Veefin Solutions Ltd (BSE: 543931) Q3 2026 Earnings Call dated Jan. 27, 2026
Corporate Participants:
Purvangi Jain — Investor Relations
Raja Debnath — Chairman & Managing Director
Payal Maisheri — Chief Financial Officer
Analysts:
Unidentified Participant
Kushal Kasliwal — Analyst
Himansh Rathore — Analyst
Bharat Reddy — Analyst
Darshil Zaveri — Analyst
Hitendra Pradhan — Analyst
Ankit Narshana — Analyst
Shubham — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to The VFIN Solution Limited Q3 and 9 month FY2026 earnings conference call hosted by Valorum Advisors. 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 call, please signal an operator by pressing Star then zero on your touch tone phone. Please note that this conference is being recorded. I now hand the conference over to to Ms. Puruvangi Jain from Valorum Advisors. Thank you. And over to you ma’.
Am.
Purvangi Jain — Investor Relations
Good evening everyone and a very warm welcome to you all. My name is Parvangi Jain from Valorum Advisors. We represent the investor relations of VFIN Solutions Limited on behalf of the company, I would like to thank you all for participating in the company’s earnings call for the third quarter and the nine months ended of the financial year 2026. Before we begin a quick cautionary statement. Some of the statements made in today’s earnings conference call may be forward looking in nature. Such forward looking statements are subject to risks and uncertainties which could cause actual results to differ from those anticipated.
Such statements are based on management’s belief as well as assumptions made by and information currently available to the management. Audiences are cautioned not to place any undue reliance on these forward looking statements in making any investment decisions. The purpose of today’s conference call is purely to educate and bring awareness about the company’s fundamental business and financial quarter under review. Now let me introduce you to the management participating with us in today’s earnings call. We have with us Mr. Raja Devnath, Managing Director, Mr. Gautam Udani, Chief Operating Officer and Ms. Payal Maishree, Chief Financial Officer. Without any delay, I request Mr.
Raja Debna to start with his opening remarks. Thank you. And over to you sir.
Raja Debnath — Chairman & Managing Director
Good evening everyone and welcome to Vsyn Solutions earnings conference call for the third quarter and nine months ended financial year2026. Thanks for joining and we appreciate your continued interest in vsin. For people who are joining in, we had uploaded the presentation so if you want you can refer to the presentation while we are on the call. Let me start first by sharing a few operational highlights for the quarter under review before handing it over to Payal who will take you through the financial performance now. During the period under review we continue to demonstrate very strong execution across our core platforms supported by steady demand for our supply chain finance solutions.
And we are seeing increasing traction across our non SEO products. For people who are referring to the slide. This is at the back end of the deck after the number slides where we speak about drivers for the profitability and drivers for future growth. There you will see a chart on our pipeline. So you will see that our unified product architecture modular platform approach, it continues to resonate well with banks and financial institutions enabling faster deployments and deeper client engagement. So as you will see, our qualified deal pipeline remains very robust. It’s moved up from the last time we had a call.
It’s now at 61 million USD across 50 enterprise opportunities. Okay, 61 million USD across 50 enterprise opportunities. And the heartening part is nearly 78% of this pipeline which you’re seeing is coming from non supply chain finance products such as cash management, trade finance, Internet banking, loan management systems, our loan origination system. Now this reflects the gradual diversification of a revenue base and the growing acceptance of Veefin as a full stack digital banking technology partner. For people who have been following VFIN and have heard our calls over the last couple of last couple of calls, this is something that we have been harping on in terms of moving from being a single product company to moving across the entire transaction banking value chain so that we leverage the relationship that we have built with our client.
We leverage the opportunities that Supply G Finance has afforded us and the trust that supply chain finance has allowed us to play in the transaction banking space. So these numbers and these pipeline numbers are extremely important from that point of view. From a geographic standpoint, the pipeline you will again see very well diversified led by India and South Asia at around 42%, Southeast Asia at 36% and we’re seeing growing traction in GTC and Africa which contributes to the remainder. Overall, this regional mix, it reinforces our confidence that demand for vfence platforms is not concentrated in any single geography and it supports our long term international growth ambitions.
The pipeline represents qualified enterprise opportunities only which are currently under active client evaluation with multiple solution opportunities being pursued within the same client relationships. Now this is important. There are many client opportunities that we’re talking of where it’s not just one product that we’re talking of, we are talking of multiple products in the transition banking space that we are pursuing with the same client. This is again it goes in line and proves the thesis that we have had in vsan. Moving on, I think lots of you would want to know what’s happening on PSV Exchange and the adoption on the operating momentum.
