Welcome everybody to our fifth earnings call after going public. This will be the month where I think being a public company will probably complete in a year. That will happen on November 22nd. First of all, thank you so much for really supporting us and, you know, thank you so much to all the shareholders for really supporting us and getting us to this place and having the faith and belief in us that we would execute well. Yeah. Let's begin and I will take you through the earnings presentation of the second quarter FY 2026. Starting off with a snapshot of numbers, we did a total income which includes the interest income and everything, about INR 167 crore in the last quarter which is a 61% growth on a year-on-year basis. Last year the same number was INR 104 crore.
On an EBITDA basis, we did INR 37 crore approximately, which is 143% growth on a year-on-year basis. Last year the same number was roughly INR 15 crore. From INR 15 crore this has moved to close to INR 37 crore. Subsequently the profit after tax number is INR 29.2 crore this year. Last year, obviously because of multiple exceptional items, the number was negative of INR 270 crore. That is a strong turnaround in the whole business. Relevant to this because most of the business is determined by the key KPI is moving upwards. The whole transacting customer base for us has roughly touched about close to 800,000 customers which is a growth of roughly about 13% on a year-on-year basis. Metric which determines usage of our services more deeply by our users.
Users who use more than equal to services is roughly close to 400,000 users, which is a 21% growth on a year-on-year basis. Payments being one of the critical parts components of the revenue for the company. We report this separately. We did close to about INR 6,800 crore of GTV of payments, which is a 29% growth on a year-on-year basis, r ight?
Broadly summarizing this with a headline that like as we've always spoken in the last five earnings calls, we continue to grow leveraging the tailwinds of the industry, leveraging the strong product portfolio which we have built, leveraging the new product portfolio which we keep experimenting and continue to launch. While doing that, we deliver profitability on a consistent basis because the profitability comes from the core businesses which have matured over the course of the years and continue to compound on revenue, continue to compound on profitability and newer businesses. We continue to keep reinvesting our profits and keep scaling them. As always for the benefit of new shareholders joining the call, we take few minutes to repeat what our strategy is. The good part about the strategy is that it's been consistent over the last six, seven years.
We obviously iterated. Company started in 2015, we iterated through our way and probably landed upon this strategy maybe by 2018, 2019. We have been doing the same thing consistently the last seven, eight years. This has delivered us results. Very simply put, three parts to the strategy we create. We innovate for our customer. We are in this industry to really reimagine everything, how it works in the transportation world. We keep launching offerings for our customers. Our customer centrally being the truck operator. A truck operator typically, an average three to five truck ownership is what India has. Keeping that in mind, we build products. These products, because everything is digital, are launched on our platform. By launching newer and newer products on our platform, platform keeps getting stronger and stronger. Customers use this platform repeatedly and more deeply.
The nature of our customer is largely middle aged, uneducated, and hence distribution has to be unique. That is something which is very unique to our strategy, and we continue to deepen and deepen on these. O fferings a s you know, our flagship offerings of tolling and vehicle tracking are our core products, which also drive the majority of the revenue and profits today, with continuously launching adjacencies to these products. Be it fuel sensor, be it fuel payments, and leveraging all of this data, consumer insights to launch loads, to launch vehicle finance as we continue to build, and obviously many such offerings are under the hood which we continue to experiment, continue to launch. By virtue of this, our platform continues to get strengthened. As you can see, the minutes a customer uses the app is probably, in the B2B world, one of the highest.
For us, how we use the browser, how we use a social media app, a trucker for his business uses this app. We have close to 800,000 transacting customers which is, as you know, near as about 25% of India's truck operators. Our app is very relevant for a large capacity truck user and for a long distance truck user, and hence relevant market share may be much higher. Our products, long term, will be relevant for everybody. That is why we keep measuring this market share. Year- after- year, b ecause we launch newer products, we are becoming more and more relevant for our users t he usage continues to deepen. O n the distribution, w e are present everywhere. It is like our users need to be explained what our product value proposition is, and their trust with digital is not that high.
We basically build trust with offline network which explains and onboards our customers. There is a 10,000 people touchpoint network comprising full-time workforce engaged by us channel partners, variableized workforce, tele channel, our technicians who basically install, repair a GPS device or a fuel sensor. Everything put together, we have a 10,000 people feet on street network through which we touch, service our customers and obviously present very widely. Probably this presence is now closer to 90% of the districts all across the country. That is what we do and this is a strategy which is really compounding and delivering the results which you are seeing us deliver. Coming to the key KPIs of the business, which is largely all the key KPIs are trending in the way they have been trending over the last four-five quarters.
Be it monthly transacting truck operators, be it people using more than two services, time spent on the app, the GTV of payments, the payment transactions. Co ming down to the revenue level, revenue from operations, removing the interest income from the total income has grown about 53% on a year-on-year basis from last year INR 99 crore to this year INR 151 crore. Net revenues from this have grown by about close to 38%, INR 99 crore to INR 136 crore, t his particular quarter. C ontribution margin has grown slightly higher, 41% on a year-on-year basis. On an Adjusted EBITDA basis, which basically does not include the ESOP cost, has grown from INR 19 crore to INR 43 crore, which is a 123% on a year-on-year basis. Most of these numbers would reflect the same trend on a half-year basis of this year.
