Q2 25/26

Nov 14, 2025

Summary

H1 FY26 revenue grew 108% YoY as the business expanded from supply chain finance into a multi-product banking platform. Guidance calls for 75%-80% standalone and 80%-100% consolidated FY26 revenue growth, with margins expected to improve as product mix rises.

Ladies and gentlemen, good day and welcome to the Veefin Solutions Limited H1 FY26 earnings conference call hosted by Valorem Advisors. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star and then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Anuj Sonpal from Valorem Advisors. Thank you, and over to you, sir. Thank you. Good afternoon, everyone, and a very warm welcome to you all. My name is Anuj Sonpal from Valorem Advisors. We represent the investor relations of Veefin Solutions Limited. On behalf of the company and Valorem Advisors, I would like to thank you all for participating in the company's earnings call for the first half of financial year 2026. Before we begin, let me mention a short cautionary statement. Some of the statements made in today's earnings call may be forward-looking in nature. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from those anticipated. Such statements are based on management's beliefs as well as assumptions made by and information currently available to management. Audiences are cautioned not to place any undue reliance on these forward-looking statements when making any investment decisions. The purpose of today's earnings call is purely to educate and bring awareness about the company's fundamental business and financial quarter under review. Before we start, I would also like to inform all participants that a link to view the presentation was provided in the conference call invitation, which the management would be presenting in their opening remarks. So, we would request you if you would like to follow the presentation while the management is talking. If you would like to view the same, please click on the link. Alternatively, this presentation has also been uploaded on the exchanges that you can access yourself as well. Now, let me introduce you to the management participating with us in today's earnings call and hand it over to them for opening remarks. First, we have with us Mr. Raja Debnath, Managing Director and Co-founder, Mr. Gautam Udani, Chief Operating Officer and Co-founder, and Mrs. Payal Maisheri, Chief Financial Officer. Without any further delay, I request Mr. Raja to start with his opening presentation. Thank you, and over to you, Raja. Good afternoon, everyone, and thank you all for joining us. I am speaking to you today from the Singapore FinTech Festival. Trust me, the conversations that we are seeing here with folks from the global banks, it just aligns perfectly with what Veefin has been building. As a founder, I have always believed that Veefin should be built on fundamentals of a profitable core, disciplined execution, and a product roadmap that is years ahead of the competition. Today, what we will do is three things: what we have delivered, what we are currently building, and how is the market responding to what we are doing. As a summary, how has the last six months been for us? The first thing that you will see is that our core of Veefin is our supply chain finance business, and that core is working extremely well. We are showing a 54% EBITDA profitability in the supply chain finance business. This is taking into account whether it is capitalized or not capitalized, there is a 54% EBITDA in the supply chain finance business. This business is what is funding the IP creation efforts of the business also. The second aspect that we will talk about and what we have seen over the last six months is that we have now embarked on a journey of building six enterprise-grade products simultaneously. All of this are being built on the Veefin 4.0 shared architecture. The third thing we will speak about and we will see is the disciplined execution and the financial strength of what we are building. The last is that there is a very sustained growth story that we are able to see here. We have grown revenue year-on-year by 108%, and we have a very strong $47 million pipeline, which is a qualified pipeline, with strong cross-sell traction. We will speak about all of these and our future plans. What we will see is, if you combine all of these things together, what we are doing with a disciplined IT investment, a disciplined execution, and a global expansion plan, Veefin is well set to be India's first multi-product, not services, a multi-product enterprise technology product company. That is what we are trying to build. For people who would like to see Veefin at a glance, what is Veefin? It is a global software product provider to banks and NBFCs, and this is since 2020. That is what we are. Many of you will think of Veefin only as supply chain financing. However, if you look at the product lineup here, Veefin is no longer just supply chain finance. It goes beyond that into the entire transaction banking suite, whether it is supply chain, trade finance, cash management. Corporate, retail internet banking, LMS collection, fraud risk, multiple products. Veefin is now a horizontal product factory. Now has clients across 24 countries. Veefin is no longer just an India-based story. Veefin very clearly is a global phenomenon. We have 80+ FIs, 300+ corporates who are on the Veefin Group platform. We have last year, or last six months, the number that we are seeing are run rate is $40 billion worth of annual disbursal. A very key thing here is, we have our acquisition levels on a voluntary side, our net annual. We will come to more on this later. The last thing that I will leave you with here is that we have won numerous awards. What I am talking in terms of Veefin being a supply chain finance behemoth, it is not something that we are saying. The industry has recognized in that. Just yesterday night in London, we won the Euromoney Transaction Banking Award for the most innovative supply chain finance solution globally. Just yesterday night. While we are at what we are, I get this question a lot in terms of why is it that Veefin is able to do what Veefin is doing, and what is it that differentiates us, the core differentiation? I think the most important thing that we have, just take a moment here and just look at the leaders that we have here. This 14-member team, each one of them with minimum 15, 16 years of experience, many of them with 25 plus years of experience. Each one of these players, each one of these people could have gone ahead and started their own startup, and all of you would have invested in them. Each one of them could have gone and built their own startup, but all of them have come together to build Veefin as a global powerhouse in the BFSI technology space. Our latest addition to the team, Sorabh Dhawan, till recently he was a CEO of an NBFC, just joined us recently, or being the CEO for Public Sector Bank Exchange. Our PSB Xchange product is a jewel in Veefin's crown. That is where he comes in. If you look at this, we have 300 plus years of experience looking at you here. If you see the number of companies and the kinds of companies that all of this experience is coming from, that is hard are companies which are in the BFSI technology space who are trying to build products. What differentiates us is the wealth of banking experience here. You have people here from the top banks, both in India and outside India. This is the experience which is actually benefiting. Because of this, we are able to build so many products simultaneously. I keep getting asked this question, and we were asked this question even in Singapore last month, even in Germany, where we were, how is it that a company which is so young is able to build so many products simultaneously? That goes back to this leadership that we have there. Moving on to what are the highlights from the last earnings call that we had six months back. The key points here are the major things. Veefin had multiple subsidiaries. It was a complex structure. We are amalgamating our subsidiaries, and the amalgamation has already been announced, and the BSE filing has also been done. The other core thing that we have done over the last six months is around