I’m happy to announce that the platform has moved decisively from onboarding to live transaction activity now over the last quarter we have on the lender side we currently have three integrations live. Now when we say integration live it means that the API connectivity from the PSV exchange platform is now with the core bank on the bank side or the LMS or the LOS on the bank side. So the bank is now ready to consume the business digitally end to end. So three banks have gone live, another three integrations are in progress. We’re doing the same thing with another three banks and there are 15 agreements across PSU banks, private sector banks and NBFCs which are under process.
So once the agreements are signed they will then move into the integration phase. That’s the journey. This was on the lender side. Now in parallel on the sourcing partner side that is from where we get business. Five integrations are already live, eight are in progress as we speak and we have 23 agreements that are under process. These are the full blown agreements because these are supported, remember by 79 MOU that we have signed till date. So on the lender side we have three integrations live, three in progress. On the sourcing side we have five integrations live and eight in progress.
Now more importantly than the integrations we are now seeing meaningful transaction activity on the platform. So what we have seen over the last quarter is around 80 corporate deals have been initiated on the platform. They’re at various stages. 80, okay. Approximately 12,000 crore of limits requests have been issue requested on the platform. So these 80 corporates, they have requested around 12,000 crore of limits. Out of this 4,000 crore of limits have already been approved by the banks. And this 4000 crore is across 19 anchor corporates. 4000 crore across 19 anchor corporates. Now remember one thing in this here we have many large corporate, very, very large corporates, some of them individually can bring in 40 to 70,000 crores.
Initially they have put only 200, 300 crores because they want to see how this will work because it’s the first time this kind of platform is actually coming up live. So they have given very small limits out here. So once these limits are consumed, even from the same cobbit, we expect a manifold increase in the actual approved limits. Now what this tells us two things very clearly. First, both sides of the ecosystem, I.e. lender and sourcing partners are being scaled in panel. That’s the first. And second PSB exchange has transitioned from being an onboarding led initiative to a live operating marketplace with real credit activity flowing through the platform.
Now for this we want to say thanks to all our investors and Our team which has stood by us in this long journey. This is a very important milestone for us. Finally moving on to the next slide. For the people who have the slides in front of them, let me touch upon the on ground operating readiness of PSB Exchange. There is one thing to have the tech ready, but the other is operating readiness of PSB Exchange. We have built a pan India execution ready operating model, okay. It is supported by dedicated field credit and technology teams.
So our physical presence today. So we have moved from being just a pure tech company in PhD exchange. Now we have 22 locations beyond Delhi, Mumbai, Bangalore, Chennai. That means total of 26 locations across the country where we have dedicated field staff available for PSB Exchange. And operationally the platform follows a clear end to end ownership model. This covers sourcing and anchor engagement, regional partner coverage, credit deployment and lender coordination, platform reliability and user experience. And each of these verticals we have senior leaders leading each of these initiatives with most of them joining us in the last quarter.
So what this enables us is now parallel onboarding of corporates and partners, scalable regional execution without central bottlenecks and faster credit deployment as the platform activity grows. Just summarize all of this. The PSB Exchange today is not just a concept or a pilot. It is a live expanding platform with a diversified pipeline. There’s a growing transaction throughput and we have shown that we now have strong on ground execution capabilities. So focus at this stage remains on widening the ecosystem, participation and deepening the engagement rather than just focusing on maximizing volumes. So volumes will come because as I said, each of these corporates which are coming in have very large requirements.
They are all testing the waters right now with the platform. Once the transactions start flowing in then we can expect much larger volume from the same corporates. I think enough of all of this. What I’ll do is I’ll now hand over to Payal who’s our Chief Financial Officer who will walk us through the financial performance of the company. Payal.
Payal Maisheri — Chief Financial Officer
Thank you Raja. Good afternoon. Good evening everyone. As the company is required to publish a quarterly financial result for the first time for the quarter ended December 31, 2020. Therefore, the financial results for the quarter ended September 25, that is the previous quarter for the quarter ended December 24, that is Q3 for last financial year and nine months for December 2024 are not applicable and accordingly have not been presented. Now on to our performance for Q3. It has been a strong quarter for us with Q3 performance almost matching our H1 numbers. Starting with the revenue so our consolidated revenue for quarter three and nine months period have shown a very strong growth.
