Quarterly Report

Q2 2026 (Apr–Jun 2026) · each company's own fiscal quarter shown beside it · data as of 2026-09-30

Actuals from each company's MIS. AOP = the company's annual operating plan; VP = Kestrel's investment case. Chips compare the actual with the AOP for the same months.

Hearthly

Home interiors platform · India · Kestrel Fund I

Q2 2026Q1 FY27FY ends 31 Mar · latest MIS Aug'26

Net revenue
₹262.9 Cr
Q1 FY27
Behind−3.6% vs AOP
YoY growth
+31.9%
vs Q1 FY26
BehindAOP implied +36.8%
EBITDA margin
2.9%
Q1 FY27
Behind−3.5pp vs AOP
Cash balance
₹581.3 Cr
at Jun 26
Behind−1.6% vs AOP

1Investment snapshot

Company overview

  • Hearthly is a home interiors platform: design, modular kitchens and wardrobes, and full-home renovation, sold through experience centres and online
    • Founded in 2015 in Bengaluru by a designer and a former construction-projects lead
  • 51 experience centres; 3,894 orders and ₹330.2 Cr GMV booked in the quarter
    • As reported for Q1 FY27
  • Kestrel first invested in Sep-21 (initial investment)
    • Kestrel Fund I: 2 rounds, $17.5M from the fund and $6.5M arranged co-investment

Funding details

US$ M
RoundDateFundCo-investTotal
Initial investmentSep-21$12.0M$4.9M$16.9M
Follow-on investmentMar-23$5.5M$1.6M$7.1M
Total$17.5M$6.5M$24.0M

Summary cap table

% holding, fully diluted
Founders16.5%
ESOP6.2%
Alderwick Growth13.4%
Kestrel Fund I2.9%
Kestrel co-investors1.1%
Other institutional investors59.9%

Investment details

Board representationMaya Raman (director); Rohan Kapoor (observer)
InstrumentSeries E CCPS; Equity shares; Series F CCPS
RightsBoard seat, information rights and standard minority protections
Entry valuation$610M
Current valuation (2026-06)$1012M Dec 25: Independent valuation, anchoring to Oct 24 round led by Alderwick Growth
Kestrel cost / fair value$17.5M / $28.4M · 1.62x
DistributionsNA
Fundraising updates
  • Two inbound approaches from strategic investors during the quarter; the company has not engaged beyond introductory calls
  • No capital need in the next eighteen months at the current burn; any round would fund the factory expansion

2Quarterly snapshot

Financial updates

  • Net revenue of ₹262.9 Cr ($29.7M) in Q1 FY27, up 31.9% YoY and 3.6% behind AOP
    • Annualised run-rate of $118.7M
    • Against Kestrel's investment case (VP) revenue is 10.6% behind
    • Orders booked up 27.8% YoY to 3,894
  • Gross margin of 41.2%, up 2.4pp on Q1 FY26
    • Gross margin is 1.9pp below AOP's 43.1%
  • EBITDA of ₹7.74 Cr, a 2.9% margin (−3.7% in Q1 FY26)
    • EBITDA margin is 3.5pp below AOP's 6.4%
    • Against Kestrel's investment case: 8.1pp below VP's 11.0%

Strategic updates

  • The kitchen-only product, launched in the spring, carries a lower order value but executes faster
    • Design-to-site handover time came down again during the quarter; the modular factory line is now running two shifts
    • Referral share of new projects is the highest on record, which is keeping acquisition cost per order flat
  • A second modular factory shift was added to keep lead times flat as order volumes rise

Financial snapshot

US$ M · actuals unless marked Budget (AOP)
$MFY25FY26Q1 FY26Q1 FY27FY27 YTDBudget FY27
Orders booked11,45714,5833,0483,8943,89419,255
Net revenue80.0108.222.529.729.7148.3
Growth (YoY)36.3%35.2%40.3%31.9%31.9%37.1%
Gross margin38.5%40.1%38.7%41.2%41.2%43.5%
EBITDA(4.9)0.6(0.8)0.90.913.9
EBITDA margin(6.1%)0.6%(3.7%)2.9%2.9%9.4%

Kestrel initiatives and outlook

  • Kestrel introduced two procurement leads from the portfolio network to renegotiate board-supplier contracts
    • Receivables on the commercial book have crept up; Elena Cruz is reviewing collections with the finance team
Outlook for Q2 FY27
  • AOP calls for net revenue of ₹317.8 Cr in Q2 FY27, up 20.9% on Q1 FY27 and up 39.8% on Q2 FY26
    • Jul–Aug 2026 (2 of 3 months, actual): net revenue ₹195.7 Cr, 4.7% behind AOP for the same months
  • Margins are well short of the investment case even as growth runs ahead; the board has asked for a bridge from today's EBITDA to the VP
    • Execution quality as volumes rise: the escalation rate is the number to watch

3Financial metrics

Commentary

  • Net revenue up 85.1% over two years (Q1 FY25 to Q1 FY27)
    • Q1 FY27 annualised run-rate $118.7M, up 31.9% YoY
  • Gross margin between 38.0% and 41.2% across the 9 quarters shown; 41.2% this quarter
  • EBITDA margin positive in 3 of the 9 complete quarters shown
    • Q1 FY27: 2.9% against −3.7% a year earlier

Net revenue and orders booked

₹ Cr · by fiscal quarter
Net revenue by period with the AOP and Orders booked010020030002,0004,0006,000Q1 FY25Q3 FY25Q1 FY26Q3 FY26Q1 FY27
Net revenue (actual)AOPOrders booked (right axis)Hover a period for its figures

Gross margin

% of net revenue
Gross margin by period0%20%40%60%Q1 FY25Q3 FY25Q1 FY26Q3 FY26Q1 FY27
Gross marginHover a period for its figures

EBITDA margin

% of net revenue
EBITDA margin by period−15%−10%−5%0%5%Q1 FY25Q3 FY25Q1 FY26Q3 FY26Q1 FY27
EBITDA marginHover a period for its figures

4Operational metrics

Commentary

  • Closing cash of ₹581.3 Cr at Jun 26, up ₹4.89 Cr over the quarter
    • Net cash flow of ₹4.89 Cr in the quarter (change in closing cash; derived)
    • Cash is 1.6% behind AOP
  • Marketing at 9.0% of revenue (Performance Marketing + Brand Marketing)
    • 0.7pp lower than Q1 FY26's 9.6%
  • Corporate overheads at 13.3% of revenue
    • 2.8pp lower than Q1 FY26's 16.1%

Cash balance

₹ Cr · month end
Closing cash balance and net cash flow0200400600−4−20246Jul 25Oct 25Jan 26Apr 26Jul 26Aug 26
Closing cashNet cash flow (month) (right axis)Hover a period for its figures

Cost ratios

% of net revenue, from the MIS P&L
Marketing and overheads as a share of revenue0%10%20%30%Q1 FY25Q3 FY25Q1 FY26Q3 FY26Q1 FY27
Marketing (Performance Marketing + Brand Marketing)Corporate overheads (Corporate Salaries + Technology + G&A)Hover a period for its figures

5Business performance overview

Key focuses
Experience centres
  • 51 experience centres at quarter end
    • +1 in the quarter
    • +5 on a year earlier
Bookings
  • GMV booked of ₹330.2 Cr; net revenue is 79.6% of GMV
    • up 32.3% YoY
  • Referral-led projects are a growing share of new orders, holding acquisition cost per order flat
FY27 YTD performance
  • FY27 YTD net revenue of ₹262.9 Cr, up 31.9% YoY, 3.6% behind AOP
    • Gross margin 41.2% (AOP 43.1%)
    • EBITDA ₹7.74 Cr, margin 2.9% (AOP 6.4%)
Outlook (FY27)
  • FY27 AOP net revenue of ₹1,314 Cr; 20.0% delivered after 3 months
    • The remaining 9 months need ₹350.5 Cr a quarter, up 33.3% on Q1 FY27
    • Kestrel's investment case (VP) assumes ₹1,440 Cr for FY27
Macro
  • Urban housing handovers in the company's core cities were steady through the quarter; renovation demand tracks completions with a lag
  • Input costs for boards and hardware are expected to rise next quarter; the company has price revisions ready if needed

6Historical financial performance

₹ CrQ1 FY26Q2 FY26Q3 FY26Q4 FY26FY26Q1 FY27FY27 YTD
Net Revenue199.3227.4265.3266.5958.4262.9262.9
Gross Profit77.290.7108.2107.7383.9108.2108.2
Gross Margin %38.7%39.9%40.8%40.4%40.1%41.2%41.2%
Contribution Margin49.159.471.871.6251.972.672.6
EBITDA(7.35)(0.64)7.136.385.527.747.74
EBITDA %(3.7%)(0.3%)2.7%2.4%0.6%2.9%2.9%
Profit Before Tax(13.4)(6.75)0.92(0.00)(19.2)1.261.26
PAT(13.4)(6.75)0.63(0.51)(20.0)0.930.93
Operating KPIs (own units)
Orders Booked3,0483,5024,0443,98914,5833,8943,894
Experience Centres46474850505151
  1. Fiscal year ends 31 March; Q1 FY27 = Apr–Jun 2026.
  2. Figures in ₹ Cr as filed in the MIS; $M figures converted at ₹88.6/US$ (the fund reporting rate) for every period, so growth in $M equals growth in rupees.
  3. Quarterly and annual figures are built from monthly MIS: flows summed, balances and counts at the period's last month, margins as summed numerator ÷ summed revenue — never an average of monthly percentages.
  4. AOP = the company's annual operating plan (Hearthly_AOP_FY27_Board_v3.xlsx); VP = Kestrel's investment-case model (Hearthly_Kestrel_InvestmentCase_v7.xlsx). Actuals from Hearthly_MIS_Aug26.xlsx.
  5. Net cash flow = month-on-month change in the closing cash balance (derived, not a filed cash-flow statement).
  6. Per-store and per-student averages are not restated to quarters and are left out of the P&L table.
  7. Cap table: fully diluted, as at Jun-26. Kestrel co-investors' stake = arranged co-investment at the fund's entry price.