the Public Sector Bank Exchange product, wherein we have continued rollout of PSB Xchange. We have gone ahead and done live transactions. Not just that we have hired a CEO, we are hiring a team, and offers have gone out for the team to join us by December, January this year, where we will have now presence across the country in multiple states. We have spoken about the awards. Most important thing is, from a sales pipeline perspective, because that's where the rubber hits the road, we have now got a strong pipeline in trade finance, cash management, in corporate banking, corporate internet banking, retail internet banking. Finally, we all know, we've also raised a preferential round. BSE approval is pending, should be coming in the next few days, we are assuming, for INR 94.3 crores. This sets us up very well for fueling our continued IT investments as we speak. Now, why did we go around amalgamating? People spoke with us last time also, why did we have subsidiaries? Now the question becomes, why are we amalgamating? Because amalgamation, the expectation that you as investors should have from this is, that this is an EPS accretive move from next year onwards. Very clearly EPS accretive. A lot of synergies that you will see on the R&D side and the corporate governance. It makes it easier for you as an investor to see one P&L, one balance sheet, very clear visibility. It strengthens the balance sheet from a future IT investment perspective. What does a simplified structure look like? As you see right at the top, people who have the slide in front of them, it's the Veefin Solutions, the mother company, which now houses all the product companies. All the products that we spoke about, they'll all be housed right at the top. Below, we have two acquired businesses. One is the acquired entities on the product side, which has Epikindifi and Regime, where we own 26% stake. On the services business, which is going in for amalgamation, and we are planning how we are going to consolidate it, there we end up with a 20% stake in the service business. Finally, we have Veefin Capital, where we've not started doing any business till now. For people who want to know where we are on the amalgamation timeline, so we see this as something which should end in Q2, Q3 of FY 2027. In the six-step process, we are in the fourth step. BSE sent the approvals. We are awaiting those approvals. As we speak, we have submitted these last month itself. This is where the journey is. We have completed two steps. We have completed the board approvals. We have done the filing last month. We are now awaiting for the approvals. Once this is done, our expectation is the merger scheme has also been finalized, it has been filed. From April 26th, this should all be one single entity from P&L perspective. We get a lot of these questions in terms of how to look at our reporting framework. Take a minute here. We have multiple subsidiaries. So you have GlobeTF and Estorifi right at the top. People who are seeing the slide, you can see GlobeTF and Estorifi at the top. Estorifi then has two companies under it, which is Epikindifi and Regime. Then you have Infini Systems, which Veefin has a direct holding in. Infini Systems has taken a 100% ownership of Nityo Tech and White Rivers Media, which is our latest acquisition, which is held jointly by Infini Systems. Now, for our revenue consolidation, all the revenue, 100% of the revenue of all of these companies that we spoke about are consolidated. 100% of the revenues are consolidated. But if you look from the profit perspective, 100% of the profit does not come in in consolidation. The profit comes in only what is the stake of Veefin, either directly or through Estorifi and Infini Systems. Take an example. For Regime, the profit amalgamation will be only 10.85%, though Veefin holds a 26% stake through Estorifi, because Veefin holds a 41% stake in Estorifi. That is the way to look at this very clearly. Okay? So if you look at GlobeTF, Estorifi, they have now been amalgamated into Veefin 100%. Veefin will own 20% stake across the other companies, which are Infini Systems, Nityo Tech, and White Rivers Media. That company, this entire entity, we have planned a listing of this post the integration. It is a listing, a main board listing is what we are planning for. This is in line with 100% of the revenues here that consolidated, and the profits are recognized, as I said, only in proportion of the shareholding that we have. Okay? So entities, you will see some of the entities here which do not have revenue. These are the entities in which we are building our IP. We have trade finance, cash management, some internet banking projects out there. That is where we are building our IP. So, moving on to the financials. Okay? So let us look at the standalone. So now you have understood where standalone and the reporting is. This is just Veefin standalone. So the Veefin standalone level, if you look at year-on-year comparison, and these are all post-capitalization. Okay? So that means whatever investments that we have done in our IP, this is post that. We will have something more to talk about the IP investments in the next 2 slides. But right now, let us look at the financial highlights. And very pleased to inform you that our revenues have grown by over 100%. And as you can see, our EBITDA has jumped over 300%. Same on the PAT. Okay? Our net debt has gone up. We will talk more on that later, and I am sure you will have questions around it. But even on the earnings per share, they have all shown good numbers out here. And if you contrast this with consolidated, and the mergers that we had done, our amalgamation, they have started to come into effect. So our revenue deck has jumped up by over 50%, and our PAT has grown by close to 100% on this. Okay? So these are the numbers on the standalone and consolidated basis. And if you look at them side by side, again another version, it just shows you that these are all doing extremely well in terms of the revenues and the EBITDA. Revenues have gone up by 4 times because of consolidation here. So what are we doing here in terms of If you look at this. Balancing of profitability and IP investment. How should you read our numbers? It is complex for people here to understand our numbers. So we have tried this time to be as clear as possible. So all the numbers that we do, we report a number after capitalizing our development cost, okay? After IGAAP and AS 26. And capitalization is a consistent policy. It is amortized over 10 years, okay? Our capitalization is amortized over 10 years. In this, what we do is, somebody may say, "Why don't you expense everything out immediately?" Yes, we could do that, but this is very, very intentional. Because if you were to do that, then yes, we would report lower margins, but we would not have been investing so heavily on the IT. What we have done here is, if you look at the recent story, we started with supply chain financing, one product over the last 5, 6 years, and that is all that we focused on. If you did the same thing again with all of these products, we would have missed the bus because the world is moving extremely fast. Because the conversation that we're having with all the global banks, it is no longer about products. Because the global banks are all talking about not buying point-to-point solutions. Global banks are now talking of buying tech architecture. When we are talking of tech architecture, they want a single fabric in which all of the products that we are building, that's what they are talking about. They don't want to talk about trade finance, supply chain, cash separately. They all want to talk about working capital. To do that and talk about that's what we invested in before the curve. We have always been like that. Veefin has always invested before the curve, and that is the reason why we started building six products enterprise-led simultaneously. That's what we see why our IT investments are so heavy. IT investments will continue being heavy for the next year and then start tapering down. From a financial structure, how do you understand Veefin? Let's take a pause here. Because till now you have seen what Veefin has done over the last 6 months. Now we're moving into what