Seshaasai Technologies Ltd (NSE: STYL) Q3 2026 Earnings Call dated Jan. 30, 2026
Corporate Participants:
Pragnyat Pravin Lalwani — Chairman and Managing Director
PAVAN KUMAR — CHIEF FINANCIAL OFFICER
Analysts:
Unidentified Participant
PRATIK JAGTAP — Analyst
Devesh Agarwal — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Sesha Sai Technologies Q3FY26 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 the conference call, please signal an operator by pressing Star and then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Pratik Jakta from ENY Investor Relations Team. Thank you. And over to you sir.
PRATIK JAGTAP — Analyst
Thank you Sagar. Welcome everyone and thanks for joining Seshasai Technologies Q3FY26 earnings call. The results have been mailed to you along with the investor presentation and it will be also available at www.seshasai.com. in case anyone does not have the copy of investor presentation please do write to us and we will be happy to share it with you. To take us through the results today we have top management of the company represented by Pragnath Lalwani, Chairman, Gautam Jain, full time Director and Managing the Managing Director and Pawan Kumar, Chief Financial Officer. Pragnath will start the call with brief overview about the company and business update and Bhavan will take us through the financial performance for the quarter and nine months.
Then we will have. We will open the floor for Q and a session as usual. I would like to remind you that anything that is mentioned in this call which reflects any outlook for the future or which can be construed as a forward looking statement must be viewed in conjunction with the risks and uncertainties that we face. These risks and uncertainties are included but not limited to what we have mentioned in the prospectus filed with the SEBI and subsequent annual report that you can find on our website. Having said that, I will now hand over the call to Pragnath.
PRATIK JAGTAP — Analyst
Sir. Over to you sir.
Pragnyat Pravin Lalwani — Chairman and Managing Director
Thanks Prateek. Good evening everyone and thank you for joining us today for the Q3 FY26 earnings call. It is always a pleasure to connect with you all and discuss the quarter update. Q3 FY26 has been a significant quarter for us both from an operational and strategic standpoint. While macroeconomic environment is uncertain, we remain focused on disciplined execution, advancing capacity expansions, securing multi year contract wins and strengthening our technology and innovation roadmap. During the quarter we reported revenue of Rupees 374 crore reflecting a growth of 6.1% sequentially and 10.1% on a YoY basis. PAT stood at 64 crores with a PAT margin of 17.15%, a growth of 19.3% on YoY basis.
The growth in Q3 was supported by increased contribution by Payment Solutions and steady contribution from our communication and fulfillment and our IoT solutions. This indicates improved scale and better throughput in core businesses. At the same time, we are continuing to invest for future growth through capacity expansion across IoT automation and metal Cards, ensuring readiness ahead of the demand growth. So let me discuss the business highlight of each of the verticals and then Pawan will discuss the financial updates. Payment Solutions Payment Solutions continue to be a core pillar of the business contributing 53% to our top line in Q3FY26 versus 51.1% in Q2 Q3FY26 sorry in Q2FY26.
This growth was primarily driven by increased offtake from existing and new customers In Payment Solutions we secured tender bills for multi year contracts with four of our existing PSU bank customers for payment cards. The above also includes the debit card procurement and personalization contract from one of the largest public sector bank in India. We also secured tender mints for multi year contracts with three public sector banks for personalized checkbooks and merchant QR kits. These multiyear contracts based on volume allocation represent a business potential of approximately rupees 489 crores for Seshishai as per the budgeted tender value over the tender period.
The revenue accretion would be on a consumption basis over the period of these contracts. In addition to this, we also onboarded eight of the customers for payment cards. Across banking, fintechs and forex card issuers, we are seeing strong traction in the metal card and premium card segment. We have been shortlisted by a large European fintech supply metal and PVC cards globally. This is a very prestigious account and holds good potential. Also an update from our last earnings call regarding the RSP of the domestic payment scheme for supply of metal cards. We have submitted our bids for this RFP and await next steps in the payment ecosystem.
Metal cards have emerged as a powerful symbol of differentiation and loyalty in India. Multiple banks have launched metal cards predominantly as credit cards and now banks are taking this trend to debit cards as well to retain and grow the premium banking segment. While volumes remain exploratory, significant growth is expected driven by aspiration, brand positioning and higher lifetime customer value. Case in point, being one of the largest PSU bank I mentioned above has also expanded its scope to include next generation offerings such as emitter cards, biometric cards, dynamic CV cards and non card variable form factors in this new contract we are seeing rising demand from transit led projects for interoperable payment cards used in Metro and buses.
