Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Digispice Technologies Ltd (NSE: DIGISPICE) Q4 2026 Earnings Call dated May. 18, 2026
Corporate Participants:
Hashika Mutreja — Adfactors PR
Dilip Modi — Chairman
Sunil Kapoor — Whole Time Director and Chief Financial Officer
Aastha Garg — Head – Investor Relations
Analysts:
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen, good day and welcome to DigiSpice Technologies Limited Q4FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode. And there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Harshika Mutareja from AD Factors PR.
Thank you. And over to you ma’. Am.
Hashika Mutreja — Adfactors PR
Good afternoon everyone. A warm welcome to you all and thank you for joining us today for the Q4 and FY26 earnings call of DGSpice Technologies Limited. We are pleased to have with us today Mr. Dilip Modi who is the Chairman of DG Spice Technologies. Mr. Sunil Kapoor the whole time Director and Chief Financial Officer of Spice Money Limited and Ms. Astagarg, the head of investor relations of Spice Money Limited. We will start the session with the management providing an overview of the operational and the financial performance for the quarter and the year ended of 2026.
Post which we will have an interactive Q and A session. Before we begin, I would like to draw your attention to the fact that certain statements made during this call may be forward looking in nature. These statements are subjected to risk and uncertainty that could cause results to differ materially. A statement in this regard has been concluded in the result presentation sent to you earlier. Thank you. And over to you, Mr. Dilip Modi.
Dilip Modi — Chairman
Thank you. Ashika. Good morning. Good afternoon to all those who joined this call. It’s a great pleasure to connect with all of you. We’ve also put up our presentation that we will refer to during this call on both our website as well as uploaded it on the stock exchanges. So for easy reference I would really request if you can open up that presentation it will just help you follow the conversation. If you cannot, you can refer to it later, you know and go back and you know you’ll be able to correlate with some of the points we will be making during this call.
So let me start by saying that you know this is our first call following the close of the financial year FY26. So today we’ll be talking both in respect to quarter four, but more importantly in respect to the year FY26. Compared to FY25, it’s another year that we completed in our journey of financially empowering rural Bharat. Just to recap our business model, we at Digispice Technology basically are building a business called Spice Money, which you know is in the process of being merged into Digispice Technology.
So before the close of this financial year, we are hoping that Spice Money will get directly listed on the exchange and both the exchanges. That is a process that we are working on. If I now talk about Spice Money, what we are building at Spice Money is digital platform. So basically it is a mobile app used by agents across Tier 3, Tier 4, Tier 5, to deliver basic and formal banking and financial services to communities around them. As of the end of this financial year 2026, we have seen that now we have close to 1.7 million banking agents who are using our Spice Money agent app to deliver basic banking services to nearly 170 million customers across 2.6 lakh small towns.
And when I refer to small towns, these include towns with a population of even less than 20,000. So we have a deep penetration where bank branches and ATMs have not reached. We have reached through our banking agents and we have 1.7 million of them as of the end of financial year 2026. In addition, we at Spice Money are also building a consumer app. So while we have an agent app, we are also building a consumer app. These 170 million customers who transact every year at our agent points at the agent shop.
These are cash for customers who are using our platform in an assisted digital payment mode to come in and withdraw cash from their bank account, deposit cash into their bank account, pay their bills and send money to bank accounts. We are now hoping that we can bring them onto the UPI Rails directly. So as a company, we have a prepaid instrument wallet license from the regulator and now it is UPI interoperable, which basically means that we can open up a digital wallet account with the consumers who are coming to our agent points and they can get a UPID and a QR and a consumer app and they can put money into the digital wallet and they can start transacting on their own using upi.
So effectively from an NPS only platform, we are moving to upi. Now, this is a different segment of the market and as you’re aware, more and more India is now adopting UPI across small towns. So we will also work to contribute towards the growth of UPI in the country. One of the points that I would like to highlight is that in addition to our agents using Aadhaar enabled payment system to enable customers to withdraw cash from their bank account and deposit cash into their bank account, we have also launched UPI cashpoint.
So now at our 1.7 million agent points, consumers can use UPI any of their UPI apps to withdraw cash. This is a new product brought in by mpci and it is keeping in mind the growing adoption of UPI across Bharat and the ability for consumers now to use their UPI app to not just pay for goods and services but but also to withdraw cash from their bank account. As one of the largest BC agent networks on the ground, we have a unique opportunity to enable consumers to now withdraw cash using upi. So this is a big development in this start of this new financial year.
