Good afternoon, everyone. This is Akash. A very warm welcome to all of you for this Nucleus Software earnings conference call for the quarter and year ended on June 30, 2026. For discussions, we have here from the management team, Mr. Vishnu R. Dusad, our Managing Director, Mr. Parag Bhise, CEO and Executive Director, Mr. Ashwani Arora, Chief Financial Officer, Mr. Apurva Chamaria, Chief Business Officer, Mr. Anurag Mantri, Chief Operating Officer, Mr. Mukesh Bangia, Vice President, Mr. Abhishek Pallav, Vice President, Mrs. Swati Patwardhan, Chief Human Resources Officer, Mr. Bhavit, Chief Customer Success Officer, and Mr. Tapan Jayaswal, Financial Controller. As you all are aware, Nucleus Software does not provide any specific revenue earnings guidance. Anything which is said during this call which may reflect company's outlook for the future or which may be considered as forward-looking statement must be reviewed in conjunction with the risk that the company faces. An audio and transcript of this call would be shortly available on the investor section of the company's website, www.nucleussoftware.com. We are now ready to begin the opening comments on the performance of the company. Post that, we would be available for the question and answer session. I now pass it over to Mr. Vishnu. Thank you. Over to you, sir. Good afternoon. A very warm welcome to all of you. Thank you very much for your continued interest in Nucleus Software. I would request Parag to give you a perspective. Good afternoon, everyone. Thank you so much for joining this call. I will talk about our financial performance. I also wanted to share a couple of important updates. We've been talking about our AI strategy. There have been some questions also. I wanted to inform that the groundwork undertaken over the past few quarters is beginning to translate into tangible progress now. Our enterprise AI foundation is now in place. Alongside this, we are also undertaking an organization-wide learning and upskilling initiative to equip our associates with the capabilities that are required in adopting this AI framework. Secondly, recently we launched our FinnOne Neo GA, which is the full-blown release 9.0, which among other things, also brings embedded AI capabilities across the lending lifecycle. That's the other thing I wanted to talk about. Wish to welcome Mr. Bhavit Godiwala as Chief Customer Success Officer. He brings nearly three decades of experience across banking technology in digital transformation, core banking, transaction banking domains, and he'll be looking after leading the initiative of customer success organization. Finally, we recently completed five years of our journey with one important partner in Sri Lanka, which is Hatton National Bank. They are our FinnAxia customers. We completed a five-year journey with them and we just did a small celebration with them in Sri Lanka. These are the few updates we wanted to give and over for the financial updates. First is Tapan to present us the actual numbers. Over to you, Mr. Tapan. Hello. Good afternoon. Am I audible? Yes. Yes, sir, you're audible. Our consolidated revenue for the quarter is at INR 210.4 crore. The growth was 6.4% quarter-on-quarter and 3.4% year-on-year. Product revenue during the quarter is INR 176.6 crore at 83.9% as against 84.1% during previous quarter. India region constitutes 56% of revenue, followed by 12% from Middle East, 11% from South Asia, 5% from Europe, and rest others. During previous quarter, India constituted 58% of revenue, followed by 13% from Middle East, 11% from South Asia, 4% from Europe, and rest others. Revenue from top five clients contributed 28.1% of revenue in the quarter as against 29.3% during previous quarter. Cost of delivery, including cost of product development for the quarter, is INR 160.4, an increase of 1.9% quarter-on-quarter and 5.1% year-on-year. It constitutes 76.2% of revenue against 70% quarter-on-quarter and 70.1% year-on-year. Marketing and sales expenses for the quarter is 10% of revenue against 7.1% quarter-on-quarter and 6% YOY. General and administrative expenses for the quarter is 10.1% of revenue against 7.5% quarter-on-quarter and 8.3% year-on-year. EBITDA for the quarter is at INR 7.6 crore as against INR 34.6 crore quarter-on-quarter and INR 33.7 crore year-on-year. Margins during the quarter is 3.6% as compared to 15.4% quarter-on-quarter and 15.5% year-on-year. Other income during the quarter is INR 17.8 crore, growth of 19.5% quarter-on-quarter and decline of 0.7% year-on-year. Income from investment and deposit is INR 18.9 crore and Forex loss is INR 1.1 crore. This growth is driven by mark-to-market gains on debt mutual funds resulting from falling interest rate in Q1. Forward covers as on 30th June 2026 are USD 2 million at an average rate of INR 