Communication and Fulfillment Solutions Our communication fulfillment segment continued to remain stable and contributed 6.4% to top line in Q3FY26 from BFSI. Government and Enterprise customers remained healthy supported by regulatory communication requirements, identity led programs and specialized fulfillment needs. Our proprietary software platforms including the logistics aggregation software continue to differentiate us in this space and deepen customer stickiness. In.
Pragnyat Pravin Lalwani — Chairman and Managing Director
Communication with procurement solutions. We secured tender wins for multi year contracts with five customers across banking and government institutions. These multiyear contracts based on the volume allocation represent a business potential of approximately rupees 210 crores for CGI as per the budgeted tender value over the contract period. The revenue accretion would be on a consumption basis over the period of these contracts. IoT Solutions in IoT Solutions which is 10.3% of top line in Q3FY26, adoption of RFID solution continues to expand across industries such as retail, logistics, renewables and manufacturing in IoT solutions vertical we have seen six new wins across various sectors in this quarter.
Notable among them is a special win for us which is the largest Indian retail giant having more than 19,000 stores for whom we have begun our supplies for two of their fashion sub brands and shortlisted for their major RFID rollout shortly. In retail, RFID has moved from experimentation to execution. Large retail format players have already demonstrated how item level visibility drives accuracy, speed and omnichannel readiness. Now we are seeing traction amongst IIT retailers adopting RFID to compete on efficiency, reduce stop losses and enable store led fulfillment. Affordable tag costs and faster ROI cycles are accelerating this shift making RFID a foundational capability rather than a premier add.
On.
Pragnyat Pravin Lalwani — Chairman and Managing Director
Unique strength of chip bonding, inlay design specific use case based tag manufacturing. Its speed and agility has been a differentiator and enabler to help solve customers problems and offer relevant technology solutions. With large scale manufacturing of garments moving to India by the global players and the various FTE agreements done by the Government of India, we feel TCI with its diversified RFID portfolio is well positioned to capture the opportunity of source tagging or RFID happening from India. It is only due to the diligent efforts of our team that our contributions have been recognized within the industry and we have been awarded the Partner of the Year at the Intelligent Ecosystem Summit by every Denison.
Across sectors one theme is clear. Visibility is no longer nice to have. It is mission critical in logistics and supply chain. The Conversation has evolved from beyond track and trace to condition awareness. Sensor based facility using data loggers, Bluetooth devices, smart sensors is transforming cold chain pharmaceuticals and high value shipments. Real time data on temperature, shock, humility and dwell time is becoming essential to compliance, quality assurance and brand trust. We are standing at a defining moment in India’s digital and physical transformation where identity, connectivity, traceability and trust are converging to reshape how commerce, healthcare, logistics and financial services operate at scale.
The opportunity before us is vast. It lies in embedding intelligence into physical objects, enabling trust through data and building platforms that scale across industries from retail and logistics to healthcare, DFSI and IoT. Teshida is on this very journey leading its transformation which will not just improve efficiency but define the next decade of resilient, connected and intelligent commerce in India. We also continue to sell in our technology moat through six new patent filings in the last nine months as well as align certain strategic technology partnerships for building advanced product authentication and anti counterfeiting capabilities in our product offerings.
Overall, Q3 was a quarter of preparing the business for scale, increasing capacity, advancing technology capabilities and securing long term contracts while maintaining discipline on execution and capital deployment. Currently we have over 200,000 square feet under construction across four locations for our new facilities at Bengaluru, Nagpur, Navi, Mumbai and Kundali for our future business growth. Looking ahead, we are optimistic about the medium to long term outlook. Historically the second half of the year especially Q4 has tended to be stronger across verticals and we expect this trend to play out in Q4FY26. With that I will now request Pawan to take you through the financial and operational highlights for this quarter.
Over to you Pawan.
