Radiant Cash Management Services Ltd (NSE: RADIANTCMS) Q3 2026 Earnings Call dated Feb. 12, 2026
Corporate Participants:
T. V. Venkataramanan — Chief Financial Officer
Alexander David — General Manager – Operations
David Devasahayam — Chairman & Managing Director
M. Muthuraman — Director, Strategy and Investor Relations
M. Muthuraman — Director, Strategy and Investor Relations
Analysts:
Unidentified Participant
Abhishek Chawla — Analyst
Presentation:
operator
Sa. Foreign. Ladies and gentlemen, good day and welcome to radiant cash management Q3 FY26 earnings call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on a Touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Raju Barnabal. Thank you and over to you Sir.
Unidentified Participant
Thank you and welcome everyone to Q3FY26 Earnings Conference Call of Radiant Cash Management. Today we have with us management of Radiant Cash management represented by Colonel David Dev Sahayam, MD, Sir Mr. Alexander David Whole Time Director, Mr. Venkataraman CFO, Coroner Ben Jacob CEO and Mr. Mutsu Raman Strategy in IR with this I hand over the call to MD sir for his opening remarks post which we’ll start the Q and A session. Thank you and over to you Sir.
David Devasahayam — Chairman & Managing Director
Thank you very much Raju. Good morning ladies and gentlemen. Thank you for joining us today for Radiant’s investor call. The consolidated revenues for the quarter grew at 7% over the same period last year and at 18.3% over the previous quarter. The growth was largely attributable to the rapid expansion of the footprint of Radiant race money, our fintech subsidiary. Standalone revenues reported a 2.7% drop over the same quarter last year due to reduction in the railways and E Com logistics segments of our business. Our consolidated EBITDA margins improved marginally to 13.9% in the current quarter from 13.1% in Q2 FY26, mainly on account of various cost reduction measures undertaken by the company.
Volume of cash handled during the quarter at rupees 0.44 trillion remained flat over the same quarter in the previous year. Frequent questions that we face from our investors is when will the profitability be restored to the previously reported high levels of 20% plus EBITDA margins? We are conscious of our erosion in profits, but these measures have been taken after due deliberation with a future growth perspective in mind. Valuables Logistics is still continuing its losses and though the current quarter losses are lower than the previous quarter, the pace of growth is still not sufficient to achieve breakeven.
We are growing sequentially at 30% plus quarter on quarter and the momentum is healthy which is giving us confidence to achieve breakeven the next one or two quarters. Cashman operations have been growing at a healthy pace with decent margins, which is helping offset pressure on revenue and margins in our core retail Cash management segment. We have recently won a large PSU bank mandate which will go live from 1st April 2026 which should help even healthier growth rate for this segment Improving Overall Profits Direct Business continues its improving trend and now accounts for over 17% of our standalone revenues.
While the volume of cash handled has remained stable, the number of points have increased thereby adding to the overall cost of servicing these points. We are taking measures to realign our costs, particularly with respect to cash executives and cash fans and we believe this will help improve our margins significantly over the next few quarters. We are facing pricing pressures from clients particularly with respect to low volume points. Our efforts to provide alternate cash collection solutions including Business Correspondent Model and InstaCredit are yet to make a dent, though the long term potential from these solutions continues to remain immense.
The focus of our FinTech subsidiary has moved from expanding its footprint of point of sale machines to improving transaction volumes thereon which carries better margins and provides more sustainable revenue streams. We have strengthened our sales teams across all business verticals and launched several new initiatives in sales and marketing to improve the core business volume which will help improve the profitability margins because of the operating leverage. We remain committed to providing transparent updates on our progress and answering any questions that you may have. I will now request Mr. Alexander David to speak about the progress achieved in ASMoney followed by Mr.
Venkatraman to speak about the financial performance and our key performance indicators. It’s over to you Alex.