Every six months we give a half year picture. Reading out some of the key things over there. On an Adjusted EBITDA basis we have already clocked close to INR 90 crore in this particular half year of the full financial year. The same number last year on a half year basis was INR 31 crore, which is close to a 190% growth on a half year basis. Similar narration would be for the remaining key KPIs. Taking these results and giving a little bit of voiceover on what is really happening, r ight?
First, narration more on the overall revenue part as a company. On the total income we have grown about 61% on a year-on-year basis and on a net revenue basis 38%. If we split this number between the core business and the new businesses, the core businesses ended up growing 37% on a net revenue basis, on overall revenue basis, on a year-on-year basis and on a sequential basis, 3%. As you all know, July, August, September is a rainy season and it coincides with a little bit of trough in the overall trucking industry. Every industry which is like, let's say, has primary metrics from a trucking perspective, be it sales of trucks, be it loans and trucks, et cetera. typically has a bit of a low season quarter and starts picking up from the September, October month with the festivities coming in.
Despite a low season quarter, on a sequential basis we were able to do a 3% growth in revenue. On the overall core business from a year-on-year basis, we have grown at about 37% this year. Important to note is that even in the core businesses we have invested higher. As you can see at a company level in this quarter, year-on-year our costs have grown up by roughly about 18% and on a sequential basis we have grown cost by about roughly INR 8 crore. Some part of these costs, not majority, have actually gone into the sales and distribution for the core business as well. Obviously, as you know, in our strategy, even in the core business we have got a lot of adjacencies which we invest into and grow. For a lot of these activation we need to really reinvest back.
As you can see, one of the signs there, fuel sensor, which was one of the new launches probably about two, three quarters back, has already gotten bolstered as part of its overall sales portfolio. In the last quarter on a sequential basis, we've been able to grow about 55% on the fuel sensor. That's the narration on the core businesses. Coming to growth businesses, as you all are aware that under growth businesses today, two relevant businesses for us are superloads business and the vehicle finance business. Both of them have made good progress in the last quarter. On an overall basis, the overall revenues on growth business have grown by roughly about 226% on a sequential basis, have grown by, what, 19%. Largely, the gross revenue growth is because of the superloads business.
As you are all aware, today we are present in four hubs, largely materially present only in two hubs. The other two hubs were largely for the return loads in a Superloads business. From there, from the four hubs, over the next course of six months we plan to open 10 new hubs and take this number in the range of 14-15 hubs over the course of the next six months. That is where I would like to say that the update is that the whole playbook building, probably we are in the zone of 60%. I think we have learned new things. We have hit a few milestones which were internally important for us to test ourselves to know whether we really know how to scale this business.
Happy to share that some of those experiments have gone well, some of those scale milestones have got hit in some of these critical hubs and we plan to sow the seeds because whenever you typically launch a new hub, it has its own ramping up timeline. We have decided that we will expand to 10 new cities over the course of the next six months and ramp them up while we continue to deepen in these two hubs where we are building our playbook. That is a narrative on overall top line and overall growth moving into profitability. As I have narrated, we have seen a growth of 123% on a year-on-year basis in Adjusted EBITDA growing from INR 19 crore last year, same quarter to this year, INR 43 crore.
That's a 123% growth and as a percentage of net revenue, that's a 19%-31% kind of a number on a year-on-year basis. Largely the story remains same. This growth in EBITDA is led by delivery of operating leverage. We are in a business where most of our revenue comes from, most of the comes from line items which are recurring in nature and our customer retention is very strong and has a very high contribution margin. If you look at on a quarter-on-quarter basis the operating leverage is 65% because of the reinvestment in business which we are doing. If you look at on a half-year to half-year number because last quarter we have presented the operating leverage of 85%. If you look at half-year to half-year, the number still stays at 77%.
From an operating leverage perspective, giving you a bit of narration on EBITDA on a sequential basis, if you compare Q1 2026 to Q2 2026, there is a small shrinkage in EBITDA. If we would not have intensely driven investments in our newer businesses and our core businesses, obviously this EBITDA sequentially would have increased. Primarily, roughly anywhere in the range of INR 20,000,000-INR 30,000,000 of investments have increased at a quarter level because of doubling down on Superloads and because of expansion of sales and marketing efforts in the core businesses. Another INR 10,000,000-INR 20,000,000 each in the investments driven by the subsegments of the core businesses, namely fuel sensor and AI, ASGPS growth, and obviously the annual salary increments as they happen in the regular course. There are four line items which typically materially have led to the small reduction f rom a sequential EBITDA perspective.