PAVAN KUMAR — CHIEF FINANCIAL OFFICER
Thank you Pragnath Sir, Good evening. Good evening everyone and thank you for joining our Q3 FY26 earnings call. Let me start with a quick summary of our performance for the quarter and nine months gone by. In Q3 FY26 our revenue total revenue stood at 374 crores up 6.1% quarter on quarter and 10.1% YoY. This growth was primarily driven by steady execution across all verticals along with traction in the payment solutions business. EBITDA for the quarter came in close to 100 crores with an EBITDA margin of 26.95%, an increase of 316bps yoy. Our pack for the quarter stood approximately at 64 crores with a margin of 17.15% up 133bps yoy.
This growth was led by increased gross margins, lower finance costs and also higher scale in this quarter. In terms of revenue mix across our core verticals, Payment Solutions continued to be the largest vertical which contributed 53% of the revenue, followed by communication fulfillment at 36.4% and IoT solutions at at 10.3% in Q3 FY26. This shows that IoT is now a material vertical contributing to growth and diversification. The top 10 customers contributed almost 63.5% of our revenue and more than 95.5% of our revenues came from existing customers, showcasing the stickiness of client relationships and strong renewal at and repeat business characteristics of our business model.
For nine months FY26 our total revenue stood at approximately 1037 crores, a decline of 5.3%. YoY. EBITDA came in at 269.6 crores with an EBITDA margin of 26% and increase of 140bps. YoY. Our package stood at 158.57 crores with a patch margin at 15.3% up 70bps. YoY.
PAVAN KUMAR — CHIEF FINANCIAL OFFICER
On the balance sheet and cash flow front we remain well capitalized. As of 31st December 2025 we had cash and cash equivalence of approximately 387 crores. With respect to the IPO proceed utilization remains in line with the stated objects of the issue. During Q3 funds were primarily deployed towards debt repayment of approximately 230 crores with the 70 crores repaid in the previous quarter. The total debt repayment amounted to Rupees 300 crores. As per the IPO OP6, the capital expenditure in this quarter stood at approximately 34.2 crores. The total IPO proceeds utilized were at 346 crores with about 254 crores remaining to be unutilized which will be utilized over the subsequent quarters.
To summarize, Q3FY26 was a quarter of disciplined execution while continuing to invest for growth and technology. Our margins, our balance sheet strength and the diversified revenue base provide a solid foundation as we move into the next phase of growth. Thank you. Over to the moderator.
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. Our first question comes from the line of Devesh Agarwal from IIFL Capital. Please go ahead.
Devesh Agarwal
Thank you for the opportunity sir. And congratulations on good set of numbers. So my first question would be if we see EBITDA growth has been higher than the revenue growth, clearly we see that there is a gross margin expansion that has happened despite the rupee depreciation. So could you share what is driving this expansion in margins and is it sustainable going into FY27?
PAVAN KUMAR
Hello Devesh. Hi, this is Pawan here. I’ll take that. So the improvement in overall gross margins is attributable to factors across our verticals. Primarily we have benefited from the favorable product mix similar to what we had in the last quarter as well. Operational efficiencies have kicked in as volume and scale has grown in this quarter. Another part is where on the procurement initiatives we were able to source from vendors with favorable payment terms and our overall import costs reduced. So there’s been an improvement in paper prices and other core raw materials such as chips, etc.
In this quarter. We also continue to use in house manufacturing of our inlays in IoT vertical. These are a bunch of factors which we have seen help us in this quarter to deliver on the gross margins. On the overall outlook we see that. We are going to.
PAVAN KUMAR
We are confident to maintain on a similar range from a 43 to 45% gross margins. However, we are also keeping a close eye on the dollar increase and would see how things move on from here. I hope that answers the question.
Devesh Agarwal
Sure, sir. So what percentage of a cost is dollar denominated? Approximately 37 to 38% is dollar denominated which is the imports for various raw materials across our verticals. And you said one of the reason for favorable gross margin is the favorable product mix. So can you also share the segment wise gross margins or EBITDA margins for the three segments that we have?
PAVAN KUMAR
We’ve not shared those margins in our earlier DRHP and prospectus, Devesh, because we have a lot of materials and infrastructure that we use which are common across all the verticals. So that level of bifurcation at this stage may be difficult, but that’s something that we’ll keep an eye on and hope to see how we could start packing that and provide that.
Devesh Agarwal
Sure, sir. And so if we see these revenues for your three segments, what we see that on a yoy basis your payment solution has seen a 7% decline despite overall revenues growing at 10%. So your core segment. So is this decline largely restricted to the lower volumes or there has been some price moderation as well?
