Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Subex Ltd (NSE: SUBEX) Q4 2026 Earnings Call dated May. 13, 2026
Corporate Participants:
Pratik Jagtap — Senior Associate
Nisha Dutt — Managing Director and Chief Executive Officer
Unidentified Speaker
Analysts:
Unidentified Participant
Presentation:
Operator
Good morning, ladies and gentlemen. I am Madhuri, Moderator for the conference call. Welcome to Subex Limited Q4FY26 earnings conference call. As a reminder, all participants will be in listen only mode. And there will be an opportunity for you to ask questions after the presentation concludes. Should you need any assistance during the conference call, please signal an operator by pressing Star and then zero on your touch stone telephone. Please note that this conference is being recorded. I would now like to hand over the floor to Mr.
Pratik from Investor Agency. Ey. Thank you. And over to you, sir.
Pratik Jagtap — Senior Associate
Thank you, Madhuri. Good morning to everyone who have joined the earnings call for the quarter ended March 31, 2026. I would like to introduce the members of the management who are present for the call. Ms. Nisha Dutt, Managing Director and CEO. Mr. Sumit Kumar, CFO. Mr. Harsha Angeri, Head Corporate Strategy and AI. And Mr. Ramu Akili, Company Secretary and Compliance Officer. I would like to start the conference call by going through the safe harbor clause such Statements in this presentation concerning our future growth prospects are forward looking statements which involve several risks and uncertainties that could cause actual results to differ materially from those in such forward looking statements.
These risks and uncertainties relating to these statements include, but are not limited to, fluctuations in earnings, our ability to successfully integrate acquisition competition in our areas of business, client concentration, liability for damages in our contracts, withdrawal of tax incentives, political instability, unauthorized use of intellectual property, and general economic conditions affecting our industry. With this, I now hand over the call to Nisha Dutt to take it forward. Over to you, Nisha.
Nisha Dutt — Managing Director and Chief Executive Officer
Thank you Pratik. Good morning everyone and thank you for joining us today. I’d like to begin with a brief reflection on my tenure here. Particularly at this moment marks not just the close of the quarter, but also end of the financial year. I’ve been here for three years and when I came in, I came in with a clear mandate. It was to transform Subex and return it to a growth path. In this time we have strengthened the fundamentals. We have exited non core businesses, we have freed up capital, we have rebuilt the foundation that this company needed.
Many of you have tracked this journey closely and I believe the first phase of that transformation has been delivered. And this is not just a claim. I think it’s a fact that’s visible in the numbers and in the business that we are running today. If I were to look at this year, I would think that this was a year of transition for us. We had leadership changes, board evolution and a very challenging macroeconomic environment. But these are not small changes. So I won’t minimize any of that. But I also don’t want it to let it define the narrative because the narrative of FY26 is something very different.
We didn’t just hold steady through the change, we actually moved forward through it. Our order intake grew 24%, we released new products, we went to the market more aggressively, we won more deals, we included more AI deals than any other prior year. We also took on more AI models into production this year than ever before on the board. I’m pleased to share that we have also added another independent director, further deepening the experience and perspective around the table. So this is not the signs of a distracted business.
This is a business that reset and kept building. And by that measure, this is one of the strongest years in the last phase. And that was the original promise and I think we have delivered it. I’m aware that we could have moved faster on the top line and I own that.
Unidentified Speaker
But
Nisha Dutt — Managing Director and Chief Executive Officer
I also want to be very unambiguous about the growth. I think that is going to be my singular focus in FY27 on Q4 we closed the year with a 3% sequential growth full year FY27 total income came in at 6% YoY. It was broadly supported by interest income. We are growing but we are not at the rate that I would have liked us to set. So I’ll be direct anytime that you ask that question of me. But one important context is important. It’s important to remember before I go deeper into the numbers. FY26 and FY25 are not clean like for like.
If you remember, we exited non core businesses last year which means that we are comparing against a different base. So if you split that out, the underlying picture is cleaner than the headline suggest. On profitability, our EBITDA is at 14.5% and PAT at 13.6% for the quarter. Positive EBITDA in nine out of the last 10 quarters. Three successive quarters of positive facts. That consistency does not happen by accident. It reflects three years of genuine operational discipline and it gives us a platform to accelerate from, not just a baseline to defend our liquidity also strengthened by 70 crores over the year.
And I want us to sit on that for a moment because this isn’t a balance sheet footnote. It changes how we operate. We can now invest with conviction, move on opportunities from a position of strength and stop managing defensively. That is a materially different posture and we intend to use it for you. And when I look at all of this together, the profitability, consistency, the liquidity strength, the 24% order intake growth, the AI traction, the quality of wins and then look at where our share price sits today.
It’s very disappointing for me and I’m sure a lot of you that the market has not really caught up with the business. So I truly believe that the stock is materially undervalued relative to our fundamentals and our trajectory. And I think that gap will close and we intend to close it by executing. The fundamentals are in place, the pipeline is converting. So let me walk you through what that looks like on the ground. New logo in North Africa for our enterprise asset management solution. Our competitor account we won back for business assurance in Middle East.
In my view one of the clearest signals where our product’s credibility stands today. Customers don’t come back unless a product has earned it. A new deal in North America for AI handset fraud solution on Frauds app and a T1 operator in Africa who didn’t just renew their Managed services engagement. They expanded it into AI use cases. That last one matters because it shows that the existing customers are deepening their relationship with us and that’s the leading indicator of where this business is headed.
Three geographies, multiple solutions and increasingly AI. At the core of it, we are also making sustained investments in gen AI based software development. We are embedding JI across our entire sdlc. It’s to lift our developer productivity, accelerate releases and raise the quality bar on what we ship. So this is not just a one off initiative, it’s a structured investment in how we build and how fast we the compounding effect of IT will show up in our ability to deliver to customers and to the market.
And now on FY27 we are six weeks in. The geopolitical environment is complex and I won’t pretend that we are immune to it, but we are watching it with clear eyes. But here is what I keep coming back to. The pipeline is real. The market conversations are strongest that they have been and for the first time in years we have the balance sheet to fully back our ambitions. We are going into this year on the front foot, not hoping for growth, but we are organized and resourced to deliver it. So I believe that the reset is done, the foundation is built and FY27 is where we will convert it.
So next I will quickly cover the consolidated financial results for Q4. All the numbers are in. INR revenue for the quarter stood at 72.96 crores as against 70.79 crores for the previous quarter. EBITDA for the quarter was at 10.58 crores as against 9.1 crores for the previous quarter. Normalized PAT for the quarter is at 11.51 crores as against 7.68 crores for the previous quarter. And pact for the quarter stood at 9.93 crores against 2.9 crores including exceptional item in the previous quarter.
And thank you for listening. I don’t just brace for your questions, I welcome them. So let’s get into it.
Questions and Answers:
Operator
Thank you ma’. Am. Ladies and gentlemen, we will now begin the question and answer session. If you have a question, please press Star and one on a telephone keypad and wait for your turn to ask the question. If you would like to withdraw your request, you may do so by pressing Star and one again. Dear participants, if you have any questions, please press Star End 1 on your telephone keypad. The first question comes from Mr. Ajay Doshi, an individual investor. Please go ahead. Please go ahead with your question sir.
