Oh, thank you so much. A very good evening to everyone.

Thank you for joining the earnings call for Zaggle Prepaid Ocean Services Limited for the first quarter of fiscal year 2027. On behalf of the company, I extend a very warm welcome to all of you and an advance happy Independence Day.

The financial results, press release, and the investor presentation are uploaded on the stock exchange and on the company website. I hope everybody has had a chance to look at it.

Now I would like to take the opportunity to talk about Zaggle's financial update at a consolidated level. It's been a decade of sustained growth and it has brought us to a natural and exciting reflection point.

For FY '27, for us, is going to be about transformation through consolidation, optimizing our core operations, harnessing the power of AI, and seamlessly integrating our recent acquisitions. We are moving from a merely profitable growth paradigm that has served us very well in the past decade to a more focused approach on improving cash flows and calibrating capitalization, which will position us well for the next phase of growth with higher margins.

By taking a deliberate, focused approach to our fundamental performance today amidst rapid technological shifts and dynamic market, we ensure our business remains resilient, agile, and positioned to drive long-term shareholder value and global scale. In Q1 FY '27, we sustained our top-line momentum, delivering revenue of 423 crore, a 28% year-on-year growth compared to Q1 FY '26.

Our adjusted EBITDA stood at around 34.7 crore, reflecting key strategic transitions that I will detail shortly. What's more encouraging, however, is our expanding revenue footprint, a clear sign of strong, growing demand for our core platform.

Now I would like to take the opportunity to elaborate more on our three focus areas: revenue, EBITDA, and operating cash flow. On revenue, our total revenue growth of 28% reflects operational momentum across both our standalone business and our subsidiaries.

On a standalone basis, Q1 FY '27 revenue reached approximately 390 crore, representing an 18% expansion over 331 crore in Q1 FY '26. This 18% top line is particularly resilient given that Q1 is historically a soft quarter due to seasonality.

Meanwhile, performance across our subsidiaries has been exceptional, and I look forward to detailing those results shortly. As always, we expect growth to accelerate through Q2 and remainder of the fiscal year.

Now on EBITDA, in FY- in in Q1 FY '27, our adjusted EBITDA margin stands at around 8.2% as compared to 10.1% in Q1 FY '26. Our over- overall cost base, which includes employee cost as well as other expenses, went up by around 25%, comparing Q1 FY '27 to Q4 FY '26 at a consolidated level.

While we were successfully able to optimize around 15% of the cost base throughout FY '26, which would have reflected in FY '27, there were four major areas which contributed to the rise: expenses related to Dice acquisition, which we absorbed when we absorbed around 100 talented AI professionals, a cost including, their transfer, one-time costs, and also would want to highlight at this point that we will start realizing the revenue from novated Dice contracts only from Q2 FY '27; a moderated push of expenses into the P&L, which we were earlier capitalizing, and this is what we are going to continue to do it over the year; the standard employee increments, which come at the end of the year end of the financial year and gets reflected in the Q1, is also one of the reasons; added employee costs, marketing costs, and other expenses from the acquisition of Zag.money. Expenses related to Dice acquisitions were predominantly relocation costs for transitioning 100 employees from Pune to Hyderabad between May and June, along with one-time tech vendor payments to ensure continuity between the transition, along with one-time transaction costs reflected primarily under other expenses.

With the relocation now complete, the Dice team costs from Q2 FY '27 will sit under under our employee benefit expenses. On the capitalization front, we are reviewing and updating our policies in close consultation with our advisors.

Rather than waiting for a full policy rollout, we took immediate, proactive measures in Q1 FY '27 to moderate new capitalization levels. This calibrated moderation aligns with our focus on operational prudence and ensures our P&L better reflects our run rate costs.

On operating cash flow, strengthening our operating cash flow trajectory remains a key priority. We look forward to detailing our progress on the next earning calls, highlighting not only the actions, what we have we have already taken to improve cash conversion, but also the additional levers, which we are preparing to execute forward, going forward.

Now I would like to give you an overview of Zaggle investments and acquisitions. I would like to start off by talking about our latest investment.

We have made a strategic investment of around INR 8 crore in Uno Bank Private Limited, which operates under the brand of Moneyhop. Uno Bank now holds an authorized dealer category II license from the Reserve Bank of India, which allows it to offer digital cross-border payments, remittances, and foreign exchange services, as well as forex cards.

