Radiant Cash Management Services Ltd (NSE: RADIANTCMS) Q4 2025 Earnings Call dated May. 26, 2025
Corporate Participants:
Unidentified Speaker
David Devasahayam — Chairman, Managing Director
Alexander David — Corporate Director – Operations & Business Development
T.V.Venkataramanan — Chief Financial Officer
Muthuraman — Director of Strategy and Investor Relations
Analysts:
Unidentified Participant
Rushil Dedhia — Analyst
Vikas Kasturi — Analyst
Abhishek Chawla — Analyst
Khushi Pari — Analyst
Sanjeev Damani — Analyst
Rishikesh — Analyst
Presentation:
operator
Going to the conference. The conference is now being recorded. Foreign. Ladies and Gentlemen, good day and welcome to the Radiant Cash Management Services Q4FY25 earnings conference call hosted by Antique Stockbroking. As a reminder, all participant line will be in listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Start and zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Rushil Dehadia from Antique Stockbroking. Thank you and over to you Sir.
Rushil Dedhia — Analyst
Hi welcome everyone to the Q4FY25 earnings call of Radiant Cash Management. Today with us we have the management of Radhink, we have Colonel David Davison, the CMD sir, we have Mr. T.B. venkataram, CFO, Mr. Alexander David GM General Operations and Mr. N. Muthuraman, Director and Strategy and IER. We hand over the call to MD sir for his opening remarks post which we’ll start the Q and A session. Over to you MD Sir.
David Devasahayam — Chairman, Managing Director
Good Morning Rasheel. Thank you for that. Good morning ladies and gentlemen. Thank you for joining us today for Radiant’s investor call. We are happy to report a stable performance for this fiscal year ended March 31, 2025 with a 10% consolidated revenue growth, 12.5% consolidated EBITDA growth and 5.8% consolidated PAT growth over the previous year. The key highlights for the year are A strong thrust to improve direct business which now accounts for 15% of our revenues up from 5.2% last year a healthy growth of 40% in revenues from Cash Van operations with significant potential for further growth Launch of Radianinsa Credit during the year which has been well received in the market and opens up a much larger target market for our services.
Turnaround in the performance of Radiant ace Money, our FinTech subsidiary, within 18 months of our acquisition, Ace Money now accounts for about 6% of our consolidated revenues and the EBITDA of the company. Improvement in the Performance of Radiant Valuable Logistics Though this vertical is yet to achieve breakeven, we have also taken several initiatives and operations to help and sustain performance in future years. These include strengthening the sales teams across all business verticals and launching several new initiatives in sales and marketing Several cost reduction measures which has helped improve core operating profitability Strengthened our risk management practices with the support of technology which has helped maintain our cash losses at negligible levels Improved cross functional collaboration between various business verticals which help harness better synergy benefits in the current financial year.
At the same time, the external environment has been challenging during the year. The sluggishness in the consumption sectors in the economy had its impact on the core business of retail cash management. Headwinds faced in a few sectors in bfsi including microfinance and personal loans also had an impact on our revenues from this sector. The consolidated EBITDA margins showed marginal improvement from 17.51% in FY24 to 17.91% in FY25, largely on the back of cost control measures taken by the company and reduced losses from RVL and a turnaround in the performance of Radiant Ace Money. Our cash losses continue to be the lowest in the industry by a wide margin, a result of our robust risk management framework.
We continue to maintain healthy return on capital employed and return on equity. 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 Radiant Race Money followed by Mr. Venkatraman to speak about the financial performance and KPIs. It’s over to you Alex.
Alexander David — Corporate Director – Operations & Business Development
Thank you so much sir. Good morning everyone. Thanks for joining this earnings call. I will be presenting the update on Radiant ACE Money, our fintech subsidiary. I’m glad to inform you that Raided ACE Money had an excellent year and clocked rupees 219 million in revenues for the year, up from rupees 34.8 million the previous year. The rapid scaling has achieved healthy ebitda margins of 20% plus for the year, contributing significantly to the overall consolidated performance. Of the Radian Group. I would like to present a few numbers to put our scale of growth in perspective. We have installed 64,228 POS machines in the last financial year and have set an ambitious target of 90,000 machines for the current financial year. Our transaction volumes in the last year crossed rupees 586 crores, establishing ace money as a reliable player in the fast growing fintech market. Our key USP and Right to Win in this market are a strong Pan India network presence with stronger focus on rural areas where fintech presence is still in early phases of growth. A strong technology platform offering a wide variety of solutions including AEPs based cardless transactions, DMT standard deposit withdrawal offerings, micro insurance and many others.
