Thanks, Vinita. Are you able to hear me?

Is it clear?

Cool. Thanks, Vinita.

Ladies and gentlemen, good evening. Welcome to our earnings call of the financial year 2025-2026 end, and for the Q4 of FY '26.

As in every earnings call, just re-articulating what we're trying to build at BlackBuck. BlackBuck was founded about 11 years back to solve the trucking problem of the country.

Any space you pick up within trucking has massive opportunities, massive inefficiencies because of the fragmented nature of the space. Application and use of technology, there are possibilities to lift it out and put it in an orbit where a new world of trucking for India could be imagined.

That is how the whole journey of BlackBuck started. We have toyed around with a lot of experiments in this space.

As we speak, BlackBuck's definition today is nothing but all the experiments, all the successes we've got over the last 11 years, which has taught us a lot, we've learned a lot, and what has become is the largest digital platform for truckers in the country. We have close to about 8 8.5 lakh monthly transacting customers on an average across the whole financial year, which roughly represents at a India level in excess of 25% to 30% close to of Indian truckers using this platform.

They use this platform very deeply, because the platform we've built has so many use cases solving for the trucker that he ends up spending 45 minutes on our platform, our mobile app, BlackBuck, daily. Because of the nature of the business, nature of the customers we have, we've got a very strong offline presence having over 10,000 touchpoints on the ground through which we service, through which we acquire and retain our customers.

That's the crux of what BlackBuck is and what we've built. Diving into summary of numbers of last financial year: on a gross income level, we've done close to about ₹715 crores in total income, which is growth of about 55% on a year-on-year basis.

On an EBITDA basis, we've done close to ₹167 crores, which is a 80% growth on a year-on-year basis. This is our first full year of profitability at a PAT level.

We have done ₹160 crores in PAT in the full year financial FY '25-26. Not only the financial numbers, we continue to compound on our operating metrics, which are the top-of-the-funnel metrics for our revenues to grow and compound.

We grew in our transacting customers by 13% on a year-on-year basis to close to 8.2 lakh monthly transacting customers across the whole year. Users who use more than two services, who are our power users, we've compounded at 22% year-on-year.

That's why you find the revenue to be compounding much stronger than the transacting customers, because customers use more and more products on the platform. One of the leading metrics on payments vertical is tolling.

The GTV of tolling for us in the last full year grew at about 27% on a year-on-year basis in a very mature and penetrated industry, largely driven by a strong product play and a distribution play. Speaking about the core highlights of this growth, more talking about the recent quarter of FY '26, the last quarter Q4 FY '26, year-on-year growth on the Q4 '26 basis, we did about close to 52% on a year-on-year basis.

If we split that into core and the newer businesses, or the growth businesses, core businesses grew by about close to 30% on a year-on-year basis in the last quarter, on a full year 34%. This business, obviously on the back of the payments business, which is tolling business, grew at a 27%, which we spoke about, in the GTV growth was 27%, which we spoke about in the last slide as well, which when you compare to the NETC CV growth, which was about 16%, still driving 11 percentage points delta over the industry growth, largely because of a strong product, and largely because of a strong distribution.

Overall business definitely has grown at a higher level, largely because a stronger growth in the telematics business, which continued to deliver strong sales numbers. Under telematics business, we've different product categories, where there is a basic GPS, basic vehicle tracking service, and there is a AIS-specialized vehicle tracking service, which is largely driven through mandates.

The sales of the AIS vertical doubled during the last quarter, which was largely driven by mandates, and largely driven by a strong distribution and a product play. That's the narrative on the core business.

Coming to the growth businesses, on a year-on-year basis, they grew roughly close to about 300% in the Q4 of last year, right? Largely there the gross revenues are composed of the vehicle finance business and the Superloads business.

Superloads business, the narrative continues to be the same: our mature or, let's say, our first hubs of Bangalore and Hyderabad, we continue to scale, continue to double down, and these continue to show signs of strength from a unit economics, from a scale perspective. We had updated to you couple of quarters back that we started our business in 10 new cities.

