Ladies and gentlemen, good day and welcome to Pelatro Limited's H1 FY26 Earnings Conference Call. As a reminder, all participants' lines will be in the listen-only mode, and there'll be an opportunity for you to ask questions after the management's remarks. If you need assistance during the conference, please signal the operator by pressing star, then zero on your touch-tone telephone. Please note that this conference is being recorded. Before we begin, I would like to remind you that this conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the management as on date of this call. These statements do not guarantee future performance and involve risks and uncertainties that are difficult to predict. I would now like to hand over the call to Mr. Rishabh Rathod from Confide Leap Partners. Thank you, and over to you, Rishabh. Thank you. Good day, ladies and gentlemen. My name is Rishabh Rathod from Confide Leap Partners. I warmly welcome all the participants joining us today for H1 FY26 earnings conference call of Pelatro Limited. We are with us, Subash Menon, Chairman and Managing Director, Sharat Hegde, Chief Financial Officer. I now invite Mr. Subash Menon to give his opening remark on the company's performance for the H1 of the financial year. Thank you, and over to you, sir. Thanks, Rishabh. Good afternoon, everybody. It is indeed a pleasure to have all of you join our call today. Thank you very much right from the very beginning, and welcome to the call. The idea is to present our deck. The deck is on the website, as well as it's been sent to NSE. It's been uploaded in all the relevant places. So I'm sure you all would have had access to the deck. In case anyone has any doubt on the location still, please go to our website, pelatro.com, and go to the Investor Section, Presentations, and you will find the latest deck there. That is FY25-26 H1 Investor Presentation. I will now take you through the deck, and at the end of that, and probably take about 10-odd minutes, and at the end of that, we will throw the floor open for questions. The initial section will be handled by me. I'll just share the financial highlights and some cash flow trend and general highlights about the business, and then I will hand over to my colleague to take you through the depth of the financials in depth. Now, if you look at the deck, I mean, the first slide, of course, is a title slide, and the second slide is a safe harbor, and so we'll start with the third slide. As an introductory remark, I would like to share with you that the business is chugging along exactly in line with the expectation. We are quite excited with the possibilities, and we are quite happy with the way things have been turning out, whether it's with respect to new contracts being won or execution or product capabilities being built, appropriate recruitment happening to support all of that. So on all fronts, I think we are going very well, and we see very interesting times ahead, both this year and in the coming years. Now, that is becoming obvious from the highlight, which is slide number three. That's where I am now. The highlights of the revenue and the highlights of the half year, which is basically the revenue, EBITDA, PAT, and EPS. As you will see, revenue went up by 58% as compared to H1 of last year. Now, as you all know, in our business, the sales cycle is very long. Implementation also takes time. Sales cycle is like 10 months plus. Implementation is 6-8 months or at least 5 months. So given all of that, a quarter is actually a very short time in our business. It's not a long time at all. The way to look at our business is to look at it from an annual perspective. That is why the year-on-year growth for any period, whether you look at a quarter or a half year or the full year, the year-on-year growth is what you have to be focusing on and not so much the quarter Q1 to Q2, Q2 to Q3, the quarter on, I mean, sequential growth in the quarters. That's why we are focused on the year-on-year growth here. In H1, as compared to H1 of last year, our revenue grew 58%, our EBITDA grew 59%, and our PAT grew 63%. The exact numbers itself, my colleague Sharat will read out later and discuss later. The important aspect that I would like to focus on here is the non-linearity being established further or being demonstrated further by the business. As you can see, while revenue grew 58%, PAT grew 63%. So this will continue to happen as the business progresses. That's the non-linearity in the business that we are talking about, as in any good product business. The next slide talks about the segmental financials. This is the first time we're giving segmental because we just acquired Essel a quarter ago, and the effect of that came into effect on 1st July. So it's just the quarter. And so it's only for Q2. So the numbers that you're seeing here, although we talk about H1, the Essel division number itself is only one quarter, Q2. That's being explained there. On the revenue front, we had a very, very good, we had excellent revenue on the CVM side, and we spoke about the kind of growth we had earlier and on EBITDA as well. So on the EBITDA side, we are now at 23.8% of EBITDA. This is up from the whole year last year of 23.1%. So EBITDA is also improving. Another very, very important aspect I would like to touch upon is the next slide, which is the cash flow trend. Now, you would have noticed that as the business has been growing, cash flow has been a bit slow in catching up. That's the reality. Now, that situation is changing. If you look at the last financial year, 24-25, the average quarterly cash flow situation was negative four crores. So every quarter, on an average, because we do have a little bit of, if one particular large collection slips by two days, it goes from one quarter to the other quarter. So comparing quarters, once again, here as well, is a bit difficult for us. So we are looking at an average quarterly number on the cash flow front. It was minus four last year for the four quarters, minus