...Ladies and gentlemen, good day, and welcome to eMudhra Limited Q3 and nine months FY 2026 earnings conference call, hosted by Arihant Capital Markets Limited. 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 this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Jyoti Singh from Arihant Capital Markets Limited. Thank you, and over to you, ma'am.
Thank you. Hello, and good evening to everyone. On behalf of Arihant Capital, I thank you all for joining into the Q3 and nine-month FY 2026 earnings conference call of eMudhra Limited. Today, from the management side, we have Mr. Venkatraman Srinivasan. He is the Executive Chairman. Mr. Ritesh Raj Pariyani, he's the Chief Financial Officer. So without any further delay, I will hand over the call for opening remarks to Mr. Venkatraman Srinivasan. Sir, please go ahead. Over to you, sir.
Thank you. Good afternoon, everyone, and thank you for joining us today. It's a pleasure to address you and share eMudhra's performance for the third quarter and nine months ended FY 2026, along with the key business developments across our global digital trust and cybersecurity portfolio. During the quarter, our performance reflected steady execution across products and geographies, supported by a more balanced revenue mix. Total income for Q3 FY 2026 was INR 1,911 million, representing a year-on-year growth of 35.6%. EBITDA for the quarter was INR 441 million, with a margin of 23.1%, while net profit was INR 290 million, translating into a net margin of 15.2%. Growth during the quarter was driven by increased product-led revenues across markets, which helped offset softer growth and margin pressure in the U.S. services business.
Europe contributed more meaningfully following the Cryptas acquisition, improving overall margin quality. From a regulatory and demand perspective, global cybersecurity and compliance mandates continue to support adoption across our platforms. Frameworks such as NIS2 and DORA are reinforcing demand for certificate lifecycle management and identity and access management solutions, particularly among regulated enterprises in Europe. These regulations are accelerating investments in compliant trust and security infrastructure, creating sustained opportunities for our offerings. In e-signature and paperless workflows, our focus to positioning in the banking and financial services segment is delivering consistent results across India, Middle East, and Asia Pacific. Transaction volumes in India have increased across retail banking and capital market use cases, supported by wider digital onboarding and documentation programs. We are also seeing increased traction through partner-led distribution of these solutions.
On the infrastructure front, our U.S. data centers are now live and are enabling local TLS certificate issuance and lifecycle management for North American customers. This improves turnaround time, supports local compliance requirements, and strengthens enterprise adoption in that region. In the Middle East, recent changes in UAE trust service provider guidelines are increasing the need for in-country trust infrastructure, and we are progressing on setting up a local data center to support government and BFSI opportunities. Integration efforts related to our recent acquisitions are also moving ahead. The Cryptas product portfolio is being aligned with our broader eIDAS-focused trust stack, and we are working on cross-sell opportunities across European and non-European markets. Ikon Tech Secret Management Engine has been integrated into our platforms, strengthening our capabilities across certificate lifecycle and identity environments, and the entity has been amalgamated with our U.S. subsidiary, eMudhra Inc.
Now, let me share some of the key project wins and customer engagement during the quarter. Certificate lifecycle management win across IoT and enterprise authentication use cases in the U.S. Renewal and upsell of certificate lifecycle management with strong authentication across large energy, CPG, and financial services customers in DACH region in Europe. First, e-signature workflow rollout for a large bank in Oman. Then large-scale CLM and identity and access management deployment across defense agencies in India. CLM implementations across central banks and leading banks in the Philippines and Indonesia. Continued increase in e-sign and e-stamping adoption in India across banking and financial services-driven digitization programs. Overall, the quarter reflects continued progress across execution, product development, and geographical expansion.
With improving contribution from Europe, growing product-led revenues, and sustained investments in identity, security, and compliance platforms, we remain focused on building scale in a disciplined manner while strengthening our global positioning. Looking ahead, our product development roadmap continues to focus on converged identity, advanced certificate lifecycle management, privacy-led data discovery, and post-quantum cryptography. ... Early deployment of post-quantum and privacy discovery capabilities are underway with regulated enterprises, where the solutions are being tested in live environments for compliance and risk management use cases. With that, I would now like to invite Mr. Ritesh Raj Pariyani, our CFO, to take you through the financial performance in greater detail. Thank you.