Most of those cities, or all the cities, are growing much faster than the earlier established cities, and largely because of the network effects of existing customers' relationships, which we've activated in the older cities, they have translated to the business for these cities directly. The supply base which was activated on Superloads in the existing cities continue to be leveraged and utilized in the new cities as well.

That narrative continues to be the same, and we're doing everything it takes to grow that faster. In the vehicle finance business, which is under the growth business a bit older business compared to Superloads, there, this last two quarters were very strong in terms of disbursements for that particular business.

The previous quarter, we delivered a growth of 30%. On top of that, the disbursement further grew by 25%.

Definitely a seasonally strong quarter for that business, but on top of that, strong execution has led to driving this growth. Good part about the vehicle finance business under the growth business umbrella is that, as you all know, we basically are investing a lot of money in our growth businesses, a lot of money which we generate in the core businesses, we're investing in the growth businesses.

Vehicle finance business probably, by the end of this financial year, would no longer be in the investment mode, and would start probably churning cash flows, which will also enable us to move that into a core business kind of a trajectory from a narrative perspective. Moving forward, commentary on profitability: broadly following the trends of the last three quarters, overall yearly growth in EBITDA has been at 84%, which has moved to ₹190 crore trajectory, which we spoke about.

On a recent quarter basis, the rate of growth in profitability is 30% on a year-on-year basis, and we delivered a ₹50.2 crores of adjusted EBITDA in the last quarter. Largely, the narrative, if you cut across, the momentum and the quality of revenue growth and profitability growth has largely been consistent compared to the last 8 to 12 quarters in the core businesses.

Regardless of a bit of unfavorable macro headwinds in the last quarter, we continue to execute and deliver this profitability, right? Even if you look at metrics like operating leverage in terms of translating the revenue growth moving into profits, most of that is holding good in the core businesses as we speak.

Moving into the newer businesses, that's where we continue to step up our investments, because these are in the rapid expansion phases. We are conducting multiple experiments, be it on the supply side, be it on the demand side, be it for faster scale up, be it for quality customer service, be it for maximizing profitability, be it for blitzscaling in certain customer segments.

We are taking up most of these experiments parallely, which makes it imperative to add teams, add product and technology team members. This is also the area of strong investments in AI for us, because Superloads probably will be one of those businesses which will be an AI-native business for us, as we strongly execute this vertical.

One area we wanted to give a heads up, I think, this is something which is not a hidden topic, but everybody knows about this, probably being in the heavy truck movement, intercity movement, which typically can feel the headwinds, maybe quite early on compared to others, right? We believe that the West Asia conflict, which is a widespread conflict not only for us, but for the whole Indian economy, will have short-term headwinds with anticipated drag on freight movement, and which, obviously, because most of our revenue comes from flow-throughs, but we continue to climb on our revenues, that will be consistent, but maybe create a drag on our short-term growth.

Long-term growth profile, long-term projection of how our operating metrics will play around, everything will largely remain same. Long-term retention rates, long-term ARPU rates, everything will be consistent, but I think in the short term, there would be some headwind which we need to be watchful of, we need to be prepared, and we are actively doing that.

One small narrative on that, which is a very direct impact, is as you know that we have a fuel business which goes on, which is basically built on top of the loyalty program which OMCs work on, and they have suspended their loyalty program temporarily. That's the bad part, the good part is this has happened, a bit of hiccups on this business segment has happened in the past as well, and some of this takes a bit of short time, then it comes back.

Yes, some of these minor headwinds, we'll be facing. Some of this impact has already been absorbed in the last quarter's profitability, and some of this impact will show up in the next quarter as well.

Again, reiterating, none of this is a structural change, or none of this impacts long-term customer acquisition, neither long-term customer retention, neither ARPUs, and yeah. That's the broad narrative on the business.