94.692 USD. Profit after tax during the quarter is INR 23.9 crore, decline of 30.9% quarter-on-quarter and 32.2% year-on-year. The order book position as on 30th June 2026 is INR 1,244 crores, out of which 88%, that is INR 1,096 crores is from products. On 31st March 2026, the order book position was INR 1,044 crores, out of which 86%, that is INR 899 crores is from products. Total cash and cash equivalents as on 30th June are at INR 977.9 crores as against INR 972.4 crores on 31st March 2026. Receivable is at INR 174.7 crore as on 30th June 2026 as against INR 121.1 crore as on 31st March 2026. DSO increased to 63 days as compared to 42 days during previous quarter. Total headcount as on 30th June 2026 is 2059 as compared to 2028 as on 31st March 2026. Attrition during the quarter is 3% as compared to 2% during previous quarter. During the quarter, pursuant to a revision in remuneration structure, the company recognized a reduction in its gratuity liability of INR 6.99 crores and compensated absence liability of INR 2.83 crores. The resultant impact has been disclosed as an exceptional item in the financial statement. To reward exceptional talent, the company during the quarter has granted restricted stock units to eligible employees under the Nucleus Software RSU Scheme 2026. Now I hand it over to Swati. Thank you. Thank you, sir. With this, we are now open for Q&A session. I will pass over to you, Mr. Akash. Over to you. Thank you, ma'am. With this, we are now open for the Q&A session. If you wish to ask a question, please press star and one on your telephone keypad and wait for your name to be announced. If you wish to cancel your request, please press star and one again. Ladies and gentlemen, if you wish to ask a question, please press star and one on your telephone keypad. The first question is from the line of Mr. Rishabh Shah from Edelweiss. Please go ahead. Yeah. Hi, can you all hear me? Yes. Yes. You are audible. Yeah. Sir, in the last call, we mentioned that we have lost one of the top NBFCs as a client, and obviously, they would have been in our top five customers. Because they had invested in a company who were competitors of Nucleus, they shifted to that invested company. Is it possible to let us know that isn't that there's a risk for your major top five customers? Sir, could you be a bit louder. Your last part is not clear. We got the first part, what is the second question? My question is it possible to let us know that isn't this a risk for every of our top customers, if they can invest in a company who would be competitor to Nucleus and give that business to the competitor? I would say theoretically speaking, it's a risk. How many clients would want to do that is the question. Theoretically, yes, that has happened once. Practicality of it is because company would also want to do business with other customers. No, sir, because the client which has left is one of the major NBFC in the country. Sir, your voice is not very clear. Either you speak a bit louder, so it will be helpful Yeah. Can you hear me now? Excuse me, no loud. Yeah. Well, you are, continue, go ahead. Okay. I'm saying that Shriram was one of the major NBFCs in the country. Just wanted to know what are you thinking on those parts? We are thinking only about whatever we can do best. Our investments in our products and R&D and AI, we can do what we can do better. We are confident of our positioning in the market with interactions. This is a one-off case, that's all. My second question is, in the last two, three years, we are focused on to strengthen the sales and marketing team. We are not seeing that conversion into business. One factor could be the loss of customers, what could be the other reasons? What are the gaps we are not able to fulfill? Yeah. I'll let Apurva answer that part. With respect to the question you are asking in terms of not reflecting in the business. Just to share, last quarter, we have grown our biggest order book of INR 600 plus crores in a quarter. That is a reflection of the work sales targeting team is putting together along with, really supported by our delivery function and other support functions. Continuing on that trend this quarter also, we have locked the order book in excess of INR 300 crores. I think that is a reflection of the great work this team is doing in terms of tendering and building on the foundation that has been laid during all these years. It has been well. Okay. Just a question about customization. If a small NBFC, obviously, a customer of Nucleus comes to Nucleus for some customization. Will you be open to it, or you'll have some criteria for customization of the software for different level of customers? I think when we talk about customization, we generally encourage configuration and design. Fundamentally, we look