Much like Zaggle, Uno Bank operates a powerful B2B, B2B2C model, partnering with leading NBFCs and money changers to power seamless cross-border payments for their clients, while simultaneously driving direct-to-consumer remittances through its established B2C channel. The investment comes at an opportune time with significant regulatory tailwinds working in our favor.

Under the new guidelines, authorized AD AD category II entities are now permitted to process cross-border trade-related transactions up to INR 25 lakh per transaction. The investment strategically aligns with our Save and Zoyer products to further enable forex cards, cross-border payments, and remittances for our corporate and retail base in the future.

Next, I would like to elaborate further on Dice acquisition. Just to refresh, the deal had transitioned to an asset purchase from the erstwhile share purchase.

We have secured the complete spend management product suite and intellectual property, along with their entire enterprise and partnership contract portfolio for approximately INR 68 crore excluding GST, a significant 55 crore optimization from the initial 123 crore valuation. As highlighted earlier, we have completed the relocation of around 100 talented AI professionals.

The contract novation of around 85-plus clients is underway and we should complete by the end of Q2 FY '27. One point I would like to reiterate: the revenue accruing from this contract has not been realized in Q1 FY '27 and will only start from Q2 onwards as part of the deal.

As a part of the novation, we have seen marquee names getting successfully novated and onboarded already, including the likes of Hindalco, Bajel, Trident Group, IDFC First Bank, Lenskart, Xpressbees, amongst others. To note, we have already merged existing sales pipeline of Dice as well as, and we will keep you posted in upcoming quarters on updates regarding the same.

The acquisition of Dice has proven to be a vital catalyst for our technology roadmap, significantly accelerating our AI capabilities across both Zaggle, Save, and Zoyer. By integrating Dice's AI-driven core technical expertise, we are enhancing automated spend analytics, intelligent approval workflows, and predictive expense management, within these products, allowing us to deliver far greater operational efficiency and value to our corporate clients.

This capability positions Zaggle very well to tap into other global markets like UAE and US as well. In the coming quarters, we would also take the opportunity to showcase this capabilities of AI by holding an investors day, and we will let the exchanges know in advance.

Next, I would like to talk about our acquisition of Rio.money, which has been rebranded as Zag.money. We have continued We have seen continued transaction with continued traction within the entire credit card on UPI and TPAP ecosystem.

In our last earnings call, we had reached an annualized run rate for new acquisition of 36,000 cards within just an eight-week window. Now, I am happy to announce that we have increased the annualized run rate by almost 2.3 times to now reach around 84,000 cards in a short span of time.

Along with this, we have also launched a first-of-its-kind twin cobranded cards with Punjab National Bank across Visa and RuPay, which has been issued on a biodegradable plastic. Along with this, we have also gone live with AU Small Finance Bank on both networks, which is Visa and RuPay.

The program with AU not only rewards contactless and UPI spends, but also our custom value packs enabling hyper-personalized features and reward points for consumers. On the marketing front, Zag.money, we are actively engaging our B2B2C user base by positioning ourselves as a vibrant, digital-first brand through targeted social campaigns.

This quarter, we've focused on major cultural movements, launching thematic campaigns around the FIFA World Cup and the release of the movie Odyssey to drive user engagement. Parallel to this, we completely revamped our cobranded user journey across both app and web, seamlessly aligning it with our upgraded brand identity, Zag.money.

I would also like to give you a little bit of policy tailwinds which we have seen. This opportunity to welcome the proposed amendments in the Taxation and Other Laws (Amendment) Bill, 2026 regarding a limited MDR on high-value merchant transactions.

Crucially, this policy Since this policy focuses on large enterprise transactions, our sustained investments in building out the UPI ecosystem now positions us perfectly to capture enhanced transaction monetization. Next, I would like to talk about our investment in 86,400, earlier known as Mobileware, which poised to enjoy the benefits from the MDR on UPI.

Revenues grew from around 17 crore in Q1 FY '26 to INR 22 crore in Q1 FY '27, representing a YoY growth of 29%. EBITDA grew from around 2.8 crore in FY Q1 FY '26 to around 8.8 crore in Q1 FY '27, representing 400% YoY growth.

This unprecedented growth stems from the massive growth in UPI transaction volumes. Even with a large base, 86,400 is seeing 2% to 3% month-on-month growth in volumes they currently support with various banks.