That brings me to giving you a snapshot. On the PL basis, overall income in this quarter INR 167 crores as I narrated, if you remove the interest income the number flows down to INR 150-151 crores. Overall net revenues INR 136 crores which is a growth of 37%-38% on a year-on-year basis. If you remove the direct cost, direct cost largely similar on a year-on-year basis you get the contribution margin and then total expenses. If you see on a year-on-year basis this is probably the first quarter after going public we have let's say probably loudly invested. That's why you see on a year-on-year basis it's roughly about 20% growth, growth of INR 71 crores to INR 84 crores on an overall expense basis.
On a sequential quarter basis it has moved from INR 7,576 crore to INR 84 crore from a total expenses basis. The same numbers largely hold good at a half year basis. If you see, revenue growth is basically 55% on a year-on-year basis. Net revenue growth is 40% on a year-on-year basis. On a half year Adjusted EBITDA is inr 90 crore from last year, INR 31 crore, which is a 190% growth on a year-on-year basis. Removing the ESOP expenses, coming to EBITDA, last year EBITDA was INR 15 crore. This year EBITDA is INR 37 crore, which is roughly about 143% growth on a year-on-year basis to 29% growth on a half year basis from INR 23 crore to INR 77 crore. Commensurately, even the PATs, PATs, not comparable because of a lot of one-time items at this point in time.
Also want the shareholders to note that EBITDA in our business largely mimics the cash flow. If you look in the annexures, the overall cash flow of the company in the first half of this year is INR 130 crores, which is far higher than the Adjusted EBITDA of INR 90 crores. INR 90 crores is the Adjusted EBITDA, which generally directly moves into cash flow. Plus, because our revenue is amortized largely, there is a deferred revenue element of INR 10 crores, which shows up in cash flow. That is a real cash flow of INR 100 crores. We had a one-time working capital rollback in our other part of the businesses, which contributed to INR 30 crores in increase in cash flow. That is why you see the overall INR 130 crores. As I have been guiding, Adjusted EBITDA typically equals cash flow, a little bit goes higher because of the growth in the business.
Deferred revenue comes into the cash flow but does not come into revenue. M oving forward, g iving you, let's say, a broader view of probably the last two and a half years. As you can see, we continue to consistently compound in profitability, moving from Q1 2024 of negative INR 11 crore to this quarter of INR 43 crore, which is basically a huge turnaround over the course of two years. If you look at the same numbers on a H1 2024 to H1 2025 basis to H1 2026 basis, again a huge turnaround in terms of numbers. Again reiterating, if you look at the H1 2025 Adjusted EBITDA of INR 31 crore moving to INR 90 crore, that is a growth of INR 59 crore in Adjusted EBITDA. At the same timeline, the growth in revenue was INR 77 crore. That is a 77% delivery of operating leverage.
Our strong track record of delivering profitability, delivering operating leverage and consistent growth in revenue continues. We'll do our hard work and hope God helps us keep growing that consistently and keep luck by our side as we keep moving forward. Summarizing our strategy, I'll take this point to reinforce on our strategy of what we are trying to do. As all of you know, our core businesses deliver more than majority of the profits, more than 100% of our profits for us and tolling and vehicle tracking have been the leading vectors of our revenue base. They've been silently being added to by the fuel cards business and the ASGPS business, which is largely a mandatory business in multiple states, which basically has helped us compound on revenue stronger and by launching new verticals like fuel sensor.
Obviously there are many experiments under the hood which we keep doing which will keep becoming core part of the revenues. That is our strategy in core businesses, that we will keep innovating in existencies which will materially have the same revenue model, like be it a payments revenue model, be it a telematics revenue model, and which will materially be using the same sales and distribution workforce to really leapfrog in revenues. That part will keep growing. There again, very key focus tolling. By far the market leaders, like our market share is inching very close to 50% on tolling. We'll continue to compound on tolling. As you saw our payments GTV numbers, and if you compare that relevant to the NETC numbers, right, we've done far better than the overall industry averages.
Our focus there is to keep sharpening our axe, keep making material investments, and keep leveraging the tailwinds and keep growing consistently. There, one of the important things we have done is that probably our paybacks, blended paybacks in core businesses, was as aggressive as seven-eight months. Now, we have continued to invest back and see that even if this payback shifts to nine, 10 months, we are okay with that, but we have to keep doubling down our market share and keep growing in that direction, right? That is the approach in core businesses where we will compound on revenues, which will help us compound on profitability because of operating leverage, and not be too very, very, very, very profit focused. Like, you know, because the business wanted to deliver profits, but keep expanding market shares. That will be the focus ahead.
As you've seen us in the last two quarters, we will keep doing that moving into the growth businesses. Growth businesses is where again namely on the loads there are two lines of businesses. Classifieds, which has a material market share on loads, has grown like 65%-70% on a year-on-year basis for us. That has led us to, you know, the birth of superloads, which is essentially the transition of the classifieds business model into a transaction business model of superloads. Right? Superloads, as I gave a narration, we believe that we have got material evidence in terms of the playbook building and we are really going aggressive on the superloads side, right?
While the other businesses, because classifieds has found its own sweet spot, continues to grow all across the country, continues to digitize loads, continues to make the whole, I would say, playground ready for super loads to really enter into these markets in an easy basis. Vehicle finance, again, partner led, calibrated growth. Because we are dependent on partners. Partners have various strategies of looking at growth in these businesses. We work with them to grow their loan book. We are an origination tool on a majority basis. On growth businesses, as always maintained, because we are as a company with thick balance sheet, we are a very young company.
