Netcom drives Q1; ResolX immaterial at 12-18 month horizon

Q1 ₹158.3 Cr; requires Q2-Q4 avg ₹193 Cr to reach ₹738 Cr (top of ₹600-700 Cr band)

Confirmed; 6-7 of 12 projects live; revenue immaterial, expected 12-18 months

Stated as example; no enterprise-wide impact yet; margins 'too small to notice'

Standalone ₹61.1 Cr at 11.6% YoY growth; 30.4% margin confirmed but organic growth slow

Confirmed; Netcom 50% of revenue and EBITDA at same margin bands

First full quarter added ₹79 Cr (50% of total); expected, but one-time event masks 11.6% organic slowdown in base

Enterprise traction proven (airline 70-80% of calls, bike manufacturer 17-18% of sales), but revenue still immaterial; 12-24 month product build-out timeline

Netcom acquisition debt at 9% blended rate; ₹8.1 Cr per quarter is 5.1% of revenue; margin pressure until refinanced or paid down

Plan two deals in next three years targeting Fortune 500 clients; adds execution risk and debt unless EBITDA scales faster

Not a one-off; first full Netcom consolidation quarter; confident on good run-rate this year with strong trajectory ahead

Consolidation numbers from acquisition; AI benefit example: 30% of airline employee size displaced, impact visible in 12-18 months YoY

Netcom ~50% of both revenue and EBITDA; margins 24-25% similar to consolidated

Launched May; 6-7 of 12 projects live; revenue too small to notice; expect 12-18 months for meaningful contribution

Beyond voice blasters; doing full onboarding, service, value-chain post-acquisition; deeper AI ecosystem not isolated outbound calls

Debt-free before Netcom; Netcom debt ~9% cost; strong cash flow makes debt serviceable; 10-12% deal conversion; EPS-accretive and North America focus criteria

Already there from day one; already showing up (post-Netcom example)

Two aspects: (1) solved queries are repetitive and scale to 100s of customers with lower cost; (2) platform evolves to full CX suite over 12-24 months with 60-70% Agentic, 20-30% human, land-and-expand strategy

Own end-to-end resolution vs competitors selling bits/pieces; no other BPO in India has own Agentic AI stack plus domain expertise; integration advantage 'multiple necks to choke'

Cost of resolution = total time + channels + human cost to resolve; AI reduces from 5-min to 2-min by not shifting channels; still time-and-motion but faster math

Q1 ₹158.3 Cr; requires Q2-Q4 avg ₹193 Cr (~22% QoQ increase) to reach ₹738 Cr top band; on track if Netcom ramps and organic ≥10%

Q1 delivered 24.9%; but ₹8.1 Cr finance costs compress net margin to 10.1%; improvement depends on AI offsetting debt cost

ResolX marketed as growth engine but immaterial Q1 revenue. 12 live deployments early-stage. If ramp extends beyond 12-18 month guidance, FY27-28 margins disappoint and acquisition funding assumptions fail.

Acquisition debt of ₹220 Cr at 9% blended rate adds ₹8.1 Cr/quarter (5.1% of Q1 revenue) to finance costs. If cash generation slows or rates stay elevated, debt servicing becomes burden. Company plans two more acquisitions in 3 years, adding more leverage.

Netcom contributes 50% of revenue but customer names not disclosed. Base business serves 100+ marquee brands but concentration not revealed. Loss of single major customer (whether Netcom-acquired or standalone) could materially impact growth trajectory.

Standalone revenue ₹61.1 Cr growing only 11.6% YoY. For FY27 guidance of ₹600-700 Cr to hold, Netcom must not decline and organic growth must accelerate. If macro softens or clients cut BPO spend, guidance at risk.

Netcom brings Americas revenue (50% of Q1). Management cites 'dollar arbitrage' as positive, but if INR strengthens, reported INR revenue and margins compress. No hedging mentioned.