Thank you. 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 Q3 and 9 months of fiscal year 2026.

On behalf of the company, I extend a very warm welcome to all of you. On this call, we are joined by Mr.

Avinash Godkhindi, Managing Director and CEO; Mr. Aditya Kumar, our CFO; Mr.

Rajesh Tumlagunti, our Deputy CFO; and SGA, our investor relation advisor. The financial results, press release, and investor presentation are uploaded on the stock exchange and on the company website.

I hope everybody had a chance to look at it. This quarter marks our best-ever quarterly and 9 months performance, with a very strong performance across all key metrics.

Talking about the quarterly performance, comparing Q3 FY26 to Q3 FY25, the company reported revenue of INR 498 crore, missing the 500 crore mark by 2 crores, growing at around 48% on a YoY basis. Our quarterly adjusted EBITDA crossed the mark of ₹50 crore for the first time in our history.

We achieved ₹51 crore of adjusted EBITDA, growing at around 63% on a YoY basis. The PAT, profit after tax, surged to INR 36 crore, growing significantly at around 78% on a YoY basis.

Our 9 months FY26 performance, I am delighted to report that we have surpassed last full year's profitability levels driven by margin expansion at both EBITDA and PAT levels. The company reported revenues at around 1,260 crore, growing at around 41% on a YoY basis.

Our adjusted EBITDA stood at around 128 crore, a 48% YoY increase. Our PAT surged to 95 crore, growing significantly at about 71%.

The achievement highlights our relentless bottom-line discipline and flawless execution that are powering robust growth across the board through cost efficiencies, revenue optimization, and operational agility. I also want to take this opportunity to talk about our AI journey so far as a SaaS fintech company.

Over the past year, we have shared our vision for how AI would reshape the spend management ecosystem. Today, that vision is becoming an operational reality.

You would know that as to how IT stocks are being beaten down. Moving from aspiration to integration, we have transitioned from discussing AI's potential to validating its power in real-world scenarios.

We are currently in the process of launching our agentic AI workflows. Unlike the basic automation, these agents are designed to independently execute complex tasks, such as automating vendor reconciliation, flagging tax compliance anomalies, and streamlining end-to-end spend approvals.

The impact on our agility and efficiency is already very, very clear to us. For example, to develop and deploy a new product feature traditionally took us about 75-plus days.

Now the same can be rolled out, and I am talking conservatively here, in less than 30 days. By significantly reducing our production time and time-to-market, we are just not working faster, we are becoming more responsive to our customer needs and accelerating our path to a full-scale rollout.

By cutting our development cycles by more than half, we have turned speed to market from a goal into our greatest competitive moat. One thing which is very clear to us is R&D will always help the company to stay ahead and remain competitive and ahead of competition.

Now I would like to give an update on our acquisitions and investments so far. Our existing acquisitions and investments continue to deliver exceptional performance.

For Greenedge, we saw a very strong Q3 FY26 performance, achieving a revenue of 29 crore with healthy margins. Since our engagement began, Greenedge has been able to leverage the Zaggle's network extremely well in scaling up their revenues for 9 months FY26 to INR 65 crore as compared to entire FY25 revenue of around 36 crore, already showcasing that how our synergies kick in.

Greenedge has also strengthened its partnership with Amex by extending its domestic and international golf programs by another 3 years. Concurrently, Greenedge has strengthened its partnership with NPCI to enhance their existing benefits platform while also developing a new suite of innovative programs.

Before we go to TaxSpanner, I am pleased to announce that as per the draft, and these are draft Income Tax Rules 2026, employee tax benefits have been extended to the new tax regime, which is a huge kicker to us in terms of not only adding more corporates to our kitty, but also to be able to enhance the entire consumer base. In addition, the proposed rules also indicate higher permissible values for meal benefits, gifts, and certain other allowances, creating great opportunities for us.

We see this to be a significantly positive development not only for TaxSpanner, but also for our Save business in the years to come. For TaxSpanner, this year has been focused on building a solid enterprise pipeline and building out products on salary structuring, TDS, GST, and JAGS, which is for gig workers wellness, which has worked very well in tandem with our existing Save, Propel, and Zoyer proposition.

With a strong client base, including Accenture, Novo Nordisk, Bosch, HCL, amongst others, we expect TaxSpanner to deliver significant growth in FY27. Now I will come to Mobileware.

