Womancart Ltd Management Discussions

1. COMPANY OVERVIEW

Womancart Limited ("Womancart" or "the Company") is a women-focused omni-channel lifestyle platform offering a wide range of fashion, beauty, wellness and everyday lifestyle products through its online platform, marketplaces and physical retail network.

The Company has evolved from its initial focus on beauty and personal care into a broader lifestyle platform serving multiple requirements of women across categories such as beauty and skincare, hair care, fragrances, jewellery, clothing, footwear, lingerie and sleepwear, home and kitchen products, personal care, mom and baby products and other everyday essentials.

During FY 2025-26, the Company continued to focus on expanding its product portfolio, increasing customer reach, strengthening its own-brand portfolio, expanding its retail and warehouse infrastructure and investing in technology and quick-commerce capabilities.

The Company had more than 31,350 SKUs, 9 own brands and more than 15 stores and warehouses. The Company also operated an 50,000 sq. ft. warehouse facility supporting its inventory-led fulfilment and quick-delivery model.

The Company has also expanded its international presence through operations in Australia and incorporated a wholly owned subsidiary, Womancart Lifestyle General Trading - L.L.C - S.P.C, in Dubai, UAE.

2. INDUSTRY STRUCTURE AND DEVELOPMENTS

The Indian retail and e-commerce industry continues to undergo significant transformation, supported by increasing internet penetration, digital payments, smartphone adoption, growing consumer preference for convenience and the expansion of organised retail.

Within this broader market, the womens lifestyle and beauty segment continues to offer attractive growth opportunities due to increasing disposable incomes, greater digital adoption, changing consumer preferences and increased demand for branded and curated products.

The emergence of quick commerce is further changing consumer expectations around delivery speed and convenience. Customers increasingly expect products to be available with shorter delivery timelines, transparent order tracking and convenient return options.

The Company believes that its omni-channel model, combination of online and offline retail, inventory-led fulfilment capabilities and growing own-brand portfolio position it to participate in these structural changes in the retail industry.

At the same time, the industry remains highly competitive, with established e-commerce platforms, marketplaces, quick-commerce players, specialised beauty platforms and traditional retailers competing for customer attention and market share.

4. BUSINESS MODEL

Womancart follows an omni-channel and inventory-led business model. The Companys products are offered through:

Its own e-commerce platform;

Online marketplaces;

Physical Womancart stores;

Womancart LUXE stores;

B2B and other business channels; and

International platforms and operations.

The inventory-led model enables the Company to maintain product availability and facilitate faster fulfilment. The Company has developed a delivery model designed to provide quick delivery, including a two-hour delivery proposition in Delhi NCR and Jaipur.

The Company also provides a 15-day return policy for online customers. During FY26, returns were stated to be approximately 10 12% of sales, while damages were approximately 2 3% of total sales.

5. FINANCIAL PERFORMANCE

The Companys consolidated financial performance for FY 2025-26 was marked by strong growth in revenue and operating profitability.

Consolidated Financial Highlights

Particulars	FY 2025-26	FY 2024-25	Growth
Revenue from Operations	133.69 Cr	59.11 Cr	126.2%
Other Income	1.78 Cr	1.13 Cr	56.8%
Total Income	135.47 Cr	60.25 Cr	124.7%
EBITDA	19.65 Cr	11.05 Cr	77.81%

 

Particulars	FY 2025-26	FY 2024-25	Growth
EBITDA Margin	14.69%	18.69%
PBT	12.11 Cr	8.50 Cr	42.4%
PAT before minority/associate adjustments	8.11 Cr	7.19 Cr	12.9%
PAT attributable after minority interest and associate	6.91 Cr	7.18 Cr

The audited consolidated results reported revenue from operations of 13,368.98 lakh and total revenue of 13,546.71 lakh for FY 26. EBITDA stood at 1,786.8 lakh and profit before tax at 1,210.7 lakh.