Morrow Dairy

D2C dairy subscription · India · Kestrel Fund I

Q4 2025Q3 FY26FY ends 31 Mar · Oct–Dec 2025

Net revenue
₹428.7 Cr
Q3 FY26
Behind−9.4% vs AOP
YoY growth
+12.7%
vs Q3 FY25
BehindAOP implied +24.4%
EBIT margin
0.3%
Q3 FY26
Behind−6.4pp vs AOP
Cash balance
₹670.4 Cr
at Dec 25
Behind−9.6% vs AOP

1Investment snapshot

Company overview

  • Morrow Dairy runs a morning-delivery milk subscription with a cross-sell range of daily essentials, across three Indian cities
    • Founded in 2017 by two former dairy-cooperative managers
  • 5,76,738 active subscribers; 376 lakh litres sold in the quarter
    • As reported for Q3 FY26
  • Kestrel first invested in Dec-21 (initial investment)
    • Kestrel Fund I: 2 rounds, $24.0M from the fund and $9.5M arranged co-investment

Funding details

US$ M
RoundDateFundCo-investTotal
Initial investmentDec-21$16.4M$7.2M$23.6M
Follow-on investmentNov-23$7.6M$2.3M$9.9M
Total$24.0M$9.5M$33.5M

Summary cap table

% holding, fully diluted
Founders21.0%
ESOP5.5%
Kestrel Fund I4.4%
Kestrel co-investors1.7%
Other institutional investors67.4%

Investment details

Board representationDaniel Okafor (director); Priya Nair (observer)
InstrumentSeries D CCPS; Equity shares; Series E CCPS
RightsBoard seat, affirmative vote on budget and fundraising, ROFR and tag-along
Entry valuation$540M
Current valuation (2026-06)$532M Dec 25: Manager valuation - held at cost while operations are paused
Kestrel cost / fair value$24.0M / $24.0M · 1.00x
DistributionsNA
Fundraising updates
  • No new capital is being sought while the strategic options are reviewed

Dormant since the first quarter of 2026: the company paused deliveries in two of its three cities and has not filed management accounts since. The position is held at cost pending a restructuring plan.

2Quarterly snapshot

Financial updates

  • Net revenue of ₹428.7 Cr ($48.4M) in Q3 FY26, up 12.7% YoY and 9.4% behind AOP
    • Annualised run-rate of $193.5M
    • Against Kestrel's investment case (VP) revenue is 30.0% behind
    • Milk volume up 6.7% YoY to 376 lakh litres
  • Gross margin of 38.7%, up 0.1pp on Q3 FY25
    • Gross margin is 3.5pp below AOP's 42.2%
  • EBIT of ₹1.43 Cr, a 0.3% margin (−1.5% in Q3 FY25)
    • EBIT margin is 6.4pp below AOP's 6.7%
    • Against Kestrel's investment case: 9.3pp below VP's 9.7%

Strategic updates

  • Two micro-hubs were consolidated to cut last-mile cost; service levels dipped during the move
    • Subscriber churn remains elevated; the delivery-window change in two zones did not help retention
    • The company has paused new-city launches and frozen hiring
  • The company is exploring a strategic sale alongside the restructuring plan

Financial snapshot

US$ M · actuals unless marked Budget (AOP)
$MFY24FY25Q3 FY25Q3 FY26FY26 YTDBudget FY26
Milk volume (lakh L)1,2361,3663523761,0841,596
Net revenue137.8164.142.948.4137.3204.8
Growth (YoY)–19.1%16.7%12.7%13.3%24.8%
Gross margin37.6%38.7%38.6%38.7%39.1%42.1%
EBIT(6.3)(2.6)(0.7)0.20.513.0
EBIT margin(4.5%)(1.6%)(1.5%)0.3%0.4%6.3%

Kestrel initiatives and outlook

  • Priya Nair is coordinating with the board on the strategic-sale process
Outlook for Q2 FY27
  • No AOP is on file for Q2 FY27; the outlook cannot be measured against a company plan
  • Every zone has to show a contribution-positive path before any growth spend resumes
    • Founder bandwidth is stretched across operations and the sale process

3Financial metrics

Commentary

  • Net revenue up 31.5% over two years (Q3 FY24 to Q3 FY26)
    • Q3 FY26 annualised run-rate $193.5M, up 12.7% YoY
  • Gross margin between 37.2% and 39.6% across the 9 quarters shown; 38.7% this quarter
  • EBIT margin positive in 3 of the 9 complete quarters shown
    • Q3 FY26: 0.3% against −1.5% a year earlier

Net revenue and milk volume (lakh l)

₹ Cr · by fiscal quarter
Net revenue by period with the AOP and Milk volume (lakh L)02004006000100200300400Q3 FY24Q1 FY25Q3 FY25Q1 FY26Q3 FY26
Net revenue (actual)AOPMilk volume (lakh L) (right axis)Hover a period for its figures

Gross margin

% of net revenue
Gross margin by period0%10%20%30%40%Q3 FY24Q1 FY25Q3 FY25Q1 FY26Q3 FY26
Gross marginHover a period for its figures

EBIT margin

% of net revenue
EBIT margin by period−6%−4%−2%0%2%Q3 FY24Q1 FY25Q3 FY25Q1 FY26Q3 FY26
EBIT marginHover a period for its figures

4Operational metrics

Commentary

  • Closing cash of ₹670.4 Cr at Dec 25, down ₹1.92 Cr over the quarter
    • Net cash flow of −₹1.92 Cr in the quarter (change in closing cash; derived)
    • Cash is 9.6% behind AOP
  • Marketing at 6.5% of revenue (Less: Marketing)
    • 0.6pp lower than Q3 FY25's 7.1%
  • HQ costs at 7.4% of revenue
    • 0.5pp lower than Q3 FY25's 7.8%

Cash balance

₹ Cr · month end
Closing cash balance and net cash flow0200400600800−3−2−101Jan 25Mar 25May 25Jul 25Sep 25Nov 25Dec 25
Closing cashNet cash flow (month) (right axis)Hover a period for its figures

Cost ratios

% of net revenue, from the MIS P&L
Marketing and overheads as a share of revenue0%5%10%Q3 FY24Q1 FY25Q3 FY25Q1 FY26Q3 FY26
Marketing (Less: Marketing)HQ costs (Less: HQ Costs)Hover a period for its figures

5Business performance overview

Key focuses
Milk subscriptions
  • Milk revenue of ₹300.9 Cr, 70.2% of net revenue (72.6% a year earlier)
    • up 9.0% YoY
  • 5,76,738 active subscribers at quarter end
    • +17,825 in the quarter
    • +38,559 on a year earlier
Cross-sell
  • Cross-sell revenue of ₹150.3 Cr, 35.1% of net revenue (33.6% a year earlier)
    • up 17.7% YoY
  • Segment shares are of net revenue, which is after discounts and promotions, so milk and cross-sell together exceed 100%
FY26 YTD performance
  • FY26 YTD net revenue of ₹1,216 Cr, up 13.3% YoY, 10.1% behind AOP
    • Gross margin 39.1% (AOP 42.0%)
    • EBIT ₹4.43 Cr, margin 0.4% (AOP 6.1%)
Outlook (FY26)
  • FY26 AOP net revenue of ₹1,815 Cr; 67.0% delivered after 9 months
    • The remaining 3 months need ₹598.3 Cr a quarter, up 39.6% on Q3 FY26
    • Kestrel's investment case (VP) assumes ₹2,290 Cr for FY26
Macro
  • Milk procurement prices rose seasonally and were only partly passed on to subscribers

6Historical financial performance

₹ CrQ1 FY25Q2 FY25Q3 FY25Q4 FY25FY25Q1 FY26Q2 FY26Q3 FY26FY26 YTD
Net Revenue328.1365.1380.3380.71,454380.9407.0428.71,216
Gross Profit124.8143.1146.8147.5562.1150.7159.4166.1476.1
Gross Margin %38.0%39.2%38.6%38.7%38.7%39.6%39.2%38.7%39.1%
Contribution Margin 1 (CM1)47.758.258.660.4225.064.767.769.0201.4
Contribution Margin 2 (CM2)25.333.631.835.1125.739.141.341.2121.7
EBIT(10.8)(3.30)(5.86)(2.87)(22.8)1.041.961.434.43
EBIT Margin %(3.3%)(0.9%)(1.5%)(0.8%)(1.6%)0.3%0.5%0.3%0.4%
Net Income(14.1)(6.59)(9.12)(6.23)(36.0)(2.28)(1.39)(1.90)(5.57)
Operating KPIs (own units)
Active Subscribers4,56,7725,19,3125,38,1795,31,0365,31,0365,29,8195,58,9135,76,7385,76,738
Litres Sold (lakh L)3173493523481,3663463623761,084
  1. Fiscal year ends 31 March; Q1 FY27 = Apr–Jun 2026.
  2. Figures in ₹ Cr as filed in the MIS; $M figures converted at ₹88.6/US$ (the fund reporting rate) for every period, so growth in $M equals growth in rupees.
  3. Quarterly and annual figures are built from monthly MIS: flows summed, balances and counts at the period's last month, margins as summed numerator ÷ summed revenue — never an average of monthly percentages.
  4. AOP = the company's annual operating plan (MorrowDairy_AOP_FY26_final.xlsx); VP = Kestrel's investment-case model (Morrow_Kestrel_Model_IC_v12.xlsx). Actuals from Morrow_Dairy_MIS_Feb26.xlsx.
  5. Net cash flow = month-on-month change in the closing cash balance (derived, not a filed cash-flow statement).
  6. Morrow Dairy reports EBIT, not EBITDA; profit rows show EBIT.
  7. Per-store and per-student averages are not restated to quarters and are left out of the P&L table.
  8. Cap table: fully diluted, as at Jun-26. Kestrel co-investors' stake = arranged co-investment at the fund's entry price.