Our ability to provide cash replenishment for micro atms in remote and rural locations which should be a key advantage as volumes in the micro ATMs scale up over coming years. I’m happy to inform you that we have recently achieved PCI DSS certification. This milestone reflects our unwavering commitment to safeguarding data and providing highest level of security or payment transactions. We are continuously expanding both our geographical footprint as well as service offerings to address the untapped markets in rural areas where digital access is still below 50% for merchant outlets providing Huge Opportunities for growth While the focus of the previous year was to expand our footprint of POS machines and creating our own BC network, going forward, our focus would be to improve the transaction volumes in each of our outlets for sustained growth over the medium term.
The current financial year is quite promising both in terms of revenue growth and profitability. 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 us on this inverstor call. Today I will present the company’s key performance indicators and financial performance for the year ended 31st March 2025. During this financial year we added 86 new clients, 456 new end customers and 8,048 new retail touch points in our retail cash management business. Of particular alliance is the sharp increase in new end customers which grew from 104 last year to 456 this year reflecting our sustained progress on adding direct lines during the last quarter we handled rupees 0.41 trillion of cash representing 2.3% over same quarter last year.
For the full year FY25 we handled 1.68 trillion of cash. Today we serviced close to 78,000 touch points covering approximately 14,000 pin codes across 8,900 plus locations and continue to have the widest network in the industry. For year one 31st March 25th, the consolidated revenue grew at 10.6% over the same period last year. This growth is lower than historical trajectory on account of sluggish consumer demand as well as challenges faced in micro finance and personal Logan segments of the BFSI sector. The degrowth in our E Commerce logistics sector also contributed to this muted top line growth.
On the other hand, organized retail, E Commerce and others reported healthy growth. In. Terms of segment performance. We witnessed healthy growth of 40% in the Cashman operations segment. Revenue from direct lines also grew healthy and now contribute to 15% of our standalone revenues as against 5.2% last year. Our DBIG DBJ segment is yet to stabilize and reported a marginal degrowth in this quarter. Sequentially the management has redoubled its sales as well as cost reduction efforts and expecting them to stem the losses in this quarter. Coming to the financial performance, our Consolidated revenues for FY25 are rupees 4334 million representing 10.6% growth over last year. The consolidated margins for the year ended stood at 17.8% and improvement of 31 basis points over the previous year.
The improvement in EBITDA margins in this year were achieved on account of strong focus on cost control. Number two healthy positive contribution to EBITDA from ASPANI, our FinTech subsidiary. 3. Healthy growth and contribution from our Cashman operations. The management is confident of further improvement in margins in the current year as well. The consolidated return on capital employed for the year was 17.1% and the return on equity for the year was 17.2%. I would like to highlight that the ROCE and ROE for Radian continues to be healthy because of a strong and clean balance sheet, very low cash loss levels, high fixed assets turnover ratio and strong working capital management.
In summary, the revenue performance for the year has been muted due to macro factors of sluggishness in the economy as well as company specific factors highlighted earlier. Despite neutral revenue growth, EBITDA margins have improved due to student cost control measures undertaken by the company. At the same time, several sales and marketing initiatives have been taken across all verticals. Direct sales, dbj, Cashman operations in stock credit and our core business of retail cash management. And we believe these measures would reflect in better growth and margins in the current financial year. I now hand over the floor for question and answers.
Thank you everyone.
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 their touch tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Vikas Kastori from Focus Capital. Please go ahead.
Vikas Kasturi
Good morning moderator. Am I audible?
operator
Yes, sir.