Giving you a broad highlight on the P&L, as we have narrated already, on the top line, 46% on a quarterly year-on-year basis, on a full year basis 55%, net revenue growth 31% on the recent quarter on a year-on-year basis, adjusted EBITDA growth of 30%, right? Full year, as you can see here, adjusted EBITDA is ₹190 crores and PAT is ₹160 crores.

We've always given this narrative that our adjusted EBITDA mimics the free cash flow from operations, in the full year of financial year, we've delivered close to ₹185 ₹190 crores of free cash flow, which has been a consistent trend of EBITDA to adjusted EBITDA to free cash flow conversion for us. That's again on adjusted EBITDA basis a full-year growth of 84% on a year-on-year basis.

Broadly zooming out and giving you a 4-year view, broadly from the timeline we went public, so that it's easier to look at these trends, because we articulated that this is sort of the business model which will be playing out. If you can see, on adjusted EBITDA basis, from FY '23 where we were in a strong user acquisition mode, we continued to be in a strong user acquisition mode, but the annuity revenues had not played out till then.

That converted into roughly close to -₹6 crores in FY '24, and then turned around a strong profitability on adjusted EBITDA to ₹103 crores last year, and that has moved up to ₹190 crores. That's a fillip of close to ₹400 crores, ₹360 ₹464 crores over a 3-year sort of a time period.

Same thing on PAT is even more stark to observe: from a negative of ₹290 crores in FY '23, that's a ₹450 crores turnaround in profitability in three financial years. That has been the trend.

As we have accelerated in FY 2025-2026 into newer businesses, the core businesses will have a continuing follow-through trend as you can see here, but the growth businesses will consume money. In the overall basis, we will have a balanced tradeoff of continuing to churn profits from core businesses and continuing to invest in the future so that we probably end up building a massively large company and massively transformative company in the space in the long term.

Reiterating the strategy: as I always explain, I personally take a pride in executing the same strategy every year, because that also gives a testimony that the strategy articulated a year back largely was profound and sound, and it helps us have a longer run through, and our decisions stick with the test of time. Strategy largely remains the same: that we have core businesses, on tolling, fueling, fuel sensor, vehicle tracking, AIS, GPS, and multiple experiments within the core businesses, the new businesses under core.

Here, the key focus will be to continue to compound on profitability, which will be enabled through operating leverage, will continue to expand our market share. As the landscape continues to evolve, because the space is attractive, will continue to attract few players here and there, we will keep track of that, and we will not let the long-term picture go out, and we will keep investing in this business as well.

While we've delivered consistent operating leverage in this business in the last two, three quarters also, we've also stepped up investments in core businesses as well. Last time, I had highlighted that.

I thought I will remind that again. In the growth businesses, again, the playbook is same: we are betting on Superloads and vehicle finance over here, and classifieds continues to grow, and we have an army of new experiments which we continue to do.

These are the businesses we believe in with a very long-term potential, and as we execute, the roadmap continues to get clearer, the confidence on execution in these businesses continue to improve. Some of these businesses, if God's kind and we execute well, will move into the left side of core businesses as we move into the next year.

Simply put: doubling down on execution in the core, and turning more and more innovative, and stepping up investments on the growth businesses. That's a summary of the strategy for the next year as well.

We will pause here, and we can take questions. That's from my side.

Yeah.

Hi, team. Hope you can hear me.

Thanks for the opportunity. My first question is, basically on the Superload business.

While you have mentioned in the PPT that Bangalore and Hyderabad are showing strong unit economics, do do you want to elaborate a bit on this? Like, are these hubs operating on breakeven?

Any quantifi- -fiable metric that you can share or highlight? That's my first question.

Yeah. I think largely it's a technology business enabled through manpower, right?

The direct costs of business are manpower costs. Largely, upon tenuring of manpower, people hit breakeven periods.

More tenured manpower definitely returns money to the company. Newly hired manpower does not.

