Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Blackbuck Ltd (NSE: BLACKBUCK) Q4 2026 Earnings Call dated May. 19, 2026
Corporate Participants:
Rajesh Kumar Naidu Yabaji — Chairman, Managing Director and Chief Executive Officer
Satyakam — Chief Financial Officer
Analysts:
Unidentified Participant
Presentation:
Operator
Good evening ladies and gentlemen. Welcome to the Q4 and FY26 earnings conference call of Blackbuck Limited hosted by Radhi Capital. As a reminder, all attendees will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. If you have any questions, please feel free to press the raise hand button. We’ll call you on in turn and unmute your lines so you can speak. Important note, if you need to ask a question, please ensure Microsoft Teams has permission to access your microphone when you log in.
Otherwise you will not be able to unmute. Please note that this conference is being recorded. Kindly also note that the audio of the earnings call is a corporate material of Blackbug limited and cannot be copied, rebroadcasted or attributed in the PR media without specific and written consent of the company. Please note that anything said on this call that reflects the outlook towards the future, which can be construed as a forward looking statement, must be reviewed in conjunction with the risk that the company faces.
A copy of the disclosure is available on the investor relations section of the website as well as on the stock exchanges. To give you an in depth understanding of the company and answer all your queries we have from the management side today, Mr. Rajesh Kumar Naidu Yabaji, Chairman, Managing Director and CEO and Mr. Satyakam, Chief Financial Officer. I now hand over the conference to Mr. Rajesh for his opening remarks. Thank you. And over to you.
Rajesh Kumar Naidu Yabaji — Chairman, Managing Director and Chief Executive Officer
Thanks Vinita. Are you able to hear me? Is it clear?
Operator
Yes, yes, yes.
Rajesh Kumar Naidu Yabaji — Chairman, Managing Director and Chief Executive Officer
Cool. Thanks Vinita. Ladies and gentlemen, good evening. Welcome to our earnings call of the financial year 2526 end and for the Q4 of FY26, you know, as in every earnings call, just you know, re articulating what we’re trying to build at Blackbuck. Blackbuck was founded about 11 years back to solve the trucking problem of the country. Any space you pick up within trucking has massive opportunities, massive inefficiencies. Because of the fragmented nature of the space and application and use of technology.
There are possibilities to lift it out and put it in an orbit where a new world of trucking for India could be imagined. That is how the whole journey of Blackbuck started. We have toyed around with a lot of experiments in this space as we speak. Blackberg’s definition today is nothing. But all the experiments, all the successes we’ve got over the last 11 years which has, you know, taught us a lot, we’ve learned a lot and what has become is the largest digital Platform for truckers in the country.
We have close to about 8 and a half, 8, 8 and a half lakh monthly transacting customers on an average across the whole financial year, which roughly represents at a India level in excess of 25 to 30% close to of Indian truckers using this platform. And they use this platform very deeply because the platform we have built has so many use cases solving for the trucker that he ends up spending 45 minutes on our platform or our mobile app Blackbird daily. And because of the nature of the business, nature of the customers we have, we’ve got a very strong offline presence having over 10,000 touch points on the ground through which we service, through which we acquire and retain our customers.
That’s the, you know, crux of what BlackBook is and what we’ve built. Diving into summary of numbers of last financial year on a gross income level we’ve done close to about 715 crores in total income which is growth of about 55% on a year on year basis. On a EBITDA basis we have done close to 167 crores which is an 80% growth on a year on year basis. This is our first full year of profitability at a pat level. We have done 160 crores in PAT in the full year financial FY 2526. Not only the financial numbers, we continue to compound on our operating metrics which are the top of the funnel metrics for our revenues to grow and compound.
We grew in our transacting customers by 13% on a year on year basis to close to 8.2 lakh monthly transacting customers across the whole year. Users who use more than two services, who are our power users, we’ve compounded at 22% year on year. That’s why you find the revenue to be compounding much stronger than the transacting customers because customers use more and more products on the platform. One of the leading metrics on payments vertical is tolling. The GTV of tolling for us in the last full year grew at about 27% on a year on year basis in a very matured and penetrated industry largely driven by a strong product play and a distribution play.
Speaking about the core highlights of this growth, more talking about the recent quarter of FY26 the last quarter Q4 FY26 year on year growth on the Q4.26 basis we did about close to 52% on a year on year basis. And if we split that into core and the newer businesses or the growth businesses. Core businesses grew by about close to 30% on a year, on year basis in the last quarter. On a full year, 34%. This business obviously, you know, on the back of the, you know, the payments business which is tolling business grew at 27% which we spoke about in the GTV.