Jai. Sorry, there is no response. The next question comes from Sanjot Kharif, an individual investor. Please go ahead.
Unidentified Participant
Hi, good morning Nisha, I’m Audible.
Nisha Dutt
Morning.
Unidentified Participant
Hello, good morning, can you hear me?
Nisha Dutt
Yes you are. Hi, good morning.
Unidentified Participant
Yeah, yeah. First of all congratulations on a good set of numbers and good operational results. And in last five years I think this is one of the best result as we have been in the company for a long time. And just my question is about we are seeing the sequential growth of around 3% in revenue and in last one year I think company has got orders more than 150 crores mostly in whatever announcements were done by the company. Now is it really not converting into revenue how or when it will get converted more into revenue?
Is it because of whatever the geopolitical problems are happening and the orders are not getting delivered or closed for converting into revenue? And are we seeing that at least for Q1 whether the revenue will grow faster than earlier quarters?
Nisha Dutt
So thank you for that question. I think it’s right that we are entering the year with a strong backlog first of all and we also have a strong pipeline and the order conversion that has happened. But the way our contracts work is first of all most of the wins that we have had last year, they are as much for this year but they are also for the future years. Right. So we do have multi year contracts. So you have to see it in that perspective. There are two ways to look at it. It also gives us annual revenue as we go into the future years.
So one is we are entering the year with strong backlog. The other thing is that for all the contracts that we won last year, we have started executing those. So once we complete the implementation phase of our product, our subscription revenues will kick in and that’s when you will actually see a lot of upticks. But I do expect in the future quarters as we go through this year you will see that as we move from quarter to quarter our conversion will look better and better because that’s how it works.
Because as you get to the end of the implementation cycle, your revenue starts. So we are expecting to see an uptick on the back of what we won last year.
Unidentified Participant
Sure, thank you for that. And the second question about how this market situation now because of whatever the geopolitical things are happening and a lot of, a lot of work Subics is doing in Middle east as well as the countries which are impacted by initial politically. So that is one impact and second again the AI impact which is coming up and a lot of These companies, Anthropic or OpenAI, are coming up with a lot of offerings which are complementing offerings given by some companies. I don’t know how that is impacting our company subbing.
So these two scenarios, how things are getting impacted for the subbing.
Nisha Dutt
So on Middle east, see the risk is actually so obviously, you know, it’s. First of all, it’s very unpredictable. As you know, all of us know that situation is changing on day to day basis. So it’s become a little unpredictable for us. And we do have quite a bit of exposure in Middle East. But that said, what we have done is that we do have a Middle east mitigation plan, right? So a lot of our delivery, for instance, have moved offshore. We have offshore our delivery already. So last time when actually the war broke out, we moved a lot of resources offshore and we are continuing to work with our partners.
They are also very supportive in Middle east for offshore delivery models. So to the extent possible, we have avoided the exposures and the work continues. We are doing it offshore instead of onshore right now. So we are also going back to a cop with protocols. So we are adopting some of actually and moving it. So in some sense we are able to mitigate it. I think there are two parts to the risk, right? One is delivering on the projects that we already have won. The second part is there we can control it by offshoring some of it.
The second part is will you get the renewals that you were expecting and you know, will you still win a lot more in that market? So in that renewal I think we seem to have a good control on the renewal part of the story because customers are still working with us. So we are very confident that we will get the renewal. On winning the new business is where we might struggle a little bit because it depends on how fast the customers will move with allocating money to newer projects. So that’s where a little bit of uncertainty comes for us as for I think everyone else.
So if I were to think about it, I would say that we have a strong mitigation plan. Two of the three buckets are kind of, I would say a lot more under our control or we are able to exercise control unless it breaks out into a much large, bigger thing than it is right now. But currently as we stand, we are able to control it quite a bit on the Middle east exposure, on AI. I actually think of AI, you know, OpenAI as a tailwind actually for our business. We are what we call and you know, for those of you who have Been following there is something called, you know, system of record SOR that there is system of intelligence.
Right. Soi. So what we think of our systems as we think of ourselves as sor actually where we are embedded in telcos. So we are the system of records and we are strengthening that and we deal a lot more with qualitative as well quantitative data. Right. So what we are trying to do is we are trying to build an SOI layer on our system of records and trying to control that whole stack. So for us it’s been a tailwind. Actually. I don’t see think of it as distributed. If anything, I think it’s giving us newer tools to actually go out in the market and build intelligence which we were already sort of, you know, sitting on.
I don’t see it as a threat right now. Honestly, if anything, we are very excited about what’s coming because it’s giving us productivity internally, it’s helping us move faster, it’s helping us build a lot more faster. So I truly think of it as, you know, about honesty. So.
Unidentified Participant
Oh, that’s great. And my last question is about as Q2 and Q3 of last financial, we are seeing a lot of orders. One, even the value of the orders were also high in Q4. It has gone down a little bit or the orders are reduced and yeah, it’s obviously some delay in decision making or maybe what the things are happening. But are we saying how are we seeing like a demand for the services offered by subics in other markets which are not directly impacted by the geopolitical. So are we seeing that the traction is better and the things are moving forward and things may get close in Q1 and Q2, more deals may get closed in Q1 and Q2?
Nisha Dutt
Yes. See the deals that you saw in Q3, so what happens is that there are two types of, you know, businesses that we do, right or the deals that we win somehow we call them as, you know, the blockbuster deal. So some of the deals that you saw last year, for instance, you know, the one over 6 million or those, those are blockbuster deals for us. They don’t happen. That’s that they don’t happen every quarter, but when they happen, they come with a big number, right. On a quarterly basis and on a business as usual basis, our deal sizes are in the range of, you know, a million, a million and a half.
That’s what you see typically. So that’s the cycle. So anything that goes over a 2 million, 3 million is a blockbuster deal for us. So. So you have to Feed with that, a little bit of that perspective. We continue to build, in fact our backlog, like I said, right? Our backlog is very strong and our oi. And when I say oi, that’s our order intake. Our order intake last year was 35% higher actually than any other year. So we have done some amazing work last year. So we do that. That gives us a sense of backlog as we enter the year and we continue to see that momentum actually.
Even from Middle East, I would say, not just from other geographies. Even from Middle East. It does that in Middle east, like you said, the deals are won, but sometimes what happens is the I is not dotted and the T’s are not crossed. So at the end moment, you know, there are some contracting delays that are happening, but otherwise the deal win is still there actually. So I still think that we are, you know, we have a lot of momentum in the market right now.
Unidentified Participant
That’s great. And I’ll come back in the queue. Thank you very much and all the best.
Nisha Dutt
Thank you.
Operator
Thank you, sir. Participants are kindly request to ask two question in the initial round and may join the queue for more questions. And the next question comes from Abhishek Kale, an individual investor. Please go ahead.
Unidentified Participant
Hey, am I audible?
Nisha Dutt
Yes, you are.
Unidentified Participant
What are our margins for the three service verticals?
Nisha Dutt
You mean the rafm or. Oh no, you mean the license and.
