Q1 2027 Avenuesai Ltd Earnings Call

Speaker #1: Ladies and gentlemen, you are connected to the Avenuesai Limited Q1 FY27 earnings conference call. Please stay connected. The call will begin shortly. I repeat, ladies and gentlemen, you are connected to the Avenuesai Limited Q1 FY27 earnings conference call.

Operator: Ladies and gentlemen, you are connected to AvenuesAI Limited Q1 FY27 earnings conference call. Please stay connected. The call will begin shortly. I repeat. Ladies and gentlemen, you are connected to AvenuesAI Limited Q1 FY27 earnings conference call. Please stay connected. The call will begin shortly. Thank you. Ladies and gentlemen, good day and welcome to the AvenuesAI Limited earnings conference call Q1 FY27, hosted by Go India Advisors. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Rajat Gupta from Go India Advisors. Thank you, and over to you, sir.

Speaker #1: Please stay connected. The call will begin shortly. Thank you. Ladies and gentlemen, good day and welcome to the Avenuesai Limited earnings conference call for Q1 FY27, hosted by GoIndia Advisors.

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

Speaker #1: Should you need assistance during the conference call, please signal an operator by pressing star, then 0, on your touch-tone phone. Please note that this conference is being recorded.

Speaker #1: I now hand the conference over to Mr. Rajat Gupta from GoIndia Advisors. Thank you, and over to you, sir.

Speaker #2: Yeah, thank you, Anushka. Good evening, everyone, and welcome to the Avenuesai Limited earnings call to discuss the Q1 FY27 results. We have on the call with us today Mr. Vishal Mehta, Chairman and Managing Director.

Rajat Gupta: Yeah. Thank you, Anushka. Good evening, everyone, and welcome to AvenuesAI Limited earnings call to discuss the Q1 FY27 results. We have on the call with us today Mr. Vishal Mehta, Chairman and Managing Director; Mr. Vishwas Patel, Managing Director and Chief Executive Officer; Mr. Sunil Bhagat, Chief Financial Officer; and also Mr. V. Ravi, who is advising AvenuesAI on corporate and financial strategy as an independent consultant. We must remind you that the discussion on today's call may include certain forward-looking statements and must be viewed in conjunction with the risk that the company faces. I now request Mr. Vishal Mehta to take us through the company's business outlook and financial highlights, subsequent to which we will open the floor for Q&A. Thank you, and over to you, sir.

Speaker #2: Mr. Vishwas Patel, Managing Director, and Chief Executive Officer. Mr. Sunil Bhagat, Chief Financial Officer. And also Mr. B. Ravi, who is advising Avenuesai on corporate and financial strategy.

Speaker #2: As an independent consultant, we must remind you that the discussion on today's call may include certain forward-looking statements, and must be viewed in conjunction with the risks that the company faces.

Speaker #2: I now request Mr. Vishal Mehta to take us through the company's business outlook and financial highlights, subsequent to which we'll open the floor for Q&A.

Speaker #2: Thank you, and over to you, sir.

Speaker #3: At the outset, I want to let you know that we had strong revenues this quarter. Revenues increased by 109% year over year.

Vishal Mehta: At the outset, I want to let you know that we had strong revenues this quarter. Revenues increased by 109% year-over-year. We have been concentrating on building volumes and absolute profitability, and both have gone in the right direction, with the profit after tax going up by 45%. I want to walk you through the AvenuesAI strategy. We believe we have got four focus areas. One is payment, second is consumer, third is intelligence, and fourth is credit. They increasingly reinforce one another. Payments is our foundation. CCAvenue moves money for merchants and continues to fund our investments in the next phase of our business. Consumer is Rediff. Rediff One, Rediff Pay, Rediff TV, they give us direct relationship with consumers and business, something most fintech companies simply may not have. Intelligence is Phronetic AI, which is now proposed to be merged with AvenuesAI.

Speaker #3: We have been concentrating on building volumes and absolute profitability, and both have gone in the right direction. With profit after tax going up by 45%, I want to walk you through the Avenuesai strategy, and we believe we have four focus areas.

Speaker #3: One is payments, second is consumer, third is intelligence, and fourth is credit. And they increasingly reinforce one another. Payments is our foundation. CC Avenue moves money from merchants and continues to fund our investments in the next phase of our business.

Speaker #3: The consumer is Rediff. Rediff, Rediff One, Rediff Pay, Rediff TV—they give us a direct relationship with consumers and businesses, something most fintech companies simply may not have.

Speaker #3: Intelligence is Phonetic AI, which is now proposed to be merged with Avenuesai. We are putting AI on top of transactions, payments, and enterprise workflows to create new products and capabilities.

Vishal Mehta: We are putting AI on top of transactions, payments, and enterprise workflows to create new products and capabilities. Credit is our emerging distribution layer. Through strategic minority investments in regulated financial institutions, we can distribute credit without putting lending risk on AvenuesAI balance sheet. The important point is that these are no longer separate businesses. They are becoming one integrated platform. We have been building Rediff into a broader consumer and enterprise platform. Rediff Pay is progressing well as our UPI-based consumer payments platform. It will be out of CUG this month and into production. Rediff One is evolving into an operating platform for businesses, bringing together commerce, communication, compliance, and intelligence. Rediff TV, as in news, and Rediff Gurus, they add content and community. The opportunity is therefore much bigger than legacy Rediff business.

Speaker #3: Credit is our emerging distribution layer. Through strategic minority investments in regulated financial institutions, we can distribute credit without putting lending risk on the AvenuesAI balance sheet.

Speaker #3: The important point is that these are no longer separate businesses—they are becoming one integrated platform. We've been building Rediff into a broader consumer and enterprise platform.

Speaker #3: Rediff Pay is progressing well as our UPI-based consumer payments platform. It will be out of CUG this month and into production. Rediff One is evolving into an operating platform for businesses, bringing together commerce, communication, compliance, and intelligence.

Speaker #3: Rediff TV, as in news, and Rediff Gurus—they add content and community. The opportunity is therefore much bigger than the legacy Rediff business. We are connecting Rediff’s consumers and businesses with Avenuesai, learning from payments and AI capabilities, and unlocking value from the ecosystem.

Vishal Mehta: We are connecting Rediff's consumers and business with AvenuesAI learning from payments and AI capabilities and unlocking value from the ecosystem. AI is the next layer of payments. We believe the next generation of payments will not simply move money faster, it will enable machines to transact. Through Phronetic AI, we launched PayCentral.ai, which we believe is India's first agentic payment platform built on Google's Agent Payments Protocol. It enables AI agents to transact directly with one another without requiring a person to manually initiate every payment. Think of it simply, an AI agent understands the intent, finds the product or service, makes the decision, and completes the payment. We call this Uber-izing payments, removing the friction between intent, commerce, and payment without replacing the merchant or the consumer. We believe this can now become a layer of digital commerce.

Speaker #3: AI is the next layer of payments. We believe the next generation of payments will not simply move money faster; it will enable machines to transact.

Speaker #3: Through Phonetic AI, we launched PayCentral, which we believe is India's first agentic payment platform built on Google's Agent Payments Protocol. It enables AI agents to transact directly with one another without requiring a person to manually initiate every payment.

Speaker #3: Think of it simply: an AI agent understands the intent, finds the product or service, makes the decision, and completes the payment. We call this 'uberizing payments'—removing the friction between intent, commerce, and payment without replacing the merchant or the consumer.

Speaker #3: We believe this can now become a layer of digital commerce. That is the reason why we've changed our name from Infibeam Avenues to AvenuesAI.

Vishal Mehta: That is the reason why we have changed our name from Infibeam Avenues to AvenuesAI. We are no longer a payments company that does AI. We are building AI-first fintech infrastructure company that started with payments. Payments give us scale. Rediff gives us consumers and enterprises. AI gives us intelligence, and credit partnerships gives us access to financial products without balance sheet lending risk. This is the ecosystem we are building. The Q1 FY27, we actually made meaningful progress across each of these pillars. We received in-principle approval from Central Bank of the UAE for retail payment services, which is a Category 3 license for Avenues. UAE is already one of our strongest international markets. The license will allow us to broaden our customer reach and product suite and strengthen our long-term international payment strategy.

Speaker #3: We are no longer a payments company that does AI. We are building an AI-first fintech infrastructure company that started with payments. Payments give us scale.

Speaker #3: Rediff gives us consumers and enterprises. AI gives us intelligence, and credit partnerships give us access to financial products without balance sheet lending risk. This is the ecosystem we are building.

Speaker #3: The first quarter FY27, we actually made meaningful progress across each of these pillars. We received in-principle approval from Central Bank of UAE for retail payment services, which is a Cat3 license for Avenues.

Speaker #3: The UAE is already one of our strongest international markets. The license will allow us to broaden our customer reach and product suite, and strengthen our long-term international payment strategy.

Speaker #3: In India, RBI authorized Avenuesai to set up a payment system for the issuance and operation of prepaid payment instruments. These approvals further strengthen our regulated payments infrastructure across India and international markets.

Vishal Mehta: In India, RBI authorized Avenuesai to set up payment system for issuance and operations of prepaid payment instruments. These approvals further strengthen our regulatory payments infrastructure across India and international market. In terms of our asset-light expansion on credit, we have moved from strategy to execution and credit. We have progressed well in proposed investments of up to 2.5% in Ratnaafin Capital, which is a RBI-registered NBFC with a very strong SME lending franchisee. We also approved a strategic investment of up to 7% in Online PSB Loans, India's largest public sector-backed digital credit platform. Our model is deliberately asset-light. Avenuesai provides AI payments infrastructure and merchant distribution. Regulated partners provide the balance sheet and underwriting. This allows us to participate in India's digital credit opportunity without taking lending risk onto our own balance sheet. As far as trust is concerned, on the intelligence side, we are building another important capability.