Thank you, Chairman. Good afternoon, everyone. I am pleased to share the highlights of our Q3 and 9-month financial year 2026 financial performance. Our total income for quarter three, financial year 2026, was INR 1,911 million, making a 35.6% year-over-year growth. Gross profit for the quarter grew 42.6% year-over-year to INR 1,090 million, with a margin of 53.4%. EBITDA for the quarter was INR 441 million, registering a 38.2% year-over-year growth, with a margin of 23.1%. Profit after tax for the quarter was INR 290 million, reflecting a 29.5% year-over-year growth, with a margin of 15.2%. Now, turning to the nine months financial year 2026 performance.
Total income reached INR 5,166 million, representing a 36.5% year-over-year growth. The enterprise solution segment generated a revenue of INR 4,079 million, while the trust service revenue is INR 1,003 million. EBITDA was INR 1,255 million, registering a 31.8% year-over-year growth, with a margin of 24.3%, while PAT was INR 805 million, growing 28% year-over-year, with a margin of 15.6%. That concludes my remarks. Thank you, and we may now open the floor for the question and answer session.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question, may please press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 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. The first question is from the line of Rishi Maheshwari from Aksa Capital. Please go ahead.
Hi. Congratulations to the management. Good set of numbers. I had two questions. Firstly, sir, to understand the U.S. has in your prepared remarks, you'd mentioned reduced growth and margins from the U.S. Now, in the last quarter call, you had indicated that you were chasing seven big customers and signed five, six major customers, two, three of them would have come in this quarter itself.
Yeah.
So, what had changed during the quarter? Along with, if you can also highlight the quarterly numbers that you have aggregated from Cryptas as well as Ikon Tech.
Yeah. U.S. has not declined. U.S. almost remain the same compared to last quarter. It is not declined. So that is, that is one thing. Then the customers, what we have signed, they continue, but over a period, they will earn the revenue. It will not... Revenue will not come immediately because a lot of use cases are, some are on-premise use cases, some are usage-based use cases. So that way, there is no reduction, and we are still working with a number of large customers. So 2-3 customers came. One of the customer we expected last this quarter, 2-3 quarter, might shift to Q4 quarter. So that is where it is. So there is no loss in the U.S. business. It continues the same, but the services, U.S. services business, there is no growth.
It almost remains stagnant because of the AI and because of the H-1 visa problem, as I indicated in the last quarter. Then, coming to the Cryptas revenue, the last quarter, Cryptas revenue in Q2, that is ending September, Cryptas revenue was around INR 24 crore or something like that. Now, it has become INR 34 crore in the Q3 revenue. So that is the revenue contribution from Cryptas. And we had also indicated there was a loss of INR 1.6 crore in Cryptas in Q2. Instead of it, it is now positive at INR 1 crore or INR 1.25 crore Cryptas, Cryptas PAT, which is included in the overall consolidated accounts.
As regards .
Ikon Tech. Ikon Tech, we are not selling separately. That is integrated. Even earlier, the turnover was very less. Because of the product, we acquired the company. So the company has been integrated and amalgamated with the eMudhra Inc. So that product is also, that secret engine is also combined with our emCA solution and the CertNext solution.
Sure, sir.
There is no separate tracking of the revenue of the Ikon Tech.
Okay. So, sir, if I have to remove Cryptas revenue from this quarter's total revenue, which is about INR 139 crore, I would see that organic growth, organic revenue posted in this quarter would be about INR 105 crore. So which is not substantial growth over last year, Q3 FY 20... Sorry, about, so sorry, so sorry, I'm reading the wrong numbers. About INR 188 crore you've posted in this, if you have to remove 34-
Nine months to nine months, we will compare both. We will do nine-month to nine-month comparison. With Cryptas, it is almost 36% growth. Without Cryptas, it is a 21% growth. Even if you compare three months to three months, with Cryptas, it is around 38% growth. Without Cryptas itself, it is 11%-12% growth.