REVENUE GROWTH

Revenue from operations increased by approximately 126.2% from 59.11 crore in FY25 to 133.69 crore in FY26.

The growth was primarily driven by:

- Increase in order volumes;

- Expansion of the SKU portfolio;

- Deeper penetration across existing markets;

- Expansion into additional product categories;

- Growth across online and offline channels;

- Increased contribution from marketplaces;

- Expansion of the retail and warehouse network; and

- Continued customer acquisition and brand-building initiatives.

The Company has demonstrated significant revenue scale-up over the past several years, with revenue increasing from 29.30 crore in FY24 to 59.11 crore in FY25 and 133.69 crore in FY26.

6. PROFITABILITY ANALYSIS

During FY26, EBITDA increased to 17.87 crore from 9.92 crore in FY25, representing growth of approximately 80.2%.

However, EBITDA margin moderated from 16.8% in FY25 to 13.4% in FY26.

The moderation in margin was primarily attributable to:

- Higher contribution from marketplace sales;

- Increased customer acquisition expenditure;

- Strategic discounting to expand market reach;

- Increased input costs;

- Higher operating and infrastructure costs; and

- Continued investments in technology, retail expansion and growth infrastructure.

The Company nevertheless achieved significant absolute EBITDA growth, demonstrating operating leverage from the increase in business scale.

Gross profit increased from 25.30 crore in FY25 to 37.88 crore in FY26. Gross margin, however, declined from 42.8% to 28.3%, primarily reflecting the higher contribution of marketplace sales, discounting and input cost pressures.

Depreciation and amortisation increased substantially from 1.34 crore to 5.63 crore, reflecting the Companys investments in infrastructure, technology and expansion.

Finance costs increased from 1.21 crore to 1.90 crore during the year, consistent with the increase in working capital requirements and business expansion.

Profit before tax increased by 42.4% to 12.11 crore from 8.50 crore in FY25.

7. REVENUE MIX AND OWN BRANDS

The Company continued to strengthen its portfolio of home-grown brands during FY26.

During the year, approximately 42% of FY26 revenue was contributed by own brands, while approximately 58% was contributed by OEM/other brands. The Company remains focused on increasing the contribution from its own brands because of their potential to provide greater control over product assortment, pricing, customer experience and margins.

The Companys own-brand portfolio includes categories such as jewellery, lingerie, clothing, footwear, home products, fragrances, accessories and kids essentials.

During FY26, the Company also launched Blluex Junior, focused on childrens everyday essentials such as lunch boxes, backpacks, stationery and other accessories.

The Companys strategy is to gradually increase the contribution of own brands while maintaining a diversified product assortment through established third-party and OEM brands.

8. PRODUCT PORTFOLIO AND CATEGORY EXPANSION

During FY26, Womancart continued to expand beyond its traditional beauty-focused offering.

The Companys product portfolio now covers:

- Makeup and skincare; - Hair care; - Fragrances; - Personal care; - Jewellery; - Clothing and accessories; - Footwear; - Lingerie and sleepwear; - Home and kitchen products; - Mom and baby products; and - Kids essentials.

The Company had more than 31,350 SKUs on its platform at the end of FY26.

The Companys approach is to build a broader "one-stop solution" for womens lifestyle requirements, thereby increasing customer engagement and share of wallet.

9. QUICK-COMMERCE AND TECHNOLOGY

Technology continues to be a key component of the Companys growth strategy.

During FY26, the Company continued to develop its quick-delivery proposition, supported by inventory-led fulfilment, warehouses and stores located close to customers.

The Company has developed a two-hour delivery model in Delhi NCR and Jaipur and intends to progressively expand the model to additional cities.

The technology platform is intended to improve:

- Order processing; - Inventory visibility; - Delivery tracking; - Estimated delivery time; - Customer communication; - Order fulfilment; and - Overall customer experience.