four each quarter. Now, for the last two quarters, it is minus one each quarter. So there's been a tremendous improvement. So the negative cash situation has come down by three quarters. It has come down to one quarter of what it was, and I'm absolutely confident that in the coming quarters, it will swing to the positive side. So the business, in the initial years, we were slowly catching up. Profits were low, and revenue was rising. A lot of investments had to happen. Non-linearity had not kicked in. Now, all those elements are changing. We have a higher profit now, profitability now. Non-linearity has happened. Revenue is growing very well. It's at a decent level. With all that, the cash flow situation is now starting to turn. You will see a positive cash flow happening in the coming quarters, and certainly for the next year, for the full year, we will have positive free cash flow from the business. That's an extremely important aspect that I would like to stress upon. The next slide that I would like to touch upon is with respect to the general highlights of the business. Now, this is a very, very important slide, as important as the numbers itself. This shows the predictability of the business, the possibilities of the business, and how we are seeing the very quality of the business, I would say. If you look at that, you will see that as we speak, for the year 2025-26, our contracted revenue is—what we have contracted is 100% of the target revenue, which means we have an internal target of what we would like to get as revenue for this financial year, 2025-26. Whatever that number is, of that number, 100% is in the bag as we speak. All of that has been contracted. We only have to execute and recognize that revenue, which will happen as has happened in the past few quarters. At the end of quarter one, this was at 96%. It has improved further in this quarter. Now, we are only halfway into the year, and at that point in time, we have full visibility for the full year. Even more interesting is the fact that for the next year, 2026-27, we are at 59%. 59% of all revenue that we are hoping to recognize in the next financial year, 2026-2027, is already contracted. Now, this number was 49% at the end of quarter one, so that has also improved. This shows predictability in the business, stability in the business, and all of that. Now, moving to the average revenue per customer, this is a metric that we have been tracking. We were at 2.74 crores per customer at the end of quarter one. It's now 2.77. You will see this improving slowly, but there will be a regular improvement. Finally, we've been talking about the revenue CAGR expected over the next three years, 25%-30% is what we are expecting. That's with respect to general highlights. I will not talk about the product specifically because this is a repeat of the last quarter slide. If anybody needs any clarity on that, you can ask during the Q&A session because for others, it will be a repetition. For the next two slides, the first one is on the CVM division, and the next one is on the Essel division, so as you all know, we operate as two different divisions now, CVM and Essel, consequent to the acquisition of the Essel business. The next slide is about the revenue model. I would like to hand over at this juncture to my colleague Sharat, who is a CFO. He will take you through the remaining slides. Hello all. Good afternoon, and welcome to our investor call. This is Sharat. So thanks, SM, for taking us through the slides so far. I would like to go through the revenue model that, I mean, the next slide, which talks about the revenue model. So our revenue is predominantly divided into repeat revenue and one-time revenue. So repeat revenue being revenue from the existing customer, both contractor and non-contractor, and one-time revenue is predominantly the license and implementation fee that comes at the beginning of most of the license contract. Now, the repeat revenue is further divided into recurring revenue and reoccurring revenue. So recurring revenue are those revenues that are contracted, which are basically the, I mean, if certain customers go for the subscription model of our license, then the monthly fixed license subscription fee, the AMCs that come along with license, the managed services, I mean, the managed services revenue that we get from customers who have opted for our services, and then the gain share. So these are the recurring part, and then reoccurring is basically change request or, I mean, what we can call as customization. So the reoccurring part, although may not be contracted, are as well, I mean, are revenue that flow in from the existing customers because as the product evolves and as the requirement of these telecom operators evolves, they would need some kind of customization, some kind of additions, etc., to their already taken product, and change request is what supports that. So the next slide talks about the breakup between these different types of revenue, basically the recurring revenue, reoccurring revenue, and one-time revenue. So for the H1, we have had a recurring revenue of 57% and 22% of reoccurring revenue, giving us a total repeat revenue of around 79%. So we have been telling this in the past as well that any, I mean, a total repeat revenue of anywhere above 75% is always a good trend in our business. So the balance 21% is from various license contracts, I mean, licenses that we have implemented for the half. So that's about the next three slides. Then the next slide that talks about—I mean, that represents our growth strategy. So SM, would you like to take us through this? Yeah. I mean, this is the same as the last time. Once again, we will skip this slide, and if anyone has a question, they can ask, and we'll go straight to the financial summary, please. Yeah. Okay. Thank you. So financial, as mentioned, Mr. Menon, the growth—I mean, revenue has grown at 58% year-on-year. So the total revenue that we achieved for the H1 was 60.74 crores at the group