I see. I see, I see, sir. So then, given this scenario, it seems like you should be able to comfortably beat your initial organic guidance or initial guidance of about INR 700 crore.
Yeah, yeah.
Would you like to revise that number?
No, no, no. We shall not revise. We will achieve that INR 700 crore.
It seems INR 700 crores is already in the bag, given that you've already done about INR 550-INR 560 crores of revenue within the nine months.
5, not 550. Now we are in 516. 516.
Five sixteen.
516. So still INR 190, if we do, then we will reach. Yeah. So still INR 180-INR 190 is required. So that way, if you see Q3, Q3, there were two things. One is it was a year-end for Cryptas, so there is a little more revenue in Cryptas in, in that region. It is a year-end. Then in the digital signature business, in Q3, again, generally, Q2 is higher, but this time little Q3 is higher because the filing season shifted to October end, and all those things. So that's where it is better to be taking INR 700 instead of revising the guidance.
Sure. Margins are hovering around 20%-24%, sir?
Yeah, yeah. EBITDA margin and PAT margin around 13.5%, 16% kind of. But in this another thing we have to observe is a lot of other non-repetitive item or expenditure also we have to observe because of this Ind AS . One is this, that acquisition, Cryptas acquisition, legal expenses, that bill came in this quarter, so almost INR 1 crore, one, one crore. Earlier days, those used to be capitalized along with the acquisition, but nowadays it has to be written off in the P&L. Then the other thing is the labor law changes, so for the gratuity, extra provision had to be made. So because of all that, the EBITDA margin came to 23.1%. But if you take out all the adjusted EBITDA margin, is 25.8%.
Sorry, sir, can you repeat that? INR 25.8, did you say?
No. Yeah, adjusted EBITDA.
Yes.
If you do not take-
Adjusted EBITDA, how much?
Adjusted, 25.8%. It is there in the presentation also.
Sure, sure, sure. Thank you so much, sir. I'll come back in the queue.
Yeah.
Thank you, sir. Ladies and gentlemen, to ask a question, please press star and one now. Participants who wish to ask questions may please press star and one now. The next question is from the line of Jyoti Singh from Arihant Capital Markets Limited. Please go ahead.
Yeah, thank you for the opportunity. So just wanted to understand if you can quantify overseas investment costs embedded in Q3 EBITDA, and when do you expect breakeven at an EBITDA level?
More, it is not very clear. Can you repeat the question? Hello?
Yeah, sir.
Can you repeat the question? It was not very clear here.
Yeah. So, sir, can you quantify overseas investment costs embedded in Q3 EBITDA, and when do you expect breakeven at an EBITDA level? And another, what was the average deal size in Q3 against Q2, and how has it trended over the last 12 months?
When you say overseas investment in EBITDA, I don't understand the question, because the investments are all gone already in the capital acquisition, goodwill, and all those, no. So in the EBITDA, the investment in overseas acquisition is not coming in the EBITDA. Only thing is the from Cryptas, that revenue of around, like what I said, INR 34 crore is coming, and the profit of about 1.4 or 1.5 crore is coming. So this is what is coming in the EBITDA, in the profit and loss account.
Okay, sir.
Investment has already gone in the last quarter.
Okay, great, sir. Sir, any material Forex impact on revenue or margin during the quarter?
No, Forex impact, not much, because we are-
Okay.
We maintain the foreign currency in the respective countries, and only in the translation it will come, and in the last quarter, maybe from 90 to 91 or 92, it has gone, 89 or something. So it may not be very material. Nothing is like it.
Okay.
Yeah.
Okay. And, sir, what was the average deal size in Q3 against Q2, and how has been the trend over the past few months?