Alexander David — General Manager – Operations
Thank you sir. Good morning everyone. Thanks for joining this earnings call. I would be presenting the update on Radiant Ace Money. Our Fintech subsidiary Radiance Ace Money reported a healthy growth in revenues of Rupees 212.6 million for this quarter, representing an 89% growth over the same quarter last year. The growth was supported by a sharp increase in onboarding new merchants on its FinTech platform and and also aided by healthy growth in transaction volumes through these merchant establishments. Healthy growth in top line helped Radiant Ace Money generate healthy positive EBITDA of rupees 34 million wiping out significant amount of losses reported in the previous two quarters.
I would like to present a few numbers to put our performance in perspective. We successfully installed over 1 lakh PoS machines in this financial year as informed to the investors during our last analyst call. We also successfully crossed a key milestone of Rupees 1000 crores in transaction volume for this financial year. The focus for the rest of the year and subsequent year would be to significantly scale up our transaction volumes across the various products that we offer through our FinTech platform which will provide us with a sustained annuity revenue model. We are also in the process of developing many of these retail outlets into business correspondence to provide a much wider variety of financial services including accepting cash from our retail cash management business at competitive rates to help grow the core business of the consolidated entity.
A large share of our business come from UP West Bengal, Assam and Odisha where large section of population still reside in tier 3 plus locations with limited access to new age fintech products, providing significant scope for growth over the coming years. We will continue to provide regular updates on the progress of ACE Money to our investors as we scale greater heights in the coming months. I would now request our CFO Mr. Venkat Raman to present our financial performance.
T. V. Venkataramanan — Chief Financial Officer
Thank you Alex Good morning everyone. Thanks for joining on this investor call. Today I will present the company’s key performance indicators and financial performance for the quarter and nine months ended 31st December 2025. During this financial year so far we added 37 new clients and 174 new end customers in our retail cash management business. At the same time we had a drop of 2634 points in the last months. Last nine months mainly on account of loss of three regions of railways, loss of one major e commerce logistic line who got acquired in this period and some loss of points in the micro finance sector.
In this nine month period we handle Rs 1.27 trillion of cash India a growth of 0.3% over the same period last year. As a result, retail cash management business has remained largely flat for this period. Some of the key reasons for the flat revenue performance 1. Growth in E commerce and organized retail were offset by loss of points in railways and Micro finance. Subsegments of BFSI E Commerce logistics segment continued to degrow during this period but though the impact is minimal because of the low share of the segment to revenues, competitive pricing pressure in case of certain high value clients.
On the positive side, the share of direct business continued its growth trajectory and now account for 17% of our cash management revenues has against 11.9% in the same quarter last year and 3.9% the year before. Cashman Operations also continued its growth trajectory and reported 11% 11% sequential growth over the previous year. We have also successfully won a large PSU bank contract for providing dedicated cash fans which will help sustain the healthy growth and profitability in the segment. Our Diamondbury segment since the induction of experience management team has grown at a healthy pace in the top line in this quarter, however, the business is yet to reach breakeven levels because of the high fixed cost structure in this business.
As the current phase of revenue growth continues, the management expects the division to achieve break even in the next two quarters, a slippage of one or more quarter than was conveyed in our lost earnings call. Coming to the financial performance, consolidated revenues for quarter were rupees 1.26 billion representing 18.3% growth over the previous quarter and 6.9% growth over same period last year. Consolidated EBITDA margins for the growth stood at 13.9% and improvement of 80 basis points over the previous quarter. 230 basis points over Q1 of FY26. The improvement in EBITDA margins in this quarter was achieved on account of positive EBITDA in as many our FinTech subsidiary which suffered in the previous two quarters due to a one time vendor displacement shock, second, healthy growth and contribution from our cash van operations and last, the strident cost control measures.
Further improvement in margins are contingent on improvement in the top line growth. The management is taking several measures to grow the core business and is confident of maintaining the trend of improvement in margins in the periods to come. Rarity continues to have very few cash losses from operations well below the industry standards which is a reflection of our strong risk management practices. In summary, the revenue performance for the year has been relatively better due to better performance of our FinTech subsidiary. Though the core business growth remains muted, the EBITDA margins have continued to improve due to strident cost control measures undertaken by the management.