Now Mobileware is rebranded as 86400. Since our engagement began in 2024, we have seen a massive growth journey being unleashed at Mobileware.

Harnessing Zaggle's network and credibility, 86400 has secured 11 new partnerships with banks and fintechs to date. With Zaggle support, 86400 has also onboarded several banks as customers throughout the entire period.

Fueled by these partners and clients, 86400 is seeing a massive surge in its revenue from INR 17 crore in FY24 to have already surpassed INR 50 crore in YTD FY26, and we are hoping that they would cross about 65-odd crores this year. We saw great traction last quarter with the launch of the credit line on UPI products with Suryoday Small Finance Bank, already seeing about 30 lakh-plus transactions with more than INR 50 crore being lent through the product in the first quarter itself, and this will only increase in the future.

Now I would like to give you an update on the ongoing acquisitions. We have made considerable progress on some of these as committed earlier.

I am pleased to announce the completion of our acquisition for Rio.money, now rebranded as Zag.money. This is a pivotal milestone that completes our strategic architecture.

One of the questions our investors have asked us constantly is how are you going to monetize the existing base of customers and consumers. Historically, our growth has been fueled by three distinct pillars: enterprise clients, banking, and network partners, along with the merchant ecosystem.

Today, Zag.money establishes our fourth monetization pillar, a captive, high-intent base of 3.7 million salaried users. Over the past several quarters, we have meticulously stitched together a wider ecosystem of retail financial products to ensure we are ready to cross-sell into this base immediately.

To accelerate our revenue uptake, and as we had mentioned in our last concall, to reach our target of INR 500 crore for this segment within the next 4 to 5 years, we have earmarked a primary capital infusion of about 100-plus crores. Now I would like to give an update on our international expansion plans.

During this quarter, I am happy to inform you that the board has approved the incorporation of a wholly owned subsidiary in GIFT City, Zaggle Payments IFSC Limited. This initiative aligns with our broader vision of expanding our global cross-border payments and financial services capabilities, leveraging the GIFT City ecosystem.

As guided earlier, we are in the final stages of forming an entity in UAE with a view to expand in the MENA region. We have narrowed down on Abu Dhabi as a base to set up operations from where we will build out our global journey.

Our confidence in this market is bolstered by the direct engagement with key business leaders of Abu Dhabi as well as the select stakeholders across the UAE government, including the Minister of State for Artificial Intelligence. Last but not the least, I would like to take a moment to congratulate our CEO and MD, Mr.

Avinash Godkhindi, who has been recognized with India's Most Influential CEO Award and the Impactful Soonicorn CEO Award. His commitment, vision, and relentless focus on execution continues to inspire the entire Zaggle team.

Also our investment in Ayush Mhatre, taking him as a brand ambassador, has proven to be one of the best choices we have made. India brought home the Under-19 World Cup, and under the fantastic and dynamic leadership of Ayush Mhatre, and what was very, very heart touching was when he raised his bat, the Zaggle sticker was right there for everybody to see.

Now I would hand it over to Avinash to carry on the

Thank you, Dr. Raj, for your kind words and appreciation.

It's truly an honor to be part of this journey. A very warm welcome to everyone joining us on the call today.

I'd like to give an overview of a few key metrics. I'm very happy to share that today around 3.7 million active users use the Zaggle-powered cards and software, a strong testament to the scalability and adoption of our platform.

We now serve more than 3,700 customers across a wide spectrum of industries and sectors. During this quarter, our SaaS platform fees contributed to around 12 crores, program fees contributed to around 200 211 crores, and Propel points contributed to around 275 crores.

Now let me talk about a few business highlights. On our fleet program, I'm happy to share that we have signed up with IRM Energy, a leading Indian city gas distribution company with more than 120 gas stations across Gujarat, Punjab, and Tamil Nadu.

With this, we have gained market leadership in the CGD space with our fleet program solutions as we set our targets on the larger oil marketing companies, where we have been engaging for the past few months, and we hope to see positive traction very soon. I'm also happy to announce that we are seeing extremely positive traction on our Smart Employee Purchase Program, Smart EPP, and we have signed contracts with multiple customers already this quarter, including [Dubashan Consulting?]

, Exalogic, and Forever New, amongst others. During this period, we also signed several other marquee clients like Senco Gold, Biba Fashion, Capital Small Finance Bank, C-Care, Mahindra Holidays, Rashtriya Chemicals and Fertilizers, amongst others.