And as more and more of the popular UPI apps go live on this platform, we expect this business to pick up. So not only will we enable people to withdraw cash using Aadhaar, but also UPI just to close on the overall business. So one is our agent business which is a running business and most of the numbers that we’ll talk to you are through for that agent business. The second is the new business that we are building which is the consumer business. And the third leg, which is also a new business that we are building is the lending business.
So here we operate as a loan service provider where effectively we enable third party lenders to lend to our agents to begin with because they are the ones who are on our digital platform. And this business also, as we will share with you in the numbers, has begun to scale and more importantly has also is moving towards not only scaling on top line, but also getting towards a roadmap to profitability. So effectively the lending business is something that we are looking to further build on here. We have our own proprietary underwriting models that as a loan service provider, we work with the lenders to enable them to use to be able to build credit products for our agents.
And this is something that we are looking to also scale just directionally. If you are referring to the presentation, I would request you to move to slide number four on the presentation which shows the roadmap and the way ahead in our journey. So we are deeply committed to building Bharat’s, you know, not only Bharat’s largest assisted ATM network, you know, going deep into Tier 4, Tier 5, Tier 6 markets, but also building Bharat’s largest rural collections network. And here I would like to emphasize that we also have the BDPS license with the with NPCI and the regulator.
And basically we are going to use this to enable digital connections at the last mile across small towns. So you know consumers are now will be able to walk up to our agent points and pay them EMIs as per their convenience. And not only consumers but even agents can now use the Bharat Bin payment system platform to pay their EM to deposit their cash collections at our BC agent points which can then help them to move that money to digital faster directionally. We are also looking to use this network to deliver on formal financial products like credit, savings, investments and insurance.
Again in the numbers we will show you of how in the financial year 26 we have started to see these numbers scale and then finally our own home products of our own wallet as well as our own credit, especially on credit. We will share with you in the numbers as to how that has performed in the last financial year. Going to page number five quickly talking about the key highlights on the year gone by we have from a P and L point of view we are trying to be efficient. So while we are chasing growth we are also ensuring that we maintain financial discipline in terms of, you know, building a steady P and L.
So for the financial year 2026 from our continuing business we have delivered a PAT of 25 plus crores against about 6 and a half crores in the previous year. And just from an overall pat point of view it’s close to about 19 crores compared to 20 lakhs in the last year. So just on numbers we are hoping that now the business as we begin to add more products to the distribution pipe we’ll start delivering on operating leverage and that’s going to be the focus in the financial year 2027. Just on the merger update, again on page number five we have got various approvals from RBI, SEBI and all in place.
The merger application was placed before the honorable NCL team where our first motion has been accepted and now we are moving towards convening a meeting of our shareholders for approval of the merger and then moving towards second motion. So like I said that we are hoping that within this financial year we can close this merger and Spice Money directly being listed on the exchange. Just overall I think as I mentioned on the credit operations we are scaling up the business. We are also ensuring that we are efficient in terms of beginning to contribute to our bottom line.
And overall I think as a tech first business we are focusing on making sure that we can continue to drive operational efficiency on a constant basis. Just in terms of product expansions, as part of the highlight we have launched two new products in the last year, insurance and credit card. And and both these products we will share with you numbers of how they’ve begun to scale. Also in terms of our partnerships with banks, there have been recent guidelines on the business correspondent model by the regulator where they’ve come up with two variants.
One is a business correspondent banking outlet and the other is a business correspondent banking touchpoint. These are guidelines that are going through deliberation to be closed by end of June and then they come into implementation towards quarter three. We have already started working with some of our banking partners to open banking outlets. So some of our agent points are already beginning to graduate from just being ATM in collection points to also becoming banking outlets. So this is all the key highlights and then finally I’ll close before I hand over to Sunil to take us through the financials is on page number six where we’ve given you some key metrics for the year.
So as I said on page number six you can see that we’ve closed now close to 16.6 lakh registered agents as of March 2026, about 2.57 lakh small towns covered on a monthly basis we are nearly 27.5 million customers that we are serving on the product metrics. EPS is our core business. We grew 15.9% year on year to closely at 59,000 crores and a market share of close to 18% on collections on BBPS we did about 5,700 crores or 7.5% growth year on year on accounts open. Now we’ve opened close to 1.6 million accounts for our banking partners with nearly a 1.6x growth year on year.
And what we are finding is that we are now beginning to get good balances in these accounts which is a good sign of quality. And so we’ve seen a growth in float balance in these accounts opened by nearly 45% year on year. On credit distribution where we again work with banks and NBFC’s partners we’ve seen about over 600 crores dispersed in the previous year, nearly a 2.8x growth. And just on the PNN numbers we closed the year at close to 464 crores, nearly 4% year on year growth, a gross margin of 200 crores which is a 13% year on year growth, an EBIT of close to 37 crores which is a 2.4x year on year and a pact for our continued business of about 25 crores.
