Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Latent View Analytics Ltd (NSE: LATENTVIEW) Q4 2026 Earnings Call dated May. 18, 2026
Corporate Participants:
Asha Gupta — EY Investor Relations
Rajan Sethuraman — Chief Executive Officer
Rajan Venkatesan — Chief Finiancial Officer
Analysts:
Vimal Jamnadas Gohil — Analyst
Srinath V — Analyst
Unidentified Participant
Rohan Nagpal — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the latent View Analytics 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 and then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Ms.
Asha Gupta from Eny LLP Investor Relations team. Thank you and over to you Ma’. Am.
Asha Gupta — EY Investor Relations
Good evening to everyone and welcome to Q4FY26 earnings call of Latent View Analytics Ltd. The results and presentation have already been mailed to you and you can view them on the website www.latentview.com. In case anyone does not have the copy of press release and presentation or you are not marked in the mail, please do write to us and we will be happy to send you the same. To take us through the results today and to answer your questions, we have the CEO of the company Rajan Sethuroman, to whom we will be referring as Rajan and we have the CFO of the company Rajan Venkateshan, to whom we will be referring as Raj.
This is just to avoid confusion while doing the transcript. We will start the call with a brief update on the business and financials which will be then followed by the Q and A session as usual. I would like to remind you that anything that is mentioned on the call that reflects any outlook for the future or which can be construed as forward looking statements must be viewed in conjunction with the risk and uncertainties that we face. This risk and uncertainties are included but not limited to what we have mentioned in the prospectus file with the SEBI and subsequent annual report that you can find on our website.
Having said that, I will now hand over the floor to management. Over to you Sir.
Rajan Sethuraman — Chief Executive Officer
Thanks Sasha and thank you all for joining the call. Take some time to cover four topics on which I thought I’ll provide some additional color in addition to the information that’s been already made available to you as part of the press release and the investor presentation and then I will hand it over to Raj for further commentary on the financials. The first topic I want to talk about is the whole AI thrust for the organization as well as what you all have probably been hearing about in the external media and within the IT services world.
We are seeing fairly strong traction for all the AI work that we have been doing internally, we have been looking at AI work as work that we do using traditional AI generative as well as the new agentic solutions that are being implemented. And we did an internal check on the work that’s been done last year in relation to all these three, traditional generative and agenting. And we are happy to share that about 28% of our revenues for last year involves one of these three where the AI aspect is clear and visible to the client, which means that they can experience the generative AI interactions or the agent solutions directly in the implementation that we have done for them, which we feel is a fairly strong traction for the work that we’ve been able to do on that front.
So we call this primary AI, where the AI solution is directly visible in the hands of the end customers that we are working with. In addition to that, there is a fairly good chunk of work where the AI is kind of under the hoops, but it is still powering either the decision making or the modeling or the workflow or the process, as the case might be. And that is to the tune of another 21% in the work that we did last year. So overall, almost half the work that we have been doing has involved AI in some shape and form, a good chunk of it being directly visible right in the hands of the end customers.
There is a fairly broad spectrum of work which we are doing within the Agentix space itself, and I’ll touch upon that in a few minutes. But in terms of the tooling and the technology that’s used, it’s covering all the major names that you’re familiar with, whether It’s Codex from OpenAI or clot code and Clot, Cowork from Anthropic, Gemini, Gemini, Anti Gravity, all of these are being put to good use in the work that we are doing. We are also doubling down significantly on the AI partnerships and the work that we are doing.
And I will come back to that in a minute. But before that, just giving a bit more color on the nature of the work that is being done using generative and agentic. In particular, this work that we are seeing, the payments invoice reconciliation space where agentic flows are being implemented. There is quite a bit of work that we are doing on market intelligence gathering and orchestration and making it available in the hands of decision makers, running campaigns in an automated fashion using agentic frameworks that have been implemented.
Significant amount of work being done for marketplaces and platforms around fraud analysis, counterfeit detection, and quite a bit of work also, again in the manufacturing Space in relation to warranty claims handling. So these are some examples where full agentic workflows and orchestration have been implemented and that is actually starting to yield business impact that is directly visible to the client. From our perspective, we are really doubling down on further strengthening our AI capabilities both on the GTM front, go to market front as well as on the internal capability building.
So there is a cloud certification program that’s currently underway where over 200 people have signed up and almost 40 people are thinking of launching. So there’s a great deal of enthusiasm for all actions related to that. I was in the US the last three weeks and I had the opportunity to meet a lot of clients and also our partners and one of them that we are starting to work with is Anthropic and leads the anthropic partnership and there is a good amount of traction on that conversation as well.
From a capability standpoint, we are going to be building further strength in terms of the agentic focus, especially senior architects that we’ll be hiring and the entire model. You are probably also hearing that it’s kind of like shifting to what is being termed within the industry as forward deployed engineers, where people with full spectrum skills in some sense it’s a bit of full stack engineers from the past, but with additional AI capabilities and domain understanding and customer interaction capabilities.
All that rolled into one is what is being termed as the forward deployed engineers. We are again looking at building capabilities around forward deployed engineers who are able to bring the data engineering, BI data science as well as AI skills together in designing and implementing the solutions that make a difference in the client organization. One final point on the AI the announcements by OpenAI and Anthropic that they are going to be forming giant ventures to create services arms extend their capabilities beyond just the models that they are building to directly getting into enterprises.
While there has been concern around that in terms of what it means for services companies, I think it’s also a validation that a very strong services layer is required and just the models by themselves cannot deliver value unless the services layer is available to take care of a lot of the orchestration, not just the business process and the decision making and the embedding within the workflow. But more importantly, topics around transparency, governance, evaluations, validation, provenance, ability to prove something.
All of these things are important questions and this is what a strong services layer can help accomplish so that AI solutions are not just some model that’s sitting in an ivory tower, but it’s actually seeing practical application with very defined business benefits. So I just wanted to give you that perspective, traction, standpoint. The second topic is our partnership with databricks. Again, a lot of traction. On this trip to the US I had opportunity to meet multiple people on the partnership ecosystem.
Our partnership in the consumer goods, manufacturing and technology space continues to evolve and strengthen. I also had a chance to meet with the person who heads up the provisional services partnership. We have small foothold there and this conversation helped push that further in the right direction. We are also evaluating potential inorganic acquisition opportunities where these firms come with a much stronger professional services partnership with databricks. And this is something that again validated with the databricks leadership team on whether that will actually help propel us right into the next orbit.