Vikas Kasturi
Yes. Thank you. Good morning, Colonel. Good morning. Entire team of Radiant. Sir, I had a couple of questions, so one is could you please lay out the roadmap for rdl? What? I understand that we are scaling back on certain investments, but could you just throw some light on where you see this, let’s say five years from now and what are the investments that you’re making and what are the investments that you’re cutting down some idea on that. And the second question I had was on so there is this payments bank, Pinot Payments bank and in their earnings call they have said that their cash management, their CMS related product and service they are seeing lower traction on that.
And they’ve also stated similar reasons such as the pain in the MFI industry. Right. So my question to you sir, is it like are we also seeing some. Are we likely to see a bounce back in our CMS related offerings? And the other thing that they’ve said is that UPI is an aspirational product for a lot of people. And so the switch from cash to UPI is happening even at the tier 4, tier 5 kind of locations. So your observations from what you have seen on the ground would be helpful. Sir.
David Devasahayam
Thank you very much. I’ll request the head of strategy Muthu to take on this.
Muthuraman
Thanks Vikas. I’ll answer the second question first which is that on the cash management whether the disruption in the microfinance sector is it going to have a serious headwinds. It is not a very large portion of our thing. So the total BFSA segment for US is about 33% of our revenues of cash management revenues. Within that microfinance is not a very large segment. Having said that the industry Sadhan has put out expectation that they expect the industry to bounce back and worst is behind them and they expect about 15 to 17% growth in the industry area in the current year after a shrinking of about almost 20% last year.
So we believe the MFI related challenges. Are. Behind us and we do see better performance funds from that subsector in the current year. Yes, UPI is an aspirational product but as you can see the continuous growth in cash in circulation I think it’s already crossed 37 lakh crores. Indicates that cash will continue to be a dominant mode of payment in rural areas. As we realized in our ACE Money subsidiary more than 50% of the retail outlets do not have any form of digital payment mechanism yet. So that is the opportunity for growth for ACE Money. At the same time indicates the level of penetration of digital payments in the rural areas.
So we don’t expect any headwinds on growth because of growth in UPI as well. Coming back to the first question on rvl.
David Devasahayam
Yeah, I think I’ll take on. Okay. So now valuable logistics. As of now there are only one or two serious players in the market as on date. There is definitely scope for one or two more players to come up. And as we have said there are over 1 lakh 35000 registered dwellers the country and these two players are themselves target are currently only servicing about 20,000 to 25,000 dwellers. So it’s a, it’s a huge opportunity for us. However, as we go to the market and now we are talking about valuable or distributing. So that means the consignment value is very high.
So it’s going to take some time. Before. You know, the traction actually happens and we start getting larger and larger consignments and we are willing to be there for the long road, for the long haul. And the other thing I want to point out is that before you start with the first consignment you already need to have the full infrastructure across the whole country because wherever you require, they require to send the thing we need to the consignment, we need to have it. So these are the reasons as to why there is some amount of cash burn and that which we’re not unduly concerned about and we are gradually moving quickly towards a breakeven situation in this quarter or in early next quarter.
So that’s the target for us. This is a long, long term strategy for us and we are very deeply committed to it.
Vikas Kasturi
Thank you. Colonel, if I may just request, the operational numbers that you put out for the cash business is fantastic, sir. Could you start sharing similar numbers for the jewelry business also the RVL business which is in terms of let it tons of DBJ that you’ve moved or something like that, which will just give us some idea that the business is progressing. That is just a request, sir.
Muthuraman
Suggestion noted because it is not material today. It is 1% of our revenues, just about a percentage of revenues. So you’re not given this thing but suggestion taken on board will. We’ll see what we can do.
Vikas Kasturi
Thank you sir.
operator
Thank you. The next question is from the line of Saqir Nasir who is an individual investor. Please go ahead.
Unidentified Participant
Sir. Good morning and I think congratulations on a decently healthy set of numbers considering last quarter there was a drag in the economy as a whole, sir. Colonel, I appreciate your thoughts on the valuable business sir and I would a little more of your thoughts on this going forward next three years. How do you see this valuable business panning out and what kind of margins do you expect? And also number two is what broadly what kind of loss did you do in the business in the current year which may not be there in March 2026, sir.
Thank you.