Speaker #3: In terms of our asset-light expansion on credit, we've moved from strategy to execution on credit. We've progressed well in proposed investments of up to 2.5% in Rattafin Capital, which is an RBI-registered NBFC.

Speaker #3: With a very strong SME lending franchise, we also approved a strategic investment of up to 7% in Online PSB Loans, India's largest public sector-backed digital credit platform.

Speaker #3: Our model is deliberately asset-light. AvenuesAI provides AI payments infrastructure and merchant distribution. Regulated partners provide the balance sheet and underwriting. This allows us to participate in India's digital credit opportunity without taking lending risk onto our own balance sheet.

Speaker #3: As far as trust is concerned on the intelligence side, we are building another important capability: enterprise AI that stays inside the enterprise. Through Phonetic AI, we are developing on-prem AI solutions using small language models, specifically in the range of about 1 billion to 10 billion parameters.

Vishal Mehta: Enterprise AI that stays inside the enterprise. Through Phronetic AI, we are developing on-prem AI solutions using small language models, in specific about 1 billion to 10 billion parameter range. These models can be deployed, trained, monitored, and retained within clients' own infrastructure, with sensitive data remaining inside the organization. Our platforms are built specifically around this requirement. For enterprises, particularly those handling sensitive data, sovereignty, security, and controls, these model capabilities are becoming increasingly important. We believe this allows us to compete on trust, not simply on model size, and creates a new AI-native revenue opportunity beyond payments. The board of directors have also taken two significant decisions this quarter. First, Neuromind, which is our fully owned AI-based subsidiary, is being merged into Avenuesai. This will give us synergies and seamless operations and lead to cost benefits and data consent also.

Speaker #3: These models can be deployed, trained, monitored, and retained within the client's own infrastructure, with sensitive data remaining inside the organization. Our platforms are built specifically around this requirement.

Speaker #3: For enterprises, particularly those handling sensitive data, sovereignty, security, and controls, these model capabilities are becoming increasingly important. We believe this allows us to compete on trust—not simply on model size—and creates a new AI-native revenue opportunity beyond payments.

Speaker #3: The board of directors has also taken two significant decisions this quarter. First, Neuromind, which is our fully owned, AI-based subsidiary, is being merged into Avenuesai.

Speaker #3: This will give us synergies and seamless operations, and lead to cost benefits and data consent also. The second thing we are doing is a reverse split, where the face value of a share—which was one rupee—is now being increased to 10 rupees per share. Consolidating the face value to 10 rupees instead of one rupee has a significant impact on how our shareholders will perceive us as well as on liquidity.

Vishal Mehta: The second we are doing is a reverse split, which is a face value of share, which was one rupee now, is being increased to 10 rupees per share. Consolidating the face value to 10 rupees instead of one rupee has a significant impact on how our shareholders will perceive us, as well as on the liquidity. I will now hand over the call to Vishwas to take you through the payments business. Vishwas, over to you.

Speaker #3: I will now hand over the call to Vishwas to take you through the payments business. Vishwas, over to you.

Speaker #2: Thank you, Vishal, and good evening, everyone. Vishal has laid down the strategy. Now, let me bring it down to what we are seeing with merchants and consumers.

Vishwas Patel: Thank you, Vishal. Good evening, everyone. Vishal has laid down the strategy. Now let me bring in down to what we are seeing with merchants and consumers. Our strategy is simple. We are not trying to add another payment option. We are trying to become more deeply embedded in the merchant's workflow. A good example is the integration of CCAvenue payment gateway with Shiprocket Checkout. Shiprocket's D2C and SMB merchants can now access same-day settlement, international payments, low-cost EMI, and payment links across WhatsApp, SMS, Instagram, and email without managing separate payment relationships. We are applying the same model across other verticals. Our form builder has onboarded thousands of education institutions and even merchants. Our BillAvenue platform process millions of utilities, mobile recharges, and bill payment transactions with agent-led adoption, driving deeper financial inclusion.

Speaker #2: A strategy is simple. We are not trying to add another payment option. We are trying to become a more deeply embedded in the merchants workflow.

Speaker #2: A good example is the integration with of CC Avenue Payment Gateway, which is a Procter checkout. C Procter's D2C and SMB merchants can now access same-day settlement, international payments, no-cost EMI, and payment links across WhatsApp, SMS, Instagram, and email without managing a separate payment relationships.

Speaker #2: We are applying the same model across other verticals. Our Form Builder has onboarded thousands of educational institutions and even merchants. Our BillAvenue platform processes millions of utility, mobile recharge, and bill payment transactions.

Speaker #2: With agent-led adoption, we're driving deeper financial inclusion. Our Res Avenue platform—that is, our integrated reservations and payments platform—is scaling across thousands of hotels and connects with systems such as Opera Micros, Fidelio, and other property management systems. It also leverages our AI-based tools to help them implement smart pricing and optimize occupancy rates.

Vishwas Patel: Our ResAvenue platform, that is our integrated reservations and payments platform, is scaling across thousands of hotels and connects with systems such as OPERA, MICROS, Fidelio property management systems and leverages our AI-based tools to help them implement smart pricing and optimize occupancy rates. The principle is consistent. Make payments part of the workflow, create more value for the merchant, and the transaction volume follows. Our transaction processing volume for the quarter grew 74% year on year to INR 1,479 billion with continuous trend across utility payments, government payments, retail, B2B, and hospitality. Our performance reflects that. A strong execution in our core payments business, completion of a broad and defensible regulatory stack, measured progress in AI-driven commerce and consumer platforms, continued discipline around scale, profitability, and risk management.

Speaker #2: The principle is consistent: make payments part of the workflow. Create more value for the merchant, and the transaction volume follows. Our transaction processing volume for the quarter grew 74% year-on-year to INR 1,479 billion.

Speaker #2: With continuous strength across utility payments, government payments, retail, B2B, and hospitality. Our performance reflects that. Strong execution in our core payments business, completion of a broad and defensible regulatory stack, measured progress in AI-driven commerce and consumer platforms, continued discipline around scale, profitability, and risk management.

Speaker #2: We remain focused on building trust, compliant, and intelligent intelligent payment infrastructure at scale while selectively investing in platforms that extends our long-term growth runway.

Vishwas Patel: We remain focused on building trust, compliant, and intelligent payment infrastructure at scale while selectively investing in platforms that extends our long-term growth runway. On the consumer side, Rediff Pay will continue to scale as a UPI platform once it has passed the CUG stage. We see Rediff Pay as a genuine second leg of the payment business, bringing consumer transactions increasingly onto our own payment rails. Rediffmail is also expanding beyond email and communication into commerce, compliance, and intelligence, making it an operating platform for businesses. On embedded lending, our merchant network is becoming the distribution layer. As Ratnaafin and Online PSB Loans Limited progress towards closing, we expect merchant financing, checkout financing, and working capital products

Speaker #2: On the consumer side, Rediff Pay will continue to scale as a UPI platform once it has passed the CUG stage. We see Rediff Pay as a genuine second leg of the payment business, bringing consumer transactions increasingly onto our own payment rails.

Speaker #2: Rediff One is also expanding beyond email and communication into commerce, compliance, and intelligence, making it an operating platform for businesses. On embedded lending, our merchant network is becoming the distribution layer.

Speaker #2: As Ratna Fin and OPL progress towards closing, we expect merchant financing, checkout financing, and working capital products to become available across the CC partners.

Vishal Mehta: to become available across the Customer Communications Management ecosystem with lending risk remaining with our regulated partners. With that, I hand over to Sunil Bhai for the financial performance. Over to you, Sunil Bhai.

Speaker #2: With that, I hand over to Sunil Bhai for the financial performance. Over to you, Sunil Bhai.

Speaker #3: Thank you, Vishwas sir. And good evening, everyone. Let me start with the key quarter one FY27 numbers. On a consolidated basis, our gross revenue from operations stood at 2,680 crore, which is up 109% year-on-year.

Sunil Bhagat: Thank you, Vishwa sir, and good evening, everyone. Let me start with the key Q1 FY27 numbers. On a consolidated basis, our gross revenue from operations stood at INR 2,680 crore, which is up 109% year on year. Our net revenue stood at INR 147 crore, marginally down by 3%. Our EBITDA, excluding other income, stood at INR 100 crore, representing 41% increase year over year. Our profit after tax for the quarter stood at INR 85 crore, which is up 45% year on year. This performance builds on the strong full financial year 2026 trajectory, where our gross revenue was INR 8,116 crore, which is up 103%. Our net revenue was full year INR 603 crore, which is up 15%, and PAT was INR 295 crore, up 25%. So far as our FY27 outlook is concerned, our company expects FY27 consolidated revenue to be in the range of INR 11,000 crore to INR 13,000 crore.

Speaker #3: Our net revenue stood at ₹147 crore, marginally down by 3%. Our EBITDA, excluding other income, stood at ₹100 crore, representing a 41% increase year over year.

Speaker #3: Our profit after tax for the quarter stood at ₹85 crore, which is up 45% year-on-year. This performance builds on the strong full financial year '26 trajectory, where our gross revenue was ₹8,116 crore, up 103%.

Speaker #3: Our net revenue for the full year was ₹603 crore, which is up 15%, and PAT was ₹295 crore, up 25%. So far as our FY27 outlook is concerned, our company expects FY27 consolidated revenue to be in the range of ₹11,000 crore to ₹13,000 crore, which is a growth of around 35% and above. We also expect FY27 EPS to be in the range of ₹8.75 to ₹9.50 per share, which is based on the proposed post-corporate action face value of ₹10 per share.

Sunil Bhagat: That is growth of around 35% and above. Also expects the FY27 EPS to be in the range of INR 8.75 to 9.5 per share, which is based on the proposed post-corporate action face value of INR 10 per share. Our cost base remains front-loaded as we invest in AI infrastructure, international expansion, and our new financial services capabilities. We are therefore not building for a short-term margin spike. We are building for a structurally stronger and more scalable margin profile through FY27 and FY28 as these businesses begin to compound. With this, I will now hand over call for Q&A. Thank you.