The quarter three revenue was 104 crores and the nine month revenue was 214 crores. On a consolidated level which is driven mainly by a combination of organic growth or organic scale and full impact of our consolidation, the key growth drivers here mainly are first the contribution from all our existing clients, that is the standalone VSIN revenue increase in monetization of the platforms which are live increase in the AUM on the platform. Third, the first full year visibility of the subsidies and all our acquired entities. So that’s on the revenue performance. One more very important thing to note here is that a large share of our product revenue is now recurring in nature, which gives us a lot of predictability and a lot of visibility going forward.
On profitability, I want to address this very clearly as it’s a key investment. At a standalone level, our core product business continues to operate at EBITDA margin of 52% on a YTD basis, that is for nine months and a PAT margin of 27%. On a consolidated level, our EBITDA margins are 19.95% and PAT margins are 7.75% which is lower as compared to the standalone. But this is entirely a mix driven and not performance driven. So when I say mix driven and not performance driven, what I actually mean is the quarter the consolidated result includes product entities and service entities.
Service businesses, service businesses structurally operate at lower operating margins. That’s the reason why on a weighted average basis the consolidated patent margins are lower as compared to my standalone PAT margins. However, in terms of absolute numbers, the absolute PAT for my nine months for current financial year is almost matching with the last financial year. So one more very important factor that we should consider is the increase in the absolute PAT number as well as increase in the earnings per share for the nine month period. So to summarize or on the profitability, standalone margins remain strong.
Consolidated margins reflect an investment and scale phase and absolute profit tools and are expanding steadily further. Also important to note that as our products, the PSP Exchange, Cash Management, Rate Finance move on to the monetization phase, the revenue mix will naturally shift and this will result in higher margin towards the IP legitimate. So while the margins may look optically compressed today, structurally the model will support margin expansion over the coming quarter. Now leaving with this thought, I would like to conclude we can now open the session for question and answers. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask Questions may press star and one on the Touchstone telephone. If you wish to remove yourself from the question queue, Press Star and 2. Participants are requested to use handsets while asking questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles. To ask questions, please press star and one. The first question is from Rajkumar Rati from Kotak Asset Management. Please go ahead. Mr. Rajkumar Ratty. You may go ahead with a question. There seems to be no response from the line of Mr.
Rajkumarati. We’ll move to the next question. Next question is from Kushal Kaslival from Invad Research. Please go ahead.
Kushal Kasliwal
Hi. Thank you for taking my question. So I think I’m slightly new to the company. But I just wanted to understand, you know or maybe clarify this point that your standalone numbers are currently driven by the SCF business alone. Or are there any other businesses apart from supply chain finance platform in the standalone numbers?
Raja Debnath
Standalone numbers are SCF only.
Kushal Kasliwal
Got it. And does this SCF business also include PSB business?
Raja Debnath
No, that’s a separate line. Okay.
Kushal Kasliwal
So PSB will come in console.
Raja Debnath
Correct.
Kushal Kasliwal
Understood. Got it. Can you properly split you know console numbers by business segment? Because I think in your ppt, in your you know presentation you have spelled out that you know you have some strategic IP investments of different platforms which you are trying to generate which include you know, your cms, lms, los. So can you maybe is it possible to give you know, top line numbers for the console business? Now SEF we know is in is in standalone. But apart from that business wise split and business wise also EBITDA margin profile of each business.
Payal Maisheri
Hello.
Kushal Kasliwal
Yes.
Payal Maisheri
So there in our results in the disclosures there is a segment wise breakup between the products and the services. To answer your question further out of the entire 82 crore of total 9 months revenue which comes from product 53.85 crore is the revenue that is generated from standalone region plus our organic growth that is the exchange, cash management and trade finance.
Kushal Kasliwal
There is a product wise pipeline which is given.
Payal Maisheri
In the results that are uploaded in the consolidated result in the disclosure. Just to summarize the product revenue out of the entire 214 revenue 82.4 crore comes from product and 131.3 is from services. And in the 82.4 we have the entire the standard loan, leasing plus the organic growth that is PSV, exchange, cash management, trade finance that all comes to 53.85.
Kushal Kasliwal
Got it. But within this overall product revenue I am assuming FCF will be the Highest EBITDA margin versus some of the new verticals like PSB and Trade Finance, Right?
Payal Maisheri
Correct.
Kushal Kasliwal
Would it be possible to give some, you know, numbers on this and maybe a future guidance on these products scale up, how do we expect the other products as well as maybe SCF and margin profiles today and maybe two years out?
Raja Debnath
You can give the first part, the margin profiles two years out and the numbers, how they pan out, that I can take.