To provide a brief overview of one of our clients, a leading retail chain with more than 150 stores pan-India was facing significant delays on vendor onboarding as well as a complex manual process of raising procurement requests and invoices centrally and at a store level. The client also faced significant difficulty in managing audit trails and approval workflows.

We addressed these issues by deploying our Zoyer platform to streamline and digitize the entire procurement workflow while strengthening policy enforcement across the organization. Building on our platform-based strategy, we have seen excellent cross-sell momentum across the organization.

In Q3 FY26, with enhanced cross-sell efforts and vigor, we were able to cross-sell to multiple customers, including House of Hiranandani, CK Birla Healthcare, and HT Media, amongst others. I'd like to take an opportunity to elaborate further on these.

House of Hiranandani was an existing customer for our Save solution. We recognized the potential for further collaboration and successfully introduced our Zoyer offering.

Within Zoyer, we offered the BROM module to streamline their spends across their retail outlets. CK Birla is again an existing customer for our Save and Zoyer solution.

We identified an opportunity to strengthen our partnership here by implementing our Zatik solution, which is an analytics platform to drive greater efficiency for their spends. I'm also happy to share that we have deepened our partnership further with Visa and Mastercard.

We've signed a 7-year agreement with Visa for co-branded domestic prepaid cards, which offer spend-linked incentives. Similarly, we have also signed a 5-year contract with Mastercard for credit cards offering spend-linked incentives along with referral bonuses.

In addition, we partnered with Euronet Services India for co-branded prepaid card solutions for our corporates. With continued momentum across our core offerings, expanding partnerships, and the strategic integration of our acquisitions, we believe we are well-positioned to sustain our profitable growth.

With that, I'll now hand over the call to our CFO, Aditya, who'll talk you through some financial updates in more detail. Thank you.

Thank you, Avinash, and a very warm welcome to everyone on this call. On quarterly performance, in Q3 FY26, we delivered a record revenue of 498 crore, reflecting a strong 47.9% YoY growth and 15.5% quarter-on-quarter growth.

This was largely driven by an increase in program fee followed by a strong contribution from the Propel platform revenues. The increase in incentives and cashback expenses is aligned with business expansion and higher transaction volumes.

ESOP costs are being rationalized as majority of the expense has already been accrued. We expect that ESOP charge for the next year to be in the range of 3 to 4 crores.

Adjusted EBITDA grew by 62.9% to INR 51 crore compared to INR 31 crore in the corresponding quarter last year. PAT increased by an impressive 77.7% YoY to INR 36 crore, our highest ever, with margins improving to 7.2%.

Cash PAT, which includes net profit along with depreciation, amortization, and ESOP expenses, stood at 46 crore, marking a 76.1% YoY growth. Regarding the recent labor code changes as notified under the law, we expect only minimal impact on our operations.

Talking about our 9 months performance, for the 9-month period, revenues from operations grew 41.4% to INR 1,260 crore. Our adjusted EBITDA has increased by 47.5% YoY to 128 crore.

Notably, our cash PAT has already surpassed full year FY25 cash PAT with a strong 68.3% YoY growth, reaching to INR 121 crore. On working capital, we are well on track, and as guided, we will see break-even for FY26 and OCF turning positive in FY27.

With that, I would like to conclude my update, and we are happy to open the floor for questions. Thank you.

Thank you. Congratulations, sir, on a good set of numbers.

Just wanted to check in the consolidated segmental revenue, we have our platform fees as around 79 crores. That is a substantial jump from 12 crores, I just wanted to understand why that jump is and bifurcation between organic and inorganic in that.

There is small change in regrouping. The new updated financials have reuploaded in stock exchanges.

Oh, okay. Not a problem.

Second thing was I wanted to understand the business as well as economics of the procure and lease mobile phone, that Smart EPP that you are talking about. Just how does it work and how are we making money, the overall economics on that hunt?

Thank you for that. I think there's substantial margins there simply because there's a lot of benefits that you get in terms of savings both on the income tax as well as the GST.

Our commissions are also fairly thick, if I may say that, on that program. It's a highly profitable program for us.

The working capital is used by us in this, or we are procuring them on our books? Will these be as assets and then we'll be leasing it out to the employees of the company that we have signed the contract with?

Am I right in that?

No, no. There's no working capital deployed from our end.