is it that we are building. So think of Veefin as a three-layer structure. Right at the bottom is the core product, the core supply chain finance business that we have done. The key thing here is, it's a 54% EBITDA business. People ask us that what is the EBITDA that we can assume this to be a steady-state business? So Veefin supply chain finance is a steady-state business. It's a leadership business, globally very well-known. So think of this as a 50%-54% EBITDA business. On top of this, we have the standalone multi-product API platform building. So Veefin standalone financials, when you look, there you are adding the supply chain finance business, plus we are now building six different IPs out there. Therefore, that business model, when you look at Veefin standalone, it's an operationally loss-making, pre-capitalization. But if you were to capitalize it, which we have done, and the numbers that you see, it becomes profitable post-capitalization. So understand this very clearly. Veefin standalone comprises of Veefin supply chain, which is a core profitable business, but it also includes the six IPs that we are building, because of which, when we do our capitalization, it becomes profitable, and pre-capitalization, it's loss-making. Finally, we have the subsidiaries and the acquired entities, some of which are profitable and some of which are loss-making. Some of these has revenue, some don't have revenue. So that's where we are building our IP. In summary, if you look at this from a segment perspective, supply chain finance, revenue contribution high, very good EBITDA, and it's profitable. Veefin standalone, moderate revenue contribution, but negative EBITDA pre-capitalization, because a lot of IPs are being built, IPs are being incubated here. Subsidiaries again, negligible contribution, negative EBITDA. Again, why? Because these IPs are being built here. Finally, the acquired companies with moderate revenue contribution, mixed EBITDA, some are profitable, some are not. That is the story that we have of how to read Veefin. I will take a moment to explain the Veefin supply chain finance core a little bit better, because that is our core. Standalone, yes, profitable. EBITDA margins very strong, 50% plus. If you look at this graph here, you will see, we have captured this graph in half years. On a half-yearly basis, you will see every half year we are growing and we are showing strong strength here, both in the revenues and in EBITDA. As you know, our second year, the second half of the year is usually stronger, and that is what you will see this year also. We will be sharing our outlook right at the end, but rest assured that the second half of the year is always stronger, as you can see from this graph also. Second half of the year is always stronger than the first half. Particular banks are using this across 15 countries. We are talking now only of supply chain finance. Particular banks are using this. Our renewal rates are high. Most of these are SaaS products. 70% of our revenues just from supply chain finance are recurring, and profits from here are partially being used to invest in the other IPs that we are building. Moving on, how do you look at the recent product suite? The multiple products, the best way is to divide it into three specific categories. The first one is products where we are very strong, like the supply chain financing, LOS. These are proven products, proven profit centers, and they are funding our IP creation moving ahead. The strategic IP investments which we have done and which are bearing fruits are on the trade finance, cash, the corporate, retail internet banking, and the LMS. LMS here is for retail, SME, and corporate. Finally, we have our differentiated strategies on our GenAI solutions, fraud and risk analytics, our LMS solutions, the guarantee management solutions. Most of these products, remember, they are all working on the Veefin 4.0 architecture. This Veefin 4.0 architecture is really what differentiates us in the market. Because we are the only company globally, mind you, we are the only company globally with the entire transaction banking working capital products on one single chassis, all with microservices architecture. Any bank can actually pick up any small piece of that architecture and use it to enhance the existing systems that they are using. They do not have to rip out and replace the entire product suite that they already have in place. That is a very, very important point for us. We spoke about why we are doing this multiple product IP investment and what has been our philosophy. We said we want to build all of these simultaneously and not sequentially because that is the money that we have from having done this in the past in supply chain finance. When we are building all this simultaneously, there is a lot of microservices which are shared. When we are building microservices, we do not have to build one product at a time. A lot of these microservices are being used across all the products that we are building out. Our capital issue continues to be for 10 years, for a 10-year useful life period. We are doing all of the investments today so that our future is a multi-product revenue, which is again going to be phenomenally fast. Moving on to the last part now, how is the market responding to what we are doing? The market is looking at this very, very favorably. We have, I have shown this in code, but we have close to $55 million or close to INR 400 crore worth of pipeline, and this is qualified pipeline. Qualified pipeline across 85 deals in 24 countries. Look at these numbers, this is very, very important because this is where the market is responding to what we are doing. These are large deals that we are talking about, because out of this 85, 35 are active deals right now where proposals have gone in. 10 of these are large with over $2 million value for each of these deals. 15% of these deals are in very, very advanced stage right now as we speak. From product pipeline perspective, till last year, bulk or I would say 90% of our business, our pipeline, you see only supply chain financing. But this year you will see, our supply chain finance has come down to less than 50% in terms of pipeline. A very large 30% plus pipeline now is trade, cash, corporate internet banking, retail internet banking. These are our new products. The IPs that we are generating, that is where now we have a very, very strong pipeline. The remaining 20% remains in the lending side. Geographies mix also, you will see, India continues, we continue to be strong in India, 40% is India. But we are now hedging ourselves, and we have a large part, over 50% of our pipeline now is across the world, across Africa, Asia, and MENA. The change that you will see next time is you will start seeing pipeline across Europe, across America. Those are the next frontiers that we will be going into. A big thing we have seen when we are talking to customers is, once one product goes in, they are now talking with us exclusively across other products that we have. We must have sold supply chain finance in the past, but they are now talking to us for other products also. A good way to look at what we are building is break up all our products into two clusters. One is transaction banking cluster, one is the lending lifecycle cluster. At the top you see what Veefin is playing in. Veefin is playing in a $35 billion-$65 billion total addressable market. This total addressable software spend that we can be going after because we are Biden. An interesting thing, if you see, supply chain finance in the transaction banking cluster is the smallest. So our strategy which we had of going after the niche and expanding is playing out exactly the way we had planned. That we went into a niche that people were not focusing on, supply chain finance. We became global leaders in that. We showed ourselves as somebody who can build products for a complex product like supply chain finance, build a reputation out there of not just building a product, but being able to deliver the product, service the product. Therefore, now when we come in with trade finance, cash, corporate internet banking, these are much larger agencies, they are much larger markets. The banks are ready to