So these are the key highlights I’d now like to hand over to Sunil who’s leading the finance function to talk us through the numbers which are on page seventh.
Sunil Kapoor — Whole Time Director and Chief Financial Officer
Over to you Sunil. Hi, good afternoon everyone. So I am covering the financial highlights for the financial year 26 and if we see that our customer GTV has grown by 10.5% year on year and our revenue is also grown by almost 12% but it is reflecting on only a 4% over here that’s for the reclassification from the perspective and if we see the gross margin coming through 13% growth which is almost 23 crores increase in the gross margin on absolute terms and which is flowing directly to the EBITDA and on the indirect cost that’s an operational efficiency from the perspective that whatever the investment we have done in the network and in the teams we are continuing to optimize that also.
And so we have plugged almost 24 crores of EBITDA in comparison to the previous financial year. And consequently the abet side we have a growth of almost 2.5x and reaching out to 37 crores and PAT of 25 crores in comparison to the previous financial year. So if we see on the discontinued business side also the expenses have come down with respect to our focus on closing those entities and we are working on this discontinued business that in this financial year this will be will convert to kind of zero and we want to kind of get away with the structure of the companies which is primarily in the foreign land.
And if you see on the path after the national gain loss 19.3 crores against 39 crores of loss in the last financial year and there is an exceptional item of 3.3 crores with respect to the labor laws provisions. So considering this, these numbers this was a very encouraging financial year for us where we have clocked and created the momentum that profitability and operating efficiency go hand in hand the growth hand. So from the perspective of new opportunities and what Dilesh has called out, we are hopeful that we will be working on new opportunities like the change in the regulations and with respect to DO and BT opportunity and having the financial products distribution will be the more focus and the credit.
And we are hopeful that considering that this in this quarter we will be kind of achieving the EBITDA positive in the credit engine that’s we have calling it out as a new engine but on the spy space side which is which is yet in the build stage. We want to call out that we were trying to insource that so we have an agility to introduce the products and do the changes and for as per the customer needs. So hopefully in the next two years we will be having more on the spice pay and having a customer touch base directly and selling in the cross selling and upselling products on that.
And we are very hopeful that the way this financial year has kind of showing the kind of turnaround and growth momentum, we will keep on building on that. And that’s all from my side. I’m handing it over to Astha for the business updates. Thank you.
Aastha Garg — Head – Investor Relations
Hi, good afternoon everyone. I’ll be covering some of the key business updates for the financial year 26. For those of you who you are who are referring to the presentation uploaded on the exchanges, I’m starting from page number eight. So I start to discuss about the agent base that we’ve continued to build in the last financial years. We’ve been continuously working on our agent expanding our agent base across India. And if you see on the numbers we have expanded from almost 1 million agents in financial year 22 to almost 1.7 million agents in financial year 26 which is a growth of almost 13.4% over the five years.
If you see the kind of depth that we are trying to build of this agent base, these agents are now located in almost 2.57 lakhs small towns in India across the 6400 blocks. And out of this total 16.6 lakh agents, 13.2 lakh agents are sitting in the tier 4, 5, 6 small towns where the population is typically below 20,000 per small town. So that is the depth of our base in the core rural areas of India. If you see on the geographical strength, we continue to be strong in the north east and central belt of the of our country where almost 84% of our overall agent base still lies.
And we’ve been continuously working on expanding our presence in the south and west regions where today now almost 16% of our agents are present. But we’ll continue to consolidate on all areas across India, whether it’s the high potential district in our stronger regions or the currently weaker regions where we want to build our market presence on the top of our agent base, we’ve also been building on multiple products to come into our pie to expand our overall GTVs and gross margins. Looking at the GTV Numbers on slide 9, overall GTV we’ve grown from 115.8000 crores in FY25 to a 127.9 thousand crores in FY26 which is a 10.5% growth year on year.
And if you see the major percentage of this growth has come in from the newer segment which typically consists of our credit business and some of the newer products that we are introducing in the quarterly numbers there’s a slight growth of almost 1%. And this was this quarterly numbers see a lot of subsidy cycles in our major products ATS. So that really impacts the kind of GTVs that we see on the overall numbers on the back of the group. On the GTVs, we have also seen our gross margins expand in the last financial year from almost 178 crores in FY25 to almost 201.2 crores in FY26 which is a 13% growth.