Alexander David
Well, we definitely will have no loss in March 2026. That’s the target that we are currently looking at. And with regards to your question of the next three years, my hope is that gradually at least it will contribute to about 20 to 22% of the overall revenue will come from this business. I’m talking about the third year from now. So. But we are deeply committed to this area. It’s one of the areas that we are looking at very closely because it represents, you know, I mean valuables are something that is. That’s so deeply appreciated and which is always showing so much of growth in the Indian economy.
So we are very deeply committed to it in the long term.
David Devasahayam
Zaki, if I may add a few points, every global player has a very strong presence in the valuable logistics segment and it contributes significantly to their revenue as well as as bottom line. And in fact India being the largest, fastest growing and largest market for gold anywhere in the world, there is no reason why we should not have a reasonable presence in this market. We are getting our acts together and being a listed company, we are little cautious in going ahead and splodging big amounts on events, exhibitions, advertisements, etc. So going it in a calibrated and deliberate manner.
You will see the results of it over a period of time.
Unidentified Participant
I mean March 25th, what kind of loss with the valuable business make sense.
David Devasahayam
Will not be able to exactly pinpoint that because many of those are joined this thing as in some of them are many of many costs are common. For example, Vanguard drivers are used between both put together but if you have to so they’re not putting out an exact number there because it will not be appropriate as in we have not done the scientific costing appropriation between RCMS and RVL but the direct cost etc. It is. It will be contributing maybe about 5, 10% of our profits would have been affected because of that.
Unidentified Participant
And sir, to add would valuables definition of valuables only be subject to a jewelry kind of or gold items or can it be industrial valuables like microchips and stuff like that? I mean would it have a broader connotation? Sir.
Alexander David
Currently we are looking at the diamond bullion and jewelry markets. That’s what we are focused on.
operator
Thank you. The next question is from the line of Abhishek Jawla who is an individual investor. Please go ahead.
Abhishek Chawla
Hello. Good morning everyone.
operator
So sorry to interrupt. Sir, I would request you to please use your hand, sir.
Abhishek Chawla
Hello. Good morning everyone.
operator
Yes sir, you’re
Abhishek Chawla
morning. Our business is structured whenever there is a dip in our revenue a decent chunk of that is taken out of the operating Profit so this Q4, our revenue around 6 months.
David Devasahayam
Not clear. We can’t follow. Can you speak a bit?
Abhishek Chawla
Is it better now?
David Devasahayam
Yeah, please go ahead.
Abhishek Chawla
Yeah. So the way the business is structured, whenever there is a dip in revenue, a decent chunk of that dip is taken out of the operating profit. So this quarter the dip in revenue was around 6.6 crores while the operating profit only dipped by 3.4 crores. So I feel the decrease in revenue has not fully impacted the operating profit in absolute terms. So could you just share the method which helped you save this?
Alexander David
No. As we mentioned, as Colonel mentioned in the opening remarks as well, we are taking strident cost control measures. Okay, so that is one reason. Second is that we are. The Interdivision collaboration has become lot more robust now between RC, RVL and RCMS and InstaCredit and all of that. So that has also helped improve our operating efficiency. So that’s why despite a muted top line growth, in fact, sequentially a drop in top line growth, we are able to report a slightly better improve EBITDA margins for the full year vis a visa previous year.
Abhishek Chawla
Okay, so earlier you said the jewelry business will have a standalone network of itself. So now is it fair to assume that you are using the operational leverages or the efficiency leverages that you had? You are using them right now.
David Devasahayam
That’s right, yes.
Abhishek Chawla
Okay. And the second question is, as for RBI data, the micro ATM number is marginally declined. So what’s happening in that space?
David Devasahayam
See, there are some small disruption in equipment availability that may have affected, but otherwise that industry is huge. This thing as in untapped market debt. So I think RBA itself has put out some very lofty goals for the numbers to be achieved and they’re backing it up with strong regulatory support as well for that.
Alexander David
The strong presence that we have, particularly, you know, in the extreme areas of the country where the deployments are relatively thin, we are leveraging that and those are the areas that we are concentrating on.
Abhishek Chawla
And lastly, the POS machine which we have distributed till now for this fy, how much of them are still operational? Like out of the 60, approximately 65,000 distributed. What percentage is like still active or. Some of them have this abandoned pos. You have the numbers on that?