The management is working on several sales and marketing initiatives across all verticals. Direct Sales, dbj, Cashman operations in store credit and our core business of retail cash management. And we believe these measures would reflect better growth and margins in the remaining period of the current financial year. I now hand over the floor for question and answers.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press Star and 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. Our first question comes from the line of Abhishek Chawla, an individual investor. Please go ahead.
Unidentified Participant
Hello, good morning everyone. So very very early on. You said like the cash management business has around hundred or sorry 1000 jewelers to whom you are giving cash management services. So I just wanted to know how many of them have been able to convert to valuable logistics as of now.
T. V. Venkataramanan
I think I don’t have that data ready number of common customers between our retail cash management and daven bullion jewelry segment. But yeah, few large customers are common between both as in organized gold jewelry segment. But the number of customers that we deal with in the diamond bullion jewelry segment are fairly large and many of them are small jewelers individual retail outlets which are yet to be tapped by the cash management services. My own sense is the numbers are not expected to be very large in terms of business that RCMS could direct towards dbj.
David Devasahayam
It’s a good question from you. It’s a good question and we’ll have a look at it as to how many have got actually converted but the corporate customers are now common I like to say that.
Abhishek Chawla
Got it, got it. Because the market size is huge for the jewelry. So let’s see how it goes. And the second question is as per the RBI data the cash in circulation has been good for the last quarter. I’ve heard all your remarks regarding what went in the cash management business. So with this increase in cash in circulation, how do you plan to tap into that? Because for the last two FY’s the core business has been for one or the other reason getting stuck somewhere. But cash in circulation has been rising. So that’s the question.
Alexander David
Well the fact is that the number of points are increasing but in terms of the throughput, particularly in Tier 1 and Tier 2 locations, the throughput is not growing as what it was earlier because of the current aspect of digitization which has also come into play. So that’s the reason why though the number of points have grown, the cost of operations has gone up. But this is something that we are addressing by looking at other alternative areas to further strengthen our core business.
Abhishek Chawla
Got it, got it. And regarding the pricing for the valuable logistics, is it based on the consignment value or is it fixed like the cash management per point basis?
T. V. Venkataramanan
I like to answer that it is based on the weight of the consignment, the volume. It’s based on the volume we move.
Abhishek Chawla
Weight of the volume. So just so that I infer it correctly, the current rally in gold or the precious metals, that does that impact that revenue or not?
T. V. Venkataramanan
Yes it does. Market volatility does impact like if the markets are more stable, our customers do more movements, more shipments, their end customers are buying more stuff from them. So. So yes the market volatility does play a role but we are seeing now that as the markets are stabilizing the moments are really, really on upward trajectory.
Abhishek Chawla
Okay, so just so that I infer it correctly, if gold prices go up, you will, we will not directly benefit from it because your, the pricing you are getting is based on the weight, not the value of the jewelry you are transporting, right?
Alexander David
Yes Abhishek, that’s right. Our pricing will be based on per gram.
Abhishek Chawla
Got it, got it. And just extrapolating from that is if the price is stable, people will move more weight and we will get more revenue. Okay, that’s for now. I’ll get back in the queue. Thank you.
operator
Thank you. Participants who wish to ask a question may press star and one on the touchstone telephone. Our next question comes from the line of Dilip Kumar Sahu, an individual investor. Please go ahead.
Unidentified Participant
Yeah, hi.
operator
Yes sir, you are. But a little more louder would be better.
Unidentified Participant
Yeah, so you know, I, I’m just trying to understand the nature of the business. You talked about competitive pressure in the code business. Now from what I understand there are basically three major players in RCM despite that. And there are a lot of, you know, hurdles in giving business to small and fragmented players. Why is it that this industry is facing, you know, pricing pressure? It’s a fairly, you know, restrictive industry to that extent. So where is the pricing pressure coming from?
Alexander David
Yeah, so it’s a fairly competitive industry that way though there are three as in two Pan India players, there are third and fourth players who are relatively smaller but emerging. It’s a competitive industry. And in some cases the banks also try to maximize value for their customers by getting this thing competing quotes. But see these are very select in few select cases where either it’s very low volume, so where the fixed price contract nature of ours proved to be expensive for their customers or deal level very large number of outlets where they. Want a special pricing. So at the margins the core business is fairly strong and we are able to generate healthy revenues and margins there. But at the margins there is some competitive pressure.