forward into opportunities, how we can make those business elements implemented through configuration. Having said that, when it comes to the regulatory part, certainly we have provisioned a way of delivery to our customer. Customizations are minimal and to an extent of some integration changes which comes sometimes to our table and that has been managed through the power of extended desk. Okay. Hope this answers. Okay. Yeah. My last question is, so as you say you are trying to engage more customers in the Japanese market, but you are already present there since last 20, 25 years. In the previous conference call you were mentioning that you were trying to tap the more. Sorry to interrupt, Rishabh. Sir, I would request you to join back the queue for more questions, sir. Yeah. Thank you. Thank you, sir. The next question comes from the line of Mr. Vinayak Narkarani from Hatway Investments. Please go ahead, sir. Yeah. Good afternoon. Just wanted to check out, if you can just give us some broad view on what are the other expenses that have increased so much in this quarter as compared to previous quarters, if breakup can be given. Well, precise breakup, I will not be able to share, but it is largely on account of personal cost. Since it is the first quarter, salary revision has been factored into this, that will also reflect in subsequent quarters. In addition to that, we have also given RSUs that has also impacted, in a certain way, our OpEx. Yeah, employee expenses have grown by 3.8% quarter-on-quarter, whereas your other expenses have grown by 18% quarter-on-quarter. I just want to know the other expenses. Have you incurred more on sales and administration, or what is it that has caused this bigger jump when your revenue has actually decreased? It is a little bit on marketing expenses, which has increased. Since we are investing heavily in global markets, in terms of that, some expenses has increased on that side. Little impact in terms of admin is because of increase in some diesel and power expenses because of this war situation, the diesel price has fluctuated a lot. That has also impacted a bit. That's it from me. Thank you. Yeah. Thank you, sir. Participants, I kindly request you to restrict one question in the initial round and get back to queue for more questions. The next question is from the line of Mr. Hardik Bora from Vivaya Capital. Please go ahead, sir. Hi, good afternoon. Can you hear me? Yes. Yeah. Okay. Thank you. First question is just some color on the order book. It seems that in this June quarter and in the March quarter put together, we would have won close to 900 to 1,000 crores of orders. What I wanted to understand is that, is the execution cycle of these orders meaningfully longer than, let's say, what our historical experience has been, or would it be in line with our past track record? More or less it will be in line of our existing track record. While yes, efforts are being made to speed it up, bring in more efficiencies, but largely it will remain as our existing one. Okay. Actually, just a follow-up on this. We attended the AGM on Monday, and I think there was a comment about some AMC related aspect also being part of the order book, and hence the execution cycle could be longer. I'm trying to clarify my understanding here. Despite the sharp jump that we've seen in the order book, thanks to the marketing effort that you put in, the execution cycle doesn't necessarily become longer due to some AMC aspect in it, right? The thing is, with respect to AMC, this order book includes the AMC contracts also, and these contracts are long-term contracts. That is how it cannot be exactly compared to implementation of a particular order, which will entail a shorter period rather than a AMC. That would be the case for our orders in the past as well? That would have been the case for past as well. Yes. Okay. Second question I had was on the. Hardik sir, I'm sorry to interrupt you. I would request you to join back the queue for your question, sir. Okay. Thank you. Thank you. The next question comes from the line of Mr. Mahak Singh from Max Seven Investments. Please go ahead, sir. Yeah. What are the logo deletions in these three months? Sorry. How many logos? Yeah. You all have not performed in India. Why is the revenue so down and so is the segment result in India? As far as India is concerned, how many logos have left? Some of the logos have left and, in fact, we have added three new logos. If none of the logos have left, then how come the India performance is so down? It depends on some one-time event which has occurred in the last quarter with respect to one of our biggest customer, so where we have got some part of the revenue as a special customization which we delivered for them. Yeah. Right now, employee expenses are about 74.5% of