Growth was 27% which is forgot in the last slide as well, which when you compare to the NETC CV growth which was about 16%, so still driving 11 percentage points, you know, delta over the industry growth largely because of a strong product and largely because of the strong distribution overall. Business definitely has grown at a higher level largely because a stronger growth in the telematics business which continue to deliver strong sales numbers. Under telematics business we have different product categories.
Where there is a basic gps, basic vehicle tracking service, then there is a AIs specialized vehicle tracking service which is largely driven through mandates. The sales of the AIs vertical doubled during the last quarter which was largely driven by mandates and largely driven by a strong distribution and a product play. So that’s the narrative on the, you know, core business coming to the growth businesses on, on a year, on year basis. They grew roughly close to about 300% on you know, in the Q4 of last year.
Right. Largely there the gross revenues are, you know, composed of the vehicle finance business and the superloads business. Superloads business. The narrative continues to be the same. Our matured or let’s say our first hubs of Bangalore and Hyderabad. We continue to scale, continue to double down and continue and these continue to show signs of strength from a unit economics from a scale perspective. We had updated to you couple of quarters back that we started our business in 10 new cities. Most of those cities or all the cities are growing much faster than the earlier established cities.
And largely because of the network effects of existing customers relationships which we’ve activated in the older cities, they have translated to the business for these cities directly and the supply base which was activated on super loads in the existing cities continue to get activated, continue to be leveraged and utilized in the new cities as well. So that narrative continues to be the same and we’re doing everything it takes to grow that faster. In the vehicle finance business which is under the growth business, a bit older business compared to superloads there.
This last two quarters were very strong in terms of disbursals for that particular business. The previous quarter we delivered a growth of 30%. On top of that, the disbursal further grew by 25%. Definitely a seasonally strong quarter for that business. But on top of that strong execution has led to driving this growth. Good part about the vehicle finance business under the growth business umbrella is that as you all know, we basically are investing a lot of money in our growth businesses. A lot of money which we generate in the core businesses.
We are investing in the growth businesses vehicle finance business probably by the end of this financial year would no longer be in the investment mode and would start probably churning, you know, cash flows, which will also enable us to move that into a core business kind of a trajectory from a narrative perspective moving forward. Commentary on profitability broadly following the trends of the Last, you know, 3/4 overall yearly growth in EBITDA has been at 84% which has moved to 190 crore trajectory which we spoke about on a recent quarter basis.
There is the growth in profitability is 30% on a year on year basis and we delivered a 50.2 crores of adjusted EBITDA in the last quarter. Largely the narrative, if you cut across the momentum and the quality of revenue growth and profitability growth has largely been consistent compared to the last eight to 12 quarters in the core businesses. Regardless of a bit of unfavorable macro headwinds in the last quarter, we continue to execute and deliver this profitability. And even if you look at metrics like operating leverage in terms of translating the revenue growth moving into profits, most of that is holding good in the core businesses as we speak, moving into the newer businesses, that’s where we continue to step up our investments.
Because these are in the rapid expansion phases. We are conducting multiple experiments beyond the supply side, be it on the demand side, be it for faster scale up, be it for quality customer service, be it for maximizing profitability, be it for blitzscaling in certain customer segments. We are taking up most of these experiments parallelly, which makes it imperative to add teams, add product and technology team members. This is also the area of strong investments in AI for us because Superloads probably will be one of those businesses which will be an AI native business for us.
As we strongly execute this, you know, vertical one area. We wanted to give a heads up. I think this is something which is not a, you know, hidden topic, but everybody knows about this probably being in the, you know, heavy truck movement, intercity movement, which typically is can feel the headwinds maybe quite early on compared to others. Right. So we believe that the West Asia conflict, which is a widespread conflict not only for us but for the whole Indian economy, will have short term headwinds with Anticipated drag on trade movement and which obviously because most of our revenue comes from flow throughs, but we continue to climb on our revenues that will be consistent but maybe create a drag on our short term growth, long term growth profile, long term projection of how operating metrics will play around, everything will largely remain same.
Long term retention rates, long term ARPU rates, everything will be consistent. But I think in the short term there would be some headwind which we need to be watchful of, we need to be prepared into and we are actively doing that. One small narrative on that which is a very direct impact is you know, as you know that we make, we have a fuel business which goes on which is basically built on top of the loyalty program which OMC’s work on. And they have suspended their loyalty program temporarily.
That’s a bad part. The good part is this has happened. A bit of hiccups on this business segment has happened in the past as well. And some of this takes a bit of short time, then it comes back. But yes, so some of these headwinds, you know, minor headwinds we’ll be facing, some of this impact has already been absorbed in the last quarter’s profitability and some of this impact will show up in the next quarter as well. But again, reiterating, none of these is a structural change or none of these impacts.