Unidentified Participant
And you think that this competitive pressure will continue despite at least two listed players are not really making a lot of money. Right. The margins have fallen to 1314%. So despite that you assume that the pricing pressure will continue for some time to come.
David Devasahayam
Okay, so I’ll put it differently. If the revenue growth is healthy, it’s a high operating leverage business. Individual, you are conflating two different things. Individual contract level pricing. Some pricing pressures could be be there that doesn’t have a direct correlation on the margins. So the margin improvement is contingent on revenue growth because of high fixed cost and high operating leverage nature of this business. So if the revenue growth gets back to mid teens or high teens, the margins will automatically restore. So that’s what you’re working towards.
Unidentified Participant
Understood. No, the reason I caught up is even at the similar revenue you are making 18, 20%. Anyway, I understood that you know I’m talking about 2003, 2004, 2324. Similar revenue you’re making. Much better.
T. V. Venkataramanan
Yeah, but for a fewer number of points. Right,
Unidentified Participant
understood. Okay, fine. My second question is regarding ACE Money. I’m just trying to understand the. So we have kind of added 20 crores between standalone and consolidated. I’m assuming most of it came from his money. And there is a 10 odd crores of stock in trade. So can you tell me what exactly the revenue component? How much of them are cost and how much is the services?
David Devasahayam
No, inventory is not 10 crore.
Unidentified Participant
I see. One cost stock in freight, one stock.
T. V. Venkataramanan
In post machine cost about 1200 rupees roughly.
Unidentified Participant
Stock in trade amount is there balance sheet.
David Devasahayam
It’S 2 to 2.4 crores. Not 10 crores. It’s 2.4 crores. Inventory of yes, money is 2.4 crores.
Unidentified Participant
Okay, so. So trying to understand is in the revenue line between you know of around 20, 20 crores that you have doing, which is what I am just deducting the consolidated versus standalone and assuming most of it will be ACE money. So what exactly is only. Yeah, so what exactly how. How this 20 crores is coming. How much is pause installation? How much is permission? I’m just trying to understand the nature of the business.
Alexander David
It is relatively business sensitive information. So we may not be able to throw more light on.
Unidentified Participant
Yes, but. But this margin of ACE Money will improve as you go along, right? That’s the assumption I can make. Assuming that as your revenue goes from here onward, you it will continue.
T. V. Venkataramanan
Yeah. So the transaction revenue margins are slightly better than the Boss machine revenues. That’s right.
Unidentified Participant
Okay. Okay. Okay. And. And post machine revenue will be growing at a much lower revenue than the transaction level in medium.
Alexander David
From now on, the transaction revenues we. Are expecting it to improve at a much healthier pace. And we already established a footprint. So post machine revenues may not add much in future.
Unidentified Participant
Sure. And the management talked about initiatives taken in sales and other initiatives to improve the revenue. Can you elaborate what exactly would be. Because what I understand this will be basically tender driven business. The number of customers are limited. What exactly you mean by initiatives taken in phase?
David Devasahayam
Well, the initiatives we have been highlighting periodically in all our earlier calls as well you see there is today the nationalized banking sector accepting one or two banks with whom everybody is working. Most of them have still not started this outsourcing. So now their customers we are looking at being listed entities, we are looking at taking them on as direct customers. Now we all know that nearly 67% of the banking in the country is driven by the nationalized banking sector. So that’s a huge opportunity for us. And you would have seen that from the time of listing where we were at rank around 3% of direct business, we are now close to 17%.
So that’s the area of focus that we are now focusing on. But we realize that when you go directly to the customers it takes a long time before they get empanelled with us. And so that’s why though we were bullish about the speed of growth, it has not taken that kind of the speed. But this is a long term thing and it’s a great opportunity for us in this segment. The other aspect which we have been highlighting is that we have moved a lot towards dedicated cash vans and yesterday in the exchanges we have also highlighted how from a PSU bank we have received a very large mandate which is going to have a positive impact both on the top line and bottom line in the coming financial year.
