2025; and

(ii) interest expense on financial liabilities measured at amortised cost on term loans from banks from 21.28 million in Fiscal 2024 to 34.90 million in Fiscal 2025 on account of an increase in our borrowings.

Depreciation and amortisation expense

Our depreciation and amortisation expense increased by 62.00% from 301.30 million in Fiscal 2024 to 488.10 million in Fiscal 2025, primarily due to an increase in

(i) depreciation of property, plant and equipment 190.80 million in Fiscal 2024 to 294.10 million in Fiscal 2025 on account of increase in gross carrying value from 1,854.67 million as of March 31, 2024 to 3,421.47 million as of March 31, 2025; and (ii) depreciation of right-of-use-assets from 95.30 million in Fiscal 2024 to 186.19 million in Fiscal 2025 due to an increase in the number of our experience stores and warehouses.

Other expenses

Our other expenses increased by 29.26% from 867.10 million in Fiscal 2024 to 1,120.84 million in Fiscal 2025, primarily due to an increase in:

(i) Contractual manpower expense from 149.57 million in Fiscal 2024 to 246.49 million in Fiscal 2025 on account of increase in contractual personnel for warehouse operations, refurbishment, installation, servicing and subscriber support functions to support the expanding rental asset base and operational scale of our business;

(ii) Logistics expense from 138.70 million in Fiscal 2024 to 193.42 million in Fiscal 2025 due to higher last-mile and reverse logistics volumes arising from growth in new subscriptions and churn associated with scaling of operations across cities;

(iii) Refurbishment cost on plant and machinery from 85.74 million in Fiscal 2024 to 148.99 million in Fiscal 2025 on account of higher costs incurred to extend the usable life of rental assets and maintain service quality as the asset base expanded;

(iv) Performance marketing from 61.77 million in Fiscal 2024 to 112.44 million in Fiscal 2025 due to higher spending on digital marketing initiatives aimed at driving subscriber acquisition and subscription growth across new and existing markets;

(v) Information technology expenses from 59.23 million in Fiscal 2024 to 83.52 million in Fiscal 2025 due to continued investments in our technology platforms to support and improve customer experience, subscription management, asset lifecycle tracking, logistics optimization and refurbishment planning;

(vi) Branding and other marketing expenses from 6.12 million in Fiscal 2024 to 45.00 million in Fiscal 2025 owing to enhanced brand-building initiatives and promotional campaigns to strengthen brand awareness and brand recall;

(vii) Allowance for credit loss on trade receivables from 24.66 million in Fiscal 2024 to 32.29 million in Fiscal 2025 due to provisioning for subscriber receivables based on expected credit loss assessment, in line with growth in the subscriber base and growth in revenues;

(viii) Rent expense on warehouse from 27.95 million in Fiscal 2024 to 30.38 million in Fiscal 2025 due to leasing of additional warehouse space to support higher asset levels and refurbishment requirements along with catering to basic infrastructure requirements for modernisation of warehouses and assist in optimising asset management and fulfilment costs; and

(ix) Rent expense on equipment from 11.52 million in Fiscal 2024 to 23.03 million in Fiscal 2025 due to higher leasing of equipment required for managing modernised warehouses to boost efficiencies in asset management and fulfilment.

This was partially offset by a decrease in

(i) assets on rent from 96.96 million in Fiscal 2024 to nil in Fiscal 2025 due to discontinuation of leasing arrangements for certain assets and a strategic shift towards owning of assets instead of leasing, and

(ii) legal and professional charges from 84.41 million in Fiscal 2024 to 32.06 million in Fiscal 2025, due to one-time fundraising expenses incurred in Fiscal 2024.

Restated profit before tax

For the reasons discussed above, our restated profit before tax was 431.06 million in Fiscal 2025 compared to restated profit before tax of 224.12 million in Fiscal 2024.

Tax expense

Our total tax expenses were nil in both Fiscal 2024 and Fiscal 2025, primarily on account of the set-off of brought-forward business losses and unabsorbed depreciation available to the Company under the provisions of the Income-tax Act, 1961. Accordingly, no current tax liability was incurred during these periods.

Restated profit after tax

Our restated profit after tax increased to 431.06 million in Fiscal 2025 from 224.12 million in Fiscal 2024.

LIQUIDITY AND CAPITAL RESOURCES

Liquidity and Capital Resources

We fund our operations through cash flows from operations and external borrowings. For further information, see "Financial Indebtedness" and "Risk Factors We have obtained and may continue to obtain financing for our business and our inability to obtain further financing or meet our obligations, including financial and other covenants under financing arrangements could adversely affect our business, results of operations, financial condition and cash flows. on pages 332 and 33, respectively.