David Devasahayam
No, no, no. All of them are operational. I don’t think there is a. There is attrition in that at all. I mean these are just. During the year we have added the 64,000 machines. We do not have any information on attrition. Our aim is to get adequate Transaction volumes in each of those. Yes, that varies by wide volatility. There are some which do no transaction at all. But some will do huge number of transactions. But our aim is to get all the, all the machines to get transacted so that transaction volume is a lot more sustainable than the POS revenue.
operator
Thank you. The next question is from the line of Gurjot Aluvalya who is an individual investor. Please go ahead.
Unidentified Participant
Yeah, hi, good morning, can you hear me?
operator
Yes, sir.
David Devasahayam
Yes please.
Unidentified Participant
Yeah, thanks for the opportunity. So, first thing I wanted to know is around the EBITDA margin.
operator
Sorry to interrupt, we were not able to hear you. I would request you to please repeat your question.
Unidentified Participant
Can you hear me now?
David Devasahayam
Yes, yes, yes.
Unidentified Participant
Through FY19, FY20, FY21. I was looking at the EBITDA margins, right? So the big time margins were always above through all those years, even the first year of the ipo. Right. But since the last couple of years there’s been a huge drop in those margins. And I know there have been investments into new line of businesses. But then what is the expectation that these EBITDA margins could revert back to those 25% kind of levels? Right. Or this is the new normal and we are not expected to head there anytime sooner.
David Devasahayam
Yeah, see our EBITDA margins is a direct function of our operating leverage. So if you see the same period, the historical revenue growth has been fairly healthy. Different reasons that we highlighted. The revenue growth is muted. So the way our business works, it’s a fairly high fixed cost structure of vans, guards, drivers, employees, etc. And then incremental points added in the route add significantly to the bottom line. So the muted revenue growth, for example this quarter because of the MFI and personal loan crisis means that our revenues are growing at a lower rate than our cost.
Ideally, any growth in revenue above our cost growth rate, which is inflation related growth, 8, 9%. Any revenue growth above that will add significantly to our bottom line. So our aim is to get the revenue growth at mid to high teens which will automatically translate to much better EBITDA margins from where we are today.
Unidentified Participant
Okay, but is there any.
David Devasahayam
We’ve not put out any specific guidance as yet.
Unidentified Participant
Okay, fair enough. Thanks. That was my question.
operator
Thank you. The next question is from the line of Khrushi Pari from Bugglerock pms. Please go ahead.
Khushi Pari
Yeah, hi, Khrushi Parekh here from Google Rock pml. I have one question and pardon me, I have not gone through your earlier. Can you help me understand what are. The key operational differentiation that we have as a result of which we enjoy one of the lowest cash loss percentages as compared to say, maybe other players in the industry? And what are the key operational differences that we do that others are not able to replicate?
David Devasahayam
Well, I think this is clearly dealing with our operations. And all I can say is that we have a very strong ex service setup which is there. And integrity is a very important part of the organization as a consequence. And so our fidelity, losses and all are negligible. So it’s more a culture in the organization where we look upon it as a. You know, each region looks upon it as something to be very upset about in case there is a cash. And so it is. It kind of got ingrained into the culture over the last decade and a half.
Khushi Pari
So one of the key attribute that you would assign to is that the. Integrity, the culture that we enjoy within the organization and of course beyond that. Operational efficiencies are there for sure. Would that be correct assessment?
David Devasahayam
Yes. And also every region wants to do well and wants to prove. So they really, really focus on the process and procedures and the fact that the essential bedrock or the. The intrinsic structure of the organization is largely ex service in nature, that has helped us a great deal.
Khushi Pari
Okay. Okay, that’s helpful. My second question is that now that we have about 15% of our business through our direct approach versus coming from the bank, what is it that the company has? How is the company structured and how. Is it approaching the entire space now that we are approaching to the customers directly? And what kind of solutions are we. Offering which we have not been able to offer earlier?
David Devasahayam
Currently, you see, the thing is, the nationalized banking sector, by and large, nearly 67% of the nationalized banking sector has not so far got into this kind of outsourcing. But all their end customers are in need of the support and services. So therefore, now our target is to target these customers and see as to how many of them we can now recruit or enroll them as a direct customer. That’s the reason why we are seeing this kind of growth.
operator
Thank you. The next question is from the line of Sanjay, who is an individual investor. Please go ahead.