So this is something that we will double down on in the coming months and quarter. The Databricks Summit is coming up in June and we will have a very strong representation there with many of our leaders being in attendance. We have also organized several exclusive dinner events with several of our clients and prospects and I’m expecting more traction on the back of that. Finally, we are continuing to make investments both on the go to market front as well as on the backend capability experts, architects and so on.
And this action will continue in the coming quarters. So this year two strong pillars of growth will continue to be the AI traction and the partnership with databricks. And we are expecting that these will yield not only in this year, but in the coming years as well. The third topic I want to briefly touch upon is the investment that we made in healtheon. You would have seen the press release that came out earlier in the last quarter. It’s a small investment, but we are the first investor into healtheon healthion.
When we started looking at them and evaluating them, they came with an exceptionally strong business problem and a use case. But more importantly, a very, very well thought out technical architecture and an agentic framework that can solve the revenue cycle management problem within the healthcare space using largely 80, 90% of it being done using an agentic orchestration. Of course there is a human in the loop aspect to that as well. But the solution that they had built and conceptualized, that they had conceptualized and designed, was something that resonated with us.
They are currently in the process of building out the Agentix suite and the technical solution. They have also signed up to charter clients with whom they are working to build out these agents as part of access to the full suite of agents that they will be building, which we can then leverage and use in other conversations, both from a showcase perspective as well as using them as components in the solutions that we deliver. Plus the revenue cycle management solutions that they are building will be available in a composite fashion if we intend to take it into other healthcare pledge.
So I’m expecting that there’ll be more traction in the coming months and quarters and we’ll keep you posted about it as we move forward. Finally, the last topic I wanted to cover was the technology industry and some of the headwinds that we have talked about in the previous quarter. We did start this new fiscal with a bit of a gap down because of the headwinds that we witnessed in the last quarter, but I’m happy to report that there are several strong opportunities that we are pursuing, especially on the back of the AI push that we are in these accounts.
In fact, in our largest account as part of this trip I was able to participate in three fairly large deal conversations and one of them is almost at the point of fructifying it will be a $3 million plus deal in total. But the other two are also million million and a half in size. So while they have not completely covered the gap down that we had, they do bring us back to a reasonable level of confidence and we are expecting that if the momentum continues through the course of the year, we’ll be able to claw back much of what was lost because of the headwinds in the last year.
One other thing is that they’re also engaging with their vendor ops organization. We are providing analytics support to them, bringing us closer to the procurement organization and getting us more visibility with what is happening within the rest of the organization. So these are the four broad topics I wanted to cover. Otherwise as an organization we continue to double down on our client partners on hiring the right go to market people, making some internal tweaks as well so that we are fostering greater collaboration and cross pollination across our entities.
But these are things that will pan out over the next few quarters and keep you posted right in terms of any specific mentions that I’m very happy about how we closed out last year and seeing a reasonable amount of optimism as we step into the unit. So with that I’ll hand it over to Raj for further commentary on the financials.
Rajan Venkatesan — Chief Finiancial Officer
Thank you Rajan. Good evening everyone and welcome to the last investor call for the fiscal year FY 2526. One of the, I would say big positives for this year as we close the year for, you know was was going past the thousand crore mark which is a fairly significant milestone for us even in dollar terms Compared to the year in which we IPO’d, we’ve roughly grown about 2.2x in about the three year timeframe. So I would say from the sort of growth that we’ve delivered and consistently with profitability, we were fairly happy with the numbers that were achieved for the last fiscal.
And this was also in line with the guidance that we had given earlier in the year where we had indicated that on a full year basis we’ll deliver between 19 to 20% growth with an EBITDA of about 23 to 24%. Right. So pretty happy with the way the year has turned out to be in terms of specifically what’s happened in this quarter. Of course, Rajan already touched upon the fact that we did start the year with some level of shrinkage in one of our large accounts, technology accounts, right, where there was a fair bit of consolidation that happened within this one large account, as well as deprioritization of some of the work that we were doing.
So we are fairly happy to note that despite the shrinkage that happened in this large account, we were still able to grow in dollar terms by about 0.5% on a sequential basis compared to the previous quarter. This was of course driven largely by the strength that we witnessed in the BFSI as well as the CPG retail practice. And we’ll talk a little more about what drove growth in these accounts. But BFSI continues to sort of deliver fairly strong numbers even as we head into the next year. We expect this practice to continue to deliver strong growth for the last year.
We’re very happy to report that the BFSA practice grew in excess of about 80% compared to the year before. In terms of the YOY growth, of course, for this particular quarter, in dollar terms, the revenue came in at about 17% higher than the previous year. And in rupee terms, of course, because of the INR depreciation, the year on year growth came in at about 24.3% compared to the the same quarter in the previous year. I’ll talk a little bit about what sector specifically. So you will see that the technology vertical for us historically, if you see used to contribute in excess of almost 70%.
I mean if we go back almost 8 quarters. If you go back to Q1 of FY25, the tech vertical used to contribute almost 70% of our revenues at that point in time. From there to now, you will see that the share of technology from the 70% has come down to about 55% while technology has continued to grow. What is happy to Note is some of the other verticals, which is primarily BFSI and CPG retail, their share of revenue has grown substantially. One obviously based on the organic growth that we witnessed in bfsi, but to also the decision point acquisition which has led to the increase in the overall CPD and retail business.
Right. We’re also happy to note that share of revenues from the rest of the world, right? I mean at one point in time, I mean maybe eight quarters back, US used to contribute 94% of our overall revenues, whereas the rest of the world, including Europe was about 6%. We’re happy to note for the most recent quarter, our share of revenues from the rest of the world has increased to about 15% compared to the 7% or 6% 8/4 back. Right. So both from a geographical concentration standpoint as well as from a vertical concentration standpoint, we have seen some of the other verticals as well as geographies expand and that is again heartening to note.
Okay, I’ll talk a little bit about the profitability itself for this particular quarter. You would have noted that our EBITDA for this quarter came in on and this I’m talking about adjusted EBITDA. The adjusted EBITDA came in at about 24.1%. Right. There was of course a benefit of Forex which was to the tune of about 1.1% on the overall EBITDA for this quarter. But this particular quarter we also had some benefits in terms of certain costs that were there in the previous quarter which were which did not recur in the current quarter.