Unidentified Participant
Yeah, we have categorized our revenue by three segments, right? Oh yes, yeah,
Nisha Dutt
Yeah. License, implementation and
Unidentified Participant
What are our margins there?
Nisha Dutt
So typically license is highest, as you can imagine. That’s typically, you know, like 100% margin, right. On license 90. 90, you know, very high margin for license implementation. Margins vary from project to project depending on, you know, what your. What is the complexity of the project? But typically I would say implementation margins are also in excess of, you know, they can be in 40, 45% range. Implementation margins, they can even go up to 60 depending on the complexity of the project. So there is great variability in that license, you know, Sorry, in implementation components, then Ms.
Is obviously, I would say, you know, this is high quality revenue typically for us. So that’s 50% plus on Ms. And AMC is 70% plus on the margins. So. So that’s typically the margin profile.
Unidentified Participant
Right. But then if I were to compare apples to apples from what you call tools as the margins, right? They are not translating into EBITDA for me. I mean, if I take the weighted average of what, how we have categorized our revenues, right,
Nisha Dutt
So that gross margin, what, what you would classify as cost. So for us, you know, that would be cost of goods sold. Or, you know, if you were to look at. So what I’m talking about, these margins are typically gross margin, right? EBITDA is your off margin. So it doesn’t flow directly to ebitda. There are again, you know, expense line items below your line item, which is, you know, your gross margin. And then you have some expense line items and then comes your ebitda. So there is cost sitting below that.
And that cost is typically the cost of just to explain it for everyone’s benefit. That cost is mostly like R D cost, which is our engineering and build cost. It would be our GTM cost. You know, all our sales, marketing costs goes there. It will be our GMA like, you know, general and administrative lease expenses, all that. And after that, EBITDA comes. So that’s why you see that even our gross margins are pretty good actually. By the time it flows down to ebitda, we lose through the line items, you know, that are kind of both that, you know, where you build the market and take it to market.
So those line items are sitting below this gross. So that’s the cost structure.
Unidentified Participant
Right. So can I say these are the operational items. And is there a way we can further take steps to optimize those costs? Is there an opportunity there?
Nisha Dutt
Absolutely. That is where actually a lot of our operating margin, EBITDA has come from optimizing those costs. Because that’s the only leverage I have in the, you know, pnl. So
Unidentified Participant
And we
Nisha Dutt
Are hitting that cost, right? Cost efficiency. When I say AI sblc, that I will use AI to develop my products and accelerate, that actually reduces my engineering cost, which is already like line item getting reduced effectively. So that flows down to my ebitda. So all the EBITDA improvement has happened because of this, controlling this. So, okay,
Unidentified Participant
It’s
Nisha Dutt
A direct thing. So there is a framework for turnaround that we were following. And our framework for turnaround actually has this very strong focus on, you know, what are R D. So for instance, you know, should R D be benchmarked at 12% or 15% of my overall cost? What can I benchmark it at? So we have created our benchmarks and we strongly operated that.
Unidentified Participant
Okay, so one more question regarding the margins. Is there a classification that you could give me for the margins for our old and new products? I mean, fraud, for example.
Nisha Dutt
For example, you mean. You mean the new products like fraudzap and all that versus yeah, exactly.
Unidentified Participant
Exactly. And our legacy products that we have already, we have been working with the clients
Nisha Dutt
You can imagine all the legacy products, the ones that you see in Ms. And amc, you know, are all legacy products actually. So those margins we have discussed in newer margin, I am a little reluctant to tell you that because it’s only. It’s competition sensitive on this call. So I’m okay, ballpark
Unidentified Participant
Number
Nisha Dutt
Obviously much better Abhishek because we have built it, you know, with a lot lower cost. Right. So
Unidentified Participant
That makes me happy. Another question if I may continue conservative and stretch targets. The question that you don’t like to answer. Mostly stretch targets for 26, 27 forward looking statements.
Nisha Dutt
Rahu is staring at me. So
Unidentified Participant
The
Nisha Dutt
Company.
Unidentified Participant
Curiously
Nisha Dutt
Shaking his head that no forward looking guidance.
Unidentified Participant
I mean you rephrase it in whichever ways wordsmith it. But
Nisha Dutt
We do, we are going the year, we are entering the year with very strong backlog. We are entering the year on the front foot, on the back of lot of wins last year. So I am, you know, if I were to give any, you know, without taking the numbers, if I were to give any, any guidance I would say that as team, as you know everyone here, we are actually very bullish right now. So we are very bullish in this year. And I feel that you know, by all, by all benchmarks we should beat everything that we have done.
So you know we are, we are going in very. Unless something. I have three more questions. So only one thing is trust the process. I think it has given us a lot of results until now. So please trust the process. It’s working.
Unidentified Participant
Okay, I have three more questions. May I squeeze those in or do I have to come back in with you?
Nisha Dutt
Maybe you can. I think your turn will come pretty quickly so you can come back.
Unidentified Participant
Okay. Okay.
Operator
Thank you sir. The next question comes from Ajay Doshi, an individual investor. Please go ahead. Mr. Ajay, please go ahead with your question. Sir,
Unidentified Participant
I think he has a problem with his lying.
Operator
Yes, ma’. Am. There is no response. Dear participants, if you have any questions please press star and one on your telephone keypad. The next question comes from Mehul from 40 cents. Please go ahead.
Unidentified Participant
Hello ma’. Am. Thank you for the opportunity. I’m new to this company. Yeah. Two questions. One is you know what is. I know. We are into the software development.
Nisha Dutt
We are not able to hear you clearly. Actually your voice is breaking. I’m not able to hear you very clearly.
Unidentified Participant
Is it better now?
Nisha Dutt
Hello. If we are able to hear you,
Unidentified Participant
Is it better?
Nisha Dutt
Yeah, I think so. So hello.
Unidentified Participant
Is it better now?
Nisha Dutt
I think so. Hello. Yeah. Hello. I think so. Yeah.
Unidentified Participant
Am I audible now.
Nisha Dutt
Yes, you’re audible.
Unidentified Participant
Okay, ma’. Am, I just want to understand what are the products which we are operating. I mean, what are the products which we are serving our customers? I understand that we are mainly in the telecom sector, but what are the products and what kind of services? I mean, and also what is a split between product and service revenue?
Nisha Dutt
Okay, that is my first question. I have
Unidentified Participant
Another question. Yeah, first I’ll let you know. Yeah, good, please.
Nisha Dutt
Products. We, you know, mainly have three or four products. So one is revenue assurance. Then we do fraud management solutions for telcos. So we, you’re right, we typically, you know, these telcos and we do support revenue assurance is basically protecting revenues for telcos. Fraud management is helping them detect and you know, fight fraud. That is where we also use a lot of AI. Actually the third one is, you know, partner ecosystem. Partner ecosystem, I’m sorry, partner settlement system, which is really wholesale billing.
So we do wholesale bearing settlements for telco. And the final one is enterprise Asset management, which is essentially, you know, you discover assets on a telco network and you kind of reconcile that with their fixed asset registry. So that’s primarily, you know, the four products. Obviously we have embedded, you know, our AI and injected it into our product portfolio. But where we see the strongest need for it is actually in fraud management and revenue assurance. So fraud management also because you are seeing the fraud grow on your phones today, right?
The WhatsApp fraud to call, fraud to link, click on the link.
Operator
Phishing,
Nisha Dutt
Smishing. So a lot of fraud types are now digitally evolving because the attack vectors have increased with the number of devices that we use today. So that is primarily our portfolio. And we are a product company. We build products and we sell products. And our service revenue is around the products that. So we service only our products. We are not a general SI or system integrator that goes and services any product. We do services only around our products. I hope that answers your question.
Unidentified Participant
Yeah, that answers. Thank you, sir. Follow, ma’, am, follow up question is that you mentioned that mainly, you know, you are providing fraud detect detection solutions. So how does it work? Because let’s say I am a telecom customer with JIO, for example and you know, so where will your product sit? I mean, I just want to understand because you know, I will be using jio, but somebody calls me and then there’s no control who is the guy who is calling me and what kind of fraud he can do. I mean, he can ask me for a pin.
So I’m just trying to understand how does it work? You know, I mean I’m maybe I’ve given a wrong scenario but there may be some scenarios where your solutions work. So I just want to understand.
Nisha Dutt
Fraud is a ever evolving landscape, right? I mean one is I will kind of, you know, a little bit. But I think if you are interested in, you know, really understanding the product portfolio and what we do, then I would also say that maybe, you know, you should kind of look through some of our collateral. But in terms of very quickly, if I were to answer, I would say that our system sits deep in telco, right? And what they do is they look like so we can solve things like you know, Sinswap Wangiri fraud.
Now the fraud that you are talking about, for instance, a WhatsApp fraud, these are all digital frauds that have evolved, you know, quite recently actually. This is the legacy on this is not very high. And there are solutions that are targeting, you know, solving some of these things. So we build solutions to see if we can, you know, help Celcos fight some of these frauds. Now will all telcos use the same solution? No, because depending on what a telcos infrastructure is, the solutions also vary.
But our point is that we are helping them fight quite a bit of fraud actually in the system. So an occasional call that comes to you or a WhatsApp call, it’s not to say that, you know, because somebody buys our products, there will be no fraud in that network. Fraud is evolving actually very, very fast. Fraud is a very fast evolving field. Right. From deep fakes to account takeovers, it’s actually moving at a very fast pace. So this is something that we have to be constantly on top of.
Unidentified Participant
Right. Ma’, am. How much of your, you know, how much does your revenue come from top 10 customers?
Nisha Dutt
I think about 60% comes from our, you know, I would say the top tier customers. That’s generally
Unidentified Participant
60%. Is it?
Nisha Dutt
Yeah.
Unidentified Participant
Okay. And are your, is it possible to know your key clients, your cookie customers?
Nisha Dutt
I think we already disclosed it in our investor presentation actually. So our investor presentation has the logos that we are working.
Unidentified Participant
Okay, I’ll look into it. And last question ma’. Am. Because you know, mainly whatever little I did check, I just checked Subix numbers today itself. So I don’t know much but what I understand is that there is no Promoter Holding. So who is the largest shareholder in this company? I mean who are the key shareholders? I mean
Nisha Dutt
Just trying to understand. No, that’s true. We don’t have promoters. We have a very diverse shareholder and our bulk of the shareholding is retail investors. So we don’t have, I mean our capital is pretty diverse from that perspective. So it’s primarily retail.
Unidentified Participant
And what kind of shareholding does the management have? I mean, because that is all. You guys should have skin in the game, right? Otherwise there is a kind of.
Nisha Dutt
So the board has taken a cognizance of this ask that has come up repeatedly actually. So a management does that esop. I can, you know, and we are trying to, every time that the ESOP pool becomes available, we are trying to kind of increase the shareholding of management consistently. But the way management holds stock today is through esops. Esops.
Operator
Thank you Song. The next question comes from Abhishek Kale, an individual investor. Please go ahead.
Unidentified Participant
Hi. Hey Nisha. Yeah. What’s the progress in onboarding our HNI investors and mfc? Okay, I’ll come back again. Your
Nisha Dutt
Voice is breaking a little bit.
Unidentified Participant
Okay. Is it better now?
Nisha Dutt
Yes. Yeah.
Unidentified Participant
Okay, so what’s our progress in onboarding HNI investors and MFs? We did one Arihant Capital presentation but after that have we received any kind of a response from any HNIs or large MFs or something?
Nisha Dutt
No, not yet. We have had some conversations, but not yet actually. I mean I don’t have them on the cap table. But what we are going to do is that we do have a plan to actually hit the road and that is this quarter. So we are going to hit the road and we are going to do start presenting because I think now we have the results, you know, with us. So we are going to hit. So this quarter or this year a lot of my focus is going to be to see if we can improve the cap table right now. But this quarter onwards we are hitting the road actually we’ll present to PMS and I.
So we are going to meet a lot of people.
Unidentified Participant
Okay, so one, I think this is more of a feedback. I think when we sign our deals, right in the exchange announcements we disclose what is the likely order size and the tenor for the order. Right. But if we can, if we can include milestone payments, right? So this is when we see that these milestones would be met and this is the likely percentage payment that we are likely to receive that I mean for us the 6 million deal, let’s take that. It was a, it’s a five year deal for us, right. But I don’t know how and when am I going to get the revenues, right.
So it would make a lot of sense for investors to understand milestone based payments as to when we receive, how Much. I mean, ballpark is fine, but I’m sorry,
Nisha Dutt
No, I think that might be challenging only because contractually we are bound by some, you know, confidentiality issues with the customers. So
Unidentified Participant
Because every time we disclosure,
Nisha Dutt
We have to make sure that the customer is okay with it. And you know, so I think contractually I am. I’ll have to check. I’m not sure if we can do that. Actually contractually they will not agree to this. And also it’s somewhere a little bit competitive information, right? How we structure our contract, how much of it is transloaded versus backloaded. So some of this falls into that competitive sphere.
Unidentified Participant
I mean, without reaching the contractual obligations and without having to disclose to our competitors what we are, I mean, if there is any rough idea that we can get, if possible, it would be great help. And another question is on the goodwill write off, is that past history done? What have our auditors said on that? Because I think 2/4 back you had hinted that we may have to look at the goodwill on our books. About 190 crores plus month. So what’s.
Nisha Dutt
So basically it’s an annual exercise. An impairment exercise is an annual exercise that we do. And you know, Q4 being the balance sheet quarter, it has to happen. So that is why I had indicated earlier that it might, you know, you know, we will go through that balance sheet exercise. So we have completed that and our auditors have concluded that, you know, the carrying value is fine right now and there was no need to invest actually any of them. So that is also given our, you know, given us a lot of forward and positive momentum because the goodwill value is compared against, you know, your current performance.
So they also felt that, you know, there is absolutely no need to impair this right now. So I think in that sense it’s been a good outcome for us.
Unidentified Participant
Perfect. Hey, one last question. It’s about our board. The reorg. Is the REOR complete And have we received any initial feedback from the new members of the board from their vast experience in this field as to how we can better our products, offerings or approach on the sales side? Any inputs of that nature? Actually
Nisha Dutt
They are very, very engaged board. So it has been an extremely engaged board and we have received a lot of feedback. And I think this is a very different board because the ones we came in, the first thing that they asked us for was for tech deep dive. So they said that they wanted to do a tech deep dive and we had to organize like two sessions just taking them through our products, they look through the demos, they have Given us feedback not just on how we can build better, but they have also given us feedback on how do we do GTM better, you know, how do we take our products to market better.
So
Unidentified Participant
They
Nisha Dutt
Understood how the AI agents work. So I think in that sense it’s a very, I mean, if I were to use the word switched on, right, they are very switched on. And we just went through our AOP and budgeting cycle for Q4, you know, for FY27. And in that also they were very pushy with us, right? So all the plans that we presented, they really pushed the management to keep asking, you know, why can’t you do better than this? You know, shareholders are waiting for some better results. Why can’t you do better?
So there is a lot of, I would say, good push that came from them which genuinely made us rethink our plans and, you know, we kind of represented to them. So it’s been a lot of push, it’s been a lot of good feedback. And I think they’re also holding us accountable. But I would say most, more importantly, they are very fair. And you know, so far as my expectations or my interactions go, they have been very fair as well to all of them. So it’s a very engaged one.
Unidentified Participant
Wonderful, wonderful. One last question. With the recent announcements which PM made wherein he has asked us how most people to try working from home, right. If a significant portion of our employee group, right, temporarily at least, works from home, would that impact our operations by any means? Because we would have had this situation in Covid era. So would that impact as to how we function as a team?
Nisha Dutt
Actually, honestly, we already are working in a hybrid mode. So subics never run back to five days a week in office. So we are, yeah, we don’t work five days a week. We actually work three days a week and two days people work from home. So we are already on hybrid and we have plenty of experience managing employees and, you know, sort of, you know, employees doing their work in some sort of a hybrid mode. So that does not bother us as much as it might bother people who call employees full time, you know, back to office.
But you know, my personal philosophy in this has always been that you need to have a high trust environment. If you can’t trust our employees to actually do right by us, no matter where they are sitting, then I think we have something wrong and broken in our system. So for me, you know, I like to work in a high trust environment and we will navigate as it comes. But honestly, I don’t worry too Much about it. We have a very good set working with us.
Unidentified Participant
Wonderful. Thanks. That is all from my side and my best wishes for continued success. Thank you.
Nisha Dutt
Thank you. Thank you.
Operator
Thank you sir. The next question comes from Mahesh Kumar, an individual investor. Please go ahead.
Unidentified Participant
Yeah. Good morning Nisha. First question is this quarter we announced one deal for fraud jam. Now with this deal, how many paid customers we have for fraud jam? That is first question and so second question around three quarters back we have made announcement of team of LLM for fraud management and fraud detection. So do you have any paid customer for this team of llc?
Nisha Dutt
Sorry I didn’t get second question. Mahesh
Unidentified Participant
T. Few quarters back, I think three or four quarters back Subics has made announcement that they have launched a product which is made of team of LLM for fraud detection.
Nisha Dutt
Are you referring to fraud that. Because that’s the one we launched. Actually
Unidentified Participant
Fraudzap is a different one. There was a one announcement also regarding Team of LLN,
Nisha Dutt
Team of LLMs. Oh yeah. So you had some announcement
Unidentified Participant
And then some POCs were going on for that. So for that particular product or solution, do you have any paid customer now?
Nisha Dutt
So on fraud that see we kind of built a product, we did POC and we launched it and we got the first paying customer all within a year. So it’s early pipeline for us. So currently if I think about it, it’s one paid customer but the back of that customer has three telcos with one customer to us. But at the back, I mean the contract actually has telcos participating in it. So if you think about it, the product is actually embedded in three cases. So that is how the customer. You know last quarter also you had announcement
Unidentified Participant
Of a paid customer for a. For that and this quarter also there is announcement.
Nisha Dutt
Yes, that is the three customers actually because what’s happening is that we are working through, how do I put it? Okay, so we are working through an intermediary who keeps onboarding, you know, newer telco. So we had onboarded a telco. Now we have, for instance three telcos. So the telcos are onboarding onto the product. So every time a new telco onboard on the product it becomes a new customer for us. So currently from that perspective we have three customers
Unidentified Participant
LLM,
Nisha Dutt
The team of LLMs. Right now actually you know we are in POCs. We have actually completed the POCs. We are in conversations with at least two or three customers to make it commercial. Now actually in this quarter. So we should be making it, you know, commercial. The one challenge that we are Running into slightly on team of LLMs is the hardware challenge because it requires some GPU. And most of the customers, as you can imagine, are a little reluctant to procure GPUs and especially in Middle east because they don’t want to make any hardware investments right now.
So we are. So the product is ready, the POCs are done, they want to sign up with us. But you know, the GPU is, the hardware is becoming a little bit constrained right now. So we are also finding a way around it. For instance, we have figured out a way that we could probably do an agent in a box kind of a model. So we are also trying to see if we can make agents work on CPU instead of gpu. So that’s the technical challenge that we are wrestling with even as we speak. So that has been a little bit slightly, you know, delayed for us.
From that perspective. It’s not because the interest is not there, it’s not because the customers are not willing to pay for it. But hardware is a little slight challenge. You know, we are challenged on that aspect.
Unidentified Participant
And what will be the impact of Iran war on our business? Because we are only focused on Gulf region, 31% of the revenue coming from that region.
Nisha Dutt
We do have quite a bit of revenue coming from that region. But APAC in Europe is also very strong for us actually. So I think APAC in Europe remains steady. Americas, we are going to invest heavily into America this year and see if we can bring it back up. Africa also is seeing momentum. Middle east, no doubt, you know, does have, will have some impact. But the way we are trying to mitigate is that on all the implementation, all the projects that we have already won. I just mentioned it to Sanjot as well, that all the projects that we have already won, we are trying to offshore those projects and see if we can deliver them from here.
And customers are very supportive of that given the situation. So most of the resources, we have actually moved them out of Middle east back to India. And we are now delivering from Bangalore, most of it. In terms of contract renewals, we don’t see a major risk unless it blows into a much bigger war. And in terms of new decisions or new purchase decisions, that’s where we see a slight risk of customers delaying decisions. So that may be a slight risk there. So that’s where we are.
Unidentified Participant
Okay, I will join back the queue after.
Nisha Dutt
Thank you, Mahaj.
Operator
Thank you, sir. The next question comes from Jitendra Bhutoria, an individual investor. Please go ahead.
Unidentified Participant
Good morning.
Nisha Dutt
Morning, Jitendra.
Unidentified Participant
Yeah, so I would like to ask you about the. We had closed that sectaria business. Now there were certain receivables for which we had filed. We were trying to take some steps for recovery of that. So what is the status of sectaria as of now? Has it been closed? All contracts over closed and whether those receivables. One is
Nisha Dutt
Closed,
Unidentified Participant
The other one
Nisha Dutt
And. Yeah,
Unidentified Participant
Yeah, the other one which was pending. And secondly, you know, what is the status of those receivables from the earlier contract which we closed and we had, you know, written off some money, good amount of money
Nisha Dutt
So on sector. So there were two major contracts. One is closed. In fact we are, you know, kind of. It’s almost. Contracts are the final contracts and liabilities we are closing actually. So I would, you know, from my perspective, consider it closed. Almost.
Unidentified Speaker
The
Nisha Dutt
Second one is where there are also receivables there. We have decided to take a legal route. So that’s where we will go, you know, down the legal path and we will try to. We are actually engaged, we have engaged a lawyer and we are going to go down the legal path and see if he can do some recovery there or arbitrate with the end customer. So those receivables will take some time because you know we are going to. We are going down the lawsuit path on that.
Unidentified Participant
Okay, so the. This is the one which you are talking about which we have already taken off that receivables or the contract.
Nisha Dutt
No, no, no, the one that we have already provided. So we have already provided for it last year. So. Yeah, so there is no risk to anything. We have already provided for it in the books. In fact, if anything, if we are able to, you know, settle this and if you are able to recover money and you know, I’m hoping that we recover all of it but you know, through arbitration, whatever recovery comes, we will sort of offset, you know, our provisions against the income that we know book. So that’s how we will offset the provision.
Unidentified Participant
And my next question is regarding the revenue. We find the revenue has stuck around 70, 72 quarters from, you know, so when, when could we expect this revenues to blow exponentially in
Nisha Dutt
The back of some contracts that we won last year in good oi as our implementation cycle start finishing, you know, I would say by middle of this year and all that, as the implementation starts coming to a close, provided there are no delays, the revenue uptake should start at the back of it. So.
Unidentified Participant
So your wish and our target of 100 crores per quarter, when could we expect?
Nisha Dutt
Inshallah.
Unidentified Participant
That is that is a point, you know, where the glory of Subics will lie. Absolutely.
Nisha Dutt
Oh, that’s. No, that’s my war cry internally as well. That is my war cry to my team that we have to get this 100 crores. So. No, absolutely. I think this is the year we go for it.
Unidentified Participant
Are we looking for any acquisitions in our clinic or how do you want to proceed? With the amount of cash which we have now, at least we can take some. Some sort of a risk for our products.
Nisha Dutt
Oh, absolutely. So we do have about. So if I were to, you know, kind of put some cash aside for our working capital, if I give myself six months, Runway and all that, I still have about 50 crores sitting on the balance sheet. Plus we will also generate cash through the year. Right. So we are wanting to go back and look at some potential ways of, you know, seeing if we can do some packing system years. So that is actively a discussion that we are having with the board within the team. So that’s definitely on the cards.
We’ll be looking at some opportunities.
Unidentified Participant
So are we doing anything with On Grid investment planning to increase or dilute or divest? What are the valuations
Nisha Dutt
On Grid? No, because On Grid actually is doing very well right now. So. Because every year, when we complete the year, we obviously look at, you know, we ask for. Ask them for their PNL and balance sheets. So it’s actually looking really good for them. So since they are doing so well, my investment in them is doing well, there is no good reason for me to exit right now.
Unidentified Participant
No, that’s absolutely correct. So the company is doing well. Are we planning to add some more investments into that or they’re just holding on, put whatever. No,
Nisha Dutt
Actually, I would rather reinvest back into our portfolio. So, you know, I feel that I would rather there are more opportunities for me to, you know, grow my money than to, you know, put it outside. And I would. I would rather take a bet on my team than take a bet on, you know, some other team. So
Unidentified Participant
At appropriate time, we will be divesting on grade.
Nisha Dutt
Yes. When the, you know, when we need the money. Honestly, today I don’t need the money. Right. So I don’t necessarily need the money in that sense. I mean, I just, I think let it grow there. It’s a good bet for us and we have enough cash to reinvest in our business. So let’s just go back. You know, we have enough bets that we want to take internally. We are excited about agents. We are excited about, you know, some of the Things that are coming up for us. So we want to go back, you know, more bullish on those areas.
So we’ll take our own bets.
Unidentified Participant
So our revenues are mostly in foreign currency. So we are being benefited out of this rupee depreciation. How? Because our expense is mostly India based.
Nisha Dutt
We do. How
Unidentified Participant
Does it help?
Nisha Dutt
So I mean obviously when we measure our performance, rupee depreciation helps us only because most of our contracts are in USD and you know, foreign currency. So rupee depreciation from that perspective does help us. But because some of the geographies where we work their currencies are also in high fluctuation. So on every contract, when we are winning new contracts or when we are in negotiations with new customers, one of the key points that’s coming for us is that most of the customers now want to work in their currencies, which we don’t want because obviously the exposure for us is high.
If the other currency is also equally fluctuating, then I cannot take that currency exposure. So the tricky point becomes often for us that do they have the USD to give us or not? Can I do dollar contracts? So that is also slightly delaying some contract negotiations and all that. But we are sticking to our ground. For us, I think we are to the extent possible, we are only doing our gdp, USD and Euro contracts.
Unidentified Participant
That’s great.
Operator
The next question comes from Ashish Koti, an individual investor. Please go ahead.
Unidentified Participant
Good morning ma’. Am. Thanks for the. Hello, can you hear me ma’? Am? Yes, yes, I can hear you Ashish. Yes ma’. Am. I have a question basically with regards to our focus me majorly on the fraud management on in telecom with more and more consolidation happening and with Starlink and where competition would get, you know, more severe for smaller players, how exactly telecom would be enough for us.
Nisha Dutt
So see we are actually so obviously telco is our bread and butter. So we are deeply embedded. We have, I would say that, you know, we have around120,530 customers, active customers. We have very low churn. I have 80% of all T1 customers. So there is a lot of. So that’s where we have a lot of strength. But that does not prevent us from looking outside, you know, it does not tell us that, you know, we should not look outside. There are sectors or areas where our revenue assurance and fraud management might be horizontally scalable.
And this is where we are actually looking at, you know, seeing if we can get into this area. But on your question on Starlink, even our customers are actually signing up with Like a. So telcos are also investing aggressively and getting into hybrid phase right now. So telcos are not the telcos of, you know, old school telcos anymore. So they are also taking a lot of bets and getting out. So I think in that sense it gives us a horizontal expansion opportunity. But more than that we are also aggressively, you know, looking at some very high growth areas right now which are, you know, I would say high growth, high tank.
So we have identified a few areas that we are starting to take a bet on that. So we are going to, you know, start experimenting with some of those areas, take our products, look for fitment. So you are right. I mean, you know, telco is not the only play that we will have. So we are also hoping to cautiously expand into something else.
Unidentified Participant
Would you be able to throw that line some light on areas which you are exploring that is one second within data centers whether our fraud management systems has any role to play and whether on electricity side whether we can kind of port our fraud management system.
Nisha Dutt
So data centers are definitely a good place. That’s because data centers not just need fraud management. Actually I would think revenue assurance is a bigger player in data centers, honestly. So. So I think in that sense data centers are something that we are starting to look at carefully because it’s also a very high growth industry right now. Right? It’s one of the highest growing. It’s almost. Data center is a new infrastructure, right? It’s like when telcos grew last time. It grew on the back of telco is expanding massively and we now see the same movement happening around data centers.