So against a 10.5% growth in GDV we have seen a 13% growth in gross margin. This is because of the reason that the new products that we are introducing, for example credit, insurance, banking, which includes casa, these are high margin products as compared to the traditional products that we were working with. Hence the gross margin percentages are also improving. Now I’ll cover some of the key product updates starting with our key business which is AAPS business. On the AEPS business on the cash withdrawal side, we have seen a growth of almost 16% in the spice money GDVs.
And against that the office APS industry has grown by 9%. So this growth where Spice Money has outpaced the industry has led to an increase in market in our market share from a 17.27% in the last financial year to 18.4% in financial year 26. There’s a slight dip primarily in the quarterly quarterly market share of Q4FY26 and that has been due to the subsidy cycles that we’ve observed within the different states in the APS office cash withdrawal business. On the transaction success rates also if you see that they have remained stable above 70%.
And the customers who are coming onto our platform to withdraw cash regularly have also grown 60 by 6% from a 10.6 crore customers coming in FY25 to almost 11.3 crore customers coming to our platform to withdraw cash in FY26. The major reason for this growth has been the introduction of subscription packs which is helping us maintain sickness of the adhikaris on our platform and leading to our overall GTV growth. If we see the GTV of these adhikaris on our platform, we’ve seen their GTV contribution to our overall GTV grow from a 33% in the last financial year to a 44% in financial year 26.
So that’s where the major growth is happening. Also, like I already mentioned, we will continue to focus into expanding in our high potential districts where our presence is still weaker than the other regions and continue to expand on the overall cash withdrawal business. Now coming to the next two opportunities in the AAPS space which I have been mentioning in the previous calls as well, which is the AEPS cash deposit business as well as the APS UPI cashpoint business, we’ve seen consistent growth in our APS cash deposit business in the last eight quarters.
If you see on slide 10 we’ve seen the GDV growth as more and more banks have gone live on this product and as more integrations of the bank happen, we are hopeful that this is a space that will continue to grow on GDVs for us on the UPI cash Point business which got started in the last month of financial year 26, now we are seeing that we are already at a run rate of almost 100 crores GDV for a month and we are holding a market share of close to 30 to 35% in this product as well. This is one of the major products that we see expanding in the next financial year for us from the GDV point of view.
On the top of the cash withdrawal business we’ve also built a strong foundation in the collections business. Though I’ll mention upfront that the CMS business in this cash collection spy has been under high competitive pricing pressures and we’ve been continuously solving that by strengthening our supply side. On the overall collections volume though, if you see on slide number 11 we’ve seen the volumes expand by 7.4% on the overall collections volume. While if you see the growth that we’ve gotten in this segment from BBPS, the increase in BBPS business is by 12%.
So this is the pie that we are strategically focusing to expand on the overall collections pie. The BBPS business used to contribute approximately 9% of overall collections GTV in the Q4 of financial year 25 while it has now started to contribute almost 13% of our overall collections GDVS in the latest quarter. So that is where we are strategically shifting our focus. And if you look at the overall client funnel also today we are working and expanding on the client funnel on all of our fronts whether it’s TMS or bbps.
But the major focus for us is to slowly transition the clients that we are working with CMS on today which is the ADPIP clients to the BBPS agent EMI mode. So that as more digitization happens and adoption happens within the enterprises, we are able to grow in the collection space on the back of BBPF business. Now moving to the other key focus area for us which has been the financial product distribution business where we entered this business by opening accounts for the partner banks that we are working with.
Today we are working with a couple of partner banks which is the Access bank and the NSDL Payments bank and till date we’ve been able to open almost 16.5 lakh accounts with them with over 305 crores of floor balance that is lying in these accounts. This float balance has helped us started generating a recurring float income of above the 50 lakhs per quarter. And if you see the average bank balance per account, it’s approximately 1800 rupees per account which means that healthy bank balances are maintained and good quality accounts we are able to open for the partner banks that we are working with.
The next focus area in this space for us is coming with more cross sell products e.g. SDS, RDS and saving products in the coming financial year. The other product that we started distributing in the financial product distribution space is the loan distribution for the lenders that we’ve partnered with. Today we have partnered with seven lenders on our platform and with those lenders we’ve been able to disburse close to 5.39.6 crores of loan in financial year 26 as compared to a 198.1 crore loan in FY25 which is a 2.7x growth on a quarterly basis.
Also we are growing faster in this space and our target will remain to strengthen the supply side as well as bring more categories of products on the credit side. The two new products like Dilip sir mentioned that we introduced on the last financial year include both the credit card as well as the insurance business. In insurance business currently we are distributing two products where we have sold almost 35,000 policies till date. The target here will again be to strengthen the supply side by bringing more aggregators that we work with as well as at least five more products.
