Thank you, Michelle. Good morning, everyone, and thank you for joining us today.

On behalf of the management team, I would like to welcome all our shareholders, investors, analysts, and stakeholders to RNFI Services Limited earnings call FY '26. FY '26 has been a year of resilience, strategic execution, foundation building for the next phase of growth.

Despite significant regulatory changes impacting the certain legacy businesses, we have been successfully delivered strong profitable growth, expanded our product portfolio, strengthened our operating capabilities, and continued to diversify our revenue streams. For FY '26, RNFI reported a PAT of approximately ₹32.5 crores, representing healthy growth of around 62% over FY '25.

We believe this strong outcome considering the regulatory changes witnessed during the year, particularly in the DMT ecosystem, and in context of the overall industry growth trends. It is also to important to recognize that this performance was delivered while simultaneously making significant investments in building the future growth capabilities, primarily during the second half of the year.

In businesses such as our investments in distribution expansion, sales teams, collections, infrastructure, telemarketing operations, merchant acquisitions, and organizational capacity are largely expensed through our profit and loss account rather than capitalized on the balance sheet. As a result, these investments have immediate impact on the reported profitability, even though the benefits are expected to accrue over the multiple years.

During the second half of the year, we identified several attractive growth opportunities across insurance distribution, delinquent loan collection, and cash management services. When opportunities of this nature emerge, management believes it is important to invest decisively and build the capacity ahead of demand rather than optimize solely for short-term profitability.

While such investments can temporarily impact the earnings, they create a foundation for significantly larger revenue opportunities, stronger market positioning, and enhanced earning potential in the future. Many of these investments we are making today, we intend to position RNFI for the next phase of scale rather than merely support current operations.

At the same time, we would like to assure our investors that all investments are being undertaken with a disciplined approach to the capital allocation. We remain focused on balancing long-term growth opportunities with near-term profitability, cash flows, and return on capital.

Our objective is not only growth at any cost, but sustainable and profitable growth that creates a long-term shareholder value. Now, before discussing our outlook for FY '27, I would also like to address the question that some of our investors may have regarding the company's operating cash flow and working capital position.

One of the outcomes of our strategic shift towards newer growth businesses is gradual increase in working capital intensity. This is deliberate consequence of building a larger and a higher margin and higher return business verticals.

As our business mix evolves, we expect working capital requirements to increase alongside our growth, supported by strong profitability and superior returns on capital. There are two factors that explain the movement in working capital during the FY '26.

First, our insurance distribution, delinquent loan collection, and cash management services scaled significantly during the year. These businesses collectively required incremental working capital deployment to support the transaction growth, client acquisition, partner onboarding, and service expansion.

As these businesses continue to scale, higher working capital investment is normal and expected a part of supporting growth. Second, the regulatory change in the DMT business reduced the working capital benefits that historically existed within that segment, resulting in additional working capital impact during the year.

Importantly, while these newer businesses are relatively more working capital intensive, they also operate at substantially higher margins and generate significant superior returns on capital compared to company's historical average. As a result, higher working capital intensity is more than offset by a stronger profitability and superior capital efficiency.

As a matter of financial prudence, we expense these capacity building investments through the profit and loss account as they are incurred. Historically, investment of this natures have been generated payback within a relatively short period, typically between 6 to 12 months.

Looking ahead to our FY '27, management remains confident about the company's growth trajectory. Based on our current business visibility, strategic initiatives, and execution plans, we expect the profitability growth in the range of approximately 40% to 45% year-on-year, subject to market conditions and regulatory developments.

Importantly, we expect to continue incurring expansion-related expenses during the first half of FY '27, as we continue investing in the growth capacity. Despite these near-term investments, we remain confident in delivering the profitability growth outlined above.

The key growth drivers will be in our insurance distribution, delinquent loan collection, CMS, and other emerging businesses for FY '27. We expect insurance distribution and delinquent loan collection to continue growing significantly faster than the broader market, supported by expanded distribution capabilities, deeper client relationships, and investment made during the FY '26.

Paysprint continues to scale rapidly, and has delivered approximately 100% year-on-year growth over the period. We believe Paysprint remains in the early stages of its growth journey, and it's expected to become an increasing meaningful contributor to the group revenue and profitability.