The leasing partners are partners like Tata Capital. We just signed up and we announced in the investor deck as well Jio Finance.

This leasing would be done by leasing companies, and we have zero working capital that gets deployed in this solution whatsoever.

Got it. Last question from my side.

Just wanted to and I know you don't disclose the cash flow from operations at the end of third quarter, but given last quarter was festive and we were giving points to our customers, just wanted to understand how much of that has already converted into cash in the current quarter, if you could give some number on that.

We're back on track, and we are on track with our guidance that Aditya also shared that we'll break even for sure by the end of this year, and next year, we hope to be significantly OCF positive.

Okay. Got it, sir.

Thank you so much.

Am I audible, sir?

Yes. Yes, Deepak.

Thank you very much, sir, for this opportunity. Sir, just wanted to understand the employee cost in this quarter.

Quarter-on-quarter, it was higher by about 3.2 crores. Is there any one-off there?

What led to the increase?

There are some one-off payments which were given to certain employees in terms of the degrouping of the structure, but this is not linked to the new labour code impact, etcetera.

What is the amount?

Amount is around 2.1 crores.

So 2.1 crores. Going into next quarter 2.1 will not be there, yeah?

2.1

will not be there, yeah.

Yeah, 2.1 will not be there. Okay.

Understood. In terms of free cash flow generation, you mentioned fourth quarter will cash break-even and from FY27 will have cash positive, right?

Absolutely. That's what we have communicated, yeah.

Understood. In terms of, margins, we have iterated in the past as well, a 1% kind of quarter YoY increase for next 3 to 4 years to have eventual target of 14% to 15%.

This year, I mean if we exclude ESOP cost, our margins is we're not looking at 100 basis point improvement, right? Where where do we see it?

See, the 100 basis points was never going to be a linear step-up function, and that we've sort of clarified as well. There'll be some years where the growth is much higher, like right now we are seeing on a much higher base, it may be lower, but overall, our guidance has been that we'd be in that adjusted EBITDA of about 14% to 15% in about 5 to 7 years is what we have guided along with a billion dollar of revenue.

That's been our guidance, let's see where we land at the end of the year. The margin expansion is quite significant as we are seeing, and the momentum is strong there.

Okay. You're saying 5 to 7 years, $1 billion revenue with 14% to 15% margin, right?

Correct.

Okay. In terms of revenue CAGR, this 40%, 50% that we are expecting for this year, right, FY26?

That's the CAGR we should look at over next 3, 4 years?

See, the guidance that we had given of 40% to 45% growth for this year is all organic, all domestic. This doesn't include the growth that we're seeing in our acquisitions like Greenedge, Mobileware.

I wouldn't hazard a guess whether the next year growth would be the same, higher, lower. Right now, our guidance stands for this year.

As I mentioned, it's only domestic and it's only organic. There's a lot of hopefully upside that comes in from both the international opportunities as well as the acquisitions in the coming years.

Correct. I got it.

I think that's very helpful, sir. I'm wish you all the very best.

That's it from my side. Thank you.

Hi Avinash and team. Congratulations on a great set of results.

My first question was on this customer wins side. You guys do highlight a significant number of customer wins happening during the quarter in multiple press releases.

Is there a way for us to read this? Is there a way for us to think of it in numbers?

If you can provide any color on that piece will be really helpful.

I think customer wins, the ones that we speak of are typically the ones where we see significant growth potential in those accounts in the coming years, right? These are larger contracts, more important contracts for us strategically as well, where there could be more cross-sell and upsell.

Beyond that, Sachin, it's very hard for us to give a rupee or a dollar number on our contracts, because the nature of the business being SaaS, it's very dynamic as to how much is the usage of the platform. Similarly on the transaction side, we cannot necessarily predict how the spends of the company would be for the coming month or quarter or year.

That's where a lot of the upside also comes, because many times the buoyancy is there in the business and customers' business, and that reflects in our numbers. There's an upside to that as well.

Understood. Just a request, if it's possible maybe if we can do some sort of cohortization data on customers and start sharing that in accord PPTs for people to see how the existing customers and new customers are ramping up on the platform, might be helpful.

My second question is on the Rio.money side and the acquisition side. Any update there on where we stand in terms of ramping up those businesses?

On Rio, the transaction is closed. The company has now been rebranded as Zag.money from Rio.money.

The cards are now in the market. Co-branded cards with Yes Bank are now branded with Zag.