Pragnyat Pravin Lalwani
There is. I’ll take that. So I think as we said, that there has been definitely an impact of volume that has been playing around in terms of the business. So there’s a mix. I would say the larger contributor would be the reduction in volume. There have been maybe marginal price corrections as well from few customers. So it’s a mix between I would say volume and some amount of price correction as well.
Devesh Agarwal
Right. And sir, is the share of metal in the overall payment solution revenues kind of increasing or it’s still not yet picked up?
Pragnyat Pravin Lalwani
A good question.
Pragnyat Pravin Lalwani
In fact, what we see here is that in this coming quarter we have seen a very good order book for the metal cards and in fact we are expecting probably the order pipeline for metal cards to build up very well. So I think going forward, though it is a little delayed compared to our expectations, but going forward we feel metal to be an important driver for business and also for profitability. We are seeing metal card projects coming up from various customers. In fact, you’ll be glad to know that right now there are three government banks with whom we are discussing good amount of metal cards which was like something unheard of quite some time before, and at least half a dozen projects that we are working on with customers on metal cards which are at various stages of sampling and go live.
So we feel metal from Q4 onwards and going to the next financial year would be an important contributor to the revenue and seeing that demand expectation. Plus also, as we said, we’re working on a couple of large metal opportunities, one being the domestic rsp, the other being this global fintech that we’ve been shortlisted with also other global players that we’re working with. There are some domestic fintechs also. So expecting this itself, we have begun our expansion and investment to probably explore possibilities of also increasing our metal capacity so that we are ready in time, by the time this opportunity really starts playing up.
Pragnyat Pravin Lalwani
Right.
operator
So if you could share. Sorry to interrupt. Devesher, may we request you to return to the queue for follow up questions please?
Devesh Agarwal
Sure, sure. No worries. Thank you so much.
operator
Thank you so much. Participants, you wish to register for a question, you may press star and then one. Our next question comes from the line of J. Patwa from Vani Financial. Please go ahead.
Unidentified Participant
Hello.
operator
Yes sir, please go ahead.
Unidentified Participant
Yeah, congratulations for a good set of numbers. My query is on payment solution rather than the the traditional BFSI where other segments where we are focusing like Metro cards or Then the, the payment variables. Whereas like in the, these theme parks and all. So can you give some color on that?
Pragnyat Pravin Lalwani
Yes, yes. So see essentially just to tell you, there are two types of, of payment instruments that are there. One are closed loop and one is open loop, right? So typically in many of these payment theme parks, etc. Etc.
Pragnyat Pravin Lalwani
Maybe if you see even in, in Disney World you have, where you have a band or you have a card which is given to, which is a closed book card which is predominantly not regulated by Visa Master or Rupee or this global scheme. So it is called as a. It basically comes as probably a card for collection of money, but it doesn’t happen to be a payment card in the actual scheme of things. Now what we are focusing on is.
Pragnyat Pravin Lalwani
Two types of opportunities. One is essentially the transit card which are used essentially by system integrators, by Metro operators and also by banks. So here we have three set of customers. One is we have large banks which take up the project of automatic fare collection of metros, bus stations, etc. Like for example you would have seen State bank of India has a project for Mumbai Metro, right? And we are one of the service providers to them. Similarly they do it for Chennai Metro. So we are a service provider to them. We also do it with them for multiple metros in kanpur, Lucknow, Nagpur, etc.
Apart from that you have certain fintech players who are also taking a project. So for example, Delhi Metro has been taken over by one of the small payment banks. So we are basically working with them as well. So on the metro side there are also certain government programs that we work with which are again linked to transit, which come in where the free transportation to beneficiaries is treated as a DBT initiative. So there again we work with a system integrator in one of the states in North India. We’ll be shortly starting a program in January, you know, for Maharashtra State with the system integrated for the Road Transport Corporation.
So you are very right. We, apart from the banks, we continue to look at opportunities where we work with system integrators, we work with fintechs. You know, we also do cards similar to the Sodexo meal vouchers where those cards are also, you know, given for people for which can also be used in the transportation etc. So on the amusement theme parks etc. That probably will be a business opportunity which we are exploring which comes into our IoT solutions vertical because it’s not regulated as such, so that we tend to put it into our IoT vertical.