Payal Maisheri
Yeah. So on the first part, in the nine months, YTD number, when I say 53.85 is the revenue, the EBITDA is 23.54 and PAT is 12.4 crores. Okay. For the products, these are only Visin Exchange Cash Management with Trade Finance products. So like you mentioned, currently our EBITDA margin for other products are a little low because it’s in a growth phase, in our monetization phase. So total EBITDA margin for all these products is currently 43.4 percentage. And with respect to the future growth, I think Raja can explain.
Raja Debnath
So just to reiterate, standalone, just scf, if you look at just SCF numbers, their ebitda margin is 52%. And when you look at this on a steady state basis, once cash trades, what are the product groups that we have? We have supply chain that we know what the EBITDA margins are. Then on top of this, what you will add are your cash trade Internet banking, Los LMS on this on a steady state basis, we should be looking at between 40 to 45% EBITDA. Okay, that’s what, that’s the EBITDA that we look at here specifically on PSB Exchange because that’s a separate type of business there.
We look at EBITDA from anywhere from 28 to 33%. That’s the margin that you will see EBITDA on the PSB Exchange business. That’s the way to look at it.
Kushal Kasliwal
And Raja, maybe can you also spell out some, you know, guidances or some expectations, maybe internal expectations on how to do you plan to scale up the other two verticals, which is PSV and Trade Finance. I’m sure SCF is now pretty much scaled, but maybe three years out. Can you give some guidance or some, some growth number around these platform business?
Raja Debnath
I think a good sense of that you will get from the deal pipeline. The fact that 78% of the deal pipeline right now, because all of these products have just been, just got ready over in the last quarter, five months, six months. Okay. That’s the time period you could think of it Them last quarter got ready. Now after getting ready, the team has already been working and already we are seeing a 78% pipeline of non SEF. So that gives you a clear idea of where we are headed. SEF will become one large piece of business.
Yes, but the others are catching up very, very fast, significantly. So that’s where the TAMs in those products are much larger than SEF. Those are much larger products than SEF. The challenge in terms of complexity was much higher out there and the world, the global banking world has been crying for products in that segment for the last 20 years. So the future seems most skewed towards the other products. SAF will continue growing, but as a percentage contribution, SE will clearly not be the major player, say couple of years down the line I think I agree.
Kushal Kasliwal
I mean I understand that. But you know, just in terms of my modeling exercise where, you know, I probably want to take a basis point out of this, this pipeline. I think in, in your deck you have USD $61 million of pipeline which you are trying to bid for. Or maybe you are in currently in evaluation stage. But from a modeling perspective, how much of the pipeline should actually get converted and after, you know, conversion. SCF is a basis point business. But just wanted to get a sense that how will revenues flow? Maybe you can tell me or some basis point numbers.
Raja Debnath
I wish. Okay, so the transaction banking business is unlike other SaaS businesses. So let me explain why first is that even after you sign a deal, the revenue starts hitting your account nine to 18 months down the line. Not because once you sign a deal post that there is an integration effort, there’s an implementation effort, then in more cases than not, the client starts building up their numbers. If there’s a data which they already have, it will migrate. So all of these processes could take nine months to 18 months, sometimes even longer than that. But once they start coming on, once it comes on board, that’s when you start making money.
That is in the SEO business, in the cash and trade business and Internet banking business there what we are seeing is the market is moving towards a recurring payment of pay as you go models, either monthly or annual subscriptions. We are seeing that with most of the deals that we are talking with our clients on. The same thing will happen there. Also that post signing, it’s nine to 18 months where they will transition. We’ll get some fees coming from this on the implementation integration side and the remainder will come once we go live. So the right way to look at these pipeline numbers is not to take a percentage and say next quarter or the quarter after, how much of this is going to come in? These are slightly more longer term than that from a revenue augmentation on the PL perspective.
So don’t just take these revenue numbers and just put a percentage and add them into numbers. They are some way off from hitting the PL right now. The numbers that are hitting the P and L, those may have been closed couple of years back. There’s a lag in this business.
operator
Thank you. Before we take the next question, a request to participants to please limit your questions to two per participant. Should you have a follow up question, we request you to rejoin the queue. The next question is from Himanshu Rathor from iim. Please go ahead.
