Emerald Leasing Finance & Investment Company Ltd (BSE: 538882) Q1 2026 Earnings Call dated Jul. 15, 2025
Corporate Participants:
Unidentified Speaker
Sanjay Aggarwal — Managing Director, Member
Gurmeet Kaur — Chief Risk Officer
Talin Aggarwal — Head Of Business Development
Analysts:
Unidentified Participant
Chandni Chande — Analyst
Siddesh Chaudhari — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to The MRAL Finance Limited Q1 FY26 results Conference Call hosted by Kirin Advisors Private Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star10.0 on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Chandni Chande from Kirin Advisors Private Limited. Thank you. And over to you ma’. Am.
Chandni Chande — Analyst
Thank you. Pandavi. On behalf of Kirin Advisors, I welcome you all to the conference call of Indian Finance Limited. From management team we have Mr. Sanjay Agarwal, Managing Director, Ms. Gurneet Kaur, Chief Risk Officer and Mr. Tali N. Agarwal. Head of Business Development. Now I hand over the call to Mr. Sanjay Agarwal. Over to you sir. Hi.
Sanjay Aggarwal — Managing Director, Member
Good evening everyone. I would like to extend a warm welcome to all of you for joining us today for our company’s Q1 FY26 earnings conference call. Thank you for taking the time to join with us and for your continued trust in our journey. With me is Gurmeet Kaur, Chief Risk Advisor and Talon. Talon is joining from New York. You know he might be dropping off and on in between. Further, we look forward to discussing our Q1 FY26 results, key business progress during the quarter and our strategic focus for the upcoming times. We have started the financial year on a decent note marked by a decent growth in both our consolidated and standalone performance.
Our consolidated basis, our total income for Q1 stood at 6.74 crores which is a year on a year growth of 53.20 and the net profit increased by 86% to 3.19 cr on standalone basis. Our total income grew by 89.22% on year on year basis to a total of 4.74 crores. And our net profit grew by 138.39% to 2.63 crores. As far as the evapor product is concerned. We are now partnered with more than 90 corporates span India. Today only we signed with a fairly decent company Bix Technologies. Yesterday we signed with Supreme Enterprises Mumbai and now about a month on month this person has crossed 4cr.
Looking ahead we continue to focus on our increasing our early wage access platform by expanding our corporate partnerships. We have stand by a target of 250 corporates by the end of this year and a long term vision of thousand plus corporates. We are also we have also recently informed Power BI regarding the launching of the wap. We should be I think launching the in this quarter app also and that should give us better attraction and better disbursement dates. As far as the NPA is concerned they’re still under very much under control. We had just two very small in the business loan side and mil NTA in the EVA side.
In the business loan side the total amount of NT was less than 50,000. But we hope to recover death in this quarter but we are not written off those both this 50,000 NPA we are very much confident of recovering that money in this quarter. Before you know opening the house on your question and answer, I would like to request you one thing what we have realized, you know our existing investors are the best source of sourcing clients for eva. In fact six of the existing investors, three of them were chartered accountants. They are partnered with us for sourcing EVA clients.
I would like on a professional fee basis. I would, you know once the conference call ends I would request you to go to our partnership page on the Emerald Swin website or just drop a mail at Emerald Swin in case you are interested in joining with partnering with us for sourcing more corporates for eva then please let us know
now open the house for your question and answer please.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask question may press Star and one on their touchstone phone. If you wish to remove yourself from the question queue, you may press Star and two participants. Please note that this call is for one hour only. Request you to limit your questions to two per participants. Only 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 Rahul Singh from PIN Investors. Please go ahead.
Unidentified Participant
Good afternoon. Thank you for the beautiful presentation. First of all sir and congratulations for the numerous wonderful numbers. My question is what is the current. Yeah. My question is what is the current revenue for ewa? And like you mentioned in last call call. By financial year 2016, you will be unbounding 250 clients for EWA. But what we can see in terms of rent it it is not impossible. But very difficult to achieve. So what could be the absolute figure. Which we can 100% achieve this financial year?
Sanjay Aggarwal
See, we have already done 90 plus in the last till the 30th of June. And we have already signed up with three, four clients. Who are four clients. Two of them already strong. They respond exchange and two three are moving pipeline. I think we should be informing the exchange in this week only. And we are targeting about 40 to 45 clients in this quarter. And I think which end we should be able to, you know, do our, you know, reach our target of 250. Because our network is expanding now, you know, very rapidly.
Unidentified Participant
Thank you.
Sanjay Aggarwal
In fact, you know our existing clients have also also started sourcing cases for us. We have closed in the last quarter. We closed at least two cases who are referred by the existing clients only.
Unidentified Participant
So good news for us. Okay. Thank you sir.
Sanjay Aggarwal
Thank you.
operator
Thank you sir. The next question is from the line of Abhishek from AB Capital. Please go ahead. Yes sir. You’re audible.
Unidentified Participant
Yes. Just one get one clarity about the business model. Like our main business model is to get more customers from EWA and get the fees. Or our main target is to that act to act as a channel from which we get more customers whom we will cross sell other loans which is the main target
Sanjay Aggarwal
for us both is the target. In fact we are resourcing clients at a profitable basis. And you know, we cross sell also. I think if I’m not wrong, we have done 2 crore plus cross selling in the last quarter.
Unidentified Participant
Okay. Okay.
Sanjay Aggarwal
And I think last year in one of the con calls you had told that ews is around 4% of the total revenue. So how much is it right now in after this quarter?
Sanjay Aggarwal
I think four or five, something like that.
Unidentified Participant
And at the end of the by this year end, do you think it. Will go up or it will remain. At this level only?
Sanjay Aggarwal
No, I think it should. It should go up as the source and the more number of clients it should definitely go up. Started also pairing from that. I told you like we did 2 crore of cross selling in the last quarter only. And this cross selling volume should now slowly increase only.