level. EBITDA grew by 59% to 13.81 crores, and PAT that we have achieved is 8.21 crores, which grew at 63% year-on-year. The corresponding numbers for last, I mean, H1 of FY25 were 8.67 crores EBITDA and 5 crores PAT. So there is a clear growth trend here on the profitability. So as mentioned again, the H1 numbers also reflect our new division, that is Essel division, that we acquired effective 1st July 2025. A total of 6.91 crores of the total revenue was contributed by Essel division, which accounted to slightly more than 11% of the total revenue. The EBITDA that the Essel division achieved was INR 1.02 crores, which was around 15% of the revenue from that division. CVM division alone gave us a revenue of INR 53.8 crores with an EBITDA of 23.8%. The EPS stood at 7.83 per share, as against 6.55 during the H1 of last year. These are a few major highlights of the financial. So. Are you querying the details on the balance sheet? Yeah. So apart from this, on the balance sheet side, the trade receivables stood at INR 33.55 crores at the end of the H1, representing a DSO of 100 days, and the cash stood at INR 20.7 crores. Yeah. Over to you. Okay. All right. So before we throw the floor open to questions, I would like to kind of explain a little bit further about the business. As you all know, we have products of our own. Today, we have got multiple products because of the Essel acquisition as well in different sectors, sectors within the telecom space itself. Apart from our Contextual Customer Engagement Hub, which had Campaign Management and Loyalty Management, we have now added eTopUp and stuff like that. So on all these fronts, what we have been doing, and which is very, very crucial for our growth, is to come up with new versions. So for the acquired business, now we have planned launches of new versions for all the products acquired through the next three, four months. So by March of 2026, we would have launched brand new versions for all the products we acquired in July. So that's a very important step for us because this enables us to step up with respect to capabilities of the product and also to retain our customers further, and finally, to cross-sell and upsell to our customers, thereby resulting in more revenue. So as I stated initially, we are firing on all engines, and we have been launching new versions. We have been launching new capabilities, and we'll continue to do that. And we are going deeper and deeper into each customer. Now, that's a very important qualitative aspect. As it is, our products are viewed as tier-one products by our customers. So they're very critical products. When we go very deep into our customers with multiple products and multiple capabilities and services, then we become even more critical. Now, this has been expanding. This has been increasing, or the relationship has been deepening in that sense. So that's another good news from our side with respect to it. And I'm not surprised with this because of the capabilities of the platform. I'm only happy to report that it is happening as expected, and we'll continue to do that. So I mean, to sum up, we are very, very happy with the performance of the past six months. We believe that things will be similar or better in the coming quarters, and we'll continue to report on a quarterly basis. Although, as I said initially, you should look at our business slightly from a longish-term perspective. So really, on an annual basis, quarter-on-quarter growth, one year to another year, or half-year to another half-year, instead of just sequential growth. So with that, I would like to throw the floor open to questions. I'm sure there are some out there. So over to you, Kishore or. Thank you, sir. Ladies and gentlemen, we will now begin the question and answer session. If you have a question, please press star and one on the telephone keypad and wait for your turn to ask the question. If you would like to withdraw your request, you may do so by pressing star and one again. Let us wait a moment until the question queue assembles. The first question comes from Mr. Jayesh Shah from Shah Investments. Please go ahead, sir. Yeah. Hi. So I have a few questions. So this half-year witnessed a very solid revenue growth. So from your perspective, which are the strongest business verticals and anything that surprised you in a good way this time? The strongest, I mean, I can't say strongest. There are only two divisions. One is CVM and one is Essel. So the stronger one definitely is CVM because that's been our core business for several years. We've been building that. You will see Essel division also growing very well in the coming years, but that will take some time for us to, as I told you initially, we are now launching new versions of the product. There was a lot of work to be done on that division, and we are going through all of that. And you will see that happening on that side, on the Essel side as well, that growth happening in the future. But currently, it is the CVM division. Surprises? I mean, if you're talking about negative surprises, none whatsoever. Positive also, as I told you, I'm not surprised with the growth. I mean, this is in line with what we were expecting anyway. Okay, and on the contracting visibility you spoke about earlier, with almost all of FY26 already locked in, how does that influence your internal planning for hiring and delivery capacity? No, no. We are not planning for hiring and delivery. Are you asking whether we have adequate delivery capacity to complete the year properly? Yes. Yeah, of course. See, as I told you, our implementation cycle is at least five months, generally six to eight months. So if we already don't have everything in place today, we can't execute by March 26 anyway. So our business is a very long-term kind of business. You need to plan for the long term. So when I say it's all contracted for this year, I also mean we are absolutely geared up and prepared to deliver and execute and recognize all that revenue as well. Okay. So