The whole idea is to be able to leverage a large employee base of about 3.7 million active users on the Zaggle platform, which keeps growing, and our access to a much larger employee base through our corporate customers. As we've clarified multiple times in the past, it's very rare that if a company has 100 employees, all 100 employees are on the Zaggle platform and using it, because all of them may not be filing their reimbursements, etcetera.

We have access to that entire base of employees through our strong relationships with these corporates. We'll leverage that to be able to reach out to a much larger audience in a much more cost-effective manner, right?

The draft IT guidelines and regulations again provide a great fillip to that, because now, with the new tax regime also including the meal allowance, the gift allowance, and fuel allowance, and all the other allowances, obviously a lot more employees from our marquee customers would sign up to be part of the Zaggle platform. That we believe we can translate into a retail card customer as well, in addition to the T-PAP capability that we bring.

That's the thesis, and this has been a very fortuitous break with the NTR, new tax regime, also including these wallets now.

Then monetization-wise, this will again be an MDR-led monetization, or we also have some extra fees arrangement with our partners?

We have both fees as well as spend-linked interchange-linked income here.

Got it. Thank you, and all the best.

Thank you.

Hi. Thank you for taking my question.

Just going back to the first question that was asked around consolidated software fee being around 79 crores, what did you clarify on that?

No. Like I said, it's an numerical error.

The revised financials are being uploaded to stock exchanges.

Got it. Secondly, if I look at our incentives cost as a proportion of program fee, that number has broadly been around 66%, 67%.

What are we looking at that number changing in the long run? Do you believe it will stabilize at this number, or over time as the growth sort of moderates from the program fee, we can expect some kind of leverage on that number?

Absolutely. There is a lot of opportunity there for that number to come down in the coming years.

We estimate the steady state in about 5 years would be in the range of about 50% there or thereabouts as a percentage of program fees.

Okay. If that is going to happen, if that is going to come down from 67% to 50%, shouldn't our margin outlook be much higher?

Because that is the biggest part of, say, if I look at net revenues, that's 58%, 59% of our overall cost now.

See, look, we always try to give you a conservative view on our projections. You're absolutely right that there is potential much higher upside, but there is also the possibility that some of our other costs would also over time increase, right?

We don't want to give you a view which is very overly optimistic, but yeah.

Got it. No, that was all.

Thank you.

Hi. Good afternoon.

I wanted to check on a little bit of a longer term view. We have fantastic growth in the last few years, but in spite of this growth, we are probably looking at a negative or a very low cash from operating activities, and we still have a fairly low number as far as the ROE of the company is concerned.

If you want to have a situation where we can get a compounder which is, say, 30%, 35% kind of a compounder over the long run, which certainly looks to be the case here, you would need to raise this ROE closer to 25%, 30% and also have a very high ratio of your operating cash. I know it's a very rapid growth phase, but do you see a situation where we are able to see these numbers over the next few years?

What's the glide path that you look at?

Point very well taken, sir. I think you're absolutely right.

These are metrics that we internally focus on, whether it's operating cash flow or the ROE. Some of that obviously will improve with the deployment of capital that we raised.

Some of the investments have been extremely successful, like Greenedge, where we're seeing a fabulous performance by the company and spectacular returns. We hope to deploy that capital sooner than later to be able to generate outsized returns in the coming years.

We are acutely aware of the need to deploy that capital in a very effective manner, and we are at it.

Okay. You want to put some frame to it, like 4 years, 5 years, or more than 5 years, something in that range or?

I think all these matrices go hand-in-hand. Whether it's top-line growth, whether it's margin expansion, whether it's improvement in ROE, ROCE, and cash flow, all of these over the course of that 5 5-year horizon would improve substantially, because the business right now is in a hyper-growth, high-growth phase.

As the business captures more market share, and we become much more, established not just domestically, but across markets, a lot of this operating leverage and, those sort of things start to kick in in a big way.

Yeah. The second question was about the use of AI.

You've mentioned this in your presentation as well. Any specific one major use case that you could share which could demonstrate a significant benefit to the company already which is getting accrued?

A lot of work is happening in reconciliation to automate reconciliations. Reconciliations are most painful in this spend management universe, and in general, typically if you talk to any CFO, she's likely to say recon is a major concern or headache.