So it depends on different products. One is the trust services. It's a retail kind of business, where every DSC you are selling for INR 1,500, then eSign, every eSign, INR 5. Then if you take the emSigner deals, generally in India it is around INR 5 million. Then in foreign country it will be $250,000-$500,000, but emCA, CertNext kind of thing will be $600,000-$700,000. So each one. The deal sizes remain the same. They're not reducing or increasing much, average deal size.
Okay, thank you so much, sir. I will come back to you.
Yeah.
Thank you, ma'am. The next question is from the line of Akshit Mehta from Seven Rivers Capital. Please go ahead.
Hello, sir. Am I audible?
Yes.
Yes.
So my first question was, sir, in this quarter, sir, we've, we've seen some impact on, on margin, right, because of, you know, slowdown or flat growth in the U.S. market. So when can we kind of see these numbers, you know, go back to something like a 25%?
... 26% margin, right? And this impact, you know, when can we, you know, see this finishing?
No, already the EBITDA margin is 23.1, and adjusted EBITDA is 25.8.
Yes.
So that way, good margin is there. And the, the US market, if you see the product business continues the same like last quarter and gives a very good margin. The service business where it is stagnant, it's also last time I explained that it is due to the H-1 visa and various other AI-related issues and all this. The number of people growth in services is not as expected, but otherwise, the overall margin is already good, and we expect to continue with this level of margin.
Also, just, on follow-up on that, sir, so when do we see in the next one year that product-led, you know, revenues would outperform your services revenue in the U.S. market in the next 12 months or so?
Next 12 months, services revenue may marginally grow, but product revenue can considerably grow, which may give a better margin.
Okay. So earlier, sir, your mix was INR 40 crores of services, it's INR 20 crores of, you know, product revenues from U.S., right? Can it become the reverse in the next one year or so?
Next one year may not be reverse, but at least product revenue from INR 20 can go to INR 35.
Okay. Another question-
Services continue. It is not that revenue means service will not reduce. We feel service will continue, product will increase.
Also, so the second question is, do we have any positive or negative impact from the two trade deals that have recently happened with Europe and US?
What is that? Can you repeat the question?
Do we have any impact from the two trade deals that have happened recently with Europe and US?
No, no, no, no, because ours is not a kind of a, commodity kind of import, export, which is regulated at customs. That's a different matter.
Okay.
Ours is all product, thing, kind of thing, which is not regulated as of now like that. And another thing is we sell everything from our subsidiaries, which are in the respective countries. So when it is going to customer, it will not be treated as an import or export.
Okay. Thank you, sir.
Thank you, sir. Ladies and gentlemen, to ask question, please press Star and One now. Participants who wish to ask questions may please press Star and One at this time. The next question is from the line of Samrat Jadhav from Prosperity Wealth Management. Please go ahead.
Hi, good evening. I have three questions. One is that your revenue basically grew 35.6% year-on-year in this quarter, with international contributing around 37%. Okay, how much of this is, this growth is driven by recurring contracts versus one-time implementation?
How much is driven the current contract?
Recurring contract.
Recurring contract versus one-time implementation.
Our revenue, 65% is recurring revenue-
Okay.
and the others are one-time revenue of license delivery.
Okay.
For example, services are predominantly recurring, then the trust services are predominantly recurring. Even out of enterprise and the emSigner, eSign and all these are recurring. But wherever we supply to the government and all that, it is predominantly license-based.
Okay. So around 65% is recurring?
65% recurring, 30% non-recurring.
Okay. Okay, and you've announced a data center in U.S. and UAE, what is the expected CapEx for it?
What is the expected CapEx for?
For the data centers in US and UAE.
U.S., already we have installed. It was around INR 15 crore-
Okay.
but actually we didn't spend so much. Earlier, we... If you remember, we had put a data center in Europe.
Mm-hmm.
Then we acquired Cryptas. Then Cryptas-
Right
... had a data center because they are having a company called PrimeSign, issuing the signature. It is in Austria.
Sure.
So we closed the Netherlands data center and moved all the equipment to U.S., and with that only predominantly we put up the data center in U.S. Marginally, some spending was there.