From that point of view, it's consistent, right? Upon continuous scalability, the equation continues to hold.

That's the strengthening unit economics part. When you launch a new business, you first reach an ability to plot a P&L for the business in the future.

I think we are able to do that strongly. I think that's all we can share at this point in time.

Yeah.

Right. Just on that space, are we continuing to invest in our existing cities as well for the manpower, we are increasing manpower in those?

We are. We continue to scale teams rapidly in the existing cities also.

If we stop that, we can side breakeven very fast, but that's not the objective.

Okay. Understood.

In the vehicle financing space, could you shed some color on what's the book size as of FY '26, how much is on our books, or let's say disbursement growth, or ticket-sized growth? Any metrics you want to highlight?

Yeah. So, close to ₹600 crores is the assets managed by our partners overall, like partners and our books.

About, 10%-ish is basically on our books. That strategy remains constant, basically whenever we onboard a new partner, for the new partner's confidence, we do a, co-lending book together, and any new experiments.

If you see our book, large part of the book is new experiments as well. Anything we want to launch or we want to see, we first perfect it on our book.

Our book, we will only use, for, newer experiments and to probably launch new partnerships. We continue to build the vehicle finance on a asset-light model, as we have always articulated the last three years.

The strategy remains the same. Yeah.

As you always understand, because the we get a sourcing fee and then we get a, like let's say, operational fee continuously, so as and when partners make more and more money from the book, the revenue share, in revenue, absolute revenue made by us also increases. That's the broad nature of this business, and the fixed costs, if they get covered out, this business will enter the breakeven phase.

All right. If I can just squeeze last question, you have seen the improvement in your working capital days, mainly because payable has increased.

Where is that coming from? Is it mainly because of the Superload business?

I'll ask Satyakam to take this question.

Yeah. Working capital days, Atul, always has been pretty robust for us, if you can see, no receivables exceed more than three months.

At least 50% of the revenues are received in advance for a year, if you look at the telematics business. On the other businesses, it's less than 30 days.

On payables, there's nothing much that is there. It's a very small number.

Some of the, let's say, purchases of telematics, etc., is what would be the AP that would have been built up, but nothing material has changed.

Okay. Thank you.

Those were my questions. Best of luck.

Hi. Good evening.

Thank you for taking the question. I wanted to touch upon, Rajesh, on the MLFF system that the government is now aggressively trying to target.

The couple of pilots as per news articles has gone well, and they're targeting 200 corridors in a couple of years and potentially nationwide rollout by 2029-30. Can you just talk about MLFF being postpaid?

Of course, you can also have a prepaid FASTag wallet, but how do you think about our relevance to our customers sort of reducing over time, and how do we mitigate that? Thank you.

Yeah.

Basically, the whole framework of MLFF is on prepaid collection, that's point number one, right? Because in India, small ticket sizes, postpaid, and enforcement and the cost of collection of that is going to be very high.

Even now, in the current framework, if you pay later, there's a penalty fee of double, right? When you use the word postpaid, first of all, it'll be prepaid, right?

Second is that in the MLFF construct, right, the way to understand is that there are two ecosystems: there's acquirer ecosystem and there's the issuer ecosystem. 100% of our revenues are from the issuer ecosystem, right?

The MLFF replaces the existing acquisition ecosystem to a MLFF-based acquisition ecosystem, which uses cameras and much better quality RFID readers, right? That's the construct.

In the full-scale rollout of MLFF as well, the payments methodology is basically FASTag. That is what has been articulated, and that will continue.

Point number one, the relevance of issuer ecosystem in terms of FASTag being the lead vector of conducting payments from the issuer side is going to be there forever. Now, so that's base case, right?

Then the next context is MLFF graduating into a satellite-based system is basically the next thing. Even in that change, the change is again on the acquirer ecosystem, not on the issuer ecosystem.