Especially when you are a large enterprise, which is the case with a lot of our customers, there are multiple systems and platforms that they have, and those generate outsized amount of data. To make sure that they are all in sync and reconned is a fairly elaborate process.

The amount of manpower that gets deployed in doing it is also outsized. There are a lot of reconciliations that you have with your payment systems, with the ERP data, some other data that you might be getting from your CRM, etcetera.

All of those recons in the coming years will be able to get it done through the agentic AI platform and the AI capabilities.

Wonderful. Congratulations again for great set of results.

Keep up the great work.

Thank you so much, sir.

Good evening, sir. Thanks, and congrats on good set of numbers.

Aditya, just to reconfirm the disclosure that you're changing, that console numbers for Propel revenues is also getting updated?

Yes.

Okay.

That Propel numbers are getting updated, and as from this quarter onwards, it'd be consolidation from Greenedge numbers too that got in touch.

Sure. I just wanted to understand what is the take rate in the Greenedge's gift card business?

What proportion of its revenue is coming from gift cards?

Basically in Greenedge, the business is golf privileges and NPCI privileges, right? That's a lot of redemptions that the Plat and Select credit cards and debit cards base of RuPay, which is growing rapidly.

These are points given to cardholders linked to their spends, and they redeem it for vouchers and other privileges like golf, etcetera. Within this, there's not too much of the gift card part of it, Rohan, but of course there is some, where some consumers still try to redeem it for a gift card.

Sure. I was just trying to understand if we consider these golf privileges and other as a cost, what will be the net take rate in that business?

Just trying to understand on a consol basis, how should we look at the net revenue in the Propel business adjusted for the cost of acquisition or servicing of these incentives or the benefits to the customers?

Yeah. As you're aware, as per Ind AS, we have to do the similar accounting whatever we have to do it in Zaggle gross revenue basis.

What we have done is we started to give to investors and readers on net numbers basis in our investor presentation as well. We will do the similar thing to Greenedge numbers too.

In the presentation is on standalone, I believe?

Yes, yes, yes. To answer the question, Rohan, the margins there are higher because golf is a very super premium category, higher than the Propel points margin that we make on vouchers.

There the margins are much much higher.

Got it. Like last year in 4Q, do we expect volume incentives also to come in?

Because this year, the take rates in gift card has been around 4.8% in 9 months, whereas 4.1% last year. Just wanted to check there.

Yes. Some of the ORCs have started to kick in this quarter, this quarter as in Q3, overriding commissions that we get for hitting thresholds with merchant brands, and some of them will come in in the next quarter.

Got it. Just wanted to understand your thought process on branding and what kind of annual budgets to run, because as I understand, probably we are also advertising in World Cup also.

This may have an impact on 4Q opex. Just want to get a thought.

Next year, how should one think on this cost?

I think the branding as an investment is something which we see us doing in a very calibrated manner, Rohan. Any of these opportunities that we tap into are done with extreme care to make sure that the return on investment is outsized.

We are very particular that this, a, the overall size of investment is very reasonable, and, b, the returns are outsized.

Sure. Lastly, the increase in depreciation, there's no one-off.

This will be the steady-state incrementally?

Correct.

Sure. Thanks.

Hey, hi, team. Congrats on great set.

The first one is on acquisitions. Anything nearing term sheet?

What's the update on the other ones, Dice and other ones?

As we mentioned, Dice we are on the cusp of closure, we should be closing that transaction very soon. Other term sheets, etcetera, we'll let you know as things play out.

You'll hear from us, yeah.

Anything in this year or it's going to be next financial?

I wouldn't want to make any commitments on the call here, but as soon as we sign, of course.

Sure. The second one is on any qualitative commentary you want to give on current take rates, where are they moving, and what kind of a growth do we see in the GTV spends on our platform?

Any color you want to give there that how we are seeing the payments on UPI from our platform?

I think the good part about UPI payments is that overall there's an realization in the ecosystem that UPI cannot be subsidized by the government forever, right? Already there's interchange on credit cards, which is the full interchange for transactions above 2,000, and prepaid there's an interchange for 1.1% for transactions above 2,000.

Our belief is that in the coming years, as UPI becomes more and more ubiquitous, we are only going to see that take rates go up across board because this has to be ultimately self-sustaining and not based on subsidies from the government. That's something which we're seeing the trend as well in the ecosystem.

What would be the current take rate? Are they at par to earlier 1.85% is what I understand?

That's where we are.