Within our distribution business, we have initiated substantial investments in the field force expansion, merchant acquisition. While these investments will take to mature, we expect their contribution to become increasingly visible during the second half of FY '27, with a stronger impact expected in the fourth quarter.

Thank you, everyone. Now, I will ask our founder, Mr.

Simran Singh, to take the presentation, and then we can take the queries.

Good afternoon, everybody. Let me take you through the presentation.

This is the obligatory disclosure. Next.

Forward-looking statement. We've got a 2.4 lakh sahayak merchant touch points right now, catering to 130 partners.

Out of this, 95 are BFSI partners, offering 26 products, and generating our ARPU of ₹1,108 per sahayak p.m. ARPU of traditional is more than 1,200 right now.

Adding Payworld, this has got it to 1,108. We tend to increase this.

In the short term, we tend to increase the base. When the base increases, the ARPU is low, the average ARPU would be less.

As the base becomes old, the ARPU would increase massively. We have the three core things: the distribution, which has an extensive reach to Bharat, presence in rural and semi-urban markets too, stronger and trusted retail network; the main distribution and the fintech, the technology capability, which is very reliable, we're putting a lot of AI into it to reduce the cost at the support functionality end, is completely RNFI.

It's transactions processing through the platform, other products crossing through the platform, which makes a stronger economics because the expense remains the same basically, and keep riding the products. Next.

This is again the ecosystem for people who are new into the system. We've explained it previously also.

The central lane, if the left side is the sahayaks, more the sahayaks, more the number of products, better earnings for the sahayak, better earnings for us, superior LTV, CAC is very better. These are connected by tech, which is the Reliplay platform, the RNFI platform, which is deeply integrated with the partners, and because of the scalability, it reduces the cost for the partner, making them money and making us money, and getting more and more products from them.

As I say always, more the sahayak, more the number of products, more the partners, more the number of products, higher the throughput, higher the LTV, higher the CAC, exponential growth. This was our Phase 1, 2006.

We just concentrated on the payments as a service provider. Phase 2, we expanded, added more and more products, we started building the P&L, and now is the phase of monetization.

The balance sheet builder. We're getting more and more products.

We're working with a very large private sector bank acting as a partner for CASA, loans, and deposits for them. This should really catalyze balance sheet outcome for partners.

We're signing a bigger private bank there again. This should be a very, very big product in the future basically for monetization.

We've got a deep distribution ownership, technologies in-house, regulatory trust and compliance, we've got a few licenses in the group. We offer multiple products and network effects basically.

The service provider, profit to balance sheet builder is exponential growth because these all will work in tandem in this year and the next few years basically. Mind you, you have to understand, for us, we need to invest in the future to grow, which hits the P&L immediately, as Krishna also told.

We have to balance the profitability in view of the future. There's certain products which require immediate investment because they're very, very big.

Like a new product has just come, which is UPI cash withdrawal, still in very nascent stages, but it requires investments immediately, but that's going to be a very, very massive product in our vision. Next, please.

Operating leverage is our main leverage because the cost stays there and we keep on riding the products. Capacity building, major investment upfront is the distribution, which hits the balance sheet, and then revenue flows at a near-zero manageable with more and more products.

We've been putting more and more products like insurance, CMS, delinquent loan collection, which are massively better than the ROCE, which we are doing right now basically. You see a very, very different ROCE very, very soon.

Our sahayak network, no sahayak hits our revenue more than 0.1%, low concentration, presence in everywhere, which is our railroad to get more and more products over the base. Our product granularity.

We're pushing this for the first time. We've not done this before.

We would like to know you the BC business, even though it's a cash cow right now, it's making money for us, the EMI collection business is also making for us, but we have still put this as a red ocean and we're making money from the red ocean, putting into the blue ocean, and making money for and on these products, getting these products also to make money. I'd like to bring a certain thing: no single product contributes more than 8% of our PBT, as you know it's a regulatory business and few regular people ask us, if a product dynamic changes also, it should not hit us for long term, it should be for a very, very short term.

Competitive moat is our in-house technology, integrated tech, a robust API platform, faster integrations, we've been doing this for 10 years now, products, highest product with the sahayaks. Once the distribution is established, it's very, very low cost to distribute more and more products, and the superior LTV to CAC, please.

What went wrong in FY '26. We've always told you what went wrong.

Decline in DMT transaction volume for this year, but I guess from now, it's phased out. It should not be a very low impact in this year.