Long term customer acquisition, neither long term customer retention, neither ARPUs. And yeah, so that’s the broad narrative on the business. Giving you a broad highlight on the P and L, as we have narrated already on the top line, 46% on a quarterly year on year basis. On a full year basis, 55% net revenue growth, 31% on the recent quarter. On a year on year basis, adjusted ebitda growth of 30% and full year. As you can see here, adjusted EBITDA is 190 crores and PAT is 160 crores. And we’ve always given this narrative that our adjusted EBITDA mimics the free cash flow from operations.
So in the full year of financial year we’ve delivered close to 185, 190 crores of free cash flow, which has been a consistent trend of EBITDA to adjusted EBITDA to free cash flow conversion for us. And that’s again on a distributed EBITDA basis, a growth of full year, growth of 84% on a year on year basis. Broadly. Zooming out and giving you a four year view broadly from the timeline we went public so that you know, you guys would be, you know, it’s easier to look at these trends because we articulated, you know, that this is sort of the business model which will, you know, be playing out.
So if you can see on a registered ebitda basis through FY23 where we were in a strong, strong user acquisition mode, we continue to be in a strong user acquisition mode. But the annuity revenues had not played out till then and that converted into roughly close to negative 6 crores in FY24 and then turned around a strong profitability on it just a bit at 103 crores last year that has moved up to 190 crores. So that’s a Filip if of close to 400 crores. 360, 464 crores over a three year sort of a time period.
Same thing on Pat is even more stable. Start to observe from a negative of 290 crores in FY23, that’s a 450 crores turnaround in profitability in three financial years. And that has been the trend. And as we have accelerated in FY25 26 into newer businesses, we are investing. The core businesses will have a continuing follow through trend as you can see here. But the growth businesses will consume money and in the overall basis we will have a balanced trade off of continuing to churn profits from co businesses and continuing to invest in the future so that, you know, we probably end up building a massively large company and massively transformative company in this space in the long term.
Reiterating the strategy as I always explain, I personally take a pride in executing the same strategy every year because that also gives a testimony that the strategy articulated a year back largely, you know, was profound and sound and it helps us, you know, have a longer run through and our decisions stick with the test of time. So strategy largely remains same that we have core businesses on tolling, fueling fuel, sensor vehicle tracking as GPS and multiple experiments within the core businesses.
The the new businesses under core here the key focus will be to continue to compound on profitability which will be enabled through operating leverage. We’ll continue to expand our market share as the landscape continues to evolve, you know, because the space is attractive, continues to, you know, will continue to attract few players here and there. So we will keep track of that and we will not let the long term picture, you know, go out and we will, you know, keep investing in this business as well.
And you know, while we’ve delivered consistent operating leverage in this business in the last 2, 3/4 also we’ve also stepped up Investments in core businesses as well. Last time I had highlighted that, I thought I will remind that again in the growth businesses again the playbook is same. We are betting on super loads and vehicle finance over here and classifieds continues to grow and we have you know, an armory of new experiments to continue to do. And these are the businesses we believe in with, with a very long term potential.
And, and as we execute the roadmap continues to get clear. The confidence on execution in these businesses continue to, you know, improve and you know, some of these businesses of God’s kind and we execute well, we’ll move into the left side of core businesses as we move into the next year. So yeah, so simply put, doubling down on execution in the core and turning more and more innovative and stepping up investments on the growth businesses. That’s a summary of the strategy for the next year as well.
We will pause here and we can take questions. That’s from my side. Yeah,
Questions and Answers:
Operator
Thank you. We will now open the call for questions. Kindly raise your hand to ask a question. We will unmute your line. Please announce your name and organization name before you ask a question. And as a reminder we request all the participants to restrict themselves to two questions and come back in the queue. The first question is from the line of Atul Borse. Atul, please go ahead, unmute your line.
Unidentified Participant
Hi team, hope you can hear me. Thanks for the opportunity. My first question is basically on the super load business. While you have mentioned in the PPT that Bangalore and Hyderabad are showing strong unit economics. Do you want to elaborate a bit on this? Like are these hubs operating on break even? Any quantifyable metric that you can share or highlight? That’s my first question.
Rajesh Kumar Naidu Yabaji
Yeah, I think largely it depends on the, you know, it’s a technology business enabled through manpower. Right. So the cost, the direct cost of business are manpower costs. So largely upon tenuring of manpower, you know, people hit breakeven periods. So more tenured manpower is definitely, you know, definitely, you know, returns money to the company newly had. Manpower does not. So from that point of view it’s consistent. Right. And upon continuous scalability the equation continues to hold. So that’s the strengthening unit economics part.
And you know, when you launch a new business, you first reach an ability to plot a P and L for the business in the future. I think we are able to do that strongly and yeah, I think that’s all we can share at this point in time. Yeah,
Unidentified Participant
Just on that face, are we continuing to invest in our existing cities as well for the manpower like we’re increasing manpower in those. Yeah, we are. We are.