there's no room for that. Fair enough. And on the Essel thing, have we started to see any cross-sell conversations opening up because of this product suite? Any early examples that you can share? I can't share the names of the customers, but the answer is yes. In one customer, they have already selected the Essel product, which is already a customer on the CVM side. We are waiting for the contract negotiations to close. In the second one, they have shortlisted us. Again, it's a CVM customer, and they have shortlisted us. In the third one, also shortlisted. So yeah, there are three opportunities we are working on as we speak. How is this particular division expected to contribute in revenue and capability, the Essel division? We have not declared the different revenue numbers of the divisions. It definitely might be much smaller than the CVM side because when we acquired, also, it was small, right? I mean, we acquired a business with about 28 or 30 crores kind of revenue number annually. So it will be much smaller than CVM, but I'm not able to share the future numbers at this point in time, but it will be smaller. Okay. Yeah. That's it from my side. Thank you. Thank you. Thank you. Thank you, sir. Ladies and gentlemen, if you have any questions, please press star and one on the telephone keypad. I repeat, if you have any questions, please press star and one on the telephone keypad. The second question comes from Mr. Deepak Poddar from Sapphire Capital. Please go ahead, sir. Hello. Am I audible, sir? Yes. You are audible now. Okay. Okay. Great. Thank you very much for this opportunity, sir. So just a few things wanted to ask. Now, in the presentation, we have mentioned a CAGR of 25%-30% over the next three years. So it includes all sorts of inorganic contribution as well or this 25%-30% only organic we are talking about? This is organic because we can't really be planning for inorganic. Okay. Okay. So inorganic, whatever comes would be over and above this, right? Yeah. Whatever comes would be over and above this, but then nothing may come also, okay, because we may not acquire anything in the next three years. That's also possible. Yeah. Fair, fair, fair point. But anyways, this year, at least, you have Essel contribution to come, right? Yeah. Yeah. So this quarter, we saw full three months of consolidation, the seven crores contribution on revenue that you mentioned? Yes. That 7 crores, yes. That's a quarterly number from Essel Division, 6.91. Okay. Okay. Understood. So I was just trying to understand, so what has changed on a quarter-on-quarter basis? I mean, last quarter versus this quarter, the INR 7 crores has got added, but your EBITDA is same, whereas your Essel EBITDA was around INR 1 crore. So I'm just not able to understand, so where is this? I mean, why there was a decline in margin for us? No. So if you—I will let Sharat also answer. There is no decline in margin on the CVM side. If you're looking at consolidated, yes, because Essel Division margin is not as high as the CVM division. So the weighted average is coming down because of the weighted average thing. Sharat, anything else? Is that what it is? Yeah. Yeah. That's what it is. So the decline in margin is mainly due to the weighted average decline. Okay. But on the absolute number also, I mean, from Q1 to this quarter, I think from 27 crores. No. No. Hold on. You need to understand one thing, as I explained earlier. Q1 to Q2 is not a comparison that really applies to the nature of this business. Things can swing here and there. You should really look at annual growth. So quarter one of last year to quarter one of this year, quarter - I mean, H1 of last year to H1 of this year, this is the real comparison for our business because, as I told you, our implementation cycle is some six months or eight months. Our contracting cycle, I mean, sales cycle is like 10 plus months. So in a business which has got long sales and implementation cycle, consequently, long revenue recognition cycle as well, just one milestone going from 30th September to 1st October could make all the difference between the two quarters. Okay. Okay. I got it. So sequential, when you say quarter on quarter, if you're comparing last year to this year, fine, we can talk about that. But sequential, Q1 to Q2 of the same year, Q2 to Q3 of the same year, you should not compare in our business. That is a wrong metric to follow. Okay. Understood. Understood. Fair point. So on an annual basis, what's the margins we are looking at on an annual basis? Sharat? Yeah. So on an annual basis, I mean, we expect the margins to improve further from H1. So I mean, I would say EBITDA is somewhere around 24% and PAT is somewhere around 14%. Okay. So when we say EBITDA of 24%, that excludes other income? I mean, it will be including other income. Including other income. Okay. Okay. Okay. And 14% would be the part that we, and this we are talking for the entire year, right? Not for the H2? No, no. For the entire year. For the entire year. Okay. Okay. And any more inorganic plan we have? I mean, are we scouting for more opportunities there? We will keep looking for opportunities, but we'll be extremely careful about an acquisition. We have got very strict guardrails or guidelines which we would follow. So yes, our eyes and ears are always open. We are always looking out for opportunities, but nothing concrete at this point in time. Okay. Understood. And a couple of new products also we were planning, right, apart from this campaign management and loyalty management. So can you throw some more light? So at what stage is it? I mean, something on the line of D ata Monetization or customer data platform, so. Those products have already been launched. On the CVM side, now we have got five products, and we don't intend to increase that in the near future. On the Essel side, we have three products. And there again, our plan is to further expand those products instead of adding new products. So overall, we have got eight products at this