On the new customer acquisitions, I'm happy to announce that 86,400 signed its first major international partner, having partnered with LankaPay to strengthen their digital payment ecosystem. Along with this, 86,400 also signed up with Union Bank of India for their Bharat Bill payment stack and signed up with Maharashtra State Co-operative Bank for their UPI transaction.

Another noteworthy and heartening point was on Eid, 86,400 processed over 2 crore transactions, underscoring the scalability and reliability of the platform supporting, peak-value execution. Next, I would I would like to talk about GreenEdge, which runs the golf privileges program for various banks and networks like ICICI, Amex, and others, along with the entire reward program for NPCI for NPCI.

Revenues grew significantly at around 160% from INR 17 crore to around INR 1 and INR 44 crore in Q1 FY '27. EBITDA grew 66% from INR 2.6 crore in Q1 FY '26 to about 4.3 crore in Q1 FY '27.

We are seeing significant growth with NPCI, especially on the RuPay benefit program quarter on quarter, having driven deeper technical integrations to ensure seamless service delivery among an unprecedented growth in UPI transactions. On new customer acquisitions, we are in talks to onboard new banks in the coming quarters.

Now I would like to talk about TaxSpanner. As guided in the last earnings call, we made a few changes in our approach, having appointed new board members to have a fresh look going into FY '27.

We have also begun the initiative of rebranding TaxSpanner to Z.tax and will keep all of you posted with updates on the same in the coming quarters. Happy to share that TaxSpanner reported revenues of 80 lakhs in Q1 FY '27, marking a 65% increase over Q1 FY '26.

This performance keeps TaxSpanner well on target to break even this financial year. What is more heartening to see is that we will have a growth of around 120% on B2B side of the business, which primarily caters to the income tax and GST compliances of of the enterprise corporates.

To further enhance our scope, we are also undergoing integrations with external partner ecosystem, including large payroll companies, to further strengthen the embedded tax filing opportunity. Lastly, we we seek to accelerate TaxSpanner's growth by placing AI automation at the heart of the platform, allowing us to disrupt traditional tax filing models, deliver superior speed and accuracy, and expand our market footprint.

Lastly, we would like to take a disciplined, highly selective approach to M&A, prioritizing value-accretive acquisitions in adjacent domestic and international markets. Moving forward, we intend to deploy our QIP proceeds into adjacent sectors, ensuring every transaction drives meaningful synergies and accelerates our long-term growth trajectory.

Now I would like to take this opportunity to address our AI investments as well. For us, investing in AI is a very crucial driver in transforming Zaggle from a traditional platform into an indispensable, autonomous financial operating system.

As enterprise market requirements rapidly shift from simple digitize digitization towards real-time governance and predictive intelligence, our AI investment ensures we stay ahead of evolving client expectations. By embedding AI natively across Save, Zoyer, and Propel, we automate complex spend patterns and compliance workflows at scale.

We are actively taking on larger and more complex enterprise problem statements. Beyond basic spend reporting, our platforms now solve sophisticated corporate challenges, including multi-entity accounts multi-entity accounts payable and procure-to-pay automation, dynamic tax compliance, predictive cash flow visibility, and deeper ERP integrations.

Solving this mission-critical pain points for larger corporates naturally is leading to significantly higher contract values and margins, stickier client relationships, and significantly increased switching costs, cementing Zaggle as an essential operational engine engine for enterprise clients. While we continue to invest and actively look at building this next-generation AI capabilities, I want to reassure our shareholders that we remain deeply mindful of our cost structure.

We are disciplined in moderating our execution expenses, ensuring that capital is deployed prudently without compromising on operational efficiency. However, we firmly believe that the long-term strategic returns will far outweigh current development costs.

History has shown us that moments of foundational technology shifts, much like the advent of the internet or the migration to cloud computing, reward those who build ahead of the curve. By absorbing this upfront development costs today, we are positioning Zaggle to capture a lion's share of tomorrow's market, securing high-margin recurring revenue and a structural competitive advantage that will compound value for years to come.

Now I would like to give an update on our international expansion plans. Now we are in the process of opening a subsidiary in ADGM, Abu Abu Dhabi Global Market international financial center and free economic zone within this quarter, which is Q2 FY '27.

While we remain mindful of regional volatility, our our engagement with local government, banking, and commercial partners has met with overwhelming interest. Furthermore, through the Dice acquisition, we inherited key client relationships that clearly validate our product-market fit.