Rajesh Kumar Naidu Yabaji
Yeah. We, we continue to scale teams rapidly in the, you know, existing cities also if we stop that we can side break even very fast. But that’s not the objective.
Unidentified Participant
Okay, understood. And in the vehicle financing please could you share some color on like what’s the book size as of FY statistics, how much is on our books or let’s say dispersal growth or ticket size growth. Any metrics you want to highlight?
Rajesh Kumar Naidu Yabaji
Yeah. So close to 600 crores. Is the assets managed by our partners overall like partners in our books, about 10% ish is basically on our books. Their strategy remains constant. Basically whenever we onboard a new partner for the new partners confidence, we do a co lending book together. And any new experiments. If you see our book, large part of the book is new experiments as well. So anything we want to launch or we want to see we first perfected on our book. So our book we will only use for newer experiments and to probably launch new partnerships.
So we continue to build the vehicle finance on an asset light model as we have always articulated the last three years. The strategy remains same. Yeah. And as you always understand because we get a sourcing fee and then we get a you know like let’s say operational fee continuously. So as in when partners make more and more money from the book, the revenue share, you know in revenue, absolute revenue made by us also increases. So that’s the broad nature of this business. And the fixed costs, if they get covered out, this business will enter the breakeven phase.
Unidentified Participant
All right, if I can just squeeze. Last question. You have seen the improvement in your working capital days mainly because payable has increased. Where is that coming from? Is it like mainly because of the super loaded business?
Rajesh Kumar Naidu Yabaji
Yeah. I’ll ask Satya to take this question.
Satyakam
Yeah, yeah. Working capital days Atul always has been pretty robust for us. If you can see. No, no receivables exceed more than three months. Everything comes in like more than like some of at least 50% of the revenues are received in advance for a year. If you look at the telematics business on the, on the other businesses it’s less than 30 days on payables. There are, there’s nothing much that is there. It’s a very small number. Some of the let’s say purchase of telematics etc is what would be the AP that would have been built up but nothing material has changed.
Unidentified Participant
Okay. Okay, thank you. Those are my questions. Best of luck.
Operator
Thank you. The next question is from Raghav Mittal. Raghav, please unmute your line and go ahead.
Unidentified Participant
Hi, good evening. Thank you for taking the question. I wanted to touch upon, Rajesh, on the MLFF system that the government is now aggressively trying to target. I mean the couple of pilots as per news articles has gone well and they’re targeting like 200 corridors in a couple of years and potentially nationwide rollout by 20, 29, 30. So can you just talk about MLFF being postpaid? Of course you can also have a prepaid fast tag wallet. But how do you think about our relevance to our customers sort of reducing over time and how do we mitigate that?
Thank you.
Rajesh Kumar Naidu Yabaji
So basically the whole framework of MLFF is on prepaid collection. That’s point number one, right? Because in India small ticket sizes, postpaid and enforcement and the cost of collection of that is going to be very high. And even now in the current framework if you pay later, there’s a penalty fee of double. Right? So when you use the word postpaid, first of all it will be prepaid. Right. And second is that in the MLFF construct, Right. The way to understand is that there are two ecosystems. There’s acquirer ecosystem and there is an issuer ecosystem.
100% of our revenues are from the issuer ecosystem. Right. The MLFF replaces the existing acquisition ecosystem to a MLFF based acquisition ecosystem which uses cameras and much better quality RFID readers. Right? So that’s the construction and in the full scale rollout of MLFF as well the payment ecosystem that the payments methodology is basically fastack. That is what has been articulated and that will continue. So point number one, the relevance of issuer ecosystem in terms of FASTAK being the lead vector of conducting payments from the issuer side is going to be there forever now.
So, so that, that’s like base case, right? Then the next context is MLFF graduating into a satellite space system is basically the next thing in even in that change, the change is again on the acquirer ecosystem, not on the, you know, issuer ecosystem. That’s like even if you, even if you fast forward MLFM into the satellite GNSS based tolling era right now, answering your question on in MLFF again, right, Because MLFF again provides an opportunity on the acquisition side to enter because largely it’s a telematics LED capability with a technology stack LED capability and being present in this ecosystem for a long period of time, would we as Blackbird would be looking at keen to participate on the acquirer side.
So that is something we are like let’s say in Talks with various players to discuss and see if we can, you know, jointly enter into some of these, you know, these opportunities as we move forward.
Unidentified Participant
Thank you, that’s very helpful. Just as a follow up, what percentage of MLFF payments today are Prepaid? Is it 100% or is it lower? Because I might be wrong from what I read is like, yes, there’s a penalty if, if you don’t complete the fine with the stipulated period, but it’s a post arrangement.