Okay.
Then the Middle East, what happened, because earlier in Middle East, we were operating from the India data center. Now, the UAE-
Mm-hmm
... has passed a law that you have to operate a trust service only from a local data center.
Okay.
So that's where we had to put up a data center in UAE, data center and disaster recovery, which is about INR 15 crore.
Okay.
Mostly it is spent, but again, it has to be audited by the auditor, approved by the UAE government, which is some French audit companies.
Mm-hmm.
Now that audit has started, so it may take some two months, three months, for that audit to complete.
Okay.
Then we can commission. Until commissioning, the UAE people have allowed us to operate out of the India data center, because we are the only certifying authority there.
Good. Okay, my last one is that in India, so DPDP compliance and property digitization are expected to boost the eSign adoption. Can you quantify the potential of, of-?
Oh, your voice is not audible clearly.
Okay. Now it's good?
Can you repeat it?
Now it's good?
Yeah, you repeat.
Yeah, yeah. So I was saying that in India, the DPDP compliance and property digitization is expected to boost the eSign. Okay.
Yeah.
eSign adoption, basically. So can you quantify the potential uplift in the trust services revenue from these initiatives?
... Yeah, the e-sign, this year, if you see, almost the trust service revenue, even in nine months last year, I think whole year was INR 100 crores. This year, nine months itself, we have come to INR 100 crores. So yearly revenue-
Okay.
-could be 120 or 122, like that. So at least 25%, 22% increase can be there. But now, another thing is the e-sign, because it is going along with the emSigner and all that, we are classifying, except the retail e-sign, all the banking e-sign and fintech e-sign, we are classifying under the-
Enterprise.
enterprise revenue. So there also-
Mm-hmm.
Number-wise, from almost, if you see one year back, it was 50,000 to 100,000 per day. Now it is almost more than 400,000 per day. So that way it is increasing.
Mm.
But there, the only thing is the per e-sign is only INR 5. And again, on that-
Mm-hmm.
After paying the other charges, the margin is only 25%. So that's where, though the number of e-Sign increased considerably, it may not very considerably affect the increase the revenue or the profit.
Okay. Okay, thank you. Thank you on the surplus for the next quarter.
Yeah, yeah. Thank you.
Thank you, sir. The next question is from the line of Rishi Maheshwari from Aksa Capital. Please go ahead.
Hi, sir. This is a follow-up for understanding the growth that you have generated from the Europe.
Yeah.
-also, trying to correlate this with the thought of regulatory push that you may have received from the couple of enactments, which is DORA and NIS2.
Yeah.
-and sorry, DORA. So with... Sir, these compliances have already been enforced by the end, before 2025. So whichever companies would have to enforce this and comply with would have already adopted and implemented it. Henceforth, going forward, how do you expect-
Yeah.
the growth coming from regulation? You've mentioned that in the prepared remarks that, you know, while regulations have, you know, escalated the adoption.
So regulation come, everybody are not able to comply with immediately. A lot of people take some time, some postponement, and then newer and newer application are there. It is not a static application. So in the newer application, they would like to comply and all that. So this is where the more and more inquiries are coming. And the other thing is, now we have integrated; otherwise, the Cryptas was selling the third-party products. So in our third-party product, we have integrated our MCA product and CertNext product into their portfolio so that they can sell. And also we are trying to sell their some of the product in the other market. So all these put together will drive the growth, not only one factor.
Another thing, any regulation, the adoption takes over a period of time, and whenever newer and newer customer come, they have to also adopt. This is where we feel it will be adopted. It is not a one-time matter, actually.
Right, sir. How is the environment looking to you, sir, in form of growth for FY 2027?
FY 2027, still we have-
For enterprise.
We feel very optimistic, particularly in the Middle East market and Africa market; we are very optimistic. European market, also optimistic. American market, other than service segment, in product segment, we are optimistic. But still we have not formulated the overall strategy and what will be the growth number for the next year and all that. And again, predominantly, we are looking at more of a product-led growth than the service-led growth, so that way, that could also give better margin and all that. So this is where we are, but we are very optimistic about many countries.