The Company believes that faster fulfilment combined with a broad product assortment can become a key differentiator in the competitive e-commerce and quick-commerce environment.

10. OMNI-CHANNEL RETAIL NETWORK

The Company continued to strengthen its offline presence during FY26.

As per the Companys FY26 investor presentation, the retail network included Womancart stores and Womancart LUXE stores across Delhi NCR, supported by warehouses and fulfilment infrastructure.

The Companys omni-channel strategy enables customers to access substantially the same products and pricing across its online and offline channels.

The Company believes physical stores provide important advantages in categories where customers value product experience, physical inspection, trial and immediate fulfilment.

The Companys "Try & Buy" proposition is also intended to reduce barriers associated with online shopping.

11. INTERNATIONAL EXPANSION

During FY26, the Company expanded its international footprint through operations in Australia.

The Australian business had more than 256 SKUs and generated approximately AUD 99,000 of ARR as disclosed in the FY26 investor presentation. Victoria accounted for approximately 66% of orders, while the business reported approximately 78% organic demand and approximately 4% returns.

The Company also incorporated a wholly owned subsidiary in Dubai, UAE, named Womancart Lifestyle General Trading - L.L.C - S.P.C, on 1^st December 2025.

The international strategy remains focused on building a scalable platform, understanding local customer behaviour and gradually expanding the product portfolio and customer base.

12. WORKING CAPITAL AND BALANCE SHEET

The Companys rapid growth resulted in a significant increase in working capital requirements. As at 31^st March 2026:

Particulars	FY26	FY25
Inventories	83.60 Cr	37.31 Cr
Trade Receivables	22.90 Cr	5.93 Cr
Cash & Cash Equivalents	9.39 Cr	11.07 Cr
Short-term Loans & Advances	10.76 Cr	5.21 Cr
Total Assets	159.71 Cr	90.32 Cr

Inventory increased substantially during the year, reflecting the Companys strategy of maintaining product availability, expanding SKU breadth and preparing inventory for seasonal and festive demand.

The increase in working capital remains an important area of management focus, particularly with respect to inventory turnover, receivables collection and cash conversion.

13. CAPITAL STRUCTURE

During FY 26, the Company raised capital through preferential allotments of equity shares.

The audited financial results record multiple preferential allotments during FY26 at different issue prices, including allotments made in June, September, November and December 2025 and January 2026.

The Companys equity share capital increased from 6.04 crore as at 31st March 2025 to 8.21 crore as at 31^st March 2026 on the basis of the audited consolidated financial statements.

The funds raised during the year were utilised for the purposes stated in the relevant corporate and regulatory disclosures, including supporting the Companys business expansion and working-capital requirements.

14. OPPORTUNITIES

The Company sees several opportunities for future growth:

a. Growth in Indian E-commerce

Increasing digital adoption and consumer preference for online shopping provide a long-term opportunity for the Company.

b. Quick-Commerce Opportunity

The Companys two-hour delivery model provides an opportunity to differentiate itself through speed and convenience.

c. Own-Brand Expansion

Increasing the contribution of own brands can improve product differentiation, customer loyalty and long-term gross margins.

d. Category Expansion

Expansion into childrens products, home products, kitchen products and other lifestyle categories can increase customer share of wallet.

e. Omni-Channel Expansion

The combination of physical stores, warehouses and digital channels provides opportunities for greater customer reach and fulfilment efficiency.

f. International Markets

Australia and the newly established Dubai subsidiary provide platforms for exploring international growth opportunities.

g. Technology

Investment in technology, inventory management, logistics and customer analytics can improve operational efficiency and customer retention.

