Event Details

  • Earnings Call Date: August 6, 2026
  • Call Duration: 1 hour 13 minutes 58 seconds
  • Period Covered: Quarter ended June 30, 2026 (Q1 FY27)

Management Participants

  • Mr. Ramu Akkili, Company Secretary & Compliance Officer
  • Mr. Sumit Kumar, Chief Financial Officer
  • Mr. Harsha Angeri, Head Corporate Strategy and AI
  • Ms. Nisha Dutt, Managing Director & CEO
  • Mr. Pratik Jagtap, EY Investor Relations

Financial Results (All figures in INR)

Q1 FY27 Performance

  • Revenue: ₹79.45 crores (vs. ₹72.96 crores previous quarter, +8.9% QoQ; vs. ₹66.38 crores YoY, +19.7% YoY)
  • EBITDA: ₹16.87 crores (vs. ₹10.58 crores previous quarter)
  • Normalized PAT: ₹16.09 crores (vs. ₹11.51 crores previous quarter)
  • Reported PAT: ₹14.22 crores (vs. ₹9.93 crores previous quarter, including exceptional items)
  • EBITDA Margin: 21.2%
  • Cash and Cash Equivalents: ₹184.8 crores

Key Financial Highlights

  • EBITDA grew fourfold compared to same quarter last year
  • 70% of revenue is recurring in nature
  • 30% of revenue comes from new contracts won during the year
  • Forex impact contributed approximately ₹3 crores to revenue growth

Business Performance and Strategic Updates

Operational Highlights

  • Strong execution of order backlog with improved billing milestones
  • Enhanced operational discipline and cost management
  • Completed FY26 performance and promotion cycle during the quarter

Product Performance

  • Partner Ecosystem Management (PEM/wholesale billing) showing strong growth with increased deal flow
  • Revenue Assurance and Fraud Management (RAFM) maintaining stable performance
  • FraudZap: Recovered initial investment with higher margin contracts expected

Customer Engagements

  • Renewed managed services and software license agreement with Tier 1 operator in Middle East
  • Secured new business assurance and fraud management with leading European operator
  • Renewed PEM engagement with Tier 1 operator in Asia-Pacific

Market Presence

  • Participated in MVNO Nation conference for MVNO operators
  • Attended GSMA Fraud and Security Group meetings in Singapore
  • Contributed to industry fraud standards development
  • Conducted non-deal roadshows (NDRs) to engage with investors

Capital Structure and Corporate Actions

Balance Sheet Optimization

  • Board discussed capital restructuring to reduce equity capital against accumulated losses
  • Process requires consultant appointment, board approval, shareholder approval, and NCLT approval
  • Expected to be a long-term process

ESOP Program

  • Approval received for ESOP program (announced August 6, 2026)
  • Planning to acquire up to 2% of shares from market annually (5% total approval)
  • Timeline: Postal ballot within 2 weeks, expected execution in Q3 FY27
  • Shares must be allocated to employees within 6 months of acquisition

Growth Strategy and Investments

R&D Focus

  • Current R&D team: ~200 out of total ~700 employees
  • R&D intensity expected to increase with focus on:
  • Horizon 1: GenAI-enablement of existing products (HyperSense, ROC)
  • Horizon 2: Portfolio expansion into new fraud types (account takeover, social engineering)
  • Horizon 3: Experimental bets in emerging areas (satellites, data centers)
  • Target allocation: 60% H1, 30% H2, 10% H3

Market Expansion

  • Exploring adjacencies beyond telecom sector
  • Focusing on high-growth areas: data centers, satellite communications
  • Maintaining geographic diversification across Middle East, Europe, Asia-Pacific, Africa, and US

Operational Metrics and Guidance

Sales Pipeline

  • Target qualified pipeline at 3-4x annual order intake target
  • Typical contract implementation timeline: 4-5 quarters from signing to subscription revenue
  • Internal goal to reduce implementation timeline by one quarter

Margin Outlook

  • Maintain healthy margin profile while reinvesting in growth initiatives
  • Focus on balancing margin expansion with strategic investments
  • Contracts have minimum margin thresholds (competition-sensitive)

Growth Outlook

  • FY27 focused on accelerating growth while maintaining profitability
  • Aspiring for double-digit growth rates
  • Line of sight to achieving ₹100 crore quarterly revenue target

Regional Performance and Challenges

Geographic Trends

  • Middle East: Some slowdown due to regional conflict, but no cancellations
  • Europe and US: Stable market conditions
  • Asia-Pacific: Extended sales cycles observed
  • Africa: Typically slower market by nature

Risk Mitigation

  • Offshored Middle East delivery resources to Bangalore for continuity
  • Legal negotiations taking longer due to increased caution on liabilities
  • Some contract closures delayed by 1-2 months but not lost

Litigation and Investments

Sectoral Contracts

  • Ongoing litigation regarding historical contracts
  • One of three entities already settled
  • Expecting resolution of remaining two entities within FY27
  • Jurisdiction challenges in Middle East courts causing delays

Strategic Investment

  • Investment from ID Central sale performing well
  • Fair market valuation assessment planned for Q2 FY27
  • Unlisted company showing strong results

Investor Relations

  • Planning regular non-deal roadshows across Mumbai, Ahmedabad, Chennai
  • Focusing on broader market coverage and investor engagement
  • No specific Investor Day planned, replaced by quarterly NDRs