Okay. The next one would be on cash flows again.

When we say we'll be operating cash positive next year, what would be our EBITDA to OCF conversion next year? Will it be north of 50 or would it be lower?

Too early for us to say, sir, right now. Our endeavor would be to be in that space.

Too early for us to commit and comment anything.

Sure. The last one would be on again the TAM.

Do you see newer areas opening up besides for your Zoyer or something more on Zoyer, new markets, new sectors opening up for that? Or you think the current itself is big enough for you to keep penetrating?

I think for Zoyer, there's always a massive market because the number of vendors keep growing, right? The payouts that happen from corporates to vendors keeps growing.

That's obviously there. We've already spoken of our aspirations and work that we are doing to enter into the GCC and our establishment of our setup in UAE with Abu Dhabi as the base.

Those would be newer markets opening for us. GCC is the start.

We'll obviously, once we're able to do a good job there, expand into other markets as well, right? TAM has never been a problem for the space, neither for us nor in other global markets.

It's just about capturing the market and doing it in a profitable manner in a rapid pace.

Yeah. Sir, if I can squeeze in one more.

Anything on competitive intensity you want to call out? Or this is a new market being created by Zaggle?

No, I think, see, competition has always been there. We are solving a set of problems which are deep and hard, and we are doing it in a tech-first, AI-first manner.

I think scale is critical, because that scale gives you efficiencies, scale gives you institutional knowledge and learning of the kind of problems that customers face. You're able to solve that using AI even before those problems occur to the customer.

You've already preempted those leakages from happening, right? That's something where customer delight comes from.

Those are things which we stand out, and when we see a particular problem that comes up with a customer, because of the scale of the business and the number of customers that we have, when we solve it for one, we are able to take it back to the remaining 3,700 customers and say, "Hey," without naming that customer, we said, "One of our customers had this problem. This is how we solved it.

Do you think you also potentially see this as something useful?" Many, many adopt it, because they don't want to have the same leakages and problems as others too.

Sure. That was helpful.

Thank you.

Good evening, and congratulations on a good set of numbers. Definitely met the expectations on various fronts.

I just wanted to ask as Mr. Raj in his opening comments mentioned the way IT industry has gotten beaten down, specially in the last few days given the Anthropic AI model and Jefferies terming it as a SaaS-ocalypse.

They are saying that even the software, the SaaS model can entirely be done by AI and different plugins. Just your view on the overall scenario on how while we are using AI, and you mentioned about how it can be used in reconciliation activities in these all companies, but how are we sort of facing ourselves against these things?

That would be the first question.

Thank you so much for the question. My opening comment was basically in relation to the services.

India has always been a services mindset and not a product mindset. If you look at these versus agentic.

Let's say, that's a intellectual discussion we are doing right now. What does SaaS do?

SaaS builds workflows, makes rules, workflows, and then a decision tree. This is what SaaS does in any of the applications.

Now all of those possibly can be done by the agentic AI, okay, where you train the agent to do these activities basis certain parameters. Now then what will happen?

The application will remain as it is, except all the coding which has been done has moved to an agent. If you are able to build a agent, you have been able to solve the problem.

They will be able to do the workflows, they will be able to do the hierarchy, they will be able to do the decision tree making, and also build the solid logic. Logic is what today differentiates an application from a SaaS application, because SaaS application has a lot of logic in it, okay?

Now today, from tomorrow, you are transforming that logic into a agent, okay? Agent is doing the workflow, hierarchy, decision tree, etcetera, and plus the logic part of it.

That's the change which we have seen. For Zaggle, the product would remain as it is, okay, and in the product, the work will be done by the agent.

For us, because we are a SaaS and fintech company, this is hugely beneficial. I'll give you a very small and a quick example that today, any feature which we have to do, which is let's say, for example, doing 18 workflows, okay, one single feature.

That typically would take about 75 to 80 days to develop, then deploy, and test, and then deploy. Today, we are able to do it in less than 30 days, and to be very candid with you, as we improve, we should be able to do it in less than 10 days.

That's a efficiency, which is from 80 days if it comes down to 10 days, you imagine the a, you are able to reach to the customer faster; b, you're able to also see that the cost of production of that particular feature is much lower. There are benefits both ways.

If you see, we have considerably downsized our IT team, okay, keeping in mind that more and more AI we are using, the better results we are seeing. Today with Claude Code which has just been released, or Anthropic's Opus, it's on the platter for you now.