Unidentified Participant
Okay. And you have told that in the PPT that you aim to onboard 250 clients for EWS by this year. So if you’re considering that we completely get 250 clients, how much. How much revenue do you think can come from this? Just from the CW
Sanjay Aggarwal
we are targeting what 15 crores a monthly disbursement. If we get 250 clients now we are fairly large size are coming this Ebix Technology we have a 12 strength up to 3005.
Unidentified Participant
3515 crores of monthly disbursement. But our fixed fees is there. Right. So how much will be the fees? You think can
Sanjay Aggarwal
see the total turn out to be disbursement of 100. 180 crore. If you do 15 crores per month. If you reach a target analyzed basis will come to 180 crores on an average. You can take it 1.5.
Unidentified Participant
Okay. Okay. The 180 crores will be the total disbursement for the full year. Then 1.5% of that might be our revenue.
Sanjay Aggarwal
Yeah. You know you have to look at the cross selling opportunity. See other corporates are NBFCs are sourcing clients at the loss. We here we are looking a client at a profit plus the huge cross selling opportunity which comes along with that.
Unidentified Participant
Okay. So beyond this 1.5 that is a percent of 180 crores that is coming as revenue which will be pure revenue. Beyond that we will get cross selling opportunities to these clients.
Sanjay Aggarwal
Correct. Correct. And if a book is performing very very well, you know in the last one and a half year we have zero delinquency.
Unidentified Participant
Okay. Okay. And what about the loans that we have given? What is the NPS status of the loans other than the EWA? EWA?
Sanjay Aggarwal
In the business loan we have two delinquent clients. One, the total delinquent amount is 3,500 and another delinquent client is 40,000. We have written off these in the June quarter. Not written off, sorry. We have booked as NPA and reported to civil. But we are very much sure of recovering in this next coming quarter. We have spoken to both our clients and they are promised to pay us in this quarter.
Unidentified Participant
Okay. Thank you. Thanks.
operator
Thank you. Sir, the next question is from the line of Priyam from Premium Asset managers. Please go ahead.
Unidentified Participant
Hi sir. Priyam, you’re from 3nature Asset Managers. Hi. So my question is that I want to granularly understand the spread that we make on an EWA loan. Because from my understanding you just answered in the last question that we will make 1.5% on the overall pie which I thought was a bit too low. So can you, can you. Can we deep dive into this in.
Sanjay Aggarwal
Terms of IR comes a little higher now you can Explain that In terms of IR is much higher now. Because normal you eat, get the average dispersal takes after only on the 15th of the month.
Unidentified Participant
Right.
Sanjay Aggarwal
On an average major check out dispersion happen after 15th only.
Unidentified Participant
Right. On. On a 15 crore monthly disposal. How much do we make on a monthly basis? Let’s see if we achieve that by. The end of the year.
Sanjay Aggarwal
In terms of real terms.
Unidentified Participant
Yeah, yeah.
Sanjay Aggarwal
You got 22.5 lakhs now. But in terms of IRA. In terms of IRA is quite high now.
Unidentified Participant
Right. Okay.
Sanjay Aggarwal
Because from large number of corporates we get Only on the 30th of the last day of the month itself. So money is logged only for 10, 15 days.
Unidentified Participant
Right. All right. Thank you.
operator
Thank you. Sir. The next question is from the line of Raj Shah from Flare Capital. Please go ahead.
Unidentified Participant
Yeah. Hi. Congratulations. The business is doing wonders. All the financials but one concern is regarding that large stakeholder is selling the stocks in open market. So is there any reason like they are selling it in open market?
Sanjay Aggarwal
1,1. They have purchased the share at 38 rupees. Investing Global. They have sold I think about 40% of their portfolio. 40% of the holding because they got there is a till about 100 odd rupees.
Unidentified Participant
Yes. Right. But the thing is like even preference and issue was done at 131. Right. And promoter was also part of it. So are you not arranging any buyer for block bill or are you not planning to buy it yourself instead?
Sanjay Aggarwal
I can’t see anything at this st. See in future I cannot say anything about that in at this current stage. But the FI I’m talking about they sold 40% of the stake because they bought it at 38 rupees and they made a handsome profit on that.
Unidentified Participant
Okay. And regarding this company sizes that we are onboarding. Right. So what’s the minimum size of employees? Like what’s the minimum number of employees the company have?
Sanjay Aggarwal
Normally we don’t onboard companies with less than under 100 employees.
Unidentified Participant
Okay. Okay. Thank you.
Sanjay Aggarwal
So now if you say the last ticket size companies are coming. I told you as I told you one company with 3,500. And we onboarded Master Choice, we had 900 plus employees. And we’re already working, working with ideas. We have 1500 employees. And check now IDS is going to give their subsidiary also which has 450 employees.
Unidentified Participant
Okay. So now whatever companies we are acquiring like the average we can expect like thousand to two thousand employees at first company.
Sanjay Aggarwal
Not really. Even if the company is good and number of prices we get will onboard. Them. Preference to, you know, a fairly decent sized company. You know, disbursement takes more in that particular case.
Unidentified Participant
Basically. Like what’s the average employee account per company that we have? So our average count currently sits at about 300. So what we realized in the market is essentially companies having 200 to 500 employees is where the sweet spotlight in terms of sales cycle, in terms of engagement, in terms of conversion. Okay. So actually 3,000 is very less. Right. But we are planning to move on to bigger sides, right?
Sanjay Aggarwal
Yeah, yeah, yeah.
Unidentified Participant
Okay. Okay. Thank you.
Sanjay Aggarwal
See the main thing is you know, kind of companies on board. Now we should be good corporate. We should not have delinquency on that particular corporate. They are very conservative on that side. And the quantum limits were sanctioning to corporates are quite conservative on that side.