Additionally, valuable logistics, valuable is a very important aspect. The fact that we have a presence in over 13,000 pin codes across the country. We have last mile connectivity and gradually this business is also moving towards the business to consumer model where it is home delivery and so on. So we feel that there is a great contiguous nature between our existing business and valuable logistics. So this is taking a little more time but these are important seeds that we have planted and we are staying focused on them and in time these will all represent, they have all future growth potential and will be an important part of our trajectory.
And the last of course is the fintech that we have spoken about and which is already, which has given us considerable value in the third quarter.
Unidentified Participant
And Instagram.
Alexander David
Yeah, Instagram.
David Devasahayam
Yeah.
Unidentified Participant
Okay. Okay, thank you so much. And my last question, if I’m going to ask if, when, when it comes to a customer for our core business when compared to the other larger listed player, is there any differentiation the customer makes between say CMS or a radiant or is it purely based on price? Whenever a tender is awarded, at least for the top two, you and cms, is there any differentiation of prices or anything or is it pure L1 price based?
David Devasahayam
Well, we don’t normally like to discuss competition during the course of the call and what we are focused on is what we speak about. Our largest strength is I think in terms of the fact that the entire core is driven by the extra service fraternity that we have. That is a key differentiator. And if you see our cash flows record, it’s the best in the industry. So we would like to further dwell on this aspect. Beyond this, at this point.
T. V. Venkataramanan
Just add one small point. 90, 95% of our business is not tender or L1 driven. It is all individual one on one discussions with the banks. So there is no L1 business for almost all except few public sector banks for these cash mandates. It is all one on one negotiated based on the quality of service they decide and our network strength and the people presence and how soon we can activate those points, etc. It’s complex set of service quality driven factors that determines who gets the.
Unidentified Participant
Great. Thank you so much. It’s very helpful. Thank you.
operator
Thank you. Anyone who wishes to ask a question may press star and one on the Touchstone telephone. Our next question comes from the line of Priyan Srivastava, an individual investor. Please go ahead.
Unidentified Participant
Hello Priya. Okay, so my first question is what is the size of the jewelry logistics business in this quarter and what is the loss in this business and where are you in this journey of business?
Alexander David
See this quarter, our jewelry business, we made about, we made a revenue of about 20 million rupees.
Unidentified Participant
Okay, okay. And where are you in the journey of scaling this business up?
Alexander David
We’ve been seeing sequential quarter on quarter growth of about 30%. So we have put in a lot of measures in place, got a lot of experience management right now. And also we have been making a lot of strident cost measures. And with now the market stabilizing, we are able to, I think we will should be able to hit this run rate over the next coming quarters.
David Devasahayam
This is for us a long term aspiration. And given the fact that there’s very little competition in this market, the strength that we have of our presence across the country and the fact that the infrastructure is so common, we see that this is an important area for our future growth potential.
Unidentified Participant
Okay, got it. Thank you. And my second question is how are you responding to price competition in the core business? Have you also cut rates or are you letting go of the volumes?
T. V. Venkataramanan
It’s a dynamic client to client and customer to customer where we have capacity for execution. There is no straight answer to that. As in any other competitive market, we have been in the business for 20 years. We know how to handle each situation as it comes.
Unidentified Participant
Okay. Good. Thank you.
operator
Thank you. Participants who wish to ask a question may press star and one on the Touchstone telephone. Our next question comes from the line of Abhishek Chawla, an individual investor. Please go ahead.
Abhishek Chawla
So. Yes. So regarding the contract we got from the bank which will be spread over the next three years. I just need to understand the additional revenue. Because 15 crores you are saying is renewal and the difference is additional. So when will that additional we start recurring from the Q1 or it will be like as we open up branches.
T. V. Venkataramanan
No, it is from April 26 onwards. The additional business will come from the next financial year that is April 26 onwards.
Abhishek Chawla
So the employee deployment will start from first April.