Insurance products are in pipeline for us in the next financial year to be introduced. Now coming to the more important updates on our credit business where this is the business that we are building on the back of the transaction data that we have of our adhikaris on the back of this data of our Adhikaris and the vintage of them working with us on our platform for a very long time we are able to underwrite the loans better for the partner lenders that we are working with today and we are working with them under FLDG backed model to date.
And if you see on the disbursement side the disbursement has grown from almost 20.5 crores in FY25 to 66.7 crores which is a 3.3x growth in a year. Also today we are at a quarterly disbursal rate of 20 crores per quarter and this rate is improving because of our ability to give repeat loan to our Adhikaris. Why that is happening? Because once we give loan to our Adhikaris and they are able to show up payback capabilities we are trying we can offer them a higher ticket size loan and that is leading to an increase in our ticket sizes also we are also able to maintain a stable portfolio quality by maintaining the loss rate in our credit business and one of the key reasons for that is the platform led operational efficiencies.
Like I mentioned in the previous quarter as well, we have launched the MSME lending product with motooth in quarter three of the financial year 26. The numbers though may be small but this is the major product that will be driving growth for us over the by driving more strategic partnerships in both Adhikari as well as as well as then bringing in more product on the NSME lending side to grow in this space. Then on the last slide we’ve just given a gist of the key licenses and partnerships that we have and with that I think I’ll hand back over to Harshika for hosting the Q and A session.
Thank you.
Operator
Thank you very much. We’ll now begin with the question and answer session. Anyone who wishes to ask a question may press one on the Touchstone telephone. If you wish to remove yourself from the question queue you may press 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. Participants. You may press Star and one to ask the question. First question is from the line of Rushta Seifi from Robo Capital.
Please go ahead.
Questions and Answers:
Unidentified Participant
Good afternoon. Good afternoon. Thank you for the opportunity. I just wanted to know your outlook on top line growth and ebitda margins for FY27 and 28.
Sunil Kapoor
So as I mentioned about that, whatever the growth we had done in this financial year and this was a kind of a turnaround financial year for us. And we are hopeful that the growth momentum will continue to in the next financial year and beyond. And we expect that at least in the profitability terms, we should be plotting 20% growth year on year in the coming two, three years. What we envisage.
Unidentified Participant
Okay, thank you so much. That’s all, all the rest,
Operator
Thank you. Next question is from the line of Silesha from Sway Investments. Please go ahead.
Unidentified Participant
Hello.
Operator
Go ahead, ma’. Am.
Unidentified Participant
Yeah, thank you for taking my question. Just wanted to know, do you have any plans to increase your presence in the southern part of India?
Dilip Modi
Yes. Especially with the launch of UPI Cashpoint, we believe that there’s a great opportunity for us to expand into South India because there is very strong UPI adoption that we see in the South. And in an informal way, people have been using UPI to withdraw cash. And this has been a product aimed to organize this market and to formalize this market. So on the back of both UPI Cashpoint as well as financial product distribution, we believe that there’s an opportunity for us to grow in South. It’s a very robust market and you know, there’s a lot of especially microfinance and gold loans and all that.
There are lots of players in the South. So as we Deepen In Tier 4, Tier 5 and Tier 6, there’s an opportunity for many of these players to leverage our network. So I think in partnership with them, we hope and believe that over the next two, three years we can create a presence in the south akin to the presence we have in the North.
Unidentified Participant
Understood, Understood. The second question I had was regarding Adhikari loans. What is the growth and revenue expected from that and what is the rate of interest which you are charging to them?
Dilip Modi
So just in terms of the rate of growth on the Adhikari loans, you know, what we are seeing is that as our underwriting models are getting more mature, we are able to also do not only first time loans but also repeat loans. And that is helping us both on ticket size as well as tenor. So that is helping us really strengthen. So the model itself, as it said, strengthens with data. There’s a compounding impact both in terms of ticket size and tenor and that has an impact on the overall value of the loans dispersed.
So going forward, we believe that as we create more sticky adhikaris on our platform because Adhikari loans, we only give to those Adhikaris with a certain vintage on our platform. As we grow this tiki base through subscription and other products that we are Launching more and more adhikaris. Doing more on our platform will lead to growth in credit. So it’s our own internal flywheel where we are using transactions to generate data to be able to build our underwriting capability, to be able to deliver efficient credit, which ultimately becomes a driver of income for our adhikaris to do more products.