As a result, we are prepared to enter the UAE with our core product stack, Save, Zoyer, and Propel, to capture significant market share in an expanding sector with a fragmented competitive landscape. With this, I now hand over to our CEO and MD, Mr.

Avinash Godkhindi.

Thank you, Dr. Raj.

A very warm welcome to everyone joining us on the call today. I would like to give an overview of a few key metrics.

I'm happy to share that today around 4 million users actively use Zaggle-powered cards and software platform, a strong testament to the scalability and adoption of our platform. We now serve more than 4,000 customers across a wide spectrum of industries and sectors.

Talking about our consolidated revenue mix this quarter, the SaaS platform fees contributed around 12.5 crores. Program fees contributed around 160 crores.

Propel points contributed around 251 crores. Now to talk about a few business highlights.

I'd like to start talking with the Save business. As Dr.

Raj mentioned, on the tax benefits side of the business, as guided last quarter, we have seen significant favorable tailwinds with the new income tax regulations, which not only added wallets for the new tax regime.

Increase in the per-user wallet for existing as well as new corporate customers. We're serving multiple marquee names, including Radisson Hotels, SCA, Abigna India, Slice Small Finance Bank, Bikaji Foods, Bureau Veritas, Nuvama Wealth, amongst others, and have a large pipeline to showcase for Q2 and forward.

Post the income tax regulations, we've also seen a significant increase in the onboarded user count across our entire customer base. While the focus has been on new client acquisition, around 73% of the new users onboarded came from our existing corporates, where we were able to upsell new wallets and add new users.

On the travel and reimbursement side of the Save business, while we've onboarded marquee names such as APAC Financial Services, Arc Infosystems, and GSK India, amongst others, as highlighted by Dr. Raj earlier, we've also inherited clients from Dice, such as IDFC First Bank, Manipal Hospital, BRCL, amongst others, whose billing will begin in Q2 FY '27.

Next, I would like to talk about key updates in our Zoyer business. We've seen a very positive uptake in the Zoyer business with focus AI-driven rollouts of earlier signed customers.

One such example is a large retail chain we signed up a few quarters back, where we have already onboarded about 2,000 stores with an impending rollout of the balance 17,000-odd stores in the coming months. We've signed up a few marquee names as well, such as Diesel Fashion, Okobora Lifestyle, AppsForBharat, SBM Retail, amongst many others.

We've also inherited clients from Dice, such as Hindalco, Bajaj Projects, which is Bajel, Deserve, Navi, and many others whose billing is going to begin from Q2 of FY '27. Next, I would like to talk of few key updates in our Propel business, and would like to start with a small case study.

A strong example of Propel's enterprise traction is a recent deployment in a large entity managing 5,000-plus channel partners. The client was constrained by legacy, offline voucher business, tied with a significant marquee working capital, and prevented real-time program tracking.

We addressed this by implementing Propel, automating their incentive delivery while providing real-time analytics to boost partner engagement, additionally transitioning from what they were using as a single-brand voucher to a multi-brand voucher and multi-brand digital points system, effectively released blocked working capital for the customer and created a vastly superior partner experience. During the quarter, we have signed up marquee names such as Saint-Gobain, Supreme Pipes, Phoenix India, amongst others.

Next, I would like to talk about the key updates in our fleet business. Having captured a majority market share in the CGD, city gas distribution companies, we are seeing major traction coming with much faster rollouts in these programs.

Compared to Q1 FY '27 Q1 FY comparing Q1 FY '27 to Q1 FY '26, we have seen a remarkable 43% increase in the total transactions, along with a resounding 53% increase in transaction value, which has reached an annualized spend rate of 100 crores as of today. We have focused over the last few quarters on driving higher revenue and transaction volumes in the existing programs, and we look for fleet programs to meaningfully contribute to our top line and bottom line in the coming quarters.

I'm also very happy to announce that we have signed our first contract with one of the three OMCs, oil marketing companies, which highlights the effort we have been putting in this space over the last two, three years. We've signed a five-year agreement with HPCL as an aggregator for their flagship DriveTrack Plus DT Plus program to facilitate purchase of petroleum products and enable additional discounts and benefits to the entire corporate and retail base of Zaggle.

As a part of this agreement, we also get to add incentives for driving these spends towards HP HPCL. Zaggle also gets bottom-line benefit.

I will keep you all posted on the go-live and the corresponding monetization of this program in the subsequent quarters. Now I want to briefly touch base on our cross-selling initiatives.