15. THREATS AND CHALLENGES

The Companys business is subject to various risks and uncertainties, including:

a. Intense Competition

The Company operates in a highly competitive environment comprising large e-commerce companies, marketplaces, quick-commerce platforms, beauty specialists and traditional retailers.

b. Margin Pressure

Marketplace commissions, discounting, customer acquisition costs and product procurement costs may adversely affect margins.

c. Inventory Risk

The Companys inventory-led model requires significant investment in stock. Slow-moving inventory, changing fashion trends, product obsolescence or inaccurate demand forecasting could affect profitability and cash flows.

d. Working Capital Risk

Rapid growth can increase working capital requirements. Effective management of receivables, inventories and payables remains critical.

e. Customer Acquisition Cost

The Companys growth strategy requires continued investment in marketing and customer acquisition. Any significant increase in customer acquisition cost may affect profitability.

f. Technology and Cybersecurity Risk

The Companys business is dependent on technology platforms, digital infrastructure and data security. System interruptions, cybersecurity incidents or data breaches could adversely affect operations and customer trust.

g. Regulatory Risk

Changes in e-commerce regulations, consumer protection requirements, taxation, data protection requirements and other applicable laws may affect the Companys operations. h. International Expansion Risk

International operations expose the Company to foreign exchange, regulatory, tax, market and operational risks in overseas jurisdictions.

15. RISK MANAGEMENT

The Company has established processes for identifying and monitoring risks associated with its business operations.

Key areas of risk monitoring include:

Inventory management;

Working capital management;

Vendor and supplier management;

Customer credit and receivables;

Technology and cybersecurity;

Regulatory compliance;

Financial reporting;

Operational controls;

Brand and reputation management; and

International operations.

The Company continues to strengthen its internal systems and processes as the scale of operations increases.

The Companys management and Board regularly review material business and financial risks and take appropriate measures to mitigate such risks.

16. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company maintains internal financial controls designed to provide reasonable assurance regarding the reliability of financial reporting, safeguarding of assets, prevention and detection of fraud and errors, accuracy and completeness of accounting records and compliance with applicable policies and procedures.

The statutory auditors, M/s KRA & Co., Chartered Accountants, issued an unmodified audit opinion on the audited consolidated financial statements for FY26.

The auditors also reported that, in all material respects, the Company and applicable subsidiaries had adequate internal financial controls over financial reporting and that such controls were operating effectively as at 31^st March 2026.

The Company continues to strengthen its control environment in line with its expanding business operations, increased transaction volumes and growing geographic footprint.

17. HUMAN RESOURCES

People remain an important component of the Companys growth strategy.

The expansion of the Companys digital platform, stores, warehouses, technology operations, customer service functions and international operations requires a capable workforce with expertise across retail, e-commerce, supply chain, technology, marketing and customer experience.

Employee benefit expenses increased from 2.86 crore in FY25 to 3.55 crore in FY26, reflecting the Companys continued investment in human resources and organisational capabilities.

The Company remains focused on building a performance-oriented culture, strengthening employee capabilities and developing a workforce aligned with its growth objectives.

18. MARKETING AND CUSTOMER ENGAGEMENT

The Company continued to invest in customer acquisition, brand building and digital marketing during FY26.

Marketing initiatives included influencer marketing, social media engagement and digital customer acquisition.

The Company reported approximately 20,000 Facebook followers and 38,800 Instagram followers in its FY26 investor presentation, with marketing expenditure of approximately 42 lakh per month including influencer marketing.

The Companys strategy is increasingly focused not only on customer acquisition but also on improving repeat purchases, customer engagement and lifetime customer value.

19. SEASONALITY OF BUSINESS

The Companys business is influenced by seasonal demand patterns, particularly festive periods, wedding seasons and other high-consumption periods.

Demand can vary significantly across quarters depending upon festivals, weddings, promotional campaigns and consumer spending patterns.

Accordingly, quarterly financial performance may not necessarily be indicative of the full-year performance.

The Company intends to leverage its expanded inventory, wider SKU portfolio, enhanced fulfilment infrastructure and stronger customer base to capture seasonal demand.

20. OUTLOOK

The Company remains focused on sustainable and disciplined growth.