In fact we do some cards in the closed loop business as well. For example, before the Mumbai Metro went from closed loop to open loop we were supplying them the cards etc. So we try to focus on where the opportunities come. Also on the non variable form factors we recently closed the program with one of the large global schemes where we close an order for stickers, where the global payment scheme in India is promoting stickers as an add on payment factor to be used in transit for their banking customers as an add on with debit card.
So we just recently closed that order. I think it was in, in. In this quarter itself in Q3 and the supplies have happened for that. So so that’s our overall approach to non card form factors and transit.
Unidentified Participant
Okay, great. So my second question is on the communication and fulfill segment. So basically this segment is also growing sequentially and yoy. So my question is in this segment also there are multiple sub segments I can see and one of that is like issuing of these health to the insurance company. But I think after Covid majority of the companies have stopped issuing these health cards. So actually which segment or sub segment in this communication and fulfillment is growing in your segment.
Pragnyat Pravin Lalwani
So just to give a flavor of. What, what construct our communication fulfillment business made up of. Right. We basically have you know, three different products in the communication fulfillment solutions business. One is essentially we have data driven communication going out to customers which is either business driven or statutory driven. Okay. Second is we offer an end to end logistics management platform to customers where customers for whom either we produce a deliverable or even if there are some other agencies producing deliverable, we offer the aggregation and the whole platform with integration to customers, mobile app and the entire notification etc. Etc. And the third is we have an inventory and order management system platform where we take up the orders for large corporates.
So 35,000 bank branches across large banks are serviced with almost 4,000 SKUs from this platform across banks. So what we have found now is. That there is a greater degree of consolidation happening because of GST compliances, et cetera. There’s a greater compliance coming in from how cyber security processes are taken care of, how data is being managed by service providers. So our growth in this probably is coming from large enterprises consolidating vendors because their volumes are getting rationalized giving more importance to process adherence and compliance. And that’s where we see the demand coming in for the compliance business, probably the health card. You’re right, a lot of these things have gone digital but we continue doing this Business the identity card solutions where we are doing the large citizen ID card project and the tax ID card project, both for the government which comes into this vertical.
But these factors are the factors which is driving the growth in the business. And our logistics management is known as integrated logistic management. This is part of our communication fulfillment solution vertical where we have found in the recent past a lot of traction coming in here and we’ve really got four wins in fact of ILMS customers in this last nine months and some of them are very substantive. So together with wins for data driven communication within the ILMS and IIMs, these are the three contributors to growth in the communication fulfillment business.
Unidentified Participant
Okay, and my last question is on the IoT vertical. So can you give a flavor that like there might be so many competitor in this vertical, unlike your payment solution, there are almost duopoly. So where as a company we stand, we are definitely growing at a small. Base, but what is our mode that. We can grow at a similar pace in future? Also it’s very important to understand.
Pragnyat Pravin Lalwani
The. Offering of the IoT business, especially right now the couple of projects or I would say almost half a dozen projects that we are working on. See, the IoT business, especially for us is across multiple sectors, right? We work in retail, we work in renewables, we work for logistics customers and also we work for manufacturing and others in the retail business. What we have seen is that offering is essentially very critical to the supply chain of the brand. So here we have three or four critical enablers, right? One is we have a platform which workflow is aligned as per the workflow of the enterprise.
There is a tight or loose integration into their backend systems where the data flows depending on how the product lifecycle management functions for the brand. In terms of how the ordering takes place, we are integrated very closely between the brand owners and the manufacturers. There is a rule engine and a complete workflow basis with the tags are dispatched to the factories. It’s a very, very dynamic and demanding business with are very crucial. Also the execution happens to multiple geographies for us. We execute these projects now from Chennai, Bangalore and Delhi. Also a lot of the tags that are produced are not available off the shelf.
Quite a lot of them are custom designed by us in our design facility. So we also do chip bonding for those inlays in house. So what Typically if you see maybe if I will eliminate. Right. Number one is you need to have your own inlay design facility. Number two, you need to have your own technical platform to handle this. Third issue to have a scale of volume that you’re able to handle.