point in time. Five products on the CVM side and three products on the Essel side. Three. Okay. Understood. And how's the traction? I mean, something you can—how's the traction or how's the feedback on this new product from the customer side? It's pretty decent. I mean, it's good. I mean, as I told you, the sales cycle is very long, so it always takes some time. But from what we can see, there are great possibilities for some of these new products as well. Okay. And just a few more things from my side. How many telcos right now we would be having as our customers? We have around 45-plus telcos at this point in time as customers across the two divisions. I mean, including the Essel, right? Essel one, yeah. Lesser number on the Essel side, many more on the CVM side. Okay. I understood. Okay. I think that would be it from my side. I would like to wish you all the very best. Thank you so much. Thank you. Thank you, sir. Ladies and gentlemen, if you have any questions, please press star and one on the telephone keypad. The next question comes from Mr. Shubham Jain, an individual investor. Please go ahead, sir. Hi, sir. Congratulations on a good set of numbers. I have two questions, sir. So the first question is that in the last con call, you had mentioned that right now you're not planning to diversify into other sectors like banking and all. So I just wanted to understand, is the stance still the same, or are we also now thinking of diversifying or maybe selling to other sectors as well? So it stays the same, and that would be the case for the near future at least. Got it. Okay. Sure. And sir, the second question is that basically, I just wanted some commentary on, let's say, today, I mean, if we have to, let's say, scale our business from 100 CR revenue to 500 CR revenue, what is the path towards it? Is it just about onboarding new clients and cross-selling the Essel and our primary product, or is it something else? Fundamentally, that's what it is. Winning more customers because from a product standpoint, I think we've got adequate products now to get to much higher revenue. I don't know about 500 crores, but significantly higher than where we are today. We have got adequate products. So it's really about selling to more customers and winning their business and then scaling up. Got it. Thank you, sir. That's it. That's it. You're welcome. Bye. Thank you, sir. Thank you, sir. Ladies and gentlemen, if you have any questions, please press star and one on the telephone keypad. The next question comes from Mr. Rahul Singhania, an individual investor. Please go ahead, sir. Yes, sir. So I had a couple of questions. So on margins, we've seen our EBITDA margins steady around the same range. So from a practical standpoint, do you see any levers that could improve margins in the future, especially short-term? I will address that from a qualitative standpoint, yes, because nonlinearity is increasing. It's getting better. So with that, yes, the margins will improve. And sir, connected to that, as more revenue comes from Singapore, does it have any positive impact on margin or tax efficiency? Now, you see that what comes from Singapore, what is contracted by India, these are all based on the conveniences of the customers, what they prefer, and what makes sense and all that. You should really be focusing on consolidated here and not so much the standalone because, as I said initially, whether we contract from Singapore or contract from India is just based on whatever is convenient for the customer. So we will, of course, try to be as tax efficient as possible, no doubt about it. We'll try to improve the tax efficiency. That we will. But the guiding factor here really is what the customer prefers. And also, one very important thing, what the withholding tax is between Singapore and that customer's country or between India and the customer's country. So which region do you feel are showing the strongest order momentum right now? Any area that is standing out? Yeah. From a number of customers' perspective, it is the Middle East and Africa. But when you look at per customer revenue, the higher thing is Asia because Asian customers are larger. Larger base? Asian customers are larger. I mean, they've got more subscribers, and they're larger telcos. And in places where we already have strong presence, like Asia and Africa, you said, is there still enough room to expand within existing clients? Plenty. Because if you look at Africa as a region, they've got about 50 countries. They've got about 150 telcos. So if you take the Middle East, that's probably another 30-35 telcos. So it's a large market. I mean, we will not reach saturation point anywhere in the near future. Sir, lastly, with the combined Pelatro plus Essel offering now being broader, how do you feel about our growth plan? Do you see any areas where caution is warranted? We are a very cautious company. This is why I stated earlier that when it comes to inorganic growth, we'll be extremely careful, and the most important thing in our business is to ensure that the customers are happy, so if you ask me to choose between winning a new customer and keeping the existing one happy, I will choose the latter. I'm not saying I will sacrifice the first or something like that because winning a new customer, sorry, keeping an existing customer is actually the path to winning a new customer. So we're very, very cautious about our support and service to ensure that the customers are happy, so this is something that we'll be extremely careful about. Thank you, sir. That's it from my side. Wish you a pleasant day. Okay. Welcome. Thank you. Thank you, sir. Ladies and gentlemen, if you have any questions, please press star and one on the telephone keypad. I repeat, if you have any questions, please press star and one on the telephone keypad. The next question comes from Mr. Rupesh Tatia from Long Equity Partners. Please go ahead, sir. Hello, sir. Thank you for the opportunity and congratulations on a good set of numbers. I