Unidentified Participant
Yeah. And also about the limits. Right. We are only giving up to 40% of that employee salary as advance. Right. Can’t we increase that to 60% or what’s the rational behind this? 40%.
Sanjay Aggarwal
So, so we’re giving up to 50. Why we don’t go up is because there’s a law in the wages in the label of and payment of wages act which states that a corporate cannot deduct more than 50% of a gross salary of an employee for any deduction be it in advance statutory deductions. So it gave you a, let’s say hypothetically give 60% as advance. The corporate legally can deduct only 50%. The remaining 10% collection will come to us. So that’s the kind of risk we don’t want to bear.
Unidentified Participant
Okay.
operator
Thank you sir. Participants, please note that this call is for one hour. Request you to limit your questions to two per participants only. The next question is from the line of Chandan Mishra from Finn Westers. Please go ahead.
Unidentified Participant
Good evening sir. Thanks for the opportunity. Congratulations sir on posting great set of numbers. I have a few set of questions. First of all sir, earlier you have. Reported a 3.4 crore AVA disbursement rate per month. What is current disbursement rate?
Sanjay Aggarwal
See in the June must be cross 4cr4
Unidentified Participant
here. Okay. Second question is.
Sanjay Aggarwal
Something like that.
Unidentified Participant
Yes sir. Second question related to Eva only we have a bit approximate 100 companies. How many are active out of Dolce.
Sanjay Aggarwal
I think see kept stopped. Out of these hundred companies the payments were late to stop three companies. I think on an average 85% of them are active. Out of that
Unidentified Participant
85%.
Sanjay Aggarwal
In case there’s a payment delay in payment from the company side. Now we block that Company.
Unidentified Participant
Sir, next question is related to small ticket size loans. What is the current overdue on invoice discounting and small ticket size loan?
Sanjay Aggarwal
Small ticket sales. See we’re not doing too much of a small ticket size loans. We are doing digital business loans right now.
Unidentified Participant
Okay, we are not doing that segment right now.
Sanjay Aggarwal
So that. That is not much. They’re not doing much. How much you’re doing?
Talin Aggarwal
I think EVA is small ticket size loan. So EVA may be close to 4cr a month.
Sanjay Aggarwal
So we are doing some for some clients we’re doing for nine months also. No, if you’re talking about that
Talin Aggarwal
mainly. So I think. I think what he’s referring to is cross selling personal loans from Emil’s book. If I’m right.
Sanjay Aggarwal
Hello.
Unidentified Participant
Yes sir.
operator
Hello.
Unidentified Participant
Hello. Sir, earlier we have announced a segment for EVA customers as small tickle size loan. I want overview on that only.
Sanjay Aggarwal
Sir, we are doing that. We are already starting that. We are doing nine months loan for those people, EVA customers.
Unidentified Participant
Okay sir, my last question.
Sanjay Aggarwal
More than nine months. Currently we’re not doing more than nine months for them.
Unidentified Participant
Okay. Okay sir, answer my last question. Sir, what is the margin guidance? Sir.
Sanjay Aggarwal
See on and we charge on average I think 36%.
Unidentified Participant
Okay, thank you sir. I have no question. Now congratulation on again great set of number and for future endeavors.
Sanjay Aggarwal
Thank you.
operator
Thank you sir. The next question is from the line of Ankit from Fusion Capital. Please go ahead.
Unidentified Participant
Yeah, hello. Yeah, hi. Good evening and congrats on great set of numbers. So I have two questions. First is on our business loan segment, right? There are two NPAs. So and apart from this too like are we expecting Some further like 30 days or 60 days something and are we planning to make some provisions, cautious provisions there?
Sanjay Aggarwal
No, no. All other entire book is performing well. And these two we are hoping to recover, I think this quarter we should recover those amounts. The 3,500 I think is a very nominal account. I think it should come in the 710 next 710 days and the balance out of 40,000 what is spending? I think that should also get streamlined.
Unidentified Participant
So for this too is what was. It one EMI in it or like is it already 60 days or more?
Sanjay Aggarwal
It’s past 90 days 3 years list.
Unidentified Participant
Okay, okay. And secondly like I am following the company from the starting of FY25 and there we discussed about the 8-10x pad. So over FY25 it is actually 9 crores from the base of 4 crores. So like it is more than that. And we have solid start in Q1 and recently we have done this preferential, right. So now we have a total equity to be 86 crores if roughly.
Sanjay Aggarwal
75 crore plus.
Unidentified Participant
Okay. Okay. Yeah. So like are we like to reach. The FY27 like roughly 30, 35cr profits, are we planning any further equity dilution or till that we can expand by improving the ROE and the leverage ratio. And are we.
Sanjay Aggarwal
No, no, we don’t have any plans for further dilution as of now. But you know we made a reasonable review for 75 crore cr equity in the last year was to you know, get eligible for NSA listing. If you are, you know on three balance sheets you have to have 75 plus networks then you become eligible, automatically eligible for NSA listing. So now in April 27th will be automatically become eligible for MSC listing. You plan to get listed on national stocks in that FY27.
Unidentified Participant
So like are we still on track for that FY27 guidance?
Sanjay Aggarwal
Yeah, absolutely. Absolutely. You see quarter on quarter, you know there’s a growth coming and you know it’s not rocket science. Now once you have 250 corporates and you can see a thousand corporates over a long term or growth will automatically come. And more than the growth it’s you know more important is you know get delinquencies under control. That is very critical in today’s scenario.
Unidentified Participant
And you don’t expect any equity dilution till FY27. Right. If I’m not wrong,
Sanjay Aggarwal
see as of now we don’t have any plans, you know, going further. We’ll see what has to be done. As of now we don’t have any plans.
Unidentified Participant
Okay. Okay. Yeah. Thanks a lot.