Our journey in really digitizing trucking and building the future of Indian trucking has just started and probably line verticals which are of very high relevance and change customers' life have really not yet got built out and we are in the our endeavor in growth businesses is that. We will always be keeping a very strong aggressive investment outlook in the growth businesses. Summarizing, while growth businesses will continue to compound in profitability, we will ramp up new investments in the growth businesses and continue to really stay through our long-term vision of building the whole digital version of freight which is needed to really debottle logistics and really make trucking very efficient and predictable for the country. With that I think we will pause and open the floor for questions.
Thanks. Thanks Rajesh for the update. We'll open for questions now. Humble request, please restrict yourself to two questions and come back in the queue if you have any more. The first question is from the line of Abhisek. Abhisek, I'm adding you to the screen. Please unmute yourself and go ahead with your question. Please Abhisek, please unmute yourself. Yeah, please, please go ahead with your question.
Am I audible?
Yes, we can hear you Abhisek now.
Yeah, like some of our larger fleet management system competitors that are there in the U.S., like Samsara, they are integrating AI in their offerings. Like are we looking forward into such a possibility in our future? I wanted to know your comments on that.
Yeah, thank you for your question. So basically, you know, the most important, I mean the easy answer to this is yes because at least our view of AI is that it will largely be synonymous to electricity because anything you do, you want that to be more intelligent, less manually dependent. You would essentially in the long term embed AI in almost virtually every product offerings which we have. Today if you're asking me whether application of AI we use across all our product offerings, answer is very much yes. Now helping you understand like in terms of products in Samsara versus products, what we have.
If you look at the whole suite of products of Samsara, they start from basic vehicle tracking, which they call as ELD, to the advanced GPS devices, to dash cams, to various different sensors for monitoring industrial applications. They have a very wide range of products. Now, if you look at the same context in the Indian market, the entire go to market in telematics has been more price dependent, right? For a product which on an average is priced between $20-$100 per month for a GPS device in the U.S. markets and the European markets, in India, the right product market fit for us happened only at like $2.5, which is like INR 200 plus plus is what we can make from our customers, right? That's point number one. Point number two.
Hence in India we've been largely successful in low spec, like very thin use case kind of products, right? Point number two in terms of, let's say the places where AI is much more useful and where you can really create a difference is basically in the area of video analytics in the dash cam sector. That particular product for us still is in the experimentation phase. We're still figuring out the product market fit, figuring out the utility, figuring out the price points, figuring out how to create this at a price point which these customers would love. What I would say is that, let's say now if you are asking me where are we using, we are using this in probably the fuel sensor product to be able to really show accurately the levels of fuel, clean the whole data, et cetera.
We use AI a lot in our superloads business. We use AI a lot in our classifieds business to be able to show the right load to the customer in terms of the ranking of the load when he's looking at it, to the right repositioning of the asset for him in terms of where he has to go. Those are the problem statements. We are using AI today.
Okay. Okay. Do you have any data as to what is our market share in the loads business as of now?
Yeah. So market share in the loads business can be measured in two ways. One is digitized loads. What is a percentage which we drive with reasonable confidence. I think in India on a digitized loads platform I think we are by far by a big margin, the biggest. So I think there our market share probably would be upwards of 90%. In terms of being able to digitize the loads, like of India's loads digitized, our broad estimate is that FTL line haul loads, which are long distance loads, typically in a day 700,000- 800,000 loads happen typically, and on a live loads market share basis we can broadly estimate anywhere in the range of like 7%-8%. Other loads which typically are live at any point in time on a classifieds platform.
Okay. There is role of network effect in our businesses, right? Once we have big market share, competitors will have difficulty in entering.
Of course.
Okay, thank you.
Thank you. Thank you. Thank you. Abhisek. The next question is from Gaurav Malhotra. Gaurav, I am bringing you on screen, please unmute yourself and go ahead with your question. Gaurav, can you please unmute yourself and go ahead with your question?
I have unmuted myself. Can you hear me?
Yes, we can hear you now.
Yeah, yeah, yeah. I was just saying that on, in tolling, you know, your market share will be roughly, you know, give or take, around 50% ish. Where do you think this market share can potentially go up to?
Basically, the acquisition market share is materially higher than the current market share on the flow through. We believe that, like, that acquisition market share has been also climbing over the years continuously. Till the time the acquisition market share is materially higher and way higher than the current flow through market share, it will always keep catching up to that number.
In terms of gold subscription, if you can give us some sense of where you are at in terms of penetration, you know, what's happening over there, you know, any details which you can share with us.
It was in the early 20s, maybe a year back now more inching towards the mid part of the 20s, right? It will be in that range roughly. Yeah.
That'll be the penetration amongst your users, the trackers.
Yes.