So it’s building a new infrastructure altogether. And I think in that sense it becomes a very strong consideration for us in terms of electricity and all that. Personally we are a little bit reluctant to go into utilities, pure utilities kind of space because receivables and you know, the decision cycles are very long, they are very slow and receivables and other things become very problematic with utilities. So those are not areas my product can possibly work in those areas. But utilities are something that we actively stay away from.
Water, electricity at. So
Unidentified Participant
And ma’, am, our all our revenues are totally hundred percent on subscription model only. No, it’s not. It’s a traditional thing where it’s a license, implementation and support. So it’s not 100% subscription? No. But in terms of sales I’m not talking about operation and maintenance, I’m talking about purely in terms of sales. All our revenue is in terms of subscription model or is it product sale also still
Nisha Dutt
No, we do sell and we do the license, right? So we sell our product, we recognize some license revenue and then we do implementation of the product. We get implementation revenue. And that’s when after the implementation is over and customers achieve what we call, you know, at Goalize, which is, you know, our product is live and working in their system. That’s when it moves into what we call support contracts. Either, you know, that’s the subscription part of it. So it moves into support which is, you know, it can be an amc, it can be an additional managed service.
So support contracts kick in after that. So that’s the subscription piece of it. So there are three distinct pieces to how the revenue moves for a customer.
Unidentified Participant
I thank you for that. But then if revenue mix can be broken down into this different heads, then you know, it gives
Nisha Dutt
It is an investor deck. That is how it’s broken up. And I was telling Abhishek also earlier on the call, that’s exactly how it’s broken up. You will find it as license implementation. You’ll find Ms. And you’ll find amc. So NSAMC is the subscription, if you want to think of it, you know, a subscription ms, AMC is a subscription bit. The license implementation is the product part of it. So if you, if that.
Unidentified Participant
Okay ma’, am, I’ll come back in the queue for any more question. Yeah, thank you
Nisha Dutt
So thank you Ashish.
Operator
Thank you sir. The next question comes from Mahesh Kumar, an individual investor. Please go ahead.
Unidentified Participant
Yeah, Nisha, in multiple past investor calls you have been mentioning that your first priority is to take the sheep out of strong. So as on today is the ship out of strong? That is the first question. Yeah.
Nisha Dutt
And
Unidentified Participant
Second question, if the sheep is out of storm, what are the new growth engines that you are trying to put in place which will give at least more than 10% growth. And third one, since you are focusing on data center, why the data center companies who are also software companies, also services companies will use your product rather than building that in house. These are the questions.
Nisha Dutt
So ship out of the storm. I think that, you know, every time we think we are out of the storm, a new one looms. But I would say that in terms of overall direction, I actually like I said earlier also, you know, when I was giving the initial opening remarks, I truly think that ship is out of the storm. In that since the first part of transformation I think we have delivered. So now our focus has to be on growth because and we have the balance sheet actually. So I think in that sense the fundamentals are Back in place, right?
So when fundamentals are in place I can confidently say that we are on our way now. So that gives me confidence that we are over the work. So second part of your question is on, I think it’s asked about data centers. So data centers are something that we have growth engineering. Sorry,
Unidentified Participant
What are the growth engines?
Nisha Dutt
Okay, so our growth engines broadly come into, you know, I would think of it as four categories, right? So there is a traditional telco that remains for us. Telcos themselves are becoming tech code. So I think like I was saying that there are horizontal expansions with JV being done by Starlink and all that. So there gives us a horizontal expansion, there is tank there, then there is a new thing called agentic in house and MSC placement, right? So wherever they have MSC soil, telcos have a lot of, you know, managed services team.
So wherever they have managed services we can actually go and place, you know, agentic AI and see if we can replace or you know, reduce their managed services team. That is a very different plan. The third is, you know, the new age leakage vectors, right? So fraud, zap and all that control those new age leakage vectors like social engineering, a 2P SMS fraud account, takeover. So we have built a suite of products that can now address the new leakage vectors. And the final one is telco adjacencies.
That is where the mobile money fraud, mbno, IOT assurance, you know, telco, fintech, data center, all this comes into telco adjacencies that we are strongly looking at. So if I actually look at the TAM, this is, you know, 4.3 million, so 4.3 billion of TAMs that did not exist even two years ago. So a new TAM market has opened up completely for us. So I actually think that the play for us is quite big and these are the exact levers that we are going to anchor our business off. And all of it is quite fast growing, right?
So this is, none of this is a slow going market anymore.
Unidentified Participant
And what about data center? Why the data center companies will use your product when they are themselves having huge software teams to build it?
Nisha Dutt
I think that goes without saying, right? Telco. See one thing is you should remember that wherever our products are, telcos uses for scale, right? So we shouldn’t forget that there is a one is scale. One of the telcos that we work with and this is not an isolated example, we process like 120 billion records a day. So a software is not just a software, it has to work at a certain scale and we have production Grade software that works at a very huge volume and scale. So I think that’s one good thing that we have going for us.
The second is on some of the products like revenue assurance and all that. Even telcos have huge teams. Why do they still use us? It’s because there is a maker checker system. Right. You cannot actually make your revenues and also check it. It’s like auditing pretty much. Right. We use auditors because we cannot, I cannot report my revenue directly to you unless an auditor puts a field and says I’ve seen it externally and it’s true. So a lot of our software is also, you know, I would say an audit, kind of a compliance, kind of a requirement.
Right. And the third piece is domain knowledge that is very specific to solving fraud. Domain knowledge doesn’t build overnight actually. So we have cut our teeth for three, 30 years in it, right? We have seen patterns across 30 years across telcos. No individual telco can beat us when it comes to, you know, the, I know, hot patterns across 100 plus telcos. Can any one telco team come and beat that? You know, with it? They cannot. And that’s exactly the reason why people continue to buy us. And I think it is.
These are the kind of skill sets. No, I’m coming to the data center question as well
Operator
Because
Nisha Dutt
That is the kind of skill set that has stood the test of time in telcos and we believe a lot of it is actually horizontally scalable because it’s the same stuff when you actually go into data centers. They still need revenue assurance. That’s a maker checker auditor kind of thing. Right. So they will still continue to buy from outside. We have to see if we are the people who actually go and build this game. So I mean that’s at least our thought process. And it’s not about code writing. Right. If you could just win this by having a team of developers then I think everyone could just enforce all this.
But that’s not what it is. You know, patterns evolve over a time. You need someone who’s watching it across telcos, across data centers and you know, can bring those patterns into the products and embed it and put it in your system. So that’s where we think our play will be like. Again I said that, you know, we have not honestly gone into the market on data centers yet. This is one of the considering strongly, for instance, you know, because we can solve fraud problems. People are starting to use it for mobile money now.
Why? Because I can solve fraud actually essentially. And mobile money sees a lot of fraud. So we are already seeing that our products are horizontally scalable. So that’s the bet actually data centers again, I don’t want to give anybody an impression here that we are working with data centers and all that. We are starting to consider it because that’s definitely a very strong growing sector and it’s building I would say the next layer of infrastructure in the world. So it’s very natural for us also to see if you know there is a place for us.
