Crizac Ltd (NSE: CRIZAC) Q1 2026 Earnings Call dated Aug. 05, 2025
Corporate Participants:
Vikash Agarwal — Chairman & Managing Director
Manish Agarwal — Chief Financial Officer
Christopher Flood Nagle — Chief Executive Officer of Crizac UK
Analysts:
Samarth Patel — Analyst
Vivaan Saxena — Analyst
Mihir Manohar — Analyst
Rahil Shah — Analyst
Mayank Agrawal — Analyst
Mohammed Sufiyan — Analyst
Unidentified Participant
Niharikaa Panpaliya — Analyst
Kunal Shah — Analyst
Omprakash Kuckian — Analyst
Himanshu Dugar — Analyst
Ashish Parekh — Analyst
Varun Singh — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Crizat Limited Q1FY26 result update conference call hosted by Equilious Securities Private Limited. As a reminder, all participants lines will be in listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference has been recorded.
I now hand the conference over to Mr. Samad Patel from Equitas Securities Private Limited. Thank you. And over to you sir.
Samarth Patel — Analyst
Hi, Good afternoon everyone and welcome to Cretex QFY26 earnings conference call. We have with us Dr. Vikas Agarwal, Chairman and Managing Director of the company. Mr. Manish Agarwal, Chief Financial Officer of the company and Mr. Christopher Nagel, Chief Executive Officer of Triza Qk Vikas sir, if you can start by giving your Overview on the 1Q FY26 performance as well as outlook for FY26 and beyond and then we will open up for Q and A. Over to you Viktor. Sir.
Vikash Agarwal — Chairman & Managing Director
Sure. In the quarter one company made a revenue of 209.53 cr. Our cost of services was 64% of the revenue which is equivalent to 134.38 cr compared to 201 cr last year quarter on quarter basis which leads to a EBITDA of 60.47 cr which is 28% of our revenue. The path is 45.81 cr which is 10% above last year. Last year we did 41.5 cross which is 45.81 CI is equivalent to 21% of that.
In terms of operational data, company had 20% growth on quarter on quarter basis compared to last year. In the number of application processed this quarter we processed 1 lakh 10,000 application compared to 65,000 processed in the first quarter of 2024. Overall we also saw increase in total number of agents joining our platform and registering at the platform as well. These are key metrics which is there for quarter one of FY26.
Over to you.
Samarth Patel — Analyst
Yeah, we can open up for the questions now.
Questions and Answers:
Operator
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on your touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Vivan Saxena, an individual investor. Please go ahead.
Vivaan Saxena
Hello. Hello everyone. Yeah. Can you hear me?
Vikash Agarwal
Yes.
Vivaan Saxena
Okay, so my question is about Project Ltd. First of all, I’m very excited to say the. I mean individual investors. So my question is from the AI perspectives. What AI techs are you looking to invest in? What kind of what AI technologies you guys are looking to invest?
Vikash Agarwal
We have a very sophisticated Electronic platform, digital platform, what we use. And as the AI is becoming more and more mature, we are trying to add the same on our platform which will be used for interview and application assessment and processing. We haven’t used too much of AI as of today. We are developing the tech and everything and as in when things will become more mature, we’ll be using those ones and the AI will be used to improve the productivity of the employees and helping them in their day to day working.
Vivaan Saxena
Okay. Okay. Yeah, that makes sense. Thank you. Thank you so much.
Operator
Thank you. The next question is from the line of Mihir Manmohar from Keralian Asset Manager. Please go ahead.
Mihir Manohar
Yeah, hi. Thanks for giving the opportunity. Am I audible? Yes, Mahi, yeah, sure. First of all, congratulations on great set of numbers, quite good growth. I mean 30% revenue, 18% EBITDA. And also on the application segment we see very strong growth in number of applications being processed. Sir, I wanted to understand the number of enrollments. What was the number of enrollments for 1Q26 vs 1QFY25 some color around that.
Vikash Agarwal
We do not disclose the students numbers because those are sensitive data and has not even been disclosed in seti. But it is in line with the number of application process. So the ratio means consistence like last quarter.
Mihir Manohar
Okay, so number of enrollments is also 50% growth.
Vikash Agarwal
No number of enrollment because applications get submitted six or nine months in advance. So growth in application may or may not relate exactly to the number of enrollment. Number of enrollment growth would be
Manish Agarwal
It will be more in line of revenue from operation. 29% growth in the revenue from operation. That means the number of student enrolled has also grown by 29%.
Mihir Manohar
Okay, perfect, perfect. Understood sir. Makes sense just on us. I mean now with this Donald Trump especially getting more and more aggressive, especially on the diplomatic side, it seems to be shifting away from how do we see US Business. I mean, what part of strategy, how to understand the buildup of US Business specifically with this new diplomatic situation being there.
Vikash Agarwal
Christopher, you want to answer this? Yes, I do agree with you. There is a bit of uncertainty with reference to us. It has affected the number of students going from all over the globe to us. We believe this is temporary and things could change. Keeping in mind even US universities meeting with the all current numbers and they too need the international students to fund their education and the different departments. So as of today, our US business is very small. So once things get stabilized, I think we should reap the benefit of that one.