Just one or two small more questions in terms of fuel sensor that seems to be, have picked up in terms of within the users who obviously were having the tracking system. Where would we be in the penetration in that journey or is it, is it a completely new set of user who's basically taking it?
90% of the users are all existing users of the platform. 90%, 90%, 90%, 95% I would say 95% +. In terms of penetration levels, very early days because you know, we have 8 lakh users and I think, yeah, I mean very early days, I think the whole penetration game is still left to be fully played out and in the minds of the consumer. He's thinking of more as that I had a vehicle tracking device, now I'm upgrading into a fuel sensor which gives me vehicle tracking as well as the fuel sensing ability. That's how it works. Obviously have very high value proposition in terms of fuel pilferage, theft, monitoring, managing driver, et cetera. That really gets the ROI to.
This last one small question. In superloads you mentioned that you're going from 4 to 14. So this will still be like within, within the, within south or you are now sort of going to go a little bit, you know, wider in terms of say little Pan India.
We'll be going pan India.
Okay, but would like a 14ish kind of a hub kind of a system be like dense, dense enough from, from a superloads perspective, how should we think about it? Or there is another way. Is 14 sort of the starting point and obviously it has to go much.
Exactly. So basically let's say for example we want to go to west, we want to go to east for example, right? You will start off in Calcutta, right. Then you will figure things out after that. I mean because if you have, if you have the option in east to go to one place you'll only go to Calcutta. If you want to further deepen then you'll start Patna, you'll start Guwahati, like you'll start expanding, right? This is the first probably, you know, points to, you know, just touch upon and then like figure things out on a databases. India has roughly 350-400 industrial hubs all across the country, r ight?
You know the top probably 50 to 100 are very material ones. In that, right now it's really less of a choice, more of a rejection, that where our product will probably fly much stronger, where our dense penetration supply is super normal. We are just choosing those as sort of very easy hubs to move into.
Thank you so much.
Your next question is from the line of Sachin Dixit. Sachin, please go ahead, unmute yourself.
Congratulations again on a decent set of results. To start with I wanted to understand the replicability of superloads model, right? Obviously you are currently in four hubs and let's say tomorrow you are present in 12 hubs. Can we build a thesis that yes, this business works and you will be present in the most major hubs of the country and you can have a sustainable business there?
Yeah. To appreciate the modularity of this, right, see basically I mean we are not like recreating this business or it's not a technology innovation which is leading to a creation of a service. This is a matchmaking service which exists in the industry as an offline industry today. As I mentioned also previously on calls, this kind of a matchmaking business is done by like two and a half lakh brokers in the country today, right. If you look at a typical activity of a matchmaking activity, right, it's nothing but you need to build demand, you need to build supply, you need to do the matchmaking, you need to manage payments, you need to manage in transit, right?
This is like a modular activity. So. The confidence which we've been able to get is that first of all our approach to this was to break this down into all these logical activities. All these are independent teams and these independent teams need to do their independent activities. At the same time, supply is nothing but driven by the whole platform. Then demand has to be raised by demand team like we do in the classifieds business. Fulfillment is done by a team which is separate. Payments is processed by a team which is separate. This has been successfully executed in the hubs of Bangalore and Hyderabad at a sufficient scale. Assuming that we need to reach, let's say, a business size of maybe $2.5 billion in flow through or $200 million in net revenue roughly.
That scale you probably, let's say for example, you need 40 hubs to do that at like X orders in every hub, for example. Right? With reasonable confidence we've been able to prove X by two at least, right? For a very large scale business, if you like, you know, push that down to a particular hub level, we've gotten to that 50%-60% like you know, proof point at one hub level. Now to do that at a hub level, the, you know, the pods like each of these pods like essentially have been created and they run independently.
Basis metrics, data like, and you basically hire teams, they come in, they are trained, they learn the industry, they work with us for two, three months and then they get to a particular productivity levels where we break even, which is generally within three to four months. That has been proven successfully within, let's say about Bangalore. When I am saying a Bangalore hub, for us, Bangalore is actually micro hubs of four points. This has been successfully proven across these four micro hubs. Similarly, Hyderabad for us is three micro hubs and Chennai and Mumbai has been one micro hub. Though it is four hubs, micro hubs have been closer to 10.
We have been able to prove this across these micro hubs, that gives us confidence to say that the granularity in replicability is there and we would be able to do that across 10 incremental new locations. The important point to actually build when we move from 4 to 14 is what is the expansion strategy? How does expansion happen? How does activation happen? Because let's say for example the Bangalore hub, I would visit this hub probably with a very high frequency, but these 14 hubs I would not be able to. What are these processes, metrics, how do you create layers in execution? That will be the, you know, probably those will be the questions rather than the replicability of the unit module.
Understood, understood. Thanks for clarity. Really appreciated. My second question was on the sort of incremental Adjusted EBITDA slide that we used to carry in a few previous presentations. Obviously you did highlight all the earlier commentary that you did that basically you will try to put pedal on growth even if let's say the payback period extends by a few months, et cetera. Should we be expecting slightly more. I do understand you will still deliver like brilliant adjusted incremental Adjusted EBITDA. Should we expect a slightly toned down version of it going ahead, considering that growth pedal is more important at this point.