Sure, sir. Any changes with respect to the recent budget timelines of filing returns, or does that make any difference to the trust services revenue seasonality that we usually see?
No, I don't. They have not changed much about the corporate people requiring the tax act. Today, where digital signature is required, is only for corporates which require the tax audit cases. So those kind of cases, I don't think they have changed any date. Yeah.
Sure, sir. And any...
Tax audit cases, when date changes happen, which will not anyway require digital signature.
Got it. We can expect the run rate on the trust services at about INR 34 crore-INR 35 crore, continuing to go ahead also. This is more or less in terms of the cash flow that you also received of similar nature, of the EBITDA be recovered.
Yeah, yeah, yeah. At current run rate, it is.
Right, right, right. Is there any other white spaces that you identified as a result of which, you know, post these two acquisitions, you need to work, go and further undergo any more acquisitions in the near future?
No, immediately we are not. Currently, we are not evaluating any acquisition, so maybe we feel another six to nine months, it may not be required. After that, if necessary, we will see.
Got it. What would be the CapEx for this year that you have planned?
This year, 2025-2026, we planned about, INR 60 crore, INR 60 or INR 62 crore, something. So on that, almost 75%, 72% incurred balance will be incurred. And this is excluding the data center, because the data center has come arising out of the Middle East UAE data center, sudden compulsion of change in regulation with them. The INR 60 crore is only by way of all the software and other things.
That seems to be a little higher, given the, given the past. What would this be on, incurred on account of INR 60 crore-INR 65 crore?
... That is two, three areas. One is this, PQC area. Another is this, discovery, classification, consent management, data privacy, and then so remote signing. So all these four, five, six areas. And generally, even U.S. product companies are all, they are incurring 20%. For us, it may be 10% only, 10, 12%. So that way, even last year it was INR 45 crore or something.
Right. And what could be the additional expense on, in case of data center for Middle East, sir?
That is around INR 15 crore.
A possibility of about INR 75 crore-INR 80 crore of CapEx that we may foresee in this year?
This year, 2025, 2026.
Right. 2025, 2026... I'm so sorry, sir. You mean to say FY 2026 is what you are suggest- indicating of, of about-
27, we have not yet budgeted.
Okay. Okay. All right. Okay, fair enough, sir. Thank you very much.
Yeah.
Thank you, sir.
Thank you, sir. All right. Thank you.
The next question is from the line of Ashray Vasa from Nippon AIF. Please go ahead.
Yeah. Hi. Hi, sir. So just one question following up on the, the previous participant's question. Obviously, the budgeting is not yet done, but any color in terms of the order book pipeline, geography-wise, how is it looking? I know you all have mentioned Cryptas cross-sell deals, one or two are gonna close over the next couple of quarters, but seems like US has slowed down, or was it just that it was a seasonally weak period, that's why-
Slowed down only on the, as I said, only on the services side. Product side, still a lot of conversation going on.
Mm.
So that's why I feel it will improve. Yeah.
Yeah, so any other colors for... Yeah.
Order book pipeline is also really good.
Mm-hmm.
Almost more than INR 400 crore order book is there, as of now. A pipeline is there.
Right.
The order book is also quite good. Yeah.
Understood. Understood, sir.
Yeah.
Any timeline or anything with regards to the stock issue that we had, you know, the partners and distributors that used to work with us?
May, may go another one or two quarters.
Hmm.
Yeah.
Okay. Okay. Understood. So post that, there should be some normalization in those line items, the purchase of stock in trade and-
Yeah.
Got it. So that, that would be a margin lever, right?
That's... Yeah, yeah, yeah.
Yeah.
Because every quarter, INR 3 crore is going on that. So that will improve.
Okay. Got it. Got it, sir. And, and just last thing on the, on the timeline for FY 2027, like, what are we waiting for? Is it just a timing thing, or we are waiting for closure, closure of some deals, or just trying to understand where we are in the budgeting process?