Pragnyat Pravin Lalwani
You need to have multi location infrastructure and more importantly the credentials to be. Able to manage this data in a very, very secure manner. Okay. And this is essentially how we feel. These are the modes, you know, which have been done. Apart from this, we want going forward to be a full stack solution provided to the customer. We will offer the tag solutioning which is important for the source tagging. Then you will offer the middleware software which is required to integrate the WMS and the erp. And third is the hardware which is required for this whole process. So to our mind, as you agree, no business, there is no competition. Right. But from our perspective, with all these attributes which are important and which are built by us as probably differentiators for our business offering, I would, they would probably offer at least some degree of moat or a good degree of moat to our business, you know, in the IoT offering.
Unidentified Participant
Okay, thank you.
Pragnyat Pravin Lalwani
Congratulations for your future.
Unidentified Participant
Thank you.
operator
Thank you. Your next question comes from the line of nitesh from Investec. Please go ahead.
Unidentified Participant
Thanks for the opportunity, Sir. So, on IoT business I have a question that how are the trends in pricing for tag etc. In that business?
Pragnyat Pravin Lalwani
Yeah, that’s a good question.
Pragnyat Pravin Lalwani
Yes. Essentially in the IoT business the tag cost is probably decided by two things. One is what is the form factor. And second is obviously the cost of the semiconductor and the cost of the inlay. Right. So what we’ve seen is essentially from the year we started three years ago to where we are today, probably we have one of now a sizable volume consumer in this market. And with that volume buying comes price advantage. And obviously the volume advantage, price advantage that we get, we also treat it as a tool in our hand to ensure that we do very sharp pricing to the customer so that essentially people with lower volumes, etc.
Are not able to compete or not be viable. So I would say all the years we have seen, as the probably volumes go up, the input costs could get more competitive. And as a strategy we want especially in critical accounts to pass on some benefit of that to the customer because that becomes a competitive edge for us. So we have not seen major price rationalization probably in the last couple of quarters, but definitely going forward as volumes will build up, you could see some small delta coming into the price.
Unidentified Participant
Sure.
Pragnyat Pravin Lalwani
And how do you think about the total market size in IoT? And let’s say we are growing at 100% right now. How should we think growth over, let’s say next three years Perspective? How the market is growing. What is the market size and how do you see your growth if you.
Unidentified Participant
See the IOT business?
Pragnyat Pravin Lalwani
See, the important part is right now. For us, I would say whatever revenue is coming in is majorly coming in only from one of our revenue drivers. Okay, I would call there are three revenue driving engines for CCI or maybe four revenue driving engines for Seshai and IoT. Right now we are only tipped one, which is the RFID tag part of the business. Now I’ll just finish on that one. On the RFID tag side of the business, especially with the new win that we are having, we hope to continue this run rate at least in the next financial year on a standalone basis only for that one vertical.
Apart from that, we, if you see we’ve invested in, and we did one more round of investment in this quarter into Allomine Labs, right where the products have become very, very mature. So we are also beginning to work on projects now which are of sizable volumes on data logging for, you know, shipment movement, cold chain monitoring, etc. So that also will be contributing to our revenue. The third piece on the RFID is essentially the hardware side of the business which will play in and obviously the software stack. So from our perspective, and the last piece, I’m sorry, is the ESIM and the SIEM business.
So just to share with you that Q3, we began our SIEM supplies to the telecom providers and we are at the advanced stage of our SaaS certification. On our site, we finished the audit. We got very positive feedback from the auditors. So I think we should be. We were hoping to get it before this call, but it will be probably coming in the next week or two. So with this certification behind us, the. ESIM business also is positive to grow. Well, it will take time for it to contribute to the revenue, but definitely in the next financial it will start contributing to the revenue side. We feel on the IoT business we remain very bullish and we feel that this rate of growth that we’ve seen in the past year, we should be able to, you know, next two months also we see a strong pipeline. We should end this year with very good growth on IoT and continue the growth in the coming years.
Unidentified Participant
Sure. That’s it for my present. Thank you.
operator
Thank you. Your next question comes from the line of Chintan Shah from JM Financial Family office. Please go ahead.
Unidentified Participant
Hi, thank you for the opportunity. Couple of questions. So one is on the payment solution side. I mean if you give a better flavor in terms of outlook for this segment, especially From a next two year perspective and if you can spread it probably in terms of volumes and realization. So what I’m trying to get a sense here is basically in terms of our contract negotiations that only happen annually or once in three years, is the realization decline largely behind us and that should be stable going forward or could we see some more pressure? That’s the first question.