So it’s a flywheel that we now hope that we’ll be able to strengthen. Which basically means that we can see this business growing from an X factor point of view. Like we are hoping that this business can grow 2 to 3x every year. So you know, the only thing we have to watch out for is the performance of the loans. And because it’s a daily installment product, we are able to get early signs on performance. And so for us, you know, because we get the first loss default guarantee, we want to make sure that there are no to losses that hit us.
And that is why as we scale up with lenders, we will make sure that we are able to watch on performance. One point I want
Sunil Kapoor
To add on this, that there are repeat loan borrowers and we are growing with them kind of we are enabling them the credit and they are growing and the ticket size is increasing from that perspective also. And the interest rate is almost 32 to 36% that we charge. And there is also cushions with respect to that we charge lesser to those who are repeat borrowers. And from that perspective we are building the trust.
Dilip Modi
So our focus is basically that as we understand the risk profile of the underlying borrower, we are able to consistently reduce the rate of interest, to be able to incentivize them to borrow more, to be able to reduce their cost of borrowing. So ultimately the vision is to go down to close to 24, 26% and directionally keep moving lower to reduce cost of borrowing.
Unidentified Participant
Okay, okay, understood. Just last one question if I may take. Given the macroeconomic uncertainties which we are having, will there be any significant impact on our financials?
Dilip Modi
You know, given what’s happening at the macroeconomic level, this is of course going to impact the whole economy per se, and we have to wait and watch to see what it impacts in Uruguay. Bharat but one thing we are the way we see our business and we’ve seen it every time there’s an external shock that the platform that we built is an essential payments platform. So people use our platform to withdraw money from their bank account to spend. People use our money to pay their essential bills. People use our platform to get access to know lower cost credit so we are hoping that when there are these external shocks as an essential payments platform, we’ll be able to hopefully see lesser impact.
We are hoping so. But having said that, with expected inflation and other things, you know, discretionary spending may reduce, but we are just, we have to see what impact it has on essentials. So it would be wrong to say that there will not be an impact. We just have to wait and watch what that impact will be. But we continue to focus on driving efficiency. So if you look at collections also, we are moving from collecting from the branches to collecting from the customer. So our whole focus is on cost efficiency and operational efficiency.
So in a situation where the macroeconomic environment is getting tighter, a lot of our partners would be looking to drive efficiency of collections and efficiency in cost. So we hope that as a platform we can enable them to drive more cost efficiency. So during tough times, we hope that we’ll be able to use our platform to enable our partners to bring down costs and improve the time to cash. So
Sunil Kapoor
I want to add one thing. There is a positive side maybe also with respect to that because whenever there is a macro uncertainties and there is an impact in on the Indian economy, the government also come forward and support the for the financial inclusion standpoint of you. And more and more subsidies may be going into the support the basic needs of the people of rural, rural and semi urban people. And so from that perspective, our APS infrastructure, as we have seen in the pandemic, also during that period there was a support from the government and our business has got some positive side of it.
That’s also important.
Unidentified Participant
Thank you.
Operator
Thank you. Next question is from the line of UTSA Bayati, individual investor. Please go ahead.
Dilip Modi
Hello? Yeah, hello. Am I audible?
Sunil Kapoor
Yes, yes, please, please go ahead. Yeah,
Dilip Modi
I just had a few questions like last financial year, the financial year which has gone by, we saw that Q1 and Q2 saw a good traction in the revenues. Then Q3 and Q4 were little subdued. So I mean
Sunil Kapoor
Is. Will this be a trend going forward or. I mean was that a one off kind of a thing? Can you please. Yeah, something about that.
Dilip Modi
Yes. So basically our business, if you look at it, you know our main product is EPS and you know what we have seen in H1 compared to H2 last year is seasonality with respect to subsidy cycles. So what we saw is in H1 we actually got more subsidies coming in than we expected, state level subsidies and all of that. So effectively that seasonality which created the situation in H1 versus H2 now seasonality could be linked to elections, it could be linked to various schemes run by state governments.
And that is why directionally, if you see we are diversifying beyond AEPs cash withdrawal to other products so that we can show more sustainable quarter on quarter growth and not just rely on such cycles, you know, for our core income growth. But this year we’ve seen this impact because of, you know, H1 seeing more than H2. So
Sunil Kapoor
That’s right what Dilip has mentioned out but I want to just call out because in, in my presentation at that time I have pointed out that revenue growth is almost 12 13%. There is a, in the last two quarters, some classification in comparison to the first quarter, also the first two quarters. So from that perspective you are seeing that there is a degrowth in the, in the third and fourth quarter. But having said that, that’s not much whatever it is coming out here in the numbers just as a addition to what will say.