So you will all recollect that the last quarter we had made corrections to our wages to comply with the labor code. And also there was severance pay that was paid for some level of headcount rationalization that we had done in the last quarter. Those two items contributed almost one and a half percent of cost in the previous quarter, which did not recur in the current quarter rates. So we did get some of those benefits. However, the positive impact of Forex and the labor code related restructuring was offset by higher spends on travel as well as HG and A other items like Visa, even though our VISA cost on a competitive basis compared to the previous year has come down.
But then we did have a fair amount of VISA costs for, you know, for H1B filing that we had to do and those costs were incurred in the end of Q4. Both of those meant that the consolidated impact of higher travel plus visa cost was about 1.1% on our overall EBITDA. And of course we continue to sort of spend on certain other aspects around. You know we still want to increase some of the leadership hiring specifically as far as the AICOE is concerned, hiring client partners for some of our key accounts as well as continuing to build our databricks practice.
Right. So we had some level of higher resume spends in relation to some of these higher steps that we had to make net net from the 23%. You know the item that I spoke about meant that for this particular quarter we came in at about 24% but on a full year basis again in line with what we had guided before. Our business EBITDA for the full year came in at 23% in line with what we had guided. This is also the last quarter in which the transaction related retention cost expense that we were adjusting for the purpose of reporting EBITDA that would be incurred going forward.
You will not see that line right, because you will not have this cost going forward. So happy to report that as well. Coming to the PAT and the EPS this quarter also had a small benefit coming through on account of defer tax asset that was created in relation to unexercised ESOPs that were there in the US. Please note that this is only for the US and this was an accounting charge in some sense and there was not charge. This was an accounting product asset that we had to create which resulted in the ETR dropping from the typical 25% to about 22% levels for this particular quarter going forward we will not see any such impact.
And this I’m talking about the current ESOPs that have been issued to the employees rights on the EPS line. Again EPS for this quarter, while you did see a small degrowth compared to the previous quarter, I.e. The degrowth is largely on account of lower I would say other income that you would have seen compared to the same quarter in the previous year. You will see that for Q4 of FY25 EPS came in at about 2.59. Again said we are at about 2.55. But please bear in mind for the last year There was almost a 44 and a half crore forex gain that we had recognized in relation to some intercompany loans and advances that were given out.
Stripping that out, if you were to strip that out, the EPS for even on a comparative basis has grown by about 8% compared to the previous year. So with that what I would like to also close my opening remarks is that you know, we’re happy to note that FY26 concluded on a fairly strong note while There has been some level of headwinds in the technology vertical. We are particularly impressed by the strength in the BFSI and the CPG practice. Our databricks practice again continues to generate significant traction in terms of the pipeline and inbound sort of referrals.
We’re also fairly excited about the transformation and the winds of change that we are seeing on the AI side. So close to about 28% of our. The projects that we had delivered in the last year had a significant AI component. And we believe that this number is only bound to increase even in the current year as we continue to, to execute through this year. Right. With that I will hand it back to Asha and we can open up for Q and A.
Questions and Answers:
Operator
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press STAR and then one on their Touchstone phone. If you wish to remove yourself from the question queue, you may press Star and then two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles again. To register for a question, please press Star and then one. Your first question comes from the line of Aditi Patil from ICICI Securities.
Please go ahead.
Asha Gupta
Thank you for the opportunity to. My first question is on the technology vertical. The sequential drop in technology vertical appears to be higher than what we had called out in Q3. So correct me if I am wrong. We had called out around 5,6 million annual drop we are expecting in our one of the top tech clients. So if, if we consider that, then the sequential drop in Q4 seems to be slightly higher. Is, is my understanding correct and is there any other client specific issue in the technology vertical?
Rajan Venkatesan
Yeah, Rajan, I can take that. Yeah, go ahead. Yeah, Aditi, specifically in this particular account, while the initial estimate was the, the drop will be closer to about five. That was the estimate that we had given out in the last quarter. In reality, you know, some of the rationalization that happened subsequently as well or continue to happen meant that the total value of shrinkage was closer to about six and a half to $7 million. That is the total value of shrinkage that happened in this particular account.
But with this, the one thing that we want to confirm is all the renewals, all the rationalization are all done. Right? So it was, it was not fine after 6 million, it’s closer to about $7 million. Right. But this, you know, to Rajan’s point, I think we are in active discussions even with this particular account on several other threads at this point in time, which definitely gives us confidence that we will be able to recoup more than 50 to 60% of of the revenue lost in this account in the next one to two quarters.
Right. In terms of the overall book of work that we execute with them. So there are already some very advanced discussions that we are in this particular client to recoup the revenue loss.
Asha Gupta
Okay, okay, got it. And apart from this client, what is the traction we are seeing in other clients and therefore what kind of growth should we expect in technology vertical in FY27?
Rajan Sethuraman
I can cover the traction and Raj, you can comment on the percentage. The other two large accounts that we have in the tech space in general, with one of them, it’s been a fairly even keel right at this time. They have also gone through some leadership change at their end at the very top. And the third one, they are, I mean they’ve been going through some consolidation and related exercises over the last couple of years. But at this point in time, again, the interactions that we had so far indicated we will actually in the next year.
Other than these three top accounts in general, the sentiment in the tech space, given the amount of activity that is happening in relation to AI, seems to be more positive rather than negative at this time. Of course, clients want to do, they want to do a lot more on their own. But there is also the general feel that whatever initiatives were kept on the back burner, whatever was shelled earlier, can all be picked up and there could be movement on many of them because the economics of getting initiatives done has improved significantly.
I mean, you can do many of these things with much higher velocity, with lower effort and that is creating a revival of interest in exploring and doing a lot more things in comparison to budget constrained approaches there in earlier quarters. So in general I feel more optimistic. I mean the percentages and stuff we will obviously see as next 1, 2/4, but at this point in time that’s the headline wave.
Asha Gupta
Okay, that’s helpful. And my next question is on the BFSI vertical. So we had a very strong growth in this vertical for last few quarters, but in Q4 if we see the sequential growth, it was flattish. So was there any like one time revenue in Q3 which was not there in Q4 or what can explain this?
Rajan Venkatesan
So Aditi, even in relation to what we delivered for the last quarter, the share of BFSA revenue from 14% has gone to almost 16%. Okay. In this particular quarter. Right. On a sequential basis. So there is a definite increase in this particular quarter. In relation to the previous quarter.