T. V. Venkataramanan
No, no. I am just trying to understand the 20 at. At present cash van operations with the bank is let’s say 15 crore. They got the renewal from 1st April 20 crores of new worth of revenue. You will get. Let’s say. Yes. So my interpretation is. Tell me if this is correct. Over the next few quarters one quarter for implementation you will get 20 crores of additional revenue in the. In 2026 calendar year itself.
David Devasahayam
No, see we have got. Now we have got business for some reasons. We have got regions for business for additional regions also. This additional regions will give us 20 crores additional revenue in the next financial year.
Abhishek Chawla
Okay, so. Yeah, I got my point. So in the next financial year we’ll be able to tap the 35 crores and then it will stabilize for this particular bank for once.
Alexander David
That’s right. Yes.
Abhishek Chawla
And regarding the Fintech subsidiary, there is no doubt it has been growing and everything is going. But I see some leveraging going on with the fintech. Like what it needs exactly the leveraging or the funds for constantly. Could you just throw some light on that? Because we are giving corporate guarantees or giving it loan. So just need to understand the cash requirement for the fintech.
Alexander David
Yes. See, we are aware that their borrowings are slightly on the higher side. Because of slight delay of getting the receivables from RBI by May 26 or by June 26 which is three months from now. Their borrowing should come to a manageable level.
Abhishek Chawla
Okay.
Alexander David
Once you get the third quarter receivables from Reserve bank of India.
Abhishek Chawla
Okay. And these receivables are considered to be good or there is some doubt in these.
Alexander David
No, it’s a subsidy from Reserve bank of India. The sovereign guarantees that.
Alexander David
Okay. It’s government guarantee. It could be delayed. But now it can’t be denied. That’s what. 95% of the dues are from RBA.
Abhishek Chawla
Oh, got it, got it. Okay. And I know the intentions are very clear for the management to focus on Tier 3 for the POS machines and the volumes and everything. And just I’m just asking from curious mind, do you have the. You have such a big Clientele in tier 1 cities also for cash management, have you explored the idea of even trying to push your POS machine where there is already high volume? Because let’s say if I go to a petrol pump or anywhere else they have multiple POS machines. So have you tried that segment or you have just struck it off completely? For complete focus, I just want your thoughts on that.
David Devasahayam
See, currently 67% of our revenues come from Tier 3 plus locations. And as an organization we stay focused on these underserved areas of India, extreme hinterland. So that is consciously our objective. And therefore, you know, here there are a lot of competition, also competitive pressure, that relatively is a blue ocean. So we are focusing more on those areas.
Abhishek Chawla
Got it, got it. And my last question is the vaults we have. Currently we have 12 volts as per the presentation. So the same vaults will, will be used for the jewelry business as well.
Alexander David
Yes, there are. We are to. For our existing infrastructure, we’re using for our DBJ business as well. That’s correct.
Abhishek Chawla
Got it, got it. And the safes and vaults, could you just differentiate what is the difference between a strong room safe and vaults?
M. Muthuraman
Yeah, it’s a defined term by RBI as in 50 lakhs, 5 crores and 50 crores capacity.
Abhishek Chawla
Got it, Got it, got it. Thank you. That’s all from my side. Thank you.
operator
Thank you. Anyone who wishes to ask a question may press star and one on the Touchstone telephone. Our next question comes from the line of Sudeep Samantha, an individual investor. Please go ahead.
Unidentified Participant
Hello, David Sir.
David Devasahayam
Hello. Good morning.
Unidentified Participant
Yeah, good morning, sir. Sir. Ace1 is doing great this quarter. So great execution. Any guidance you guys give this quarter, the next quarter? As far as Aceman is concerned.
David Devasahayam
We. Are looking at the next quarter. But then we have moved our focus from the current cost machines that we are deploying towards transaction revenue which is the focus for the future. So as you would have also seen the end of in November this year, we have also applied for a payment aggregator license. So the fact that we have a presence, particularly in the extreme hinterland and such a strong presence, we are hoping to be as an entity facilitating the digital growth in these areas based on our existing infrastructure. So it’s important that we should now move our Focus.
