Evening, ladies and gentlemen. I am Alaric, your moderator for this conference. Welcome to the conference call of Route Mobile Limited arranged by Concept Investor Relations to discuss its Q1 FY 2026 results. We have with us today Mr. Rajdipkumar Gupta, the Managing Director and Chief Executive Officer, Mr. Vinay Binyala, the Chief Strategy Officer and Investor Relations Officer, and Mr. Raj Gill, the Group Chief Financial Officer. At this moment, all participant lines are i n listen-only mode.
Later we will conduct a question- and- answer session. At that time, if you have a question, please press star and one on your telephone keypad. Before we begin, I would like to remind you that some of the statements made in today's earnings call may be forward looking in nature and may involve certain risks and uncertainties. Kindly refer to slide number two of the presentation for the detailed disclaimer. Please note that this conference is being recorded. I now hand the conference over to Mr. Rajdipkumar Gupta, the Managing Director and Chief Executive Officer. Thank you, and over to you sir.
Thank you. Good evening everyone and thank you for joining us today. I'm honored to be speaking with you once again. As the CEO of Route Mobile Limited, it is a privilege to step back into the role at such a pivotal moment in our journey. I want to take a moment to thank our outgoing CEO Gautam Badalia for his leadership and contribution as I return to lead the company in the capacity of CEO. My focus is to enhance the core strength of the company and drive the next phase of our growth story. While we face headwinds in the past quarter, particularly in revenue growth, I am encouraged by the significant improvement we delivered in both gross profit margin and EBITDA margin by focusing more on profitability than volume. Looking ahead, my product priorities are clear.
We will double down on our core business and serve our customer with even greater rigor. Our primary focus gives revenue diversification through expansion of our global footprints for our non-ecommerce product portfolios such as WhatsApp and RCS, Voice along with AI-driven firewall solutions. Reason for MNO we will also drive business expansion through cross-sell initiatives across Proximus Global. We have identified immediate area of action. w hich will walk you through over the course of today's discussion. We will put more efforts in our product innovation pipeline to create differentiated solutions and stay ahead of market demands.
Further, we will sharpen our market focus to drive sustainable growth in targeted segments, ensuring every initiative is aligned with delivering superior performance and shareholder value. I'm excited for what's ahead and deeply committed to ensuring our company to emerge stronger, more agile, and more innovative. With the support of our talented team and trust of our investors, I am confident we will continue to drive profitable growth and long term value. Thank you for your ongoing support. I look forward to partnering with all of you on this journey. I will now hand over this call to Vinay to run through the entire key business highlights of the past quarter and Raj to provide an overview of the financial performance. Over to you, Vinay.
Thank you, Ravi. Good evening, everyone, and hope all of you are doing fine. We have uploaded our quarterly earnings presentation. Hope you have had a chance to go through the same. Let me start by talking about what sets us first for the performance. We're really seeing some significant ongoing changes across the broader CPaaS industry landscape. There's been a structural shift in certain parts of the market, particularly around how enterprises evaluate messaging channels, pricing models, and delivery quality. Against this backdrop, our performance reflects both the impact of these changing dynamics and some deliberate choices being played to prioritize quality of business over volumes. Now we are operating in what I would call a dynamic and rapidly evolving landscape, one that presents challenges but also opens up new opportunities for businesses like ours.
The ongoing softness in the A2P SMS segment combined with shifting customer preferences has created a unique business environment. As part of our margin-focused approach, we have actually consciously stepped back from certain low percentage gross profit margin opportunities in the A2P SMS business. These opportunities were not essentially aligning with our long-term view of profitable growth. This recalibration, along with reasonable factors in a few markets, contributed to a decline in our top line this quarter. Here's what I'm really pleased to report. Despite these revenue headwinds, our gross profit margin performance has actually improved. This really underscores our commitment to sustainable quality net growth and maintaining a strong focus on our profitability. While we witnessed certain challenges around the A2P SMS business, we have leveraged our omnichannel capabilities to unlock business opportunities by supporting enterprises' requirements across other digital communication channels.