Asha Gupta
Okay, I will just check my numbers on that. Yeah,
Rajan Venkatesan
Yeah, no, and happy to answer this offline. But you know, at least for this quarter, there was, there was fairly strong momentum even in bfsi. Of course, as we see as we, as, as BFC continues to scale. Right. And, and becomes, it’s, you know, the last year, they ended the year with close to about $18 million in revenue. You will, as the business continues to scale, you will see the incremental rate of growth dropping. Right. Because obviously they’re on a higher base as well now. So that is something that we will start to witness.
But in absolute terms, the current business has continued to grow.
Asha Gupta
Okay. Okay, got it. Okay. Thank you for answering. I will get back in the queue.
Rajan Venkatesan
Thank you.
Operator
Thank you. Your next question comes from the line of Karan Upal with Philip Capital India. Please go ahead.
Rajan Venkatesan
Yeah, thanks for giving me the opportunity. So Rajan, you mentioned about the AI impact on the business. You said that almost half of the work has some bit of a, is involved. So if you can give some examples in terms of the nature of services which we are delivering as well as the deal sizes and if you can also comment how deal sizes are different from the traditional deals, our deal size of around 0.5 to 1 million or maybe 1 to 2 million. And how much of it is, let’s say the token cost, which could be a partial revenue, and how much is retained by Latent Group.
So that’s my first question.
Rajan Sethuraman
Yeah, the last question is easy to answer. Whatever revenue that we are reporting, this is all our revenue. It’s got nothing to do with token cost. Because the model that we use with pretty much all the clients that we’re engaging with is that they take care of the infrastructure tokens, what are the LLM access and all that. So everything that we are talking about is our revenue. I did give some examples when I did my opening remarks around the agentic workflows and processes that they are impacting around payments, invoice reconciliations, market intelligence, orchestration, campaign analytics, fraud, counterfeit analytics, warranty claims, and so on.
It’s fairly broad based in the sense that any area where the process is known and the parameters are understood and guardrails can be established. There is good guardrails in the sense that now you want to make sure that there isn’t hallucination, there is transparency, traceability. Right, all of that stuff in terms of what is the decision that is being made and why is the decision made. And then you can clearly connect the dots. Especially in a multi agent orchestration framework, when agents hand off from one to other, it’s important to have that kind of recognition.
So in those type of situations where there is a good understanding of the traceability parameters, there is enough traction. Of course simpler ones where when I say traditional, when I gave those numbers it included the combination of all three traditional, generative and agenting. A lot of the work that we are doing is having some AI component in some shape and form. So going back to your question on deal sizes, it is the full spectrum. I mean we are seeing examples where a particular use case or something simple is being done with dollar spent.
But we are also seeing examples where the initiatives are fairly larger. In fact the initiative that I the few, the three initiatives that I referred to with our largest account, all of them involve AI in some shape and form. Because I mean with technology clients are pretty much a given. I mean you cannot do any work without the AI either under the hood or directly being implemented in the form of either a generative AI interface or an agentic orchestration of the workflow. So the spectrum of work from a deal size also ranges all the way from quarter million to two, three million dollars.
Rajan Venkatesan
Okay, thanks for the detailed color. Second is on this OpenAI and Anthropics launching their services arm. It’s very recent phenomena. So any anecdotal evidence of let’s say enterprises maybe giving more work to these services arms of OpenAI and Anthropic and maybe rationalizing a third party vendor not Latent View but anyone else you have seen in the industry some observations that could be.
Rajan Sethuraman
It’s too early to comment on that. I mean obviously they just have announced these launches. I think OpenAI acquired a company if I remember, I think called Tomorrow or some, that was the name I saw and the others are in the process of setting up their JVS and hiring people. Anthropic Plus OpenAI probably had put out recruitment 500 odd people forward deployed engineers that I mentioned earlier. So they will be building out these things but obviously they will focus more on the areas where they see friction with respect to the model usage.
There is a fairly large amount of work that needs to be done and see by any stretch of imagination that an OpenAI or anthropic will be able to do everything because the model is just one aspect of it. Everything that I talked about that needs to sit on top of that, right? That all needs to be done by some services company or the other. Of course these can range all the way from boutique firms to the OpenAI’s and Anthropic Service arms doing it themselves. But I’m sure that they are also announcing multiple partnerships.
Anthropic has received applications for some 40,000 people partners and they are working through the mechanics of areas. These two firms are also taking very specific approaches. Anthropic has been more enterprise focused. OpenAI has been more consumer focused. But I’m sure that there will be some amount of meeting point that will happen over the next few quarters. In general, my feel is that play will be a significant play in the scheme of things. I mean, that is the point I wanted to make. That is not going away.
Of course the nature of the work will change in terms of the power deployed engineering model coming into play. But there is a tremendous amount of work that needs to be done on all the points that I mentioned, whether it is eval, observability, traceability, all of that stuff.
Rajan Venkatesan
Okay, got it, got it. The next is on FY26. No, in dollar terms it is 20% growth. But you can clarify what is the organic part in it? And for FY27, how should we think about the overall growth for, for the company?
Rajan Sethuraman
Sorry, what was the question?
Rajan Venkatesan
Sorry, can you just repeat that again? I was asking it for FY26, if you can clarify the organic growth in dollar terms, that was one. And for 27, how should we think about the growth
Rajan Sethuraman
For the overall business? The puts and takes? Yeah,
Rajan Venkatesan
The organic growth for the business would be 18%, I think 18.2 or 18.3%. Because you please recollect that only there was one quarter of decision point revenue which was not consolidated last year. We started consolidating decision point revenues from first of July last year. Okay, so we had three quarters of revenue. So it is only one quarter that was missing. So. So the rest of the business of course delivered 18% growth. Right. In terms of your, your growth guidance for the next year. And, and maybe.
Rajan, do you want to take that or do you want me to take that question?
Rajan Sethuraman
Yeah, yeah, you can take it. I can add in the colors. Go ahead.
Rajan Venkatesan
So Karan, right now what we definitely can see, you know, and beginning of the year, of course, you know, when we’ve been looking at planning for the next year, we actually want to split that answer into a couple of sort of data points. Right. So right now, the way we are looking at our current order book as well as pipeline, right. We have a reasonable level of confidence in terms of high visibility pipeline and order book for to deliver about 12 to 13% of growth. Right. And that is of course at the beginning of the year.
Right. As we see in any year, typically whatever you have visibility for, you will end up adding, you know, more to the order book and pipeline through the rest of the year. Right. And that is where we obviously are making investments in the go to market side as well as capability building side. All those investments are obviously targeted to deliver a growth rate which is very similar to what we delivered this year. Okay. This is all organic that I’m talking about. I’m not talking about including inorganic over here.