Key priorities for the coming period include:

1. Expanding the quick-delivery model into additional cities;

2. Increasing the contribution of own brands;

3. Strengthening the Womancart LUXE proposition;

4. Expanding the product assortment;

5. Improving inventory and working-capital efficiency;

6. Increasing repeat customer purchases;

7. Investing in technology and logistics;

8. Expanding international operations selectively; and

9. Improving operating margins through a better product and own-brand mix.

The Company believes that its combination of technology, omni-channel presence, broad product assortment, own brands and fulfilment capabilities provides a strong foundation for future growth.

21. KEY PERFORMANCE INDICATORS

The Company monitors various operating and financial indicators to evaluate business performance, including:

- Revenue growth;

- Gross profit and gross margin; - EBITDA and EBITDA margin; - Profit before tax; - Profit after tax; - Number of SKUs; - Order volumes; - Average order value; - Inventory turnover; - Customer acquisition; - Repeat customer rate; - Return rate; - Own-brand contribution; - Store and warehouse expansion; and - Cash conversion and working capital.

During FY26, the Companys revenue growth and EBITDA growth remained strong, although margins were impacted by the higher marketplace contribution, customer acquisition investments and cost pressures.

22. MATERIAL DEVELOPMENTS DURING FY26

During FY26, the Company undertook several strategic initiatives, including:

- Expansion of the product portfolio to more than 31,350 SKUs; - Expansion of the own-brand portfolio to 9 brands; - Launch of Blluex Junior; - Expansion of the retail and warehouse network; - Development of the two-hour delivery model; - Expansion into Australia; - Incorporation of a Dubai-based wholly owned subsidiary; - Continued investment in technology; - Strengthening of the Companys omni-channel model; and - Capital raising through preferential allotments.

These initiatives were undertaken with the objective of building a scalable and diversified business platform.

23. FUTURE STRATEGY

The Companys future strategy is based on five principal pillars:

1. Scale

Expand customer reach, product assortment and geographical presence.

2. Speed

Build the quick-commerce proposition and improve delivery capabilities.

3. Own Brands

Increase the contribution of own brands to improve differentiation and margins.

4. Technology

Use technology to improve customer experience, inventory management, fulfilment and operational efficiency.

5. Profitability

Focus on improving gross margins, operating leverage, customer retention and cash conversion while maintaining disciplined growth.

25. CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis Report describing the Companys objectives, expectations, estimates or predictions may constitute "forward-looking statements" within the meaning of applicable securities laws and regulations.

Such statements are based on certain assumptions and expectations of future events and are subject to risks, uncertainties and other factors that may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements.

These factors include, among others, changes in economic conditions, consumer demand, competition, regulatory developments, technology risks, input costs, foreign exchange movements, working capital requirements, market conditions and other risks applicable to the Companys business.

The Company assumes no obligation to publicly update or revise any forward-looking statements based on subsequent events or developments, except as may be required under applicable laws and regulations.

26. MANAGEMENTS OVERALL ASSESSMENT

FY 2025-26 was a year of significant scale-up for Womancart Limited.

The Company more than doubled its consolidated revenue to 133.69 crore, while EBITDA increased to 17.87 crore. The Companys growth was supported by higher order volumes, a broader product portfolio, deeper market penetration, expansion of its omni-channel network and continued investments in technology and infrastructure.

The year also involved substantial investment in inventory and working capital to support the Companys growth and seasonal demand requirements. While these investments resulted in increased working capital requirements and margin pressure, they were undertaken with the objective of strengthening the Companys long-term operating platform.

Going forward, managements focus will be on balancing growth with profitability, increasing the contribution of own brands, improving inventory and cash-flow efficiency, strengthening customer retention and expanding the Companys quick-commerce and omni-channel presence.

The Company believes that its evolving business model, technology capabilities, diversified product portfolio, own brands and expanding customer base provide a strong foundation for sustainable long-term growth.