Nykaa Fashion Limited, a wholly owned subsidiary of the Company, is inter alia entitled to receive compensation of Rs. 10 Crores (Rupees Ten Crores only) pursuant to the Consent Terms which have been recorded in the Arbitration award dated August 05, 2025. These Consent Terms have been filed in the Arbitration proceedings, arising from the disputes inter alia, pertaining to breach of employment contract obligations of confidentiality and non-solicitation by a senior ex-employee of Nykaa Fashion.