But right now the level of visibility that we have is to deliver a 12 to 13% growth, but with investments that are being currently made to deliver a similar growth to what we delivered, which is 18 to 20%.
Rajan Sethuraman
Yeah. The only data point I’ll add is that in the previous years, compared to when we start the year to when we end the year, this high visibility number that Raj talks about has typically gone up in the range of 8 to 10%. So it kind of like adds up. Okay. I mean we are targeting a 20% kind of a growth and if things pan out well, then we should be able to get that.
Rajan Venkatesan
Okay. Okay. And just one clarification. Sorry to interrupt.
Operator
Sorry to interrupt, Mr. Karan.
Rajan Venkatesan
Thanks, thanks.
Operator
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the conference, we request you to limit yourselves to two questions each and rejoin the queue for any follow up questions. The next question comes from Vimal Jamnadas Gohil from All Family Capital Management Private Limited. Please go.
Vimal Jamnadas Gohil
Yeah, thanks. Gentlemen, my first question is on the overall outlook that you just provided. Partly you’ve answered my question, but I just wanted to get our sense. What are we building in, in terms of tech and non tech verticals? Are we building the headwinds to continue for the tech vertical? Because you mentioned that despite strong conversations around with our top clients, we will still see the revenues won’t be as, won’t fulfill the decline that we’ve seen. So that essentially means that the non tech, the non tech verticals will do the heavy lifting.
Correct me if I’m wrong, and I just want to understand the nature of the decline in the tech vertical. Is it because of absolute cancellation of projects or has there been a severe deflation in the amount of work we’ve done? So basically what I mean is the volume of work that we’ve done is possibly increased, but the deflation around that has been higher than our volume growth has that been the case?
Rajan Sethuraman
I’ll take the second part of the question and Raj, you can comment on the percentages. The nature of the decline is twofold. One is consolidation, where they have decided to work with one of several partners. This has led to some amount of the decline. The second part of it is taking the work in house. Specifically in this account, there was a new leader who came in to head up a big chunk of the work that we were doing. And their preferred model is to work with internal full time employees as opposed to work with vendors.
That’s what they are familiar with and comfortable with from their previous organizations. And therefore the moment they came on board, they very clearly made their intent known to us that this is the direction in which they’re going to move. There is no impact on account of work staying the same, but revenue falling or anything like that. I mean, the way the whole industry anyway is moving is that budgets are either staying the same or going up. In general, they’re just getting more work done because of the increased productivity that is now possible through the use of AI in all shape and form.
So if you take a baseline two years back and compare it to today across the board in all industries, all sectors, and more so in the technology sector, you will feel that for the same amount of budget, 30, 40% work, more work is being done. There has not been any shrinkage of budgets itself that we have seen. They either been a reallocation to internal mechanisms or consolidation with other partners. We haven’t seen instances where clients have said that do the same work for us, but we’re going to pay you less in general, said that we are going to pay you the same amount, but more work can be done.
Okay. With the money that’s available. Raj, maybe you can give the color on the percentages.
Rajan Venkatesan
Yeah, yeah. So Vimal, in terms of percentage, your assessment is right, that it will be the non tech vertical which will have to do the heavy lifting this year. Right. But having said that, I think that right now the visibility, or I would say the sort of confidence that we have is that tech will deliver anywhere between. And I’m giving you a range over here because right now we are working on certain pipeline opportunities. Depending on one, the size of these pipeline opportunities eventually and also the timing of when we close them, the revenue that we’ll be able to book for the year may sort of change.
Right. So tech vertical for this year should probably deliver between. My say, our sense is that it should be between 5 to 8% of growth on a year on Year basis. Okay. This is adjusting for, of course, the loss. They will still be able to recoup some of the losses, of course. Also, there are some new conversations that are going on with some new logos as well in the technology vertical. So adjusting for the losses that we’ve already witnessed, we should be able to deliver a YUI growth of about between 5 to 8%.
That’s the confidence that we have. Consumer should. Our senses right now should grow anywhere between 18 to 22%. Okay. So that’s the sort of range that we’re looking at. And BFSI should. Obviously the growth rates for this year, for the next year will come down compared to the previous year, but our sense is they should at least grow at about 40% for the next year. Right now where we stand.
Vimal Jamnadas Gohil
Understood, Understood. Raj. Raj. Just on margins, you know, we’ve had benefits around, of course, the USD. We’ve also had some employee adjustments that we’ve done, plus we have had our utilization levels around 90%. I do understand, I mean the utilization going up because of employee adjustments. But to some extent I feel we’ve sort of stretched our levers in terms of, you know, margins. In case there is any normalization as far as these levers are concerned, how should we think about margins going ahead?
I mean, I don’t see any levers that we can sort of leverage at this point in time.
Rajan Venkatesan
So I would say that we still continue to. So. So your point on, on utilization for this particular quarter going up from the 85 to almost 89 levels is very valid. The only point that I would want to reiterate is one of the reasons why the, the utilization levels have significantly gone up in this quarter is owing to some one off. When I say one off, this was certain large one initial project that we have won with consumer, certain consumer clients. Okay. And they are actually cutting across two different quarters.
So some of these projects were one in February and March. Okay. And they continue to be delivered through May and June as well. Right. So in order to deliver these projects, of course we had to deploy all the people that we had on the bench. And therefore that’s the reason why you have seen utilization levels going up. Having said that, I think one of the things that we continue to work through is this large client consolidation that we spoke about. A lot of the work historically used to happen on site.
One of the things that we are actively pursuing with the client is as we open new threads with the client, we want to do a lot more work either offshore or nearshore. Right. So that is one lever where definitely from a margin standpoint we will be able to make better margins on some of these projects. Two, I think while on a full year basis you may not have seen the impact, definitely the favorable dollar to INR ratio right now as we see it should continue to positively impact us. I mean if they continue to stay at these levels, for sure I think there will be a positive impact on margins for next year.
So I think there is enough, sufficient cushion both in terms of the movement to more doing more nearshore and offshore work for tech planes, plus the favorable INR USG issue right now.
Vimal Jamnadas Gohil
The CPG vertical should see normalization next quarter, Raj, because there was a one off this quarter.