Orchard & Oak

Premium dry fruits & snacks · India · Kestrel Fund I

Q2 2026Q1 FY27FY ends 31 Mar · latest MIS Aug'26

Net revenue
₹3,217 mn
Q1 FY27
Ahead+1.2% vs AOP
YoY growth
+22.6%
vs Q1 FY26
AheadAOP implied +21.2%
EBITDA margin
7.0%
Q1 FY27
Ahead+1.5pp vs AOP
Cash balance
₹3,415 mn
at Jun 26
In line+0.3% vs AOP

1Investment snapshot

Company overview

  • Orchard & Oak sells premium dry fruits, nuts and snacks through its own stores, modern trade, its website and the quick-commerce apps
    • Founded in 2014 as a single gifting store; now a national brand
  • 3,530 tonnes sold in the quarter across stores, modern trade, online and quick-commerce
    • As reported for Q1 FY27
  • Kestrel first invested in Jul-22 (initial investment)
    • Kestrel Fund I: 2 rounds, $14.0M from the fund and $4.2M arranged co-investment

Funding details

US$ M
RoundDateFundCo-investTotal
Initial investmentJul-22$9.5M$3.0M$12.5M
Follow-on investmentSep-24$4.5M$1.2M$5.7M
Total$14.0M$4.2M$18.2M

Summary cap table

% holding, fully diluted
Founders38.2%
ESOP7.0%
Kestrel Fund I11.8%
Kestrel co-investors3.5%
Other institutional investors39.5%

Investment details

Board representationPriya Nair (director); Arjun Mehta (observer)
InstrumentSeries A CCPS; Equity shares; Series A1 CCPS
RightsBoard seat, information rights, pre-emption and anti-dilution
Entry valuation$118M
Current valuation (2026-06)$157M Dec 25: Independent valuation, revenue multiple on FY26 run-rate
Kestrel cost / fair value$14.0M / $18.3M · 1.31x
DistributionsNA
Fundraising updates
  • Management is considering a working-capital line for festive-season inventory; Arjun Mehta is reviewing terms

2Quarterly snapshot

Financial updates

  • Net revenue of ₹3,217 mn ($36.3M) in Q1 FY27, up 22.6% YoY and 1.2% ahead of AOP
    • Annualised run-rate of $145.3M
    • Against Kestrel's investment case (VP) revenue is 6.9% behind
    • Volume sold up 19.6% YoY to 3,530 tonnes
  • Gross margin of 23.6%, up 0.3pp on Q1 FY26
    • Gross margin is 1.1pp above AOP's 22.4%
  • EBITDA of ₹226.6 mn, a 7.0% margin (6.3% in Q1 FY26)
    • EBITDA margin is 1.5pp above AOP's 5.5%
    • Against Kestrel's investment case: 4.7pp below VP's 11.7%

Strategic updates

  • Cashew and almond sourcing contracts were renewed for the year at slightly lower prices
    • Two new airport stores opened; early sales density is well above the network average
    • Quick-commerce keeps growing faster than the website and modern trade
  • The private-label trail-mix range is now listed in every store and on the two largest quick-commerce apps

Financial snapshot

US$ M · actuals unless marked Budget (AOP)
$MFY25FY26Q1 FY26Q1 FY27FY27 YTDBudget FY27
Volume sold (tonnes)11,78614,1522,9523,5303,53016,545
Net revenue115.9143.629.636.336.3172.8
Growth (YoY)22.7%23.9%22.3%22.6%22.6%20.3%
Gross margin23.6%23.7%23.2%23.6%23.6%22.8%
EBITDA8.511.51.92.62.612.0
EBITDA margin7.3%8.0%6.3%7.0%7.0%7.0%

Kestrel initiatives and outlook

  • Kestrel is helping recruit a head of supply chain from its consumer network
    • Management is considering a working-capital line for festive-season inventory; Arjun Mehta is reviewing terms
Outlook for Q2 FY27
  • AOP calls for net revenue of ₹3,709 mn in Q2 FY27, up 15.3% on Q1 FY27 and up 20.8% on Q2 FY26
    • Jul–Aug 2026 (2 of 3 months, actual): net revenue ₹2,438 mn, 1.6% ahead of AOP for the same months
  • The business is ahead of its own AOP but behind the investment case; the gap is mostly margin
    • Competitor discounting online is pressuring price points on core SKUs

3Financial metrics

Commentary

  • Net revenue up 50.0% over two years (Q1 FY25 to Q1 FY27)
    • Q1 FY27 annualised run-rate $145.3M, up 22.6% YoY
  • Gross margin between 23.2% and 24.4% across the 9 quarters shown; 23.6% this quarter
  • EBITDA margin positive in 9 of the 9 complete quarters shown
    • Q1 FY27: 7.0% against 6.3% a year earlier

Net revenue and volume sold (tonnes)

₹ mn · by fiscal quarter
Net revenue by period with the AOP and Volume sold (tonnes)02,0004,0006,00002,0004,0006,000Q1 FY25Q3 FY25Q1 FY26Q3 FY26Q1 FY27
Net revenue (actual)AOPVolume sold (tonnes) (right axis)Hover a period for its figures

Gross margin

% of net revenue
Gross margin by period0%10%20%30%Q1 FY25Q3 FY25Q1 FY26Q3 FY26Q1 FY27
Gross marginHover a period for its figures

EBITDA margin

% of net revenue
EBITDA margin by period0%5%10%Q1 FY25Q3 FY25Q1 FY26Q3 FY26Q1 FY27
EBITDA marginHover a period for its figures

4Operational metrics

Commentary

  • Closing cash of ₹3,415 mn at Jun 26, up ₹110.4 mn over the quarter
    • Net cash flow of ₹110.4 mn in the quarter (change in closing cash; derived)
    • Cash is 0.3% ahead of AOP
  • Marketing at 2.8% of revenue (Performance Marketing)
    • 0.3pp higher than Q1 FY26's 2.5%
  • Employee and other expenses at 9.5% of revenue
    • 0.7pp lower than Q1 FY26's 10.2%

Cash balance

₹ mn · month end
Closing cash balance and net cash flow01,0002,0003,0004,000050100Jul 25Oct 25Jan 26Apr 26Jul 26Aug 26
Closing cashNet cash flow (month) (right axis)Hover a period for its figures

Cost ratios

% of net revenue, from the MIS P&L
Marketing and overheads as a share of revenue0%5%10%15%Q1 FY25Q3 FY25Q1 FY26Q3 FY26Q1 FY27
Marketing (Performance Marketing)Employee and other expenses (Employee Expenses + Other Expenses)Hover a period for its figures

5Business performance overview

Key focuses
Branded retail
  • Branded revenue of ₹1,970 mn, 61.2% of net revenue (56.7% a year earlier)
    • up 32.4% YoY
Quick-commerce
  • Quick-commerce revenue of ₹641.1 mn, 19.9% of net revenue (15.4% a year earlier)
    • up 58.2% YoY
  • Competitor discounting online kept pressure on price points for core SKUs
FY27 YTD performance
  • FY27 YTD net revenue of ₹3,217 mn, up 22.6% YoY, 1.2% ahead of AOP
    • Gross margin 23.6% (AOP 22.4%)
    • EBITDA ₹226.6 mn, margin 7.0% (AOP 5.5%)
Outlook (FY27)
  • FY27 AOP net revenue of ₹15,309 mn; 21.0% delivered after 3 months
    • The remaining 9 months need ₹4,030 mn a quarter, up 25.3% on Q1 FY27
    • Kestrel's investment case (VP) assumes ₹16,881 mn for FY27
Macro
  • Competitor discounting online kept pressure on price points for core SKUs
  • Quick-commerce continues to take share from modern trade in the metro markets

6Historical financial performance

₹ mnQ1 FY26Q2 FY26Q3 FY26Q4 FY26FY26Q1 FY27FY27 YTD
Total Revenue2,6243,0693,9853,05012,7273,2173,217
Gross Profit609.3722.2938.4743.63,014758.3758.3
Gross Margin %23.2%23.5%23.6%24.4%23.7%23.6%23.6%
EBITDA164.9238.4378.9237.01,019226.6226.6
EBITDA %6.3%7.8%9.5%7.8%8.0%7.0%7.0%
Profit Before Tax113.4185.4325.3182.2806.3171.3171.3
Operating KPIs (own units)
Volume Sold (tonnes)2,9523,4294,4273,34514,1523,5303,530
  1. Fiscal year ends 31 March; Q1 FY27 = Apr–Jun 2026.
  2. Figures in ₹ mn as filed in the MIS; $M figures converted at ₹88.6/US$ (the fund reporting rate) for every period, so growth in $M equals growth in rupees.
  3. Quarterly and annual figures are built from monthly MIS: flows summed, balances and counts at the period's last month, margins as summed numerator ÷ summed revenue — never an average of monthly percentages.
  4. AOP = the company's annual operating plan (OrchardOak_AOP_FY27_BoardApproved.xlsx); VP = Kestrel's investment-case model (OrchardOak_Kestrel_Model_IC_final.xlsx). Actuals from OrchardOak_Monthly_MIS_Aug26.xlsx.
  5. Net cash flow = month-on-month change in the closing cash balance (derived, not a filed cash-flow statement).
  6. Per-store and per-student averages are not restated to quarters and are left out of the P&L table.
  7. Cap table: fully diluted, as at Jun-26. Kestrel co-investors' stake = arranged co-investment at the fund's entry price.

Tidewave Brands

Creator-led beauty brand house · US / India · Kestrel Fund I

Q2 2026Q1 FY27FY ends 31 Mar · latest MIS Aug'26

Net revenue
$6.70 mn
Q1 FY27
No AOP for this period
YoY growth
−22.2%
vs Q1 FY26
No AOP for this period
EBITDA margin
−24.5%
Q1 FY27
No AOP for this period
Cash balance
$3.98 mn
at Jun 26
No AOP for this period

1Investment snapshot

Company overview

  • Tidewave Brands is a creator-led beauty and personal-care brand house selling in India, the United States and the Middle East
    • Founded in 2019; incubates beauty brands with creators who hold a revenue share
  • 97 active creators across the brand portfolio at quarter end
    • As reported for Q1 FY27
  • Kestrel first invested in Mar-22 (initial investment)
    • Kestrel Fund I: 4 rounds, $21.0M from the fund and $5.4M arranged co-investment

Funding details

US$ M
RoundDateFundCo-investTotal
Initial investmentMar-22$12.0M$3.6M$15.6M
Follow-on investmentNov-22$4.0M$1.0M$5.0M
Follow-on investmentAug-23$3.0M$0.8M$3.8M
ConvertibleOct-25$2.0M–$2.0M
Total$21.0M$5.4M$26.4M

Summary cap table

% holding, fully diluted
Founders24.0%
ESOP8.5%
Kestrel Fund I14.8%
Kestrel co-investors3.8%
Other institutional investors48.9%

Investment details

Board representationDaniel Okafor (director); Vikram Shah (observer)
InstrumentSeries B Preferred; Series B-1 Preferred; Convertible note
RightsBoard seat, liquidation preference, protective provisions on new debt and asset sales
Entry valuation$142M
Current valuation (2026-06)$61M Jun 26: Manager valuation - written down on the revised FY27 plan
Kestrel cost / fair value$21.0M / $8.8M · 0.42x
DistributionsNA
Fundraising updates
  • The board has asked for a restructuring plan before any bridge is agreed

Marked down for the fourth year running. Two of the five brands were discontinued in the first half of 2026 and the October 2025 convertible was a bridge, not a priced round. Held in preference shares, which is why the mark sits above a pro-rata share of the post-money value.

