Strong margins mask revenue growth deceleration

Delivered ₹124.7 Cr, 9.4% QoQ stated. Transcript 9.2%; minor variance.

H1 FY26 ₹110.44 Cr → H1 FY27 ₹238.82 Cr = 116.2% confirmed.

Q1 ₹9.53 Cr → Q2 ₹15.32 Cr math confirms 60.7%; delivered says 128% QoQ, inconsistent.

Q1 ₹24.11 Cr / ₹114.16 Cr = 21.1% ✓; Q2 ₹36.7 Cr / ₹124.66 Cr = 29.4% ✓

Opening ₹920 Cr, ₹240 Cr additions, ~₹46 Cr contracted. Trajectory aligns with prior $80M guidance.

Transcript states exactly these figures.

Expanded from $80M (prior call) to ₹920 Cr (~$110M). +₹240 Cr added Q2 vs net contracted ~₹46 Cr.

Recurring fees 89.8% of Q2 standalone (vs 82.1% H1). Subscription base hardening; de-risks execution.

New customers 30.1% of Q2 revenue (vs 26.1% in H1). Existing customers still 69.9% but trend toward diversification.

Improved to 88 days (H1 FY27) from 135 (FY25), 99 (FY26). Collections tightening; supports H2 cash inflection.

Pavan (CDO, 25yr exp, ex-Tech Mahindra) + Akash (CCO, 24yr banking). Execution focus on delivery & customer outcomes.

Management explicitly refuses to provide FY27 targets; signals only 'same growth rate for next 2 years' (vague, unquantified).

Growth from existing clients (recurring, long-term contracts) + new clients + new product lines. No geographic expansion; focus India, then extend.

Product dev expenses are front-loaded; they're coming down. Services margin remains 20% EBITDA as guided. No structural wage inflation.

Ahead of main board listing; required. Restatement of past financials underway; board filings imminent for NSE.

Project-based services costs vary by contract margin. High-margin deals lower COGS %; low-margin deals increase. White Rivers consolidation (3 months) also raised COGS baseline H1.

No ₹280 Cr at Veefin level. ₹160 Cr raised in subsidiary in Sept '24 (HNI investors, prior holders). Separate ₹88 Cr in warrants. No undisclosed backers.

Guidance is 45–50% range; current 54% is well above. Fluctuations normal. Margins will track 45–50% for investors' modeling.

Won't disclose product-level revenue; too competitive. Dealers onboarded, AUM building, anchor approvals in place, on track.

H1 revenue cycle lighter (H2 billings higher). Unbilled revenue, unpaid state liabilities. Temporary; H2 will normalize. Year-on-year OCF metrics cleaner.

TDS on contractor payments, GST refunds pending, prepaids. Most tied to revenue cycle; will reverse H2. Large part unbilled revenue.

DRHP filed Jan 2026; no additional debt planned. Sanction limits available but not drawn. WRM listing expected post-NCLT closure.

Product details competitive; can't share. But can share overall pipeline size, contract count, margin impact as needed. Investors to email for non-sensitive metrics.

AIOS is dual-use: embedded in Veefin products OR standalone for banks/corporates. Custom-built for transaction banking; can overlay existing customer systems.

No fresh debt or equity planned. Sanctioned limits available; will draw only if needed. Not in imminent debt raise mode.

Management refused to quantify FY27 or FY28 targets. Implicit signal: growth will persist but no number committed.

Services guidance on track (actual 54%+ EBITDA, well above band). Band implies some normalization expected.

Capitalization of dev costs ending FY27; will flow P&L. No large facility investments flagged.

Q2 growth of 13% YoY is dramatically lower than H1's 116%, suggesting potential normalization or loss of momentum. If Q2 is new run-rate, company misses growth narrative.

Prior guidance: 'PSB Xchange to reach 10–12 lender inflection point.' Call updates: NCLT closure Nov–Dec 2026, dealers onboarded, but no AUM or transaction metrics shared (citing competitive sensitivity). Lender adoption and AUM ramp remain unproven.

Existing customers contributed 69.9% of Q2 revenue (down from 73.9% in H1). New customer churn or contract non-renewal would cause sharp revenue cliff. Top customer exposure not disclosed.

H1 OCF negative despite ₹24.85 Cr PAT due to unbilled revenue (₹0.56 Cr), TDS/GST refunds, prepaids. Management expects H2 reversal, but if collections slip or billings compress, liquidity pressure could emerge.

NCLT closure expected Nov–Dec 2026. Ind AS restatement underway. Main board listing (DRHP filed) adds audit/governance burden. Any regulatory setback could derail timeline and market narrative.

Management refuses to share PSB Xchange revenue, AUM, lender count, or transaction metrics citing competitive sensitivity. Limits ability to validate growth claims and assess execution confidence independently.