sales, almost 75%. Sorry to interrupt, Mahak. We are requesting you to ask one question. Just one question. I understand, sir. Due to lot of participants joined. Okay. We request you to join back the queue sir. Okay. Thank you. The next question comes from the line of Mr. Samar Singh from TPF Capital. Please go ahead, sir. Thank you for the opportunity. I think the main question I have is, our sales and marketing expenses, which have gone up a lot, have finally shown results in our order book. There seems to be some sort of a mismatch between that converting into PNL. Could you just explain to us why, what is the reason why our order book has literally doubled from last year, but our revenues are down 3% YOY? Our order book is a composition of certain contracts which are little long range, maybe extending up to five years also. There are certain orders which get fulfilled within a shorter period of time also. That is why you might not be seeing exactly culminating into a shorter revenue cycle. In addition to that, sales and marketing expenses which you talked about, is yielding definitely the results in terms of healthy order book. While, yes, there are certain markets in which we are setting our foot and in those markets there will be certain expenditure which will yield result in maybe subsequent quarters. It is that the order book should start getting consumed at some point, right? Start reflecting in the revenue. Yes. When you go from INR 600 crore to INR 1,200 crore order book, revenue should start going up, but they are not. I would need clarity on that. The implementation cycle also is slightly longer and is not a quarterly phenomenon. It takes some time to implement the order, and it also depends on customer to customer, depending upon the kind of complexity which we have to deliver. Also, it depends on the volume which they have in terms of migrating their legacy systems to ours. That is why typically, this implementation cycle varies from customer to customer. Sir, how many customers are in this increased order book of INR 600 crore that we've got over the last 12 years? How many additional customers is that approximately? If you talk about in last 15 months, we have added almost 10 new logos. Okay, thank you. I will come back in the queue. Thank you, sir. Participants are kindly requested to stick with one question in the initial round and get back to the queue for more questions. The next question is from the line of Anuj Sharma from Steadfast Investments. Please go ahead, sir. Yeah, thank you for this. Just a request. One question won't even allow you to ask a follow-up. See, just one observation. From 2023 to 2025, our observations were that we were a deeply discounted pricing structure, and we would want to correct that. We did correct, which helped us to get margins of 25%-27%. We did comment that it is our aspiration being a product-centric company, our margin should be in that range, which was consistent with industry dynamics. Over the past two years, we really surrendered and couldn't retain any of these benefits. Just wanted to understand this journey. If I just extend this journey, it seems like we again, in the next few years, will again become a deeply discounted model waiting for another round of price correction. I was just trying to understand where have we seen that kind of maturity with other product companies I have seen, and that is question number one. Your observation is, I think I would agree partially only, because what we had to do in the past, of course, gave us the benefit for some time. Yes, I think we mentioned, or you would have noticed that past couple of years, the new orders, new logos were not there. Which kind of impacted us. Now, second half of last year and this quarter is when our order books have got back again. It's become strong again, which will of course result in revenue as the project start getting executed. I'm not able to relate the past to present, but this is what the situation. What we did a few years back was something which was needed. That did give us a leeway for a couple of years. Now there's a new order that will give us growth. Yeah. No, I get that. My real question is, you don't see product companies like this. Most of the time, product companies are able to extract efficiencies and productivity and are able to retain it. Nucleus somehow has not been able to do so. Where are we different or what are our challenges which are not similar to other product companies? I'm talking about successful product companies because many don't survive. The ones who do, and I see very reasonable rate, demonstrate some maturity in operating metrics. Vishnu Ji, maybe, just understanding beyond what is it really that we behave unlike a product-centric company. Our financials rather. Can't talk