It will only improve, it will not go back. This is what we have been saying for the last one year or so that R&D, we'll have to spend a little bit money, but this would help us in becoming better in the future.

What I see in next 6 to 9 months, this will only accelerate.

Okay. Basically for us, this will be more of a tailwind given our nature of a fintech business also.

We can reduce our head count and yeah.

200%.

Not a threat in any way for our organization, for Zaggle.

No, no. In fact, if I have to very candidly tell you that entry-level jobs, we used to do, let's say, a form we had to build, we will tell a programmer, "Okay, build this."

Developer, "Build this form." To build one form, he'll take about 4 days.

Today, we do it under 10 minutes.

Right. Right.

Very helpful, sir. Just one more question.

I understand people have asked the cash flow question and working capital question. Given the rapid growth we are seeing and we have relatively raised cash by diluting little bit of equity in the past, are we planning to dilute anymore in the time to come?

Not really. Not looking at diluting any equity right now.

We have enough cash in the bank, and the deals which we are looking, we just want to do a good deal as we have done in the case of Mobileware or Greenedge or TaxSpanner, just want accretive deals for us, looking at their growth rates. We are amazed that they had the propensity to grow at that pace, and they were not growing.

With Zaggle's help and support, they are doing. Right now not looking at diluting any equity.

We have raised enough money, in fact, more than what we wanted to raise at that point of time, and self-sufficient right now.

Right. Because I saw that we have some 400-odd, 445 crores-odd cash in our hands from the previous raise, and so, yes, that's sort of, I think, a big concern at the Street that we are not getting enough positive operating cash flow and diluting or raising equity to get our cash flow needs met, which probably is acting negative against our

No, understand. See, we raised money which was in December a year back, roughly 14 months.

Post that, we are only looking at great opportunities. That money was also raised purely for acquisition purposes.

That's what we have been constantly looking. It's a process.

See, now we have operating leverage will kick in. We'll again reach one stage where we may use some of this 445 crores there, and then again, we will reach one more level.

Imagine, we were 371 crores in 2023. Today, we roughly will close at about 1,700, 1,800 crores.

That's 5 5x jump, which has happened in less than 3 years.

No, commendable, sir. On growth, it is commendable.

Just that, we don't have to press the brake, but press the clutch on the growth and just press the pedal on the cash flow so that the whole economics looks better. Just that.

Thank you very much.

Point is that, the idea and thought is that. We'll work.

Each is a process. It's not like one shot will solve everything.

We just need to play it a little bit neatly and deeply. We are very, very much aware of the concerns on positive cash flow.

Every day, trust me, we are working on it to make it happen.

Thank you so much, sir. Wish you guys all the very best.

Thank you.

Hi. Good evening.

Firstly, I'd like to congratulate the management for posting a good set of numbers. I did a comparison, and the top line is up 15% QoQ, but the PAT is only up in the ballpark of 9% to 10%.

We've also seen a sharp uptick in cashback and incentive spends. Can you explain this, what drove this, and whether it's a one-off or a continued trend?

If it's a one-off trend, when do we expect it to normalize?

We look at our business from a YoY basis because there is seasonality. The QoQ numbers don't necessarily educate that much, to be very honest.

Having said that, there is seasonality. Q3 being a critical quarter for us does include some significant incentivization as well.

I would urge you to look at the incentives in line with what the historic numbers have been.

Going forward, is it a continued trend, even on a YoY basis?

Gradually, of course, as I answered in the previous question, we see in the medium term this coming and stabilizing at about 50% as a percentage of the program fees, right? That's where we are headed towards.

Right now, this is a space where we are growing rapidly. That's why we are seeing this to be at these levels of about 67%.

All right. Also, could you share an update on collections and cash inflows from already realized business deals, particularly contracts where work is completed and what is the cash conversion, or are we expecting it in the next quarter or not?

See, we are not a services company, so that work done approach, work is never done for us because we're constantly enhancing our products. There are, of course, customers who are going live every day.

That's a cycle that completely depends on the nature of the complexity of the product and what product they choose from our platform.

Fair enough. Thank you so much.

I wish you guys the very best for your future endeavors. Thank you so much.

Thank you.

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 and the profitability of the company, and we are excited about the opportunities ahead. For any further information, we request you to get in touch with SGA, our investor relations advisor.

Thank you, and have a nice evening.