And that’s something we are strongly considering right now.
Unidentified Participant
But do you still want to go back into IoT assurance again? Because we have existed that business recently.
Nisha Dutt
We actually never did. IoT assurance sector was industrial, you know, security. It was never actually an IoT assurance business in the first place. So I think, you know, there seems to be some confusion. And IoT assurance is actually a set of controls which are RA controls. Those are revenue assurance controls for existing telcos. So we already do that and we are wanting to, you know, expand that business within our existing telco. So IoT assurance is one of the assurance businesses for our existing RA book program, you know, portfolio.
Actually it’s not a different product line.
Unidentified Participant
Yeah. I have a last question. See Subex is very proud of its domain knowledge then data. It is having the patterns it has learned over 30 years time. So if that is the case I have fundamental question why we are not building a mythos type of model ourselves.
Nisha Dutt
That’s a you have to give me. You guys have to believe in us more. I want anthropic level salary. 100 million is what we need to build. My thoughts that
Unidentified Participant
Is that that cost even is in the US India cost will be much lesser than that city. Take, take Mahindra MD told okay I will build that chat GPT type of thing in one million dollar.
Nisha Dutt
See there is a. Okay,
Unidentified Participant
So why is I wish to be good actually because that’s what exacts us also. So this is but what we are doing with our domain. I mean I want. I won’t take the Mythos example but I will take the Claude skills and plugins. I’m sure you are familiar with that. So yeah,
Pratik Jagtap
In
Unidentified Participant
Our context our agents are equipped with you know, proprietary skills which is our domain knowledge. I mean you can kind of think about it like that. So only we can provide that skills. I mean there was an earlier question also about LLMs. LLMs cloud or open AI can build but the proprietary skill we bring. And that is why our agent can, you know investigate fraud much better than any human or Any other agent because we have all these patterns which we bring or render in the form of a skill that is, that is what we are using AI to build services or solutions that, that approach.
But when we say yeah, we think of the agent as a product because it’s positioned as an independent for which we sell and we kind of get again license revenues like was already discussed. Because what is happening, nobody thinks Ubex is a AI first company. This is the impression in the market today. See there is so gungo about AI AI across the world. But nobody is considering Subix as AI first company. So I want to bring that impression by such a development that it is an AI company.
Nisha Dutt
And it’s a fair point. It’s a fair point and I think if I, I will take this as a feedback. I think we have a lot more work to do on messaging them and we will make sure that we do a lot more work on it. So it’s a fair point. I kind of take your feedback on that. But that’s not to say we are not doing the work. Manish, you know, so sometimes you know the message. There are categories like
Unidentified Participant
The basic technology development. Now if you see these entropy can all those they are building the technology, building the model is a technology. What Indian companies are doing using that model, we are building the services and solution. So if Ruchir Sharma, who is the investor he told India has lost the Airbus. If you see his interview every year he gives this what are the trends here like we are likely to see in 2026? He told AI Bus India has missed because Indians are not innovators, they are good at followers.
Nisha Dutt
But I think I kind of have a slight disagreement with that position because it’s like saying that deep research is the only research worth doing. A lot of India’s growth has also happened on the back of applied research, right? You don’t need to be a deep researcher. The deep research requires deep pockets and deep money which I don’t think Indian market has today. Maybe that kind of, you know, muscle, the muscle rely, you know, is still sitting in Silicon Valley. So they are doing deep research.
They are coming up with fundamental models that does, but that does not stop us from actually taking what they have built and applying it to our domain. So I would say that we are the applied research companies, right? And there is nothing wrong with it. There is actually. It’s hard work, it’s difficult work to do even applied research. And I feel that if India and if companies like Subex can actually do that well then we would have also, you know, won a major battle actually. So I almost think of it like that, that, you know, our AI can work at magic skills.
So why should we kind of think that we have lost the race? I actually think the race is just beginning now. And you know, now
Unidentified Participant
What happens, you were saying at the forefront
Nisha Dutt
Of it will get to win it. So I have a slightly different perspective from Ruche Raj.
Unidentified Participant
No, see what happened. You were saying the hardware GPU is the issue for team of LLM. Okay. So the
Nisha Dutt
Out
Unidentified Participant
Of box thinking would have been why can’t we use Neuromorphic to implement all this? Team of LLM, your cost will come down drastically and you will have a patented solution.
Nisha Dutt
Why can’t we use what
Unidentified Participant
Neuromorphic processor.
Nisha Dutt
Neuromorphic processor. So we are actually looking at, in fact boxing it into pretty much a laptop size right now, a region so that, you know, we can just take our laptop, walk into a customer site, plug in and start playing from there. So we are also. So it’s not that we are not thinking through that process. When we hit that roadblock of GPUs, we are not going to not push our agents in the market because some people don’t have the wherewithal to buy GPUs. Right. So I’m going to come up, you know, GPU will be challenged
Unidentified Participant
By the neuromorphic because neuromorphism is basically AI at age. We are actually working
Nisha Dutt
With you. I will look into what you’re saying, definitely. But my point is that, you know, it’s a. Yeah, it’s a neural structure. Right. So my point is that we are not sitting with the challenges. We are actually, you know, breaking through it and seeing that can we make our agents work on cpu? Can we do it on literally on a laptop? So
Unidentified Participant
AI agent with laptop is a traditional method of solving the problem. If you want an innovative solution, you should look for new computing architecture like Neuromorphic. But I think to, you know, take it into market today with the infrastructure that is available with telcos. Obviously they do not have the. You are trying to put in a box. Now you are trying to put in your own box.
Pratik Jagtap
No, no, but the reality of today is that our agent requires us at a IQ level and at that IQ level, no agent works on the cpu. So the fact that we are cracking it to make it work on a CPU, which will kind of unblock
Unidentified Participant
This GPU hardware challenge itself, I think will be a big win for us, especially if you want to realize revenue in the near term. Because CPU is something our customers have access, have procurement processes. And so we can start actually rolling out a lot more agents. So while we look for, you know, different architectures, which we do. But I think the reason why we are going on CPU is primarily because it is something available and can be commercialized. Neuromorphic is also available. There are companies who provide this hardware.
Okay. I will actually ask my team to kind of
Nisha Dutt
Look at it.
Unidentified Participant
Okay, thank you.
Nisha Dutt
Thanks.
Operator
Thank you, sir. That would be the last question for the day. Now I hand over the floor to Ms. Nishadat for closing comments.
Nisha Dutt
Thank you for all the questions. I mean, you know, again, I think we have had a good year. Like I said earlier, we are looking to do better this year. We are. At least the team is very bullish on the year that’s coming ahead. So thank you for staying with us. I’m hoping that you stick for the journey. I always think that the best days are still ahead of us. So thank you for your patience and your confidence and I look forward to speaking to you again during AGM and then after that, you know, in the investor form.
So thank you and we’ll be in touch. Thank you.
Operator
Thank you, ma’. Am. Ladies and gentlemen, this concludes your conference for today. Thank you for your participation and for using DO Sabha’s conference call service. You may disconnect your lines now. Thank you and have a pleasant day.