Speaker #3: Our cost base remains front-loaded as we invest in AI infrastructure, international expansion, and our new financial services capabilities. We are therefore not building for a short-term margin spike.

Speaker #3: We are building for a structurally stronger and more scalable margin profile through FY27 and FY28, as this business is beginning to compound. With this, I will now hand over the call for Q&A.

Speaker #2: Thank you.

Speaker #1: Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone.

Operator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We take the first question from the line of Amish Kanani from Norwitz Investment Managers. Please proceed.

Speaker #1: If you wish to remove yourself from the question queue, you may press star two. Participants are requested to use handsets while asking a question.

Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue assembles. We will take the first question from the line of Amish Kanani from No Wise Investment Managers.

Speaker #1: Please proceed.

Speaker #4: Yeah, hi sir. Congrats on the good growth. Sir, we had filed for this DRHP of Rediff, and I understand it was confidential. Last quarter, I had also asked this question.

Amish Kanani: Yeah. Hi, sir. Congrats on good growth. Sir, we had filed for this DRHP of Rediff, and I understand it is confidential. Last quarter also, I had asked this question. If you can give us one, the progress on the same. We were more worried about this corporate action that we are taking, whether that could impact our timing of the issue. Because, one, if you can just remind us of this reason for this corporate action. Was it so critical and whether that impacts our timeline for Rediff? Because I understand the valuation of our company would really be unlocked if Rediff has a separate way of valuation because the data is also not coming out in total. One, if you can address that.

Speaker #4: But if you can give us an update on the progress of the same, and we were more worried about, you know, this corporate action that we are taking.

Speaker #4: Whether, you know, that could impact our timing of the issue. Because, one, if you can just remind us of this reason for this corporate action.

Speaker #4: Was it so critical, and whether that, you know, impacts our timeline for Rediff? Because I understand our valuation of our company would really be unlocked if, you know, Rediff has a separate way of valuation.

Speaker #4: Because the data is also not coming out in total. So, first, if you can address that.

Speaker #3: Sure. So this is Vishal here. Basically, we don't see any impact of the corporate action on the filing of Rediff. These are two separate events.

Vishal Mehta: Sure. This is Vishal here. Basically, we don't see any impact of the corporate action on the filing of Rediff. They are two separate events. The corporate action is, to my knowledge, just increasing the face value of the share from INR 1 to INR 10. That applies to the shareholders of AvenuesAI.

Speaker #3: The corporate action is to remind you, just increasing the face value of the share from one rupee to ten rupees. And so that applies to the shareholders of Avenuesai.

Amish Kanani: Sir, I was referring to the merger of the subsidiary that we are merging with AvenuesAI, I think. Phronetic AI.

Speaker #3: And so anyone who.

Speaker #4: So, the merger of that and the subsidiary that we are merging with, Avenuesai.

Speaker #3: Correct. So the fully owned subsidiary of the company is merged into the parent, so that has no bearing on the shareholders of Avenuesai. Basically, it's a 100% subsidiary of Avenuesai.

Vishal Mehta: Correct. The fully owned subsidiary of the company is merged into the parent. That has no bearing to the shareholders of AvenuesAI. Basically, it is 100% subsidiary of AvenuesAI. The proposed corporate action that we have suggested is to merge the fully owned subsidiary, which was undertaking the work of AI models, AI frameworks, and all the opportunities related to that. We believe that if we bring that company directly as part of AvenuesAI, then the AI adoption will grow much faster. We have also recently in our press release mentioned that we plan to build out transaction intelligence course, and many more. With that kind of, you see in AI, data becomes extremely critical and important, consented data.

Speaker #3: And so, the proposed corporate action that we have suggested is to merge the fully owned subsidiary, which was undertaking the work of AI models, AI frameworks, and all the opportunities related to that. We believe that if we bring that company directly as part of Avenuesai, then the AI adoption will grow much faster.

Speaker #3: It's part of the—we've also, recently in our press release, mentioned that we plan to build out transaction intelligence cores, and many more.

Speaker #3: And so with that, you see in AI, data becomes extremely critical and important—consented data. And so what we believe is that if it becomes part of the main entity, then the growth opportunities and trajectories are significantly more.

Vishal Mehta: What we believe in is that if it becomes part of the main entity, then the growth opportunities, the trajectories are significantly more. We do not believe that this corporate action of merging the subsidiary into parent has any bearing to the proposed filing of Rediff.

Speaker #3: So, we don't believe that this corporate action of merging the subsidiary into the parent has any bearing on the proposed filing of Rediff.

Speaker #4: Any update there, or is it too early to speak on that?

Amish Kanani: Any update there, or it is too early to speak on that end?

Speaker #3: It's slightly early to directly talk about it, but yeah, I think that, you know, we followed the due process. And, you know, you can see some updates which are there on the SEBI website.

Vishal Mehta: It's slightly early to directly talk about it. But yeah, I think that we've followed the due process and you can see some updates which are there on the SEBI website.

Speaker #4: Sure, sir. And so this Pay Central thing that, you know, we are doing—if you can give us an update on, you know, how's the commercial traction there in terms of merchant onboarding.

Amish Kanani: And sir, this PayCentral thing that we are doing, if you can give us update on how is the commercial traction there in terms of merchant onboarding. And a related question there, sir, is this last week was all over place about MDR. I understand two quarter back, I had asked you this question, if and when the MDR comes, whether it will be a beneficiary. And you did mention it will be a beneficiary to us. The only concern that now in the public domain is being discussed is that the large payment providers will get a larger share of the MDR and hence maybe the market gets consolidated. Given our market share being relatively on a lower side, would it be an opportunity or a threat in that context, sir?

Speaker #4: And a related question there, sir, is, you know, this last week was, you know, all over the place about MDR. I understand two quarterbacks had asked you this question: if and when the MDR comes.

Speaker #4: Whether it will be a beneficiary. And, you know, you did mention it will be a beneficiary to us. The only, you know, concern that, you know, now in the public domain is being discussed is that the large payment providers will get a larger share of the MDR.

Speaker #4: And hence, maybe the market gets consolidated. Given our market share being relatively on the lower side, would it be an opportunity or, you know, a threat in that context, sir?

Speaker #3: Vishwas, do you want to take the MDR first?

Vishal Mehta: Vishwas, you want to take the MDR first?

Speaker #2: Yeah. So MDR UPI is significantly growing on our base. Today, almost 22% of our transactions are on UPI. So, any kind of monetization on that UPI will definitely add additional revenues to our platform.

Vishwas Patel: Yeah. So MDR UPI is significantly growing on our base. Today, almost 22% of our transactions are on UPI. So any kind of monetization on that UPI will add additional revenues definitely to our platform. Right now, as we stand, the act has been passed by the Lok Sabha. It still awaits Rajya Sabha and still awaits president's approval and then the gazette, and then we will know what kind of pricing and monetization that NPCI and RBI is allowing to be done. But we know for sure that it's going to be on big merchants and for higher value transactions. But once the final rates come in, then maybe we'll be able to proper gauge what kind of revenue can be generated. As far as threat is concerned, there is no threat as per se.

Speaker #2: Right now, as we stand, the Act has been passed by the Lok Sabha. It still awaits Rajya Sabha approval and still awaits the President's approval, and then the Gazette. Then we will know what kind of pricing and monetization the NPCI and RBI are allowing to be done.

Speaker #2: But know for sure that it's going to be on big merchants and for higher value transactions. But once the final data come in, then maybe we'll be able to prefer, George, what kind of revenue can be generated.

Speaker #2: As far as chat is concerned, there's no threat per se. There are options like UPI, which runs deeply across all kinds of payments that happen.

Vishwas Patel: There are options like UPI, which runs deeply across all kind of payments that happen. So there is something for everybody in the ecosystem to gain out of it. There is no consolidation on the acquiring side. On the issuing side, yes, where a lot of TPAPs have some base, but on the acquiring side, on the online acquiring side, it is quite evenly spread out. So we do have a significant 8% to 10% share of the overall market. So let us see, as and when monetization happen, it will be good only. It is an endeavor that we ourselves as a company and myself have been working on it to get that monetization bit going for the last couple of years. So finally, it is fructifying. Let us see.

Speaker #2: So, there is something for everybody in the system—in the ecosystem—to gain out of it. And there is no consolidation on the acquiring side.

Speaker #2: On the issuing side, yes, where a lot of TPAPs have some base. But on the acquiring side, on the online acquiring side, it's quite evenly spread out.

Speaker #2: So, we do have a significant 8–10% share of the overall market. So let's see—as and when monetization happens, it will be good only.

Speaker #2: It is a it is a endeavor that we ourselves as a company and myself have tried have been working on it to get that monetization bit going.

Speaker #2: For the last couple of years. So finally, it is 55. Let's see.

Speaker #4: Vishwas sir, congratulations on that. And sir, any update on the merchant onboarding and PayCentral? You know, how are we progressing?

Amish Kanani: Sure, sir. Congratulations on that. Sir, any update on the merchant onboarding and PayCentral.ai, how are we kind of progressing?

Speaker #3: It's still early days. In other words, the protocol is new. Internationally, I think it's growing a little bit faster than in India. I think the intent protocol is actually working fairly well.

Vishal Mehta: It is early days still. So in other words, the protocol is new. I think internationally it is growing a little bit faster than in India. I think the intent protocol is actually working fairly well. I think as far as using AI for merchant onboarding and productivity, I think there are three things that typically you can do with this. One is you can actually increase productivity significantly, which is AI is actually complementing the human, in terms of getting productivity through. I think there we have made massive amounts of progress. Second is replacing humans. I think it is dystopian, but it is not something you can rule out. So in other words, if you take it further, that particular opportunity can replace a human actually in the loop. Then the third thing is actually AI will end up doing things that you could technically not do in the past.

Speaker #3: I think, as far as using AI for merchant onboarding and productivity, there are three things that typically you can do with this.