am, I think, very new to the company, so some of my questions are very basic. So first question is, sir, only the telcos are your customer, or the customers of telcos are also your customers? Only the telcos. Okay. And whatever business improvement, customer experience improvement, lead management, loyalty management, all these are for telco customers, or is it like the telco is providing some solution or services to, I don't know, a retailer or somebody, and then through you, you also serve the retailer? Or this is just related to telco products like recharges and postpaid and some of those stuff? It's not clear to me. Okay. That's a good question. So first and foremost, we serve the telcos to help them serve their subscribers, understand their subscribers better, and engage deeply with their subscribers to sell their products more, cross-sell, upsell, all that. We also have this product called data monetization, which helps the telcos to serve their B2B customers. For example, if a telco has Nike as a customer and Nike wants to market Nike's products, say, some shoes or whatever, to a target segment which is within the subscribers of this particular telco, the telco will, our platform, data monetization platform, will be used by the telco to provide the capability to Nike for them to send their campaigns. So those are not telco products. Those are shoes or whatever else, or apparel or sports gear, sportswear, whatever, to the subscribers of the telco. When you look at loyalty management, we help, that's another product of ours. The telcos do provide loyalty as a service. So if somebody, if a retail chain wants to run a loyalty program, the telco can help them to set up and run a loyalty program using our platform. So we do have, and lastly, in our campaign management platform, we have a B2B module, B2B offering. And there, the telco helps the business customer of theirs. For example, for Vodafone Idea, if Air India is a customer, they will help Air India with their own connections and usage and variety of things. So our solutions are used by telco for their own marketing purposes, and they can use it to help other customers of theirs, naturally businesses, not individuals, to run their campaigns or their loyalty programs, etc. So it's both in that sense. So now, I mean, whatever revenue you have in FY 25 or H1 of FY 26, how much is, let's say, telco-native revenue, and how much is this sort of, I don't know, CPaaS? Maybe it looks like a CPaaS to me. Is this CPaaS revenue? No, we can't differentiate that because all our revenues come from the telco, and telco will get some revenue from their customers. That's fine. But that doesn't flow through to us. We serve the telcos. We charge them X amount. They charge Y amount to their customers, whatever it is. I don't know. So that's not transparent to us, and I'm not able to—I can't share that information. So we don't get a—there's no pass-through revenue from their customer to us. There's only our contract with the telco, and telco gives us whatever. So there is no sort of per transaction because I saw you mentioned A2P also in one of your slides. So there is no per SMS revenue or per transaction revenue. It's not like that. You sell software to. We don't get into that kind of. We don't get into that. We do have recurring revenue, which is modeled differently. Okay. So I mean, the question, sir, is there are a lot of CPaaS companies in the market, right? Yeah. So then you mentioned Nike. So why would Nike choose, for example, a telco product versus a CPaaS product to run a campaign? What is it that we? The CPaaS is also provided by the telco to Nike or somebody like that. Nike or maybe some other platform, some other company else. Nike would go to a telco because of what the telco is offering them by way of capabilities. Now, when they use our platform, somebody like a Nike, they can do very targeted campaigning. They can do extremely focused campaigning on, let's say, Nike has men's shoes for men between 18 and 25. They can go straight to that kind of a target segment because our platform enables them to target like that. They can use the AI/ML capabilities of our platform to target. That's why. Okay. Okay. And in your, I mean, so this selection of customer is some sort of algorithm, but how about the communication channels and the customer journeys? I mean, do you support WhatsApp? Do you support? Yeah, yeah. We support all of that. Messages? We support all of that. Okay. Okay. I see. It's interesting. So another question, sir, is, I mean, you have 45 telcos, and I think per customer revenue is around 2.75 crore. And what you are saying is there is no sort of proper transaction-based model. So then it's very difficult, right, to take this 2.75 number to, let's say, a 5 crore in two, three years, or 10 crore in two, three years with existing products? See, our growth will come from two different angles. One is, of course, this number growing. I can't comment on whether it will grow to five years and then three years or five years. That's difficult to comment on that. But there is another second thing, new customers coming in. So the growth will be a function of these two. So whatever growth we have committed, that will happen as a function of these two things. Okay. Okay. And who would be your, sir, a large competitor, someone you look up to that if we become like this, that will be a good achievement for the company? So I don't want to be commenting on whom we are looking up to and all that. I just state as to who are out there. So there are companies. There are two types of companies here whom we compete with. One are smaller companies. I mean, there are organizations like Flytxt and Comviva. These are smaller companies whom we compete with. Then the large ones we compete with are the likes of Pega and Adobe and Salesforce. So those two are our competitor sets. Now, we have got our own advantages or USPs as compared to these two sets. I'm not going into that. But these are the two sets that