talk with us because of the pedigree that we built in supply chain finance. This is a multi-year strategy that we have been building on, and that is now paying fruits to what we have been doing. Transitioning to transaction banking, we continue doing 60% of our focus, but 40% being on the non-transaction banking cluster. This is a very, very important takeaway I will leave all of you with, that where we are playing is now with the big boys. India does not have such kind of players. In the last 15 years, globally, there has been no new trade finance or cash management system software vendor who has come in. Mind you, in the last 15 years, nobody has come in, nobody has dared to come in, because these are all large businesses, complex businesses which people have been afraid to get into. We have now come into this segment, and our assumption is that we will be going after the biggies, your Temenos, your FIS, Fiserv, because India deserves to have a player of that stature coming out of India, and these are all multi-billion dollar companies. Something which you also need to understand, what are the economics of enterprise sales? You'll see a lot of companies will be happy to go into the B2C business, okay? People don't enter the enterprise business because this is a business which takes time. How do the economics of enterprise sales work? First thing to remember, high cost of acquisition, a very long sales cycle. People get bored, people get scared, and they leave this business. It takes time, it takes patience. One big differentiator, going back to the leadership team, going back to our sales team that we have, is the ability to talk the language of bankers. This business is a business where if you are able to talk to bankers like bankers and not like technology guys, you will do much better. That's something you have to understand as bankers. The high cost of acquisition is the first thing. Second, these are very sticky businesses. Once you go live with a customer, generally your customers will be with you for long. We have seen the customers will be with you for more than seven years, sometimes 10 years. It's a very low churn business. The cross-sell, upsell is the main thing. Look at the large players, look at the large global players that we are competing with, the FIS, the Fiserv, the Temenos of the world, these product companies, they all have multiple products, and they all rely on taking one product to the bank and then cross-selling and upselling them multiple products. That's what we are doing, and that's what we are seeing. Every time you sell a new product to the same client, your margins, your incremental margins are much higher. We emphasize 70% plus margin whenever we cross-sell to a customer. Because our objective has been very clear when we started investing in these various IPs, that is, grow revenue per customer, grow share of wallet. That is the mantra. Our investment and capitalization policy, just to bring it all together, is, yes, we capitalize as per IFRS, IGAAP, and AS 26 standards. It is a consistent policy. This is exactly the way global SaaS technology companies do reporting, whether it is a Salesforce, whether it is a Temenos, they all report their numbers exactly this way. India does not have any SaaS or too many SaaS players, so the Indian market does not understand it as well. However, these are all global reporting standards when it comes to technology companies. Only reusable IP is capitalized, remember that. Only reusable IP is capitalized, and all the maintenance expenses are expensed out immediately. The reason you do this is that you want to match the revenue which you receive over years with the expense that you are incurring right now over years. That is the idea. That is the reason why we also amortize over 10 years. So that the IP that you are creating will be the IP with which you will be able to generate revenue from that over the years, and therefore, we do a matching concept of matching revenues with expenses. Again, in line with how global SaaS technology companies do reporting. Something on the DSO, so we put standalone and consolidated right next to it, and we are very happy to say that our DSOs are improving. So on an annual basis, our DSOs are improving year on year. From the year before, from our 149 days, we have now come down to 130 days, our DSOs. Okay? This is not just on a standalone basis, even on a consolidated basis, our DSOs are improving. Last year we had 138, and we have come down to 105. Even our receivables, as you see, our trade receivables are also growing year on year. Moving to the final couple of slides. What would I want you to take away with? What are the drivers of decent growth, and what is the durability of the earnings that we see? Yes, we have grown by 108% in our growth, but 90% of the revenue that we are seeing, we have a very clear visibility on that. Okay? We have very clearly transitioning, and we are in the throes of this transition from a single-segment product company into a multi-product platform. It is a platform play, as you see. Put in a product and then go back to it and cross-sell and upsell. Our IP moat, which is there, is nobody does this better than us when it comes to working capital financing and everything on a single chassis. This is something which we continue to hear from banks, both in Singapore and in Germany, where we were last month at FIBE. Everyone wants a single chassis. Nobody has been able to deliver it because all other companies are old companies, all with legacy infrastructure, legacy tech stack. They may say microservices, but it is only at the top layer. Our recurring SaaS revenues and cross-sell engines, that provides a durability. And most important, where I started from, our leadership team, which is so, so experienced, that is what we are hearing again and again, that the leadership team that we have, that is what is creating this huge differentiation. These are leaders who have done businesses at scale, whether in banks or whether in tech companies, building products. What is the outlook that I would like to leave you with? The outlook is, over the next 6 months, again, on a standalone basis, we will grow our revenues year-on-year between 75%-85%. On a full-year basis, our revenues on a standalone basis should be 75%-80% over last year. On a consolidated basis, it should be close to 100%. We will grow 80%-100%. That is number one. So, leave with it. Second, our margins will continue expanding as our IT investments start bearing fruit and IT investments start flattening out. We will continue to do global expansion. We have been talking of global expansion. We are seeing our expansion both on the pipeline side as well as our investments that we are doing in new geographies. We will continue doing that. We will be entering, as in my last call I said, we will soon be entering the U.S. market also. We target to do 15% closure of the $47 million pipeline that we spoke about during this year. So, that gives a clear benchmark that you can hold up to. We are seeing a lot of traction when it comes to the jewel in the crown, which is PSB Xchange. We have been signing deals on PSB Xchange. There is a very strong pipeline. We expect to have between INR 3,000 crore and INR 3,500 crore worth of transactions or approvals on the pipeline by end of the year. That is something which everyone has been looking forward to, and we are happy to say we have a very strong pipeline out there on PSB Xchange. On the efficiencies at the internal level, we are looking at our manpower very, very closely. Where we are seeing opportunities of enhancing our productivity, we are letting go, we are restructuring our people, we are making do with lesser manpower to deliver the same work that we have been delivering. So, we are seeing efficiencies on the manpower side also. So, revenue growth, very, very strong revenue growth, that is what I will leave you with. I am now happy to take any questions that you all have. Looking forward to a lot of questions. We have enough time. Lot of questions. Anuj, over to you. Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and then one on their touchtone phone. If you wish to remove yourself from the question queue, you may press star and then two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Again, to register for a question, please press star and then one. Our first question comes from the line of Akash Jain from Money Curves Analytics. Please go ahead. Yeah. Thank you for such a detailed walkthrough on the presentation. I just want to understand basic stuff. I do not know whether it is quite basic, but I generally look at our half-yearly number ending March, and when I look at our half-yearly number ending September, there is a significant increase in revenues and an even more significant increase in costs. Is there a difference in accounting treatment between the two halves, or it is same accounting treatment, but clearly much more revenue generation in the same accounting treatment? Obviously, we are incurring more cost because of all the IT development we are doing. I am just trying to understand how should I reconcile the two halves? Is it same accounting treatment, or there is a change because of shareholding or accounting treatment? There is no change in the accounting treatment. What has happened is, we have seen the effect of the amalgamation and the acquisition that we have done, and that is what it is playing out. Last half year, the half year of last year, we did not have the benefit of the revenues of the companies that we have acquired. That is what you are seeing. The increase in expenses are also because now we have consolidated all of those companies also. That is the reason. Sorry, so this amalgamation is basically not the scheme you have filed. Is this now based on the scheme you have filed, or this is still based on the acquisitions we have done, but we are obviously taking the full revenues of the acquisitions that we have done over the past months and years? These are only of the acquisition. These are not of the amalgamation. Amalgamation is still pending. These are only acquisition. Yeah, because you used the word amalgamation, that's why I was a bit confused. Yeah. No. This is basically the acquisition that we have done in the last six months. That revenue and cost is getting added, and we have obviously pushed the pedal on cost on IP development. That's why the cost base has gone up even further. Correct. Okay. Yeah. Yeah, I'll get that in the queue. Thank you. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the conference, please limit yourselves to one question each per participant. You may rejoin the queue for follow-up questions. Our next question comes from the line of Anuj Taftari from Amrut Bharat Opportunities Fund. Please go ahead. Yeah. Hi. So, great explanation. Just wanted to understand when we say that from the PSB Xchange, we are going to syndicate debt or financial credit for INR 3,500 crores. What is the sort of earnings that we envision to make in terms of gross revenue? I can give you broad numbers, and these are via public signals. The revenue that we generate from them, net revenues will be 10 bps on the sourcing. There will be a net 20 bps on the technology usage, which some of these banks, the PSBs and the non-PSBs will use. And another 15 basis points on the onboarding. So, in effect, close to 45 basis points is what one can look at earning from this. And these are not just PSBs. I take the opportunity to explain to people that when we say PSB Xchange, it is not just the public sector banks who will be participating. This is open for private sector banks and NBFCs in the country also. And this is not just We have started with supply chain financing, but it will be extended to supply chain finance, trade finance, and any form of working capital finance for the SMEs or the corporates. Got it. Okay. Thank you. Thank you, sir. Okay. Thank you. Our next question comes from the line of Hitendra Pradhan from Maximal Capital. Please go ahead. My first question is related to, again, the PSB Xchange. Can you elaborate a little more, like, what we are doing there? Also on the IP that we are building on the cash management system. If you can elaborate, like, what exactly we are doing and what is our right to win over there? If I got the question right, first question is around PSB Xchange, and second is on cash management, what we are building. Right. PSB Xchange is a platform where banks can, through one single API connection or one set of APIs connecting to the platform, get access to the entire ecosystem on the other side of corporates, fintechs, various B2B marketplaces, so that they do not need to connect to these various platforms individually. That is what the PSB Xchange is all about. It is a tech cum management play that Veefin is playing out there. It is a seven-year exclusive deal that we have, which gives us the opportunity of creating a supreme moat, because we will be connected to all these banks and corporates for the next seven years. It becomes very, very difficult to dislodge us from this space across the working capital cycle. Going to what we are building on the cash management piece is, banks require software for running their cash management business. Cash management comprises their liquidity, their receivables, their virtual account management. All of these are modules which are needed. When you do salary processing or when you are collecting payments from your dealers, all of these, when you are working with a bank, the backend is the cash management system. That is what we are building, and that is what the world has not seen in the last 20 years. No new platform. That is what we have built, and we are finding brilliant traction out here because we are the latest, no legacy systems, latest systems, latest tech. That is the reason why banks are loving us. Thank you. What is the status quo on the cash management side? Like, what are the existing players and- The existing players on cash management, if I give you a couple of names, would be Finastra at a global level. You will have Intellect in India, close that you know of. Okay, sir. Thank you. Thanks. Thank you. Our next question comes from the line of Paras Chheda from Purpleone Vertex Ventures LLP. Please go ahead. Thank you, Rajaji, for your detailed explanations and wish you a strong result. Good afternoon. I just wanted to understand a little bit on the console thing. Our standalone numbers, the EBITDA margins are powerful, the PAT margin is also powerful. But for the entities that have been acquired, the EBITDA margin seems to be in the 10% range, if I am broadly working, and the PAT margin is also quite low, about 2.5% all. I mean, just trying to understand, how do you look at the EBITDA and the PAT margin on the consolidated basis for the full year FY 2026, if I am missing something on that? And how do you look at the potential projections for FY 2027 as well on the revenue growth and the margin front? That is question one. Okay. To answer the EBITDA, when we have acquired these companies, as you know, one of the companies or one of the set of companies that we have are the services-led. So, product company and a service company have very different EBITDA margins and multiples. Service companies will have much lower EBITDA, and that is the reason what you are seeing is because of the amalgamation or consolidation of our financials, our EBITDA percentage drops, and that will continue. Because as long as our services business has a larger share in the revenue of the consolidated financials, you will see a lower margin out of that. However, with our IP that we are building on the product side, you will soon start seeing a difference in the proportion of the product revenue and the service revenue at a consolidated level. That's when you start seeing a higher EBITDA because it's just a mathematical expression that your product companies will give you much higher EBITDA, and you have seen what kind of EBITDA product companies can give. Service companies will continue giving you lower EBITDA. Thank you, Shailesh. Yeah. I mean, just want to add one point. Parasji, there is some calculation error. Our consolidated PAT margin before NCI is 7% and post NCI 6.5%, and our EBITDA margins are 18% on consolidated. Just clarifying. Yeah. No, see, that is- He was not talking about the consolidated. He's talking of the other acquired businesses. Yeah. I was talking on the acquired entities, specifically on that. Yeah. So, you are right. So on a full year basis, what kind of blended EBITDA margins can we expect on a stabilized basis between FY 2026 or 2027, when your product margins or revenue also continue to add here? I will leave that question to Payal. Payal, if you are able to answer that from. Because we have some expectation of your product revenues also, I am saying. So broadly, what kind of EBITDA margins can we expect? Payal, if you can just take this question in terms of next year EBITDA margins at a consolidated level. At a consolidated level, our next year we expect an EBITDA margin of 25%. Okay. The contribution for the product improves quite a bit, significantly. Yeah. That's the reason. There are two things which are happening, Parasji. One, the IP that we have built on the product side does go up, and then PSB Xchange actually will start kicking in from next year in a big way. Right. Just last point from my end. You have given a guidance for FY 2026. For FY 2027, I mean, broad brush, any range guidance that can be sort of- I could give you for the next 5 years, but Parasji, I am not supposed to. But I mean, but any expectation that you may think could- We will. The expectation everyone in this market should have from us is that if you are seeing our growth here on a standalone basis, that you are seeing a 70%-80% run rate growth, you should be looking at similar numbers. Okay. Understood. Okay. Thank you. Thank you. Thank you. Our next question comes from the line of Nishita Sankhesha from Sapphire Capital. Please go ahead. Hello. My question is on EBITDA margin only. I just need some clarification. You mentioned that as the IP that we have built on the product side comes in, we should see higher EBITDA margins. When do we see that happening, and what will be the sustainable EBITDA margin? Because currently in H1 FY26, we saw that the EBITDA margin was at 18% compared to 31% in H2 FY25. I just wanted to understand that. Two different points here. When you are looking at H1 EBITDA margin of 18% versus last year, you have to remember that the revenues were much lower. The actual EBITDA is higher. However, the actual EBITDA is higher because we have also amalgamated or we have consolidated the numbers from our service business also, which were not there last year. Therefore, it is not a like-to-like comparison of margins. The second point is, yes, our EBITDA margins will continue improving because of the product, and on a steady-state basis, which we will hit, you should be expecting a 50% EBITDA margin on the product side of the business. When you Others, if you can please go on mute. People who are not talking, please go on mute. When you add the product margins and the service margins on a blended basis, we should be looking at 30-35 on a long-term basis. Sorry to interrupt. Nishita ma'am, there is a lot of background noise coming from your line. If you can self-mute the line when the management is answering the question, please. Yes, sure. My bad. Just confirmation on long-term basis, on a blended basis, we will have 20%-25% of EBITDA margin, right? 30%-35%. Okay, 30%-35%. Understood. You mentioned that 25% margin we are expecting in FY 2027. When do we see us reaching the 30%-35% level? That's again you're asking for a long-term view, but I would say over the next three years, three to four years is when you should be expecting that. Okay, understood. Thank you. Thank you. Thank you. Our next question comes from the line of Mahavir from Zenflow. Please go ahead. Sir, thank you very much for this call. To a certain extent, I have understood the products that we have at Veefin. But in terms of, say, a layman looking at Veefin, what kind of problems does Veefin solve, and what is the TAM size? If you can just elaborate on that, it will give me more clarity, sir. Thank you. Okay. I will take my slide deck back to the TAM slide. Okay? This TAM slide, by the way, does not include PSB Xchange and the work or the response that we are finding from various countries. We have six countries which have reached out to us for them to build the same PSB Xchange in those countries. Again, we are the only ones dealing with the tech and the know-how for building that PSB Xchange kind of a platform in those countries. We become an obvious choice. The problem that we are solving- My question here is more about use cases, sir. Can you elaborate on the- I was just saying that. Sorry. The problem that we are solving for banks is, whenever a bank wants to do a supply chain finance, they have corporates, they have suppliers, they have dealers. They require financing, they require payments, they require ACs, they require DCs. All of us who are in the business require that. They require to access the bank to request for financing, request for services. SMEs require to go to the bank for requesting for financing or across various products. These are all things which SMEs and corporates and retail customers do with the bank. What powers this? There is technology in the bank which is powering it. Somebody has to provide that technology. That is what Veefin is solving for. The use case is very simple. Banks have to run. Till the time banks remain, we are not doing anything rocket science. We are not going and building something new and trying to go and find a new customer and explain to them why they need to take us. Banks are using these kind of products right now. The products may be substandard, may be decent, may be excellent. Wherever the first two are there, banks are looking for replacement, and that is where we are going in. We have to replace products which do not work the way banks are expecting them to work, or their players are getting into the business, new age digital banks are coming in, or banks are getting into the trade finance business, supply chain finance business. They need a new system. That is where they come to Veefin. Okay. Okay, sir. Got it. Sir, also, when are we expecting the deal merger to happen? The structure to finalize, and when are we expecting the consolidated revenue and PAT to be shown on our balance sheet? Sir, we are already seeing concern, but I think your question is, when are we seeing the amalgamation, and when we will be able to see it on a single? The amalgamation slide, if you remember, we are expecting by Q2, Q3 of FY 2027. We have already started the work. We have already filed it with BSE and SEBI. We are awaiting the approval. Once the approval comes in, then there is a shareholder approval and the process. Then the next thing, we apply to NCLT and wait for the approval. The moment NCLT gives us the approval, we are then ready. Okay. Got it. Thank you. Thanks. Thank you. Our next question comes from the line of Anshul Saigal from Saigal Capital Advisors. Please go ahead. Hello. Am I audible? Yes. My question is, what is the benefit that we have got from the capital that we have raised? How has that opened opportunities for us? One is quite obvious that we have been able to acquire companies, but on our core business, how does capital help? Big time. The IP investment that we are doing would not have been possible if we had not raised capital. The fact, as I said, why do people not enter the enterprise business? Because these are long gestation period businesses. It takes years to build a product. Our expertise, our execution has been spot on. Because of this experienced team that we have, because of the fact that we have next to nil attrition, voluntary attrition in our team, we have been able to build products in a very, very short period of time. When people see us, I mean, even in Singapore, when I met customers, the banks, they were surprised that how is it that a company which is so young has built such a large platform of various products. This was only possible because an investor along the line helped us both in the subsidiaries by bringing in capital in the subsidiaries for us to build these various products, as well as in the parent company to allow us to continue building these products and invest in this self-sustaining IP. Right. As you yourself mentioned, there are many companies which provide products to banking and finance companies. Some are excellent, some are average, some