Our PPI DMT, due to RBI revised draft guidelines, we've shut down, but it affected us in the short term, but that's the reason it does around ₹4 crore of our bottom line, but compared to '25 '24-'25, but it should not make much of a difference this year. It's phased out.

New opportunity: new RBI BC-BO guidelines are coming, which should increase our CMS business. UPI cash withdrawal, as I just told you, it's an amazing product.

It just launched, in the nascent stages. We just launched it.

We were the first ones to launch it in the market with Jio Payments Bank, and for now, in whatever the share of the market is, we're holding a considerable share and looking to grow. AEPS has a ₹25,000 crore market per month, of which we roughly hold around 4.5%, 5%.

This product should be much more than that, and we intend to hold a much bigger market share because we've entered it right from the start. AD-II license has come in.

AD-II license guidelines have been changed by RBI just two three weeks back, where it lets us appoint forex correspondents. They are looking to do away with the new FFMC licenses, and new FFMCs would work under AD-II.

This perfectly suits our network, and we should be able to roll out the FX correspondents according to the new guidelines. Mind you, presently, the scenario of forex business is not so good, but it won't happen for the long time, we'll build up in this time.

Another beautiful thing happening is this: they have allowed a ₹25 lakh limit per transaction for SME for import and export payments also, which was never there earlier for foreign trade transactions. Loan referral, I told you with a very big bank, we're looking to grow this product.

We're investing into this product for now, but the future of this product is looking very good. Insurance business, we expanded massively, and it should expand more massively this year.

We got a mutual fund registration done, ARN. The idea is to launch a savings product, the first cohort is just for our sahayaks to be able to push their savings on a daily basis or a weekly basis into mutual funds.

We would be launching this product around the third quarter, or second quarter or the third quarter. The integration has started.

These are the management comments, which you could read. We've given a guidance of growth of 40% to 45%.

We are very confident to achieve it. If there is any material change, we'll surely update you and be transparent as much as possible.

These are things which you all would know much better than me: the gross profit, EBITDA, PAT. You can push to next slide.

I guess this is all numbers, which I have explained previously also. We could begin with the questions everybody has, please.

Thank you very much.

Am I audible?

Hello? Sir.

You're audible, sir.

There's some problem on my video, I won't be able to turn it on, apologies for that. Regarding my questions, just wanted to understand first up in terms of your volumes.

By when do you expect this

Now it's better?

Okay. Just wanted to understand first up in terms of your volume, the impact that we have seen in DMT volume and the DMT business.

By when do you expect this volume to normalize

Sorry, sir, we are unable to get your question, please.

Please bring it closer, thank you.

I was just trying to understand by when do you expect now volumes to get normalized, yeah, which impacted our FY '26 business, yeah. Listen,

it didn't impact, sir. The volume didn't impact, sir.

It's basically we reinvested the money made, which has given us zero profitability in the last few months basically to build up for the future, sir. As I explained, sir, most of the money we invested hits the P&L.

It does not hit the balance sheet, sir, as Krishna also told you. We will keep investing.

We'll keep growing. As said, we'll balance the profitability and growing for the future, sir.

Only except the DMT business, there was no other

degrowth, sir. Degrowth, sir.

The DMT business has panned out, sir, and we're already over that phase, sir. It does not affect us anymore, sir.

Yes, sir.

Okay. Ideally, you are transferring your business from low-margin to high-margin business, right?

Yes, sir.

Yes, sir. Sir, DMT was basically, sir, another answer I had to explain also, sir, see, a few of the investors had a question regarding the top line not growing.

The DMT business was a very high revenue and a very low margin business, sir. It has typically affected the top line by ₹60 crores, sir, and we grown by ₹13 crores.

We've covered ₹73 crores for a business like our size is massively, massively very, very good. The DMT was a high volume business, but didn't affect the bottom line, but it did affect the top line, but we've still been able to cover up with the high margin products like delinquent loan collection, CMS, and insurance, and Paysprint also, sir.

Okay. Understood.

For this year, this impact is done, this year we'll see also the top line growth? That's the profit growth you've already mentioned, right?

The top

line also

Definitely, sir. Sir, we've always been this thing, sir, you can track the top line, but track us more on the bottom line, sir.

Top line is a bit erratic in our business, basically. If a subsidy comes, the top line will be very good for the quarter.