That's even if you fast forward MLFF into the satellite GNSS-based tolling era, right? Now, answering your question in MLFF again, right, because MLFF again provides an opportunity on the acquisition side to enter, because largely it's a telematics-led capability with a technology stack-led capability and being present in this ecosystem for a long period of time.

Would we as BlackBuck be keen to participate on the acquirer side, right? That is something we are, let's say, in talks with various players to discuss and see if we can jointly enter into some of these opportunities as we move forward.

Thank you. That's very helpful.

Just as a follow up, what percentage of MLFF payments today are prepaid? Is it 100%, or is it lower?

Because I might be wrong, from what I read is, yes, there's a penalty if you don't complete the fine with the stipulated period, but it's a postpaid arrangement.

Whatever offline information we've received, we believe 99% plus of the payments are prepaid.

Okay. What kind of opportunities

Because if the tag doesn't have a balance, it's considered as a offense as per the way it is defined, and there is a penalty for it that you don't have a balance in your tag and you've crossed it. It's a penalization framework and not a encouragement of postpaid framework.

How do they even check the tag, because there is no barrier where you're stopping to check your tag?

The whole gantry system which is created on top of the tollgate, the RFID readers, which erstwhile used to be very close to the RFID tag, are now on top of these gantry systems, number one. Number two is that they're using cameras to read the number plate, and government with One Vehicle, One FASTag has already implemented the unified mechanism where a truck or a car only has one FASTag.

With this whole ecosystem, they are able to achieve this high level accuracy of collections.

Lastly, what kind of partnerships are you exploring when it comes to the acquirer side of things?

We are in very early stages. We are in very early stages of exploring these.

Once there is more concrete plan on this, we would be happy to share.

Okay. Thank you so much.

All the best.

Hey. Hi.

Am I audible? My name is Ritvik.

I'm from 3P Investment Managers. Just had one question.

Wanted to understand more on the telematics business. Any updates on the number of telematics devices that we have now, and how do we see the growth in this business going forward?

Yeah. Yeah.

Telematics business growth, I'll give you some color so that you will be able to get a feel of where the devices may be, etc., right? Basically, if you split the business of telematics into three to four parts, one is our core vehicle tracking device, which is regardless of mandates, which is a basic GPS tracking.

Second is the AIS device, which is driven by mandates, right? Third is your fuel sensor, and let's say, the new initiatives like dashcam, etc., right?

The basic GPS device penetration, obviously, coupled by a bit of cannibalization by AIS, because AIS is now mandatory across 10 states, which drives the growth of AIS, but for the basic vehicle tracking device, that growth rate, let's say, is on a lower side, right, than the overall core business growth rate, in the range of that 15% levels. The AIS device, because it's a mandatory device in various different geographies, etc., is seeing a very strong growth, as we also gave you narrative that over the sequential quarter, we doubled the AIS numbers as well.

Sales is increasing at a very fast pace, and revenue will follow suit in time or the other. Fuel sensor business, again, because it's a newer business in the stack, that continues to compound, right?

Overall as a telematics category, because of a mix of each of these kind of businesses sort of put together, delivers a much higher growth rate, right, than the rest of the core businesses. This is the broad model to understand.

Understood. A second question on the disruptions from the Middle East war, just wanted to understand is that the reason why we have shifted to a tolling GTV-only metric?

Yes. To be able to better appreciate what's happening beneath, we segregated that metric and started giving tolling GTV so that that's the largest part of the payments GTV also, and also drives large part of the revenue also, so that gives you a direct indicator.

Any sense on how much percentage would be tolling GTV of the total payments GTV? That we can make a

I think broadly, you can assume 90%-ish basically, yeah.

Understood. Okay.

That's all from my side. Thank you.

Hi, Jeetu Panjabi from EM Capital Advisors. I joined a little late, but a basic, mundane question: when I see your growth numbers, they look pretty good, and then your margins have come off.

Is this a function of you investing in the growth businesses, and those costs adding up, and does the margins headed softer? Hi, I can't hear you.