Pragnyat Pravin Lalwani
Basically the tenders that we have typically are for a two plus one or three year contract as the case may be. So wherever we have tender that we’ve just closed now, they’ll probably be lasting for three years or two years, extended by one more year. But the bank and their discretion. So there we have a lot of, I mean no concern about the price, the prices are stable at which the tenders have closed on the other front where we have RFPs, where we have annual pricing contracts with the customers. So I think with the way the dollar is positioned and also we are getting inkling of little bit of tightness on the supplies on the semiconductor side.
So typically we will also be talking to customers to ensure that we are able to plan very well to ensure that there’s no disruption supply for the customers. So probably there would be, depending on how these two factors play out, there will be some impact of that. But overall we’ve not seen any drastic price reduction across the board on an overall weighted average basis. There has been a correction for sure, but it’s not been very significant. We’ll have to wait and watch in a quarter that plays out essentially where the dollar ends. Also how the semiconductor situation is placed which will probably decide the pricing for the next financial.
Because one thing I would like to state here, that for customers today, especially the large banks who deal with us. Probably there are four or five factors. Which are really important for the relationships with any service provider. Definitely service quality is one factor which is very important. Price is an important factor. But also factors which are taking now is how are you complying to various compliances, you know, how secure is your processes from a cyber security perspective? Are you a multilocational player for that customer? Are you able to offer the entire portfolio right from metal card to wearables to PVC cards. So to my mind it’s a mixed probably situation here where various attributes that a customer expects from a service provider versus the competitive pricing that he expects from us.
So probably in that regard I think customers are today seeing this service offering as a very critical offering for their whole operations. So we probably see a little bit of price inelasticity there If I may say. But let us see how it plays out the next quarter. We don’t see any significant price reduction from where you close our contracts as of now.
Unidentified Participant
Got it?
Unidentified Participant
Understood. So just one follow up for nine months. FY26. If I just understand the large part of the decline and you see that is largely volume driven. Is that a fair understanding?
PAVAN KUMAR
Probably. I’ll give you one more aspect just. To understand how the payment solution business works. Right. See in the payment solution business, especially on the cards, our revenue is a mix of three or four factors. Right. One is the base card, second is the personalization. Third is the kitting that we do the customers. And fourth is the service offering that we add to the customer in terms of logistics etc. So revenue is a cumulative outcome of various factors playing out across various contracts. Right. But definitely it was not saying that. If there is a reduction in the revenue, volume is one of the contributors between Q1, Q2 and Q3. You know, we actually had Q1 revenue at maybe 149 crores for payment solutions. Then it’s gone to 179 crores and now it’s at 198 crores. And I feel this graph will continue to be upwards in Q4 as well.
Unidentified Participant
Got it? Understood. Fair enough. And one last question that is on the IoT segment. So this one new large retail giant that we have can give some more color basically what could be the potential from this client? Probably not from a near term perspective but say over two, three years. If you can give some indication in terms of what could be the potential size here.
Pragnyat Pravin Lalwani
So I think we’re just waiting for the allocation from the customer in terms of the volume in which it can come to. But to our mind it’ll be our largest account once it comes into our city. Maybe once we have more clarity from the customer, we can update you on this offline or maybe by the next earnings call we’ll have more clarity and give that to you. But it will be definitely a very sizable value contract for us.
Unidentified Participant
Got it? Understood. Thank you so much. That’s all from myself.
operator
Thank you. Your next question comes from the line of Vedanthakarwal from IIFL Capital. Please go ahead.
Devesh Agarwal
Hi sir. Thank you for the opportunity. So I wanted to follow up on the IoT business as well. The revenue has been flat more or less from first quarter 26. So if you could just give us some highlights as to what can be a growth driver going forward from a short term and from a long term perspective and what numbers can we expect going forward?
Pragnyat Pravin Lalwani
So from the IoT side, typically if you see on a YY basis, right, we almost won 100%. Right. If you see Q3 of FY25, we were around 19.9 crores. We are at 38 crores now. So if you look at a YY basis we’ve actually grown 100% there. But you’re right, we would have liked to grow much better in this quarter compared to the previous quarter. But one of the predominant reason for this was the project rollout for our large customers was delayed. So that’s probably going to be happening probably in the next couple of weeks.