Budgeting, generally we do in March only, because-
Got it.
Already in February, so we do in March, middle.
Understood. Perfect. Perfect, sir. Thank you so much.
We have the general strategy board meeting around March end.
Understood.
After that only we... Yeah.
Perfect. Perfect. Thanks for answering. Yeah.
Thank you, sir. Ladies and gentlemen, to ask a question, please press Star and One now. Participants who wish to ask questions may please press Star and One at this time. The next question is from the line of Siddharth Mishra from Kriis. Please go ahead.
Hello, sir, thank you for taking my question. Sir, just on the order book number, you mentioned it's more than INR 200 crore. I'm assuming this is for product segments only?
No, no, no.
Okay.
I was mentioning about the pipeline, pipeline of more than INR 400 crore. By mistake, this INR 200 was-
Understood. So pipeline is more than INR 400 crore. And any update on the product order book, you know, maybe just indicative growth number, if you can highlight?
No, that's why for the year, as I said, we will do INR 700 crore. No, for the next year, we have not yet estimated. But we feel-
Also this order book data, we-
On the gut feel.
Yeah. Yeah.
Based on the gut feel, we feel every geography it is quite good improvement is there. So next year, if you see this year, organic growth, if you see total 35-36% growth, 18%-19% organic growth and balance is accretive growth. So even if we do not do any acquisition next year, the organic growth itself could be 18, 18%, but we feel the entire organic growth could be only out of the product. So that can lead to a better margin growth.
Got it, sir. This is very helpful. I was actually just checking on the order book data that we disclosed at year-end. So last year it was INR 1,907 million, INR 191 crore.
Yeah.
Any indication on how is that growing as of nine months? If you can just highlight, even a rough number is fine, just a range, if you can provide.
That is growing in proportion to our growth numbers.
Got it.
Yeah.
Got it. Got it. Okay, understood, sir. That's helpful. Pipeline is more than INR 400 crore.
Yeah.
And then second question, sir, on trust services, you know, just on the environment, DSC volume, pricing, and competitive intensity, how has that progressed in this quarter particularly, and what is your expectation, going forward?
No, from pricing, now we are, we are priced at the highest price, so the price, price realization is higher. Volume, as I said, even 1 year, 1.5 years back, because of the changes in some taxation thing, 30%-40% volume-
Yeah
came down. So instead of the volume coming down, and the price, we are able to, though other people are selling at INR 700-INR 800 rupees, we are selling at INR 1,500 rupees. Still, we are able to sell and achieve these numbers.
I mean,
Digital signature volume-
Yeah.
may not grow much. It may grow
Yeah.
Marginally, but because of the price, we are able to achieve the numbers.
So a 5%-10% volume is a likely outcome there, DSC volume?
Yeah.
Or even lower?
Yeah. No, 5%-10% is possible-
Under-
because we will get new partners. Yeah.
Got it. Got it. Okay. And then just, last one, sir, on the cash number at 3Q, and I understand we don't report it, you know, in the third quarter, but is it possible for us to disclose that number?
Absolutely. More than INR 100 crore, little over INR 100 crore.
Understood, sir. Earlier, our expectation was, just last one, on the cash at year-end, even after paying for Cryptas and AI Cyberforce, so it will be INR 140-150.
No, 120 to 140... 125 to 140 something. But I feel soon it will be possible. It may be possible, but we have to wait and see.
Data center is capable.
Because, like for registration-
Ah, yeah.
Again, the data center, INR 15 crore we have to spend.
Understood. Understood. Got it. Yeah, that's it from me. Thank you.
Yes.
Thank you, sir. Ladies and gentlemen, to ask a question, please press star and one now. Participants who wish to ask questions may please press star and one now. The next question is from the line of Sumukh from Carnelian Asset Management. Please go ahead.
Hello. Hi, team, and thanks for the opportunity. So I'm new to this company, and I'm trying to understand the business. So when I look at this certificate authority, right, we have-
Yeah.