Cash Flows

The following table sets forth certain information relating to our cash flows in the years indicated:

Particulars	For the year ended March 31,
	2026	2025	2024
	( million)
Net cash from operating activities (A)	1,728.71	1,155.45	915.72
Net cash used in investing activities (B)	(1,583.37)	(1,113.06)	(1,841.09)
Net cash (used in) / from financing activities (C)	(41.99)	(346.84)	1,130.96
Net (decrease) / increase in cash and cash equivalents (A + B + C)	103.35	(304.45)	205.59
Cash and cash equivalents at the end of the year	210.28	106.93	411.38

Operating Activities

Fiscal 2026

Net cash from operating activities was 1,728.71million in Fiscal 2026. While our restated profit before tax was 676.56 million, we had an operating cash flow before movements in working capital of 1,712.92 million. Our working capital adjustments primarily comprised of an increase in trade payables of 225.80 million and an increase in financial liabilities of

55.14 million. This was partially offset by an increase in trade receivables of (175.87) million and an increase in other assets by (126.64) million. Cash generated from operations was 1,729.00 million. Income taxes paid were (0.29) million.

Fiscal 2025

Net cash from operating activities was 1,155.45 million in Fiscal 2025. While our restated profit before tax was 431.06 million, we had an operating cash flow before movements in working capital of 1,205.86 million. Our working capital adjustments primarily comprised of an increase in financial liabilities of 114.03 million, increase in trade payables of 34.73 million and increase in provisions of 13.71 million. This was partially offset by a further increase in trade receivables of (118.75) million and an increase in financial assets of (44.39) million and other assets of (37.70) million. Cash generated from operations was 1,158.06 million. Income taxes paid were (2.61) million.

Fiscal 2024

Net cash from operating activities was 915.72 million in Fiscal 2024. While our restated profit before tax was 224.12 million, we had an operating cash flow before movements in working capital of 804.44 million. Our working capital adjustments primarily comprised of an increase in financial liabilities amounting to 89.91 million, a decrease in financial assets amounting to 58.33 million and an increase in trade payables amounting to 31.77 million. This was partially offset by an increase in trade receivables of (92.49) million. Cash generated from operations was 917.14 million. Income taxes paid were (1.42) million.

Investing Activities

Fiscal 2026

Net cash used in investing activities was (1,583.37) million in Fiscal 2026, primarily on account of purchase of mutual funds of (2,384.88) million, purchases of property, plant and equipment (including capital advances and capital creditors) of (1,758.30) million and deposits placed with banks of (57.75) million. This was largely offset by proceeds on sale of mutual funds 2,568.34 million and proceeds from maturity of bank deposits of 50.49 million.

Fiscal 2025

Net cash used in investing activities was (1,113.06) million in Fiscal 2025, primarily on account of purchase of mutual funds of (2,809.54) million, purchases of property, plant and equipment (including capital advances and capital creditors) of (1,382.97) million and deposits placed with banks of (102.95) million. This was largely offset by proceeds on sale of mutual funds 2,679.70 million and proceeds from maturity of bank deposits of 505.65 million.

Fiscal 2024

Net cash used in investing activities was (1,841.09) million in Fiscal 2024, primarily on account of purchase of mutual funds accounting for (1,645.10) million, purchases of property, plant and equipment (including capital advances and capital creditors) of (1,488.47) million and deposits placed with banks of (568.02) million. This was partially offset by proceeds on sale of mutual funds of 1,598.71 million and proceeds from maturity of bank deposits of 269.60 million.

Financing Activities

Fiscal 2026

Net cash used in financing activities was (41.99) million in Fiscal 2026, primarily on account of repayment of borrowings of (835.98) million, prepayment of borrowings of (141.71) million, finance cost other than lease liabilities of (203.01) million and repayment of principal on lease liabilities of (184.90) million. These were primarily offset on account of proceeds from borrowings of 1,313.80 million.

Fiscal 2025

Net cash used in financing activities was (346.84) million in Fiscal 2025, primarily on account of repayment of borrowings of (735.34) million, prepayment of borrowings of (365.20) million, finance cost other than lease liabilities of (212.12) million and repayment of principal on lease liabilities of (154.46) million. These were primarily offset on account of proceeds from borrowings of 1,169.97 million.

Fiscal 2024

Net cash from financing activities was 1,130.96 million in Fiscal 2024 on account of proceeds from borrowings amounting to 1,070.00 million and proceeds from issue of equity / preference shares amounting to 984.70 million. This was partially offset by repayment of borrowings amounting to (425.31) million, prepayment of borrowings of (88.71) million and finance cost other than lease liabilities amounting to (228.24) million.

Financial Indebtedness

Our Company has availed loans and other financing arrangements in the ordinary course of business to meet its business requirements.

As of March 31, 2026, our total borrowings were 1,875.90 million (which is a sum of non-current borrowings of 1,097.87 million and current borrowings of 778.03 million), lease liabilities were 455.37 million (which is a sum of non-current lease liabilities of 278.24 million and current lease liabilities of 177.13 million), trade payables were 391.53 million and other financial liabilities were 584.36 million. The following table sets forth certain information relating to outstanding indebtedness as of March 31, 2026 and our repayment obligations in the years indicated:

	Payment due by period
	Total	Up to one year	From 1 to 5 years	More than 5 years
	( million)
Borrowings (including interest thereon)
- Term loans- from banks	1,907.02	758.42	1,148.60	-
- Term loans- from others	1.59	1.59	-	-
- Non-convertible Debentures	237.60	173.41	64.19	-
Lease liabilities (including interest thereon)	469.20	216.91	230.05	22.24
Trade payables	391.53	391.53	-	-
Other financial liabilities	584.36	584.36	-	-

Contingent Liabilities and Commitments

The following tables sets forth our contingent liabilities and capital commitments as of March 31, 2026:

Particulars	Amount ( million)
Claims against the Group not acknowledged as debt:
Goods and Services Tax (GST) matters(1)	24.49

Notes:

(1) Pertains to GST litigations covering matters such as GSTR 3B vs GSTR 2A differences and GSTR 3B vs GSTR 1 differences.

For further information, please see "Restated Financial Information Note 36 Contingent liabilities" on page 297.

Particulars	As of March 31, 2026
	( million)
Capital commitments:
Estimated amount of contracts remaining to be executed on capital accounts and not provided for
- Property, plant and Equipment	88.36
Other commitments:
Loan sanctioned but not disbursed to to Liber Designs Pvt Ltd (wholly owned subsidiary of Rentomojo Ltd)	50.00
Loan sanctioned but not disbursed to to RM Employee Benefit Trust	1.50

For further information, please see "Restated Financial Information Note 37 Commitments" on page 297.

Off-Balance Sheet Commitments and Arrangements

Other than as disclosed in this Red Herring Prospectus, we have no other off-balance sheet commitments and arrangements that materially affect our financial condition or results of operations.

Capital Expenditures / Additions to Property, Plant and Equipment

Our capital expenditures consist principally of purchase of furniture and appliances. In course of our operations for Fiscals 2026, 2025 and 2024, we incurred additions to property, plant and equipment amounting to 1,927.04 million, 1,602.64 million and 1,115.17 million, respectively, towards the purchase of furniture, office equipment, electrical equipment, among others.

Related Party Transactions

For further information relating to our related party transactions, see "Restated Financial Information Note 32 Related Parties" on page 289.

Changes in accounting policies

There have been no changes in our accounting policies in Fiscals 2026, 2025 and 2024.

Financial Risk Management

Our principal financial liabilities comprise of borrowings, lease obligation, trade and other payables. The main purpose of these financial liabilities is to finance our operations. Our principal financial assets include security deposits, investments, trade and other receivables and cash and cash equivalents that is derived directly from its operations.

Our activities expose us to market risk, credit risk and liquidity risk. Our senior management oversees the management of these risks. The senior management ensures that our financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured, and managed in accordance with our policies and risk objectives. We review and agree on policies for managing each of these risks, as summarised below:

Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risks: interest rate risk and currency risk. Financial instruments affected by market risk include borrowings, deposits, loans, trade receivables and trade payables.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. All financial assets or liabilities are either non-interest bearing or are at a fixed or variable interest rate linked to external benchmarks and carried at amortised cost. Thus, we do not foresee any interest rate risk on these items.

Foreign currency risk

Foreign currency risk arises when the fair value or future cash flows of an exposure fluctuate due to changes in exchange rates. This risk affects us if there is a mismatch between the currencies in which its expenses are denominated and its functional currencies. Our exposure to the risk of changes in foreign exchange rates arises on account of purchases from foreign countries. We have not taken any derivative instrument during the year and there is no derivative instrument outstanding as at the year end. However, as at the reporting period, we had no outstanding foreign currency and do not possess any foreign currency risk.

Price risk

We invest the surplus funds in liquid mutual funds. It is exposed to the market price risk arising from uncertainties about future value of investment. We manage the equity price risk through investing surplus funds in liquid mutual funds on a short term basis.

Credit risk

Credit risk is the risk that a counterparty fails to discharge its obligation to us. The maximum credit risk comprises the carrying amounts of the financial assets. Our exposure to credit risk is influenced mainly by cash and cash equivalents, trade receivables and security deposits. We continuously monitor defaults of subscribers and other counterparties and incorporate this information into our credit risk controls.

Cash and cash equivalent, investments and other bank balances

Credit risk related to cash and cash equivalents, bank deposits and investments is managed by accepting highly rated banks and financial institutions. Investments primarily includes investment in mutual funds. Management does not expect any losses from non-performance by these counterparties.