Rajan Venkatesan
It will not see a big. Yeah, there will be some level of, I would say normalization for the next quarter because some of these large projects that we executed, they will start sort of tapering off in the next quarter. Of course there are some conversations in the pipeline for follow on work, but you will see a little bit of tapering off for at least the next quarter for CPG
Vimal Jamnadas Gohil
Fair. Thank you so much. I’ll fall back in the queue.
Operator
Thank you. The next question comes from the line of Pritesh Thakkar from PL Capital. Please go ahead.
Rajan Venkatesan
Thanks for taking my question. So earlier questions of Karan, I mean you were negating that 13% of revenue that is anticipating is majorly coming on the existing accounts or the qualified deal pattern that we have is the right understanding.
Rajan Sethuraman
Sorry, I couldn’t hear you clearly. Can you repeat the question please? It’s coming. Gobbled. Is it fine now? Hello?
Operator
Using a speakerphone or something? Maybe request to use the handset?
Rajan Venkatesan
Yeah. How is it now? Is it fine?
Operator
Yeah, go ahead. That’s fine.
Rajan Venkatesan
Yeah, I was. No, I was referring to the earlier question of Karan. You were indicating 12, 13% of revenue that we are anticipating. So that is majorly on the existing accounts or the qualified deal pattern that we have. That. That’s what we are referring to. Right? As per my understanding,
Rajan Sethuraman
It’s not just existing accounts. When we say we have visibility of 12 to 13%, it will be a combination of growth we are expecting from existing accounts as well as the high probability opportunities that we see in the pipeline with the new stakeholder groups in existing accounts as well as completely new logos as well. What Raj referred to is the ones where there is high probability and high degree of confidence. The full pipeline will have many other opportunities that are at a lower level of probability which you want to progress.
In addition to that, we still have more than 10 months available and we will keep adding new opportunities. The point I made was that in general, in the past, compared to the high visibility number that we talked about at the beginning of the year to where we will likely end up, we have seen a 8 to 10% kind of an addition. Okay. Things go well. So that’s what we are expecting for this year. As.
Rajan Venkatesan
Next on the. I was looking at the client additions that we had on a $5million PL band. If you can provide some color on the industry profile and the scope of engagement with his account.
Rajan Sethuraman
Raj, can you take that? He’s asking about the split of the accounts in different buckets.
Rajan Venkatesan
Sorry, you’re asking for. Sorry, Pritesh, what is the. The question? Split of which accounts in what bucket? Sorry.
Vimal Jamnadas Gohil
Sequentially. Sequentially, we’ve added $5million plus band. We added one account in there. If you can provide some color on the industry profile and the scope of engagement with that particular account.
Rajan Venkatesan
So just, just one second. I’m just. So this particular account is the. One second. I’m the
Vimal Jamnadas Gohil
Top account. $5 Million. Yeah,
Rajan Venkatesan
Yeah. So this actually is. Is a financial services account that we’ve added.
Vimal Jamnadas Gohil
Okay, okay, understood, understood. Okay. And lastly, on the, you know, bookkeeping side, two years
Rajan Venkatesan
Back, if I look at DSO was around 65 in FY25, it was 73 a year back and now it is 80
Rajan Sethuraman
In FY26. So if you can provide some color, why it is inching up and what should be the steady state going forward.
Rajan Venkatesan
Yeah. So Pritesh, just on this, one of the reasons why, like I told you, right. I mean, there were a few. So I would say two things. One, as the share of decision points revenue to the overall company’s revenue increases, you will see a small uptake. I think we are already maxed out in terms of what that impact is. But decision point, because they do a lot of work with CPG companies, CPG companies in general tend to have credit terms ranging between 90 to 120 days. And for this particular quarter, specifically because of the uptick in CPG revenue, which is largely driven by decision point, you did see that DSO days go up.
Having said that, purely from a housekeeping or a bookkeeping standpoint, we are very well aware of the fact that the DSO was higher year end, but we’ve realized a lot of those collectibles subsequent to the year end as well. So some of those were billed out or were in unbilled revenue, which has been subsequently invoiced. So there has been a Fair bit of progress as far as the, even the collectibles are concerned.
Rajan Sethuraman
Okay, understood, fair. Lastly, on the margin side,
Rajan Venkatesan
Given our appetite for investments, even if I look at last year, there was a lot of rupee depreciation benefit that come into our bucket but we made a lot of investments there. So even if I were to include quarter three one offs that we had on adjusted basis, if I look at FY26 margins are I would say marginally lower than what we delivered in FY25. So can we expect FY20 to replicate a similar trend of yours or you believe the investments are largely done and dusted? I heard Rajan saying that we have some seniors onboarding process and at the same
Rajan Sethuraman
Time we are hiding the forward deposit engineers there. So just wanted to understand the investment strategy that we have in.
Rajan Venkatesan
So yeah, I would say, you know, consistent with what Rajan already alluded to, there will be some senior level hiring that we will continue to make specifically in the AI space. Right. Including a potential hiring of a chief technology officer. So some of these investments will be made to obviously future proof the organization. We will continue to add people on the AI side across all industries as well. Because that is something that I think from a, you know, from how we lead conversations with clients, I think an AI first narrative is absolutely important.
We need to hire people who delivered some of these projects at scale. Right. For large enterprises. And we will continue to make investment in bringing some of these senior level folks pritesh. So that will, I don’t think from an investment standpoint, you know all the, all the investments that we had to do, it’s not like we’ve done all of them specifically on the capability side we will continue to invest. Maybe on the go to market side we will not do, we don’t need to do a lot more investments.
I think there is a fair amount of, I would say investment that is already there, here and there. You know, depending on it could be geography specific investment could be in Europe. Right. Specifically we mean we may do one to two hires but on the GTM side we are largely done as far as the investment is concerned, databricks. Again, we will continue to invest in this partnership channel for growth. So I would say the two big areas of where we will continue to make investments would be databricks as well as the AI center of excellence.
Rajan Sethuraman
And how much is our revenue from databricks currently this year? If I look at 27, 26 full year absolute terms.
Rajan Venkatesan
So on a full year basis our revenue from the databricks ecosystem put together is closer to about 17 and a half million
Rajan Sethuraman
And by and by growth how much that to be delivered in energy terms.
Rajan Venkatesan
So the previous year the similar number was was close to about 12 million.
Rajan Sethuraman
Understood, understood. Yeah. Thanks a lot. Thanks a lot for
Rajan Venkatesan
Asking this question. Thank you.
Operator
Thank you. The next question comes from the line of Srinath V with Bellwether Capital. Please go ahead.