Leveraging AI, we have equipped our on-ground sales teams to pitch and solution for multiple products in the same go while dealing with different stakeholders across varied problem statements. In Q1 FY '27, we saw cases like APAC Financial Services, where we were able to cross-sell Save and Zoyer products right at the initial stage itself.

Other marquee cross-sell wins have been Campus Activewear, Purple Panda Fashion, V-Bazaar, Impresario Entertainment, Quess Corp, amongst others. To elaborate a few cases further, Campus Activewear is an existing customer for the Zoyer solution, mainly leveraging the Chrome solution for their retail stores.

In light of the new income tax regulations, we recognized the potential for further collaboration and successfully plugged in our Zaggle Save solution for their employee base for tax benefits. Similarly, Quess Corp is an existing customer for our Save solution for its large corporate base.

Keeping in mind their complex procurement workflow requirements along with the corresponding compliance requirements, we recognized the potential for further collaboration and successfully plugged in not only our Zoyer solution, but also the TaxSpanner solution. Now, as Dr.

Raj highlighted earlier, on our investments in AI allowing us to pick more complex use cases, I'd like to elaborate further on one specific use case of one of our large clients in the manufacturing space. The client was currently facing with an entire manual reconciliation process with complex workflows, and currently uses one of the larger ERP systems to facilitate the entire procure-to-pay journey.

We are working with them on the following solutions, which involve purchase order, invoice processing, and validation across 24 parameters for offline and online channels. Purchase orders which require inspection, will now have three- and four-way matching of purchase orders, invoices, goods receipt notes, and delivery challans, along with facilitating validation of more than 24 parameters, enabling complete automation of the validation and exception routing workflow.

As a part of the workflow, we are enabling a fully automated liquidation damages evaluation, calculation, and routing workflow for late delivery scenarios, where the relevant commercial terms are extracted from PO and measured against the goods receipt note and invoice along with the e-way bill. Payment retention and hold automation, which holds or releases payments to vendors once all relevant compliance checks of the shipment have been met, measuring against all documented touchpoints, removing all human intervention barring as requested specifically by the client.

Auto-picking of relevant tax compliances on TDS and GST in a pre-configured tax rule engine, which applies relevant tax rates depending on the nature of the supply and vendor categories on the basis of threshold limits. The creation and deployment of the configuration of solutions in a very short span of time has been made possible by leveraging AI solutions at scale.

Lastly, I would like to take all of you through some of the key financial updates. With reference to Propel points, margins on a consolidated basis, we have reached a margin of 7.1%, with heavy attribution to GreenEdge's higher margins.

On a standalone basis, Propel margins stood around 5%, which is a significant improvement from our Q4 FY '26 margins. As mentioned previously, we had spillover of a few overriding commissions that we realized in Q1 of FY '27.

With reference to cashback as a percentage of program fees, we saw cashback of 66.3% in Q1 FY '27, which is a marginal increase to the cashback of 65.7% in Q1 FY '26, but a significant drop from our Q4 FY '26, where the cashback was closer to 69%. The marginal increase, as compared to Q1 FY '26, is primarily on account of mix of higher corporate credit cards as compared to prepaid cards.

As credit cards have a higher share of cashback attached to it because we include the cost of funds there, and hence the marginal increase. With reference to standalone employee costs, we expect employee costs to go up in Q2 FY '27 to the tune of Dice employees who have come on board during the quarter, as highlighted previously.

With reference to other expenses, Dr. Raj has addressed the one-time nature of the increase.

Going forward, we expect this to taper down, starting Q2, to give more realistic picture on how the P&L will be shaping up. With that, I would like to conclude my update and we are happy to open the floor for questions.

Thank you so much.

Hi sir, am I audible?

You are.

Yeah. Firstly on our revenue growth, it has slowed down significantly.

This is majorly due to both program fee and SaaS fee. Why is this exactly the case?

Could you explain?

Yeah. On the revenue growth, I think Q1 is typically about 18% of the entire year, okay?

The growth rate, which is about 27%, we see that in the coming months it would significantly increase.

Got it. I'm asking the question, sir, because we've been growing at 40% to 50% for the past five, six quarters, and I believe we've also guided for 40%, 45% on a consolidated basis this year.

We've already dropped to 28%. Do we still keep up with that guidance?

Siva, Avinash this side. I just want to add what Dr.

Raj said. Two clear factors.

The SaaS revenue gets augmented starting Q2 with Dice numbers. While we've taken the costs and done the work for those contracts in Q1, that revenue has not come in.