are below average, and we are speaking to the latter two. For a company which is so recent in a business that is so critical for banks, why would they come to you itself? Why would they not go to the established players who are excellent and large? Is it because you can reach them better? What is the reason? I think it's a million-dollar question. The answer to that is, we did not become Most of you have seen us today from point that, okay, Newgenit will do so much. But we were not like this always. If you had seen us in our infancy, it was difficult even for us to go in and sell to banks, because banks would always say, "Where have you done this before? Who are your reference clients? Which is the large bank which is going to stand and vouch for you?" Because we had done We are not a one-year-old company. Because we have been in the business long enough, because we have delivered on supply chain finance. As you remember, I said, we picked up a niche. That's been strategy. We could have gone adrift if our strategy would have been pick up a trade finance or cash management. When we started, we would not have been here. We would have failed. We would have failed because there were much larger, better entrants at that point in time. Because we picked up supply chain finance, which was a very complex product, nobody was looking at it, and then we made a name for ourselves out there. Along the line, we built a very, very strong sales engine. Companies fail in the enterprise tech business not because they just can't build a product. They also because they can't sell. Many players, they build a product and can sell only in their home geography. Our experience and our track record of being able to open new geographies time and again, not just one country, time and again, going into multiple countries, being able to convince customers out there, convince, sell, picking up one market at a time, landing out there, having a land-and-spread strategy. These are all strategic calls that we have taken, and we have been able to stick to it through thick and thin. That is the reason why these banks are now looking at us and saying, "Okay, you have not done cash, not done trade, but I have clients where I have delivered similar-stage products, which is supply chain finance, and those banks are ready to come and vouch for us to say what a great team we have, which can not only build a robust product, but can also service the product post-delivery." That is what has helped us, our track record. The sales engine that you speak of, is the sales team, or is that an online or some sort of a differentiated model? No, it goes back to culture, that as a company, we have a very, very different culture than most other organizations. I have spoken about culture multiple times. People may think that I am an HR guy, but culture is the most important thing in our company. We invest a lot in that. Because of that and the strategy that we have, our sales engine is also very different. We pick up a market, go after the market for years together. We do not shy away from investing in the market. This year itself, we must have done 40 events globally. 40 events globally. We have spent that money, built the credibility out there, engaged customers. Our sales team is very, very well-conversant with our products. They are able to talk the language of bankers. So these are differentiated teams which we have built over time. How many employees do we have in all, and how many sales employees do we have? On the product side, we have close to 600 across the group. We have another around 900 people on the services side of the business. On the sales team, only on the product side, we have between 35 and 40 people. Those are in local geographies, or they are stationed at the head office? It is a mix. It is a mix that we have in local geographies and in the head office, multiple, and we travel a lot. All right. These new lines of business that we have entered, outside of supply chain finance, have we sold to existing customers only, or we have added new customers in these lines of business? New, new. Our pipeline, which you see, there was a fair mix for the pipeline between existing customers and new customers. And the new customers are much larger in size. Much, much larger. All right. I think I will get back in the queue. Thank you very much. Thank you. Thank you. Our next question comes from the line of Arnab Bhattacharjee, an investor. Please go ahead. Hi, Rajarshi. Am I audible? Yes, you are. I wanted to understand one thing. First of all, this is a sort of statement. Tell me if I am right or wrong. If I look at the intangible assets and the goodwill, they have gone up. Is that the reason? Is that behind that IP, and amortization of that IP? Is that the reason why we see higher cost, or is there something more I am missing? No, for the intangible, it is because of that. You are right. Intangibles are because of the IP investment, but the goodwill is because of the acquisition. Okay. This is a recurring cost for quite some time, right? Because we will be amortizing this IP expense for quite some time. Excuse me. The IP expenses are going to be amortized in line with the revenues. It is a daily average method that we do, and it is a standard amortization schedule. As we continue earning from the IP, we continue amortizing accordingly. Okay. My next question on the business. In one of the interviews, I wanted to understand. Initially when I started off, I thought you were sort of platform business. What I understood from an interview that it is not. In fact, I believe you have multiple deployments in multiple clouds because especially, like for PSB Alliance, I think it is their own cloud, right? Is that understanding correct or am I wrong? It is the platform business that continues. It does not matter whether it is on our managed cloud, it is a client-managed cloud, or it is on-prem. It does not matter. At the end of the day, we are a product company. The key difference, the way you should look at a product company is whether the product that we have built, is it something that we can just then ship, or do I have to go to the next client and then do a bunch of customization? That is the lens that you should look at a company from, rather than just being a platform or a product. Okay. My question is that even if Okay, I understand. Product development, it is fine. What about DevOps? Your DevOps size will keep increasing as and when you keep deploying more, right? Because someone will have to look after the cloud, right? Or am I wrong? Minister, where we manage the infrastructure assets, yes, the DevOps will increase. However, the DevOps from an overall cost structure is a very, very small percentage compared to the overall cost that we see. Okay. Gotcha. Where are we with respect to that core banking piece, the missing piece of our puzzle? What do you think about that? When are we getting there? That is a large piece of the puzzle, and I hold on. I will not say anything more on that. Let us wait and watch. I would not commit anything on the digital core banking thing. PSB Alliance, congratulations on getting that platform started. I believe that still that volume, it is about to get traction yet, right? That was just the beginning, right? Absolutely. I think we were on platform. Okay. Awesome. Absolutely great set of numbers, Rajarathna. This is a phenomenal performance looking forward. I will keep asking more business questions, but that is it from my side. Thank you. All the best. Thank you. Thank you. A reminder to all the participants, please restrict yourselves to two questions each per participant, you can rejoin the queue for follow-up questions. Our next question comes from the line of Uday Chandak, an investor. Please go ahead. Hello, Raja Debnath. Yes. Yeah. Congratulations, sir, for the great numbers. Amazing presentation. Actually, I have two questions. First one is related to pricing. Like, because now we have multiple product lines, multiple platforms, like trade finance, cash management. Then we are also exploring internet banking, loan management, and existing PSB Xchange. So how does our SaaS pricing work across all these product lines? If you can share what would be the metrics to evaluate on this different segment, it would be better. My second question would be, like, because now, when I see Veefin started with the vision, Think SME, Think Prosperity. Then last year, it was Think Working Capital, Think Different. Now, we have a vision, Think Digital Banking, Think Different. We are expanding our TAM. But at this point, now I want to highlight, because the new products which we are exploring, it has multiple, it has a severe competition, Finastra, Intellect, and all big companies. What is your answer? What typically kills the new core banking entrants, right? What comes to my mind, like, higher customization cost, long sales cycle, implementation failure, incumbent lock-in, or talent attrition. If I had to ask you, how does Veefin just inward each to protect its moat, or what would be your answer? Because it's new product lines we are exploring, and I know we have been IBSi, FPS industry leader for 2 years, and that's why we are having this moat in supply chain finance. But in terms of new product lines, we are nowhere near to the other players at that stage. Looking forward for your review. Long question. Let me try to remember what was the first. Let me take the second one, because if I remember the first question, I'll answer that. What is the moat? We are a new player, completely agree. But the fact that we are a new player can be seen as a positive also. The positive is, the technology that we are using right now is the latest technology. The architecture that we're using is the latest architecture. The functionality that we are building is the latest functionality. We are bridging the gap between the usage of personal use of all our clients, what they're using, for example, using GenAI. How they're using in the personal life, we're bringing that into your usage on the corporate side also, which none of the platforms have. That is the reason why banks want to talk with us. We are much lighter in that sense. We are really out of the box. Our time is going to be lower. That is what is exciting the bank. As I go back to this, banks are looking at, banks are fed up with the old legacy players. Yes, they are big. They are very, very big. Because they are big, they do not have the ability of pivoting and moving at the pace that we can move. They are being large is the reason they are actually big. That is the reason why they cannot move at the pace that we can move. That is the reason why banks who are doing more architectural talks. Global top banks and the banks that we are talking with right now, both in Singapore and what we are talking in Germany, they are all talking in terms of architecture. That is where we score much beyond what these other incumbent players have. That is the story on why these players look at us, not just because we have better functionality, not just because we will be able to deliver things better, faster for them, but because we are a zero-legacy system. That is what we used to say. We are a zero-legacy system for these banks. Now, let me try to think. It is a memory game. What was the first question that you had asked? It was related to SaaS pricing, sir. Related to? SaaS pricing. We have multiple product lines. Okay, pricing model. The pricing model that we have in our quiver is all around SaaS-based pricing, value-added pricing. It could be pricing based on transactions, it could be pricing based on the AMCs. What we have seen a lot now is annual recurring. The market also is moving away from the old school of upfront big licenses and the AMCs. Even the large banks that we are talking with right now, they are all talking about what can be a recurring fee. They are very fine that we can grow with them as they grow. So, grow with the bank, pay-as-you-grow model. I said pay-as-you-grow rather than pay-as-you-go model is what we are seeing happening out there in the market. Okay. Uday sir, does that answer your question? Sir, it will be applicable on, like, more on core banking products also? Sorry to interrupt you. No, no, all products. Thank you. Our next question comes from the line of Ashu Raj, an investor. Please go ahead. Yeah, hi. Thank you and congrats. Great to see the progress and the growth. The first question is, even if it's not possible to declare the business quarterly, it would be really great for investors if we can have some update from the company in a one-page, two-page document showing the quarterly progress. That will really help a lot. The second question is, first, on this, is it possible to do that on a quarterly basis? Second is there any plan to increase the stake in the acquisitions, like increase the stake in Epikindifi or other? Is there any plan on that line, even in short term, medium, or long term? So, the first thing in terms of quarterly, yes, from December onwards, we will start showing our quarterly results and start doing that. Because as you know, next year by July 26th, we will be eligible to move to the main board. So, from a compliance perspective, we anyway have to start doing that, and we have geared ourselves in to move towards that direction. That is point number one. Second, in terms of taking over a higher stake in the acquired companies, yes, that is a part of the plan that we have. So, those were the agreement that we had in place when we acquired these companies. Okay, great. Thank you. I will get back in the queue. I have more questions, but that will be great. Yeah. Thank you. Our next question comes from the line of Mahesh, an investor. Please go ahead. Hello? Yeah, Dharmesh. Hi. I just want to understand that Veefin is a product company, and then we have done a lot of service-based company acquisitions. What is the strategy behind it? Whatever the IPO funds were raised for the Veefin, was it used to acquire those service companies, or how it is? Taking the first or second question, we have not used any IPO funds or preferential funds till date on acquiring any companies. All the acquisitions which have happened, they have happened through raising that we had done in the subsidiary. Point to be noted. No Veefin money was used to acquire the companies, no equity raise that we have done. Yeah. That is the question. What was the other question that you had asked for? What kind of strategy? See, Veefin being a product company, what are the strategies behind to acquire a service-based company? The reason that we had acquired the service company is, we have a lot of requirements from our clients on the service side also. We were letting that lay on the table. Plus, the service side of the business also then becomes a way of opening doors into multiple corporates. Now, when you look at the PSB Xchange, where we are also connecting corporates on the site, that is where you will see the strategy come in place. Earlier the strategy was not clearly visible to the market, but now when you see that on one side we are going after the banks, on the other side we have corporates also coming in, that becomes a great engine for us of getting corporates also on the other side. The business corporates, as well as they are able to provide services to our banking partners who need these services. Is it fair to say that it is more of a strategic acquisition to support your clientele on a service-based requirement, and also the same time, all the acquisition has happened where zero money has been used from the Veefin fundraise, but all the Veefin investors will get the benefit of the service-based acquired company? Absolutely right. Absolutely. That is exactly the case. Okay. Okay. Okay. Thank you for the clarity. Thank you. Thank you. Ladies and gentlemen, we will take that as our last question for today. I would now like to hand the conference over to the management for closing comments. Thanks all of you for joining. I would just leave you with the closing thought that Veefin is geared towards building India's global BFSI product powerhouse. This leadership team that you've seen here, the leadership team that I showed you right upfront, that is the team which will deliver this for you. Thank you. Thanks for joining. Onwards to the next call. Thank you. Thank you. On behalf of Veefin Solutions Limited, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines. Thank you.