If the subsidy does not come, the top line would be hit. You can always track top line also, it will grow this year for sure, sir.

Understood. Just one last thing from my side.

In terms of your balance sheet, and what are investments we are doing, any amount that is sitting in your balance sheet as a capitalized amount?

Sir, capitalized is only the tech portion, which we are capitalizing very, very less, sir. That is also tech portion we capitalizing only for the new projects.

Old system the development is happening, like the UPI cash withdrawal system was on old system only development. We are not capitalizing that, sir, and we are expensing it out, sir.

It's majorly all expenses of growth are being expensed out other than tech just for the very, very new projects, sir. That's it, sir.

How much would that be? Any amount you can share?

The capitalized return, Mr.

CFO? It's approximately

Approximately

₹10 to ₹12 crores

for the full ₹10 to ₹12 crores for the full group, sir.

Full group.

Mind you,

there are

new projects like mutual fund development happening, loan sourcing portal happening, Paysprint has launched two more portals, forex portal FX ease is coming. Only that portion is being capitalized, and basically as the system goes, the capitalization is dropping year on year, sir.

Okay. Understood.

In terms of that high-margin business, you mentioned insurance, CMS. What are the other names you mentioned?

Just wanted to know what are the high-margin

Insurance, delinquent loan collection business, Paysprint is a good high-growth high-margin business, CMS is a good margin business. These are the four businesses we are right now concentrating on, sir.

Sure. I think that's very helpful, sir.

I would like to wish you all the very best. That's it from my side.

Thank you.

Thank you.

Yes, thank you. Am I audible?

You're audible, sir.

Yes. Congratulations, team, for good set of numbers.

Wanted to understand that, post the AD-II license, how do we expect the forex business to transition, and how can we expect the green shoots to be visible in this year or it would take longer for the business to transition to using the newer license which we've got?

Harsh, basically, we are also very looking forward to that business, but as it's a gulf war scenario and the business is very down, we really don't want to invest other than building up the technology right now. Once this ends out, we'll invest in the branch network and we expect the offshoot to come this year basically.

A few developments would be required according to the new guidelines which have come, but most of our system is ready. We'd already prepared the system looking at the draft guidelines.

We think we should be able to, depending on what happens in the world, we should be able to see the offshoots this year for sure.

Got it. My second question was, you've mentioned that some of the expenses are routed through P&L.

Any tentative amount that you are recording as part of your budgeting exercise so that we have an understanding that there are some one-off expenses which are gone in the P&L? See, Harsh,

every time we expand, okay, suppose for the UPI cash withdrawal product right now, we would be hiring manpower, okay? The manpower will and we are expanding the insurance business also, okay?

For the short term, the manpower will hit my P&L immediately, but the income would start coming in the seventh, eighth month. That is the difference.

We planned around a ₹30 crore investment this year into the same basically, yeah, around that, depending on how the market goes. Yes.

For delinquent and insurance, it is the setup shelter cost which we incur. There again the hiring happens and the expansion keeps going.

Though

mind you, we wouldn't surely in the near future divulge you the return of capital employed for these verticals, and you'll be massively, massively surprised as to what we're doing right now. We would like to keep it under wraps due to competition.

Yes, please.

Got it. Fine.

I'll come back in the queue for my other questions. Thank you.

Okay.

Am I audible?

sir.

Yeah. I wanted to ask the role of the CEO, Mr.

Daga. He was appointed, right?

What is his exact role?

After Krishna coming into the picture, he's looking after the day-to-day operations, sir, and the business, and I look more into new ventures and distribution majorly, sir, right now. Yes, sir.

Okay.

Day-to-day guy. Okay.

What is the qualification right of Krishna?

Krishna will

I am myself a chartered accountant and company secretary, and having experience in fintech businesses, sir.

We had told in one of our earlier calls, we know how to market, we know how to distribute, we know how to build products, but our weakness has been finance because we've been techies, hence, we thought it's better to solidify first getting Nimesh as the CFO and then getting Krishna as the CEO because we wanted it to be more like a professional finance-driven company and not a marketing-driven, sales-driven company balance sheet. Yes, sir.

Okay. Can you provide the road map for next 2-3 years, how you're looking to pan this company and what trajectory the numbers gonna be next 2-3 years?

Because like Sir, trajectory for next year

the license stuff and from the subsidiary, the numbers should come in, right?