Other financial assets measured at amortized cost

Other financial assets measured at amortized cost includes security deposits and other deposits. Credit risk related to assets are managed by monitoring the recoverability of such amounts continuously, while at the same time the internal control system in place ensures that amounts are within defined limits. Further, since the other amounts involved are not significant, the expected credit loss on these financial instruments is expected to be insignificant.

Trade receivables

We provide for allowance for impairment that represents its estimate of expected losses in respect of trade and other receivables. We have used a practical expedient by computing the expected credit loss allowance for trade receivables based on a simplified provision matrix. We have considered an assessment of past history and have taken into account various factors including future forecast conditions for determination of allowance for expected credit loss.

Liquidity risk

Liquidity risk is the risk that we will not be able to meet obligations associated with our financial liabilities that are settled by delivering cash or another financial asset as they fall due. We are exposed to this risk from our operating activities and financing activities. Our approach to managing liquidity is to ensure, as far as possible that it will have sufficient liquidity to meet its liability when they become due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to our reputation. Liquidity requirements are maintained within the credit facilities established and are adequate and available to us to meet our obligations.

Auditors Observations

Except as set forth in "Risk Factors Our Statutory Auditors have included certain observations on the audited financial statements, as well as certain statements in their auditors report issued under the Companies (Auditors Report) Order,2020 for the years ended March 31, 2026, 2025 and 2024" on page 29, our Statutory Auditors have not included any qualifications, reservations or adverse remarks in the Restated Financial Information.

Unusual or infrequent Events or Transactions

Except as described in this Red Herring Prospectus, there have been no unusual or infrequent events or transactions that have in the past or may in the future affect our business operations or future financial performance.

Known Trends or Uncertainties

Our business has been subject, and we expect it to continue to be subject, to significant economic changes arising from the trends identified above in "- Significant factors affecting our results of operations and financial condition" and the uncertainties described in "Risk Factors" on pages 303 and 23, respectively. Except as discussed in this Red Herring Prospectus, there are no known trends or uncertainties that have or had or are expected to have a material adverse impact on our revenues or income.

Significant Economic Changes that Materially Affect or are Likely to Affect Income from Continuing Operation

Our business has been subject, and we expect it to continue to be subject, to significant economic changes that materially affect or are likely to affect income from continuing operations identified above in "- Significant factors affecting our results of operations and financial condition" and the uncertainties described in "Risk Factors" on pages 303 and 23, respectively.

Recent accounting pronouncements

As on the date of this Red Herring Prospectus, there are no recent accounting pronouncements, which we believe would have a material effect on our financial condition or results of operations.

New Products or Business Segments

Except as described in this Red Herring Prospectus, we have not publicly announced any new products or business segments nor have there been any material increases in our revenues due to increased disbursements and the introduction of new products.

Future Relationship Between Cost and Income

Other than as described elsewhere in the sections "Risk Factors", "Our Business" and "Managements Discussion and

Analysis of Financial Condition and Results of Operations" on pages 23, 187 and 303, respectively, to our knowledge, there are no known factors that will have a material adverse impact on our operations and financial condition.

Significant Dependence on a Single or Few Customers or Suppliers

See "Risk Factors - If we are unable to procure products from our vendors on commercially acceptable terms or if our third-party manufacturers choose not to manufacture products for us or fail to maintain quality standards or if our margins are impacted by higher supply costs or raw material price increases or delay in supply of the products, our business and reputation may be adversely affected" on page 24.

Given the nature of our business operations, we do not believe our business is dependent on any single or a few customers.

Competitive Conditions

We operate in a competitive environment. See sections, "Our Business", "Industry Overview", "Risk Factors An inability to compete effectively may adversely affect our business, results of operations, financial condition and cash flows" and

"Significant factors affecting our results of operations and financial condition Competition and pricing dynamics" on pages 187, 164, 47 and 305, respectively.

Seasonality/Cyclicality of Business

While our business is not affected by seasonal trends in the Indian economy, we lease a higher number of air conditioners to subscribers during the summer months. For further information, see "Risk Factors - Certain appliances offered on our platform including air conditioners and air purifiers are seasonal in nature, which could cause our revenues to fluctuate" on page 51.

Significant Developments after March 31, 2026 that may affect our future results of operations

Other than as stated below, to our knowledge no circumstances have arisen since March 31, 2026 that could materially and adversely affect or are likely to affect, our operations or profitability, or the value of our assets or our ability to pay our material liabilities within the next 12 months:

In June 2026, a fire occurred at one of our warehouses located in Badalpur, Gautam Buddha Nagar, Uttar Pradesh, resulting in damage to the warehouse and certain assets stored therein. No injuries were reported in connection with the incident. The incident resulted in losses of approximately 110.20 million.