Rajesh Kumar Naidu Yabaji
We, whatever offline information we’ve received, we believe 99 plus of the payments are prepaid.
Unidentified Participant
Okay, and what kind of opportunity? Because,
Rajesh Kumar Naidu Yabaji
Because if the, if the tag doesn’t have a. If the tag doesn’t have a balance, it’s considered as an offense as per the way it is defined. And there is a penalty for it that you don’t have a balance in your tag and you’ve crossed it. It’s a penalization framework and not a encouragement of postpaid framework.
Unidentified Participant
But how do they even check the tag? Because there is no barrier where you’re stopping to check your tag.
Rajesh Kumar Naidu Yabaji
So the whole gantry system which is created on top of the tag, like Tollgate, the RFID readers, which erstwhile used to be very close to the RFID tag are now on top of these, you know, gantry systems number one and number two is that they’re using cameras to read the number plate. And government with one vehicle, once one fast tag has already implemented the unified mechanism where a truck or a car only has one fast tag. So with this whole ecosystem they are able to achieve this high level accuracy of collections.
Unidentified Participant
Okay, and lastly, what kind of partnerships are you exploring when it comes to the issue, when it comes to the acquired side of things? We are in very early stages.
Rajesh Kumar Naidu Yabaji
Yeah, we are in very early stages of exploring these. Once there is more concrete plan on this, we would be happy to share.
Unidentified Participant
Okay, thank you so much. All the best.
Operator
Thank you. Participants, please announce your organization name before asking the question. Next question is from Mr. Rithwick Agarwal. Ritwik, please unmute your line and announce your organization name and go ahead.
Unidentified Participant
Hey. Hi, I’m Aurum. My name is ritwik. I’m from 3B Investment Managers. Just had one question, wanted to understand more on the telematics business. Any, any updates on the number of telematic devices that we have now and how do we see the goal in this business going forward?
Rajesh Kumar Naidu Yabaji
Yeah, yeah. So telematics business growth, you know, I’ll give you some color so that you will Be able to get a feel of where the devices may be, etc. Right. So basically, if you split the business of telematics into, you know, three to four parts, one is our, you know, core vehicle tracking device, which is regardless of mandates, which is a basic, you know, GPS tracking. Second is the AIs device, which is driven by mandate. Right. And in terms of your. Third is your fuel sensor and let’s say the new initiatives like dash cam, et cetera.
Right. The basic GPS device penetration, obviously coupled by a bit of cannibalization by AIs. Because AIs is now mandatory across 10 states, which drives the growth of AIs. But for the basic vehicle tracking device, that growth rate, like, let’s say, you know, is on a lower side. Right. Than the overall core business growth rate in the range of that 15% levels. The AIs device, because it’s a mandatory device in various different, you know, geographies, etc. Is seeing a very strong growth. As we also gave you a narrative that over the sequential quarter we doubled the AIs numbers as well.
So sales is increasing at a very fast pace and revenue will follow suit in time. Or the other fuel sensor business, again, because it’s a newer business in the stack that continues to compound. Right. So overall, as a telematics category, because of a mix of each of these, you know, kind of, you know, businesses sort of put together, delivers a much higher growth rate. Right. Than the, like the rest of the, you know, core businesses. This is the broad model to understand.
Unidentified Participant
Understood. And the second question on, on the disruption from the Middle east war, just wanted to understand is that the reason why we have shifted to a tooling GTV only metric.
Rajesh Kumar Naidu Yabaji
Yes, yes. Yeah. To be able to better appreciate what’s happening beneath, we segregated that metric and started giving tolling GTV so that, you know, that’s the largest part of the payments GTV also and also drives large part of the revenue also. So that gives you a direct indicator,
Unidentified Participant
Any sense on how much percentage would be tolling GTV of the total payment ctv so that we can make a.
Rajesh Kumar Naidu Yabaji
I think broadly, like, you know, I think broadly, you know, you can assume 90ish, basically. Yeah.
Unidentified Participant
Understood. Okay, that’s all from my side. Thank you.
Operator
Thank you. The next question is from the line of Jitu Punjabi. Please unmute your line, mention your organization name and go ahead.
Unidentified Participant
Hi, Jeetu Punjabi from EM Capital Advisors. So I joined a little late, but a basic mundane question. When I see your growth numbers, they look pretty good and then your margins have come off. Is This a function of you investing in the growth businesses and that those costs adding up and thus the margins headed softer. Hi, I can’t hear you.
Rajesh Kumar Naidu Yabaji
Sorry Jitu, we lost you. We only heard part of your question.
Unidentified Participant
Okay, I’ll repeat. Sorry, can you hear me now?
Rajesh Kumar Naidu Yabaji
Yes, we can hear you.
Unidentified Participant
Okay, so my question is, sorry, I joined a little late but I’m. But the headline question was and I saw the growth numbers, your growth numbers look good but your margins have softened. Is that a function of your investing more capital or more money into the growth businesses and thus those costs adding up and coming and hitting margins?
Rajesh Kumar Naidu Yabaji
Of course, yes.
Unidentified Participant
Okay, second linked question is, is there a thought process in terms of the balance between growth and profitability and how would you manage that as you navigate the next three, four years? And also what is in your mind the growth that would be you’d be comfortable with over the next year or two to guide?
Rajesh Kumar Naidu Yabaji
Yeah, so I think good question, but I think the way we think about growth and the balance of profitability is a little opposite because for us growth is actually an outcome because we, we don’t like, you know, we don’t manufacture a growth rate. Let’s say for example, core businesses are there, they are basis some of the strong fundamentals of the economy works and how our acquisition engine works. Right. And at every point in time we try to go into invest till the time, you know, it’s not profitable to acquire that customer anymore.
Right. So that’s the way we go about driving growth. And the growth percentage comes as an outcome. Right. That’s point number one because you know, getting a customer in an unprofitable way doesn’t help, you know, the company, doesn’t help anyone in the long term because that’s not sustainable. Right. Point number one, point number two on how do we balance growth versus profitability from a long run perspective. Again, whatever number compounded profitability number you are seeing, it’s again not a, you know, not a calculation that we should have done hundred of core profit and then we should have, you know, invested only 20 and 80.
We should delivered as profit. Again, that’s not a number. We are in a very large industry. Right. It’s a $200 billion kind of an industry and we’ve built a company which is very small till now and there are so many avenues to grow. Right. So the way we look at always is that are there opportunities to pursue? Are there like let’s say and in the testing phase what will it take to really invest into, you know, these opportunities And God’s been kind the kind of platform we’ve built, most of the new opportunities, we’re able to test it out on a very small base.
So that even does not ever affect burn. The burn comes in only when we try to scale up. And that scale up has a very strong bar on being able to define micro markets, being able to define ability to turn profitable whenever we want. So the way to look at is we define the quality in which we want to build a business. And inside that, if we get an opportunity to invest and an investment makes sense, we typically look at allocating capital regardless of what that quantum is. So this is our framework of going about newer initiatives and the existing core businesses because this just keeps it very clear in terms of that we are building a company which always has to be highly innovative.
We will invest in every opportunity we get to if that’s going to be long term profitable and that’s going to solve a customer’s problem and that’s going to return immensely to shareholders in the very long term. So that’s how we look at it. And whatever you are seeing it is an outcome of, you know, such a input process.
Unidentified Participant
Thank you. And that helped clarify a lot of things. But what, what kind of growth, headline growth do you think the company will sustain at?
Rajesh Kumar Naidu Yabaji
I mean we, as we like generally don’t give growth guidance. I think, you know, this is, you know. Yeah, we’ve typically helped you guys to plot how to, you know, look at the business, how it will scale, etc. But yeah, but we have like, we’ve decided not to give guidance, you know, on our numbers.
Unidentified Participant
Okay. And one last question, if I may sneak in. There was some, someone, the senior team who left. Can you talk about the reasons and what happened there?
Rajesh Kumar Naidu Yabaji
So we’ve spoken about this topic in the past. Like the team at Blackburg which reports into me typically has an average tenure in the company of like eight years. Right. And that was the case even when. And the company’s like 11 years old. And that was the case even when we were going public because we were going public when we were nine years old. And the average tenure of people who were reporting to me was seven years. So they were like the earliest of the employees, built the whole company did, you know, good for themselves.
Right. So. So one of them, two people left as you know, you three people left from a SMB perspective. Right. You know, one of them I think left within about two to three years. And other two of them were very long with us seven to nine years, one of them left to pursue building his own company. One of you know, them left to, you know, pursue, you know, sort of more balance on health etc. So that’s the context.
Unidentified Participant
Okay, thank you very much. Good wishes, all the best.
Operator
Thank you. Next question is from the line of Ankush Agarwal. Ankush, please unmute your line and mention your organization name.
Unidentified Participant
Yeah, hi, am I audible?
Operator
Yes, you are.
Unidentified Participant
Yeah. Hi, this is Ankush from Search Capital. Just one question. So like few quarters back the growth business was, I’m looking at net revenues was around 10, 11 odd crores. And last few quarters as we have scaled up the super loads we have reached around 15 odd crores of say run rate. So about 5 crores extra. What I’m trying to understand is when do we expect this say 5 crores of super loads kind of net revenue starting to become say 20, 30, 40, 50 crores kind of number. Because in terms of cost, I think even if we consider that there are some extra incremental investment, the core business, the cost basis jumped from say 70, 75 odd crores to 100 crores now.
So obviously the investment look kind of high versus the incremental net revenues that you’re generating on the super lows. Right. 4, 5 crore, it’s quite basic to be honest to begin with.
Rajesh Kumar Naidu Yabaji
Yeah. So I think the answer is absolutely right. I think the question is absolutely right. I think the pace of super loads definitely could have been, you know, much stronger. The you know, in terms of when that would, you know, come through probably when the confidence on really going further all out in terms of strategies across all the newer hubs, etc. Maybe I think that is a time when such kind of scaling can be expected. And talking about the increase in the overall costs, remember that the investments in the core businesses also have been stepped up.
So the number which you’re looking at it a good part of that let’s say has also gone into the core businesses. It’s not only the cost of superloads and a good part of that also has gone into scaling up of vehicle finance. Though vehicle finance, like the revenue growth of vehicle finance continues to be at a higher pace than the investments which you have increase in investments obviously. Right. And a part of that has gone into super loads. So completely is not super loads. Point number one, point number two, definitely the growth rate could have been faster.
Right. And that’s also our pursuit, you know, to make that happen. But as we have always, you know, maintained the playbook, building on super loads, you know, is Taking time and you know, we are also taking a native approach to ensure that, you know, we build the business in a much, you know, faster way and a better way. And so, so that’s the some of the narrative on how we are, you know, going about it. But yes, you know, we can expect that. We don’t know when is it like you know, one year down the line or two years down the line.
But then yeah, that’s the, that’s the goal.
Unidentified Participant
I mean the reason for asking this was I think we peaked in terms of profitability say back in say Q1 of FY20, almost 36% of say adjusted but margin and now we have sort of stabilized around 31 odd percent. So just trying to understand is this the kind of profitability that we could expect for say next 12 years during which you sort of scale super loads and some of the newer growth businesses because unless those businesses scale up quite rapidly, the profitability might even come down or say at this stable level, about 30%.
Is that the right way to assume that that’s how one things play? I
Rajesh Kumar Naidu Yabaji
Think, yeah, I think the way the earlier gentleman was asking the question, right, profit percentage is actually again a much more further outcome. Like let’s say because we generate X in core, we invest Y. Now we see rapid growth, we increase Y. Right. X largely follows secular trend which I was mentioning, follows the operating leverage construct, follows the growth construction. Y is all independent on that quarter need and probably subsequent two, three quarters. Right. So I would say that it’s hard to put a number to this but the way to look at it, it’s an outcome metric and it is determined by X plus Y.
And if X minus Y, in fact Y is a negative sign and then depending on what Y is, your X comes and X divided by overall net revenue is a percentage. So that’s why you see, because the overall revenue growth happens and then there is increase in burn also and then you have a profit which also increases. So it’s a pretty much composite metric, right. X minus Y by total R. Right. Rx plus Ry. So that’s how you should look at it. Yeah.
Unidentified Participant
So would it be possible to sort of split like how we’re splitting revenues for the core and you know, growth business. Would it possible to split the profitability as well? Because then it’s better for us to appreciate how the core business playing out and the investment if you’re doing in a growth business and even if this burning cash, I mean that is understandable as investors. But if we have a Combined metric. It is very difficult to judge how the core business is sort of performing.
Rajesh Kumar Naidu Yabaji
Fully agree with you. But I think we believe it’s still too early. We will evaluate this down the year on when can we improve the visibility. And I definitely understand your pain because modeling is tough for you.
Unidentified Participant
Okay, that was all. Thank you.
Operator
Thank you. The next question is from the line of Arun Thirumalai. Please unmute your line, mention your organization name and go ahead.
Unidentified Participant
Arun, please unmute yourself.
Operator
That was the last. Sorry. The next question is from the line of Abhishek Banerjee. Abhishek, please unmute yourself and go ahead. Please mention your organization name.
Unidentified Participant
Yeah, this is Abhishek from. Thanks for the opportunity. I wanted to understand just, you know, a couple of things. One is you gave kind of a cautious outlook on, you know, the Middle east conflict. Do your, I mean, how bad, you know, do you see your revenues getting impacted? As in, if you could give some idea whether, you know, it’s a growth slowdown or could, could there be some sort of a decline also that would be, you know, really helpful. And, and secondly on the vehicle financing business.
And you know, this is a question that I am, I keep getting from investors. So wanted to just also check with you is, is there any, you know, right to win that we have in this business? Is, is there something of a unique offering that we are doing which, which is kind of giving us the confidence to, you know, try to build here given that there is already, you know, enough number of NBFCs and financial companies who, who kind of operate in this piece.
Rajesh Kumar Naidu Yabaji
Yeah, I’ll answer the questions sequentially. So the Middle east crisis, the cautionary context was in terms of, as I think clearly articulated also I think there’ll be a drag on growth. Right. I think that’s the thought process point number one. Right. And what we are seeing, as I mentioned, right. Let’s say, because industry trucks typically are sit at the top end of the value chain and mostly till March, I think there was a lot of inventory, you know, stocks which would definitely move. But I think, you know, going into April, you know, in May, we’re finding some kind of drag on it taking off.
So I think that’s the, you know, broad drought, I don’t think because a lot of our revenues are also compounding in nature. So you will see it in the very small subsection, some kind of a number up down here, there. But I think that’s the broad narrative on the Middle east crisis on vehicle finance, I think very good question See basically vehicle finance in like let’s say the major players who do large competency, one of the large capabilities or differentiations or right to win there for all of them is distribution.
And obviously the whole aspect of credit engine, you know, building intelligence aspect of customer. Right. Distribution and being very close to the customer is one of the most important right to wins for them. And the whole, you know, if you look at for, for a truck operator, digital means Blackburn. Right. So our vehicle finance play is largely predicated on being a digital first, you know, company being in the like. Our mobile app is in the pocket of like large number of fleet operators across the country.
We generate real time data about these truck operators. So our vehicle finance play is predicated on you know, this aspect and that’s yielding results. And it’s also you know, it’s more like grow in a growing market. It’s a very big market. And like, and the whole technology like LED approach to vehicle finance in terms of you know, from right from you know, meeting a customer to disbursing the loan for a large part of the customers, we’re able to do it within like 24 hours, you know, to 48 hours.
24 hours is something which we’ve achieved for a lot of customers. So I think there is a technology play where there are small 1xs, 1xs, 1xs when you add up it clearly gives the 8x to 10x play. But you know, that’s true from a differentiation perspective. But if you look at it from a technology kind of a business where you can architecture a non linearity we believe that at the end of the day it’s a risk business for our partners. Right. So partners will take cautious calls continuously. So we believe that it may not be a nonlinear business and we have to work with the partners with their own approach to cycles, with their own credit writing frameworks and the delinquency management.
So we believe that it will be a strong tech led vehicle finance origination play which is not non linear but will give sufficient profit generation in the long term if built in the right way with the right partners. I think that’s the broad takeaway of that business.
Unidentified Participant
Got it. Just, just to expand a little bit more on this bit. So you are not trying to guarantee any sort of performance of these loans from, from their transaction behavior on your platform. Right. So that, that is a call which is completely with the, your lending parts up.
Rajesh Kumar Naidu Yabaji
Yes, that is completely with the lending partner and we make origination fee and a collection fee depending on how well the portfolio behaves for them.
Unidentified Participant
Got it, Got it. Thank you. Thank you so much. This is very helpful. Thanks.
Operator
Thank you. Next question is from Avnish Tabari. Avnish, please unmute yourself and go ahead. Mention your organization name please.
Unidentified Participant
Hi, this is Avnish from Akaria. My question is around this growth business, is this business, as you said, it’s an investment mode. So do you sort of have any profits at contribution level or they are also because of being in investment mode it remains a negative number.
Rajesh Kumar Naidu Yabaji
Yeah, I mean this is the good part and also holds us back from going crazy. So in trucking business what we’ve understood over the years is that building a business with negative contribution creates a lot of negative behavior and sentiment amongst the market participants. Because the nature is at the end of the day it’s a B2B relationship. Right. So most or like all our businesses across, regardless they are new or experiments or whatever, we are always contribution margin positive. We make money on every order we do.
So if orders scale, our profitability converges. Yeah.
Unidentified Participant
Great. So it’s only at the EBITDA level or below that around that line item it would be a negative number, right?
Rajesh Kumar Naidu Yabaji
Yes.
Unidentified Participant
Great. Thank you and wish you really best.
Operator
Thank you. Thank
Rajesh Kumar Naidu Yabaji
You.
Operator
That was the last question for the day. I now hand over the call to Mr. Rajesh for his closing comments. Thank you. And over to you.
Rajesh Kumar Naidu Yabaji
I think that’s all from our side and I think we’ve covered everything which was on top of the mind least has given you a flavor so that you guys have a feel of what we’re building. And yeah, again as I articulate, we always love to keep it consistent because I think building businesses with consistent strategies over a long period of time with laser sharp focused on few values and tenets creates I think big businesses and enduring businesses. I think that’s what we are here to build. And thank you so much for attending our financial year end earnings call and see you guys soon.
Operator
Thank you once again for your time and participation. On behalf of Blackbuck Ltd. This concludes today’s conference. For any questions, please feel free to write to us on the email IDs mentioned on the invite. We appreciate your engagement. You may now disconnect your lines.