Speaker #3: One is, you can actually increase productivity significantly, which is that AI is actually complementing the human. In terms of getting productivity through, I think there, we've made massive amounts of progress.

Speaker #3: Second is replacing humans. I think it's dystopian, but it's not something you can rule out. So, in other words, if you take it further, that particular opportunity can replace a human actually in the loop.

Speaker #3: And then the third thing is, actually, AI will end up doing things that you technically could not do in the past. For example, reconciliation of every single transaction as an audit.

Vishal Mehta: For example, reconciliation of every single transaction as an audit. I do not think that from that perspective, it was possible in the past. You could do sampling, you could do many more, but now you can. So just giving you an example of what you could do now. So we think that all these three things are happening as we speak. As far as consumers opting to actually transact using agents, that is still in the early phases.

Speaker #3: I don't think that, from that perspective, it was possible in the past. You could do sampling, you could do many more, but now you can.

Speaker #3: So, just giving you an example of what you could do now. We think that all these three things are happening as we speak.

Speaker #3: As far as consumers opting to actually transact using agents, that is still in the early phases.

Speaker #4: Sure, sir. Sir, last question before I fall back in the queue. You know, this quarter, we were saying that we were not chasing gross revenue, top-line growth, but net revenue.

Amish Kanani: Sure. Sir, last question before I fall back in the queue. This quarter, we were saying that you are not chasing gross revenue top-line growth, but a net revenue. Unfortunately, that number has not grown, and still we have been able to increase our operating profit, which seems to be coming more from compressing the expense line item. If you can explain what is happening there and what is the trend like. Should we be focusing more on gross revenue or net revenue? The guidance also, I think we have given it in terms of gross.

Speaker #4: But unfortunately, you know, that number has not grown. And still, we have been able to increase our operating profit. It seems to be coming more from, you know, compressing the expense line item.

Speaker #4: So, if you can explain, you know, what is happening there—and, you know, what is the trend like? Should we be focusing more on gross revenue or net revenue?

Speaker #4: Because the guidance also, I think we have given it in terms of gross revenue.

Speaker #3: Yeah, you should focus on net revenue, in our opinion, because that is the one which will perhaps give you the best indications in terms of how the company is progressing.

Vishal Mehta: Yeah, you should focus on net revenue in our opinion, because that is the one which will perhaps give you the best indications in terms of how the company is progressing. There are certain specifics that do take up, including the ones that we talked about, which is distribution of credit and so on and so forth, and that should all pour back directly into the net revenue. We think that that is something that one should definitely take a look at. Gross revenue may fluctuate based on mix and other specifics.

Speaker #3: You know, yeah, we will—you know, there are certain specifics that do take up, including the ones that we talked about, which is distribution of credit and so on and so forth.

Speaker #3: And that should all pour back directly into the net revenue. So we think that is something one should definitely take a look at.

Speaker #3: Gross revenue may fluctuate based on mix and other specifics.

Speaker #4: Sure, sir. So the operating EBITDA margins, the operating revenue margins, are increasingly coming more from the expense line item, right, sir?

Amish Kanani: Sure, sir. So the operating revenue margins are increasing more from the expense line item, right, sir?

Speaker #3: Yes. That's right.

Vishal Mehta: Yes, that's right.

Speaker #4: Sure.

Amish Kanani: Sure.

Speaker #3: Yeah.

Vishal Mehta: Yeah.

Speaker #4: Sure. All the best. Thanks, sir. All the best.

Amish Kanani: Sure. All the best. Thanks, sir. All the best.

Speaker #1: Thank you. We will take the next question from the line of Deepesh from Manya Finance. Please proceed.

Operator: Thank you. We take the next question from the line of Deepesh from Manya Finance. Please proceed.

Speaker #2: Hi. Am I audited? Hello? Yes, you are. Okay.

[Analyst] (Manya Finance): Hi, am I audible? Hello.

Vishal Mehta: Yes, you are.

Speaker #3: Yeah, yeah, yeah.

[Analyst] (Manya Finance): Okay.

Vishal Mehta: Yeah.

Speaker #2: Yeah. On the enterprise SLM, private GPT, there's a new, unproven line competing against the well-capitalized global players like OpenAI and Anthropic. So, what is the go-to-market strategy or the target customer, and the expected revenue contribution timeline?

[Analyst] (Manya Finance): Yeah. On the enterprise SLM private GPT, there is a new unproven line competing against the well-capitalized global players like OpenAI, Anthropic. What is the go-to-market strategy or the target customer and the expected revenue contribution timeline?

Speaker #3: So we find that SLMs are very good at solving specific problems. A lot of it is, actually, if you come to think of it—and if you try it out—you can increase, I mean, you must be a user of many of the LLMs.

Vishal Mehta: SLMs are very good at solving specific problems. A lot of it is actually, if you come to think of it and if you try it out, you can increase. You must be user of many of the LLMs, where if you keep on prompting, you actually get much better results. In this particular instance, what you do is you take data which is specific to a particular company, you vectorize it, you build out knowledge graphs on top of it, SLMs, and then some application layers. We find that enterprises where data is critical, financial institutions, critical operations in some ways, they would all want this kind of a setup, which is SLM driven. I think the opportunity is significantly large. It is still in early phases. I think it actually reduces the token cost also significantly.

Speaker #3: But if you keep on prompting, prompting, prompting, you will actually get much better results. In this particular instance, what you do is you take data that is specific to a particular company, you vectorize it, you build out knowledge graphs on top of it, SLMs, and then some application layers.

Speaker #3: We find that enterprises—like those where data is critical, such as financial institutions or operations that are mission-critical—in some ways, they would all want this kind of setup, which is SLM-driven.

Speaker #3: I think the opportunity is significantly large. You know, it is still in the early phases. I think, you know, it actually reduces the token cost also, significantly.

Speaker #3: And what we realize is that many of these companies can solve a lot of problems by building workflows. You don't even have to use tokens, and then perhaps optimize it using SLMs.

Vishal Mehta: What we realize is that many of these companies, they can solve a lot of problems building workflows. You do not even have to use tokens and then perhaps optimizing it using SLMs. That becomes specific to that particular setup. We think that, how do we productize it is the bigger opportunity. If we are able to give some kind of a DTX and something which consumers and enterprises can start utilizing, it becomes valuable. In terms of impact to our business is concerned, I think it is about anywhere from 9 to 18 months out, where you will start seeing some good impact, we believe.

Speaker #3: And that becomes specific to that particular setup. So we think that, you know, it's—I mean, how do we productize it—is the bigger opportunity.

Speaker #3: And if we are able to give some kind of a DTX, and something which consumers and enterprises can start utilizing, it becomes valuable.

Speaker #3: In terms of impact to our businesses concerned, I think it's about anywhere from nine to eighteen months out where you'll start seeing some good impact.

Speaker #3: We believe.

Speaker #2: Right. And what is the exposure on the token? The data which we use is the LLMs. What will be a risk on the token prices?

[Analyst] (Manya Finance): Right. What is the exposure on the token, which uses the SLMs? What will be at risk on the token prices, and how has been the trend of the token prices right now for us?

Speaker #2: And how has the trend of the token prices been right now for us?

Speaker #3: The token is slightly inflationary—you know that. So, in other words, I mean, there are lots of optimizations one can do in that area, in that space.

Vishal Mehta: Tokens, slightly inflationary, you know that. So in other words, there's lots of optimizations that one can do in that area, in that space. There's new stuff happening on a daily basis. I think, for us, and typically infrastructure tokens and so on and so forth, for our internal use, of course we'd spend, but for the ones that we give to our clients would actually end up paying that. So, we pass on the cost. It's a pass-through for us, typically speaking. But if you think about SLMs and if you have this kind of a fabric, then your token cost falls by about one-tenth of what you would typically see because the data is actually somewhat air-gapped. It's not going out. It's within the premises. So, the utilization and so on and so forth is significantly improved with this particular setup.

Speaker #3: You know, and then there's new stuff happening on a daily basis. So I think, you know, for us, and, you know, typically, infrastructure tokens and so on and so forth, for our internal use, of course, we'd spend.

Speaker #3: But, you know, for the ones that we give to our clients, clients would actually end up paying that. So, we pass on the cost.

Speaker #3: It's a pass-through for us, typically speaking. You know, but if you think about SLMs, and if you have this kind of a fabric, then token cost falls by about one-tenth of what you would typically see, because you don't have to—the data is actually somewhat air-gapped.

Speaker #3: It's not going out; it's within the premises. And so, you know, the utilization and so on and so forth is significantly improved, you know, with this particular setup.

Speaker #3: So, I mean, the way we see the opportunity is that, you know, for critical infrastructure, for financial data, for many others, the utilization of LLM will be limited.

Vishal Mehta: The way we see the opportunity is that, for critical infrastructure, for financial data, for many others, the utilization of LLM will be limited because of the data security concerns. It will move towards the SLM framework, and that is what most companies would end up working on. That is the opportunity that we believe will perhaps work as well, but if we can actually productize it's even bigger.

Speaker #3: Because of the data security concerns, you know, it will move towards the SLM framework, and that is what most companies would end up, you know, working on.

Speaker #3: That is the opportunity that we believe will perhaps work as well. But if you can actually productize it, it's even bigger.

Speaker #2: Right. And about Radius Pay, now it's still pre-launch, and the UAE and RBI licenses were only newly received. How much of the FY27 growth guidance is already assumed?

[Analyst] (Manya Finance): Right. About Rediff Pay, now still pre-launch and the UAE and RBI licenses only newly received. How much of the FY27 growth guidance is already assumed and the contribution from these unlaunched or newly launched businesses versus being a pure core CCAvenue to it?

Speaker #2: And the contribution from these unlaunched or newly launched businesses, versus being a pure core CCAvenue-driven?

Speaker #3: I think we've not assumed much from Radius Pay because it's a UPI payment option. So, for FY27 guidance, we have not assumed meaningful, you know, contribution from that.

Vishal Mehta: I think we've not assumed much from Rediff.com Pay because it's a UPI payment option. So for FY27 guidance, we have not assumed the meaningful contribution from that, if it makes sense to you.

Speaker #3: If that makes sense to you.

Speaker #2: Right. And I mean, as the previous participant said that, you know, we are planning to list radius as a separate entity. What has the revenues and will be list radius as a AI provider or we will list it as a more of radius pay and a, you know, very similar to the Paytms of the world?

[Analyst] (Manya Finance): Right. As the previous participant said that we are planning to list Rediff.com as a separate entity. What has been the revenues? Will we list Rediff.com as an AI provider, or we will list it as more of Rediff Pay and very similar to the Paytm of the world?

Speaker #3: Radius has three large opportunities. One is Radius Fund, which is the enterprise side of the business, which has emails, commerce, you know, in some ways, CRM, HRM, SERP.

Vishal Mehta: Rediff.com has three large opportunities. One is Rediff One, which is the enterprise side of the business, which has emails, commerce, in some ways, CRM, HRMS, ERP. Think of it as something similar to Zoho One in some ways. I think that that's one opportunity that Rediff.com will go after. Second is Rediff Pay, which is what you mentioned, which is more like the UPI payment with fintech opportunities, wealth management and many others. The third opportunity is we describe as content and Rediff TV, which is not the linear TV that we talk about. It's streaming with a lot of content. We think that it is not going to be the legacy-only business. It will be AI-enabled, new version of what we think consumers and business will connect into.

Speaker #3: Think of it as something similar to Zoho One in some ways. But I think that that's one opportunity that Radius will go after. Second is Radius Pay, which is what you mentioned, which is more like the UPI payment with fintech opportunities.

Speaker #3: Wealth management and many others. And the third opportunity is what we describe as content and Radius TV, which is not the linear TV that we talk about.

Speaker #3: It's streaming with a lot of content, so we think that it is not going to be a legacy-only business. It will be an AI-enabled new version of what we think consumers and businesses will connect into.

Speaker #2: So how is it going to be different from—I mean, sorry, I'm sure you wanted to add—but how is it going to be different from our existing company?

[Analyst] (Manya Finance): How is it going to be different from. Sorry, I'm sure you wanted to add, but how is it going to be different to our existing company?

Speaker #3: That consumer-facing payments, this is, you know, acquiring is in CC Avenue. So merchant acquiring is the, you know, so Avenues AI will focus on the B2C payments.

Vishal Mehta: That's consumer-facing payments. This is acquiring is in CCAvenue. Merchant acquiring is the. AvenuesAI will focus on the B2C payments, consumers paying to businesses, and Rediff is going to focus on the consumer side of payments. You see, payments is two different elements. Today, for example, a consumer does not download a CCAvenue app and utilize the app. They will go to the merchant where they will find the payment options, and they will pay using CCAvenue. We are on the business side and the acquiring side. We are not on the consumer side. Rediff is on the consumer side.

Speaker #3: I mean, consumers paying to businesses. And Radius is going to focus on the consumer side of payments. You see, payments has two different elements.

Speaker #3: Today, for example, a consumer does not download a CC Avenue app and utilize the app. They will go to the merchant, where they will find payment options and they will pay using CC Avenue.

Speaker #3: So, we are on the business side and the acquiring side. We are not on the consumer side. Radius is on the consumer side.

Speaker #2: Right. And what about the AI? I mean, you've excellently explained how the payment module will be for B2C, and with Avenues AI, B2B. But what about the AI part of our company?

[Analyst] (Manya Finance): Right. What about the AI? You have excellently explained how the payment module will be from B2C and with AvenuesAI, B2B. What about the AI part of our company? Will that entirely go to Rediff.com?

Speaker #2: Will that entirely go to Radius?

Speaker #3: AI is completely a part of Avenues AI. So, Phonetic is being merged into Avenues AI, which has NeuroMind as a subsidiary—a 100% subsidiary.

Vishal Mehta: AI is completely as part of AvenuesAI. Phronetic AI is being merged into AvenuesAI, which is Neuromind as a subsidiary, which is 100% subsidiary, is merged into AvenuesAI now. So the entire AI vertical of people and everyone else will be part of AvenuesAI.

Speaker #3: It is merged into Avenues AI now, so the entire AI vertical of people and everyone else will be part of Avenues AI.

Speaker #2: Great, great. Thank you so much, guys, and all the very best.

[Analyst] (Manya Finance): Great. Thank you so much, guys, and all the very best.

Speaker #1: Thank you. We will take the next question from the line of Cody Shankar Dalal from Creator Capital. Please proceed.

Operator: Thank you. I take the next question from the line of Gauri Shankar Dalal from Creator Capital. Please proceed.

Speaker #2: Hello, sir. Yes, hello. Yeah. So, sir, I had a couple of queries. First of all, as I said, margins have expanded sharply to around 68% of net revenue versus 47% a year ago.

Gauri Shankar Dalal: Hello, sir.

Vishal Mehta: Yes.

Gauri Shankar Dalal: Hello. Yeah. Sir, a couple of queries I had. First of all, EBITDA margins have expanded sharply to around 68% of net revenue versus 14% a year ago. What will be the sustainable margins, post all the investments into AI and the platforms have been done?

Speaker #2: So, like, what would be the sustainable margins? Like, post all the investments into AI and platforms have been done?

Vishal Mehta: We have given guidance for the year, this year. If you look at the press release and our guidance, we are projecting revenues to come in between INR 11,000 to 13,000 crores and earnings per share from INR 75 to INR 950. That is net of the capital that has been allocated to be spending on AI and platforms. I think that we have adopted the approach of ensuring that we are not chasing the short-term profitability. We are looking at the long-term impact, but we are going to track and monitor what happens in the short term very sharply. We have a slightly disciplined approach, and we have put certain guardrails. We would definitely be increasing our intent to forward invest in AI, and that will continue on.

Speaker #3: We've given guidance for the year. This year, so if you look at, you know, the press release and our guidance, we're projecting, you know, revenues to come in between ₹11,000 to ₹13,000 crores.

Speaker #3: And earnings per share, from ₹8.75 to ₹9.50. That is net of the capital that has been allocated to be spent on AI and platforms.

Speaker #3: And I think that, you know, we've adopted the approach of ensuring that we are not chasing short-term profitability. We are looking at the long-term impact, but we're going to track and monitor what happens in the short term very closely.

Speaker #3: So, we have a slightly disciplined approach and we have put certain guardrails in place. But yes, we will definitely be increasing our intent to forward invest in AI.

Speaker #3: And that will continue on. I think, as far as the EBITDA for the quarter is concerned, and next quarter’s and the full year, you know, we’ve given the guidance so you can actually be able to, you know, look at whatever EBITDA margins have been compared to PAT and come up with the EBITDA versions.

Gauri Shankar Dalal: Okay.

Vishal Mehta: I think as far as the EBITDA for the quarter is concerned and next quarters in the full year, we have given the guidance, so you can actually be able to look at whatever EBITDA margin has been compared to PAT and come up with the EBITDA versions.

Speaker #2: Okay. And apart from this, as you have mentioned, the gross revenue target for the entire financial year has been increased by about 35 to 60 percent, from approximately ₹8,000 crore to ₹11,000 to ₹13,000 crore.

Gauri Shankar Dalal: Okay. Apart from this, as you have mentioned, the growth in the target for the entire financial year, it has been increased about 35% to 60%, from INR 8,000 crore approximately to INR 11,000 crore to INR 17,000 crore. Okay? The EPS is flat. The guidance in the EPS part is flat. Considering the PAT margin of 57%, the EPS should also have grown by around 10% or so. Why the EPS is flat in the guidance that you have shared?

Speaker #2: Okay, but the EPS is flat. The guidance in the EPS part is flat, so considering the PAT from 57%, the EPS should also have grown by around 20% or so, while the EPS is flat in the guidance that was shared.

Speaker #3: Yeah. So one thing that we think we want to continue on is, and we've got a philosophy and it's pretty simple: we want to protect the earnings of the core business.

Vishal Mehta: Yeah. One thing that we think we want to continue on is, we've got a philosophy, and it's pretty simple, that we want to protect our earnings of the core business. We will want to forward invest incremental cash generation to build the business of tomorrow, which is actually in the AI and other areas. We expect the core business to remain strong and profitable and generate increasing operating accruals. We believe that beyond a certain amount, the incremental capacity will be selectively reinvested into AI, transaction intelligence and other high conviction growth opportunities that we have. If you think about our philosophy and our approach, the thing is that we want to grow the core. We want to generate incremental accruals. We want to reinvest selectively in AI.

Speaker #3: And we will want to forward-invest incremental cash generation to build the business of tomorrow, which is actually in AI and other areas.

Speaker #3: So we expect the core business to remain strong and profitable and generate increasing operating accruals. We believe that, beyond a certain amount, the incremental capacity will be selectively reinvested into AI.

Speaker #3: Transaction intelligence and other high-conviction growth opportunities that we have. So, if you think about our philosophy and our approach, the thing is that we want to grow the core, we want to generate incremental accruals, we want to reinvest selectively in AI, we want to build out all new revenue streams, and then we want to compound earnings over time.

Vishal Mehta: We want to build out all new revenue streams, and then we want to compound earnings over time. You're right, I think that we believe that additional accruals that come in as part of our build-out will be reinvested back. We want to think about. If you think about our ambition from 2027 to 2029, it's not simply about maximizing earnings. It is to emerge at the end of the period with both a very strong earnings base and a significantly large AI-led business. You can expect that we'll invest that incremental accruals back into the business of where we have very high conviction.

Speaker #3: So you're right. I think that, you know, we believe that additional accruals that come in as part of our build-out will be reinvested back.

Speaker #3: And, you know, we want to think about—if you think about our ambition from '27 to '29, you know, it's not simply about maximizing, you know, earnings.