Sanjay Aggarwal
Thank you.
operator
Thank you sir. The next question is from the line of Akash Ja from AG Wealth. Please go ahead.
Unidentified Participant
Hi, am I audible again? So one question from my side is since we are targeting 250 corporates by the end of FY26. So I mean what details the confidence you feel at such a rapid pace? I think currently we have around 80 or 90 corporates. So it’s almost more than doubling. We are targeting,
Sanjay Aggarwal
see we have 90. Plus corporate as of now. So we are targeting about 40, 45 corporates in this quarter. We are going quarter by quarter wise. Last quarter we raised about 25 corporate. We are targeting 40 plus. I think we should be able to achieve that. You know we are looking at a growth on a quarter on quarter basis. If we you know, meet the quarter on quarter target we should be able to reach 250 plus. You know, a network of agents and Sub agents and you know, our own. Now we already deployed two people in Bombay on our own role. They have sourced to their source to clients in Bombay.
Unidentified Participant
Okay.
Sanjay Aggarwal
You know, a lot of seniors also. Now as I told you, six of our investors are only joined partnership, partnered with us for sourcing. Three of them are chartered accountants and they have huge database with them.
Unidentified Participant
And second sir, on this invoice discounting like I mean last quarter you mentioned. About launching this product. So I mean any feedback from our. Clients so far on this one?
Sanjay Aggarwal
See they’re going very slowly on that. You know, it’s a little risky market. What we have, you know, understood. It’s a little risky market. Don’t want to take undue risk. So we are doing very uh, you know, put it in a very cautious manner. So you. We don’t want to take any undue. See build discounting is one of the many products what we’re doing and we want to approach it on a, you know, very cautious manner only.
Unidentified Participant
Okay. And just last question on Roe. Sir. So our Roe, I mean currently it is around 10, 11. So what is our target for Roe?
Sanjay Aggarwal
I need to. I think that should improve our Roe.
Unidentified Participant
Okay. Any number that you want to write?
Sanjay Aggarwal
No, I cannot put numbers at this stage right now.
Unidentified Participant
But. But, but it will improve, right?
Sanjay Aggarwal
Yeah, definitely improve.
Unidentified Participant
Okay. Okay sir. Thanks.
operator
Thank you sir. The next question is from the line of Rahul Singh from Finvestors. Please go ahead. Mr. Rahul, your line is unmute. As there is no response, we will go ahead. The next question is from the line of Priyam from Trinetra Asset managers. Please go ahead.
Unidentified Participant
So I just wanted to ask that for the current run rate, we have projected run rate of EWA for the end of the year. Are we planning to raise more equity?
Sanjay Aggarwal
No, no, not as of now. We plan to use that only right now. Because see we raised last year equity because we wanted to cross the 75 mark. 75 crore mark. Excuse me? You know, to become eligible for NFC listing. So now we are eligible for NFC listing in 27. FY27 immediately. We have no plans to raise equity.
Unidentified Participant
Right. And so what is the current cost. Of funds and do you see that going down?
Sanjay Aggarwal
See it’s a major chunk of funding is right from SBI that is around 10.95.
Unidentified Participant
Right.
Sanjay Aggarwal
So I think as the RBA is decreasing, I think that should go down only.
Unidentified Participant
Okay. All right.
Sanjay Aggarwal
From equity and you know some nominal part from sbi.
Unidentified Participant
Yeah, sure sir. Thank you.
Sanjay Aggarwal
Right.
operator
Thank you sir. The next question is from the line of Darshan Javarin, please go ahead.
Unidentified Participant
Hello. Good evening sir. Thank you so much for taking my question. Hopefully I’m audible.
Sanjay Aggarwal
Yeah, yeah, yeah,
Unidentified Participant
yeah, yeah. Hi. So firstly congratulations on a you know, great set of results sir. So I just wanted to know like. We’Ve given the previously, you know we want to do 8 to 10x up profit. So I think that’s the guidance for FY27. But in the current year what kind of, you know, profit are we, you know, expecting? Like, like a Q100 is also been. Such a great growth. So how do we, you know, wish to take it forward?
Sanjay Aggarwal
Sir, stand by the guidance. You know I think numbers should not be a problem. Once you keep on voting more and more corporates, I think that should automatically come.
Unidentified Participant
Okay, okay.
Sanjay Aggarwal
So that increment we’re already seeing, you know, in temple disbursements, Ramblo conservative. Okay. Main thing is keep your bottom, bottom line intact. We don’t want to take any, you know, undue risk on that site.
Unidentified Participant
Correct, Correct. Correct sir. So for like FY26, what kind of profit would you you know, aim for? Sir.
Sanjay Aggarwal
By the guidance, you know I cannot put numbers onto like that.
Unidentified Participant
Okay, okay, that’s, that’s fair sir. And yes, I just wanted to know. Up now business loan, what’s our AUM currently? Sir,
Sanjay Aggarwal
I think around 90.
Unidentified Participant
Okay, okay, okay, okay. Fair, fair enough sir.
Sanjay Aggarwal
Yeah, that’s it from my side.
Unidentified Participant
Thank you so much.
operator
Thank you sir. The next question is from the line of Ankit from Fusion Capital. Please go ahead.
Unidentified Participant
Yeah hi, I just had a follow up on our business loans. So like any other Apart from these two, would you like to highlight whether there is a 30 days or 60 days miss. Would you like to take that? So in our business loan segment like Apart from these two NBAs, are there any other loans that you would like to highlight where we have.
Sanjay Aggarwal
Only these two are NPAs and I think we should recover them. I’m critical recovering both these loans I think around 3,500 and the other offsetting is less than I think for around 40,000. I think we should.
Gurmeet Kaur
And on our regular portfolio we are able to get our maximum collections between BPD5 till BPD5. So we do not have a portfolio which is in bucket 1, 2 or. 3 which means 30 bpd, 60 bpd. Or 90 bpd entire portfolio is current and only there are two accounts which are NPA.
Sanjay Aggarwal
I think.
Gurmeet Kaur
Yeah, yeah that is, that is update. Like we have been already saying that these are not, they are not intent issue people. They are Ability issue people and they are completely contactable and the follow up. The regular follow up is going on with them. Yeah.
Unidentified Participant
Okay. Okay, thank you.
operator
Thank you. Sir. The next question is from the line of Akash Chaudhary an individual investor. Please go ahead.
Unidentified Participant
Hello sir. Congratulations on good set of members. Yeah, so I think from last 45 quarters we were showing around year on year growth of 50% and almost equal to 12% quarter on quarter growth. But this quarter I think we are. Seeing only 4% growth. So is there any seasonality or like what it could be because.
Sanjay Aggarwal
4% in terms of top line. Bottom line.
Unidentified Participant
Yeah, top line was only 4%. Yeah. Correct, correct, correct.
Sanjay Aggarwal
See you know our interest rate, infrastructure and other expenditure has gone down dramatically in this quarter. So that is why we had a great bottom line growth.
Unidentified Participant
Okay. So yeah, bottom line.
Sanjay Aggarwal
I told you now we are not too much focused on the top line. You know, top line. We don’t want to take unnecessary tourism in today’s current market scenario. So we need extra, you know, extra careful and cautious for us. Our role model is HDFC bank and Kotak Mahindra Bank. That is our, you know, scenario. Over a period of time it becomes a huge giant. The only thing is you know get you know, get not to get emotional and you know get carried away in this kind of particular market. Now they are both number one and number two in the market and they have done, you know, they are our role models.
Unidentified Participant
Got it, got it. Second question. So 8 to 10 growth last year. [Foreign Speech] Pebira 4 of the so growth generally where it will come from.
Sanjay Aggarwal
[Foreign Speech] Now it’s 96 crores on this, this June quarter. We have recently tied up with recently tied up with RBL bank for sourcing gold loans.
Gurmeet Kaur
Can I add something here?
Sanjay Aggarwal
Yeah, sure. Please.
Gurmeet Kaur
Yeah. So just to give you an update, our portfolio is diversified and the whole idea is that our risk gets managed very appropriately. So there’s a distribution business, there’s a business loan and a personal loan business. And then there is an EVA product. All three of them will contribute to. The growth in revenue and the profitability. You know in the proportion that has already been shared that we’re looking at a 15 crore reserve month on month by the end of this financial year. On EVA product and other products also will go proportionately.
Unidentified Participant
Got it. Thanks. We were talking about some app. So how will this app be used? It would be used by the end employees to get the loan amount from Ewa or what.
Sanjay Aggarwal
Can you take that?
Talin Aggarwal
Hi. So the app is essentially increase our engagement in Withdrawals. So it’s a mobile app we’ll be launching. So the idea is to you know engage the employees more and subsequent dispersant. It has to be completely seamless.
Sanjay Aggarwal
We recently showed it to one very senior banker in Bombay. Our app, you know she was shocked to see the you know quality and you know simplicity or app. She, she said we applied engineers to Amazon and you know all these big tech companies and you know our own bank app is so complicated and yours is so seamless, so easy to get flies.
Unidentified Participant
So actually I am also working somewhere so I have used this product so I was using some other your competitor style. So I will click in there and I used to get the money instantly. Into my bank account. So that’s. How will it be similar to that. I’ll just put in the amount and click and it will just come into my bank account.
Sanjay Aggarwal
Absolutely. Even today what we’re doing it’s exactly the same. We’re just putting on a. Putting it on a mobile app now.
operator
Thank you sir. The next question is from the line of Raj Shah from Flare Capital. Please go ahead.
Unidentified Participant
So we are planning to raise more capital via debt, right? So like how much limit is approved, how much is the unused fund and how much the maximum limit we can get approved.
Sanjay Aggarwal
See we applying to state bank for further investments and we are raising from other multiple sources also. I cannot explain right now but statement we are sending an application for enhancement.
Unidentified Participant
Okay. So currently like are we utilizing all the fund that we have raised or.
Sanjay Aggarwal
There are somebody unutilized limits lying with us in case of emergency we can draw down from there.
Unidentified Participant
Okay. And any number on how much more fund like we can raise based on our balance sheet.
Sanjay Aggarwal
Ratio is very very comfortable. As on March 31st network of 75 crore we had a debt of just 14 cross. So debt to equity ratio is very very comfortable. We can use my huge amount of debt on. On this one numbers and we have excellent checkout with all the lenders. You know we have a zero check bouncing record since we got the NBFC license with all the lenders and 31 during COVID time we do not take any moratorium from any of our planters.
Unidentified Participant
Okay. Thank you.
operator
Thank you sir. The next question is from the line of Abhishek from AB Capital. Please go ahead.
Unidentified Participant
Yeah, hello. Yeah I just wanted to ask how big is our collection team and what steps do we take if any customer refuses to pay. See a collection team right now is only two people. [Foreign Speech] So we don’t. There is no need to increase the Collection as of now.
Gurmeet Kaur
Can I add here?
Sanjay Aggarwal
Yeah, sure. Sure.
Gurmeet Kaur
Yeah. So we are well prepared. We have got our in house collection team which is two team members. Apart from that we have tied up with a collection agency which has got Pan India. Pan India presence in an. Even if the delinquencies go up then we are well equipped to kind of address it in a very early stage. Because our relationship already is there.
Unidentified Participant
Okay, thanks.
Sanjay Aggarwal
But we don’t utilize the service as of now. There’s no need for us to utilize their services as of now.
Unidentified Participant
Okay. Okay. Thank you.
operator
Thank you. Sir, the next question is from the line of Ankit from Fusion Capital. Please go ahead.
Unidentified Participant
Sir, my question was on this debt to equity. So like with what? Like debt to equity ratio we are comfortable with like any number we have in mind.
Sanjay Aggarwal
See one is to 0.5 I think will be very very comfortable. Or one is to one also will be very comfortable. So as of now debt to equity ratio is very low. But we are increasing to planning to increase the debt. I think point one one, 2.0.5 or one is to one you should be very comfortable.
Unidentified Participant
Like in FY26, FY27 we will reach I think more than 2.2.5. Right. If we raise the fund only through.
Sanjay Aggarwal
That then come again. Come again.
Unidentified Participant
Like if we raise the funds only to debt then in FY26 and or FY27 starting we will reach more than 2 times debt to equity with our current growth rate. Right. If I am not wrong.
Sanjay Aggarwal
Because you know we get the money by the month end only. See most of them, a lot of companies pay by the 30th itself. Like the disbursement takes place of 15 to 20 years. Between 30th they pay on 33 first they repay the money.
Unidentified Participant
Okay.
Sanjay Aggarwal
That fund itself we deploy a clean on first.
Unidentified Participant
So we are good with even two times. Right?
Sanjay Aggarwal
Then 75 crore debt and 75 we should put enough.
Unidentified Participant
Okay. Okay. Thank you.
Sanjay Aggarwal
Thank you.
operator
Thank you. Sir, the next question is from the line of Lalit Kumar, an individual investor. Please go ahead.
Unidentified Participant
Hello sir. Good evening. Am I audible? My one question is on your collaboration side you’re a 14 lender and NBC. How you manage money to disburse.
Sanjay Aggarwal
I could understand please.
Unidentified Participant
Sir, your collaboration side 14 lender and and NBFC. You are collaborate with money. So I understand our money flow. I. I want to understand.
Sanjay Aggarwal
Distribution. We don’t use our own money over there. We just accept distribution agents for them. Like for. Like for HFC bank we are the third largest Sourcing agent for gold loans. But money, all the money is deployed by HDFC bank not by us. We just get the source and fees.
Unidentified Participant
Okay, okay, okay. And sir your further brother same like passive or improvement your future growth right in in line with the last year or. Or improvement or in. In financial.
Sanjay Aggarwal
Yeah we are given you know from the last last year we’re given 8 to 10x growth target. We should stand by that. I think we should able to achieve that.
Unidentified Participant
Okay, thank you sir.
Sanjay Aggarwal
[Foreign Speech] Become a huge giant control and you know step by step. [Foreign Speech]
Unidentified Participant
Okay, thank you. Yeah, yeah.
Sanjay Aggarwal
[Foreign Speech]
Unidentified Participant
Okay sir. Thank you sir.
operator
Thank you. The next question is from the line of Vishal Singh, an individual investor. Please go ahead.
Unidentified Participant
Am I audible sir?
Sanjay Aggarwal
Yeah, yeah, yeah.
Unidentified Participant
Hello.
Sanjay Aggarwal
Yeah.
Unidentified Participant
Am audible. Thank you for the opportunity sir and congratulations on the good set of numbers. One question sir. Well all questions are answered though we talked about the business loan in this con call. What is the current portfolio of this business loan and what is the current yielding?
Sanjay Aggarwal
Sir see it’s about 990 crores and the country is about 18%.
Unidentified Participant
18% is the.
Sanjay Aggarwal
Interest rate is about 18 and 1 1/2% is the process.
Unidentified Participant
And what I heard, I just want to confirm. I heard it. 1.5% in EVA that comes to. For this 15 crore. That comes to 2.25 odd girls. Is that right?
Sanjay Aggarwal
Yeah. About 22.5 lakhs per month.
Unidentified Participant
No, I. I directly said it’s 415 crores. That your target is 2.25. No, 22.5 lakh. Yeah, 22.5. Okay. 32.5 lakh. Okay. There was a disturbance that time. Thank you very much sir. And for the future.
Sanjay Aggarwal
Thank you.
operator
Thank you sir. The next question is from the line of Siddish Chaudhary from Maximal Capital. Please go ahead.
Siddesh Chaudhari
Hello. Yeah, thank you for this opportunity. I was having just one question. So in this leverage access product so there are a very new web startup. So how do we see this?
Sanjay Aggarwal
I can’t hear you. Can you speak a little loudly please?
Siddesh Chaudhari
Hello.
Sanjay Aggarwal
Yeah, yeah. Can you repeat the question please?
Siddesh Chaudhari
Yeah sir I was having the question regarding this.
operator
Mr. Siddish, please use your handset.
Siddesh Chaudhari
Hello.
operator
Yes sir, you’re audible now.
Siddesh Chaudhari
Hello. Yeah, yeah hello. How do we see as a complete edge of the field of their product like there are many new startups which are coming to this segment.
Sanjay Aggarwal
Would you like to take it up.
Siddesh Chaudhari
Our AWA product?
Talin Aggarwal
So let me touch upon two things here. So I think one is the expansion of market. You know with these startups coming in it expands the entire pie for everyone. Because I think concept is a very niche concept in India. You know, as more and more competitors come in, the market awareness spreads, the market becomes more aware and thereby the entire market, you know, increases. For us to take second coming to the competitive edge. Where our competitive edge lies is the entire vertical supply chain integration we’ve done. So I think there’s only one company in the market which essentially owns the entire supply chain.
That is from distribution to technology to funding. Now given how highly regulated the funding the MVP sector is, it is a great advantage to essentially own the entire supply chain wherein you are the one who’s funding the client, you are the one who’s bringing the client and you are the one who owns the entire technology stack. Secondly, what we had with us is almost a 30 year track record through our subsidiaries, our Shrug Bank Acclaim. They’ve been working with all your banks and BSE for the last almost 30, 35 years now. So what that makes us is a one stop solution for all financial needs of a corporate and their employees.
If the corporate doesn’t want early wage access, they can take a business loan. Employee doesn’t want an advance, they can take a home loan, they can take a personal loan. We become the one stop solution for them. And since all of it is taken care through our technology stack, it becomes very seamless for the customer as well. And we make money on it.
Sanjay Aggarwal
You know, look at the companies in Indonesia and Philippines. Even EVA companies over there have grown so big, it’s just a matter of time. You know, Indian companies grow that big. It’s surprising. You know, before coming. Hello.
Siddesh Chaudhari
Yeah. Yeah.
Sanjay Aggarwal
Hello.
Talin Aggarwal
Hello.
Sanjay Aggarwal
Yeah, it’s very surprising. You know, from yeah, Europe normally products come to India. This EVA product has gone earlier than coming to India, Indonesia and Philippines. If you look at those companies in this side of the Asia, they’re grown really big over there. It’s just a matter of time. You know. EVA company in India grow big.
Siddesh Chaudhari
Okay. Yeah, very much. That was all for.
operator
Thank you, sir. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in conference, please limit your question to one per participant. The next question is from the line of Gaurav Mishra, an individual investor. Please go ahead.
Unidentified Participant
Good evening. First of all, congratulations on a nice set of numbers. Sir, I want to ask about the cash flow from operations figure that I am seeing from financial 25 and from 2024 and 25 both they have been reported negative. Can you throw some light on this?
Talin Aggarwal
Let me take that one, please. So for us, having a negative cash flow is actually good. It means you’re disbursing more money for us. Operating cash flow means how much are we dispersing. So a negative cash flow for us means that we’re disposing more money into the market.
Unidentified Participant
Okay, sir. And my next concern is your preferential allotment at the rate of 131 7.6 lakhs of equity shares. [Foreign Speech]
Talin Aggarwal
Yeah. That is still outstanding.
Sanjay Aggarwal
[Foreign Speech]
Unidentified Participant
Yes, sir.
Sanjay Aggarwal
We wanted to reach the 75 crore mark. The 75 quote mark. And in FY27 we should be eligible for listing on MSC.
Unidentified Participant
Yes.
Sanjay Aggarwal
And hopefully, you know, we should have thousand corporates by that time then go to msc. It’s a huge company to go toward the earth.
Unidentified Participant
Yes, sir. And the next question about the invoice discounting. Is there any plans for onboarding? Any large anchor for bill discounting? And what is the current state? It is Underwood.
Sanjay Aggarwal
So delinquency levels are both high. We want to be very careful on that part of the thing. You know, here the money deployed will be ours. So we want to be very prudent on that part of the part of that thing.
Unidentified Participant
Right, sir. Right. Sir, one last question about the personal loan you have mentioned in your current ppt. That upstart. So about that unsecured. I’m talking about the unsecured personal loan. So is there any backup plan for in case some loan goes default?
Talin Aggarwal
Also as I mentioned that we already have a recovery team as well. And we have outsourced an agency as well. So. Okay. Also we’re not utilizing the services but they’ve been put in place the finally continue the purposes. The book has been growing at a rapid pace. We don’t want to, you know, not have these contingencies or redundancies in place.
Sanjay Aggarwal
[Foreign Speech] Only a personal. Not only with the company with whom the EVA partnership.
Unidentified Participant
Right, sir. Thank you, sir.
Sanjay Aggarwal
Thank you.
operator
Thank you, sir. The next question is from the line of Gaurav Shukla, an individual investor. Please go ahead.
Unidentified Participant
Thank you for giving me opportunity. Am I audible, sir?
Sanjay Aggarwal
Yeah, yeah, yeah.
Unidentified Participant
Sorry. In last participants you. You have said that margin guidance is 36%. This is bad margin or EBITDA margin? One participant has asked about margin guidance. Sir, you have answered 36%
Sanjay Aggarwal
that the. Normal interest rate what you’re charging.
Unidentified Participant
Okay, sir, answer. In this quarter it. You have disbanded loan at as you. Said that 96 crore. From 80 to 96 crore.
Sanjay Aggarwal
Yeah.
Unidentified Participant
So in. In this quarter you have. This was 15 crore. And you have already said that. 180 crore by year end.
Sanjay Aggarwal
So into 12 it comes to 180 cr.
Sanjay Aggarwal
Okay. Okay. And most of questions are
Sanjay Aggarwal
targeting 54 monthly run rate by year end.
Unidentified Participant
Okay, thank you sir. On great set of numbers. Thank you. Thank you.
operator
Thank you sir. The next question is from the line of Ravi Patel, an individual investor. Please go ahead.
Unidentified Participant
Hello sir. Good evening. Sir, just wanted to ask one thing regarding personal loan that I have read in your investor presentation that considering the delinquency rate and the NPS related to personal loan, why we are venturing into personal loan for the partners and how we are planning to mitigate the risk associated with the loan.
Sanjay Aggarwal
See, it is part consecrated by the employer. Now we are not going to be giving an open market.
Unidentified Participant
No sir, I am talking about unsecured personal loan.
Sanjay Aggarwal
Yeah, yeah.
Gurmeet Kaur
Can I, can I just add here. Yeah. So you know for unsecured personal loan is given to the employee of the corporate with whom we have a tie up. And the installment also comes to us through the deduction flow by the employer. So the same methodology of repayment which. Is used for ebar is used for. The personal loan product.
Unidentified Participant
Okay, so you mean to say that the installment for the personal loan will also get deducted along with the salary like it is getting, but the period of personal will be higher as compared to EVA loan.
Gurmeet Kaur
So there are certain conditions which govern a personal loan to an EVA customer in order to make sure that the debt burden of that customer is not exceeded beyond the policy guidelines. So once this particular guy takes the personal loan then he cannot do a normal er withdrawal. He is going to be repaying us the borrowed money over the period of six months, three months to nine months for which this particular personal loan has. Been given to him.
Unidentified Participant
Okay. Okay, thank you.
operator
Thank you, sir. The next question is from the line of Jigar Shah, an individual investor. Please go ahead.
Unidentified Participant
Yeah, congratulations on good set of numbers. Am I audible?
Sanjay Aggarwal
Yeah, yeah.
Unidentified Participant
Okay.
Sanjay Aggarwal
Yeah, yeah.
Unidentified Participant
So this two discord, you know which you talk about both on the EVA. Side or on, on some other loan segment side.
Sanjay Aggarwal
Hello.
Unidentified Participant
Yeah, yeah, yeah, yeah. Am I audible?
Sanjay Aggarwal
Yeah, yeah,
Unidentified Participant
yeah. What I’m asking is the 2 Loan. Before Payment Regiment records which you talked. About was on the EVA side or some other business segment side. Can you hear that clearly?
Gurmeet Kaur
Yes, yes I can. These were on the personal loan. We were on the personal loan.
Unidentified Participant
Okay, okay. Not on the side, right?
Gurmeet Kaur
Yes,
Unidentified Participant
I also, yeah, I also heard. About, you know at the beginning Mr. Sanjay told something about like, you know, contributing to bringing in new clients for eva. So can you just tell me briefly. Like what, what this collaboration is all about and how, how we can contribute basically. So if you can just give us overview,
Sanjay Aggarwal
send us a mail or you can@infoemrand.com somebody from the office will get in touch with you or you can go to our website at partners page. You can just apply what is. Somebody from the office will get an immediate touch with you.
Unidentified Participant
Oh, okay. What was the email id you talk info@
Sanjay Aggarwal
emeraldson.com.
Unidentified Participant
Info okay. Also
Sanjay Aggarwal
yeah, you can go to the website at the partners page. You can apply over there.
Unidentified Participant
Okay. Okay, fine. So it’s basically a systematic program like. Where you will sort of, you know, provide all the details and like how we work in a collaborative way.
Sanjay Aggarwal
Correct, correct, correct, correct.
Unidentified Participant
And yeah, another question is like, you know, AI is becoming. Artificial intelligence is becoming very prominent now nowadays. Like we, every company wants to sort of start or at least factor in AI into their operations. Just wanted to understand from your planning and strategy side, like, you know, are. We doing anything in this direction? Do we have any type of AI roadmap in the coming quarters or months, some planning or strategy in this direction?
Gurmeet Kaur
Can I answer that, Sanjay?
Sanjay Aggarwal
Yeah, we have to take that technology part. You can take. Hello?
Talin Aggarwal
Yes, yes, in terms of AI, we’re actually planning to deploy AI for customer service in the next financial year perhaps. You know, we’ve seen AI agents coming up and about. So once they’re at a fairly mature stage, we’re looking to integrate a few of them into our systems as well.
Unidentified Participant
Okay, yeah, yeah, but what about the sales and marketing and you know, other areas also? You know, there’s a huge scope and there is a lot of improvement areas, you know, which, because it’s the manual things which we do. So anything in that direction, you know. Apart from your technology sake, I’m asking from the planning and strategizing perspective for your operating model. Yeah,
Gurmeet Kaur
can I answer this?
Unidentified Participant
Sure, ma’. Am.
Gurmeet Kaur
Just one sentence. So there are two aspects to the lending processes. There is something that we call automation. To improve the operational efficiency. So these are, there are fairly dynamic, you know, processes and APIs that are available with. Helps us kind of automate the processes. So typically the loan origination process, the management process, the EMAC processes, the kyc. You know, verification processes, all of these are kind of automated, including disbursals through the API. So that is one aspect which is what is extremely critical for, you know, for the, for acquisition and loan management.
The second part is going to be where the AI is going to play a role as Salim said, in the next year would come into play when the portfolio size is huge and then you would like to look at specific marketing actions or collection actions depending upon different variables, which has high impact. So typically in a financial services, that is how we deal with it. So we are currently in the build up phase and once you acquire a certain set of certain number of customers on board and your book size comes to a certain level where a lot of slicing, dicing is required, that’s where we would use tools which takes the board of AI.
Unidentified Participant
Got it. So thank you very much. But you can also use this for your sales and marketing. You know, in acquiring new customers and all with agents it has become like comparatively easy, you know, rather than going for a manual effort.
Gurmeet Kaur
So just a suggestion, it again depends. I think when you talk about LEVA customers, most of these relationships are with the corporate. So yes, the technology team would have used tools to kind of follow the right list of portraits meeting our minimum eligibility criteria. However, the approach to reach and create a collaborative relationship still can’t be replaced by a machine. It is a very, very personal interaction. It is a trust building activity. It is an evaluation of relationship at both the sides. So you know, you know, tying up with the corporate with 5,000 employees is less machine and more relationship.
Unidentified Participant
Got it, Got it. Yeah, I totally agree. There are certain areas which are sort. Of, you know, which will require human look definitely. But some repetitive tasks and all definitely use. So thank you. Thank you very much and all the best.
Sanjay Aggarwal
Thank you.
operator
Thank you, sir. Ladies and gentlemen, due to time constraint, that was the last question. I now hand the conference over to Ms. Chandni Chande for closing comments. Thank you. And over to you ma’. Am.
Chandni Chande
Thank you everyone for joining the conference call of Finance Limited. If you have any queries, you can write to us@kresearch.com Once again, thank you for joining the conference call. Thank you, San. Thank you, darling. Sir. Thank you. Good night, ma’. Am.
Gurmeet Kaur
Thank you. Have a good evening. Thank you. Bye.
operator
On behalf of Kirin Advisors Private Limited, that concludes this conference. Thank you for joining us. And. And you may now disconnect your lines.