Unidentified Participant
Yeah, hello. My question is with respect to any strategic acquisition we are looking at like.
operator
Sorry to interrupt, sir. I would request you to please use your handset. Your audio is not clear.
Unidentified Participant
Hello. Am I audible?
operator
Yes, sir.
Alexander David
Yes.
Unidentified Participant
Yeah. Strategic acquisitions. We are looking for, for example, ags, transact technologies, which is, you know, in a severe adulthood. Are we looking at such kind of Strategic acquisition of companies which would, you know, improve penetration, market penetration. Thank you.
Alexander David
We are always on the open for looking at acquisitions that fit into our overall larger scheme of things. But not looking at any stressed assets. We are looking at as in the way we have done our ace money acquisition. It has proved to be a very healthy return on our investment. So we are open for looking for acquisitions but in a fairly calibrated manner.
Unidentified Participant
Thank you.
operator
Thank you. The next question is from the line of Sanjeev Damania from SKD Consulting. Please go ahead.
Sanjeev Damani
Hello. Good noon to you, sir. Am I audible?
operator
Yes, sir.
Sanjeev Damani
I want to know that how the month of April and may have progressed towards acquisition of newer client or increase in the businesses. And because the cash carrying is getting reduced then is it likely to be a trend because we are moving for digital payments and all that. So is it likely to get reduced in the days to come? I want to know from you, sir.
David Devasahayam
Well, UPI and digital payments is definitely a factor. But we are largely based on the cash in circulation. The cash in circulation is a healthy about 36 to 37 lakh crores as of now. So you must always look upon them as two parallel streams of transactions. There will be digital transactions also and cash transactions also parallelly happening. So I can only say one thing that April. April numbers have been better than our March numbers. And March was the last month of the year, financial year. So the positive trend that there has been an increase has been very heartening.
Sanjeev Damani
In the current year. Sir, in terms of collecting cash or movement of costly goods as courier services. Sorry, we didn’t follow your question. Can you repeat please? Have we acquired newer customers in the current year which can enhance our business?
Alexander David
Yes, it is. It’s a continuous process. Every day we add new points and every every month we add new customers. It’s a continuous process. Yes, we are adding.
Sanjeev Damani
Okay. Okay sir. I understood this way that we also carry costlier goods as a courier service. So is my understanding correct, sir, about our company?
Alexander David
Yeah. We do carry diamond, gold, silver and the jewelry and bullion as a service that was started about one and a half years back. And it’s a small, very small portion of our revenues. Less than about 1% of our revenues are from non other than cash.
Sanjeev Damani
Okay. So can this become a big business in phase two? Come, sir.
Alexander David
Yes, yes. Hundred percent. That business is fairly large and in fact bigger than the cash management business in terms of industry size. So it can become fairly large. And are we really orienting ourselves for acquisition of most customers like Titan or You know, other jewellery companies.
David Devasahayam
Yeah. We are looking at many corporate customers also parallel along with medium and small cell dwellers as well. So corporate customers are definitely a part of our targeted marketing.
operator
Thank you. The next question is from the line of Rishikesh from Robo Capital. Please go ahead.
Rishikesh
Yeah. Hi. Thank you for the opportunity. So my question is what has to. Happen for us to grow at high. Teens and do we see such level. Of growth rate in FY26 onwards?
Alexander David
Yeah. So we are taking several sales marketing initiatives as well as adding more banks to our portfolio. So the market is fairly large. The number of retail outlets that is eligible to use a service of this nature will be in the order of 50 lakhs in our estimate. And all the players put together hardly cater to 3 lakhs. So we do have a fairly large untapped market. It is not yet as an outsourcing of cash handling has not been mainstay offering by banks and it is positioned as a premium value added service. We are trying to break that and offer this at really low cost to the customers.
The cost could be as low as 2,000 rupees per point per month. It can start from as low as that. So we are trying to break that premium mold to make it universally acceptable. Every customer can start using this, every business customer can start using this. And we have a wide variety of product offerings. If there is a single outlet they can use instacredit. If it’s a chain outlets, they can use our two step banking. And if it’s the Pan India outlet, they can use our network, cash management services, etc. So wide set of offerings so that we can cater to every type of client and market potential is huge.