Basically, few things we are doing to go more aggressive is that, let's say, we would charge, let's say, our customers for our, let's say, attack, let's say, we would live ife. Now we are basically running some schemes and offers to penetrate further to have much higher market share, and probably in some markets where we earlier thought that, let's say, obviously in very good markets, paybacks may be three-four months. Also, in very bad markets today, paybacks may be already 12 months. Then we are like, okay, but at blended CAC level, we're doing really great. Why don't we still penetrate? I think some of those decisions we would be making in the coming six to 12 months. Maybe, yeah, I mean, a little bit maybe tapering down, you can probably expect.
Important to note is that in our business, investment today means much more compounding profits in the future, right? It's actually, but then when will the tide turn towards really expansion of profits, that we don't know, right? Think of it as whenever we aggressively expand profits, aggressively expand investments, profit growth probably a little stabilizes. Once we stop expanding our investments, you suddenly see the hockey stick coming in profitability. That's the nature of business. As I've always maintained the last six quarters, five quarters when I presented you guys our earnings, the profitability which you guys are seeing was actually logged two and a half years back. That was a confidence also of going public, because this is the nature of the business. If you are able to see an investment opportunity which has strong paybacks, we actually typically go intensely behind it and chase those investments.
Because once you sell steady, like steady your investments, you see, like, you know, spring back in profitability.
Understood. Should we expect this next hockey stick to be there in two years' time? Because you mentioned like what we saw, nothing.
Nothing like that. Like, sorry, I was just, you know, metaphorically explaining all of this properly, right? The weight you should look at is that first of all, our investments also will be calibrated like it, because we do not have too much room because these businesses have sufficient penetrations. Even the investments will be calibrated. Hence you can expect the profits also to be calibrated. Everything you can take in a balanced way.
Fair enough, thank you and all the best.
Next question is from the line of Gaurav Rateria. Gaurav, please unmute yourself and go ahead.
Am I audible?
Yeah, Gaurav, we can hear you.
Yeah, hi. Congrats on good execution. I have a few questions. My first one is that I think you used to mention the market share in tolling closer to 45% and now you're saying closer to 50%. Has there been steady market share gain the last six months?
Yeah, there has been a steady market share gain in the last six months, largely commensurate to the similar gains we were doing over the last few quarters.
Got it. Second, on the superloads, could you give example of what is a bare minimum load or the number of loads that you are handling that needs to happen in a city for it to become a playbook and then kind of replicate it to more micro hubs within the same city? I am just trying to understand, like at what scale it starts becoming a playbook from a replicability point of view. Also, because you are investing, how should we think about the contribution margin for this business? Thank you.
Basically, I think, see, the module is pretty small. Like if you have a person who can manage five-six people, like that's a model you can actually start off with, right? If you're asking the bare, bare minimum module, like, you know, hire a team lead who's a people manager who can, like, whom basically you probably will, you know, pay between INR 40,000-INR 50,000 a month and you hire, you know, young, hungry folks, folks whom you pay INR 20,000-INR 25,000 a month, like let's say in the team. And that's a minimum module. Actually, see, the biggest advantage of this for us is that we have, like any marketplace you take, right? There is a demand side of the equation, there's a supply side of the equation.
In any marketplace you have to keep scaling both sides, you know, on a step-by-step basis, right? Because, like, if you have demand and supply is not available, demand runs away. If you have supply but demand is, demand runs away. You can't add both of them, like, in big quantities together. We have been able to, obviously, it's taken 10 years, but we've been able to break this problem down into we have supply now, and then, now it is only about demand. Development demand in this industry is always hungry for trucks. If you go to any shipper and talk to them, they will every time go to multiple brokers and, let's say, try to get a truck. Every broker's fulfillment rates are between 10%-20%. Every broker every day gets 30 indents.
He typically is able to fulfill like two to three orders a day. That leads him to make a net earnings every month of like INR 200,000. Upwards of INR 200,000, right?
This is what we are trying to replicate leveraging a technology platform. Hence, the need of a big module to start is not there. The module, the node is actually fairly small. Like the initial times, whenever we have set up this node, very smallest node, because it is very small, control is higher. You typically break even in the second or third month, right, at a branch level, at a city level. That is the context on basically the node and the replicability from an expansion perspective. How to look at contribution, how to look at impact in terms of total burn. I would say for us also we are too early in terms of really understanding expansion leads to what kind of losses and how to factor the slope, how to factor the breakevens at this point in time.
Because our large evidence of scale up has happened only in the last three months. This team would have been probably like under 50 people team maybe three to four months back. Now this team is already like 250 people team. We really do not have, you know, we cannot, we do not have much guidance into that. We are also figuring out maybe in two quarters we may be able to guide you on how to really model the, you know, contribution and losses in this particular business.
Thank you and all the best.
Next question is from Abhisek Banerjee. Abhisek, please unmute yourself. Go ahead with your question. Abhisek, please unmute yourself and go ahead with your question.
