Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Seshaasai Technologies Ltd (NSE: STYL) Q4 2026 Earnings Call dated May. 19, 2026
Corporate Participants:
Pragnyat Pravin Lalwani — Chairman and Managing Director
PAVAN KUMAR — CHIEF FINANCIAL OFFICER
Analysts:
PRATIK JAGTAP — Analyst
Unidentified Participant
Devesh Agarwal — Analyst
Presentation:
Operator
Ladies and Gentlemen, good day and welcome to the Csashai Technologies Limited Q4FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchtone phone. Please note this conference is being recorded. I now hand the conference call over to Ms. Asha Gupta from ENY LLP Investor Relations.
Thank you and over to you.
PRATIK JAGTAP — Analyst
Thank you Steve. Welcome everyone and thanks for joining Seshushai Technologies Limited Q4FY26 earnings call. The results and presentation have already been mailed to you and you can also view them on our website@www.srishai.com. In case anyone does not have the copy of investor presentation press release, please do write to us and we will be happy to share with you. To take us through the results today we have the management of the company represented by Mr. Pragnath Lalwani, Chairman and Managing Director, Mr.
Gautam Jain, Full Time Director and Mr. Pawan Kumar, Chief Financial Officer. Mr. Pragnath will start the call with a brief overview of the company and business update which will be then followed by Pawan who will take us to the financial performance for the quarter and full year and then 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 forward looking statement must be viewed in conjunction with the risk and uncertainties that we face.
This risk and uncertainties are included but not limited to what we have mentioned in the prospectus filed with SEBI and subsequent annual report that you can find on our website. Having said that, I will now hand over the call to Mr. Pragnath. Over to you sir.
Pragnyat Pravin Lalwani — Chairman and Managing Director
Thanks Asha. Good evening everyone and thank you for joining us today for the Q4 and full year FY26 earnings call. I hope all of you have had the opportunity to review our financial results and presentation. Let me quickly discuss the business highlights for the quarter and financial year 26. Post that Pavani will take you through the financial update. During the quarter we reported revenue from operations of rupees 404 crore reflecting a growth of 8.1% sequentially and 9.6% on a YoY basis. The growth was supported by stronger execution across business verticals, improved throughput and better contribution from diversified businesses including communication and fulfillment solutions and IoT segments.
Moving to the full year financial year 26 performance, we reported revenue from operations of rupees 1,441.1 crore, a drop of 1.5% on YYY basis. The decline during the year was primarily led by temporary moderation in the payment solutions business due to industry wide factors. However, this was largely offset by the strong growth in our communication and fulfillment solutions business and continued scaling of IoT solutions Business technology led offerings enabling us to maintain overall stable performance with healthy margins.
This reflects the increasing resilience of our business model, improved diversification across revenue streams and a lower dependence on any single vertical. FY26 was a landmark year for Shashi Shai as the company completed its listing during the year marking an important milestone in our journey. FY26 has been a year of transformation and transition for Session SHI technologies where we have made deliberate efforts to diversify the business, strengthen our technology led capabilities and build future ready platforms across our key verticals.
During the year we continue to invest in innovation, automation, premiumization and new growth platforms while also strengthening our focus on recurring and technology driven businesses. This reflects our broader transition towards becoming a solutions oriented and platform led organization. Over the course of the year we have continued to build on our strong and long standing customer relationships across banking, bfsi, government, enterprise, retail, logistics, telecom and technology ecosystems.
This deep customer engagement has enabled us to sustain recurring revenues, increase wallet share, cross sell integrated solutions and expand into adjacent offerings. We believe FY26 should be viewed not only as a year of resilience being a softer industry phase, but also as a validation of our diversified and relinquishim led business model. At STSI we do not evaluate our success purely based on revenue for a particular year. We continue to invest in innovation, new products and technology capabilities that are aligned with evolving customer needs.
Many of the initiatives we are building today may not contribute materially in the short term but are strategically important in creating future growth opportunities. Across our verticals. We are developing capabilities in Advanced payment solutions IoT ecosystems including RFID and traceability and platform led communication and fulfillment solutions. These investments are designed to position us strongly for long term scaling. A key strength of our business continues to be the high proportion of recurring and annuity like revenue streams across our verticals.
Around 97% to 98% of our revenue is recurring in nature driven by ongoing card issuance programs, regulatory and compliance driven communication requirements, fulfillment engagements and repeat ordering cycles in RFID and IoT solutions. This provides stability and usability to our earnings while also allowing us to benefit from new customer additions and project based opportunities that offer additional growth as we look ahead to FY27. We remain cautiously optimistic while being mindful of global macroeconomic and geopolitical uncertainties including supply chain disruptions, currency volatility and broader demand conditions.
However, we believe our diversified business model, strong customer relationships, recurring revenue base and continued investments in future aid technologies position us well to navigate such challenging environments. We would like to update that our Navi Mumbai and Kundali facilities have become operational in Q4 of FY26 while Nagpur and Banguri facilities are still under construction. We would like to inform that we have filed for six new patents in FY26 across products and solutions, taking the total tally to 19 patent applications filed out of which five have been granted till date.
In terms of business segment Update Payment Solutions Payment solutions contribute approximately 50% to the total revenue in FY26. This segment was impacted by broader industry factors including moderation, issuance volume from PSU and private banks, lower renewal card volumes due to lower base year issuance during COVID 19 period as well as timing differences in renewal cycles and tighter regulatory and compliance environments for banks and fintechs. However, we have not lost a single customer and added 21 new customers across banks and fintechs contributing meaningfully to revenue.
As we continue to strengthen our customer base and market reach in initiatives, we continue to see strong trends in premisition, increasing opportunities in transit ecosystems and a strengthening pipeline advanced card products such as metal cards, biometric cards and other secure chip form factors. We believe that as banking cycles normalize we expect gradual improvement in volumes going forward. We were the first Indian card manufacturer to file for our metal card patents in October 2021 as one of the first to get Global Payment Scheme approvals for our metal cards in March 2023.
We would like to share that we have been granted our patent for metal cards in February 2026. This reflects our continued focus on product innovation, engineering, enhancing our R and D capabilities and intellectual property creation across secure Payment portfolio. This has led us to have a formidable portfolio of metal car variants each targeting different customer segments. In this quarter we won a multi year tender from our leading PSU bank which represents approximately 8.7 crores in revenue over the tender period.
We would like to update that the Domestic Payment Scheme RFP and Global fintech RFP for Metal Card variants is still under process and evaluation. Communication and Fulfillment Solutions Communication and fulfillment solutions contributed 39% of total revenue in FY26 and recorded a strong YoY growth of 29% over the years. This segment has evolved into a technology driven integrated solutions platform combining secure communication, fulfillment, digital workflow, orchestration, feasibility and logistics integration capabilities back on our proprietary platforms like Rubik, etatrack and ioms as well as spanning the execution infrastructure, the business is increasingly positioned as a strategic partner for customers managing large scale, secure and time sensitive communication and fulfillment requirements.
The segment continues to benefit from strong customer relationships, operational scalability and recurring business opportunities making it an important contributor to the company’s growth, profitability and cash flow profile. IoT Solutions IoT Solutions contributed 11% to total revenue in FY26 and witnessed a growth of 45% on YYY basis. IoT is gaining traction as a long term growth engine driven by increasing adaptation of rfid, growing importance of capability across supply chains and rising demand for sensor based and platform led ecosystems.
We believe our intensive capabilities and strong positioning in this space will enable us to capture these opportunities effectively over time. Continuing from our earlier quarterly initiatives, we saw momentum built up in the project rolled out for one of the largest Indian retailers across their major fashion brands using an integrated approach of using technologies such as rfid, Bluetooth and other sensor based analytics. We are seeing good traction in projects being undertaken currently to solve real world problems across spectrum of industries such as retail, renewable healthcare, power generation and also global capability centers gccs.
During this quarter our Bangalore facility has received the GSMA SAS UP certification for SIM and ESIM Manufacturing and personalization, data generation, PKI Certificate handling making the company one of the few global players with this integrated capabilities for ESIMs. I’m also happy to share that the SIM Card division started contributing materially to revenue in this quarter. Going forward, growth will be driven by premiumization, trends in payments expansion, IoT and traceability solutions, platform led fulfillment ecosystems, increasing opportunities in transit and secure identity solutions as well as scaling of new technologies and international opportunities.
The Board of Directors has recommended a dividend of INR rupees 2.5 per share reaffirming our commitment to shareholders. With that, I will now request Pawan to take you through the financial operation highlights for the quarter. Over to you Pawan.
PAVAN KUMAR — CHIEF FINANCIAL OFFICER
Thank you Pragnath Sir. Good evening everyone and thank you for joining our Q4 and FY26 earnings call. Let me start with a quick summary of our performance for the quarter and then the full year gone by. In Q4
Unidentified Participant
FY26
PAVAN KUMAR — CHIEF FINANCIAL OFFICER
Our total revenue stood at approximately 405 crores up 8.1% quarter on quarter and 9.6% year on year. This growth was primarily driven by stronger execution across verticals with strong traction in communication, fulfillment and IoT solutions.
Operator
EBITDA for the quarter
PAVAN KUMAR — CHIEF FINANCIAL OFFICER
Came in at approximately 125 crores with an EBITDA margin of 30.8%, an increase of 330 bids. EBITDA margin expansion was supported by stronger operating leverage, improved business mix, better cost absorption, procurement efficiencies and structurally improved margins across operating segments. Our PAC for the quarter stood at approximately 82 crores with the pad margin at 20.2% up 316bps yoy. The profitability improvement was aided also by lower finance costs following debt repayment post the IPO which resulted in improved earnings conversion and stronger bottom line performance in terms of revenue mix across our verticals.
Payment Solutions continue to be the largest vertical which contributed 47.5 of the percentage of the revenue followed by communication and fulfillment at approximately 39.8% and IoT Solutions at 12.4% in Quarter 4 FY26 for the full year FY26 our total revenue stood at 1441 crores a slight decline of 1.5%. Year on year EBITDA came at 394 crores with an EBITDA margin of 27.4%, an increase of 204bps YoY. Our pack stood at 240 crores with a packed margin of 16.7% which is 146bps YoY. The overall revenue performance should be considered in context of a relatively soft demand
Pragnyat Pravin Lalwani — Chairman and Managing Director
Environment during parts of the year,
PAVAN KUMAR — CHIEF FINANCIAL OFFICER
Particularly within the payment card issuance and renewal ecosystem including moderation in BFSI volume. Despite broadly stable performance on top line, consolidated profitability
Devesh Agarwal — Analyst
Improved significantly
PAVAN KUMAR — CHIEF FINANCIAL OFFICER
In FY26. The top 10 customers contributed almost 62.8% of our revenues and more than 96.6% of our revenues came from existing customers, showcasing the stickiness of customer relationship, strong renewal and
Devesh Agarwal — Analyst
Repeat business characteristics of our business model. On the balance sheet and cash flow
PAVAN KUMAR — CHIEF FINANCIAL OFFICER
Front we remained well capitalized. As of 31st March 2026. We had cash and cash equivalents of approximately 398 crores including the unutilized IPO funds of approximately 195 crores. With respect to the IPO proceeds, utilization remains in line with the stated objects of the issue. During Q4 funds were utilized towards capital expenditure, GCP and issue expenses amounting to approximately rupees sixty crores of the total IPO and pre IPO funds of almost 600 crores. We have utilized 405 crores as at the end of FY26 and the balance 195 crores is planned to be utilized in subsequent periods.
To summarize Q4, FY26 was a quarter of disciplined execution while continuing to invest behind growth and technology. Our margins, balance sheet strength and diversified revenue base provides a solid foundation as we move to the next phase of growth. Thank you once again for joining us with this. I hand it back to the moderator to open the floor for the Q and A session.
Questions and Answers:
Operator
Thank you. We will now begin with the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press STAR and two participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Devesh Agarwal from IIFL Capital. Please go ahead.
PAVAN KUMAR
Good evening sir and thank you for the opportunity and any congratulations on good performance. So my first question is on and around margin. If you see in the quarter we have seen gross margins kind of going up by 150 basis points. I thought because a lot of costs are import dependent the rupee depreciation will have a negative carry that hasn’t played out in fourth quarter.
Devesh Agarwal
Is that something that we need to worry about getting into one kit?
PAVAN KUMAR
Hi Devesh, there is Pawan here. I’ll take that question. So yes, our gross margins have improved in 4Q and that’s been a consistent trend over the last few quarters overall. Just to give you a summary of how the margins have improved. If I could give you an example, say in our top 50% raw material categories that we consume we’ve implemented multiple management initiatives including for procurement consolidation, advanced inventory planning which are aligned to global trade cycle and the payment being made more efficient.
These kind of sourcing optimization initiatives have caused about almost 7 to 8% savings as we’ve seen at the material consumer level for the full year. So that’s the benefit that we’ve got through the year and in Q4. Now specifically if I say for Q4 we see that there’s been an impact of adverse foreign exchange moments. While a material that we consume in Q4 a large procurement of that, a large part of that is also procured in early Q4 and towards the end of Q3. Now through Q4 one of the benefit that we’ve seen is with the higher sales which has come in from Q3, there’s obviously an operating leverage which comes in.
So that’s basically what has played out devesh in Q4 specifically. Overall, I think as we move along, you know, while that is on the gross margin side, to take it a step further, while the gross margins have actually moved below and help us increase the EBITDA margin and the PAT margin, it’s actually a function of two, three things. One, as I’ve explained to you, it’s on gross margin side. The second part is overall reduction in the finance costs in H2 of the year, which has helped us reduce the cost there.
And one third part is some interest income that we have earned in H2 post IPO fund. I think broadly, these four or five things have helped us increase the overall margins.
Operator
Understood, sir. If you see the balance sheet, we see that the working capital intensity
PAVAN KUMAR
In the business has been going up for the last two years. The number of net working capital days now that has been constantly going up. So is the working capital intensity increasing
Operator
Or is it something that gonna reverse in FY27?
PAVAN KUMAR
So I’ll take that Devesh as well. So while the working capital intensity has, you know, shows as it is increasing over the last, you know, maybe over FY26 and FY25, we should see it in two ways. One, at the end of the year, when you look at the balance sheet as of 31st of March, it’s the working capital is a function of what all is on the current asset side and on the liability side. So we’ve built up our inventory to be able to better navigate through these global challenges in Q1 as well as Q4 of the year.
And then the second part is post ipo, we have a good amount of funds which are showing under cash and cash equivalent. So that may probably give a bit of a lopsided picture as the working capital cycles have increased. But more or less, I would say the key factors there being inventory positions and trade receivables are more or less in line with the business. That’s something that we are continuously monitoring and working on as well.
Unidentified Participant
Understood, sir. And then one final
PAVAN KUMAR
Question on our IoT business,
Operator
If
PAVAN KUMAR
You can share some details in terms of new client wins and the traction that we are expecting to build up in FY27 from some of our existing clients.
Pragnyat Pravin Lalwani
Yeah, Devesh, thanks. I’ll take that question. Pragna is here. Essentially what we’ve seen in Q4 is that some of the large projects on which we’ve been working for a while, they’ve started gaining some momentum and they show some good promise for the coming year. So in the larger retailers customers that we’re working on, the approach is now to also go across from apparel into other categories which is to get into cosmetics, accessories, etc. Which is also a large volume item which needs to be brought into the digital transformation ambit.
We’re also working on projects wherein we are going to have localization of our inlay manufacturing now especially more so with the trust from the government side also to reduce import dependence. We’re also trying to ensure and see how is it that our local ship bonding manufacturing infrastructure can be utilized to ensure that we add more value to our customers as well as it will help us probably add value to our own bottom line by doing more inlay manufacturing within the country. We’re also trying to work on tier two.
So what we now seeing is since tier one customers have had very good success and the ROI has been demonstrated quite clearly in their RFID initiatives, we are seeing a lot of traction coming in from tie it to retailers who would also like to probably start this journey. So that is where we are focusing on some good size triode retailers. On the RFID side also, we harmonized our technologies between Bluetooth, GPS and RFID and come with some unique solutions where we are helping improve the resource visibility and efficiency in warehousing and logistics sectors.
So these are the four areas which we feel on the RFID side. On the SIEM side, as we have said that we have already begun revenue in Q4 of last year. So we feel that the foundation has been set for the last one and half year in terms of the infrastructure, the certification and the product stability. We feel the SIM and ESIM business will also be adding to the traction in the IoT business. So all in all, to our mind this vertical looks to really contribute meaningfully to our growth and overall revenue mix.
PAVAN KUMAR
Right? That’s helpful. Thank you so much and all the rest. Thank you.
Operator
The next question comes from the line of Raghav Maheshwari with Kamayakya Wealth Management. Please go ahead.
Unidentified Participant
Yeah. Hi. Thanks for the question. I had a bunch of questions. First of all, sir, can you elaborate a bit on ESIM manufacturing? We have mentioned Sim Slack, ESIM Manufacturing. So what happens when we talk about ESIM manufacturing,
Pragnyat Pravin Lalwani
Essentially how it works is that you know when with ESIMs typically are components which go into a circuitry of a device or an equipment or a vehicle. Right. So typically these ESIMs come in form Factors which are unlike a regular SIM card. And these ESIMS have to be then made ready for use on the field where for example it could be converted and connected to any mobile network operators in any geography all over the world. So ESIM infrastructure require that you are aligned in such a manner that what you produce is globally interoperable in the GSMA universe.
So we basically are managing the personalization and putting the embedded top up layer which is the profile required as per the device usage on the esim. And then also if the customer requires us to probably change the form factor and embedded into a probably into a form factor which they would want it to be a plug and play into their environment. So this is what is actually the ecm. To give a very small example, where ECM is working today is in electrical meters, right? You would have people coming in and taking meter reading on every single day.
But today the electric meters directly talk to the power distribution company. So this could actually sit inside the circuitry of a smart meter. There are various use cases of esim, but this is just one example of how ESIM operates.
Unidentified Participant
And have you gained any customers for this? Like where do we stand on the approval cycle?
Pragnyat Pravin Lalwani
As I said, we’ve just finished our GSMA SaaS audit. We need to have one more process that we complete by July, August as a part of this process. And once we complete that process then we should be starting to commercialize this. But in the SIM side of the business we’re already working with a leading telecom player to supply the SIM card to them.
Unidentified Participant
Right. And so when we talk about payment solutions segment we are continuously seeing, you know, a decline from FY24 to FY25, now FY26 as well. So is it because of the new product mix that we are going into or is it something.
Pragnyat Pravin Lalwani
See, look at it from a, from a. You know the payment solutions business was typically has two revenue drivers. The major one is the payment card business, right? Payment card business typically is driven by maybe if I may say four drivers, right? The first one is essentially the renewal cards which, which bank issue to the existing customers. The second one is new cards that are issued when a new account is open. The third one is credit cards being sold by banks in line with the credit card issuance policy.
And the fourth is obviously cards going out for transit programs for FinTech being selling for specific use cases, you have forex cards, etc. Now majority of the volume comes in is from renewal card base is an income base which has been built over by the Banks over the last couple of decades. So the major volume comes in is from your renewal card base. In the renewal card base, typically post Covid, which is 2020, March onwards, we had a lull for a year and about a year, year and a half. So typically what we’ve seen is that the renewal cycle have been impacted over the last two years.
Okay majorly, because one is the COVID impact. And also banks have been rationalizing their renewal process in terms of not so to our mind, this particular number correction which has happened is something which is an outcome of this factor. And now post Covid, if you see in 21, 22, 22, 23, there has been a surge in the banking sector in terms of volumes, etc. So our understanding is that at least on the renewal side of the business, we see for sure, we expect that the numbers should be better than what they were because of the COVID impact coming the new cards which are issued by banks of accounts and credit cards here it’s a factor of the bank’s policy at any point in time in terms of what is their strategy in terms of reaching out and onboarding new franchisee customers or their strategy on risk mitigation in terms of unsecured lending, how does the regular regulator increase the risk assignment to the unsecured portfolio, credit card, etc.
So here we are responding to the customer requirement. How we also try to maximize this is also to go up the value chain by premiumizing and going up the value chain by ensuring that we offer more value added offerings to customers for the same set of customer base, offer more valued services such as logistics services to them, offer metal cards to them, etc. And also we have seen very large traction in the transit program. For example, currently we are working with partners for three state government projects which have got pretty decent volumes of cards we rolled out for the beneficiaries under the state government schemes, free transport to the citizens.
We’re also working on some projects for Metro cars with more and more Metros coming in. So all in all, our understanding is that the payment card business, you know, the numbers which have come in, we expect this to trend to probably bottom out. And from here on we expect, you know, a better momentum to be seen for upward trajectory.
Unidentified Participant
And with the SIM card division coming live and approval cycle going on and the new plants coming, like you mentioned in the earlier remarks, plus all the new segments that you are exploring, assuming these are the growth years for FY27, would you like to give any common guidance as to where do we see from growing from this low base?
Pragnyat Pravin Lalwani
I would say definitely if you look at the momentum in Q4, we had very good momentum in Q4 and we see some of the projects that were on the annual probably moving into fruition in the coming year. However, considering the geopolitical situation and also the uncertainty, we would like to probably wait until Q1 where we get a better grip of the situation situation, better visibility and you know, in your position to give a guidance after Q1. That’s our take for now.
Unidentified Participant
I’m sorry to interrupt
Operator
Suraga, I would request you to please come back in the queue for further questions. Thank you. The next question comes from the line of Pratik bhatia that farmee 325 investment advisors. Please go ahead.
Devesh Agarwal
Hi. Congratulations on great set of numbers. Happy to see the strong scale up in the IoT division as well. So my question was regarding over the last 25 years it seems like every five to seven years, you know, our business tends to make a pivotal shift. So let’s say from checkbooks to cards to RFID tags to now ski sim cards, I just wanted to get a sense of, you know, what, what is the underlying guiding theme of our capital allocation strategy and should we expect the same strategy to continue over the Next, let’s say 10 years or so or would there be some tweaking required?
Pragnyat Pravin Lalwani
A very good question Pratik. See if you look at it from, you know, from a capital allocation perspective, while we were growing from part of our payment solutions business to our communication and fulfillment business and even today some part of our IoT business, right? The capital infrastructure, the equipment and the platforms that are needed, especially the tech platforms are the same, right? What typically happens is that every vertical has certain adjacencies and spin offs which require focus investments maybe into technology or maybe into some specific platforms or investments needed for a product.
So I would say obviously going forward as we move on and we go into more of IoT devices, there’ll be deeper investments going into technology. We will also be having to have resources which will probably focus on technology. The theme of the capex investment to my mind would not change drastically but but probably the allocation towards software resources towards technology contribution of the investment would go up. And if you will see one thing which is common across the whole theme of the last 25 years is that we’ve always gone for businesses which are having recurring revenue, business which need technology, businesses which need to scale and products which are mandatory or which are needed for an end customer’s functioning so we’ll be trying to keep those four or five probably mantras in all that we do in every vertical that we go to.
So we try and keep those as a guiding post in our future business expansions. And probably as the situation unfolds and the investment demands are there, we will allocate our capital accordingly.
Devesh Agarwal
Thank you so much. And could you provide utilization for the RFID capacity during the year as well as the quarter
Pragnyat Pravin Lalwani
Overall? During the year our RFID capacity was hovering around 70%. During the quarter we had some spike volumes of, I think we were probably close around 80, 85% capacity utilization during the last quarter.
Devesh Agarwal
Okay, and my last question before I get talking with you is, can you provide the capacity breakup for SIM as well as esim?
Pragnyat Pravin Lalwani
SIM is a very nascent business for us right now. So you know, we are probably on the same side. We are probably just around 30% capacity utilization of what the state capacity is esim. We are yet to start commercial production, you know, which we expect to start off, you know, once certain integration processes are are over and the final leg of our clients is done. So probably we will expect ESIM revenues to help us from H2 of this year.
Devesh Agarwal
So what is the installed capacity for SIM cards?
Pragnyat Pravin Lalwani
We’ve got a capacity to about 7 million Sims a month.
Devesh Agarwal
Okay. And ESIMS is, if you could provide,
Pragnyat Pravin Lalwani
I mean E sims business is the ESIM product is not a very standard product like the SIM product. Right. The form factor varies on the device. So conceptually we can easily do about 2.5 million Sims. But the form factor varies and it could probably be 2 million for one form factor and maybe could land up being similar for another form factor. So it’d be a range of between 2 to 3 million E SIMs a month.
Devesh Agarwal
Thank you so much. I’ll be coming back in the queue.
Operator
The next question comes from the line of Surya Narayan with Sunidi securities and Finance limited. Please go ahead.
Unidentified Participant
Am I audible?
Operator
Surya, we can’t hear you. Can you please use your handset?
Unidentified Participant
Yeah. Am I audible now?
PAVAN KUMAR
Yes.
Unidentified Participant
Am I, Am
Operator
I audible?
PAVAN KUMAR
Yes, you are audible.
Unidentified Participant
Am I audible?
PAVAN KUMAR
Yes, you’re audible to us. Go ahead. Okay,
Unidentified Participant
So my question is that, you know, in the IoT solutions, what are the new. I mean you said that now the improvement in the gross margin is due to the product mix. So, so compared to last year, if you can in detail out what are the product mix changes, number one and number two is that what are the new sectors? I understood that there are a lot of sectors like Solar sectors where the applications are there and apart from many other sectors are lying ahead. So my understanding that now where we are not present, let’s say maybe at the moment, what are the new sectors we are targeting going forward?
Pragnyat Pravin Lalwani
Okay, so there are three parts to your question. The first part is you want to have an idea about the product mix. Right. So typically the product mix change is there for each and every vertical. But conceptually the approach to the product mix is that we try and work with the customer to ensure that we get greater market share of the premiumization of the products that they do. Okay. And also we try and add go up the value chain. For example, if you’re not offering logistics service to a customer, whether he’s in the payment solutions business or the company and fulfillment solutions business, we try and ensure that we get the end to end piece of the entire chain till the customer deliveries.
So that adds to our product mix. Obviously Metalcard is a growth engine for us which is also going to be contributing to the product mix from a better margin on the IoT side of the business. To answer your question as to what are the sector that we are not working, let’s see you rightly say we are already working in renewables. Now there, just apart from only giving the tag, our team has been working with some of the large brands to working on reducing the demand for utilization. We’ve been offering some automation solutions onto their lines for the solar panel manufacturing, offered them something to aid their quality control process, etc.
So which makes the relationship stickier, gets better value in terms of the account revenue and obviously the product mix goes up the value cycle. Now if you ask me which are the areas which you are not working on today and which show great promise in the future. Just to tell you that grocery and pharmaceuticals are the two themes which are globally picking up pace in the western world and typically the nature of the way it functions. Probably we May lag maybe 12 to 18 months for a rollout in India.
But because India is the large pharma outsourcing factory of the world, we already doing small POCs there. But grocery is one very, very huge opportunity which has already gone live with some large brands in Europe and US and we haven’t tapped those opportunities in India yet. So probably to answer your question, two large opportunities which we have not worked with but which are going to be very promising in future is grocery and pharma
Unidentified Participant
In textiles. Also sir, the traceability is a factor where you know there are a lot of opportunities are there especially when the EU FTA and UK FTA will be coming. So are we working towards that. In the traceability sector
Pragnyat Pravin Lalwani
There’s a concept known as European Union digital passport which requires end to end traceability for everything that is going to be imported in the European Union. But you know, there are multiple ways to achieve that. You can achieve that using QR codes, you can achieve that using barcodes, you can also achieve that using rfid. So we’re just kind of talking to large exporters who need these facilities. RFIDs for example for Walmart, they’re already Walmart approved vendor list for rfid. So I think EUDP guidelines may not really mandate rfid, but wherever the opportunity exists, you know, for traceability, I think it will only go in RFID in EUDP will go in only in items which are having high value, which are very critical, especially related to health and safety.
So probably it’ll be a mixed bag opportunity there between conventional traceability products and rfid.
Unidentified Participant
Okay sir. In terms of global capability of ours competitiveness. So just to want to understand because most of the products are also can be adopted by any, any of the countries, so globally, how much we are competitive compared to leading players, leading countries, if you can give some ballpark figure to understand so that no, we can also go global.
Pragnyat Pravin Lalwani
Good question. So I would say first we need to understand that the RFID frequencies vary for every country. And obviously in India we have a certain frequency range within which the products are produced and used. Now typically in the RFID ecosystem, what really matters is how much innovation are you able to do for a specific customer. Problem solving or customer use case which requires, you know, strengths of antenna design, antenna simulation, R and D labs also requires test bench to test the performance of this in the environment and also then produce it and scale it and do your own semiconductor chip bonding.
So probably this particular process is a science, right? And we’ve been working on it for the last two and a half years, seen some good success on solving some customer problems for large retailers where we’ve domestically innovated and created very cost effective solutions to meet their traceability needs. To answer your question, from a global perspective, an opportunity presents itself. Probably we have the know how, the team resources and now the understanding of technology good enough to be able to compete with the best in the world.
It’s just a matter of we first trying to focus on the domestic market, getting our act together, getting a few good cases under our belt and then we will work with partners to explore the global market.
Unidentified Participant
Understood. Thank you sir. Thank you.
Operator
The Next question comes from the line of Zaki Nasser, an individual investor. Please go ahead.
Unidentified Participant
So am I audible?
PAVAN KUMAR
Yes, sir. Go ahead,
Unidentified Participant
Sir. Congratulations on pretty stable set of numbers, sir, going forward, our issue, public issue, was hardly six months back and we had a certain value proposition for the company. So do you think that going forward in the current year that value proposition will play out, sir, with a small lag because we came at a certain valuation and maybe, maybe the markets, maybe a small lag in the performance coming in or maybe just the percept perception that investors have not understood the company well, sir.
So your thoughts on this issue, sir, thank you.
Pragnyat Pravin Lalwani
Our thought is that we always believed in performance and we believe in growth and we continue to reaffirm our commitment to those two attributes. To my mind, our job is to ensure that we grow, we innovate, we deliver and remain profitable how the market perceives us on our hand in terms of how we communicate, how we, and this is one exception, exercise in the direction now how the market value itself, sir, is a matter which is probably left with the market. But at our end, we are ensuring that, you know, whatever our story, whatever our probably business focus which was there prior to the ipo, during the IPO still remains.
There’s absolutely no loss of focus or loss of business intensity from our side. And probably, as we said earlier that many times, you’re facing some structural headwinds because of factors beyond our control which are more to do with regulatory in nature, which are also need to be the nature of the consumption pattern. We feel that those are behind us now. And Also with the IoT engine growing well, for example, last year in the IoT business we grew close to about 48%. We expect to at least match that, if not better that number in the coming year.
And also we see some stability in our communication fulfillment business. There could be a marginal decline, but overall we are fine with that. And as I said earlier on the metal card side also, we have good visibility this year in terms of growing that business as well as the base payment card business. So from our perspective, we still carry the same value proposition that we carried prior to the IPO along with the ipo. And we just hope that the environment allows us to amply demonstrate our intent and execute and deliver on that.
Unidentified Participant
Would you say that see, of course, the fund’s implementation of the IPO and it will take a lag of a couple of quarters. So do you think the full potential of the SSI will pan out in the current year? Sir,
Pragnyat Pravin Lalwani
I think whenever we operate sir, we try to operate at our full potential as I said earlier. Also see we need to understand the nature of our industry and nature of our products. See, we are an industry which is probably a product led industry also having the pseudo nature of a services industry, right? Quite a lot of our demand is generated by our end customers whose demand is also generated basis, as we explained earlier, certain factors which are driven by their strategies, driven by the regulator, driven by the market.
So there we are probably working on a back to back business model basis where however customers strategize their business demand. One thing I’ll assure you is that at cgci where a customer demands and customer needs us to scale, when customer needs us to deliver, when customer needs us to ensure we innovate, we are there, right? From a business side, we have not essentially lost any major account. We ensure that our shares in those accounts remain the same. We have also ensured that for example, we’ve added 21 new accounts in the payment business this year.
We’ve added close to 65 new customers in the IoT business where it close to eight customers in a CFS business. So from our perspective the energy and the zeal is there to grow. Probably some of it is definitely a factor of how our enterprise customers themselves generate demand. But I can assure you that from our side, in any given year we are here to perform to our full potential. We should just wait for the circumstances allow us to do that.
Unidentified Participant
Thank you sir. Best wishes. Best wishes.
Operator
The next question comes from the line of Yashwant Shubham with icici. Please go ahead.
PAVAN KUMAR
Hello. Hello. You’re audible.
Unidentified Participant
Yeah, yeah. So I just wanted to ask on the international front like how is the expansion plan going on currently? What war situation? And also if you have any setup, any personalization bureau in any country. And and one last question on the revenue front like what is a portion of a international revenue on the. In FY26 or Q4? Q4.
Pragnyat Pravin Lalwani
As part of our strategy, at least for FY26. Okay. We’ve been working on some international opportunities where we’re working with partners in those countries and we strengthen our partners and work on a back to back basis with them on the local opportunities on which they have been working in. This year we will be deepening our focus on the international opportunities especially on some of our niche products both in IoT and the payment solutions business. For this current year we do not have any plans to open a personalization bureau in the overseas market and we also probably are focusing on, to answer your question on the revenue in FY Pawan will take that please.
PAVAN KUMAR
Yeah, so we do not have a significant export revenue currently. However we’re working on some of our products and evolving the portfolios on that. For revenue on exports has been about 3 crores in FY26.
Unidentified Participant
Okay, and last question. If you have any like any contracts or any agreement under discussion with on the international front currently going on,
Pragnyat Pravin Lalwani
As I said in, in my opening remarks that there are some large overseas fintech players who shortlisted us in their global rfp. So there are on which we are working right now but they are still under stage of evaluation. So we do not have revenue visibility as of now on that. But it’s been a process through which we’ve gone through for almost about last four to five months and we, you know, expect some positive outcomes from that.
Unidentified Participant
Yeah. Thank you sir.
Operator
Thank you. The next question comes from the line of Vedant Agarwal with IFL Capital. Please go ahead.
Unidentified Participant
Thank you for the opportunity. First of all, it’s a great set of numbers. I wanted to ask that what are the type of guidance that you’re building in for SS27 if you could share the YY crow for all the three business segments. And one more question that what sort of a capex can we expect going forward?
PAVAN KUMAR
So Vedant. Hi, this is. I’ll answer that. So as we discussed earlier in the call, considering the existing geopolitical situation and.
Operator
I’m sorry to interrupt sir, on the management line there is some disturbance. Sir, if you can come closer to mic and speak.
PAVAN KUMAR
Is it better now?
Operator
Yeah, it’s better. Thank you.
PAVAN KUMAR
So yeah, my answer to Vedant at this point in time it’s difficult to give guidance for FY27 considering the macroeconomic environment etc. So we’ll refrain from doing that and see how things go and you know, probably see back on this at the end of Q1 on the CapEx side we have a plan of, you know, investing close to about 160 to 200 odd crores through the year across payment solutions and IoT business verticals as well as overall, you know, modernization. Some funds would come in from the IPO fund.
Unidentified Participant
Okay sir, thank you so much. That answers my question.
Operator
Thank you. The next question comes from the line of Maitricha with Sapphire Capital. Please go ahead.
Unidentified Participant
Yeah, hello, I’m audible.
Devesh Agarwal
Go ahead.
Unidentified Participant
Yeah. Thank you for this opportunity. Just one question. So once the IoT solution kind of scales up with SIMS and ESIMS going forward for the next year, how do you see the proportion of the business kind of change that the kind of business mix is changing, which is helping out with the margins. So do you expect the IoT solution to start contributing close to 20% of the overall revenue and how do you see that kind of growth scaling up and then kind of like effect on margins growing for the next one to two years?
Pragnyat Pravin Lalwani
We’ve grown in the IoT business pretty strongly over the last two years and as I said, this year the IoT business grew, I think 47% y o y between FY25 to FY26. So the current business outlook that we have for FY27 on the IoT business, we expect that number should be definitely better than what the this year was. We should be definitely growing up 47% on the IoT business. And obviously if we continue to grow at that brisk pace, the overall contribution of IoT to the revenue will proportionately increase as it has been doing over the last few years.
And as we see the IoT business, the nature of the business as it is, it would contribute more meaningfully towards the overall margin.
Unidentified Participant
Any quantification on how you see the margins getting up to the 1:1 next year, year and a half, Any near term guidance on the margins you have with the SIM and the ESIM coming in and this business kind of contributing more?
PAVAN KUMAR
I’m sorry, but
Unidentified Participant
I can’t hear you clearly.
PAVAN KUMAR
Any better now.
Unidentified Participant
Yeah, yeah, better,
PAVAN KUMAR
Yeah. So on the margin side as well, while we got a good set of numbers by 26 and 8, we’d want to, you know, probably wait and see how the situation evolves in terms of the foreign exchange pricing as well as the input prices across materials which are rising and see how the situation evolves
Devesh Agarwal
To get
PAVAN KUMAR
A better sense of the numbers for the full year. But as we, as Mr. Pranyat said, as the product mix moves with IoT and ESIM and other solutions, we definitely expect good set of numbers.
Unidentified Participant
Yeah, that is it for my side. Thank you. All the best.
PAVAN KUMAR
Thank you.
Operator
The next question comes from the line of Chintan Shah from JM Financial. Please go ahead.
Pragnyat Pravin Lalwani
Hi. Thank you for the opportunity. So I have three questions. So first one is needed more clarification on speaking that we have secured for metal cards. So just wanted to know, does this sort of grant any exclusivity
Unidentified Participant
To us that scarves can be manufactured only by us and not peers or is it something else?
Pragnyat Pravin Lalwani
How the patent regime works, Chintan, is that you file a patent for some innovation that you’ve done and some novelty that you achieved in producing that Product. Right. So as long as we are producing that product, you using that patent, you know, you will be obviously producing an absolutely trouble free with that patent. While it gives a person a patent or use that product or manufacturing a certain way, it does not refine anybody else if he’s got another novelty and innovation to produce his product.
Right. So that’s how the patenting regime works. That if, if there are, you know, multiple people who got their patents granted for the way they produce their product, they can continue to produce that product provided they comply with the process that they define in their patent.
Unidentified Participant
Got it? Understood. So just one more follow up here. What would be the mix of say metal cards which are probably in terms of value for FY26 and with this patent now in place, does it mean that from year on we could have more discussion with clients and probably we could see a meaningfully higher growth versus in the past?
Pragnyat Pravin Lalwani
I’ve got this question for a couple of people. I don’t know where this country is getting created in the ecosystem. I’ll just try to clarify this. We have filed for a patent in October of 2021. Okay. So when you have a novelty and you file for it, you’re protected from the day you file it. So there’s never a case that you produce a product and then you can get patent granted and then you can go to sell. We’ve been selling for the last three years a product which has been protected by our own IP and our own novelty and innovation.
Right. It just the process takes time, you know, to get granted. So from a business perspective there never was any difference ourselves or the way we are offering the product to customers and always remain protected. So I don’t think, because anyway a big business enabler, it becomes, I would say disabler, but becomes a big enabler now, now that it is granted and you know, then you know, we are in a better shape to ensure that using is not strong, risked or violated by anybody else. Yes,
Unidentified Participant
Got it. Understood. That’s very clear. And if you could call out sort of a mix in our payment solution business. The metal card mix.
Pragnyat Pravin Lalwani
Yes. I would say right now the metal card overrun of payment business contributes close to about 4%. Okay. And we see that in hopefully to improve the coming year.
Unidentified Participant
Got it. Understood. And secondly on the RFID side, so we were in the process of starting to monetize our software aspect as well. So just wanted to know from your side if there’s any update out there and are they seeing any traction with customers.
Pragnyat Pravin Lalwani
We’ve done Some interesting checks. Yeah, I would decide. So for example, we’ve done a project with a large power generating company where we rolled out our software using Bluetooth and RFID for handling your assets on a 10 square kilometer large plant where our software is both in the handheld devices. We’ve taken a very calibrated approach here and going with specific use cases. There are I think couple of them which have been rolled out now. Now with that behind us we will be probably focusing on larger opportunities or rollouts into larger ecosystem.
Operator
Got it? Understood. That’s good to hear. And just last question from my side. Are we sort of any plans to do some backward integration into chips for a solution business or.
Pragnyat Pravin Lalwani
I think Chintan, we probably parked that question for some time. You know we. Once you make some good progress on that, we’ll probably share that in due course.
Devesh Agarwal
Okay. Okay, fine. I got it. Understood. Thank you so much for answering all the questions.
Operator
The next question is a follow up question. It’s on the line of Pratik Bhantia. Please go ahead.
Devesh Agarwal
I just wanted to ask you stated about you know, you know, doing inlay manufacturing in house probably in the future. So what kind of margin impact does you know, backward integration, you know, bring in and any aspirational timeline of you know, when you would want to start doing Indian manufacturing.
Pragnyat Pravin Lalwani
That’s a good question, Pratik. See I’ll tell you. We already have our equipment for. For India manufacturing for the last two and a half. Now this is a very probably sophisticated and intricate process because we’re handling very, very, you know, nano wafers and putting them onto. Onto RFID antenna. We also as a part of the IPO process scaled up a manufacturing and now we have three plants and do the manufacturing current situation especially when the supply chain to be constrained challenges to come in in terms of the supply volatility due to the currency fluctuation.
We feel this is going to be a very strategic tool for us to increase our market share, to increase our profitability and also to make contribute to the nation in terms of risk. Depends. We’re already working on our own RFID inlays for the solar market and. Cosmetics industry. So the. The local inlay manufacturing has. Sure. Definitely. When we buy the inlay from a third party versus when you make the inlay yourself, it’ll have better margins. We will need to reach a little more scale by which time we will.
We will have meaningful contribution of it towards the bottom. Hello.
Devesh Agarwal
Hi. I think there’s some disturbance on the line.
PAVAN KUMAR
I hope the last answer was Clear.
Devesh Agarwal
I just heard I need a little more scale for starting engine manufacturing. Is that right?
Pragnyat Pravin Lalwani
Yes. I just said that we, we, we’ve kind of now slowly scaling up the India manufacturing. So once we slide scale then it’ll contribute more meaningfully towards our bottom line in terms of saving costs.
Devesh Agarwal
Oh okay. Thank you so much. That answer. Thank you.
Operator
Thank you. The next follow up question comes from Suya Narayan. Please go ahead. Your line has been unmuted. Please go ahead with a question. Oh Surya Naran, your line has been unmuted. Please go ahead with your question. Hello. Yes.
Unidentified Participant
Yeah, so just to understand the margin improvement likely from here onwards due to the backward integration. So what kind of margin increment possible for FY27 and 28?
Pragnyat Pravin Lalwani
As we said due to the current geopolitical situation, the macroeconomic factors, the currency fluctuation, the challenges that every business is facing in terms of times, you know, probably would not want to give any guidance at this stage. Travel some more distance and have better visibility on how this whole crisis is playing out then you guidance.
Unidentified Participant
Okay. And so in the, in the payment solution business, what is the current market share in the banking industry we are having and what kind of vision we carry for FY30?
Pragnyat Pravin Lalwani
Basically the market share data which was last published was on FY25 by the analyst there. We had a market share of 31.6% of the payment cards market in India. Now as we said for FY30, you know, our approach has been constantly ensure that we are relevant to the customer, customers evolving needs. So we are focusing on premises and we are focusing on metal cards. We also certified by payment schemes, biometric cards. We see sustainability being a very important aspect for banks where they would like to ensure that their carbon footprint is reduced.
They have their own sustainability goals. So we’re also working on sustainable cards, both using recycled PVC as well as for wooden cards. And obviously as the new generation comes in, there are new payment form factors coming in. We’ve done some innovation around feature phone automation, new technologies for some large public sector banks which we cannot reveal under NDA. So our approach has been to always keep innovating as to what are the evolving needs of the customer and the customer customer and remain relevant.
So you can be rest assured that whatever is the payment landscape by 2030 CCI would be a sizable value contributor in that ecosystem.
Unidentified Participant
In the card business, what is the current percentage of non NBFC business we are having?
Pragnyat Pravin Lalwani
Non nbfc?
Unidentified Participant
Yeah,
Pragnyat Pravin Lalwani
Essentially most of our customers are non NBA customers which are basically
Unidentified Participant
Sorry, I’m sorry, bfsi. Sorry, not mbfc, bfsi.
Pragnyat Pravin Lalwani
Oh, okay. So probably, you know, we work the long BFSA customers are typically customers who work as system indicators for transit. So your voice
Unidentified Participant
Is cracking, sir.
Pragnyat Pravin Lalwani
Basically the non BFSA customers are customers who work as system integrators for large transit projects. Some of them who work of forex cards, gift cards, etc. Probably the long BFSI in the, you know, payment card business, you know, is close to. It’s close to what, about 4% of the total payment card business. Yes.
Unidentified Participant
Okay, so. So there are a lot of other programs of the government not, I mean in for, for many programs, social welfare programs. So are you also interested to look at those spaces considering the challenges from the government side? I mean, in terms of working capital issues? So are we interested to have all those areas in our portfolio?
Pragnyat Pravin Lalwani
Good question. I’ll break it into three parts. See, one is the banks issue Mudra cards, the bank issue Kissan credit cards. Okay. The bank also issues a financial income so that obviously we do it being a service provider aligned to a particular bank who’s conducting that program for the respective government agency. Okay. So we do that mandated by our banking customers. On the second side, we also work on projects where for example, there’s a free transport offered to a certain entitled category in a state.
Okay. It could be also for students, senior citizen, it could be for veterans of the armed forces, equipped for women. They are the system integrators. And we work back to back where we give them the cards, we share the wallets onto them and the wallets are structured in such a manner that the discounting of the beneficiary is reflected under the wallet logic built into the card. So we work right now we work on three state government projects which are for beneficiaries for transportation, you know, probably announcement, which have been done as part of the government’s, you know, manifesto.
And the third aspect which we are seeing some interest now, we are working on some pilot projects where certain state governments are evaluating, working on a single card platform across multiple benefits that they are giving. You know, it’s just at a conceptual stage now, but you know, as it evolves, you know, we would like to play a role there as well.
Unidentified Participant
Okay. Okay. Thank you sir.
Operator
Thank you ladies and gentlemen. That was the last question for today. I now hand the conference call over to the management for closing comments.
Pragnyat Pravin Lalwani
It has been a pleasure interacting with you all today. We appreciate our continued trust and support. Thank you.
PAVAN KUMAR
Thank you once again everyone for joining us today. It was lovely interacting with all of you. Thank you so much.
Operator
Thank you. On behalf of Sheshasahi Technologies limited that concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank you.