about other product companies. We've been comparing that better. One thing which I can tell you is when our order books were low, we did not stop investments into product. Our product investments did not stop because we've been maintaining that we always have a long-term view. Past couple of years when we were not getting new logos, we did not stop investments. That could be reflecting what you are observing right now. Now that new logos and new orders are coming in, we should now again see an uptick. That's how I would respond. Yeah. Yeah, absolutely. Parag has very correctly highlighted that is what has happened. Our commitment to our customers, existing and obviously prospective also, is firm in terms of delivering the latest functionality and the latest technologies, irrespective of how in the short term we are able to service our stakeholders that is represented by you. For us, customers are continued to be our highest priority. In that prioritization, shareholders would benefit, which is what is happening with us. All right. I'll come back in the queue. Thank you. Thank you. Thank you, sir. The next question comes from the line of Mr. Rahul Jain from Kamya Capital Wealth Management. Please go ahead, sir. Hello. Rahul, please go ahead with your question. Hi, this is Rahul from Kamya Capital. Basically, first of all, congratulations on very strong order signing in last couple of quarters. It would be great if you could explain us, are these most of this in a subscription model? And does the big part of those orders are related to the subscription value which will accrue over five to seven years? That is part one of the question. Part two of the same question is that, as this model is moving towards subscription more and more, do we see the implementation as a percentage of the order value reducing? In general, if you could talk about how you expect this order book traction to translate to revenue traction. Will it be back ended during the year, or it will be more even beyond that? Any color on this would be great. Rahul, as you said, while we don't give any future guidance on that, I will not be specific on numbers. Directionally, if I talk about these AMCs are basically, I will not call it a subscription model, but it is based on a certain amount which grows by a certain percentage every year, and that may last up to five years. We normally get into this contract for five years. With respect to all the new logos, obviously, there will be implementation and licensing costs that definitely we'll get from the customer once the implementation starts. That is where a significant part of the revenue will get accrued. Certain parts in the form of AMC will get accrued over a period of five years. Okay, got it. Are you trying to also say that the jump might have also come up because of some AMC renewal on a longer chart, or you are saying generic comment? I'm assuming it comes from the new logo wins. Not exactly. It is exactly coming from the new logos. Yes. A significant portion is coming from the new logos. A reasonable part is coming from existing customer also, AMC getting renewed at a significantly better price. Sure. Thank you. That is it from my side. Thanks for the call. Yeah. Thank you so much, sir. Next, we have a follow-up question from Mr. Hardik Bora from Vivaya Capital. Please go ahead, sir. Yeah, thank you for the opportunity. I was just looking at the marketing and sales expenses and the SG&A expenses. Both have increased to about INR 21 crore. Of course, we are seeing the order book already reflecting the efforts made on this front. Is there some lumpiness in these costs, or are they expected to go down going forward? Just wanted to get some color on the sharp rise in the SG&A and marketing costs on a quarter-on-quarter basis. Okay. As far as SG&A is concerned, I think it is a fixed level by and large we will be maintaining. The effectiveness will come over the next few quarters, but the level will be at this level. In addition to that, we will keep looking for investing in those events or in those markets which are strategic priorities to us, and which can yield results in coming future. That calibration will go up. Yes, largely, expenses should go up. There's no large one-off that we need to keep in mind at the quarter per se. Nothing. Okay. Thank you. Thank you so much, sir. The next follow-up question is from Mr. Mahak Singh from Max Seven Investments. Please go ahead, sir. Yeah, employee benefit expenses as a percentage of sales is around 75% right now. Is it going to come down or is it going to remain the same? It should come down because it is as a percentage of revenue. If you see, we have largely been hovering around two, INR 210 crores, INR 13 crores. That is the number we are looking at. Obviously revenue increases, there