Sorry, Jeetu. We lost you.

We only heard part of your question.

I'll repeat. Sorry, my apologies.

Can you hear me now?

Yes, we can hear you.

Okay. My question is, sorry, I joined a little late, but the headline question was when I saw the growth numbers, your growth numbers look good, but your margins have softened.

Is that a function of y'all investing more capital or more money into the growth businesses, and thus those costs adding up and coming and hitting margins?

Of course. Yes.

Okay. Second linked question is, is there a thought process in terms of the balance between growth and profitability, and how would you manage that as you navigate the next 3, 4 years, and also what is in your mind the growth you'd be comfortable with over the next year or two to guide?

Yeah. I think a good question, but I think the way we think about growth and the balance of profitability is a little opposite, because for us growth is actually an outcome, because we don't manufacture a growth rate.

Let's say, for example, core businesses are there, they are based some of the strong fundamentals of the economy works, and how our acquisition engine works, right? At every point in time, we try to go in to invest till the time it's not profitable to acquire that customer anymore, right?

That's the way we go about driving growth, and the growth percentage comes as an outcome, right? That's point number one, because getting a customer in a unprofitable way doesn't help the company, doesn't help anyone in the long term, because that's not sustainable, right?

Point number one. Point number two on how do we balance growth versus profitability from a long-run perspective: again, whatever compounded profitability number you are seeing, it's again not a calculation that we should have done 100 of core profit and then we should have invested only 20 and 80 we should delivered as profit.

Again, that's not a number. We are in a very large industry, right?

It's a $200 billion kind of an industry, and we've built a company which is very small till now, and there are so many avenues to grow, right? The way we look at always is that are there opportunities to pursue?

In the testing phase, what will it take to really invest into these opportunities? God's been kind, the kind of platform we've built, most of the new opportunities we're able to test it out on a very small base, so that even does not ever affect burn.

The burn comes in only when we try to scale up. That scale up has a very strong bar on being able to define micro-markets, being able to define ability to turn profitable whenever we want, right?

The way to look at is we define the quality in which we want to build a business, and inside that, if we get an opportunity to invest and an investment makes sense, right, we typically look at allocating capital, regardless of what that quantum is, right? This is our framework of going about newer initiatives and the existing core businesses, because this just keeps it very clear in terms of that we are building a company which always has to be highly innovative.

We will invest in every opportunity we get to if that's going to be long-term profitable, and that's going to solve a customer's problem, and that's going to return immensely to shareholders in the very long term, right? That's how we look at it, and whatever you're seeing, it is an outcome of such a input process.

Thank you, and that helped clarify a lot of things. What headline growth do you think the company would sustain at?

We as we like generally don't give growth guidance. I think, this is, yeah.

We've typically helped you guys to plot how to, look at the business, how it will scale, etc., but yeah, but we have like we've decided not to give guidance, on our numbers.

Okay. One last question if I may sneak in: there was someone, the senior team, who left.

Can you talk about the reasons and what happened there?

We've spoken about this topic in the past. The team at BlackBuck which reports into me typically has a average tenure in the company of 8 years, right?

The company is 11 years old. That was the case even when we were going public, because we were going public when we were 9 years old, and the average tenure of people who were reporting to me was 7 years.

They were the earliest of the employees, built the whole company, did good for themselves, right? Three people left from a SMP perspective, right?

One of them, I think, left within about 2 to 3 years, and other two of them were very long with us, 7 to 9 years. One of them left to pursue building his own company, one of them left to pursue sort of more balance on health, etc.

That's the context.

Okay. Thank you very much.

Good wishes. All the best.

Hi. Am I audible?

Hi. This is Ankush from Surge Capital.

Just one question. Few quarters back, the growth business, I'm looking at net revenues, was around ₹10, ₹11-odd crores, and last few quarters as we have scaled up the Superloads, we have reached around ₹15-odd crores of say, run rate.