It includes WhatsApp Business messaging, RCS, Email, and Voice. We have onboarded several large marquee customers through our omnichannel platform over the past quarter and are actively expanding our pipeline for these services. Let me talk about our partnership model for a moment. We are actively engaging with Google System Integrator to accelerate our go-to-market approach. We are deeply integrating our omnichannel platform with fourth Global System Integrator to reduce the time to market for these solutions. For instance, we recently completed the integration of our RCS platform with one of the largest players across the globe. On the product innovation front, we continue to focus on enhancements to our existing platform. We have now integrated WhatsApp Voice capabilities into our platform, which enables us to cater to an expanded set of use cases for our enterprise customers. There is our firewall solution.
We recently onboarded one of the largest mobile network operators in Latin America, and we will be deploying our AI-driven firewall and spam protection solution across various countries where this operator has presence. We have also witnessed green shoots of cross-sell opportunities where the Proximus Group companies have started creating sales pipeline for Route Mobile Limited omnichannel communication solutions, and this is currently more towards the APAC market. Certainly, even within the APAC market, we are also leveraging the extensive reach of BICS, which is a part of the Proximus Group, to strengthen our relationship with telecom operators across the globe. We are approaching several global operators to expand the sales footprint of our firewall solutions and MAP solutions. Finally, let me touch upon something that really is important for us. We are shaping our approach to the telecom API opportunity by participating actively in the broader API ecosystem.
We are looking to create new variant teams for digital service delivery. This will also help future-proof our business for opportunities ahead. Now let me walk you through some key numbers and really tell the story of our performance last quarter. During the quarter, we processed 39.3 billion digital transactions, which is actually similar to the volumes we processed in the first quarter last year and marginally higher than what we saw last quarter. The average realization per transaction was INR 0.27 , and this was largely influenced by a shift in our traffic composition, particularly a higher share of domestic messaging in India. India continues to be the largest market by termination and contributes 46% of our total overall revenue. We have maintained a stable trajectory across our next-generation product portfolio, and we are continuing to support enterprise use cases across these channels.
We have witnessed growth of 11.4% year-on-year. In this segment we have onboarded several marquee enterprises with evolved customer engagement use cases that we support through the IT-based messaging solution. On the statistics side, we continue to deepen our analytics space, firewall pennies, and integrated with telecom operators globally. On the people front, we added 26 new employees during the quarter and for speech, the exit. Operationally, we maintained continuity and execution strength across our delivery team even as we continued internal efforts to improve processes, automate workflows, and strengthen alignment across consoles. We are actively evaluating deployment of AR solutions to automate several processes and enhance efficiency overall. Q1 reflects the combined effect of industry source and our internal choices. The core of our business remains strong with the right capabilities, partnerships, and relationships in place.
We remain committed to disciplined execution and strategic focus as we move forward, while our primary focus is on reviving top line growth and hence sharing higher cross profits. With that, I will now hand it over to Raj to take you through the financials in more detail. Over to you, Raj.
Thank you, Vinay, and good evening, everybody. I'll summarize our financials and operating installment during the course of entering June 25 to corrosion the course Q& A. While our year-on-year performance was impacted by industry dynamics, our sequential quarterly results are encouraging as we delivered good gross margin expansion. Our Q1 revenue from operations was INR 10,508 million, which is a reduction of 4.8% year-on-year. This is largely due to the structural SMS market volume impact in parts of our business. This is partly offset by continued growth in routing synergies and non- SMS products. Gross profit in Q1 is INR 2,251 million, which is in line with the previous quarter. Gross profit margin is 21.4%, which is sequentially higher than the 19.3% delivered in the previous quarter but marginally down 0.3% year-on-year.
The upward trend on margins reflects our focus on customer mix and new higher margin customers. Operating costs year-on-year after adjusted effect and non-core items is constrained to a 4% growth at value increments, and one-off trade receivable write-offs are offset by non-recurrence of prior year incentives. Adjusted EBITDA for Q1 decreased by 16.3% year-on-year to INR 1,154 million and 3.9% versus the previous quarter. The year-on-year decline is primarily due to the revenue impacts described earlier. This all contributes to an adjusted EBITDA margin of 11%, which again is sequentially higher than the 10.2% seen in the previous quarter. Profit after graphic board petroleum items and FX was INR 835 million, which is down 10.3% year-on-year, mainly due to the close view of the steam capture as been reported EBITDA. With that, I will now hand over to the Q& A section.
Thank you, sir. Ladies and gentlemen, we will now begin with a question- and- answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, please press star and two. Participants are requested to use a handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Jyoti Singh from Arihant Capital Markets Limited. Please go ahead.