That's on the SaaS side. On the program fee side, we've taken a very conscious call to optimize for both cash flows and to work on controlling or calibrating our capitalization.

Hence, those banks where working capital cycles have been longer, we have taken the decision this financial year that we will move some of those customers to a different bank. That recarding process also takes some time.

That's a call that we have taken to make sure that as we go through the year, the cash flows improve and we're moving volumes to those banks where we're getting realization of our revenues faster.

Our guidance was 40% on a consolidated basis, and we are not moving away from that guidance as yet.

Am I audible, sir?

Yes, you are.

Just now wanted to understand now with this Dice consolidation, I think you mentioned that you are going to provide the EBITDA guidance, right? Can you throw some more light, how should one look at your EBITDA margins going forward or this year?

This year if you look at

Hello? Sir, you are not audible, sir.

Yeah.

Am I audible now?

If our consolidated EBITDA margin is about 8.2%, and what we see is in the coming months, we will come to know more closely as the revenue from Dice also kicks in. Right now only the cost has come in, but the revenue has not come in, and we will guide in the coming quarters on the EBITDA margin.

Okay. So

But Sir,

hello?

Yeah.

When you say only cost has come in and revenue has not come, ideally when the revenue comes in coming quarters, you will see only a upside potential on your margins, right?

Correct. About 3 crores is the cost which came in in the last 2 months of the last quarter, and we were not able to have any revenue because contractually the revenue is to start from July 1st.

We are hopeful that when revenue kicks in, margins should improve.

Margin should improve. Ideally this is the lowest point of the margin, 8.2%?

Ideally coming quarters, we will see a better margins profile, right?

We have reached about 80, 80-odd thousand cards on Zag.money. If you see that on Zag.money, we have lost, which is what we had earlier guided, that about 2.5 crores is what we have lost on Zag.money.

The whole idea is that while we are continuously bringing in operational efficiencies, but all the other investments which we had taken, we have to keep that into account as well.

Hi. The first thing I want to understand is this selective pushing of expense which were earlier capitalized now to P&L.

Firstly, if you can explain what is the nature of this expense? Why were earlier this being capitalized and not pushed into expense?

Now also when you're looking to sort of expense this out, why are you still doing it selectively and not the whole sort of amount?

There is no selective capitalization which is there. This is a part of the process that eventually we are moving towards.

If in an ideal state, I would say that we'll go ahead and expense all the costs, but as a process, it will take us significant period of time to be able to do it. What we are doing is the cost whichever we think that this can be expensed is what we are moving towards expensing it.

Okay.

What are these nature of expenses?

Just to add a couple of points here, Avinash this side. One, we are relooking at our capitalization policy and we will give more clarity in the coming quarters.

The second, of course, sir, you will appreciate that this is a decision that we need to take in conjunction with our auditors, and we need to be able to convince them also as to what are the expenses that come into the P&L straight off the bat and what gets capitalized.

Yeah. I just wanted to understand this, what are the expense which were earlier being capitalized and now you feel that we should expense them.

If you can, whether it's the product development expense or something else if you can highlight.

This is infra costs. Sorry, go ahead.

Yeah.

This is some of the product development cost which we have taken, okay, on one particular product which is a immediate product which is required by the clients in the market. What we did was that particular cost which we did, which was roughly about 6-odd crores, is what we have gone and expensed it completely.

The policy is going to be that we expense more than we capitalize over a period of time.

Hello. Dr.

Raj and Avinash, I would just have a couple of questions. The first set of questions are around the Dice acquisition.

Congratulations on completing the Dice acquisition. Have we completed the technical integration of our payment rails with the Dice software, and have we started converting customers on the payment rails on Dice?

Majority of the integration is done, okay? Last bit of integration, which is pending, will get completed probably by August 31st or max September 10th.

Once we have done that, it will be a complete integration.

Basically, can we look forward to Q3 onwards having some sort of payments related revenues coming from Dice as well?

100%, without a doubt.

Hi. I wanted to check on what's the median revenue per customer, if you can share that?

It is roughly if you take about 423 crores divided by about 4,000 customers, that is what is the revenue per customer.

Okay. Just to confirm on Dice,

you're

saying the revenue starts flowing from Q2 or Q3?

Revenue starts from Q2, okay? July 1st was the date, and it is already started.

Some of the money has already started coming in, and the full pick-up will happen from Q3 when we hope that by Q3 all the contracts would have novated.