2Quarterly snapshot

Financial updates

  • Net revenue of $6.70 mn in Q1 FY27, down 22.2% YoY; no AOP is on file for the period
    • Annualised run-rate of $26.8M
    • Against Kestrel's investment case (VP) revenue is 74.7% behind
    • Active creators: 97 at quarter end, −13 on a year earlier
  • Gross margin of 59.9%, down 1.5pp on Q1 FY26
  • EBITDA loss of $1.64 mn, a −24.5% margin (−16.5% in Q1 FY26)
    • Against Kestrel's investment case: 33.8pp below VP's 9.3%

Strategic updates

  • Two creator contracts are being renegotiated to a lower revenue share; one brand will be wound down
    • Revenue is below last year as the two oldest brands lose shelf space; the US retail pilot has been paused
    • Inventory is being cleared through outlet channels at a discount to release cash
  • Two of the five brands are being discontinued; the cost base is being cut to the remaining three

Financial snapshot

US$ M · actuals unless marked Budget (AOP)
$MFY25FY26Q1 FY26Q1 FY27FY27 YTDBudget FY27
Active creators1121011109797–
Net revenue39.333.68.66.76.7–
Growth (YoY)(0.2%)(14.6%)(8.7%)(22.2%)(22.2%)–
Gross margin62.2%60.7%61.4%59.9%59.9%–
EBITDA(4.7)(5.8)(1.4)(1.6)(1.6)–
EBITDA margin(12.1%)(17.3%)(16.5%)(24.5%)(24.5%)–

No FY27 AOP on file — the latest AOP is the prior year's workbook; the budget column is blank rather than estimated.

Kestrel initiatives and outlook

  • The board has asked for a restructuring plan before any bridge is agreed; Vikram Shah is reviewing the cash forecast weekly
Outlook for Q2 FY27
  • No AOP is on file for Q2 FY27; the outlook cannot be measured against a company plan
    • Jul–Aug 2026 (2 of 3 months, actual): net revenue $4.67 mn
  • EBITDA is deeply negative against a positive investment case; the cost base has to come down to the revenue
    • Concentration of revenue in the lead brand remains high

3Financial metrics

Commentary

  • Net revenue down 29.0% over two years (Q1 FY25 to Q1 FY27)
    • Q1 FY27 annualised run-rate $26.8M, down 22.2% YoY
  • Gross margin between 59.8% and 62.7% across the 9 quarters shown; 59.9% this quarter
  • EBITDA margin positive in 0 of the 9 complete quarters shown
    • Q1 FY27: −24.5% against −16.5% a year earlier

Net revenue and active creators

$ mn · by fiscal quarter
Net revenue by period with the AOP and Active creators051015050100150Q1 FY25Q3 FY25Q1 FY26Q3 FY26Q1 FY27
Net revenue (actual)AOPActive creators (right axis)Hover a period for its figures

Gross margin

% of net revenue
Gross margin by period0%20%40%60%80%Q1 FY25Q3 FY25Q1 FY26Q3 FY26Q1 FY27
Gross marginHover a period for its figures

EBITDA margin

% of net revenue
EBITDA margin by period−30%−20%−10%0%Q1 FY25Q3 FY25Q1 FY26Q3 FY26Q1 FY27
EBITDA marginHover a period for its figures

4Operational metrics

Commentary

  • Closing cash of $3.98 mn at Jun 26, down $1.66 mn over the quarter
    • Net cash flow of −$1.66 mn in the quarter (change in closing cash; derived)
    • At the quarter's average burn of $0.55 mn a month, cash covers about 7 months (derived, before any new funding)
  • Marketing at 24.6% of revenue (Creator & Performance Marketing + Brand Marketing)
    • 1.7pp lower than Q1 FY26's 26.3%
  • Corporate employee expenses and G&A at 26.6% of revenue
    • 4.9pp higher than Q1 FY26's 21.6%

Cash balance

$ mn · month end
Closing cash balance and net cash flow0510−0.70−0.60−0.50−0.40Jul 25Oct 25Jan 26Apr 26Jul 26Aug 26
Closing cashNet cash flow (month) (right axis)Hover a period for its figures

Cost ratios

% of net revenue, from the MIS P&L
Marketing and overheads as a share of revenue0%10%20%30%Q1 FY25Q3 FY25Q1 FY26Q3 FY26Q1 FY27
Marketing (Creator & Performance Marketing + Brand Marketing)Corporate employee expenses and G&A (Corporate Employee Expenses + G&A)Hover a period for its figures

5Business performance overview

Key focuses
India
  • India revenue of $3.31 mn, 49.3% of net revenue (46.6% a year earlier)
    • down 17.6% YoY
United States
  • US revenue of $2.44 mn, 36.4% of net revenue (37.2% a year earlier)
    • down 24.0% YoY
Middle East
  • Middle East revenue of $0.96 mn, 14.3% of revenue
    • down 31.4% YoY
FY27 YTD performance
  • FY27 YTD net revenue of $6.70 mn, down 22.2% YoY, no AOP for the period
    • Gross margin 59.9%
    • EBITDA −$1.64 mn, margin −24.5%
Outlook (FY27)
  • No FY27 AOP on file; the year cannot be measured against a company plan
    • Kestrel's investment case (VP) assumes $129.0 mn for FY27
Macro
  • Beauty demand online is intensely competitive; customer acquisition costs on the main ad platforms stayed high

6Historical financial performance

US$ mnQ1 FY26Q2 FY26Q3 FY26Q4 FY26FY26Q1 FY27FY27 YTD
Revenue8.628.598.767.6133.66.706.70
Gross Profit5.295.215.324.5520.44.014.01
Gross Margin %61.4%60.6%60.8%59.8%60.7%59.9%59.9%
Contribution Margin 13.403.293.382.8212.92.492.49
Contribution Margin 20.860.800.870.523.060.420.42
EBITDA(1.42)(1.43)(1.35)(1.60)(5.81)(1.64)(1.64)
EBITDA %(16.5%)(16.7%)(15.4%)(21.1%)(17.3%)(24.5%)(24.5%)
  1. Fiscal year ends 31 March; Q1 FY27 = Apr–Jun 2026.
  2. Figures in US$ mn as filed; Tidewave files in US dollars only.
  3. Quarterly and annual figures are built from monthly MIS: flows summed, balances and counts at the period's last month, margins as summed numerator ÷ summed revenue — never an average of monthly percentages.
  4. AOP = the company's annual operating plan (Tidewave_BusinessPlan_FY26_v4.xlsx); VP = Kestrel's investment-case model (Tidewave_Kestrel_Model_2023-07.xlsm). Actuals from Tidewave_MIS_Aug-26.xlsx.
  5. Net cash flow = month-on-month change in the closing cash balance (derived, not a filed cash-flow statement).
  6. The latest AOP on file is the prior fiscal year's workbook; periods it does not cover show no plan.
  7. Per-store and per-student averages are not restated to quarters and are left out of the P&L table.
  8. Cap table: fully diluted, as at Jun-26. Kestrel co-investors' stake = arranged co-investment at the fund's entry price.

Furrow Pet

Pet care omnichannel · India · Kestrel Fund II

Q2 2026Q1 FY27FY ends 31 Mar · latest MIS Aug'26

Net revenue
₹1,833 mn
Q1 FY27
Behind−3.2% vs AOP
YoY growth
+47.8%
vs Q1 FY26
BehindAOP implied +52.7%
EBITDA margin
−2.7%
Q1 FY27
Ahead+0.6pp vs AOP
Cash balance
₹1,861 mn
at Jun 26
Ahead+2.1% vs AOP

1Investment snapshot

Company overview

  • Furrow Pet sells pet food, pharmacy and accessories online and in its own stores, and runs veterinary clinics and grooming
    • Founded in 2018 as an online pet pharmacy; now online, in neighbourhood stores and in clinics
  • 9,70,483 product orders in the quarter, plus clinic and grooming services
    • As reported for Q1 FY27
  • Kestrel first invested in Nov-24 (initial investment)
    • Kestrel Fund II: 1 round, $8.5M from the fund and $3.0M arranged co-investment

Funding details

US$ M
RoundDateFundCo-investTotal
Initial investmentNov-24$8.5M$3.0M$11.5M
Total$8.5M$3.0M$11.5M

Summary cap table

% holding, fully diluted
Founders29.5%
ESOP9.0%
Kestrel Fund II9.7%
Kestrel co-investors3.4%
Other institutional investors48.4%

Investment details

Board representationPriya Nair (director); Rohan Kapoor (observer)
InstrumentSeries C CCPS; Equity shares
RightsBoard seat, information rights and standard minority protections
Entry valuation$88M
Current valuation (2026-06)$97M Dec 25: Independent valuation, anchoring to Nov 24 entry round
Kestrel cost / fair value$8.5M / $9.6M · 1.12x
DistributionsNA
Fundraising updates
  • Existing investors, including Kestrel Fund II, have indicated they will take their pro-rata
  • The company is preparing for its Series B in the next two quarters; Priya Nair is on the working group

2Quarterly snapshot

Financial updates

  • Net revenue of ₹1,833 mn ($20.7M) in Q1 FY27, up 47.8% YoY and 3.2% behind AOP
    • Annualised run-rate of $82.8M
    • Against Kestrel's investment case (VP) revenue is 3.8% behind
    • Product orders up 37.3% YoY to 9,70,483
  • Gross margin of 34.9%, up 1.7pp on Q1 FY26
    • Gross margin is 0.6pp above AOP's 34.3%
  • EBITDA loss of ₹49.4 mn, a −2.7% margin (−8.2% in Q1 FY26)
    • EBITDA margin is 0.6pp above AOP's −3.3%
    • Against Kestrel's investment case: 3.6pp below VP's 0.9%

Strategic updates

  • Grooming services were added to six stores; attach rate on store visits is encouraging
    • Private-label food keeps gaining share of food revenue at roughly twice the margin of third-party brands
    • Repeat orders remain the backbone of the business; the pharmacy subscription on the app is growing fastest

Financial snapshot

US$ M · actuals unless marked Budget (AOP)
$MFY25FY26Q1 FY26Q1 FY27FY27 YTDBudget FY27
Product orders ('000)2,2503,2987079709704,578
Net revenue43.467.714.020.720.7100.7
Growth (YoY)64.1%56.0%61.7%47.8%47.8%48.8%
Gross margin31.7%33.9%33.2%34.9%34.9%35.2%
EBITDA(5.1)(3.7)(1.1)(0.6)(0.6)(1.0)
EBITDA margin(11.8%)(5.5%)(8.2%)(2.7%)(2.7%)(1.0%)