Srinath V
Hi guys, three questions. I’ll just put all the questions together. Raj, first question would be the growth outlook shared in the call. Would that be in USD terms or constant currency terms? If you would clarify that, that’ll be great. The next set of questions are on databricks. Want to understand outlook for Databricks for FY27? What’s the kind of growth you guys are working with and would it be fair to assume that databricks funded or cloud partner funded projects will start coming in this and would it largely show up in CPG and industrials?
And the last one would be the financial services business. Could you kind of COVID it a little more in detail? The sequential growth yoy growth momentum seems to continue. So again kind of how is the outlook for FY27? New logo additions or is it all coming from these existing set of customers spending more? So these are the large three areas if you could please address. That’ll be great. Thanks guys.
Rajan Sethuraman
Raj, you can take the first question. I will lateral the second and third.
Rajan Venkatesan
Yeah Srinath, to answer your question, the growth guidance that we put out at the beginning of the call is all in USG terms, right? So not inr.
Unidentified Participant
Okay,
Rajan Venkatesan
Thanks.
Rajan Sethuraman
On databricks Srinath, the expectation is that the databricks portfolio of work will continue to grow at about 60% plus. Last year I think we went from 11 between 11 and 12 to about 17 plus. Okay. This year we are expecting in fact it should get accelerate more. On the back of the points that I made at the beginning of the call there is good traction, there is a lot more engagement. We are talking to all the right people, the senior people, they are bringing us into their QBRs. When they do their QBRs they call all of their account executives and salespeople and we are able to showcase the solutions that we are building.
So in general there is good recognition. I talked about the professional services trust as well where they could bring in partners and even on that, I mean professional services in databricks context in the past has focused more on migration type of work because that’s a fairly big chunk of where databricks gets its revenue. But they are now starting to say in the recent conversations that industry solutions and building on top of the migrated data will be an important component as well. And that’s where they see somebody like us bringing in more differentiation than the typical migration only partners that they worked with in the past.
So in general I’m expecting that the trajectory of 60% kind of growth should continue on the financial services. It’s going to be a combination of growth with the existing account, the large account that Raj has talked about. And then there is also a follow up question, right. Getting into the final that there will be momentum with that account going into this year. But even as we have started this year I think we have signed up two other accounts and I had meetings with like two more in the wealth management asset management space as part of this trip.
So I’m expecting that there will be traction in all the spaces, payments, asset wealth management and also the credit and credit card as another specific insurance is something that we are looking to get in. But the sectors where we are already present, I’m seeing good conversations in all of them.
Unidentified Participant
Thanks Raj. Thanks Arjun. Have a nice day guys.
Rajan Sethuraman
Thank you.
Operator
Thank you. The next question comes from the line of Rohan Nagpal with Helios Capital Management. Please go ahead.
Rohan Nagpal
Hi. Thanks for taking my question. It’s a couple of quick questions in my end. So the first one, I think you said that you’ll be able to recover 50 to 60% of the books that will zero days in your top customer by the end of. Is that on a run rate basis or do you expect to recoup 50, 60% of that for revenue that you book this year? And then the second question was I missed a bit on Anthropic. Have you signed up with Anthropic as a partner on the professional services front or as a customer?
Rajan Sethuraman
Raj, do you want to take the first one I can answer up against first?
Rajan Venkatesan
Yes. The first question is obviously what I meant was we’re looking to sign deals which will ensure the value of the deals itself will ensure that we are back to at least we’ll recoup 50 to 60% of the total annual contract value with these clients Right now depending on the timing of when we sign some of these deals, they could sort of have an impact on the revenue for the full year. But right now as we see as we speak for this particular client, the, you know, the current projection is that we will be at least at 90 to, sorry, 95% of the revenue that we delivered with this client for the last year.
That is the target that we set out for this client on a full year basis.
Rajan Sethuraman
Yeah. So it’s kind of like absolute revenue terms, right? Just to confirm the point. That’s right, yeah.
Rajan Venkatesan
That’s right. Yeah.
Rajan Sethuraman
Not just ARR. Yeah. This is discussions with Anthropic as a partner, not as a client at this time. I don’t know if any requests or anything that is there on that side. I mean the good thing though is that we are talking to fairly senior people and in fact the person with whom we are engaging, he used to be a databricks before and we had actually started helping him directly right on. On his analytics requirements. So there is a possibility that we might be able to extend. But right now it’s all limited to the partnership with.
Rohan Nagpal
Okay, that’s it for man. Thank you.
Rajan Sethuraman
Thanks.
Operator
Thank you. The next follow up question comes from the line of Aditi Patil from ICICI Securities. Please go ahead. Aditi, your line is unmuted. Please proceed with your question.
Asha Gupta
Yes, thank you for the follow up question. My question was on margins. So I think at the start of the year we were expecting Q4 margins to be slightly higher, maybe 24.5% plus adjusted EBITDA margin to were there any unexpected cost headwinds in Q4 and given that we will be investing in AI and Databricks and other capability building. So do you expect there. I mean the margin could be below FY26 levels in FY27.
Rajan Venkatesan
So Aditi. Yeah, I mean this quarter like I said, right. There were a few items on the agent, even when I did the EBITDA walk last quarter to this quarter there were some professional charges that were incurred in relation to some senior level hiring that we’re looking to do. Right. On the databrick side as well as the aicoe side. So there, there were some hiring costs that or consultants that we had to engage to bring on some of these senior level hires. So that was incurred in this particular quarter which did have I would say a marginal impact on EBITDA for this quarter.
Adjusted for that obviously we could have been closer to the 24.5% that you spoke about. Now in terms of what we would like to guide for the next year, Aditi, See like I said, I think this year will be a year where specifically on the aicoe as well as the databrick side we feel the need to bring in fairly strong leadership to drive conversations with clients. In fact, like I alluded to before, there are some senior level hiring that will be done on both these fronts which will Mean that at the beginning of the year, right now, what we would like to guide.
Right. And of course this is not adjusted for currency. There will be some benefit of currency. When we did the planning, of course, all this planning was done based off a USD to INR conversion ratio of 92. Right. Right now where we are, you know, we’re talking about 95, 96 or you know, even higher levels for the rest of the year. But when we’ve done the planning at 92 odd levels, what we’ve planned for is, is an EBITDA between 21 to 22% for the revenue growth that we will deliver primarily on account of some of these upfront investments that we are making in the leadership hires on the aicoe side as well as the databricks.