Thank you for the opportunity. I just wanted to ask you a question about what are the reasons for the higher other expenses and the increase in the tax rate, and about Proximus synergy like you mentioned during the management commentary that it is playing out well. I just wanted to deep down on that side and also when we can expect good growth and better margin expansion in the future. If you can provide some color on the messaging volume side, which is a continuous decline till earlier quarter, then I will ask more questions.
Other expenses was mainly driven by some large foreign exchange losses on remeasurements. Again, non-tax items primarily from that U.K. entity. From a tax perspective, yes, fees are slightly higher. Tax rates is a function of that kind of different profit geographies and some of the good profit generated in some of the domestic markets, which impact the effects of tax rates.
Jyoti, touching on the question regarding synergies. As we mentioned in the opening comments, we are seeing some initial traction around synergies. On the sales synergies, we've always had the cost, as we refer to as the cost of good synergies, which we have realized visiting the group. That has been active for over a year now. On the pain synergies, we are recently seeing traction, especially in the APAC market. In certain countries within the market, we are seeing one of the group companies within the Proximus Global ecosystem, which is able to create a reasonable pipeline for the omnichannel solutions which Route Mobile offers. In terms of monetization, we see some of these opportunities starting to contribute in terms of revenue. These are interesting green shoots where we are seeing success of what we had initially planned as part of the acquisition.
Besides that, on the other front, on the telecom or wafer side, we have certain areas where we are collaborating with BICS, which is again part of the Proximus Group, and we are leveraging. BICS is one of the largest wholesale operators globally and can have very deep relationships with telecom operators across the globe. The objective there is, for our firewall solution, we are leveraging our big hub and it is supporting our sales team in creating opportunities for t he firewall solutions that are part of the AI-driven firewall solutions.
Of Group 9 offers. Further, you know what we are also doing is there are some innovative solutions which are being developed and offered to operators. For example, the MAP system which is supporting RCS messaging. Once again we are leveraging Proximus to reach out to operators and deploy these kind of solutions for them. These are some of the areas where we are working closely within the group to unlock opportunities and hopefully we should see revenue momentum coming out of these opportunities in the near term. I think the next question you had was around growth and margin expansion. Unfortunately, in terms of revenue growth, in terms of revenue we witnessed a little bit of decline in the last quarter which was primarily due to certain customer situations which we experienced.
However, we were able to sustain or rather improve the gross profit margin that we were making on the business. This was essentially because some of the business that we lost was not really the highest gross profit margin business for us. In that sense the mix changed within the business and we experienced direct profit margin expansion. You had a question on volume decline tendencies is deeper. I don't think I got that very clearly.
On the messaging volume, which was earlier quarter, it was declining. What's the situation now?
On the volumes, I think we are flat. We are at slightly higher level than last quarter when we are at the level where we were last year. I think in terms of volume we are not seeing a hit. Still, the issue we are experiencing is that some of the international volume has been impacted. This has been replaced by domestic volume. The average pricing has moved with us, resulted in the revenue decline. We don't really have a significant issue on the volume size. The challenge rather is, you know, in terms of the realization and the revenue.
Okay, and one last question sir, like you should mention in the PCT that this time a 26 million employee has joined compared to 6,050 employees left. Just want your commentary on that side. Why so much, you know, a higher number of employees even comparatively joining? Is there the scenario which is not playing out very well with the Proximus and what is the issue exactly?
No, rather, you know, these are acquisitions that Route Mobile Limited had effected over the past several years. We have been rationalizing some of the teams across the company that we have acquired, and we have identified roles or responsibilities which can be centralized within India or any other region where we have operational presence. For example, finance and accounting can be supported from one region, and we have done some rationalization on that front. Plus, there were certain businesses which did not deliver the level of performance that was expected. What we would like to assert is, the team that we have today, as we also mentioned in the commentary, is able to support all the business processes and is driving the business at the scale and level that we are expecting it to deliver. We are not experiencing any challenges in terms of business continuity or operations.
It's more of rationalization or natural attrition that we are facing.
Okay, thank you, sir.
Thank you. The next question comes from the line of Nikhil Chaudhary from Nuvama. Please go ahead.
Yeah, thanks for the opportunity. My first question is on revenue decline. In your presentation, you have mentioned that you lost one large digital-native client which started directly sourcing from MNO. Rajdip, we haven't seen clients directly partnering with MNO in the past, especially the large clients. Is it a new trend which is starting, and can you quantify the impact in this quarter?
Hi Nikhil, I can see this. A customer which we're talking about has a now new trend would love to the few customers like they love to work with the operator. Not every one of them, and I think the reason they wanted to move to operator directly is because they have a new ecosystem within the company believes that having direct partnership with operators, talking about SMS as one option with operators, they talk about data, they talk about other, what do you call them, services o f operator to be used as a b undle deal with them. I think SMS is a part of their entire bundle deal when the IP c ould go to operator.
I think they want to just get more leverage on their relationship with the operator so that they can buy and sell more product offering with the operator. That's a new trend, but it's not with almost all the customers. One of customers only.
Oh sure. I mean, let's say if 100,000 customer can do it, what stops other customer from following the same trend? I mean, it will impact our business model.
No, not at all. I think you need to also understand, Nicholas, I think I have already mentioned this in the past, when there's a last customer who's using our platform for Route Mobile, they're not using for one destination. Right. They use for 2030 destination for various reasons, plus they don't want to go and do a tie-up with all the operators globally to get into those illegal framework, understand the legal regularity issues over there. I think most of the customers prefer to work with aggregator and that is a trend. I think this one customer has definitely changed their mindset because of that, multiple services which they are using from the operators right now, but no trend from any other customers.
We have seen similar thing happening with our peer. What we understood is there is some level of compensation or subject, right? When there is a transfer of such large customer to telecom operator, did we get certain amount for this transaction? Any benefit or is. I mean.
Yes, no, there is a benefit because our firewall, suppose our firewall is there with an operator, and that particular customer moves to, say, operator directly or indirectly. We also make margin because of our firewall place within that operator, and there is a revenue share with understanding we already have with operators. We will definitely get little higher. Direct margin with that customer indirectly.
Got it. Rajdip, c an you quantify the impact both on revenue as well as margin from this customized change in sector of contract?
Vinay, do you want to quantify that.
Yes, sorry, Nikhil. We don't want to call out specific customer level information. That's difficult to share publicly, you know, because it becomes a new competitive intelligence. We want to refrain from sharing customer specific details.
Got it. The next one is on new product revenue. New product growth had been simply coming down, right? Raised a low double digit now one of the lowest since COVID. I mean what's happening? It actually declined few and through this quarter. What's your pipeline and what's the outlook on that in that particular segment?
Nikhil, that's a fair question. The thing to understand there is WhatsApp is a significant component of the new product revenue segment and WhatsApp, a lot of that business we do within India. WhatsApp has revised their pricing for the market, which also results in us revising the selling price to remain competitive. On the volume front we have definitely seen growth, but on the pricing front, there's been dilution of almost 14% on the pricing. So. That is where despite volume growth you will not see some infinite revenue growth. Once the pricing stabilizes, we will again see higher % revenue growth as well on that segment of the business.
Yeah, I understand, but I think the pricing revision happened about 2, 3/4 back if I'm not wrong. What justified decline on June Q basis? Why is it not picking up when the volume is improving?
There is a little bit of timing effect as to when we need to perform the changes to the customer. We have been kind of managing the pricing and gradually passing on the benefit to the clients, and that is where, to stay competitive and retain the business, we had to take that risk in this quarter.
Just on yearly guidance timing, we started with relatively weak notes. Can you give us some color about the growth in margin in FY 2026?
Thank you, Nikhiin. I think we are not sharing any guidance as I said even last quarter, but I think. One thing I can assure you about. Me coming back as CEO Route Mobile and I think there are three areas which I really want to focus now. One is growth, cost optimization, and synergies. I think we definitely have these three stories which I'm leading now myself and I want to make sure there is definitely a synergy between Proximus and Route Mobile to create more value at Route.
While cost synergy is definitely yes because we are a platform play company and we really need to understand how many people plus the AI implementation within our ecosystem should be done and growth is something which I'm working on with special focus on the new logos and new customer especially on telco product and RCS. I think these three things I can talk to you all but in terms of guidance probably I might. Not give the guidance.
Got it. Thanks a lot for taking my question, and congratulations for your thanks.
Thanks.
Thank you. The next question comes from the line of Nihar Mehta from Pay Capital. Please go ahead.
Hi, I just wanted one question on the slide on customer cohort, right, the top of the funnel of large D site $15 million and $10 million, there has been a significant decline from eight customers to five and from nine to seven. Is there a specific churn that has happened there or what are the causes of such a decline?
One of the largest customers is, as we mentioned, one of the digital-native customers which we had, where they are going directly to the operator and unfortunately we lost that revenue, which has become a significantly smaller customer now. Another one was one of the large financial services clients that we had in India where we had repricing. This is typically done through a bridge process and in terms of the competitive landscape, the pricing was revised and accordingly our revenues were impacted because of the revised pricing.
These are two large ones that we had. Other than this, there were certain aggregators where we had a revenue decline. Mixer Messaging, which is one of our portfolio companies, catered largely to aggregators and some of those aggregators are contributing significant revenue and their revenues got impacted with their end customers probably transferring lower volumes to those aggregators. These were primary reasons. The one which is difficult to recover is the large digital-native which has gone today. On the other, we have an opportunity. I mean, it's a difficult market, but we can create opportunities where we can have a plan to create a recovery plan around catch loss revenue and gross profit margin.
Understood, thank you.
Thank you. The next question comes from the line of Pritesh from Lucky Investments. Please go ahead.
I didn't understand one comment of yours about the GP improvements with the, w ith giving away c ertain business which are low margin. You know when you see your EBITDA on a YoY basis, GP number, the GP has declined more than the volume, m ore than the volume decline. I was wondering how should I understand this.
Are you referring the message volume or the revenue as volume? Sorry.
You guys have given a billable volume number.
Yeah. Basically, you know the way to look at it is the volume does not directly translate into revenue or GP because the volume in every country comes at a constant selling price, and the cost price in every region and country will be different. The mix of the volume, which country is contributing, how much volume will raise the revenue, and how much margin or, you know, how much markup we are able to do in that specific country on that volume will define the GP. Directly linking the volume growth to GP in this article of year significant change in the volume.
Sir, your voice is not very clear. Can you just make it loud and clear, please?
For the answer that you can hear me.
Yes.
Can you hear me now?
Yes, if you can talk a little slower i s good for us. Okay.
Please go ahead with your question. Unmute yourself in case you are on mute.
Hello, can you hear me?
Yes, yes, please go ahead.
I'm just in this interpretation of your, which means there has to be.
Sorry to interrupt , Pritesha you're breaking up again. Please, you know, relocate yourself to a place where you get better cellular network and use your handset mode in case you are using the speaker mode.
I am using handset mode.
Okay, please go ahead with your question.
In this, the answer that you posted, there has to be a significant shift in the volume mix between quarter one and quarter two country volume mix. Is that the case?
Within country, it's a little bit more complicated because within the country also there are two price points. Most of you know, some of the countries like India, we have a different price point for international, different for domestic.
Why I'm writing there's a +5% YoY volume growth but there's a - 10% GP decline absolute top, so I am posting the question from the time.
You're saying YoY, right? One big impact is t he digital-native client, which was an international client. Plus, we also had that contract which we signed with Vodafone Idea in India, where we have a discounted pricing which was not available in Q1. We went live only in July, around August, and that is where we got the benefit in FY 2025, which was not there in the previous year. If you compare, YoY did not have the Vodafone Idea benefit in that quarter, so that again contributed to the direct margin expansion profit.
Okay.
Does that answer your question? Pritesh.
Yeah, thank you.
Thank you. A reminder to all participants, please press star and one to ask a question. The next question comes from the line of Siddhartha from Vittae Money. Please go ahead.
Hello, good evening. Thanks a lot for the opportunity. My thing would be, you know. You highlighted on multiple period con calls that the global CPaaS industry is going through a downturn, and when that industry was growing well, you were the one who was outperforming. Since the broader industry is not doing that well, you think not able to be that competent. I just want to understand how the industry would play around going forward and how the projection would be for Route Mobile and the potential rebound. Could you just give u s any, you know, some advantage and enlightenment.
Yeah, I think it's a good question, Siddharth. Let me just talk about Route Mobile. I will not have talked about the competition about the industry. As a software global, if you see the kind of combination we have between Telesign and Route Mobile and BICS and we definitely talk about new product lines, platform play as a company where we're talking about RCS a s a one solution along with a MapS erver, we're talking about the omnichannel solution along with firewall solution. I think probably we are now going, reaching out to multiple customer operators where we are not looking at just enterprise. As one segment for our growth. We're definitely looking out telecom operator also a s a growth area for us.
Okay. Does that work for you also? Fine. Sharing, can you just give us a, you know, percentile outlook of the going forward?
As already mentioned, there was a large firewall deal we won in Latin America, I think, and probably there are many more discussions we are having with multiple operators towards RCS and MapServer. These deals are going to be finalized in coming quarters, and you will see the impact of these in terms of revenue and margin as well.
Okay. I'll just end my convert for further follow up of two questions. The last you mentioned that the 365squared has rolled out and if expected do well, they know since it has a lot of synergy from Proximus Global set of customers. Just want to understand how it is doing and how you know would be going forward, and the revenue contribution.
This firewall deal which we have won is a combination of BICS and 365squared. It is a relationship of this which has helped us to win this contract. I think 365squared is doing fantastically well with the great pipeline they have right now. I think they're also closing some large accounts very soon.
What is the percentage of revenue that will potentially contradict the top line up front?
Do you have that number right now?
We are not excluded in the past in public domain. Just hold on.
I think we would still prefer not to disclose. As I mentioned, there are certain last contracts which we already won and certain pipelines, if you have, will definitely contribute in overall growth of Route Mobile. That's what I can share with you right now.
I'll end my question with the last question that I have. The recent management changes is something that I have a query on, where I want to understand how the person who has currently released, how has Route Mobile management performed overall under his governance, and how the recent changes in the corporate management could signal the future of the Route Mobile enterprise.
Siddharth, I think I'm back. CEO, and I think I know this e cosystem for last 21 years and Gautam has done fantastic job in last seven years with Route Mobile in various role. I think whatever he has delivered as an individual capacity is a fantastic for the growth. I think I'm very thankful to Gautam and what his role and responsibility with you delivered in last seven years with us. As far as the new management is concerned, I think the new management is very much capable, smart and they all have a simple approach of growth and they believe that the company which we as a group of oil has a huge potential in the current scenario where the markets there is a headwind. In spite of this headwinds we believe that the kind of product line which we have, we will definitely come emerge as a winner. It may take some time because it may take some time but definitely we have a vision to achieve new lights.
Okay. Okay. Thanks a lot for the answer.
Thank you. The next question comes from the line of Dipesh Mehta from MK Global Financial Services. Please go ahead.
Yeah, thanks for the opportunity. A couple of questions. First about the ILD business. Can you provide some sense how ILD business is playing out? It remains rich, but if you can give some more details around it on ILD business. Second question is about sequential, are we confident, let's say, sequential revenue growth reasoning in the business because now we are in YoY down. Just to get sense about some of the factors, headwind which you say from sequential perspective, I think some of the factors unless we have any incremental headwind, particularly with the large account where you said it is moving to direct MNO sourcing, unlike you have incremental impact. If you can give some sense on sequential growth projection. Our third question is about sales generation. If you can give some sense about operating cash flow or operating cash generated during the quarter.
On ILD, I'll start up and then Rajdip, please add in. ILD, as we discussed, depends, was one key customer where we were impacted. Other than that, we've not seen real challenges with our other large ILD customers that we have. We onboarded a few new clients as well where we are seeing revenue trickling in now, but these are large clients who can contribute significant volumes moving forward. Although there has been an impact in the last quarter, we believe it's not like end of the story, but we need to replace it with other customers who still are sending communication into the Indian market through TEDXML funnels. Also, we are opening up the other corners as well for some of these clients. Although we have impact on certain select customers, there is still potential and we are tapping into new customers too. Cover up those gaps. If you want to add to that.
On the operating cash flow, it is the easier one. On a normalized basis, we would have done around 120% of CFO in the last quarter. That is where we are, and in terms of the return of revenue growth, we believe we've had significant impact in the current quarter sequencity, and as Rajdipkumar already highlighted and we covered in some of the opening comments, we are working on a pipeline. We have several initiatives which are in progress. For example, the firewall initiative, the MapServer, and other initiatives around the telecom solution. The benefit we get from the telecom solution is that there's also potential to generate on the back of it A2P SMS revenue because we can position to be a preferred partner on XU or an exclusive partner when we deploy the excellent.