Kestrel initiatives and outlook

  • Kestrel introduced two veterinary-hiring partners to ease the clinic staffing constraint
    • The company is preparing for its Series B in the next two quarters; Priya Nair is on the working group
Outlook for Q2 FY27
  • AOP calls for net revenue of ₹2,112 mn in Q2 FY27, up 15.2% on Q1 FY27 and up 50.5% on Q2 FY26
    • Jul–Aug 2026 (2 of 3 months, actual): net revenue ₹1,345 mn, 2.7% behind AOP for the same months
  • Store payback must stay inside the plan as the network grows
    • Hiring veterinarians for new clinics is the constraint on clinic growth

3Financial metrics

Commentary

  • Net revenue up 138.9% over two years (Q1 FY25 to Q1 FY27)
    • Q1 FY27 annualised run-rate $82.8M, up 47.8% YoY
  • Gross margin between 31.2% and 34.9% across the 9 quarters shown; 34.9% this quarter
  • EBITDA margin positive in 0 of the 9 complete quarters shown
    • Q1 FY27: −2.7% against −8.2% a year earlier

Net revenue and product orders

₹ mn · by fiscal quarter
Net revenue by period with the AOP and Product orders05001,0001,5002,0000500K1MQ1 FY25Q3 FY25Q1 FY26Q3 FY26Q1 FY27
Net revenue (actual)AOPProduct orders (right axis)Hover a period for its figures

Gross margin

% of net revenue
Gross margin by period0%10%20%30%40%Q1 FY25Q3 FY25Q1 FY26Q3 FY26Q1 FY27
Gross marginHover a period for its figures

EBITDA margin

% of net revenue
EBITDA margin by period−15%−10%−5%0%Q1 FY25Q3 FY25Q1 FY26Q3 FY26Q1 FY27
EBITDA marginHover a period for its figures

4Operational metrics

Commentary

  • Closing cash of ₹1,861 mn at Jun 26, down ₹54.0 mn over the quarter
    • Net cash flow of −₹54.0 mn in the quarter (change in closing cash; derived)
    • Cash is 2.1% ahead of AOP
  • Marketing at 12.6% of revenue (Performance Marketing + Brand Creation)
    • 1.7pp lower than Q1 FY26's 14.4%
  • Payroll and other overheads at 6.0% of revenue
    • 1.3pp lower than Q1 FY26's 7.3%

Cash balance

₹ mn · month end
Closing cash balance and net cash flow01,0002,0003,000−60−50−40−30−20−10Jul 25Oct 25Jan 26Apr 26Jul 26Aug 26
Closing cashNet cash flow (month) (right axis)Hover a period for its figures

Cost ratios

% of net revenue, from the MIS P&L
Marketing and overheads as a share of revenue0%5%10%15%20%Q1 FY25Q3 FY25Q1 FY26Q3 FY26Q1 FY27
Marketing (Performance Marketing + Brand Creation)Payroll and other overheads (Payroll + Other Overheads)Hover a period for its figures

5Business performance overview

Key focuses
Products
  • Product sales of ₹1,548 mn, 84.4% of net revenue (86.7% a year earlier)
    • up 43.8% YoY
Clinics & grooming
  • Clinic and grooming revenue of ₹198.4 mn, 10.8% of net revenue (8.9% a year earlier)
    • up 78.8% YoY
FY27 YTD performance
  • FY27 YTD net revenue of ₹1,833 mn, up 47.8% YoY, 3.2% behind AOP
    • Gross margin 34.9% (AOP 34.3%)
    • EBITDA −₹49.4 mn, margin −2.7% (AOP −3.3%)
Outlook (FY27)
  • FY27 AOP net revenue of ₹8,926 mn; 20.5% delivered after 3 months
    • The remaining 9 months need ₹2,364 mn a quarter, up 29.0% on Q1 FY27
    • Kestrel's investment case (VP) assumes ₹9,194 mn for FY27
Macro
  • Pet ownership in the metros keeps growing; premium food is the fastest-growing category

6Historical financial performance

₹ mnQ1 FY26Q2 FY26Q3 FY26Q4 FY26FY26Q1 FY27FY27 YTD
Net Revenue1,2411,4031,6521,7045,9991,8331,833
Gross Profit411.8467.3561.5592.52,033639.6639.6
Gross Margin %33.2%33.3%34.0%34.8%33.9%34.9%34.9%
Contribution Margin 1167.9195.0241.7269.7874.3292.9292.9
Contribution Margin 228.146.464.995.7235.1111.7111.7
EBITDA(101.5)(91.0)(81.3)(57.9)(331.6)(49.4)(49.4)
EBITDA %(8.2%)(6.5%)(4.9%)(3.4%)(5.5%)(2.7%)(2.7%)
PAT(117.0)(107.9)(99.1)(76.8)(400.7)(69.7)(69.7)
Operating KPIs (own units)
Product Orders7,06,7487,73,4479,04,4829,13,07632,97,7539,70,4839,70,483
  1. Fiscal year ends 31 March; Q1 FY27 = Apr–Jun 2026.
  2. Figures in ₹ mn as filed in the MIS; $M figures converted at ₹88.6/US$ (the fund reporting rate) for every period, so growth in $M equals growth in rupees.
  3. Quarterly and annual figures are built from monthly MIS: flows summed, balances and counts at the period's last month, margins as summed numerator ÷ summed revenue — never an average of monthly percentages.
  4. AOP = the company's annual operating plan (FurrowPet_AOP_FY27_v2.1.xlsx); VP = Kestrel's investment-case model (FurrowPet_Kestrel_FundII_Model_v9.xlsx). Actuals from FurrowPet_MIS_Aug'26.xlsx.
  5. Net cash flow = month-on-month change in the closing cash balance (derived, not a filed cash-flow statement).
  6. Per-store and per-student averages are not restated to quarters and are left out of the P&L table.
  7. Cap table: fully diluted, as at Jun-26. Kestrel co-investors' stake = arranged co-investment at the fund's entry price.

Lumen Jewels

Demi-fine jewellery · India · Kestrel Fund I

Q2 2026Q1 FY27FY ends 31 Mar · latest MIS Jul'26

Net revenue
₹59.2 Cr
Q1 FY27
Behind−7.0% vs AOP
YoY growth
+16.0%
vs Q1 FY26
BehindAOP implied +24.7%
EBITDA margin
14.2%
Q1 FY27
Behind−3.3pp vs AOP
Cash balance
₹204.1 Cr
at Jun 26
Behind−1.3% vs AOP
Reporting late. MIS received through Jul 26 (60 days old). Q1 FY27 is complete and reported in full. Q2 FY27 to date covers Jul 26 only (1 of 3); it appears in the monthly cash chart and the outlook, never as a quarter.

1Investment snapshot

Company overview

  • Lumen Jewels designs demi-fine jewellery sold online and through a growing network of mall stores
    • Founded in 2018 online; opened its first mall store in 2021
  • 44 mall stores; 2,27,064 pieces sold in the quarter
    • As reported for Q1 FY27
  • Kestrel first invested in Jun-23 (initial investment)
    • Kestrel Fund I: 1 round, $10.0M from the fund and $2.8M arranged co-investment

Funding details

US$ M
RoundDateFundCo-investTotal
Initial investmentJun-23$10.0M$2.8M$12.8M
Total$10.0M$2.8M$12.8M

Summary cap table

% holding, fully diluted
Founders45.0%
ESOP6.0%
Kestrel Fund I13.5%
Kestrel co-investors3.8%
Other institutional investors31.7%

Investment details

Board representationArjun Mehta (director)
InstrumentSeries A CCPS; Equity shares
RightsBoard seat, information rights, pre-emption
Entry valuation$74M
Current valuation (2026-06)$81M Dec 25: Independent valuation, anchoring to Feb 25 bridge round
Kestrel cost / fair value$10.0M / $10.8M · 1.08x
DistributionsNA
Fundraising updates
  • Management has been slow to share updated projections; Arjun Mehta has requested them before the next board

Quiet: the company has reported only quarterly since mid-2025 and the founders have not taken a board seat call since March.

2Quarterly snapshot

Financial updates

  • Net revenue of ₹59.2 Cr ($6.7M) in Q1 FY27, up 16.0% YoY and 7.0% behind AOP
    • Annualised run-rate of $26.7M
    • Against Kestrel's investment case (VP) revenue is 23.0% behind
    • Pieces sold up 12.9% YoY to 2,27,064
  • Gross margin of 59.3%, up 0.5pp on Q1 FY26
    • Gross margin is 1.3pp below AOP's 60.6%
  • EBITDA of ₹8.44 Cr, a 14.2% margin (12.0% in Q1 FY26)
    • EBITDA margin is 3.3pp below AOP's 17.6%
    • Against Kestrel's investment case: 6.4pp below VP's 20.6%

Strategic updates

  • Paid-social spend was reduced to protect cash; online sales are flat month on month
    • Store productivity in the two newest malls is below plan; a decision on relocation is due next quarter
    • Slow-moving designs are being melted and remade to bring inventory ageing down

Financial snapshot

US$ M · actuals unless marked Budget (AOP)
$MFY25FY26Q1 FY26Q1 FY27FY27 YTDBudget FY27
Pieces sold ('000)8189422012272271,141
Net revenue23.127.45.86.76.734.4
Growth (YoY)20.3%18.8%21.3%16.0%16.0%25.6%
Gross margin58.1%58.8%58.7%59.3%59.3%60.9%
EBITDA2.73.90.71.01.06.6
EBITDA margin11.7%14.1%12.0%14.2%14.2%19.2%

Kestrel initiatives and outlook

  • Elena Cruz is reviewing inventory ageing with the company's merchandising team
    • Management has been slow to share updated projections; Arjun Mehta has requested them before the next board
Outlook for Q2 FY27
  • AOP calls for net revenue of ₹71.3 Cr in Q2 FY27, up 20.3% on Q1 FY27 and up 27.0% on Q2 FY26
    • Jul 26 (1 of 3 months, actual): net revenue ₹20.1 Cr, 9.5% behind AOP for the same months
  • Inventory days are the main working-capital watch-out
    • Gold price movement is squeezing margins on the heavier pieces

3Financial metrics

Commentary

  • Net revenue up 40.8% over two years (Q1 FY25 to Q1 FY27)
    • Q1 FY27 annualised run-rate $26.7M, up 16.0% YoY
  • Gross margin between 57.8% and 59.3% across the 9 quarters shown; 59.3% this quarter
  • EBITDA margin positive in 9 of the 9 complete quarters shown
    • Q1 FY27: 14.2% against 12.0% a year earlier