So we are expecting that the growth rate will be fairly healthy in the current year.
Rishikesh
Okay, so what sort of growth and. EBITDA margins do we see in FY26? Basically, if I have to see last many quarters, we have been growing our touch points. But then our revenues have been fairly in a flattish range. So thus that is where I’m coming from.
Alexander David
Yes, we have given a guidance, longer term guidance, not specifically for FY26 of mid to high teens in revenue growth. And that should help us improve the EBITDA margins much better because as I said, it’s a high operating leverage business. Not put out any specific target number yet on the revenue and EBITDA for FY26.
Rishikesh
Okay, no problem. Thank you.
operator
Thank you ladies and gentlemen. You may press star and one to ask a question. A reminder to all the Participants that you may press star and one to ask a question. The next question is from the line of Chandra Molly who is an individual investor. Please go ahead.
Unidentified Participant
Hello sir. You are talking about the logistics. Where the transaction volume is sustainable. Is the incremental revenue comes from the transactions or only the POS machine? Where do you charge something and you get the revenue out of it.
Alexander David
Hi Alex. Here on the Ace money, the POs when we give the device to the customer, that’s just a one time revenue. But after that all the transaction volume which happens with that device, that is the actual revenue.
Unidentified Participant
So you, you have incremental revenue based on the transaction, am I right?
Alexander David
That’s correct.
Unidentified Participant
Okay, okay, okay. And you’re talking about the growth. You don’t want to comment on the growth but earlier you were saying about the mid to high teen growth over the period of next to three to five years at least is that plan is intact?
Alexander David
Yeah, I just now commented on that same thing. We have not put out a specific number for FY26 but midterm growth of high mid to high teens is very much on course. 15 to 18% growth in top line CAGR over the next three years is very much on course. That’s our target that we work with.
Unidentified Participant
Okay, thank you. That’s all from my answer. Thank you.
operator
Thank you. The next question is from the line of Abhishek Jawla who is an individual investor. Please go ahead.
Abhishek Chawla
Regarding the valuable logistics, as Colonel sir mentioned that we need an upfront infra to have the clients. So now my question is how much, what percentage of that infrastructure has been deployed? Like are we looking to have more infra or it’s like done in the last six quarters.
David Devasahayam
With regards to the interest, actually the advantage we have is that we already have quite a bit of that interest sector which is concurrent along with the cash logistics infra sector but also specific with regards to software that is required or specialized vehicles which are required. So we do require that kind of infrastructure. We are focusing on certain sectors as of now abroad. So where the traction is already being seen and thereafter then we’ll we’ll move into a completely Pan India kind of configuration. So we are focusing on what we call certain specific lanes of attraction that we are looking at right now.
Abhishek Chawla
Got it, got it. So the infra is ready for a certain segment like you mentioned, like the key hubs of jewelry. If that works successfully in the coming quarters, then you will deploy more for pan India network. Did I get that correct?
David Devasahayam
Absolutely, you’re right.
Abhishek Chawla
Okay. And regarding The Cash wan operation like that has grown tremendously. So what is your going forward plan for this with Cash Van?
David Devasahayam
Cash Van is again a very important segment and currently There are the 7 to 10,000 cash funds currently deployed all over the country. So it’s a huge opportunity that we are looking at right now and it also gives us a decent return on investment. So we are looking at particularly the new contracts which are coming up and this is one area where you will see a lot of growth in the coming years.
Abhishek Chawla
Thank you.
operator
Thank you. The next question is from the line of Sudeep Samantha who is an individual investor. Please go ahead.
Unidentified Participant
Hello sir.
David Devasahayam
Hi. Hello.
Unidentified Participant
The cash balance in our book end of FY25 like March 25th. What is the cash balance?
Muthuraman
Cash balance. We have about 80 crores of cash balance.
Alexander David
It is. Yes. 80 crores. 80 crores.
Unidentified Participant
Okay. Money revenue this quarter, even last quarter you guys are doing like 15, 17 here. So this quarter.