Having deployed over 1 lakh PoS machines towards transaction revenue.
Unidentified Participant
Now we achieve 1 lakh. So any target like next six months it would be 2 lakh or 150. Because you guys are doing great job. As far as money is concerned.
David Devasahayam
No, that is not accurate. We don’t have any such targets for the future.
Unidentified Participant
Okay. Thank you.
operator
Thank you. Participants who wish to ask a question may press star and one on the Touchstone telephone. Our next question comes from the line of Chandramouli Jagannathan, an individual investor. Please go ahead.
Unidentified Participant
Hello sir. Last quarter Concoi was talking about this year path. You’ll be able to achieve the kind of last year number. But the way in which it is going right now I think it is very difficult for you to do that. Because will you be in a position to still do it? Achieve it?
T. V. Venkataramanan
We are working towards that. But that could be some drop in in the for the current year and compared to the last year. P80.
Unidentified Participant
Okay, just now saying that the ACE money we are not targeting about the POS machine. I mean say you are only looking at the transaction value. That is great in the long run that is the case. There will be a drastic and revenue drop in the your subsidiary as well. Because this quarter you have done about 20 crores. So if you are not sending POE as machines then that the revenue will get dropped drastically. If my understanding is correct.
T. V. Venkataramanan
Yes, that could be some drop in the. Yes, many revenue for in Q4.
Unidentified Participant
Okay, so the drop in revenue is fine. But how will it be the EBITDA level? Will you again incur a loss or will still be profitable because your transaction revenue gives more profit?
Alexander David
We are working towards achieving break even in Q4.
Unidentified Participant
What about the Labor Code provision which all of the other corporates have kind of given a provision but which you have not done.
Alexander David
See our salary structure, the Labor Code mainly states basic salary should be at least 50% of the gross salary. Our salary structure is by and large aligned with the new provisions the Labor Code. So there is no material impact due to the change in the Labor Code. For us there is some impact. Amount is marginal and not material.
Unidentified Participant
Oh, if I can choose one more. How will at least be next year Or I mean the medium term. Will you go back to the previous EBITDA level? Are you working towards it?
David Devasahayam
We have to. We have made conscious decisions that we have to focus on future growth and future growth. Besides, we were only on retail cash management for a long duration of time. And now we are diversifying to multiple areas which will take time for them to achieve their respective growth potential. And that is going to be going to have an impact and build a certain amount of adverse impact on our margins. But we are conscious about it and we are moving in that direction.
Unidentified Participant
Again, I do. The previous participant asked about that. The new wing which you have got it through IDBA, where you mentioned 35 crores, but there is again a confusion that 35 crores. Will you be able to do it in the next financial year or over the period of three years?
David Devasahayam
No, because. It is applicable per year, this amount. And as is now required, we have to declare these material provisions in the stock exchanges which we have done. And these are additional regions that we have now got, you know, from this particular BSU bank. And it’s going to have a positive impact of about 20 crores in the next financial year.
Unidentified Participant
Okay. Okay. That’s. That’s awesome. Thank you.
operator
Thank you. Participants who wish to ask a question may press star and one on the Touchstone telephone. Anyone who wishes to ask a question may press star and one on the Touchstone telephone. Ladies and gentlemen, as there are no further questions from the participants, I now hand the conference over to the management for closing comments.
Unidentified Participant
Thank you, Raju. I must compliment everyone for the wonderful questions. Thank you for having asked them and we have tried to answer them to the best of our ability. The performance for the quarter is muted because of losses in our new initiatives of RVL and ACE money and pricing pressure in our core business. The management is conscious of its commitment to its shareholders and we are taking several measures to grow the business and improve profitability. With renewed focus on sales initiatives across all the verticals and strident cost reduction measures, we are confident of improving the performance in the ongoing financial year.
I want to express my gratitude for your continued support to Radiant. We are confident that our continuous efforts will yield promising results for all stakeholders. Thank you for your time and for your continuing interest in our company. Thank you very much.
operator
Thank you on behalf of Antique Stockbroking Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines.