Nature of the Disclosure

This document is the edited transcript of the Q2 and H1 FY27 earnings conference call held on October 29, 2026, from 5:00 p.m. to 5:36 p.m. (IST). The call was hosted by Raadhi Capital and featured management commentary from Chairman, MD & CEO Mr. Rajesh Kumar Naidu Yabaji and CFO Mr. Satyakam G N.

Key Financial Figures (Q2 FY27)

  • Total Income: ₹253 crore, representing a 51% year-on-year (YoY) growth.
  • EBITDA: ₹51 crore, a 40% YoY growth.
  • Profit After Tax (PAT): ₹41.4 crore, a 42% YoY growth.
  • Revenue from Operations: Grew 56% YoY. On a half-yearly (H1) basis, growth was approximately 49%.
  • Net Revenues: ₹183 crore, growing 35% YoY.
  • Adjusted EBITDA: ₹55 crore, a 29% YoY growth.
  • Contribution Margin: Remained "much north of 90%" levels, growing by 33%.

Operational and Business Metrics

  • Transacting Customers: ~9 lakh, growing 13% YoY.
  • Power Users (using more than two services): ~4,80,000, growing ~20% YoY; more than half of transacting users are power users.
  • Tolling GTV (Gross Transaction Value): ₹7,070 crore, growing 17% YoY.
  • Distribution Network: 10,000+ physical touchpoints across 80% of Indian districts.

Business Segment Performance

Core Businesses:

  • Grew 31% YoY and 11% quarter-on-quarter (QoQ).
  • Described as a "strong operating cash flow machine" with high contribution margins.
  • Tolling Business: Saw a "significant uptick" in the issuance of proprietary Blackbuck Fastags through its PPI entity (Blackbuck TZF subsidiary), alongside its partner-led model.
  • Telematics Business: Achieved a new record high in device sales for the quarter, continuing an acceleration trend. Growth is largely attributed to state-level AIS (Automated Identification System) mandates. Revenue from device sales is recognized as deferred revenue over the subscription period, leading to a growing deferred revenue item on the balance sheet. New product launches like fuel sensors and dash cams contributed a "very small part" to the acceleration.

Growth Businesses:

  • Comprise the loads business ("super loads") and vehicle finance business.
  • Grew 166% YoY (2.7x) and 25% QoQ.
  • Super Loads: Operational in 14 cities (2 older, 12 newer). The business is described as "working capital light" with a "cash-and-carry" model where advance is received around the time of vehicle loading. AI-driven matchmaking has led to significant productivity improvements and better unit economics in existing cities.
  • Vehicle Finance: A partner-led lending model. The company is "on track" to achieve its stated goal of EBITDA break-even for this segment in FY27. The AUM managed by partners continues to "steadily climb".

Expense and Investment Commentary

  • Total Expenses: Grew 36% YoY, attributed to growth in core businesses and stepped-up investments in the super loads growth business.
  • Customer Acquisition Cost (CAC): Management noted that strong growth quarters involve higher upfront CAC, which suppresses EBITDA in the short term but is recouped over the customer lifetime value (LTV). This was cited as a reason for the current operating leverage in the core business being around 50% compared to historical levels of 70-100%.
  • Depreciation & Capex: Depreciation expense roughly doubled YoY, linked to the growth in the telematics business (device capex). Half-yearly growth in deferred revenue (56% YoY) was noted as being 4-5x the absolute growth in depreciation. Capex for the period was ₹77.1 million. No specific capex guidance was provided for the full year.

Management Outlook and Commentary

  • The Q2 performance was described as a "strong quarter" with results in a "business-as-usual way."
  • The business strategy was reiterated: building and launching offerings to solve truck operators' problems, distributed through a widespread physical network, which strengthens platform engagement.
  • For H2 FY27, tolling GTV is expected to follow typical industry seasonality, with growth picking up in Q3 and Q4, similar to previous years.

Q&A Highlights

  • UPI MDR Impact Assessment: Management stated that over 50% of tolling transactions are below ₹2,000. For transactions above this, they are using the pre-debit notification (PDN) mandate route specific to Fastag recharge, which they believe will contain the MDR impact to "significantly close to zero." Pilots conducted in early October supported this view.
  • Telematics Competitive Landscape: Management addressed competition from OEM-installed GPS, highlighting their competitive pricing, pan-India service network, operational expertise in AIS mandates, and the advantage of their platform for fleet owners managing multiple trucks. They expressed confidence in their competitive position.
  • QoQ Core Revenue Growth Driver: The large sequential growth in core revenue (11%) was primarily attributed to the record telematics device sales, with minor one-off benefits in tolling.