-DigiCert and Azure in this space. So how does our product, you know, different compared to this? And why would a customer choose us over them? So any light on that, sir?
So there are two aspects. One is the India Certifying Authority and the foreign places. We are leader in the Indian Certifying Authority space. In India, DigiCert, Entrust, and all those people are not there because they are not licensed here, number one. Here, other people like Capricorn, Verasys, IDSign, these kind of people, some 15 people are there. Foreign Certifying Authority, DigiCert is the major. So in foreign, two things are there. DigiCert issues the certificate, SSL Certificate and various certificate, and also they are doing number of products, particularly CA solution and the cert, Certificate Lifecycle Management solution and all that. So we are trying to compete in this, not in the certificate so much, but in the CA solution, the Certificate Lifecycle Management solution, and all that.
So our product, also all the features we have studied, and we have, built up a product which is equally capable, in some aspects, better capable also. So with that and then with the... our little cheaper positioning and various things, we are able to win. But more than America, if you see various other countries, like Middle East, Africa, Far East and all that, there we are extremely flexible and competitive. That's why we are able to win the deals.
Okay. And sir, is this product, is it a commoditized product, or is there any significant differentiator between you and your, your competitors, or is there a scope for differentiation?
It's not a DSC issuance and eSign is more commoditized product.
Okay.
But if you see the CertNext MCA and all that, it is not commoditized because globally, only 3-4 providers, and mainly, and also even our identity authentication management, it is not a commoditized product, because globally, only 3-4 providers, and then quite a lot goes to the government and banking by on-premise sale also. So, and in that, our, for example, signature solution is extremely specialized on the banking vertical, which is not there with the other product. Similarly, our CA solution, extremely because we also ourselves operate the Certifying Authority, all the nuance of Certifying Authority are built into that solution. So that way, there is no, not too many competition. In this, in our solution space, 2-3 competitors are there, predominantly U.S. competitors.
So that way, because of the flexibility and also because we are able to offer it at a cheaper rate compared to the U.S. solution, we are able to penetrate.
Okay, sir. And what percentage of revenue comes from this, non-commoditized, part of, the work that you do?
Commoditized product out of this year, if you take INR 700 crore, maybe INR 130-INR 140 crore may be commoditized product. Balance will be non-commoditized product.
Okay, sir. Thanks for that. One last question: so does the enterprise moving more towards cloud and cloud modernization benefit you guys in any ways? Or, how does it work out for you guys?
Yes. Our solution, identity, authentication, management, CA solution, and all. Cloud is there, but predominantly in the Asian region, the large customers want either private cloud or on-premise, not in this as well.
Okay, and so my question is,
Direct sell, multiple billing, and all these are possible.
So if an organization chooses to move their data center to cloud, so does that mean they cannot use your product or how-
No, no, no. We sell in, we sell in on-premise, cloud, and as well as private cloud, any model.
Okay, because if Azure has their own CA and somebody is going to Azure cloud, so will they be incentivized to use only Azure CA, or how does it work, sir?
No, in Microsoft CA, Azure CA, and all that, it will have only certain functionality. As per that, you have to work. In our CA, they want customization, we may do a lot of customization, and then specialization for certain type of certificate, like IoT device certificate or some other certificate and all that. So that kind of flexibility we will offer, which they may not offer in the Microsoft CA, Azure CA, and all that.
Okay, sir.
That's why they may... Yeah.
Yeah. Yeah. Okay, sir. Got it.
Otherwise, the easiest to implement is the Microsoft CA.
That is the easiest way for them to do if they don't want any customization?
Yeah.
Okay. Yeah, thank you.
Thank you.
Thank you, sir.
Yeah.
Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to management for closing comments.
Thank you. I would like to thank everyone for joining the call today. We remain focused on delivering consistent performance and innovative solutions that enable secure digital transformation for our clients across the globe. For any additional information or queries, kindly get in touch with our investment relations advisors, Churchgate Partners. Thank you once again. Thank you.
Thank you, sir. On behalf of Arihant Capital Markets Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your line.