Net revenue and pieces sold

₹ Cr · by fiscal quarter
Net revenue by period with the AOP and Pieces sold0204060800100K200K300KQ1 FY25Q3 FY25Q1 FY26Q3 FY26Q1 FY27
Net revenue (actual)AOPPieces sold (right axis)Hover a period for its figures

Gross margin

% of net revenue
Gross margin by period0%20%40%60%Q1 FY25Q3 FY25Q1 FY26Q3 FY26Q1 FY27
Gross marginHover a period for its figures

EBITDA margin

% of net revenue
EBITDA margin by period0%5%10%15%20%Q1 FY25Q3 FY25Q1 FY26Q3 FY26Q1 FY27
EBITDA marginHover a period for its figures

4Operational metrics

Commentary

  • Closing cash of ₹204.1 Cr at Jun 26, up ₹4.89 Cr over the quarter
    • Net cash flow of ₹4.89 Cr in the quarter (change in closing cash; derived)
    • Cash is 1.3% behind AOP
  • Marketing at 13.2% of revenue (Marketing)
    • 0.8pp lower than Q1 FY26's 14.0%
  • Corporate overheads at 7.1% of revenue
    • 0.6pp lower than Q1 FY26's 7.6%

Cash balance

₹ Cr · month end
Closing cash balance and net cash flow010020030001234Jul 25Oct 25Jan 26Apr 26Jul 26
Closing cashNet cash flow (month) (right axis)Hover a period for its figures

Cost ratios

% of net revenue, from the MIS P&L
Marketing and overheads as a share of revenue0%5%10%15%Q1 FY25Q3 FY25Q1 FY26Q3 FY26Q1 FY27
Marketing (Marketing)Corporate overheads (Corporate Overheads)Hover a period for its figures

5Business performance overview

Key focuses
Online
  • Online sales of ₹24.4 Cr, 41.2% of net revenue (38.7% a year earlier)
    • up 23.5% YoY
Stores
  • Store sales of ₹34.8 Cr, 58.8% of revenue
    • up 11.3% YoY
  • 44 stores at quarter end
    • +2 in the quarter
    • +6 on a year earlier
FY27 YTD performance
  • FY27 YTD net revenue of ₹59.2 Cr, up 16.0% YoY, 7.0% behind AOP
    • Gross margin 59.3% (AOP 60.6%)
    • EBITDA ₹8.44 Cr, margin 14.2% (AOP 17.6%)
Outlook (FY27)
  • FY27 AOP net revenue of ₹304.9 Cr; 19.4% delivered after 3 months
    • The remaining 9 months need ₹81.9 Cr a quarter, up 38.3% on Q1 FY27
    • Kestrel's investment case (VP) assumes ₹386.3 Cr for FY27
Macro
  • Gold price movement is squeezing margins on the heavier pieces

6Historical financial performance

₹ CrQ1 FY26Q2 FY26Q3 FY26Q4 FY26FY26Q1 FY27FY27 YTD
Net Sales51.056.169.965.8242.859.259.2
Gross Profit30.032.841.238.8142.835.135.1
Gross Margin %58.7%58.3%59.0%59.0%58.8%59.3%59.3%
Contribution Margin17.218.823.922.582.320.420.4
EBITDA6.147.5910.69.7934.18.448.44
EBITDA %12.0%13.5%15.2%14.9%14.1%14.2%14.2%
PBT4.465.858.837.9727.16.596.59
PAT3.344.396.625.9820.34.944.94
Operating KPIs (own units)
Pieces Sold2,01,1692,17,9482,70,1332,52,8429,42,0922,27,0642,27,064
Stores38394142424444
  1. Fiscal year ends 31 March; Q1 FY27 = Apr–Jun 2026.
  2. Figures in ₹ Cr as filed in the MIS; $M figures converted at ₹88.6/US$ (the fund reporting rate) for every period, so growth in $M equals growth in rupees.
  3. Quarterly and annual figures are built from monthly MIS: flows summed, balances and counts at the period's last month, margins as summed numerator ÷ summed revenue — never an average of monthly percentages.
  4. AOP = the company's annual operating plan (Lumen_Draft_AOP_FY27_0331.xlsx); VP = Kestrel's investment-case model (Lumen_Kestrel_Model_post-DD_v2.xlsx). Actuals from Lumen_MIS_YTD_Jul26.xlsx.
  5. Net cash flow = month-on-month change in the closing cash balance (derived, not a filed cash-flow statement).
  6. VP converted at INR 83/USD (derived).
  7. Per-store and per-student averages are not restated to quarters and are left out of the P&L table.
  8. Cap table: fully diluted, as at Jun-26. Kestrel co-investors' stake = arranged co-investment at the fund's entry price.

Brewline Coffee

Grab-and-go coffee chain · Philippines · Kestrel Fund I

Q2 2026Q2 FY26FY = calendar year · latest MIS Aug'26

Net revenue
$21.0 mn
Q2 FY26
Behind−3.9% vs AOP
YoY growth
+22.5%
vs Q2 FY25
BehindAOP implied +27.4%
EBITDA margin
10.8%
Q2 FY26
In line+0.0pp vs AOP
Cash balance
$22.9 mn
at Jun 26
Behind−1.7% vs AOP

1Investment snapshot

Company overview

  • Brewline Coffee runs a company-owned network of grab-and-go coffee stores and kiosks in the Philippines
    • Founded in 2019 in Manila with a single kiosk format
  • 579 company-owned stores; 8.6 mn cups sold in the quarter
    • As reported for Q2 FY26
  • Kestrel first invested in Feb-23 (initial investment)
    • Kestrel Fund I: 3 rounds, $11.5M from the fund and $3.5M arranged co-investment

Funding details

US$ M
RoundDateFundCo-investTotal
Initial investmentFeb-23$6.5M$1.9M$8.4M
SecondaryFeb-23$2.0M$0.6M$2.6M
Follow-on investmentMay-24$3.0M$1.0M$4.0M
Total$11.5M$3.5M$15.0M

Summary cap table

% holding, fully diluted
Founders31.0%
ESOP5.0%
Northvane Capital16.5%
Kestrel Fund I12.0%
Kestrel co-investors3.7%
Other institutional investors31.8%

Investment details

Board representationDaniel Okafor (director); Sofia Lim (observer)
InstrumentSeries B Preferred; Ordinary shares (secondary); Series C Preferred
RightsBoard seat, information rights, ROFR and tag-along
Entry valuation$96M
Current valuation (2026-06)$226M Jun 26: Anchored to May 26 Series D led by Northvane Capital
Kestrel cost / fair value$11.5M / $27.0M · 2.35x
DistributionsNA
Fundraising updates
  • No fundraising planned this year; the roll-out is funded from operating cash and a term loan
  • Sofia Lim is reviewing a proposal for a working-capital line with a local bank

2Quarterly snapshot

Financial updates

  • Net revenue of $21.0 mn in Q2 FY26, up 22.5% YoY and 3.9% behind AOP
    • Annualised run-rate of $84.1M
    • Against Kestrel's investment case (VP) revenue is 12.4% behind
    • Stores (company-owned): 579 at quarter end, +92 on a year earlier
  • Gross margin of 61.2%, up 0.5pp on Q2 FY25
    • Gross margin is 0.1pp above AOP's 61.1%
  • EBITDA of $2.28 mn, a 10.8% margin (8.3% in Q2 FY25)
    • EBITDA margin is in line with AOP
    • Against Kestrel's investment case: 7.7pp below VP's 18.6%

Strategic updates

  • A new cold-brew line lifted average ticket in the stores where it launched
    • Commissary kitchen utilisation leaves room for further stores before the next one is needed
    • New kiosks opened in transit hubs; morning-peak throughput is the best in the network

Financial snapshot

US$ M · actuals unless marked Budget (AOP)
$MFY24FY25Q2 FY25Q2 FY26FY26 YTDBudget FY26
Stores (company-owned)443535487579579621
Net revenue55.170.117.221.040.389.1
Growth (YoY)29.8%27.2%27.7%22.5%23.0%27.0%
Gross margin60.1%60.7%60.7%61.2%61.0%61.2%
EBITDA2.75.81.42.34.010.0
EBITDA margin4.9%8.3%8.3%10.8%9.9%11.2%

Kestrel initiatives and outlook

  • Kestrel shared a site-selection model from another portfolio retailer; new sites are weighted to office districts
    • Sofia Lim is reviewing a proposal for a working-capital line with a local bank
Outlook for Q3 FY26
  • AOP calls for net revenue of $21.6 mn in Q3 FY26, up 2.7% on Q2 FY26 and up 28.2% on Q3 FY25
    • Jul–Aug 2026 (2 of 3 months, actual): net revenue $13.9 mn, 3.1% behind AOP for the same months
  • Daily sales per store are behind plan; new stores are ramping more slowly than the investment case assumed
    • Site selection for the next tranche of stores is weighted to office districts

3Financial metrics

Commentary

  • Net revenue up 56.4% over two years (Q2 FY24 to Q2 FY26)
    • Q2 FY26 annualised run-rate $84.1M, up 22.5% YoY
  • Gross margin between 59.9% and 61.2% across the 9 quarters shown; 61.2% this quarter
  • EBITDA margin positive in 9 of the 9 complete quarters shown
    • Q2 FY26: 10.8% against 8.3% a year earlier

Net revenue and stores (company-owned)

$ mn · by fiscal quarter
Net revenue by period with the AOP and Stores (company-owned)01020300200400600Q2 FY24Q4 FY24Q2 FY25Q4 FY25Q2 FY26
Net revenue (actual)AOPStores (company-owned) (right axis)Hover a period for its figures

Gross margin

% of net revenue
Gross margin by period0%20%40%60%80%Q2 FY24Q4 FY24Q2 FY25Q4 FY25Q2 FY26
Gross marginHover a period for its figures

EBITDA margin

% of net revenue
EBITDA margin by period0%5%10%15%Q2 FY24Q4 FY24Q2 FY25Q4 FY25Q2 FY26
EBITDA marginHover a period for its figures

4Operational metrics

Commentary

  • Closing cash of $22.9 mn at Jun 26, up $1.02 mn over the quarter
    • Net cash flow of $1.02 mn in the quarter (change in closing cash; derived)
    • Cash is 1.7% behind AOP
  • Marketing at 4.6% of revenue (Store Marketing + A&P)
    • 0.3pp lower than Q2 FY25's 4.9%
  • Head office costs at 14.1% of revenue
    • 0.9pp lower than Q2 FY25's 15.0%

Cash balance

$ mn · month end
Closing cash balance and net cash flow0102030−0.20.00.20.40.6Jul 25Oct 25Jan 26Apr 26Jul 26Aug 26
Closing cashNet cash flow (month) (right axis)Hover a period for its figures

Cost ratios

% of net revenue, from the MIS P&L
Marketing and overheads as a share of revenue0%5%10%15%20%Q2 FY24Q4 FY24Q2 FY25Q4 FY25Q2 FY26
Marketing (Store Marketing + A&P)Head office costs (Head Office Costs)Hover a period for its figures

5Business performance overview

Key focuses
Store network
  • 579 stores at quarter end
    • +21 in the quarter
    • +92 on a year earlier
Store economics
  • Store EBITDA margin of 27.8%, up 1.3pp YoY
    • AOP 27.1%
  • App orders keep rising as a share of transactions after the loyalty relaunch
FY26 YTD performance
  • FY26 YTD net revenue of $40.3 mn, up 23.0% YoY, 3.9% behind AOP
    • Gross margin 61.0% (AOP 61.0%)
    • EBITDA $3.98 mn, margin 9.9% (AOP 10.2%)
Outlook (FY26)
  • FY26 AOP net revenue of $89.1 mn; 45.2% delivered after 6 months
    • The remaining 6 months need $24.4 mn a quarter, up 16.1% on Q2 FY26
    • Kestrel's investment case (VP) assumes $98.4 mn for FY26
Macro
  • Labour cost per store hour is rising with the minimum-wage revision in the capital region
  • A forward-buy covers coffee bean costs for the next two quarters

6Historical financial performance

US$ mnQ1 FY25Q2 FY25Q3 FY25Q4 FY25FY25Q1 FY26Q2 FY26FY26 YTD
Net Sales15.617.216.820.570.119.321.040.3
Gross Profit9.4210.410.312.542.611.712.924.6
GM%60.5%60.7%61.0%60.8%60.7%60.9%61.2%61.0%
Store EBITDA4.034.544.465.4918.55.165.8311.0
EBITDA1.031.421.202.175.821.712.283.98
EBITDA %6.6%8.3%7.2%10.6%8.3%8.9%10.8%9.9%
Net Income(0.07)0.27(0.00)0.911.100.390.901.29
Operating KPIs (own units)
Store Network464487511535535558579579
  1. Fiscal year ends 31 December (calendar year); Q2 FY26 = Apr–Jun 2026.
  2. Filed in Philippine pesos; stored and shown in US$ mn, converted at ₱57.4/US$ (the fund reporting rate) for every period.
  3. Quarterly and annual figures are built from monthly MIS: flows summed, balances and counts at the period's last month, margins as summed numerator ÷ summed revenue — never an average of monthly percentages.
  4. AOP = the company's annual operating plan (Brewline_Budget_2026_BoardFinal.xlsx); VP = Kestrel's investment-case model (Brewline_Kestrel_Model_v5.xlsx). Actuals from Brewline_PH_P&L_Aug2026.xlsx.
  5. Net cash flow = month-on-month change in the closing cash balance (derived, not a filed cash-flow statement).
  6. Per-store and per-student averages are not restated to quarters and are left out of the P&L table.
  7. Cap table: fully diluted, as at Jun-26. Kestrel co-investors' stake = arranged co-investment at the fund's entry price.

Bayani Mart

Hard-discount grocery · Philippines · Kestrel Fund I & Kestrel Fund II

Q2 2026Q2 FY26FY = calendar year · latest MIS Aug'26

Net revenue
$271.9 mn
Q2 FY26
Behind−6.1% vs AOP
YoY growth
+22.2%
vs Q2 FY25
BehindAOP implied +30.1%
EBITDA margin
−2.0%
Q2 FY26
Behind−0.7pp vs AOP
Cash balance
$54.8 mn
at Jun 26
Behind−4.9% vs AOP

1Investment snapshot

Company overview

  • Bayani Mart is a hard-discount grocery chain with its own distribution centres and a growing private label
    • Founded in 2016 in Luzon; a hard-discount format with a limited assortment
  • 1,238 stores served by 7 distribution centres
    • As reported for Q2 FY26
  • Kestrel first invested in Mar-24 (initial investment)
    • Kestrel Fund I: 2 rounds, $16.0M from the fund and $6.0M arranged co-investment
    • Kestrel Fund II: 2 rounds, $18.0M from the fund and $8.0M arranged co-investment

Funding details

US$ M
Kestrel Fund IDateFundCo-investTotal
Initial investmentMar-24$11.0M$6.0M$17.0M
ConvertibleJan-25$5.0M–$5.0M
Total (Fund I)$16.0M$6.0M$22.0M
Kestrel Fund IIDateFundCo-investTotal
Initial investmentJun-25$12.0M$5.0M$17.0M
Follow-on investmentDec-25$6.0M$3.0M$9.0M
Total (Fund II)$18.0M$8.0M$26.0M

Held by both funds; each fund's table is its own. Business-level total: $34.0M from the funds, $48.0M including co-investment.

Summary cap table

% holding, fully diluted
Founders18.0%
ESOP4.0%
Kestrel Fund I7.3%
Kestrel Fund II5.4%
Kestrel co-investors5.1%
Other institutional investors60.2%

Investment details

Board representationMaya Raman (director); Sofia Lim (observer)
InstrumentSeries C Preferred; Convertible note; Series D Preferred
RightsBoard seat (Fund I) and observer (Fund II); liquidation preference and protective provisions
Entry valuation$218M (Fund I); $331M (Fund II)
Current valuation (2026-06)$457M Jun 26: Anchored to Apr 26 Series E, blended primary and secondary
Kestrel cost / fair value$34.0M / $58.4M · 1.72x
DistributionsNA
Fundraising updates
  • Vikram Shah and Sofia Lim are working with management on a revised plan that the new capital has to deliver
  • The round that closed in May, with Kestrel Fund II participating, has rebuilt the cash balance; no further raise is planned this year

Also held by Fund II, which entered at the Series D. The two positions are separate; the page adds them only where it measures exposure per business.

2Quarterly snapshot

Financial updates

  • Net revenue of $271.9 mn in Q2 FY26, up 22.2% YoY and 6.1% behind AOP
    • Annualised run-rate of $1,087.7M
    • Against Kestrel's investment case (VP) revenue is 13.1% behind
    • Stores: 1,238 at quarter end, +170 on a year earlier
  • Gross margin of 11.1%, up 0.4pp on Q2 FY25
    • Gross margin is 0.4pp below AOP's 11.5%
  • EBITDA loss of $5.57 mn, a −2.0% margin (−3.0% in Q2 FY25)
    • EBITDA margin is 0.7pp below AOP's −1.4%
    • Against Kestrel's investment case: 5.9pp below VP's 3.9%

Strategic updates

  • A loss-prevention programme is being piloted in twenty stores to bring shrinkage back to plan
    • The newest distribution centre is ramping; fill rates in the north dipped while it did
    • Like-for-like sales are soft in the provincial stores; the metro cluster is holding up
  • The store-opening plan has been slowed so the new capital lasts to profitability

Financial snapshot

US$ M · actuals unless marked Budget (AOP)
$MFY24FY25Q2 FY25Q2 FY26FY26 YTDBudget FY26
Stores9611,1591,0681,2381,2381,371
Net revenue714.7917.3222.5271.9523.41,197.4
Growth (YoY)31.8%28.4%29.7%22.2%23.0%30.5%
Gross margin10.4%10.8%10.8%11.1%11.1%11.6%
EBITDA(29.8)(26.3)(6.6)(5.6)(11.7)(14.2)
EBITDA margin(4.2%)(2.9%)(3.0%)(2.0%)(2.2%)(1.2%)

Kestrel initiatives and outlook

  • A new COO starts next quarter; Maya Raman is overseeing the hand-over at board level
    • Vikram Shah and Sofia Lim are working with management on a revised plan that the new capital has to deliver
Outlook for Q3 FY26
  • AOP calls for net revenue of $297.9 mn in Q3 FY26, up 9.5% on Q2 FY26 and up 29.1% on Q3 FY25
    • Jul–Aug 2026 (2 of 3 months, actual): net revenue $184.0 mn, 7.0% behind AOP for the same months
  • A new COO starts shortly; the board is watching the hand-over closely
    • Gross margin is under pressure from price matching against two regional discounters

3Financial metrics

Commentary

  • Net revenue up 58.5% over two years (Q2 FY24 to Q2 FY26)
    • Q2 FY26 annualised run-rate $1,087.7M, up 22.2% YoY
  • Gross margin between 10.3% and 11.1% across the 9 quarters shown; 11.1% this quarter
  • EBITDA margin positive in 0 of the 9 complete quarters shown
    • Q2 FY26: −2.0% against −3.0% a year earlier

Net revenue and stores

$ mn · by fiscal quarter
Net revenue by period with the AOP and Stores010020030005001,0001,500Q2 FY24Q4 FY24Q2 FY25Q4 FY25Q2 FY26
Net revenue (actual)AOPStores (right axis)Hover a period for its figures

Gross margin

% of net revenue
Gross margin by period0%5%10%15%Q2 FY24Q4 FY24Q2 FY25Q4 FY25Q2 FY26
Gross marginHover a period for its figures

EBITDA margin

% of net revenue
EBITDA margin by period−6%−4%−2%0%Q2 FY24Q4 FY24Q2 FY25Q4 FY25Q2 FY26
EBITDA marginHover a period for its figures

4Operational metrics

Commentary

  • Closing cash of $54.8 mn at Jun 26, up $31.5 mn over the quarter
    • Net cash flow of $31.5 mn in the quarter (change in closing cash; derived)
    • Cash is 4.9% behind AOP
  • No marketing line in the MIS P&L; the marketing ratio is not shown
  • HQ G&A at 3.1% of revenue
    • 0.2pp lower than Q2 FY25's 3.3%

Cash balance

$ mn · month end
Closing cash balance and net cash flow0204060−2002040Jul 25Oct 25Jan 26Apr 26Jul 26Aug 26
Closing cashNet cash flow (month) (right axis)Hover a period for its figures

Cost ratios

% of net revenue, from the MIS P&L
Marketing and overheads as a share of revenue0%1%2%3%4%Q2 FY24Q4 FY24Q2 FY25Q4 FY25Q2 FY26
HQ G&A ((-) HQ G&A)Hover a period for its figures

No marketing line in the MIS P&L; only overheads are shown.

5Business performance overview

Key focuses
Store network
  • 1,238 stores at quarter end
    • +40 in the quarter
    • +170 on a year earlier
  • 7 distribution centres at quarter end
    • No change in the quarter
    • +1 on a year earlier
Store economics
  • Store EBITDA margin of 4.0%, up 0.6pp YoY
    • AOP 4.4%
  • A loss-prevention programme is being piloted in twenty stores to bring shrinkage back to plan
FY26 YTD performance
  • FY26 YTD net revenue of $523.4 mn, up 23.0% YoY, 6.5% behind AOP
    • Gross margin 11.1% (AOP 11.5%)
    • EBITDA −$11.7 mn, margin −2.2% (AOP −1.5%)
Outlook (FY26)
  • FY26 AOP net revenue of $1,197 mn; 43.7% delivered after 6 months
    • The remaining 6 months need $337.0 mn a quarter, up 23.9% on Q2 FY26
    • Kestrel's investment case (VP) assumes $1,299 mn for FY26
Macro
  • Food inflation eased through the quarter, which helps traffic but limits price-led growth
  • Price matching against two regional discounters kept pressure on gross margin

6Historical financial performance

US$ mnQ1 FY25Q2 FY25Q3 FY25Q4 FY25FY25Q1 FY26Q2 FY26FY26 YTD
Net revenue202.8222.5230.8261.1917.3251.5271.9523.4
Gross profit22.024.024.728.699.427.730.358.0
GM%10.9%10.8%10.7%11.0%10.8%11.0%11.1%11.1%
Store EBITDA6.857.547.799.5631.79.5310.820.3
EBITDA(6.68)(6.60)(6.77)(6.28)(26.3)(6.13)(5.57)(11.7)
EBITDA %(3.3%)(3.0%)(2.9%)(2.4%)(2.9%)(2.4%)(2.0%)(2.2%)
Operating KPIs (own units)
Stores1,0151,0681,1161,1591,1591,1981,2381,238
  1. Fiscal year ends 31 December (calendar year); Q2 FY26 = Apr–Jun 2026.
  2. Filed in Philippine pesos; stored and shown in US$ mn, converted at ₱57.4/US$ (the fund reporting rate) for every period.
  3. Quarterly and annual figures are built from monthly MIS: flows summed, balances and counts at the period's last month, margins as summed numerator ÷ summed revenue — never an average of monthly percentages.
  4. AOP = the company's annual operating plan (BayaniMart_BOD_Budget_2026.xlsx); VP = Kestrel's investment-case model (BayaniMart_Kestrel_Model_v14.xlsx). Actuals from BayaniMart_PerformanceTracker_Aug26.xlsx.
  5. Net cash flow = month-on-month change in the closing cash balance (derived, not a filed cash-flow statement).
  6. AOP converted at PHP 57.4/USD (derived).
  7. Per-store and per-student averages are not restated to quarters and are left out of the P&L table.
  8. Cap table: fully diluted, as at Jun-26. Kestrel co-investors' stake = arranged co-investment at the fund's entry price.

Brightpath Schools

K-12 school network · India · Kestrel Fund I

Q2 2026Q1 FY27FY ends 31 Mar · latest MIS FY26Figures: FY26 · annual (Apr 2025–Mar 2026)

Revenue
₹431.7 Cr
FY26
Ahead+4.9% vs AOP
YoY growth
+24.4%
vs FY25
AheadAOP implied +18.6%
EBITDA margin
29.3%
FY26
Ahead+1.1pp vs AOP
Cash balance
₹340.8 Cr
at Mar 2026
Ahead+3.4% vs AOP
Annual reporter. Brightpath reports audited annual accounts only; there are no quarterly figures, so nothing is shown for Q1 FY27 (Apr–Jun 2026) as a quarter. This section reports FY26 (Apr 2025–Mar 2026), the latest year on file, against the FY26 AOP; FY27 will be reported when its accounts close.

1Investment snapshot

Company overview

  • Brightpath Schools operates a network of kindergarten-to-class-12 schools under one curriculum and brand
    • Founded in 2009 with a single school; now a network of K-12 campuses
  • 52 schools and 31,319 students (FY26)
    • As reported for FY26
  • Kestrel first invested in Jun-24 (initial investment)
    • Kestrel Fund I: 2 rounds, $19.0M from the fund and $8.0M arranged co-investment

Funding details

US$ M
RoundDateFundCo-investTotal
Initial investmentJun-24$15.0M$6.5M$21.5M
Follow-on investmentFeb-25$4.0M$1.5M$5.5M
Total$19.0M$8.0M$27.0M

Summary cap table

% holding, fully diluted
Founders52.0%
ESOP3.0%
Kestrel Fund I9.3%
Kestrel co-investors3.9%
Other institutional investors31.8%

Investment details

Board representationMaya Raman (director); Arjun Mehta (observer)
InstrumentSeries B CCPS
RightsBoard seat, information rights, affirmative vote on new-campus capex
Entry valuation$205M
Current valuation (2026-06)$266M Dec 25: Independent valuation, EV/EBITDA on the FY27 budget
Kestrel cost / fair value$19.0M / $24.1M · 1.27x
DistributionsNA
Fundraising updates
  • No equity need for the next two years

2Annual snapshot

Financial updates

  • FY26 revenue of ₹431.7 Cr ($48.7M), up 24.4% YoY and 4.9% ahead of AOP
    • Against Kestrel's investment case (VP) revenue is 10.8% behind
    • Students: 31,319 at year end (26,737 a year earlier)
  • EBITDA of ₹126.6 Cr, a 29.3% margin (27.9% in FY25)
    • EBITDA margin is 1.1pp above AOP's 28.3%
    • Against Kestrel's investment case: 4.7pp below VP's 34.0%

Strategic updates

  • New schools opened on schedule; first-year occupancy is ahead of the ramp plan
    • Enrolment for the new academic year closed above last year across the network

Financial snapshot

US$ M · actuals unless marked Budget (AOP)
$MFY24FY25FY26Budget FY27
Students24,32026,73731,31934,745
Revenue33.739.248.756.5
Growth (YoY)18.4%16.1%24.4%16.0%
Gross margin––––
EBITDA9.010.914.317.4
EBITDA margin26.7%27.9%29.3%30.9%

Annual reporter: no quarter columns. Gross margin is not reported — a school's MIS has no cost-of-sales line.

Kestrel initiatives and outlook

  • Maya Raman is reviewing debt options to fund new campuses
Outlook for FY27
  • FY27 AOP revenue of ₹500.8 Cr, up 16.0% on FY26, at a 30.9% EBITDA margin
    • Students planned at 34,745
  • Capacity utilisation is below the investment case; filling existing campuses matters more than opening new ones

3Financial metrics

Commentary

  • Revenue compounded at 20.5% a year from FY22 to FY26
    • FY26: ₹431.7 Cr, up 24.4% YoY
  • EBITDA margin of 29.3% in FY26, against 24.6% in FY22

Net revenue and students

₹ Cr · by fiscal year
Net revenue by period with the AOP and Students0200400600010,00020,00030,00040,000FY22FY23FY24FY25FY26
Net revenue (actual)AOPStudents (right axis)Hover a period for its figures

Gross margin

% of net revenue

Not reported: the MIS has no gross-profit line, so there is nothing to chart.

EBITDA margin

% of net revenue
EBITDA margin by period0%10%20%30%FY22FY23FY24FY25FY26
EBITDA marginHover a period for its figures

4Operational metrics

Commentary

  • Closing cash of ₹340.8 Cr at Mar 2026, up ₹33.3 Cr on a year earlier
    • Cash is 3.4% ahead of AOP
  • Marketing and admissions at 4.0% of revenue
    • 0.1pp higher than FY25's 3.9%
  • Non-teaching salaries and other opex at 12.0% of revenue
    • 0.1pp lower than FY25's 12.2%

Cash balance

₹ Cr · fiscal year end
Closing cash balance and net cash flow0100200300400050100150200FY22FY23FY24FY25FY26
Closing cashNet cash flow (year) (right axis)Hover a period for its figures

Cost ratios

% of net revenue, from the MIS P&L
Marketing and overheads as a share of revenue0%5%10%15%FY22FY23FY24FY25FY26
Marketing (Marketing & Admissions)Non-teaching salaries and other opex (Non-teaching Salaries + Other Opex)Hover a period for its figures

5Business performance overview

Key focuses
School network
  • 52 schools and 31,319 students at the end of FY26
    • +5 schools in the year; AOP had 54
    • Capacity utilisation 81.3% as filed (79.4% in FY25)
Fees
  • Average net tuition fee of ₹1.04 lakh a student as filed (₹0.99 lakh in FY25)
FY26 performance
  • FY26 revenue of ₹431.7 Cr ($48.7M), up 24.4% YoY and 4.9% ahead of AOP
    • Against Kestrel's investment case (VP) revenue is 10.8% behind
    • Students: 31,319 at year end (26,737 a year earlier)
Outlook (FY27)
  • FY27 AOP revenue of ₹500.8 Cr, up 16.0% on FY26, at a 30.9% EBITDA margin
    • Students planned at 34,745
Macro
  • Demand for affordable-premium private schooling remains strong in tier-2 cities

6Historical financial performance

₹ CrFY22FY23FY24FY25FY26Budget FY27
Total Revenue205.0252.4298.8347.0431.7500.8
EBITDA50.564.279.996.9126.6154.6
EBITDA %24.6%25.4%26.7%27.9%29.3%30.9%
PBT31.941.352.865.987.9110.0
PAT24.031.039.649.466.082.5
Operating KPIs (own units)
No of Schools343843475259
Student Strength18,68721,62124,32026,73731,31934,745
Capacity Utilisation %71.0%73.8%76.6%79.4%81.3%86.5%
  1. Fiscal year ends 31 March; Q1 FY27 = Apr–Jun 2026.
  2. Figures in ₹ Cr as filed in the MIS; $M figures converted at ₹88.6/US$ (the fund reporting rate) for every period, so growth in $M equals growth in rupees.
  3. Quarterly and annual figures are built from monthly MIS: flows summed, balances and counts at the period's last month, margins as summed numerator ÷ summed revenue — never an average of monthly percentages.
  4. AOP = the company's annual operating plan (Brightpath_Budget_FY27.xlsb); VP = Kestrel's investment-case model (Brightpath_Kestrel_Model_Revised.xlsb). Actuals from Brightpath_MIS_FY26_Audited.xlsb.
  5. Net cash flow = month-on-month change in the closing cash balance (derived, not a filed cash-flow statement).
  6. Per-store and per-student averages are not restated to quarters and are left out of the P&L table.
  7. Cap table: fully diluted, as at Jun-26. Kestrel co-investors' stake = arranged co-investment at the fund's entry price.
Quarterly Report · Beacon