Thanks. The second question that I had was around this slowdown in program fee.

Though you have alluded a bit about it, but for the rest of the year, how should we sort of look at it? Would it be a one of those year wherein you're sort of consolidating and the program fee growth would be low teens, mid teens?

Because 15%, sorry, 10% program fee growth is the lowest what we have seen in last 3-odd years of our journey. Since this is one of the major revenue for the standalone business and wherein we are guided for 20 30 25%, 30%, just trying to understand if we are still on that track or we are again changing some guidance around that.

Yeah. As we alluded in the speeches as well, the primary focus is on cash flow optimization as well as calibrated capitalization.

Having said that, the growth in program fees should improve in the coming quarters. There've been some geopolitical tailwinds, especially for travel as well, which has had an impact overall in terms of the spends.

Frankly speaking, we are more worried on three things. One is the cash flow, the second is the capitalization, and third, if you are to ask me, how much as a percentage of program fees is cashback rather than just rupee or dollar value of program fees.

We are primarily optimizing on these and not so much on the raw number in terms of program fees.

Just to answer your question, you would see a significant improvement, in the coming quarters on the program fees. The 10% growth, is by is by design, and the growth should improve in the in the coming month, in the months itself.

Okay. That would mean that when we have Q2 results, there should be meaningful improvement in cash flows and the incentives as well, because if you're optimizing for that and the growth is obviously slowed down substantially, that should reflect in your working capital cash flows and improvement in the incentive cost, which again in Q1 isn't there, but by H2 that should happen, right, if you're saying that you're sort of optimizing for it?

Sir,

the attempt is that, but all these actions have their own gestation period. To be very honest, we don't have a real immediate handle that we press a button and this happens.

You'll appreciate that these have gestation period. That's what the effort is.

We're hopeful that we will see some improvement across these matrices.

Am I audible, sir?

Yes.

Thank you, sir, for giving me opportunity. Sir, as you said that your guidance is 40%, what is the key growth area for this?

How we grow as in first quarter we have 423 revenue, in next three quarters we have to do 1.5 times of this.

Sorry, sir, unable to hear you clearly at all.

Yes, I'm using handset. Sir, I'm audible?

Sir, am I audible? Now clear?

Okay.

Hi, good evening. Hope I'm audible.

You're audible. Yes.

My first question was on the revenue growth itself. Now, obviously, you are also alluding that we should start looking at revenue excluding the cashback because that gives us the right picture.

Just on a net take revenue basis, what I'm calculating is that versus quarter one of FY '26, this quarter, we are up almost about close to about 16%, if I talk about excluding the cashbacks. Program fees seems to be up about almost 10%, and revenue per customer seems to be up almost about 3%.

This quarter revenue also includes 44 crores of GreenEdge gross revenue that wasn't there in the base quarter. I just want to understand what was the organic net revenue growth excluding GreenEdge and Zag.money, if we just talk about the core engine that was there in the last quarter versus this quarter, because it seems like that has slowed down a bit this year.

No,

it is about 18% is the growth on a standalone basis and which we had projected that overall it would be about in the 25% range is what we had projected for the standalone, and we still stand by that guidance that we would be able to grow to that number for the entire year. The growth which you are seeing on a consolidated basis is roughly about 28%, which we hope to be in the range of 40% as we go through the year.

Okay. I had another question.

Can I pitch in?

Please.

Okay. Obviously, this quarter, the Dice acquisition has hurt the operating margins, and I understand that.

That's completely justified. It's a good practice that you are bringing out the capitalized costs back into the P&L.

It helps the company in the long run. What takes it away is that because of these adjustments, that EBITDA margin that we have always been guiding for for the last many years in many media interactions with investor, etc., that we will be targeting a 13% to 15% EBITDA margin.

The clarity around it seems to be vanishing every quarter because the EBITDA margin per se in itself has become quite volatile. It's become very difficult to project what that EBITDA margin would be.

Could you help us understand when will that trajectory come back? When will we see a tailwind in the EBITDA margin matter?

When will it become stable? It can be 10%, it can be 11%, but when will we see stability because it's almost been six quarters of quite a volatile EBITDA margin?

No, if you really look at it, it is not. We have been in the 9%, 10% range for the last eight quarters, okay?

That has been the case all around for last eight quarters. What we have guided that 14% to 15% margin is over a period of 5 to 7 years.