And what we feel is that whatever probably loss of revenue that we’ve had or opportunities that we had in the last quarter should be compensated before the end of the financial year is what we are working on. And we expect the Q4 for the IoT business to be a major portion of our IoT business comes from from retail. And retail is a little bit seasonal in the sense that they have cycles on which they start manifesting the garments depending on their winter cycles and summer cycles. So there’s a factor which plays out there as well.
But having said that, we expect the following two months to have a good amount of volume coming in from existing and the new account that we’re talking about. Apart from this, we’re also working on with some global partners where we got a confirmation from customers in Middle east where we will supplying them tags for the garments to be manufactured in India. We’re also talking to some partners who are nominated agencies for global brands for their fulfillment for them for the tags in India. So I would say I already explained a little bit of my IoT details in the previous question.
Maybe that addresses a bit of your query. But in the immediate future we expect. Good volumes to be coming in in the next two months.
Devesh Agarwal
Okay sir, thank you so much for the answer. That helps.
operator
Thank you. Before we take the next question, a reminder to all the participants. You may press star and then one to ask a question. Our next question comes from the line of Rohit Tiadarshi from Mittal Analytics. Please go ahead.
Unidentified Participant
Yeah. Hi. Thank you for the opportunity sir and congratulations on good set of numbers. Sir, I am quite new to the company so would like to ask few basic questions like on the payment solutions on the banking front we have 10 out of 12 PSU rank as our customers. I just wanted to understand like we are doing credit card, debit card and check checkbook printings for these banks. Is my understanding correct?
Pragnyat Pravin Lalwani
Yes, Good. Yeah, yeah. And sir, on the insurance front, I’m. Sorry, I’ll just clarify here. See our offerings to public sector banks are about three or four major offerings. One is we have, we offer checkbooks to banks, we offer debit and credit card to banks. We also offer welcome kit to banks where we combine the card and the checkbook and send the welcome kit to the end customer. We also have a inventory order management platform where we offer stationary collateral fulfillment to the banks and we also offer QR code, merchant QR code to banks for their payments, etc. And we have a logistics management also that we offer to the banks.
For some banks we also do the statement printing. So when we say 10 out of 12, which means that these banks are availing of at least one of these service offerings that we have, it’s not that 10 of the 12 are only checkbooks and cards, okay? It could be a mix or match of these services.
Unidentified Participant
Understood, sir, understood. And sir, on the insurance front, what exactly? We are providing the services in this insurance.
Pragnyat Pravin Lalwani
Yes. So I mean see we’ve been in the insurance business offering services for customers for the last 20, 22 years now. So this whole product offering and our relevance and size of the business has seen, I would say it’s come the complete cycle now. So today we for the life insurance customers, we offer the policy printing. For the customers we offer non policy communication like renewals, reminders, motivation, etc. And also we do a little bit the same for the general insurance companies for some we also offer the logistics services. So this business obviously over the years due to digitization has got rationalized.
We also offer digital communication to the customers where we send out email statements, some WhatsApp updates, SMS notification, etc. So depending on the customers need today for us as service providers, we offer services within from this bouquet for the customer’s needs. But we still have retained relationship with those customers over the last two decades because these are customers sitting on very large customer base. And any compliance communication that needs to go out has to go out in a physical form. So we have spots coming now and then for that compliance communication which needs to go out.
Unidentified Participant
Understood sir. And sir, when we say we also provide services to the government in the form of tax id. So are we saying that we do printing of that pan card or something?
Pragnyat Pravin Lalwani
Yeah, yeah, exactly.
Unidentified Participant
Okay, okay, okay, got it. Good. And the last question would be out of the our payment solution communication segment and IoT segment, which is which segment would be the more margin lucrative for us?
Pragnyat Pravin Lalwani
I would say the payment solutions. And the IoT solutions are almost similarly placed on margin.
Unidentified Participant
Okay. Sure, sir. Thank you so much, sir. That is all kind of. Thank you.
operator
Thank you. Participants, if you wish to register for a question, please press star and then one. A reminder to everyone, if you wish to ask a question, you may press star and then one. As there are no further questions from the participants, I now hand the conference over to the management for closing comments.
Pragnyat Pravin Lalwani
It’s been a pleasure interacting with all of you today. We appreciate your continued trust and support. Thank you.
Pragnyat Pravin Lalwani
Thank you, everyone, for joining us today. It was lovely interacting with all of you. Thank you.
operator
Thank you. On behalf of sheshasai Technologies. That concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank you.