The numbers have already started coming in from the subsidiaries. We already given you a guidance for this year, okay, sir?

I would be able to give you a guidance towards the close of next year for the next year, but we tend to keep growing and maintaining our peace, sir, pace.

Okay. Thank you.

All the subsidiaries now have started making good money, and they are on a stage to make very good money like the parent company is doing. Or to be honest, if we've not be bothered about the growth for the next year, the number last year would have been a far, far better number.

We don't want to stop there. We want to keep growing.

Keep growing is not being capitalized, keep growing is being hitting the P&L balance sheet. We'll always have to balance the profitability and for our stakeholders and the business expansion for the future.

We request everybody to not look at us on a quarter-on-quarter and look at as a whole on a year basis and a 2-year, 3-year CAGR basis, because such a UPI cash withdrawal product, if it kicks in, is going to be a massive, massive product for the future. For the massive, massive future, we have to invest a bit temporarily.

We're not investing anything thinking that the return would come in 3 years or 4 years, as Krishna said. We're investing so that the return starts coming in 8, 9, 12 months and we start recouping the money also.

That is what he's doing. Whatever investment we're doing is not again something which we are spending massively, it's just to build up the capacity and nothing more, sir.

Once the capacity is built up, new product launch becomes a very, very easy affair without much expenses. We're still in a very nascent stage and we're just waiting for both the flywheels to work together and take us where we intend to be, sir.

Thank you. All the best.

Thank you, sir.

Thank you, sir.

Yes, thank you for the opportunity again. Team, just one, two questions more.

As to since we are building on the tech side, are we looking at any ways with the advent of AI to optimize our costs, or we've been reading on social media that the cost benefits which everyone was expecting initially isn't too much. Just want to understand your side that whether you are getting any benefit from AI or it's not significant in terms of saving costs or manpower?

It would help largely, but right now building up cost of the AI is going into it. It will surely help us a lot.

It might reduce the cost or in other ways, with the same cost in the support, we'll be able to double, triple the business there basically. It will surely help to the question you asked, it will help massively, massively.

In the next one or two quarter, we'll also do a demo of what we have built to be able to reduce our manpower capability in the office and the support system. To answer your question, yes, surely.

It will either in the same manpower, we'll be able to do a lot more work or we will be able to reduce manpower to do the same amount of work. Yes, sir.

Got it. Okay.

Just last one question is around the newer products like you mentioned, your focus will be on CMS and mutual fund, etc. There are

See, mutual fund is very much in a nascent stage, okay, sir? The insurance distribution, delinquent loan CMS, and Paysprint are our drivers for the next two quarters.

By that time, the new products will be ready, UPI cash withdrawal would be in swing, and then we'll start concentrating on those products, making money from those products as well, sir.

Got it. With respect to UPI cash withdrawal, how would the business model be?

It would be a percentage of whatever cash withdrawals you would facilitate?

It's a commission which the bank gets on interchange, and a major portion of that flows through us and we pay from that portion to the agent.

Got it. This in a way it would be a extension of your CMS business because you would be handling the cash and that is why

No, it's not the extension of the CMS business. It would be an extension of our AEPS business with a much more market base.

Because

for an AEPS business, a scanner is required. For this, no instrument is required.

They could just start that business without any investment.

Okay. Thank you.

Thank you, everyone, for joining us today. As we stated in our opening remarks, as well as during the presentation, we believe that same trust is entrusted for the coming few years as well, and we'll be definitely able to unlock their shareholders' value by showing much higher profits and growth in the company.

Now, I'll ask Mr. Simran Singh also to contribute on their closing remarks.

Thank you very much for all the support you've given us over the last one year, 1.5 year. This has been our first year, first full year after the IPO.

We've really worked hard over the last year to reach this figure. A few of us would be expecting more from us.

We're really proud that expectation could be more from us. We'll work more hard, try to fulfill your expectations.

One small request, please don't judge us on a month-on base, on a quarter base, because of the business we are in. Sometimes if somebody goes and study the UPI cash withdrawal product, they'll understand that we should invest massively into that and grow the network.

We won't do that. We'll balance the profitability as the growth for the future also.

Be rest assured. Like I always end the call, whatever happens, we'll be transparent to you.

Please trust us. Thank you very, very much.

Thanks a lot.

Thank you.

Thank you.