Dilip Modi
Okay, thank you sir. And one more question. UPI cashpoint, like we had mentioned in the last last quarter’s presentation about UPI Cash point, I think it has started to the optic has happened in last quarter of this financial year. So can you just explain how does it work
Sunil Kapoor
And what will be the opportunity size of this market and all? Yeah, this highlights.
Dilip Modi
Yeah. So the way UPI Cashpoint works. So today if you see when customers want to withdraw cash, what is happening is because of the ubiquitousness of UPI where now you see UPI QR at almost every merchant point and consumers with UPI apps paying using UPI qr. What we’ve also seen is that many times consumers also end up withdrawing cash which to formalize this, this point has come of UPI cash point. So now what is now available to merchants is to sign up as agents on platforms like ours and label their shop as a UTI Cash point.
So and put our, let’s say Spice Money QR. So what happens is while there are other QRs at the merchant point to accept payments, RQR can be used to give cash. So it effectively becomes like an ATM point. So in APS we still had this thing where people had to use their biometric authentication to withdraw cash. But with UPI all they have to do is use their UPI app to scan a qr. Now given that people across India have got so used to using UPI to scan and pay UPI cashpoint is an opportunity for them that when they need cash they can walk up to a merchant point which has been signed up as an agent on our platform labeled as a UPI cash point and they can scan the QR that you deploy at the agent point and get cash.
So we are, we believe that this is a much bigger market then Epsilon because by definition you have UPI spread much more than aps and the convenience of it is so simple. In three steps they can actually get the cash in their hand. And for the merchants today, it’s an opportunity for them to sign up as a DC agent and start earning money on providing the service. So we hope that this will help us grow the market in terms of number of agents functioning as ATM points across India, just in terms of numbers.
We started really this in March 26th. We were hoping to start earlier but we are waiting for all the players to go live because all the popular UPI apps need to work on this platform now most of them are on the platform barring one or maybe just one actually. So we’re just waiting for them to go live, otherwise everyone else is live and we are seeing our business grow month on month. So effectively just to give you a sense, this month as Asta said, we’re already tracking close to 100 crores of cash withdrawal, you know, which is like a kind of a 3x compared to last month.
So just the ubiquitousness and convenience of UTI we believe can drive more kind of UPI ATM points as we call them across India.
Sunil Kapoor
So I think this will strengthen our network also beyond the tier 3, tier 4 cities. We will be having more presence in the cities also due to this product and that will also have an effect on other products of credit. And so on second point I want to just add on this is that we envisage that this, this product will, with our presence will have a almost in next one to two years. There will be a 50% of what we are doing in AEPs.
Dilip Modi
Okay so thank you. Just one more question. I’m. I just wanted to understand the license side of it. Like do we require a separate license for UPI Cash point and
Sunil Kapoor
How,
Dilip Modi
I mean if a new player
Sunil Kapoor
Wants to get in, how much time do they take for acquiring the license and all? I mean just, just know the regulatory hurdles.
Dilip Modi
Yeah, yeah, yeah, yeah.
Sunil Kapoor
So,
Dilip Modi
So, so UPI cashpoint is meant for a BC network. So anyone who’s operating a business correspondent network of banking agents can offer the service. However, it does require you to tie up with a bank and build your product with the bank. So the real moat here is the agent network you have more than anything else. So in order to offer the service you have to build the network. And I think that is really the main moat in terms of do you know who has the network versus who has to build the network. So one is we have a network of 1.7 million agents which can double up as UPI cash points and we can grow this network further on the back of this.
So we have customers who are coming and withdrawing cash. Now they have the opportunity to come and withdraw using UPI and we have the platform and the partnerships in place to like Sunil said came up this agent base beyond. So it’s not a license from the regulator but it is a, it is a, it is a partnership with the bank under the business correspondent, you know, framework of the regulator. Right. So thank you so much and best of luck for the future. Thank you.
Operator
Thank you. Want to ask a question? Next question is from the line of Rahul Ahuja from Finwell. Please go ahead.
Unidentified Participant
Hello. Thank you for the opportunity. Just wanted to understand 2 responses here like first being what is the target for banking outlet expansion in the next financial year as while the company has already opened 200 plus outlets in FY26 the second follow up question would be what are the initiatives being taken to improve the customer activity levels.