About ₹5 crores extra. What I'm trying to understand is when do we expect this say, ₹5 crores of Superloads kind of net revenues starting to become say, ₹20, ₹30, ₹40, ₹50 crores kind of number?

Because in terms of cost, I think even if we consider that there are some extra incremental investment in core business, the cost base has jumped from say, ₹70, ₹75-odd crores to ₹100 crores now. Obviously, the investment look kind of high versus the incremental net revenue that we are generating on the Superloads at ₹4, ₹5 crores quite basic to be honest to begin with.

Yeah. I think the question is absolutely right.

I think the pace of Superloads definitely could have been much stronger. In terms of when that would come through, probably when the confidence on really going further all out in terms of strategies across all the newer hubs, etc., maybe I think that is the time when such kind of scaling can be expected.

Talking about the increase in the overall cost, remember that the investments in the core businesses also have been stepped up. The number which you're looking at it, a good part of that, let's say, is also gone into the core businesses, it's not only the cost of Superloads, right?

A good part of that also has gone into scaling up of vehicle finance, though the revenue growth of vehicle finance continues to be at a higher pace than the increase in investments, obviously, right? The part of that has gone into Superloads.

Completely is not Superloads, point number one. Point number two, definitely the growth rate could have been faster, right?

That's also our pursuit to make that happen. As we have always maintained, the playbook building on Superloads is taking time.

We are also taking a AI-native approach to ensure that we build the business in a much faster way and a better way. That's some of the narrative on how we are going about it.

Yes, we can expect that, we don't know when, is it 1 year down the line, or 2 years down the line, but then, yeah, that's the goal.

Right. The reason for asking this was, I think we peaked in terms of profitability say, back in say, Q1 of FY '26, almost 36% of, say, adjusted EBITDA margin.

Now we are sort of stabilized around 31-odd percent. Just trying to understand is this the kind of profitability that we could expect for say, next 1, 2 years, during which you sort of scale Superloads and some of the newer growth businesses?

Because unless those businesses scale up quite rapidly, the profitability might even come down or stay at this stable level about 30-ish percentage. Is that the right way to assume that that's how things play out?

I think the way the earlier gentleman was asking the question, right, profit percentage is actually again a much more further outcome, let's say, because we generate X in core, we invest Y. Now, we see rapid growth, we increase Y, right?

X largely follows a secular trend, which I was mentioning, follows the operating leverage construct, follows the growth construct. Y is all independent on that quarter need, and probably subsequent two, three quarters, right?

I would say that it's hard to put a number to this, but the way to look at is it's an outcome metric, and it is determined by X + Y, and if X - Y, in fact, Y is a negative sign, and then depending on what Y is, your X comes and X divided by overall net revenue is a percentage. That's why you see because the overall revenue growth happens, and then there is increase in burn also, and then you have a profit which also increases, it's a pretty much composite metric, right?

(X - Y) / total R, right? R_x + R_y.

That's how

you should look at it. Yeah.

Right. Would it be possible to sort of split, like how we are splitting revenues for the core and growth business, would it be possible to split the profitability as well?

Because then it's better for us to appreciate how the core business is playing out, and the investment, if you are doing in a growth business, and even if does burning cash, that is understandable as investors, but if we have a combined metric, it's very difficult to judge how the core business is sort of performing.

Fully agree with you, but I think we believe it's still too early. We will evaluate this down the year on when can we improve the visibility.

I definitely understand your pain, because modeling is tough for you.

Right. Okay.

That was all. Thank you.

Yeah. This is Abhishek from ICICI Securities.

Hey, thanks for the opportunity. Rajesh, yeah, I wanted to understand just a couple of things: one is you gave kind of a cautious outlook on the Middle East conflict.

How bad do you see your revenues getting impacted? As in if you could give some idea whether it's a growth slowdown, or could there be some sort of a decline also, that would be really helpful.