Hey. Hi. Am I audible now?
Yes, we can hear you.
Great, thanks. Thanks for the opportunity. I just wanted to understand the core business growth. Last quarter was about 40% and this quarter it is about 37%. I mean, if you could, you know, help us better understand how to kind of model this for the full year and also I think last year you mentioned that the growth was being driven by the GPS business, whereas this year it was more by the, this quarter it was more by the fuel sensor. Is there any natural correlation between the two?
Yeah, so I think, you know, one is basically how to look at growth, right? First is like a good part of revenues come from the tolling line vertical. Again, the next substantial vertical is basically your telematics vertical, GPS and AI business vertical. When I was explaining the levers of growth, see, every business provides a lot of adjacencies. When I was explaining how the whole playbook of growth is being built out, and whenever we've talked about growth, we've always talked about the numbers of around 25% levels is how we look at growth. Because all the adjacencies, when they come up and compound into growth, is a bit unpredictable because every business is a mix of core, like very core solidified verticals which we can project out, understand, and the adjacencies.
The way to look at growth, obviously two parts, adjacencies, how will they grow, and core, how will they grow, right. In terms of core tolling, again, like indexing this on, you obviously have the public numbers on how NETC is growing. Underneath the hood you can look at what is the kilometers of national highways which is cannibalizing state highways, right. How is that growing? How are number of vehicles which are using the, like, national highway, how is that growing, right, because the number of vehicles grow and they use more national highways, right. How is the inflation on the toll fare growing, right? Obviously a little bit, how has our penetration of our value added services is growing, right? It is a mix of all of this. We obviously give you the metric on how our payments GTV is growing.
From there you will be able to really extrapolate how the tolling business is doing. GPS on the other hand, GPS aided by GPS, AI's device, which is a mandatory device in various different states. This gives like a good kicker because AI gives the kicker. GPS is obviously a good modernization kind of a story because as truckers get modernized, they will utilize these services more and more. Right? Both of these again, we've typically guided in the similar sort of zone. We typically have not guided as a strategy, but to help you out how to model this out. Right? This is how the core works. Now on top of this, like there are a lot of experiments running on how we should really look at fuel cards. How do we run credit programs on fuel, leveraging the dealers.
We're doing a lot of different work over there, right? At the same time, under telematics, obviously fuel sensor has broken out, but we are doing a lot of pilots on various different telematics products, right? Because telematics in India is large about how do we translate the innovation, but not really about innovating because the West is far ahead in telematics. Blended all of this. As you're seeing, we're able to do this 37% growth in the last quarter, right? Hence, that's how you should look at the overall growth modeling for the core businesses.
Understood, understood. With regards to the superloads business, what would be the average value of, you know, one transaction on the superloads business? If you could just, you know, give a split of the net revenues, I am not sure if you have given it previously. I may have missed that out.
Yeah. I think what we've always maintained is that we will at the relevant time start increasing the disclosures with respect to the Superloads business, right? To give you some narrative on how does the industry work and, like, let's say, you know, in terms of the gross revenue per transaction, et cetera. India, if you take the overall India average, the gross average, average revenue, like, you know, for a load, average gross rate value for a load typically would be in the range of about INR 50,000, right? In an offline industry for the whole brokerage industry and the, you know, probably the booking office, everything, whole industry typically makes a 15%-20% kind of a gross margin. Brokerage layer typically makes anywhere in the range of, like, you know, 8%-12% margin in this industry, right?
Today, obviously, because we are largely doing regional lanes, our gross order values are much lower than this. Yeah. This is broadly what we can share.
Understood. Just one last question. One of your competitors has recently announced that they will have a platform which will show the prices for most of the, you know, lanes across the country. That kind of takes away some of the information asymmetry which is there in this segment and which obviously, you know, would mean higher realizations for platforms. Any thoughts on that? I mean, would you sense that the competitive intensity is going up here right now?
Yeah. Basically, you know, I don't know the competitor you're referring to, right? The majority of the competitors in this business are like, you know, in the organized transporter layer, right? Who typically provide services to the end customers. We don't compete with them, number one. Number two, the pricing in this industry is very heterogeneous. Let's say from Bangalore to, let's say, Delhi or Bangalore to Chennai, the whole pricing on a daily basis typically is in the band of 15%-20%, right? And it's very, you know, and that pricing is right and true for that particular micro market and for that particular product category, right?
Let's say for example, if you're carrying, if you're using the same truck type, 32 ft multi axle container for like, you know, two different shippers on the same lane, same distance traveled, the pricing may still be 10% different because one particular customer's warehouse has a lot of detention or one particular customer may have a material which is far lighter but it needs that particular truck type. Pricing is very heterogeneous and pricing is very micro market dependent. I would say that if more and more players can come into this industry and do this kind of work, we will be able to faster crack this market than actually, like, let's say, being a lone ranger and with very few players trying to do this.
Understood, very helpful. Thank you so much.
Next question is from the line of Parikshit Kabra. Parikshit, go ahead, please unmute yourself.
Hi, am I audible?
Yes, we can hear you. Go ahead, please.
