Solid rebound, hedged growth — execution vs. ambition

Delivered: 79.5 Cr (vs 72.96 Q4 FY26, vs 66.4 Q1 FY26)

16.87 Cr EBITDA (21.2% of 79.45 confirmed); Q1 FY26 EBITDA ~4 Cr inferred

14.22/79.45 = 17.9%; delivered NPM discrepancy (stated 16.9% vs 17.9% calculated)

No independent verification; mgmt structural model, not contradicted by delivered results

Qualitative; confirmed in Q&A; some contracts mentioned moved from Q1 to Q2/Q3

Prior call stated 'very bullish' outlook, 24% order intake uplift. This call: aspirational double-digit, realistic high-single digits. No formal FY27 target stated; management resisting analyst pressure for specific guidance.

1-2 month delays confirmed in legal/contract closures. Prior uncertainty; now acknowledged slowdown (no cancellations). Mitigation: moved delivery on-site staff to Bangalore.

Prior implicit push for margin expansion; now explicit: stable mid-to-high teens, reinvest excess into R&D. CEO: 'not to maximize short-term margins' but 'long-term shareholder value.'

Emphasis on Partner Ecosystem Management (PEM) gaining traction; FraudZap investment recovered. New fraud types (ATO, social engineering) becoming focus areas.

Qualified pipeline is 3-4x of order intake target (no specific size disclosed). 70% revenue recurring each year, 30% new wins. Publicly announced deals last year were 18-20 million; actual pipeline larger. Cannot disclose specific funnel size due to competitive sensitivity.

We are on trajectory of growth, trending near double-digit this year. Will I deliver double-digit or high single digits? Remains to be seen. Aspiration is bigger; reality-grounded. NDR feedback: double-digit growth expected by investors. Rules of disclosure prevent forward guidance in earnings calls.

Margins should be in this ballpark (mid-to-high teens). We have expanded from prior year; won't cap margins as we grow, but will reinvest margin excess into R&D and product development. Not maximizing short-term margins; aiming for healthy profile + growth investments.

Some slowdown in Middle East; no cancellations. Delays are 1-2 months, not quarter-scale. Root cause: legal scrutiny, liability negotiations (LOLs). Delays in APAC as well. US/Europe stable. No major deals lost; just shifted timelines. Comfortable delaying by month for watertight contracts.

Typically 4-5 quarters (sign → implement → go-live → recognize). Goal is reduce by 1 quarter (to 3-4). Recent project delivered 45 days early. On average gaining 1-1.5 months per project. Working on reusability, libraries, standardization to crash timeline further.

Current split: ensure products GenAI-enabled (H1), enter high-growth CapEx markets like data centers & satellites (H2/H3), expand fraud portfolio into new types (ATO, social engineering). Goal: transition to 60% H1, 30% H2, 10% H3 split. Telco is cash cow; ride new waves (satellites, data centers). Need to catch a wave to ride it.

Instead of one annual Investor Day, we're doing quarterly NDRs in Mumbai, Ahmedabad, Chennai. Will invite existing shareholders. Investors prefer NDRs for deeper discussion. We'll come to your cities.

Sectoral contract: still litigating outside India (Middle East jurisdiction, slower systems). One of 3 entities settled; two pending. Hoping Q2 closure. Middle East subsidiary: self-sufficient now, no fresh capital needed currently (but volatile region, visibility limited).

CEO explicitly non-committal. NDR feedback suggests market expects double-digit. No formal FY27 revenue target given. Q1 showed 19.7% YoY; deceleration possible if order intake slows.

Clear policy stated: maintain healthy margin profile, reinvest excess into R&D (engineering + AI engineering). Won't maximize short-term margins. Confidence high based on structural cost controls and pricing thresholds by geography.

R&D density to rise to fund H2/H3 bets (satellites, data centers, new fraud types). Core R&D team 200 of 700 headcount; expect growth. ESOP execution expected Q3 FY27 onward (postal ballot underway).

No segment breakdown by customer provided. Implied Tier-1 operator in Middle East is material (renewed; slowdown occurring). Loss of any Tier-1 would hurt. No explicit diversification plan stated.

War in Middle East causing 1-2 month delays in contract closures, legal/liability scrutiny heightened. Some slowdown in order intake but no cancellations yet. Macro escalation could shift to cancellations.

Typical 4-5 quarters from signing to subscription revenue recognition. Delays in legal closures (1-2 months) push revenue further out. Revenue timing uncertainty increases if order intake falters.

Revenue +19.7% YoY; PAT +11% YoY. 8.7 percentage point gap suggests margin headwind. Attributed to R&D reinvestment (rising headcount, token spend) and FX loss (~3 Cr). Sustainable if intentional; risk if involuntary.

Sectoral contracts written off historically; now in litigation. One of three entities settled; two pending. Court systems moving slowly in Middle East jurisdiction. Timeline unclear but mgmt hopeful by end FY27.