Asha Gupta
Cross margins further with increasing share of AI project revenue and increasing share of offshore and nearshore revenue.
Rajan Venkatesan
Sorry, sorry, sorry, Aditi.
Asha Gupta
So on gross margin front, so I wanted to understand the gross margin profile of the AI project. So AI revenue versus traditional revenue. And then also you mentioned of some of the work moving to offshore and nearshore. So is there scope for improving gross margins further because of these two factors?
Rajan Venkatesan
Yeah. So the gross margin, you would have seen that we started reporting the gross margins from this in the investor presentation. Also, we reported gross margins for the first time in line with what, what the feedback that we heard from you folks. Right. So we’ve started publishing gross margin. So for the, for the full year, if you see. Right, one second. Give me a second. Yeah. So for the full year, we reported close to about 50.8% of gross margins for the last year. Right. When you compare this with the gross margins that we are seeing on the AI led projects, we are seeing gross margins in the range of 55 to 58% across.
So it’s a fairly broad spectrum. But depending on the size of the projects as well as the nature of the projects, we’re seeing that the gross margins on those projects are definitely higher at about 55 to 58%. We do see levers to improve gross margin by doing more near shoring as well as offshoring work. Aditi. But when the planning that we’ve done and the guidance that I gave out is without factoring any significant change in the current levers. Right. So we’re assuming the current sort of model to continue.
Right. So to the extent we’re able to execute better, we should see some upside in margins on grass margins from these fronts.
Asha Gupta
Oh, okay, got it. This is helpful. All the best for FY27.
Rajan Venkatesan
Thank you.
Operator
Thank you. We will take the last question from the line of Karanopal from Philip Capital India. Please go ahead.
Rajan Venkatesan
Yeah, thanks for the follow up. Just wanted to understand, you know, from the pricing perspective how much of our work is time and material versus the fixed price and how is the trend of these two line items? Is TNM decreasing, you know, in last few years? And second part of this question is that how much deflation are we seeing in the TNM line item because of AI productivity benefits?
Rajan Sethuraman
Raj, you can go ahead. I will add in some color though at the end.
Rajan Venkatesan
Yeah, yeah. So in terms of our overall share of fixed bid to tnmb. So within TNM again we’re including the way we internally review or classify contracts is pure starfleg or TNM contracts. Then there is a concept of managed services which essentially again, while the pricing is headcount based or capacity based and there is a fixed monthly sort of revenue that comes to latent view, it is still to some extent based off a headcount number. And then of course you have the fixed bid or you know, we don’t do a lot of outcome based pricing today, but fixed bid you have.
Right. So today the ratio of fixed bid to TNM for us will be closer to about 18 to 20. So 20 from fixed bid, fixed scope type of work. And then TNM would be about 80%. But within that 80%, almost 65 to 68% of that would be in a managed services construct where it’s not like what I mean to say, it’s not based off timesheets that someone is entering or in the client systems. Right. These are essentially people where we are contracting for a certain level of capacity and the client bases a monthly fixed amount for those resources there.
So there is no linkage to one the time that is clocked or to the sort of deliverables that we have to deliver as part of the projects. Right. So that’s how we internally view it. What was your second question, Karan?
Vimal Jamnadas Gohil
Yeah, I was just asking what is the definition in the TNM projects because of AI productivity.
Rajan Sethuraman
So clearly I will add color to the first question also before I take up the second one. So Karan, the plan though is to shift a bit more through both milestone and deliverable based as well as outcome based. So that 20% that Raj referred to, we want to bump it up. Okay, I’ll tell you the reason. The reason is that productivity gains that you can get by building an agentic foundry or a suite of agents that can be deployed along with People who do the work or even productivity benefits by building a full fledged solution.
Non linearity or even the pace at which we can do work. These can be accrued to us only if we contract differently. If we continue to contract either in a managed services model, in a tandem model, then the benefit of having a suite of agents that are doing a bit of our own people being more productive, they will only accrue to the client. So internally we have launched initiative where we are incentivizing our project teams in areas that are well understood, the process is known and we are able to build good bounded agentic solutions that we encourage the client to to contract with us in alternate models as opposed to just a managed services or a T and A model.
We’ll keep you posted on the results of how that is panning out. But internally our teams have been incentivized to move a bit more rate to that model. The second part of the question, there is no deflation on rates. The way it works is that clients continue to engage our people. In fact, in many instances they will be willing to pay a bit more. That’s why Raj was referring to to an earlier question. You are saying that gross margins could be higher if you are doing agentic or AI work. But the expectation of course is that though they are paying more for the people, they will expect a lot more work to be done by them within the time frame.
So therefore, in terms of margin, there is no deflation, There are no rate reductions or margin deflation that is happening. It is just that people will be more productive. So more initiatives will get done. The same set of people and same capacity.
Rajan Venkatesan
Got it? Got it. Thanks. Thanks for the color and all the best for effect.
Rajan Sethuraman
Thank you.
Operator
Thank you. As there are no further questions from the participants, I now hand the conference over to the management for closing comments.
Rajan Sethuraman
Yeah, thank you. Not too much to add. I think we covered quite a bit of the stuff. I mean, this will be an important year. It will be a inflection point here, right? In many ways, whether we are talking about the whole AI agentic shift that is happening, partnerships with the likes of an anthropic and so on, or whether we are talking about data breaks and the work that we are doing, even with say GCP and Microsoft and so on. So there is a lot more action that we expect to see on those fronts. Of course, everybody is trying to understand how the entire agent shift will play out.
My own read on the matter is that there is going to be a need for a lot more complex design engineering of the agentic frameworks, which brings in all of the governance and transparency aspects that I have talked about. We need good people who are able to marry the not just the technical understanding of how to use a cloud code or a codex or how to create agentic orchestration, but people who can marry that with the business process, the underlying risk and the transparency and the governance requirements and then bring it all together.
So in some sense this will be an year where this whole forward deployed engineering concept, right, that brings together many of those things, will start seeing a significant play. We are gearing up for that in all ways on the capability, expertise, certification, hiring front, as well as how we evangelize this, how we talk about this to our clients and show them what needs to be put in place so that they can get the benefits of it. So we’re expecting traction on all of those fronts. Obviously, we’ll keep you all posted on a quarterly basis on how this unfolds, but thanks for your wishes and hopefully we will continue to execute the initiatives that we have set in motion.
Operator
Thank you on behalf of Latent View analytics limited that concludes this conference. Thank you everyone for joining us. And you may now disconnect your lines.