Speaker #3: It is to emerge at the end of the period with both a very strong earnings base and a significantly large AI-led business. And so, you can expect that we'll invest those incremental accruals back into the business, where we have very high conviction.

Gauri Shankar Dalal: Okay. Got it.

Speaker #3: So it's a conscious decision that we want to compound today's profitability while investing in the business that can drive tomorrow's growth.

Vishal Mehta: So it is a conscious decision that we want to compound today's profitability while investing in the business that can drive tomorrow's growth.

Speaker #2: Sure, got it. And apart from this, I have one more query. The net revenue has declined around 3% year on year, and 1% quarter on quarter.

Gauri Shankar Dalal: Sure. Got it. Apart from that, one more query. The net revenue has declined around 3% year-on-year and 1% quarter-on-quarter. Can you give us some reasons in the favor about the net revenue which has decreased?

Speaker #2: Can you give us some reasons in favor of why the net revenue has decreased?

Speaker #3: Yeah, it's, you know, typically the first quarter is a slightly low quarter. You know, second and third quarters are slightly better because of festival seasons and others.

Vishal Mehta: Yeah. This typically Q1 is a slightly low quarter. Q2, Q3 are slightly better because of festival seasons and others. We believe that as more and more transactions happen through our platform, we have slightly compression as far as our margins are concerned. If you look at our take rates, they have compressed slightly, and that has impacted our net revenue. But we believe as we build out other opportunities, which is somewhat credit-based distribution, many others, that we should be able to pick up. We remain slightly appropriately conservative in terms of how we think through this. But yeah, you are right. I think it is a combination of payments being a competitive business. Second, our aspiration to grow payments and increase the core profitability and pull in volumes.

Speaker #3: And we believe that, you know, as more and more transactions happen through our platform, we will see slight compression as far as our margins are concerned.

Speaker #3: If you look at our take rates, they have compressed slightly, and that has impacted our net revenue. But we believe as we build out other opportunities — which is somewhat credit-based distribution, among many others — that we should be able to pick up. And we remain slightly, appropriately conservative in terms of how we think through this.

Speaker #3: But yeah, you're right. I think it's a combination of payments being a competitive business; second, our aspiration to grow payments and increase the core profitability and pull in volumes.

Speaker #3: And third is, we think that with that, we can build out a lot of other revenue streams, which potentially will offset costs and help us increase our margins in the medium to long term.

Vishal Mehta: Third is, we think that with that, we can build out a lot of other revenue streams, which potentially will offset and help us increase our margins in the medium to long term.

Speaker #2: Right. Got it.

Gauri Shankar Dalal: Right. Got it.

V. Ravi: Vishal, can I comment? Vishal, just to comment. Gauri, I would also like to add one thing. If you notice, though the net revenue may be slightly flat-ish or slightly gone down, the EBITDA has gone up by 41%, and the EBITDA percentages have gone, which was 47% in year-over-year in Q1 FY26, is now 68%. So concentration has been on improving the absolute profitability and the margins therein based on the gross revenues and the take rates, not necessarily on the net revenue. So that is a positive part of the entire results.

Speaker #1: Can I comment? Vishalbhai just came in. Gowri, what I would also like to add is one thing. If you notice, though the net revenue may be slightly flat or has slightly gone down, the EBITDA has gone up by 41%, and the EBITDA percentage, which was 47% year-over-year in Q1 FY26, is now 68%.

Speaker #1: So, the concentration has been on improving the absolute profitability and the margins therein, based on the gross revenues and the take rate—not necessarily on the net revenue.

Speaker #1: So, that is a positive part of the overall results.

Speaker #2: Yeah, that's right. But the only issue with this is that since there's a lot of investment into AI automation and all, that's where the EBITDA margins—we're not able to really figure out what the ideal sustainable EBITDA margins going forward would be.

Gauri Shankar Dalal: Yeah, that is right. But the only issue in this was that there have been a lot of investments into AI automation and all. That is where the EBITDA margins and all, we are not able to clearly figure out what is the ideal sustainable EBITDA margins going forward, excluding all the AI investments.

Speaker #2: Excluding all the AI investments.

Speaker #3: The guardrails that you can establish is about 15%. That's like the guardrail, if you ask me. You always want to have guardrails, which is: we never want to go below that certain amount.

Vishal Mehta: The guardrails that you can establish is about 15%. That is the guardrails, if you ask me. We always want to have guardrails, which is we never want to go below that certain amount. Rather than going into how much EBITDA we can improve and so on and so forth, we want to set up certain guardrails that enable us to ensure that we continue with reinvesting into our future and maintain certain profitability in our core.

Speaker #3: You know, rather than going into how much EBITDA we can improve, and so on and so forth, we want to set up certain guardrails that enable us to ensure we continue reinvesting into our future and maintain certain profitability in our core.

Speaker #2: Right. Sure.

Gauri Shankar Dalal: Right. Sure.

Speaker #3: It's not a target; it's just a guardrail. So.

Vishal Mehta: It is not a target, it is just a guardrail.

Speaker #2: Sure, sure. And just a last question—the e-commerce platform business, what was flagged last quarter has flagged to slightly higher, and the diagonal on a high-margin revenue.

Gauri Shankar Dalal: Sure. Just a last question. The e-commerce platform business was flat last quarter, has flat to slightly higher and a decline on a high margin revenue. When will the promised platform AI results show up in the growth numbers? What about the growth of this platform business?

Speaker #2: So when will the promised platform AI rewards show up in the growth numbers? And what about the growth of this platform business?

Vishal Mehta: We expect that. We are investing quite a bit in that area, and some meaningful results should start showing up in Q3 timeframe. You can expect that maybe some movement will start in the Q3, Q4 timeframe for us in that space.

Speaker #3: So, we expect that—as you know—we're investing quite a bit in that area, and some meaningful results should start showing up in the Q3 timeframe.

Speaker #3: So you can expect that maybe some movement will start in the Q3–Q4 timeframe for us in that space.

Speaker #2: Sure, sure. Thank you so much. Thank you. All the best.

Gauri Shankar Dalal: Sure. Thank you so much. Thank you. All the best.

Speaker #4: Thank you. We'll take the next question from the line of Dinesh Kumar from Covered Investment. Please proceed.

Operator: Thank you. We will take the next question from the line of Dinesh Kumar from Coverit Investment. Please proceed.

Speaker #5: Hello. Am I audible, ma'am?

Dinesh Kumar: Hello. Am I audible, ma'am?

Speaker #2: Yes.

Vishal Mehta: Yes.

Speaker #5: Hello. Am I audible, sir? Yeah. Thank you. Sir, I wanted to reflect on what is that we have on Rediff's IPO timeline, sir. One second on and what kind of AI investment or AI infrastructure are we building or next like you have guided for 2007, 27, 29, we are focusing on the more on station for business.

Dinesh Kumar: Hello. I am audible, sir. Yeah. Thank you. Sir, I wanted to reflect on what that we have on Rediff.com's IPO timeline, sir, one. Second one, what kind of AI investment or AI infrastructure are we building for next, like we have guided for 2027, 2029. We are focusing on the more of our business. So what kind of AI infrastructure are we building upon, sir? What kind of returns on net basis we see in EBITDA and PAT margins are we looking forward?

Speaker #5: So, what kind of AI infrastructure are we building upon, sir? And what kind of returns, on a net basis, do you see? In EBITDA, EBITDA, and PAT margins, what are we looking forward to?

Speaker #3: So, I'll take the second question. I think, you know, as far as the AI part is concerned—and AI is a very large topic—so we want to work only and keep on keeping our head straight in terms of not just investing in AI, but we want to actually make sure that there is an investment in the harvesting cycle as well.

Vishal Mehta: I will take the second question. I think, as far as the AI part is concerned, AI is a very large topic. We want to work only and keep our heads straight in terms of not just investing in AI, but we want to actually make sure that there is an investment and a harvesting cycle as well. Our thesis in this is that there is this whole infrastructure-related AI investments, which is not what we want to pursue as far as data centers and so on and so forth is concerned. It is huge amounts of CapEx and returns over a period of time. That is not what the company wants to pursue at the moment. We may invest selectively in smaller capacities, but not the large ones. That is one.

Speaker #3: So our thesis in this is that, you know, there is this whole infrastructure-related AI investment, which is not what we want to pursue. As far as data centers and so on and so forth are concerned, it's high, huge amounts of CapEx and, you know, returns over a period of time.

Speaker #3: So, that is not what the company wants to pursue at the moment. You know, we may invest selectively in smaller capacities, but not the large ones.

Speaker #3: So that's one. As far as, you know, we've recently, in our release, mentioned that we want to build out transaction intelligence core and think of it as, in some ways, an alternative risk core.

Vishal Mehta: As far as the. We have recently, in our release, mentioned that we want to build out a transaction intelligence score, and think of it as, in some ways, alternative risk score. It is not a replacement to any of these scores, but it is actually more about how we start with transactions. We have universe of transactions. That is our biggest advantage. We have frequency, transaction value, merchant category, tickets, repeat purchase, refunds, chargebacks, you name it. We want to be able to evaluate using AI, how does this business behave financially, or how does this person behave financially? For that, you need to create this whole financial behavior graph, which is build out graph for person, device, bank accounts, merchant transactions, refunds, and the whole payment behavior. Once you do that, you can build out certain reliability scores.

Speaker #3: It's not a replacement for any of the scores, but it's actually more about how you do. We start with transactions. We have a universe of transactions.

Speaker #3: That is our biggest advantage. We have frequency, transaction value, merchant category, tickets, repeat purchase, refunds, chargebacks—you name it. And, you know, we want to be able to evaluate, using AI, how does this business behave financially or how does this person behave financially?

Speaker #3: So, for that, you need to create this whole financial behavior graph, which is built out—you know, a graph for person, device, bank accounts, merchant transactions, refunds, and the whole payment behavior—and once you do that, you can build out certain reliability scores. And I think these are the ones which we want to pursue, which are slightly more applied in nature.