we compete with. Okay, sir. I'll come back in with you. Thank you for answering my question. Thank you. Thank you, sir. Ladies and gentlemen, if you have any questions, please press star and one on the telephone keypad. We have a follow-up question from Sudeep Pattar from Snapback Capital. Please go ahead, sir. Yeah. I'm audible. Yes, you are. Okay. Yeah. So just one more clarification on the tax part. I mean, why our tax rate is lower and how should one look at going forward? Sharat. Yeah. So the tax rate is lower mainly on the account that the Singapore taxes are, the effective rates in Singapore are lower than that of India. That is one. And further, on the Singapore side, we do have some. I mean, there are ITs that are housed in Singapore which get enhanced tax deductions, which effectively reduces the taxes further. So that is actually the reason for overall lower effective tax rate. And I mean, so as I mentioned, this enhanced deduction, I mean, that's not a permanent one. So as long as that exhausts, there are certain advantages. And beyond that, the taxes might get evened out. Okay. And so how should one look at effective tax rate for this year and next year? So I mean, the effective tax rate could be in the range of 22% for the current year. So next year, I think it's a bit too early to comment on. Okay. This year, 22%. But in the H1, I think our effective tax rate is not even 5%-10%, right? It's in that range, 5%-10%. No. I mean, so during H1, we do have certain accruals as well, right? So once the SL part came in, the gratuity and leave encashment accruals that we do regularly, these are not paid out. So there will be deferred tax assets that are created out of it, which are, I mean, counteracting the cash taxes. So that is where the overall effective tax rate is slightly lower for the H1, but we should be looking at it annually. For the entire year, 22% is a good number to work with, right? Yeah. Yeah. Sure. Okay. Okay. Okay. That would be it from my side. Thank you very much. Thank you, sir. Ladies and gentlemen, if you have any questions, please press star and one on the telephone keypad. I repeat, if you have any questions, please press star and one on the telephone keypad. We have a follow-up question from Shubham Jain, an individual investor. Please go ahead, sir. Sir, so now that we have grown our sales by 58% in the H1, is it a fair assumption to say that the guidance that you have given is still on a conservative side, and we might actually end up with a higher revenue on a year-on-year basis? We have not given any guidance for the year. The only indication we gave was 25%-30% CAGR for the next three years. Yeah. Yeah. So basically, what I'm saying is that that means that basically, every year, we are at least saying that we will be able to grow by 30%. But I'm just saying that itself, we have grown. Yeah. So naturally, this year, it will be higher than that 25%-30%. Got it. Got it. It should be. It should be because in H1, we are already much higher, right? Exactly. Exactly. Yeah. The same, can we assume the same thing for the PAT as well, or there can be other expenses that can come into the PAT? We have not made any statement about PAT, so I would not like to comment about that at this point in time. Sure. Sure. And so the second question is, can you also give a bit of understanding on the current pipeline? Maybe you cannot tell the names, but how many customers we are in touch with, and what is the expected timeline, conversion, potential percentage of conversion? We have a very healthy pipeline, and at any given point in time, we have about 30-odd opportunities in the pipeline. Typically, our conversion is about one-third. The sales cycle itself is about 10 months plus. Got it. Got it. And sir, in an ideal state, let's say if there is any one customer to whom we can sell all the products, what is the maximum revenue that we can generate on a yearly basis from one customer? Extremely difficult to comment on that. It depends upon at what price you sell to them and all that. But if you're talking about all eight products being sold to the same customer, we are probably talking about, I don't know, maybe about INR 7-8 crores at least per year from that customer, at least, if not more. Because there are some customers from whom we're getting higher than this at this point in time, even though we have not sold all eight, okay? So it's a very, very difficult question. So even INR 7-8 crores is on the lower side. I would say probably a million plus easily, at least. Got it. Got it. Yeah. I was just trying to make a sense of, okay, 40 customers, we are able to cross-sell at some point of time. What is it? If everybody buys everything, what will the number be? You should multiply that 40 with at least like eight or nine. Yeah. Got it. Got it. That's it from my end, sir. Thank you. Yeah. Thank you, sir. Ladies and gentlemen, if you have any questions, please press star and one on the telephone keypad, so we have a question from Mr. Siddhant Morakhia from SMTPL. Please go ahead, sir. I wanted to check. So you've mentioned that 100% of the target revenue has been contracted. Can you please share any numbers on what that target revenue is? That would be a guidance, sir. And we're not sharing that. You will have to do your own projection based on what we have been achieving. I'm sorry for that. You would say that those target revenues factor in 25%-30% CAGR over the next three years itself, or would that be a conservative guidance? At least 25%-30%, yes. Okay. But the target could be higher than that. I mean, target always has to be higher than what is committed, right? Okay. And any other key factors that you'd like us to consider when we're modeling for the build-up that target? Honestly, I don't know exactly what all factors you consider for modeling, so I don't know which other factor you should. You should really be looking at potential new wins, number of customers. So you look at our track record over the past few years, and