will definitely be a decline in percentage we will see. While yes, we'll continue investing in our talent and hiring AI-native talent, and that may impact a little bit, but not much. Do you have any margin control initiatives? Even if you increase your revenue, if expenses are eating up all the profits, then nothing is left for the shareholders. Yes, we are working on that. I feel you will see the effect of those efforts in subsequent quarters while we can't quantify it. Yes, on ground, we are looking at this. In fact, we are focusing on high-margin deals as well, as we chart our course of growth in other geographies than India. Okay. I will join the queue. Thank you. Thank you, sir. The next follow-up question is from Mr. Anuj Sharma from Steadfast Investments. Please go ahead, sir. Just wanted to understand our pricing philosophy or pricing structure. Over the past, again, I would focus on the long term, how has our pricing changed in the last, let's say, three, five years? What do we do different in pricing? Because one of the challenges, again, for us was pricing. How have we worked on it? Yes, pricing always remains a challenge in the wake of competition. We have chosen to retain and be a premium player because the kind of product we offer in the market is extremely, I would say, strong and solid product. In terms of effectiveness, in terms of features, in terms of various aspects of the product, we believe in our product. Yes, there is stiff competition in the market. While we don't talk about the competition, but yes, that is also little bit affecting in terms of our efforts to take the price. We're maintaining that price segment. We want to continue in that segment, and as situation improves, obviously, we'll take that up. Okay. In terms of geography, since we have been for some time looking beyond India, which geography seem to be very promising for us in the medium to long term? I feel Middle East and Southeast Asia are with that. Definitely, we have got our footing in U.S. markets also. We see growing in these markets little differently than other markets. Got it. One small question. In terms of productivity benefits, do you see us getting any productivity benefits from AI? Not right now. Yes, we are expecting those benefits to flow in as we strengthen our AI usage inside the organization. Quite some time. While there is a visibility there, this Vishesh, there is a visibility that what we have not actually started measuring in terms of what tangible benefits that are in terms of numbers. We are holding it for this quarter. We are on the right path. All right. Thank you so much. Thank you, sir. The next question is a follow-up question from Samar Singh from TPF Capital. Please go ahead, sir. Yeah, thank you for the follow-up. Just on the order book over the last 12 months, the increase that we've seen, can you give some color on, is it largely FinnOne Neo or is there some FinnAxia there as well, and the geographies the order book covers? Largely FinnOne Neo. The geographies. Geography, I think mostly India and Middle East. Latin America. Yeah. Apart from the U.S. order that we talked about, India, Middle East. It's a mix. Just on, I guess the North American market. I think GM Financial has been a customer of ours for a long time. I think that's everywhere outside of the North American market. If you can just talk about why has it been that a customer who's used our products everywhere else in the world, but not promoted their U.S. business to Nucleus, and is that an opportunity for us going forward? In two parts. One is, that is the way the customer's business is structured. They have a North America division, and they have rest of the world. Our contract has been with the outside North America. Yes, future, there is a possibility. Can't rule that out. The other customer that we talked about, other order we talked about, one U.S. order that we got in the last year, based on that, we would expect to build upon that as an outside GM. Was this also another sort of a vehicle financier, or was it a bank? The client that we have- Like the U.S. in this segment, we took a very niche segment in the auto finance area. It is that customer. Got it. Okay. Thank you so much. Thank you, sir. Just confirm that will be the last question for the day. I would pass it over to Ms. Swati for her closing comments. Thank you, Akash. We would like to thank all the investors for joining us today on this call. I would pass it over to Vishnu sir for his closing comments. Once again, I would like to take this opportunity to thank you for your continued interest in Nucleus Software. I would like to reassure you of a build a long-term institution. Thank you. Thank you, sir. That concludes our conference for today. Thank you for participating. You may all disconnect now.