Strong revenue growth masked by profitability miss; M&A on track

Reported 43% includes SessionM (2m), Kognitiv; organic growth 17% YoY

Q1 EBITDA ₹44 Cr at 17% (₹256 Cr base); normalized after cyber fraud

Actual PAT -₹9.6 Cr; cyber-fraud ₹9.5 Cr deferred tax adjustment

2 months of integration; claimed INR 5-6 Cr free cash; server costs 50% revenue

111% reported; 116% excl large healthcare customer; churn ~5%

Organic YoY 17% in Q1 vs prior 20-23% full year target; large healthcare customer stalling is headwind

Q1 PAT -₹9.6 Cr (normalized ₹25 Cr) vs prior guidance path to profitability; cyber-fraud masks integration margin pressure

₹17 Cr net cost (revised down from $20M enterprise value) for $32M ARR; profitability trajectory detailed (15% margin in 1 year, 35-40% in 2 years)

FY27 ₹1,065 Cr revenue (vs ₹1,000-1,050 Cr prior) maintained; will beat but no formal revision despite 43% Q1

$2-2.5M ARR, 26 customers live, <10 paying; targeting 5-10% of revenue FY27; high-margin (80%+) but early adoption cycle

Migrations start end of year, early next year (3-4 fast-track of 45 customers). No upgrade revenue uplift; margins improve via infrastructure optimization and 10-15% NRR on $32M book.

Accelerate next 10 in 2-3 quarters via AI platform. Prior migrations took 3-5 years; targeting 18-24 months. Margin accretion ₹10-15 Cr EBITDA expected from ₹75 Cr Kognitiv base.

4-5% inflation/overages; ~10% upsells + new cohorts; ~5% churn. Organic gross margin 75%+ supports NRR expansion.

Policy in place; insurance provider working on claim. No customer/employee data breach; banking account compromise only. Recovery timeline unclear.

Paying 0.3-0.5x revenue. ~90 companies in USD10-100M bracket available. Buying customer contracts at scale, not functionality.

17% organic YoY; 6% currency tailwind. FY27 full-year organic expected 17-23% (including 6% currency). Large healthcare customer drag impacting Q1.

Two-step margin expansion: (1) shift backend work to India center, (2) full software automation. Brierley example: 200 people → 12 for same revenue. SessionM different (already SaaS); server costs 50% revenue (vs Capillary 7-10%); optimization alone is margin lever.

No new ACV (no new contract signature). NRR flow counted next year, not this year (like-for-like basis). Only new contract wins count in new ACV.

Agents are rational; 1% difference matters vs human subconscious 2-3% acceptance. Loyalty becomes more promotion/precision critical. Capillary's <100ms turnaround and platform depth matter more. Agencies (competitors) have legacy tech.

Agencies (Epsilon ₹2B, Merkle ₹500M+, others ₹100s M) dominate. Software <10% of revenues (Capillary, Salesforce, Oracle legacy). Shift from agencies to software driven by speed needs (2-month cycles unacceptable for CMOs).

Some Fortune 50/500 organic wins (healthcare, pharmacy, fuel retail). 5-year presence in US; analyst rankings help. Stickiness real; M&A + organic combo strategy for super-large customers.

No cannibalization (Engage only 5% of revenue). aiRA margins 80%+. Early cohort adoption good; budgeting cycles for large enterprise constraining; targeting 5-10% of revenue FY27.

Will definitely beat guidance but won't revise now. Let results play out. Maintaining discipline on guidance.

Management confident 'will definitely beat' but not revising formally. Includes SessionM ₹32M ARR + organic 17-23% growth.

Organic EBITDA claimed 20%+; consolidated dilution from SessionM integration (break-even now, ramp to 15% in 1yr, 35-40% in 2yr)

One large healthcare customer drives 116% NRR if excluded vs 111% with. Concentration risk on loyalty business stickiness.

₹9.5 Cr banking fraud at subsidiary; no customer data breach. Insurance claim in progress; recovery timing unclear.

₹17 Cr acquisition claimed break-even in 2 months; server cost 50% revenue (vs Capillary 7-10%). Margin ramp from break-even to 15% (1yr) to 35-40% (2yr) execution dependent.

First Kognitiv customer migration Sep 1 using AI platform; 16-17 customers total; target 18-24 month cycle (vs prior 3-5 years). Margin accretion ₹10-15 Cr EBITDA from ₹75 Cr base.

Q1 organic growth 17% YoY vs prior 20-23% guidance. Large healthcare customer stalling; inflation/overages only 4-5% of 111% NRR.

aiRA $2.5M ARR with 26 customers live, <10 paying. Target 5-10% of revenue (₹13-25 Cr at ₹1,065 revenue) is ambitious. Large enterprise budgeting cycles constraining.