Secondly, on the vehicle financing business, and there's a question that I keep getting from investors, wanted to just also check with you: is there any right to win that we have in this business? Is there something of a unique offering that we are doing, which is kind of giving us the confidence to try to build here, given that there is already enough number of NBFCs and financial companies who kind of operate in this space?

I'll answer the questions sequentially. The Middle East crisis, the cautionary context was in terms of, as I think clearly articulated also, I think there'll be a drag on growth, right?

I think that's the thought process, point number one, right? What we are seeing, as I was mentioning, right, let's say, because intercity trucks typically are sit at the top end of the value chain, and mostly till March, I think there was a lot of inventory stocks which would definitely move.

I think going into April and May, we're finding some kind of drag on it taking off, because a lot of our revenues are also compounding in nature, you will see it in the very small sub-section, some kind of a number up, down here, there. I think that's the broad narrative on the Middle East crisis.

On vehicle finance, I think very good question. See, basically, vehicle finance in, let's say, the major players who do, one of the large capabilities or differentiations or right to win there for all of them is distribution, right?

Obviously, the whole aspect of credit engine, building intelligence with respect to a customer, right? Distribution and being very close to the customer is one of the most important right to wins for them.

If you look at for a truck operator, digital means BlackBuck, right? Our vehicle finance play is largely predicated on being a digital-first company, our mobile app is in the pocket of large number of fleet operators across the country.

We generate real-time data about these truck operators. Our vehicle finance play is predicated on this aspect, and that's yielding results, and it's more like grow in a growing market.

It's a very big market, and the whole technology-led approach to vehicle finance in terms of right from meeting a customer to disbursing the loan, for a large part of the customers, we're able to do it within 24 hours to 48 hours, 24 hours is something which we've achieved for a lot of customers. I think there is a technology play where there are small 1xs, 1xs, 1xs when you add up, it clearly gives an 8x to 10x play.

That's true from a differentiation perspective, but if you look at it from a technology kind of a business where you can architecture non-linearity, we believe that at the end of the day, it's a risk business for our partners, right? Partners will take cautious calls continuously.

We believe that it may not be a non-linear business, and we have to work with the partners with their own approach to cycles, with their own credit underwriting frameworks, and the delinquency management. We believe that it'll be a strong tech-led vehicle finance origination play, which is not non-linear, but will give sufficient profit generation in the long term if built in the right way, with the right partners.

I think that's the broad takeaway of that business.

Right. Just to expand a little bit more on this bit, you are not trying to guarantee in sort of volume of performance of these loans from their transaction behavior on your platform, right?

That is a call which is completely with the you are lending partner.

Yes, that is completely with the lending partner, and we make a origination fee and a collection fee depending on how well the portfolio behaves for them.

Got it. Thank you so much, Yabaji.

This is very helpful. Thanks.

Hi, this is Avnish from Aecaria. My question is around this growth business.

Is this business, as you said, it's in investment mode, do you sort of have any profits at contribution level, or they're also because of being in investment mode, it remains a negative number?

This is the good part, and also holds us back from going crazy. In trucking business, what we've understood over the years is that building a business with negative contribution creates a lot of negative behavior and sentiment amongst the market participants, because the nature is at the end of the day, it's a B2B relationship, right?

Most or all our businesses, regardless they are new or experiments or whatever, we are always contribution margin positive. We make money on an every order we do.

If orders scale, our profitability converges. Yeah.

Great. It's only at the EBITDA level, or below that, around that line item, it would be in negative number, right?

Yes.

Great. Thank you, and wish you really best.

Thank you.

I think that's all from our side. I think we've covered everything which was on top of the mind, at least has given you a flavor so that you guys have a feel of what we're building.

Again as I articulate, we always love to keep it consistent, because I think building businesses with consistent strategies over a long period of time with laser-sharp focused on few values and tenets creates, I think, big businesses and enduring businesses. I think that's what we are here to build.

Thank you so much for attending our financial year end earnings call, and see you guys soon.