Vishal Mehta: I think these are the ones which we want to pursue, which is slightly more applied in nature. You can think of it as like an SLM, a small language model. Once you apply them, then there is a monetization, because if it is meaningful and it gives you good insights in terms of how the merchant or the individual performs, then perhaps there is a score and there could also be an identity and a fraud score associated with certain things, which is meaningful for us. That gives you some kind of an indication on how we can monetize on it. Then consented external financial data that can potentially be part of the system with training data sets. We are building out all these predictive models.

Speaker #3: You can think of it as like an SLM, a small language model. And once you apply them, then there is a monetization, because if it's meaningful and it gives you good insights in terms of how the merchant or the individual performs, then perhaps there is a score in that. There could also be an identity and a fraud score associated with some things, which is meaningful for us.

Speaker #3: But that gives you some kind of an indication on how we can monetize it. And then, consented external financial data could potentially be part of the system with training data sets.

Speaker #3: So, we are building out all these predictive models. So you have logistic regression, with gradient boosting, with neural models, and graphs, and LLMs enhanced.

Vishal Mehta: You have logistics regression with gradient boosting, with neural models and graphs and LLMs enhanced, giving you some indication of what is the probability of certain activities. We think that these kinds of things will be highly interesting, and we have a huge edge over it because none of the LLMs can actually replicate what we can do. They do not have the data, and they will never have the data as well. We think that that becomes a differentiator in our opinion on how we should differentiate. Then if you build out guardrails and explanation layers and create some kind of a version of what it would look like, then it becomes very meaningful. I am just giving you a perspective of how we think through AI, not necessarily. What we will not do is we will not invest into hundreds of megawatts of data center infrastructure.

Speaker #3: By giving you some indication of what is the probability of certain activities, we think that these kinds of things will be highly interesting. We have a huge edge over this because none of the LLMs can actually replicate what we can do.

Speaker #3: They don't have the data, and they will never have the data as well. And so we think that that becomes a differentiator, in our opinion, on how we should differentiate, because—and then if you build out guardrails and explanation layers and create some kind of a version of what it would look like, then it becomes very meaningful.

Speaker #3: So I'm just giving you a perspective of how we think through AI. Not necessarily what we'll not do is, we'll not invest into hundreds of megawatts of data center infrastructure.

Speaker #3: We may selectively go and invest into smaller data center capabilities. And number two, we will work on application layers, SLMs, which potentially enable us to assimilate all this information and build out.

Vishal Mehta: We may selectively go and invest into smaller data center capabilities. Number two, we will work on application layers, SLMs, which potentially enable us to assimilate all this information and build out. That is the thesis that we carry. I hope this helps you and answers your question.

Speaker #3: So that's the thesis that we carry. I hope this helps you and answers your question.

Speaker #5: Okay, yeah. We have seen that most of our passage of the UPI MDR directly opens the road to monetization of high merchant payment scores, combined with Rediff's consumer ecosystem and international licenses.

Dinesh Kumar: Okay.

Vishal Mehta: Yeah.

Dinesh Kumar: Recently, we have seen a Lok Sabha passage of the UPI MDR directly opens the door to monetization of high merchant payment flows, combined with Rediff.com's consumer ecosystem and financial licenses. So the strategic engine what output benefit or output that kind of thing?

Speaker #5: The strategy engine benefits from this kind of.

Vishal Mehta: I am slightly sorry, I was not able to hear the question properly.

Speaker #3: Slightly sorry, I was not able to hear the question properly.

Speaker #5: Yeah, I'll just repeat. UPI MDR bill is one of the points of discussion in the notes. What kind of results or benefits are we expecting from such kind of mapping?

Dinesh Kumar: Yeah. I will just repeat. UPI MDR bill is one of the points of discussion in the Lok Sabha. What kind of results or benefits are we expecting from such kind of enactment?

Speaker #3: See, I'll tell you. I think it's still early days. Like Vishwas mentioned, there are certain guidelines that are expected to come in. Consumer-to-consumer, there is no MDR.

Vishal Mehta: See, I will tell you, I think it is still early days, like Vishwas mentioned. There are certain guidelines that are expected to come in. Consumer to consumer, there is no MDR. To businesses, there will be an MDR. It is yet to be ascertained what it will end up looking like. I think that there is a benefit for both CCAvenue and Rediff Pay if that materializes. The extent to which it will benefit, we do not know. It is also based on a competitive scenario. In other words, there are many large incumbents, many who can actually subsidize payments. So we have to see what is the competitive landscape, what does the regulation end up looking like. But one thing we know is that, yeah, it will be meaningfully positive. It cannot be. It is not going to continue free. Yeah.

Speaker #3: To businesses, there will be an MDR. It's yet to be ascertained what it will end up looking like. I think that there is a benefit for both CC Avenue and Rediff Pay if that materializes.

Speaker #3: The extent to which it will benefit, we don't know. It is also based on a competitive scenario. In other words, there are many large incumbents, many who can actually subsidize payments.

Speaker #3: So we have to see what the competitive landscape is, and what the regulation ends up looking like. But one thing we know is that, yeah, it will be meaningfully positive.

Speaker #3: It can't be. It is not going to continue free. Yeah.

Speaker #5: Okay. So in the last quarter, we had mentioned that we are targeting somewhere between 50 to 500 crores of PAC. What kind of timeline are we looking at for that estimation?

Dinesh Kumar: Okay. Sir, in the last quarter, we had mentioned that we are targeting some INR 50 to 500 crores of PAT. What kind of timeline are we looking for that kind of estimation? Second, sir, promoter hold also, we have not seen a substantial holding and there is no sign of any increment. Can you just give us a timeline or that sort when promoters are willing to participate in the run or participate in the equity? These two questions, sir.

Speaker #5: And second, sir, from what you hold also, we have not seen a substantial— we have not seen a substantial holding, and there is no sign of any increment.

Speaker #5: Can you just give us a timeline, or something of that sort, when promoters are willing to participate in the run, or participate in the equity?

Speaker #3: Sure. See, as promoters, we are long-term investors. So, that much I can tell you. I think whatever is material information out there is what is already available in the open.

Vishal Mehta: Sure. See, promoters are long-term investors, so that much I can tell you. I think whatever is material information out there is what is already out there in the open. But yeah, we are long-term, as far as the promoters are concerned. In terms of the other question on PAT, I think one decision that you can count on us is that we are not going to look at just a spike in one time setup. Theoretically, it is like a build-out and our investments in AI and some of the forward-looking things, we would rather invest in that and build out a long-term, sustainable vision for the company. So we will not be looking at short-term spike in profitability, but we would rather keep on investing, and it is a conscious capital allocation decision.

Speaker #3: But yeah, we are long-term as far as the promoters are concerned. In terms of the other question on PAC, I think one decision that you can count on us for is that we are not going to look at just a spike in one-time setup.

Speaker #3: We want to have a—I mean, theoretically, it's like a build-out. And our investments in AI and some of the forward-looking things, we would rather invest in that and build out the long-term, sustainable vision for the company.

Speaker #3: So, we will not be looking at a short-term spike in profitability, but we would rather keep on investing. It's a conscious capital allocation decision, but we want to focus on EPS and make sure that there are guardrails, and we want to keep on investing in our future.

Vishal Mehta: But we want to focus on EPS and make sure that there are guardrails, and we want to keep on investing in our future. Three years ago, we had made the call that we want to reach to a billion dollars in revenues. We made that call somewhere in 2023, 2024, and I think we are there. We said in three years, we will reach a billion dollar in revenue. So we have been fortunate to get there. I think now we believe that we want to continue building out and investing into the future. If we do not, then I think we won't have a long-term. We think that if we keep that disciplined approach to capital allocation and put guardrails, then we can build out something very meaningful and maximize the three-year earnings. So I think not the immediate quarter and the immediate year earnings.

Speaker #3: Three years ago, we made the call that we wanted to reach $1 billion in revenues. We made that call somewhere in '23.

Speaker #3: And I think we are there, and we said in three years we’d reach a billion dollars in revenue. So, we've been fortunate to get there.

Speaker #3: I think now we believe that we want to continue building out and investing into the future. If we don't, then I think we won't have a long term, and we think that if we keep that disciplined approach to capital allocation and put guardrails in place, we can build out something very meaningful and maximize the three-year earnings.

Speaker #3: So I think not the immediate quarter and the immediate year earnings. We have given guidance of EPS, which you could follow for this year.

Vishal Mehta: We have given guidance of EPS, which you could follow for this year, but we want to look at what the company should look like three years from now, that is what we want to keep on investing into.

Speaker #3: But we want to look at what the company should look like three years from now, and that is what we want to keep investing in.

Speaker #5: Okay, sir. So the last question: What are the good things that you have planned out and have been executed or have happened during the previous years—'24, '25, '26?

Dinesh Kumar: Yes, sir. Sir, the last question. What are the good things which you have planned out and have been executed or have happened during the previous year, 2024, 2025, 2026? What are some things that you had planned out which didn't go well? Can you just mention something which was planned out and which went well and something which was planned out and didn't go the way you wanted it to go? I think a few business decisions.

Speaker #5: And what are some things that you had planned out which can be delivered? So can you just mention something which was planned out and went well, and something which was planned out and didn't go the way you wanted it to go?

Speaker #5: I think key business decisions.

Speaker #3: Yeah, I think we could have expanded internationally more last year. I think, given the macroeconomics, it's had an impact. And so, I think that we would have liked to be more aggressive in terms of our international growth.

Vishal Mehta: Yeah, I think we could have expanded internationally more last year. I think given the macroeconomics, it's had an impact. I think that we would have liked to be more aggressive in terms of our international growth, something that we'd like to take up this year. That's one. I think we believe we can do a lot more in the AI setup. We could have made certain larger investments to get to market and do things faster. We think that we can still continue doing that. I think lots of things are changing in that, but again, we think we could have done that better. Third is, we should have worked more on ensuring that we can keep on building out the net take rates.