Dilip Modi
Okay, thank you Rahul. So on banking outlet expansion you know we are waiting for these business correspondent banking outlet guidelines to be a little cleared. You know where both universal banks and payment banks as well as the other banks category are just waiting to see how these guidelines get cleared because on banking outlay they are still under the current guidelines which are under deliberation because it’s be to going through a consultation process to be finalized by the end of June. There are some conditions around distance from branch and a fixed cost for the outlet plus a connection to obligation to roll out certain unbanked rural outlets linked to the banking outlet.
So what is happening is that in the current set of guidelines that have come out, the BCBO or the business correspondent banking outlet has been made akin to a bank branch and this needs certain clarifications when it comes to payment banks because they don’t have branches by definition. So distance from branches and all of that needs to be solved for them at the same time for the universal banks this obligation of unbanked rural outlets has to be solved for them. So given this now we are just waiting for these guidelines to be cleared by the end of June which we think it will because ultimately to expand the reach of banking in rural and to the hinterlands.
The only model is the PC model and I think the regulator is very committed to taking banking to the masses. And we therefore believe that once these things are clarified, we can work not only with our current, but more partners to roll out more banking outlets. So we are working in a direction where all the adhikaris or our agents who are sticky on our platform and are working with us for a long period of time can graduate to becoming banking outlet. So like you saw that if we can give credit and they can perform well on the credit means that we know them well and they are performing well on our platform.
So a banking outlet is an opportunity for them to earn more income by distributing more products on behalf of the bank. So I think all the agents who are growing in terms of stickiness on our platform can graduate to becoming banking outlets. And that’s a very significant number. So if you look at the number of people who take subscription from us, it’s really close to 50,000 agents. So we have an opportunity to roll out a significant coverage once the guidelines are clear and once we are able to stitch the model together with our banking partners in terms of the initiatives around customer activities.
Yes, like I mentioned, we are in the process of launching our own customer app that is directly engaging with the customer, walking up to our agent outlet. But also within our agent app, we are creating a proper CRM program where we are able to help our agents engage with customers and work with their consent to be able to make them aware of more services that are coming on the platform and we help them to consume more services. So like we mentioned at the start of this call, while we scale up the agent platform, our next big focus is going to be to build and scale up the consumer platform because we have access to lots and lots of consumers who are today transacting at our agent points.
Unidentified Participant
Okay, fair enough. Just wanted to understand that what drove this, a sharp deterioration in the margins despite stable gtv. Is it like seasonal, like structural or just one time in nature?
Dilip Modi
Which, which number are you referring to when you say sharp deterioration in margins?
Unidentified Participant
I’m referring to EBITDA as well as the gross margins.
Dilip Modi
Okay, so just. You’re talking about
Sunil Kapoor
The quarter on quarter, right?
Unidentified Participant
Yes, yes. Quarter on quarter.
Sunil Kapoor
Yeah. So quarter four compared to quarter three. So quarter four, we have a gross margin of 48.6 crores, which is a 3 crores down from the previous quarter. That’s one point we have mentioned it out. That’s about the subsidy cycle on the quarter 3 versus quarter 4 because the revenue is also a little less on the quarter four side. And There are, there was a some one time adjustment in the previous quarters which is kind of reflecting over here. So and in the quarter four also. So it’s a one time period closer, some one time adjustments are there.
So that’s not the, I will say that’s not hindering any growth run rate standpoint of view. We are at whatever we have clocked for the full financial year, 201 crores. So you can take it as a 50, 52 crores is the run rate for every quarter as of now.
Unidentified Participant
Okay, great, great. Thank you so much. That’s it.
Operator
Thank you. A reminder to all the participants, you may press star in one to ask a question. As there are no further questions, I would now like to hand the conference over to Mr. Dilip Modi for closing comments.
Dilip Modi
I’d like to thank everyone who took the time out to join this call. I would request you all to please refer back to the presentation that we used in our call today. And you know, as a company we continue to focus on a significant part of Bharat that’s underserved when it comes to banking. And today having built one of the deepest human assisted ATM and collections network on the back of AEPs, now UPI as well as BBPS, we believe that we could play a significant role in not only providing access to banking but also being able to organize informal data of consumers living in underserved markets to be able to build formal credit, savings and insurance products for them.
So we believe that both our agent platform can scale and on the back of that we can build a consumer and credit business. So we are looking forward to a journey of taking banking to the masses using tech and really leveraging the digital public infrastructure that is available to all fintechs. And we are using that to be able to financially empower a significant part of underserved consumers living in Bharat. So thank you once again for this opportunity to present our thesis as well as give you an update on our numbers.
We look forward to your continued interest in what we are building and to your suggestions as we go forward in the year. Thank you so much.
Operator
Thank you very much. Thank you on behalf of DigiSpace Technologies Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.