maybe you can take an average and apply. You already have this 25%-30% from us as a potential revenue growth number. You also are seeing some growth in the average revenue per customer. So you can look at that over the past few quarters or past one year or something, and then factor that in as well. What else can I tell you? I think that's about it at this point in time. Okay. So average revenue per customer should remain kind of similar. The customer growth should be linear, and we can extrapolate that forward? The customer growth you can take as linear, but the average revenue per customer will not remain the same. It will grow. Okay. You look at the growth of the average revenue per customer over the past one year, and that will probably give you some indication. Okay. Got it. Thank you. You're welcome. Thank you so much, sir. Ladies and gentlemen, if you have any question, please press star and one on the telephone keypad. The next question comes from Mr. Majid from Pinpoint X Capital. Please go ahead, sir. I'm audible? Yes, you are. Yes, sir. Thank you for the opportunity, sir. I just want to understand, as you were saying, in next three years, you're looking to grow at a 25% CAGR, right? 25-30, we have said. Yes, sir. So in that case, if you want to grow at 25%-30%, your revenue is going to double by that. So if that is the case, and you're also saying that you're also going to increase your average revenue per user from 2.7 maybe to 5. So majority growth, is it going to only come from the average revenue per user, or you're increasing your customers' expectation? No, I just said we have said 2.5. No, I mean, 2.5-5. I mean, somebody commented about 5. We have not quite commented on that. So that's one aspect. The next aspect is that the 25%-30% growth is a number that we'll certainly achieve. But we are not saying that you may want to factor in a higher number there, possibly. There will be customer growth as well. So it will be a combination of customer growth and average revenue per customer growth. But I don't think we have anywhere we have said anywhere that in three years, 2.5 will be 5. But you're saying directionally incoming in the same year? Directionally in the same year, but short-term income, you're going for five? No, no, no, no. No, we have not said 5. Somebody asked in the call earlier whether we will be at 5 or something like that. So what I indicated was from last year to this year, please look at the growth in average revenue per customer. It went from 2.5 to 2.77 now. So for this one to understand, which factor would out of that 25%-30% growth, maybe it will be driven by average revenue per customer, or it will be more on customer addition growth? Yeah. The bigger factor would be number of customers. Okay. And sir, you have also done an acquisition of another company. It's slightly pulling down your margins, but how are you looking at that to scale up in terms of margins and other? On the margin front, you will see that improving to the CVM levels. In near-term, in short-term. Okay. So it can improve to what level, sir? To the CVM division level, I said. Okay. Okay. Yeah. Fine. So right now, the division is a drag. Right now, the division is a drag because of the lower margin, lower profitability. That will change positively next year. Okay. Sir, finally, I have just one more question. Sir, at this time, you were able to have a good DSO. You were able to reduce to around 36 days for H1 FY25, FY26. Would that be maintained for the end of this year or the DSO would increase? No, no, no. Sharat, you need to comment on the receivable date because people are looking at the face of the balance sheet. Please explain. Yes. So we need to, I mean, when we say receivable, there are both billed as well as contracted receivables. By contracted, I mean there are certain unbilled revenues which we have already delivered, but we are yet to bill. So as per the India reporting, the unbilled receivables will be sitting in other revenue as contract receivables. No, no, no. Not other revenue. Not other revenue. Sorry, sorry. Other current assets. My mistake. So I meant to say current assets. It will be sitting in current assets as this contract receivables. Now, in the investor deck that we have presented, the AR of INR 33 crores that we have mentioned there, we have included both billed revenue as well as billed receivable as well as contracted receivable in there. So you will have to take that, and when you take that and do an annualized DSO, you will actually arrive at 100 days. So 100 days is the DSO that we have achieved for the H1. And we have always been saying that in our kind of business, DSO of 100 to 120 is always a healthy one. So we are within that healthy range. Perfect. Thank you, sir. Thank you so much, sir. Thank you so much, sir. Due to time constraints, that will be the last question for the day. Now, I hand over the floor to the management for the closing comments. Thank you very much. Once again, thanks everybody for your time and for your questions and for your interest. We really appreciate that. I would like to have already stated all these things, but I would like to sum up by stating them once again that the business is chugging along very well. We are winning more customers as expected, and that will continue to be the case. You will see exciting growth in the years to come with respect to revenue. And we expect non-linearity to continue in the business, which means profitability also will grow in the coming years. That is the very nature of a good product business, and that will be demonstrated by us every quarter. So with all that, I believe we have some very interesting times ahead and look forward to your support in the years to come. Thank you, sir. Thank you very much. Ladies and gentlemen, this concludes your conference for today. Thank you for your participation and for using Diamond Pass Conference Call service. You may disconnect your lines now. Thank you and have a pleasant day. Thank you. Bye.