Speaker #3: Something that we'd like to take up this year, so that's one. I think we could—we believe we can do a lot more in the AI setup.

Speaker #3: We could have made certain larger investments to get to market and do things faster. We think that we can still continue doing that. I think lots of things are changing in that, but again, we think we could have done that better.

Speaker #3: And third is, we should have worked more on ensuring that we can keep on building out the net take rates. There, the incremental revenue from other activities that we've picked up should somewhat complement what we are doing in terms of going after growth.

Vishal Mehta: The incremental revenue from other activities that we've picked up should somewhat complement what we are doing in terms of going after growth. There's a slight latency because a lot of these investments are upfront. These are the things we think we could have improved. What we did well, I think we've done fairly well in growth and actual build-out of some of the Rediff.com systems and activities and being able to work on get the right folks to build out and also incremental productivity that we get using AI. I think our disciplined approach is what worked for us.

Speaker #3: And so there's a slight latency because a lot of these investments are upfront. So these are the things we think we could have improved.

Speaker #3: What we did well—I think we've done fairly well in growth and actually building out some of the Rediff systems and activities, and being able to work on getting the right folks to build out, and also the incremental productivity that we get using AI.

Speaker #3: So, I think our disciplined approach is, I think, what worked for us.

Speaker #5: Okay, so the last one: what kind of customer structures do we have, and what do our top five clients contribute to the revenue? Are we planning to increase that, or is it getting contracted and distributed more among the remaining, apart from the big five?

Dinesh Kumar: Okay. The last one, what is our customer structure, sir? Our top five clients contribute how much to the revenue? Are we planning to increase it, or is it getting contracted and distributed more on other remaining apart from the five big five? What is our concentration and what kind of diversification or what kind of strategy are we looking towards our top five or top 10 contributors to our revenue?

Speaker #5: So, what is our concentration, and what kind of diversification or what kind of strategy are we looking toward for our top five or top ten contributors to our revenue?

Speaker #3: Yeah. So you won't see CC Avenue on Amazon or some of the large merchants if you transact online. You'll see it in airlines and a few others, but not on the likes of Quick Commerce, Amazon, and others.

Vishal Mehta: Yeah. You won't see CCAvenue on Amazon or some of the large merchants. If you transact online, you'll see it in airlines and a few others, but not on the likes of Quick Commerce and Amazon, others. We think that going after the larger client base should be our strategy. We want to go as horizontal as possible, because when you start thinking about even credit scores and many others, and such alternative on a thin-file merchants, how do you enable? These transactions can give you a lot more information about them than any other thing. We think that going after a larger base should be our approach as we move forward. Larger clients, I think when we grow internationally, we want to go after large clients. Our domestic approach is slightly different compared to international.

Speaker #3: So we think that going after the larger client base should be of a strategy. We want to go as horizontal as possible because when you start thinking about even credit, credit scores and many others and such alternative on a thin file merchants, how do you enable in this transactions can give you a lot more information about them than any other thing.

Speaker #3: So, we think that going after a larger base should be our approach as we move forward. I think, from larger clients—I think when we grow internationally, we want to go after large clients.

Speaker #3: So, our domestic approach is slightly different compared to international. In international, because the size and scale of the digital industry are so large, if you look at the US, most of the transactions are digital in nature.

Vishal Mehta: In international, because the size and scale of the digital industry is so large. If you look at US, most of the transactions are digital in nature. I think, there we would like to work on those larger clients and larger opportunities. I think in India also, there will always be occasionally good clients that come our way, which is where if we are able to add value and we are able to grow, then I think we'll certainly. India is super competitive, as you can tell. We think that this thing will continue on. If you look at the merchant profile, we've actually mentioned several of the marquee clients in one of the slides in our presentation, so you can refer to that as well.

Speaker #3: And so I think there, we would like to work on those larger clients and larger opportunities. And I think in India also, there will always be, occasionally, good clients that come our way, which is where, if we are able to add value and we are able to grow, then I think we'll certainly— but India is super competitive, as you can tell.

Speaker #3: So we think that this thing will continue on. And if you look at the merchant profile, we've actually mentioned several of the marquee clients.

Speaker #3: In one of the slides in our presentation, so you can refer to that as well.

Speaker #5: Okay, sure. That is all my questions. Thank you, and all the best for the future.

Dinesh Kumar: Okay. That is all my questions. Thank you and all the best for the future.

Speaker #3: Thank ank you.

Speaker #2: Thank you. We will take the next question from the line of Pramukh from MyInvest Buddy. Please proceed.

Vishal Mehta: Thank you.

Operator: Thank you. We take the next question from the line of Pramukh from My Invest Buddy. Please proceed.

Speaker #5: Hi, so just a small question: how will you be different from Apple Pay or PayPal in the US? Okay, I will take that. Yeah.

[Company Representative] (MyInvestBuddy): Hi. Just a small question. How will you be different from Apple Pay or PayPal in the US?

Vishal Mehta: Okay, I will take that. Well, Apple Pay is more on the customer side on the phone where they tokenize their card and they use to pay the merchant. It is just an enabling form factor for doing a transaction and where their revenues will be coming is from the issuing side of the bank where they issue the cards. We are on the acquiring side, as far as CCAvenue is concerned, where we onboard merchants and other things. Like if you have seen in UAE and in India also, we have gone live with Apple Pay, where we enable the integration and the platform and the systems to the merchant, to enable them to collect their customers to pay through their Apple Pay.

Speaker #5: Yeah, so Apple Pay is more on the customer side, on the phone, where they tokenize their card and use it to pay the merchant.

Speaker #5: So, just enabling form factor for doing a transaction, and where their revenues will come in is from the issuing side of the bank who has issued the cards.

Speaker #5: We are on the acquiring side as far as CC Avenue is concerned, where we onboard merchants and other things. Like, if you have seen in the UAE and in India also, we have gone live with Apple Pay, where we enable the integration, the platform, and the systems to the merchant to enable them to collect their customers' payments through Apple Pay.

Speaker #5: So, Apple Pay is on the issuing side, which is just a form factor to enable customers to pay, while we are on the acquiring side.

Vishal Mehta: Apple Pay is on the issuing side, which is just a form factor to enable customers to pay, while we are on the acquiring side. We as hundreds of different options and different form factor, we do allow Apple Pay, Samsung Pay, in our systems in India and UAE, to accept payments on our platform. Is clear?

Speaker #5: So we have hundreds of different options and different form factors. We do allow Apple Pay and Samsung Pay in our systems in India and the UAE.

Speaker #5: To accept payments on our platform.

Speaker #3: Is clear?

Speaker #5: Got it, got it. And another question is on the war side: How has the war impacted our revenues? And what percentage of our growth comes from an increase in currency appreciation and what percentage from other factors?

[Company Representative] (MyInvestBuddy): Got it. Another question is on the war side. How has the war impacted our revenues, and what percentage of our growth come from increase in the currency appreciation and what percentage otherwise?

Speaker #3: See, I think from a macroeconomic perspective, potentially some growth in the Middle East would have been impacted as a result of the macroeconomic impact that should have been there.

Vishal Mehta: Yeah, I think from a macroeconomic perspective, potentially some growth in the Middle East would have been impacted as a result of the macroeconomic impact should have been there. We don't see it too much, though. It is there for sure. We think that should come back. People are going to pay utility bills and some travels will be impacted. Other than that, there's a local industry, local commerce, local people, so that should continue on. Anyone who has to pay rent, they have to pay rent, and so on and so forth. Internationally, yeah, we operate UAE, Saudi. They are two large areas that we think we can focus on and that would definitely have an impact. Again, like I said, we think it's short-term, it is not long-term. So that will have some impact.

Speaker #3: We don't see too much, though. It is there for sure, but we think that should come back. People are going to pay utility bills, and some travel would be impacted.

Speaker #3: But other than that, there is a local industry, local commerce, local people. So that should continue on. Anyone who has to pay rent, they have to pay rent, and so on and so forth.

Speaker #3: So, internationally, yeah, we operate in the UAE and Saudi—two large areas that we think we can focus on and that would definitely have an impact.

Speaker #3: But again, like I said, we think it's short-term; it is not long-term. So, that will have some impact. As far as the currency and so on and so forth is concerned, there's no material impact as much.

Vishal Mehta: As far as the currency and so on and so forth is concerned, there's no material impact as much. We don't see that as a material impact yet. We do believe, because, see, I think that we do have aspirations to build out US this year. That's where we'll see maybe that question slightly becomes slightly more relevant.

Speaker #3: So we don't see that as a material impact yet. But we do believe—because, see, I think that we do have aspirations to build out U.S. this year.

Speaker #3: And that's where we'll see that question perhaps become slightly more relevant.

Speaker #5: Got it, sir. Thank you for the opportunity. Congratulations on the good set of numbers.

[Company Representative] (MyInvestBuddy): Got it, sir. Thank you for the opportunity. Congratulations on the good set of numbers.

Speaker #2: Thank you. Due to time constraints, we will take that as the last question for the day and would now like to hand the conference over to management for closing comments.

Operator: Thank you. Due to time constraints, we take that as the last question for the day and would now like to hand the conference over to the management for closing comments. Over to you, sir.

Speaker #2: Over to you, sir.

Speaker #3: Thanks, all, for joining the call, and I look forward to keeping you updated on our progress. Thanks again.

Vishal Mehta: Thanks all for joining the call, and looking forward to keeping you updated on our progress. Thanks again.

Speaker #5: Thank you all.

Vishwas Patel: Thank you all.

Speaker #2: Thank you.

Operator: Thank you.

Speaker #3: Thank you.

Vishal Mehta: Thank you.

Operator: On behalf of Go India Advisors, that concludes this conference. Thank you for joining us. You may now disconnect your lines.

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