Okay, great. My first question, okay, first of all, congratulations Rajesh for your results. My first question is about the type of fleets, fleet that we have. From my research, what I'm hearing or understanding is that one of the type of trucks that we may not have adequately in our portfolio are those container trucks. Based on my research from some of the other people, other tech players who are also trying to enter the space, it seems like they also struggle in onboarding container trucks on their fleets. I'm just trying to understand whether this is just a random occurrence or is there something structurally different about tech players like yourself in terms of onboarding container fleets b asically?
See, basically first of all, if you look at the market segmentation in terms of truck population and ownership, 75% of the people, 75% of the trucks in the industry are owned by people who own less than or equal to five trucks. That's point number one. Now if you look at the share of people who own, let's say more than five trucks, as a percentage of that, they would be owning more containers. So my comment there is large fleet owners typically own large number of containers, right? And these people, let's say for example when we were trying to add users using a tolling or a vehicle tracking service, et cetera.
As it is 2019, 2020, these guys, because they were profitable businesses for, let's say, you know, maybe like a large western telematics company or by HDFC Bank or by an ICICI Bank, became their customers quite early on, right? If you look at our, like, let's say, our percentage share percentage, like, let's say, for example, if India has 10% large fleet owners who own more than 20 trucks, for example, right, our percentage of that would be like 6%, right?
On a relevant proportionate share, obviously we are lower on a platform basis because they were penetrated by some of these players because of the profitability of that business, right? that is point number one. Point number two, your obviously question is right that do we have containers? Answer is yes. Do we, like, really dominate in containers? Answer is no. At the same time, today, percentage of vehicles in the Superloads business, or be it in the Classifieds business which get placed by containers, that number is also 40%. It is basically 40%-50%, so that is basically, you know. Yeah. Classifieds, as you rightly said, you may have the voiceover by the customers that we are not able to find containers properly because the availability of trucks is so high that they feel bad in containers.
At the same time, when I look in superloads, right, when a customer repeats, he starts repeating. Even though he is not a customer, he is maybe a customer for only one of the other product categories or maybe he has joined the platform only for classifieds or he joined the platform only for superloads because he started superloads. The repeat is typically very high for containers as well. Your answer to your question is definitely yes, that proportionate share is lower. Containers are available. Do customers struggle in finding containers who are classified customers? The answer is yes. Do we have high share of our loads on containers? The answer to that also is yes.
As a follow up, Rajesh, on that, first of all, thank you for that. As a follow up on that, then would it be fair to say that to some degree our loads marketplace or even the classifieds business would be throttled in its growth because of our inability to have adequate number of, you know, these container trucks and if so, how are we structurally solving for it? Because see the problem that you identified, which is that these container trucks are typically with larger organized players who we have not managed to tap into, that still persists. How are you going to solve for that?
No, no, sorry. Like what I meant was first of all they are large. See, first of all India has a $200 billion trucking TAM, right? $180 billion, $200 billion in that, which comes into brokerage is $120 billion, right, that's 60% of that. First of all these organized guys may have put the trucks with, let's say, a PTL provider or express provider. I'm not even calculating that in the TAM, right. So the TAM is excluding that. The problem is that the overflow needs of these come into the brokerage marketplace for the overflow needs. Any which ways you will not find trucks. Answer to your question is for the relevant share of demand which actually comes into the open market, those many containers I think are available in the open market. So it would not throttle.
That's point number one because we've seen that play out in the business in the markets we are in. Like Bangalore is a significantly container market and we've been able to scale up significantly over here, right? The answer to this question is that first of all, containers is a very small share of the overall market. Number two, have been able to find containers on our platform? Answer is yes. Have been able to scale containers? Answer is yes. Higher market share of our business is in containers? Answer is yes, right?
Yeah, got it. Second question I had, Rajesh, was I understand that, you know, you guys are planning on doing massive investments in all the new growth areas and that's fair enough. I think this quarter in terms of our cost line items, we have already seen some of those investments. From a quarter on quarter growth perspective on our growth business, we have grown from INR 23 crore to INR 28 crore, which is obviously great growth if you look at it out of context. From the idea that we have just managed to crack this model to some degree and we are scaling up operations so rapidly, does this growth look adequate to you from a top line perspective?
Yeah, you're absolutely right. I mean this growth from a perspective of what this can be is definitely not adequate. Let's say the entire aggressive outlook into superloads is quite recent of the last two to three months. Yeah.
Got it. All right, thank you.
Thank you, thank you. We'll close the Q & A session now. Thank you everyone for, you know, for hearing us out. I'll hand over to Rajesh now to make the closing remarks and then we'll close the call. Rajesh, over to you. Yeah.
Thank you, everybody, for, you know, making it to our earnings call. I think we had a good, you know, first half of the year. Yeah, more importantly, you know, as I understand all of you are on a holiday, and I think on a holiday joining the call and, you know, hearing us. Thank you so much. Special thanks, you know, for that. See you guys again soon, you know, after one quarter. Wish you all very best. Yeah. Signing off. Thank you.