We have certain levels that we are pressing for, reviving rent growth or in whatever shape and form it comes. We hopefully should not have certain decline from where we are. We should see revival there in terms of what we are fairly confident about or what we believe s hould hold up m argin percentage that we have. We do not have any one-time items which will reverse or fall out in the future. This will hopefully be sustainable as we move forward.
Just on the revenue part, I think I request some more this year. We might have a more latest performance, something where we are in Q1, but if one looks at the next two or three year perspective, growth project in the business can come in and give something. Are we confident we are returning back to let the mixing kind of growth profile in this business, or considering some of the structural changes which are playing out, even next three or four, this seems to be more optimistic.
Yes, I think there is definitely a plan and I think I'm going back as CEO of Route Mobile Limited. I do have some synergies and plans now to execute. You will definitely see some growth coming up in coming quarters, that I can assure you. There are a lot larger synergies. We are working with Proximus Global as a group, you know, being in partnership with Salesforce or larger companies like Infosys or Tech. I think these companies are also going to contribute in a big way in terms of our revenue growth. We are working very closely with companies like these where we believe that we can be the partners for digital communication and we can serve their customers. These alignments are very much there and they're now at the final stage of some of the integration which we are already doing with them.
We are definitely looking forward to growth and I think that on some of the customers, some of the pipeline, and some of the synergies which we have, are definitely going to drive our growth story.
Lastly, about the new product. Now, partly you answer in one of the earlier questions, but where I look, let's say, what's their pricing correction and volume? Typically, when some of these channels, which are relatively new, even volume pricing equation changes, underlying growth should not have any material challenge. Right. It might be, let's say, slower than earlier. Just want to get a sense, RCS, let's say we indicated even two years there, whether we are able to monetize it well across countries.
We are indeed the pace. I think that is exactly where we as a company, when we talk about platform or Netflix company, and any customer coming to me has option to choose channel which they want to communicate with. Right. If the customer is willing to use RCS to experience instead of SMS, I think we as a platform already have the option for them. At the same time, we have WhatsApp, email, and address solutions. There is a trend happening right now in the market where customers are trying to evaluate different channels and probably they are finding more outcomes with new channel engagement to these channels. I think we are at a very early stage still on these new channels adopting and probably this awareness in the market about RCS and WhatsApp is growing fairly well. That is exactly where we look at in coming quarters, how the entire ecosystem is going to drive the volume and the revenue growth.
Thank you. A reminder to all participants, please press star and one to ask a question. The next question comes from the line of Kaustav Bhagna from Boundless Management Solutions. Please go ahead.
Yeah, you know on the previous call the management spoke about two plays in this business, really the messaging piece. The platform play. They spoke about how the platform play is a future high margin driver. Could you explain really i n detail to my understanding the platform play, exactly what it is and how it will become a high margin, in detail. As much detail as you can.
Yes. Okay, I will try to film this. When I talk about firewall solution, custom firewall solution we deployed with operator and where we charge based on managed services along with transaction. Yes, operator pays, pay us for transaction basis plus the managed services charges. This is complete DM to work which i s a completed path model.
At the same time, when we talk about RCS platform, that's again a managed services and plus a task model for us. When we talk about the CPaaS in a box kind of solution where a single operator looking out to enable their customers to offer WhatsApp Business API or other channels, we can deploy the entire system on-prem within the operator so the operator can enable their customer for use to start using this channel under their right level platform. These are the certain solution which is completely 100% margin kind of again where we believe that more deployment of this solution will definitely help Route Mobile to increase our margins. Okay, okay. You're talking like the platform play, many of Voice solutions, RCS, all of these things.
I mean, such a genuine question, you know, I know you all are for some reason refraining from talking about what's happening in the CPaaS industry because I guess you've already spoken about it in the past and there's no point wasting time on that. Just wanted to understand for the core business, the business SMS business, which I guess was also mentioned in earlier call, unrealistic realizations in the past due to, you know, whatever issues that were going on in the industry. Now with that leveling out and coming back to realistic levels, your new business would have to grow meaningfully for you to show incremental growth. I understand you're not giving numbers, but in this new business, these firewall deals, what else is there? Could you give some sort of more clarity in terms of how this shift in business will actually end up leading to overall growth in the business?