Muthuraman
S money this quarter. Yes, money. The full year is about 22 crores. Yes, that’s right.
Unidentified Participant
Last quarter you guys say like 15, 17 crore.
Muthuraman
I think it was for the nine months. Nine months. 13 crores was for nine months and 21 crores is for the full year. 22 crores for the full year this quarter.
Unidentified Participant
Yes. Money did the revenue of about 5.5 crores. 5.5. And going forward what is the future about? X Money. It would, it would be growing like that only or like slowly, gradually. It would be.
T.V.Venkataramanan
Oh no, it we are expecting. So we have a target of almost 90,000 machines. A target of a very, very ambitious transaction Volume. Volume. So it’s going to be much higher. Than the guidance what we predict.
Unidentified Participant
Second thing, like our core business every quarter we say we we have to achieve more than 20% EBITDA. But still we are lagging. Still we are have 17, 16 EBITDA. So going forward at least we hope we can achieve more than 20. Isn’t it sir?
David Devasahayam
Absolutely. That’s the aspiration and deeply loyal to our shareholders and looking at it. So that is definitely the aspiration.
Unidentified Participant
Okay, thank you so much sir.
operator
Thank you. The next question is from the line of terrier from North East Broking. Please go ahead.
Unidentified Participant
Hi, good afternoon sir. And all the members on the call. So sir, what I understand is majority of the gold and valuables are imported. So now suppose if a consignment has arrived at the Vishakhapatnam port and now there’s a retailer who has to deliver it. Hello.
David Devasahayam
Yes.
Unidentified Participant
Who has a retail outlet in Mumbai. So how do we transport that? Because operationally it is not viable to go via roadways. So what, what is the split between the airway cargoes and the roadway cargo? And also how do we hedge against the prices of the airway cargo as the airway cargo prices keep on fluctuating? Do we have any tie ups with particular airlines or something? Air cargo or how do we do that? Sir?
Alexander David
Yeah, hi Alex here. Yes, we do have tie ups with some of the major airline players and because we already have a presence across the the country handling our cash logistics, our last mile connectivity is also very very strong.
So yes, we have a connection with all the airway vendors and at both sides, at the port receiving origin and other receiving branch, we have our people mobilized and we deliver the consignments within a certain timeline requested by the customer.
Unidentified Participant
And what is the split between the air cargo and the by road cargo? Sir,
Alexander David
we’re about half. So 50. 50. 50% by air and 50% is done by road.
Unidentified Participant
And so my final question is, does RBI permit to carry both cash and valuables in the same van? I mean during the same logistics, the same route or something? Or is it is mandated that cash should be handled in a separate van and valuables should be handled in the means different? One we don’t, we don’t see.
David Devasahayam
No, this, there is no such mandate as such from the rbi. But normally no logistics player will mix the two. Cash is a separate entity, a separate commodity and for hygiene requirement always maintained separately. So cash and valuables are really never mix with each other.
T.V.Venkataramanan
Just to just to add the timing of the requirement is also very different. Cash is between 10 to 3. Where the banking hours are versus the moment for valuables is largely in the nights. So we can. While you can use the same set of assets, it is not simultaneously cannot be transport.
Unidentified Participant
Got it sir. Thank you so much.
operator
Thank you ladies and gentlemen. That was the last question for today. I now hand the conference over to the management for closing comments.
David Devasahayam
Thank you very much. It’s so nice to get such wonderful questions from the shareholders. In conclusion, I’d like to say that the overall performance for the year has been stable with marginal improvement in profitability. The operating leverage that had helped report healthier performance in FY23 and prior years was affected in the current year due to muted revenue growth from the core business. With renewed focus on sales initiatives across all the verticals, we are confident of improving the performance in the ongoing financial year. I am confident of continuing this trajectory with the help of our new initiatives to tap the huge opportunities for growth, supported by a very strong management team.
I want to express my gratitude for your continued support to raise the end. We are confident that our sustained efforts will yield promising results for all stakeholders. Thank you all for your time and your continuing interest in our company. Thank you very much.
operator
Thank you. On behalf of Antique Stockbroking, that concludes this conference. Thank you for joining us. And you may now disconnect your lines.