Mihir Manohar
Understood? Sure, sure. And just on a broadcast basis, Sir, I wanted to understand, I mean, how easy or how comfortable or how difficult is it for us to change a university broadly. Let’s say three years back, the university which used to be bearing top five and now the universities which are there in top five, are they similar or are they different? I mean, how easy or difficult is it for us to get revenue from different universities or get business from different universities?
Vikash Agarwal
These depends upon various factors. And the change in top five or top 10 is not because we have changed the demand for one university over the other. It can be any particular university comes up with a specific scholarship or some kind of a specific deal which helps to push their number higher compared to other PE universities. And that’s why there will be a churn in the overall top five.
Mihir Manohar
Understood? Sure. And this last question was on the September intake. What kind of growth in number of enrollments should one consider for September intake or should it be close to be what first quarter growth has been?
Vikash Agarwal
It should be in line with. If I don’t, as of today, I don’t see any major impact. So if things remain same, it should be in line with the the current project in
Mihir Manohar
September intake accounts for 30 35% of the business or full year.
Vikash Agarwal
September intake would account for quarter.
Manish Agarwal
September intake will not account. But if you see quarter three will be higher because of September intake.
Mihir Manohar
Okay, Understood. Sure. That’s it for. That’s it for my cj. Thank you very much.
Operator
Thank you. The next question is from the line of Raheel from Crown Capital. Please go ahead.
Rahil Shah
Hello, can you hear me, sir? Yes. Hi, good evening. So firstly on the revenue growth front, year on year you have posted a healthy 30% growth. And even for your annual growth rate in the past have been pretty strong 50% plus. So now given the current business scenario, what kind of a growth kagger outlook can you share on an overall annual basis for this year and next year? Any visibility or thought.
Manish Agarwal
Again, as said, if we don’t see anything changing, if things remain same, we believe similar level of growth as we’ve seen quarter on quarter basis
Rahil Shah
For FY26 overall we can expect this 30% and plus. Is that a yes?
Manish Agarwal
Yeah.
Rahil Shah
Sorry, I couldn’t hear you there. Yeah. Okay. Okay. And then coming to this margins front, although you know year on year basis in this quarter they have dropped a bit but 29% margin seems pretty strong. So are these sustainable or is there a scope for improvement there?
Manish Agarwal
These are sustainable. You know there’s always 1 or 2% of margin up and down kind of thing. But these are sustainable margins.
Rahil Shah
And let’s say we were looking at any sort of improvement. How, how will it happen? Any certain criteria the management is looking at to improve these margins.
Manish Agarwal
We don’t believe there’ll be a substantial change in the margin front. So it should remain in line with what it is.
Rahil Shah
Okay. Okay. So 29%, give or take 1% is something which you can continue for coming years.
Manish Agarwal
Yeah. But again keep in mind that margins are different quarter on quarter basis as well. Quarter one margin is normally higher compared to other quarters because quarter one have more modern universities where you take it by higher.
Rahil Shah
Okay. Quarter one is, has more margins but then overall you’ll be able to
Manish Agarwal
Maintain the similar margin as maintained last year.
Rahil Shah
As last year. FY25. 25. So which one?
Manish Agarwal
Yeah, I think 25 will be more reasonable one.
Rahil Shah
The 25 number is more reasonable.
Manish Agarwal
Yeah. Yes. Oh you know you’re considering the margin. You could compare same basis. So be on your basis.
Rahil Shah
Year on your basis. Okay. Okay. Okay. So I’ll get back in you. Thank you.
Vikash Agarwal
Thank you.
Operator
Thank you. The next question is from the line of Mayank Agrawal from Scientific Investment. Please go ahead.
Mayank Agrawal
Yeah, hi. Thank you for the opportunity. I have few questions. The first question is regarding like with over 50% of the revenue coming from our institutions, like from UK and to what safeguards are in place to mitigate client concentration risk going forward?
Vikash Agarwal
Can you repeat your questions consecrate?
Mayank Agrawal
Yeah. So we do like 50% of the revenue coming from just three institutions. So what safeguards are in place to mitigate client concentrations as going forward?
Vikash Agarwal
Yeah, in. In terms of diversification. We have acquired a company called Raj Consultant last year and which will be helping us diversify into US market. We are also expanding into other regions like Dubai, Ireland, New Zealand. So those things also should help us diversify and reduce concentration. Hello. Hello, Bank.
Operator
As there is no response, can we move to the next question?
Vikash Agarwal
Yes, please.
Operator
Okay, the next question is from the line of Mohammed Sufyan from the Nero Cap serve. Please. Go ahead.
Mohammed Sufiyan
Thank you, sir for the opportunity and congratulations for the good set of numbers. So I just want to understand if I was just looking at realization the revenue to the number of applications. So it was in Q1 this FY26 was around 19,000 compared to Q1 of FY25 was 24,000 and portfolio FY25 was around 30,000. So how we should look going ahead? The revolution is falling or similar
Manish Agarwal
Realization. If you are counting from the number of student application, then yeah. Number of application by revenue will not match because applications are the six to nine months ahead of the intake. But revenue you get so you’re not audible per unit revenue. Because these are the very sensitive data and might affect the behavior.
Mohammed Sufiyan
Your voice is breaking.
Manish Agarwal
You are calculating the student based on number of student application by the total revenue of the quarter, correct? Yeah, but that is not the right way of calculating Because we process the application six to nine months ahead of the intake. Okay. We normally don’t prefer giving a realization first when because it’s a sensitive data which might affect the business community.
Mohammed Sufiyan
Okay, so what metric should we look at then for this time?
Manish Agarwal
In terms of key metrics, number of application processed shows you the future growth which the company can acquire. Like in FY first quarter of 25 we did 65,000 of number of applications. This year, the same period we did 1 lakh 10,000 number of applications. This show the revenue for quarter 3 and quarter 4 will be higher for compared to last year.
Vikash Agarwal
At the same time, to add to what Manisha said, we’ve also diversified in our source market and expanding into multiple geographies. At the same time we are also diversifying into different destination market as well. Those should also bring in more applications and helping in higher revenue and future.
Mohammed Sufiyan
Okay, and one, two questions sir. One if we see seasonally. So best quarter will be the Q3 or the main quarter will be Q4.
Manish Agarwal
The main or the biggest quarter will be Q4
Mohammed Sufiyan
Which will be almost like a majority of the
Vikash Agarwal
Almost 40%. It’s a unruly quarter four will be roughly 40%. Quarter three is usually roughly 30%. Quarter one is 20% and quarter two is 10%.
Mohammed Sufiyan
Okay, so Q2 will be the newest and Q4 will be the strongest one, right?
Manish Agarwal
Yeah. Right.
Mohammed Sufiyan
Yeah. And so just to understand one thing, if an applicant want to apply directly, why will they use this K platform? Like it will be specific university only. That’s why they might be using it or I can apply directly or something like that.
Vikash Agarwal
Candidates are allowed to apply directly to the university. Yeah. Usually a candidate would go to a local agency for support, guidance, visa advice and lot of other support service they might need. These agents since they don’t charge to a student. There is no reason why a student will not use our agent sizes. That’s why the students would go and prefer to go to a local agents.
Mohammed Sufiyan
Okay. So that can help grow agents use our platform so we can benefit from this. Thank you. Understand.
Vikash Agarwal
So agents use our platform at the moment.
Mohammed Sufiyan
Okay. And what the likely P for use of ext1 is IDP, right?
Vikash Agarwal
Yes, IDP could be. But IDP is more brick and mortar business. Our peers would be appliable. Yeah. Our PS would be apply board consultant. Couple of examples.
Mohammed Sufiyan
Okay. Thank you sir. All the rest for the future.
Vikash Agarwal
Thank you.
Operator
Thank you. The next question is from the line of Yathar Manish Henger from Ige India. Please go ahead.
Unidentified Participant
I just have a couple of questions I wanted to ask. Depends on the applications you process. Do you conduct any background checks for the team?
Vikash Agarwal
Yeah, whenever we get an application, we do our due diligence for those applications.
Unidentified Participant
And how long do you think, how long does it take for you to decide a student whether they can come through cry applications?
Vikash Agarwal
I’m not able to understand you your thoughts?
Unidentified Participant
I was asking you background check you mentioned you conduct. How long does it really take for you to do those background checks for one student?
Vikash Agarwal
No, it doesn’t take too much. Many of these informations are available online where we can verify for example somebody who has submitted ILTS scorecard. We have those credentials from the OR PT provider where we can verify their documents. So in most of the cases where we have any doubt, we verify the documents electronically. And these are done almost on a immediate basis.
Unidentified Participant
Okay. Secondly, we have seen Dubai being one of financing growing markets in education as well. There are many US opening the branches in Dubai. For example New York University, nyu. Are there any changes in the application types in the process for the same again?
Vikash Agarwal
Yakat, your line is not clear. Can you just repeat once again?
Unidentified Participant
I mean
Vikash Agarwal
I believe you asking that multiple universities are opening campuses in different jurisdictions now the process remains same and consistent so it won’t make any difference in application processing method.
Operator
Sorry to interrupt Mr. Yar, can we be seen there is an audio lost from your line. Maybe request you to please check it or bring the device closer to you.
Unidentified Participant
Yes, sorry. Question from the revenue we received from the university. Does the ranking of the university have a correlation with the revenue you earn from them?
Vikash Agarwal
Not really.
Unidentified Participant
Okay, and this is the last question. What do you say is the ratio of your application from undergraduate to postgraduate? Many are undergrad. You should. How many?
Vikash Agarwal
Sure. For UK it would be 75% postgrad, 25% undergrad.
Unidentified Participant
Thank you so much.
Vikash Agarwal
Thank you.
Operator
Thank you. The next question is from the line of Niharika from Anand Radhi. Please go ahead.
Niharikaa Panpaliya
Hello sir. Firstly congratulations on a budget of numbers. My question is primarily around the cost of services. I think this quarter we saw 100bps rise in the cost of services. So I just want to ask like what is the trend that we can expect going forward? What is going to be cost of services as a percentage of our total revenue? Will it be lower from here on or will we maintain a broadly 65 to 70% range for the whole year?
Manish Agarwal
Current in first quarter our cost of services is 64.13% of the revenue. Normally quarter one margins are high but if you see an overall year basis it will be around 70% and we expect in near future it remains to be around 70 only.
Niharikaa Panpaliya
Okay, okay, that’s helpful. And secondly, have we seen a change in number of applications for agent increase post the IPO has it Been some sort of momentum that we’re seeing there.
Vikash Agarwal
Since the IPO came only last month, there’s not a huge difference in. It’s very difficult to get the change in number of applications because of that one. Normally it’s end of major academic year, which is September, so by default increase in application flow. So for us to make a differentiate between the impact of IPO would be difficult to gauge.
Niharikaa Panpaliya
Okay, sir, no problem. Thank you, sir. Thank you. And all the best.
Vikash Agarwal
Thanks.
Operator
Thank you. The next question is from the line of Kunal Shah from Karniel. Please go ahead.
Kunal Shah
Hi, this is Kunal Shah from Carnelian. Just one question I had, you know, how are we looking at particularly uk, you know, applications to kind of go for this year and next one year as well, considering, you know, there have been a lot of talks that it’s becoming difficult, you know, or whether the number of students going to UK for study is kind of coming down. So if you would want to like, you know, share your thoughts on how are we seeing it because our application numbers are kind of increasing. So if you want to share some thought on that, sir.
Vikash Agarwal
Sure. Kunal. The number had for us had been growing for UK and we believe it will remain strong. Again, number of students going out of India is increasing. If you look at other destination like US, Canada, their numbers are restricted because of policies. So in my opinion, this number growth for UK should remain quite healthy.
Kunal Shah
Right. And within that for us, you know, we are gaining market share. And how do you see our further market share? Basically as a number of students going to Ukraine and within that through us
Vikash Agarwal
Number four, we are seeing a growth and there are multiple factors. One definitely growth in uk, but at the same time the company is expanding into different jurisdictions as well. So overall, as a result, there is a growth in total numbers.
Kunal Shah
Got it. And you don’t feel challenged for that number basically to come down or any problems for that, right?
Vikash Agarwal
No, we don’t see any challenges as such. If market remains same, we believe 30% growth in our numbers.
Kunal Shah
Sure, sir. And also you would help understand the inbound strategy as well. Right. We have been doing a lot of work in increasing various countries. Breeze when it comes to inbound as well. So if you would help understand a little bit on that particular piece as well. Right.
Vikash Agarwal
Sorry, what do you mean by inbound?
Kunal Shah
The inbound applications that we receive from countries other than India.
Vikash Agarwal
Yeah, yeah. So there has been growth. What we have seen is compared to last year, it was 35%. We are almost closer to 50%. 50. 50 from India and outside India.
Kunal Shah
Got it, Got it. Okay, thanks.
Vikash Agarwal
Thank you.
Operator
Thank you. The next question is from the line of Lima from pdl. Please go ahead.
Unidentified Participant
Oh, thank you. Can you hear me all right?
Vikash Agarwal
Yes,
Unidentified Participant
Thank you. Thanks for the opportunity. Just three questions from me, please. Firstly, and it’s sort of like an extension to the previous question, we’ve seen this migration white paper in the uk and given it’s your largest market, destination market, what’s the outlook? I mean, you mentioned that you think 30% is sustainable. Is that because you’re getting more market share or if it’s because you’re expanding your source countries? Thank you. That’s the first question.
Vikash Agarwal
Chris, you want to answer that?
Christopher Flood Nagle
Yeah, sure. Hi there. Thank you for the question. In terms of the white paper coming out, I think that this has had basically a positive effect in the market because it’s given clear guidance and certainty, which is allowing everyone to move forward with confidence. And therefore UK market is pretty stable. We’ve actually, if you look at the latest data, some increases in the student numbers year on year. So, yes, we hope to continue expanding market share, particularly outside India. At the same time, UK market has a stable outlook because of the forward guidance from the government.
Unidentified Participant
Thank you. And then I guess even though Indian students, the demand is to that going to study abroad, are you seeing a change in destination preference? You know, are students going to other countries instead of the traditional, I guess, big four?
Christopher Flood Nagle
Yes, there’s definitely growing demand for what you might call new or alternative destinations, such as South Asian students going to Dubai or Chinese students going to Malaysia and Singapore. However, we believe that these new destinations are emerging as a result of increasing global demand for overseas education. So it’s not big four or new destinations. We believe that both can continue growing over the long term.
Unidentified Participant
Yeah, that makes sense. Thank you. Last question. In the prospectus, I think it was mentioned that even though Krisak is currently a a B2B business model, over time you’d probably be looking at expanding into B2C by inorganic growth acquisitions. Is that something you know you’re actively looking at or do you think that’s going to be somewhere down the road?
Vikash Agarwal
There’s nothing immediate at the moment. We are working on that one. And as and when we find the right company, we’ll look at that to work that path.
Unidentified Participant
And may I ask, what kind of matrix or characteristic should you be looking at, like to be the right target for you?
Vikash Agarwal
I mean, we’re still evaluating options, it’s still evolving. So again, as said, we need to find the right company, right jurisdiction. So we want to start that vertical. So nothing is finalized at this stage for us to make a comment on that one. I’ll say it still a bit early.
Unidentified Participant
Yeah. Thank you. That makes sense. Thank you very much.
Vikash Agarwal
Thank you.
Operator
Thank you. The next question is from the line of Om Prakash from Plutus Capital. Please go ahead.
Omprakash Kuckian
Yeah, hi. I just had an academic question. This the revenue what you generate, like maybe this 850 crores of revenue generated last year. And I just want to know how is this, Whom do you build this? Like this revenue is generated like just an hypothetical case. An agent uploads the application and you process it. And is it. And whom do you bill for this revenue? So the university will pay you on a per application basis?
Manish Agarwal
Per enrollment basis.
Omprakash Kuckian
Per enrollment basis, yeah. So suppose you, an Agent gives you 100 applications. Out of that, how many will get enrolled?
Vikash Agarwal
OMG, this is again a sensitive data which is not disclosed in. I think it’s a quite sensitive data for our business. These changes from agent to agent and it changes from university. There is no defined matrix as such
Omprakash Kuckian
Opposing uk. Suppose they say base business school or something in uk. So if someone agent is uploaded an application for the base business school on your. You process it, right? Yes. Process it on behalf of the. Of behalf of base business school. Yeah. So if you consider this an academic question because I’m not able to understand this revenue. So that’s.
Vikash Agarwal
I understand. I mean it can go from let’s say 5% to 15%.
Omprakash Kuckian
5% to 15% of what
Vikash Agarwal
Application received.
Omprakash Kuckian
Okay. So that may get enrolled. Okay.
Vikash Agarwal
As you said, you know If I see 100 applications it can go as 5%.
Omprakash Kuckian
The range is that of acceptance. That is the acceptance range. So on that basis suppose in hundred applications and you get 10 is enrolled. So on a per application the university will pay you. Student pay us. University will pay you. Yeah. The way school will pay you students. And this is what we see that suppose you’ve done around two like 75,000. When you say it is applications out of that, how much is accepted? This is our accepted number.
Vikash Agarwal
These are the applications done by us.
Omprakash Kuckian
Okay. So a percentage of it would have only got enrolled.
Vikash Agarwal
Correct.
Omprakash Kuckian
So the billing from the university only basis is on a hypothetical case, what is the amount you get from an institution per
Vikash Agarwal
Again commercially commercially sensitive data. We will not do a discloser
Omprakash Kuckian
But that turns out to be very large number. Right. If it is 2 lakh 75 thousand you would have processed.
Vikash Agarwal
This is commercial sensitive data for us.
Omprakash Kuckian
And, and the cost of services is what you. What is that cost of services?
Vikash Agarwal
That’s what we pay to the agent.
Omprakash Kuckian
Out of the what you receive as a part, you will give it to the agent. So the student approaches the agent and says that you please apply to this university through that agent. The agent will do it through you. And. And what amount you get, you will. So that is almost 60% is given back to the 70% is given it back to the agent. Is that the right way to understand?
Vikash Agarwal
Yeah.
Omprakash Kuckian
Okay. And this differs from universities to university. So there cannot be. This cannot be modeled. Right. For us. Suppose it’s not that simple that you tell me there are four like applications have come and I can model it based on a. Because you would have. If I see on a 2 lakh 75 thousand you have done 850 crores of revenues, almost 30 thousand rupees or whatever. $400 around or maybe 300250 pounds Per application. So. So. So it’s not difficult for an analyst to model this, right? Is right?
Vikash Agarwal
Yeah, right. To a good extent.
Omprakash Kuckian
Okay, so the cost of services is what you pay to the agent. Then your cost is only the employee cost and the platform cost, whatever you are incurred, right? Yes. So other than that there is not any major cost for you.
Vikash Agarwal
Not any major cost.
Omprakash Kuckian
Okay, fine. Thank you very much. Thanks for you.
Vikash Agarwal
Thank you.
Operator
Thank you. The next question is from the line of Himanshu from Stylus Holding. Please go ahead.
Himanshu Dugar
Yeah, hi. Firstly I wanted to understand the timing on how the revenues are recognized. How the cost of availability services are recognized. Is there a gap in that?
Manish Agarwal
No. Like once the student enrolled at the university, the university confirms the amount due to us. At that point of time we recognize the revenue and at the same point we recognize the liability as well.
Himanshu Dugar
All right. So usually the admission cycle happens from fall, right? So you mentioned that the. The approvals etc happened in the first half and you get the. We recognize the revenue to the second half of the. From an Indian financial year perspective, is that the right model?
Manish Agarwal
No. Like university confirms probably after one to two months of the enrollment date, that time we recognize the revenue. Since the normal admission intakes are in fall and winter. That’s why our H2 is higher than H1.
Himanshu Dugar
Okay. So roughly it should be around like 60 to 70% of revenues are recognized in the second half and 30 to 40 in the first half.
Manish Agarwal
Yeah, 30.
Himanshu Dugar
Right. But still when you look at the cost of services that you reported in this quarter, which is around 60 now, how does that then differ? Because I think on a blended basis around 70%. Right. So. Yes. Does that differ based on quarters or does it differ based on universities?
Manish Agarwal
It’s depend on the universities. Like probably in the summer you only have a modern university where the take rate is bit high. That’s why your cost of services is bit low. Your profit margin is higher in quarter one.
Himanshu Dugar
Okay, understood. Is there any ESOP expense currently being recognized in your pnm?
Manish Agarwal
Yeah, we have given the ESHOP to the employees and around 35 lakh of rupees. 35 lakh? Has been booked as an expense for Eshop which will be vested three year down the line.
Himanshu Dugar
Yes. 35 Lakhs. 35 Lakhs share.
Manish Agarwal
35 Lakh Rupees. 35 Lakhs.
Himanshu Dugar
Okay. Rupees. 35 lakhs. Okay.
Vikash Agarwal
Market price anyways.
Himanshu Dugar
Got it, Got it. The other question is around your expansion plans because till now you have largely been focused on the UK universities which are primarily finance focused rather than the US or the Canada based universities which have more of an engineering focus. So I presume that currently when you think of your agent network also the 10,000 agents that you have today, they will also have more of the what you call finance background candidates that they’ll be able to. So if you just highlight what are you kind of aspiring towards in terms of agent expansion or in terms of the universities in Canada and US that you’re trying to find?
Vikash Agarwal
I mean our agents get students for all the backgrounds including science, business, healthcare, everything. So it’s not that our agent get a student who is only interested in business or finance. Even today if you look at roughly 30% of the students who goes would be for function engineering background rather than all into computer, all into business or computing or healthcare. There’s a mixed bag.
Himanshu Dugar
Okay, so in terms of agent, are there agents for typically say from the universities like the college teachers etc and act as agents or there are other institutions as well.
Vikash Agarwal
I mean these are agents who and counselors who guide the student. So anybody who has an extra students who give them the guidance can be a part of our platform.
Himanshu Dugar
Again my question was more on the type of these agents. Are they individuals who are say you know like college teachers or part time professor ET become your agent or they are like smaller and
Vikash Agarwal
Most of our agents would be small and mid sized business with multiple people working for them.
Himanshu Dugar
Okay, so in terms of the application. So like you said last time, last first quarter you had 110,000 applications that source and process primarily from the small Right, who are.
Vikash Agarwal
Yeah, it’s a combination of small and big size agents. So I’m panel in our system.
Himanshu Dugar
And when we say that 65,000 has become 110,000 applications, so does that translate to people applying sooner or just translating to them applying? I just try and understand how the expansion was given. What is given by number of universities, number of candidates, number of events and you just break that down.
Vikash Agarwal
It’s a combination of both. There is some element of people applying a bit early, but likely we believe this is more because of the growth which will come in coming days because students tend to apply a bit earlier, three to six months before the intake starts.
Himanshu Dugar
And these numbers applicate and features like other. As many candidates have also applied for two universities at the same time.
Vikash Agarwal
No, these are unique applications, not the unique students. So there can be one student applying to three different universities, for example. So this 1 lakh 10,000 on number of application on our system and not number of unique students.
Himanshu Dugar
What would be typical range like number of candidates are they applying for?
Vikash Agarwal
Average between two and three. One student would apply to two or three institutions.
Himanshu Dugar
Just one last question from my side. So given whatever we have been hearing from the usa, which could be kind of impacting or probably diverting more candidates towards uk, if you could just kind of quantify some data points around how it has seemed to have impacted in the last few months versus earlier.
Vikash Agarwal
Chris, you want to add this?
Christopher Flood Nagle
Yeah. So I mean this is a recent trend, so in terms of hard data, there’s not a lot of it yet. But what we do have in terms of anecdotal market sentiments and websites that track traffic and interest of students globally, we do believe there’s a shifting demand from say US to UK and to other alternative destinations and we expect that to come out in the data in the future. The important point to remember is that the tightening of some policy by the current US government has not dampened global demand for international education. So even if a student is no longer going to the us, they are going somewhere else.
Himanshu Dugar
On this point, is this trend kind of similar across countries because you have presence in India as well as Africa and China? So are you witnessing some such happening on the trend from Indian perspective? Or even the African or the Chinese natives are also interested? Probably trying more on the UK based universities rather than the US universities.
Christopher Flood Nagle
Of course there are always local variations in terms of what the second choice might be. However, it can be said generally that your typical student that is interested in going to us, their second choice will quite often be the uk. Of course there is regional variation, just particularly to do with geography, but you can say that it’s a trend not just in India.
Himanshu Dugar
All right, thank you so much.
Vikash Agarwal
Thank you.
Operator
Thank you. Ladies and gentlemen, Please limit to 2 questions per participant and come back in the queue for a follow up. The next question is from the line of Samad Patel from Egwe’s Securities Private Limited. Please go ahead.
Samarth Patel
Thank you so much for providing me the opportunity. My question is, Nick, how we plan to build a high quality agent network in geographies like, let’s say, Nigeria, Southeast Asia, China, given the interest from students in outbound education, particularly for UK and would it be primarily to improve supply of students going to only UK or. I mean, this can also help us in terms of expanding to other geographies such as, let’s say US or Australia as well.
Vikash Agarwal
Chris?
Christopher Flood Nagle
Yeah, so the great thing about our model is that our business development in terms of building agent networks in different geographies, the strategy remains the same across any geography, which is that initially we conduct outreach to agents to have them sign up on the platform and then once we build traction, word of mouth takes hold and we have agents signing up in an organic way. And yeah, we build and have built our agent networks in Nigeria and in China using the same business development.
In terms of whether these agent networks are sending students just for the uk. Most agents on the ground service the demand of students on the ground so they can send to anywhere that Kryzac has options. So currently we are sending majority students to uk but as we build out other destinations, we have an agent network already on board to send to any destination that is popular.
Samarth Patel
Understood. That was really helpful. Chris Patrick from my side and thanks for providing this opportunity.
Operator
Thank you. The next question is from the line of ashish Parikh from MK Investment Managers Ltd. Please go ahead.
Ashish Parekh
Yeah, hello. Am I audible?
Vikash Agarwal
Yes.
Ashish Parekh
Yeah, thank you. So my question was in terms of an agent. If I am an agent and I want to connect with your platform, so how would I find the platform to get registered on it? Do you have people on ground to, you know, find these agent and get them registered on your network or is there any mechanism, can you speak on that?
Vikash Agarwal
Yes, we do have people on ground who guide, identify and help those agents to rest on platform. But at the same time many of these platforms, many of these agents come on our platform organically from word of mouth.
Ashish Parekh
Okay, just to follow up. So can you just provide any, you know, number of people that are actively on ground or any ballpark number?
Vikash Agarwal
We, we have over 60 plus marketing managers who are involved in marketing process.
Ashish Parekh
Okay, understood. And my second question would be say in terms of your top 10 top five agents. So in terms of stickiness, so are they you since a long time or your journey of the top agencies frequent? Can you throw some light on this?
Vikash Agarwal
No, I mean the sharing of agent is not very high. We have agents who have been with us for, since the inception of business.
Ashish Parekh
Okay. And this last question, so in terms of their, you know, revenue share, so if an agent brings in say 10 application, 20 applications either in dynamic pricing or do the agent get paid on a flat basis?
Vikash Agarwal
Typically I agent get paid on a flat basis, but we do have some incentive mechanism for people who bring in higher number of applications.
Ashish Parekh
Okay. Okay, thank you.
Vikash Agarwal
Thank you.
Operator
Thank you. The next question is from the line of Varun Singh from AAA pms. Please go ahead
Varun Singh
Am I audible? Yes, just one second. Is it better now?
Vikash Agarwal
Yes, thank you.
Varun Singh
Yeah. So my first question is 2% of your revenue in this quarter is a loss from forward contracts. So that’s a. I mean that’s a meaningful amount. Just wanted to understand, I mean, what exactly is this line item and how should we maybe expect this number in future? I mean, for example, in FY26.
Manish Agarwal
Hi. We always hedge our inward remittance against the Forex fluctuation. So this quarter we had a loss of around 4.5 cr because we have booked the or we have hedged the amount at a lower rate, but the major currency pound and euro has gone up. It might happen we are seeing as a loss in terms of line item, but this also higher revenue because proceeds at a higher conversion rate.
Varun Singh
No, no. So I mean for a medium term point of view, like one year, two year. How should we expect this hedging cost as an element of our business model? That’s a primary question.
Vikash Agarwal
Sure. These hedging costs are variable. This year the pound has move abruptly compared to a standard movement. That’s why you’re seeing this as a notional loss. Tomorrow the pound goes down, these loss will disappear and at the same time as that, in case, if it doesn’t go low, in that case, the money what we receive will be at a higher conversion rate of a pound, which will give a higher revenue to the company. So if you look at net net, there won’t be any impact on the business.
Varun Singh
Okay, understood. And my second question is on, you know, the linkage between application growth and. I mean, I understand conversion or enrollment could be any number between 7% to 15%, but still, for example, in FY24 50, growth in application converted into the 34% revenue growth. And then in FY25, only 5% growth in application, that 5% growth resulted in 34% growth in revenue. So there’s a huge difference in terms of the conversion itself. I mean, or I don’t know what the reasoning behind it. This wanted some clarity behind because our Current number of 5960 Application growth is quite heavy. So If you can explain the FY25 and 24 linkage of application growth not tying up squarely with the growth that we have experienced. That’s my last question.
Vikash Agarwal
In terms of growth of application Compared to quarter one of 24 to 25, we had a roughly 70% growth. Last year. Quarter we did 65 students, this quarter we did 110. This growth should translate into a higher number of students going abroad, which means higher revenue based on again, this is subjected to conversions. But if the conversions remain similar, we believe this would lead to roughly 30% growth in the business on an annual basis.
Varun Singh
Actually, my question is on the annual number itself. FY25 number of applications, just 5% growth and that translated to 34% revenue growth. I think as you pointed out, that eight to nine months early we start taking applications and maybe that’s the cycle which converts from that point of view. I mean, what explains this higher enrollment in FY25 and maybe lower enrollment in FY24? That was the question.
Vikash Agarwal
I’m still trying to understand your questions.
Varun Singh
Yeah, sure. On slide number four, you have given this data on number of applications processed by geography. So FY25, 2.75 lakh is the number of applications processed. That is a 5% growth compared to 2.62 lakh application that we produced.
Vikash Agarwal
Understood your point? Yeah, yeah. In between FY24 and FY25 there was review called MAT review in May 25, I believe. 24. Sorry, that has kind of. There was a debate in UK government whether they want to continue with the post study work visa or not that had affected or that has made the student to wait and understand the impact. This review came positive and there was no major change in immigration policy during the Mac review. That’s why you’re seeing a lower number of applications process during that period. But after the Mac review was done, the students who were more serious about applying had applied and those conversions was higher because of those students who were serious about going there
Varun Singh
Okay. So that’s. That’s the reason that despite only 5% application growth, conversion rate was significantly, significantly higher.
Vikash Agarwal
That’s what. That’s correct. Yes.
Varun Singh
Okay. All right. And in FY24, only 34% growth compared to more than 50% application growth. I mean, what explains that part? Then
Vikash Agarwal
Again, if you’re comparing application to revenue growth, because revenues comes from a academic intake basis, while application growth happens earlier, six to nine months earlier. Yeah. So you will always see that deviation
Varun Singh
And. Which should be rectified in from the financial year perspective. Right. From 12 months.
Vikash Agarwal
If you look at the 12 months point of view, you’ll see some consistency on that one. At the same time, as the company is growing with higher volume of applications and students, there will be a delta. We need it for higher volume in terms of revenue as well as we do volume.
Varun Singh
Sure. Thank you very much. Wish you all the best.
Vikash Agarwal
Thank you.
Operator
Thank you. The next question is from the line of Mihir Manohar from Carnelian Asset Management. Please go ahead.
Mihir Manohar
Yeah, thanks for giving the follow. Sir, wanted to understand the revenue recognition side. When do we recognize revenue? Is it only when the student gets enrolled in the university? So when do we recognize the revenue? And when do we recognize the commission expenses?
Manish Agarwal
We recognize the revenue. Hello. Yeah. Yes, sir. Yes, we recognize the revenue once the student is enrolled at the university, and the university confirm us that the amount is payable to us at that moment. Now, when it comes to cost of sales, we recognize it immediately once we book the revenue.
Mihir Manohar
Okay, understood. Sure. Second question was on the split between PG and UG in enrollment, what will be the split between PG and ug? And in applications, what would be the broader split between PG and ugly?
Manish Agarwal
75% of applications are postgraduate and 25% are undergraduate.
Mihir Manohar
Okay. And even enrollment split remains the same.
Vikash Agarwal
Yes.
Mihir Manohar
Okay, understood. And this one last question was on more on the up side, when we see, I mean, over the last five years, the number of students enrolled in UK has gone Up substantially. Especially Risha Sunak also being there also helped Now, I mean we source for the skilled worker visa program situations getting more tightened. There is increasing salary threshold limits as well as the level three qualification when going up to level six. And there are talks of this special fee getting introduced. So how, I mean how do we see the overall situation in UK specifically for the immigration side with reference to student immigration if that situation gets more tightened and especially given the fact that the base has gone quite sharply up. So how to understand the situation for Europe? Hello.
Vikash Agarwal
Hi. Right, you there?
Mihir Manohar
Yeah, yes sir. Yes sir, I’m there.
Christopher Flood Nagle
Yeah, sorry, sorry, could you just repeat the question I wasn’t able to understand?
Mihir Manohar
Yeah, sure, sure. So broadly what I’m asking is when we see over the last five years the number of students enrolled in UK specifically from India has gone up from 20,000 to 175,000. And also Rishi Sunak being there, Prime Minister got a benefit around there will be. I mean specifically for skilled with the worker visa program that is getting gradually both items. If that translates into student worker visa program, also student visa graduate as well as the graduate. Will it not be a challenge for us? Because given the fact that the base itself has gone up almost 7×8 in the last five years
Christopher Flood Nagle
I mean, it’s not our area of expertise to forecast this kind of exact thing in the UK economy. What we can see is robust demand from Indian students to go and study in the uk and that’s what our business is focused on. So from our perspective, we see that the demand from India is still robust and everyone is connected, the world is connected. If there were not a return on investment for Indian students going to study in the uk, then everyone would know about it quickly and we would see a change in the demand. So for us, the most intuitive way of judging and forecasting this is to look at the demand. And demand is so robust in, in our view.
Mihir Manohar
Understood the September intake in 30%. Fair point. That’s it. That’s it for my suggestion. Thank you very much, sir. Thank you.
Operator
Thank you, ladies and gentlemen. That was the last question for today. I now hand the conference over to management For closing comments.
Vikash Agarwal
Thank you very much everybody for taking time to join our investor meet. We thank you all for giving us time and thanks for your valuable questions. Have a good day. Bye bye.
Operator
Thank you on behalf of Equerious Securities Private Limited concludes this conference than thank you for joining us. And you may now disconnect your line.