You need to understand one thing. The digital landscape itself, digital payment landscape, platform landscape, I think digital adoption is growing multifold every single country right now. There are multiple channels being used to store the digital requirement for the customer, right, whether it's WhatsApp, RCS, or SMS. There is no more SMS as just one single channel anymore. There is WhatsApp and RCS because people think of conversational-based channel more than SMS. SMS still has a lot of replacements where people still believe that SMS can be used for their use cases. There are many use cases which are getting involved on WhatsApp and RCS. That is the entire growth story. I still believe that we are very early stage on RCS as well as on WhatsApp. Okay.
These channels will definitely see every Google customer required one modus channel for better communication with their end users. That is where I think the adoption issues are growing, and that is where we believe that the more use of these channels will help Route Mobile to grow. In terms of firewall solution, i n terms of our other solution, I think as I already mentioned, the synergies with BICS, they are one of the second largest in terms of roaming business in the global market, where they have relationships with all MNOs and operators globally. I think we want to leverage sort of partnership and connection with them so that we can reach out to all these operators directly as partner with them so that we can sell our product directly to this customer.
I think one of the firewall which we won recently is because of this tenancy, and that is exactly where we are trying to build overall VPN for Route Mobile right now.
This digital identity piece, which is for digital fraud, etc., which basically Telesign is not the big portfolio there.
We do, as I think has already mentioned, about the telecom API play, right. That's a very big initiative we have in house now at Route Mobile as well as Proximus Global. I think that telco API is one initiative for this, for I think we are already working with Telesign to get those API in Indian market. We really need to understand the current.
Market scenario how the customers are looking out this API to be used. We are definitely in touch with various customers. We are doing from pilot testing. There are some sandbox installations already being done in India with few customers. Both testings are getting done, but it's a longer process because there are lots of security aspects you have to clear, and to close that customer sometimes six to six months or every nine months. There are certain things which we already working on right now. We really don't want to call it out the revenue and the potential. Yes, as a requirement is concerned, as a company we are very much focused on digital identity product which Telesign has as a suite.
Okay, great. Thank you.
Thanks. Thank you for the question.
Thank you. The next question comes from the line of Jayshree Bajaj from Trinetra Asset Managers. Please go ahead.
Thank you for the opportunity. My question is with growing geographies diversification, especially in America and Europe, how are you managing the regulation compliance and localization data traffic techniques like VSSI and all, and is this adding to the cost structure materially?
Definitely. Route Mobile Limited is a GDPR compliant company and we have server installations to every single aspect. As far as the customers are concerned, I think we are 100% GDPR compliant company from last so many years. I don't think there's any challenge and I don't think there's a cost impact or involved anything on that.
To add to what Rajdipkumar is saying. We have been operating in geographies with customers across different industry verticals. We cater to banks in the Middle East, banks in Latin America, and banks in India, which are the most rigorous in terms of compliance requirements. The fact that we are able to serve these customers over the year means we are able to comply with regulatory requirements in these different countries where we are operating. So, I think we understand that part of the business, and we have been able to operate in complete compliance with all these multi-sovereign sections.
Thank you. My second question is the revenue generated from the retail and travel and hospitality is approximately 2%. Are there any specific efforts to diversify the industry mix, or are we just focusing on BSSI digital native and CPaaS partner ecosystem?
Our product is, you know, fairly industry agnostic. The slide that you see there is more in terms of which industries are really using that communication more aggressively or, you know, the ones who are using our platform more aggressively. We do have a few solutions which are verticalized. For example, banking, we have developed certain plugins and layers which can be used by banks. Largely, you know, it's not like our solution or platform cannot be used by a particular industry or would require a lot of customization or specialization for a particular industry. Rightly pointed out, you know, internally also we are looking at designing these vertical components which then make the product more compelling for those industry verticals.
Other than that, you know, within the retail space as well, we have some of the largest global brands who are using our platform and, you know, even within travel and hospitality we have some really renowned brands who are using the platform. It's more about where we are successful, but it does not really hold us out of any vertical in terms of design of the platform.
Okay, thank you and all the best for the future.
Thank you.
Thank you, ladies and gentlemen. That was the last question for today. I would now like to hand the conference over to Mr. Raj Gill, the Group Chief Financial Officer, for the closing remarks.
That's right. Thank you, operator. Thank you for all your questions. We appreciate your continued support, and we look forward to engaging with you again. Have a good weekend, everybody. Bye for now.
Thank you, ladies and gentlemen. On behalf of Route Mobile Limited and Concepts Investor Relations, that concludes this conference. Thank you for joining us. You may now disconnect your line.