The measures which we are taking today are basically to moving the trajectory towards that margin of 14% 14% to 15% over a period of 5, 7 years. That is the reason we are doing a lot of this capitalization.

We are bringing it to expense that keeps the balance sheet more clean. The second thing is to focus on the free cash flows.

It takes any cash flow which has to be corrected from a negative cash flow to a positive cash flow would take about 16 to 18 months over that kind of a period of time, okay? All this we are doing is in the short term, which is I would say you take 15 to 18 months is how you take that period, and post that it's the normal growth.

The other thing you look at is that some of the acquisitions which we have done and the company has concentrated a lot of time and effort in acquiring these companies, okay? Some of these companies' valuations have shot up by 5, 6x, okay, which is not getting reflected in our stock today.

What we hope is that by keeping on this trajectory, ensuring that we use a expense policy rather than capitalization going forward, focusing a lot on cash flow, and grow the revenue would be the three levers which would help us in the future. To answer your question partly that the volatility has not been there.

It has been in the 9%, 10% range. This quarter it has come down.

As we had told that we are doing an acquisition, and some of these acquisitions take time to prosper and flower.

I have only one question. Like this quarter, previously the growth was good, sir, but the cash flows are not there.

Now you are mentioning that you are focusing on cash flows for which you need to let go of the growth. I want to understand when when can we expect both, sir?

When can we expect good growth with good cash flow?

Sir, what you are asking is something which we are striving for, okay? As it's a process.

Every quarter you will see that we'll work harder and harder on ensuring that we grow, okay, and we grow positively, which means that the growth is there and cash flow positiveness should come. Every quarter is what our focus is.

Every month is what our focus is. Every day is what our focus is right now.

We want to ensure that we don't compromise either of the two.

Okay. Sir, and one more thing.

I think in the last interview in some TV channel, you mentioned that you are planning to buy shares from open market, but after that, we haven't seen much purchase from promoter. Is there any plan of purchasing shares at this price, sir, as stock is down a lot?

Sir, we are employed professionals in the company, sir. Whatever money we came in, and last time also as I said, we immediately had 5 crores liquidity.

We immediately bought 5 crores worth of stock. As we get liquidity, we will keep on buying the stock, and that is our standard.

This is not something which we announced last time and we bought. Previous to that also, we had bought shares.

Previous to that also, we had bought shares. Every time we have not sold a single share.

We have been only buying shares.

Thank you, ma'am. Sir, as you are investing heavily in AI across Zoyer and Save and Propel, at what point do you expect AI to become a meaningful revenue driver rather than primarily a cost-efficiency initiative?

I'll tell you on AI. The impact of AI on the business, there are two kinds of impact.

One is the internal impact and one is the external impact, okay? Key point which I addressed in my speech was that last year we were able to optimize a fair degree of entire cost base through FY '26 only on account of internal development done using AI.

This is around 12.5% of the expensed cost base. The whole idea is that we have reduced new feature launch timelines by up to 50%, okay?

On the external look at it, now we are able to go to a client, tell him that we are able to solve much more complex problems for them, okay, and to significantly large corporate. We have been able to do it with our AI.

In fact, our Project Shiva, which is called Zaggle Brain, we'll showcase that and we'll probably file it on the exchange also in the coming months, is a beautiful philosophy for which we'll go for patent as well, okay? All of these are already started to show some kind of payback period right itself, okay?

Even in every contract we are seeing that we are able to go ahead and make some money basis AI. As Avinash had also mentioned, these are very, very large customers who have come in is on the strength of our product Propel AI, Save AI, on P2P AI, and expense management.

The payback will become much, much faster in the coming months and quarters.

Sir. Sir, as you have told Dice revenue expected from FY '27, how much percentage are we expecting?

What revenue we are expecting from Dice?

Sir, last year they had done about 12-odd crores, okay? We expect that at least we are able to achieve anywhere between 15 to 16 crores this year, okay?

As gross margins there are about 90 percent plus. We expect that we should be able to do that, and next year probably much, much better because the full-year impact will come in, as well as all the efficiencies related to we putting the payment rails into Dice software will also yield good results.

Thank you all for participating in today's call. We hope we have addressed all your queries and provided valuable insights.

We remain optimistic and focused on the future growth of the company, and we are excited about the opportunities ahead. For your any further information, we request to you to get in touch with SGA, our investor relations advisor.

Thank you and have a nice day, and a great advance Independence Day to all of you.