Himansh Rathore
Rajesh. Good evening. Just one question. Looking at the pipeline, product pipeline that we have regarding on SEF businesses, this cash management constitutes about 26% which is more than SCF cash management. I mean two things. How are we distinguishing ourselves in this space? Because as you rightly pointed out, it’s a very thriving space. But this space specifically is characterized by single digit profit margins at max. There are companies like Zaggle who are finding it who are growing revenues at a great work totally focused on this segment but are finding it difficult to be value attractive, so to say. So my, my question to that end would be in the long run where how much what are the path margins that you expect from the consolidated business Given the fact that now we are steering our business away from the supply chain finance aspect and we are probably moving towards non sefari products and services as well.
Raja Debnath
Sure. The first thing when we say cash management business, we sell our products to banks. We don’t sell this product to anybody else. So the other names that you spoke about, they are all corporate focused. They do not run the core cash business of the bank. These are complex products. Nobody has in the last 20, 25, 30 years built a cash management product. So the, the product that we have and the product that you spoke of, Zaggle, they’re completely different. They are not same at all. A bank cannot take Zaggle’s platform and use it to run the cash management internally.
But Zaggle would be a great platform for a corporate to use outside. That’s the reason customers of Zaggle are corporates and not banks. Okay. Okay. The second point is that the EBITDA margins on the cash product would be very similar to the EBITDA margin on the supply chain finance product because these are enterprise grade products sold to bank and again a cash management product is not sold to each and Every bank, any mid sized and upper bigger banks are the banks which will take a cash management. So from EBITDA perspective, as I said, all these products, whether it’s Internet banking, LMS, trade, supply chain, they will all be between 45 to 50%.
40 to 45, 50% EBITDA. This is the range of EBITDA for these products because they are enterprise grade products. How we are differentiating ourselves, the differentiation is that we are a complete microservices based architecture. There’s nothing legacy in what we are doing. And functionally they are extremely rich with lot of AI which is embedded. Now the good thing for VSIN is these products have been born in the AI age and it is competing with the legacy software which was born many, many I think decades back and they have been used. That is the reason when clients are seeing this software they are super thrilled and they all want to have conversations with us.
Okay.
Himansh Rathore
Okay. Thank you. Thank you.
operator
Thank you. The next question is from Bharat Reddy from AB Capital. Please go ahead.
Bharat Reddy
Hello sir. Regarding the preparation round that was approved in 2025. Has the company now received the full amount for the allotted equity shares and 25% for the warrants? Yes, we have. Okay. And can you explain the utilization so far?
Payal Maisheri
The utilization breakup is already uploaded. So out of that there are four objects of the foundry. One is utilization for international expansion, product development, sales and marketing and general corporate profit over a period of 12 to 18 months. So out of the entire 94.3 crore, international expansion is 10 crore, product development is 49.33 crore, sales and marketing is 12 crores and general corporate purpose is 23 crores. That is a breakup.
Bharat Reddy
Okay, so next question like how does the management view the equity dilution over the next two to three years? Are there any further rounds that one can expect?
Payal Maisheri
Currently that is. Currently that is something that we will not be able to disclose. We will not be able to comment at this stage because it’s unpublished price sensitive information. However, if there is any such fundraise or any such happening it will be all the material events and the developments will be disclosed on a time to time manner.
Bharat Reddy
Okay, one last question so I can see we are hiring top senior executives from SG Finser. May I know what is the incentive structure that aligns this leadership with VPNs long term scale up.
Raja Debnath
Everybody who joins VFIN is on ESOPs and ESOPs of senior management always linked with the the revenues and the bottom line of the company. So the reward structure for senior management is always aligned with how well, the company will do in a long term and all around four year vesting periods on in terms of ESOPs.
operator
Thank you. The next question is from Darshul Zaveri from Crown Capital. Please go.
Darshil Zaveri
Hello? Please. Hello, Hello? People go on mute please. Yeah, hello, can you hear me? Yeah, hi, yes. Yeah, hi. So I just wanted to firstly congratulate you on a great set of results sir. And just wanted to know like in terms of guidance that you’d given previously, do we stick by that because we’ve acquired I think in terms of revenue. So we’ve already nearly. Yeah, we’re about to surpass that this year. So any kind of comment on our guidance for revenue and EBITDA this year and next year, sir?
Raja Debnath
Whatever guidance we are given during H1, we are in line to meet those.
So no change in the guidance. So we stick to that.
Darshil Zaveri
Okay, well I think the, I think we’re going to outperform that. That’s the reason I was asking for that. So
Raja Debnath
no, I think, I think let’s stick to that guidance. Last time I was, I ended up giving a guidance but as a rule we do not like giving guidance. But now that we gave the guidance last year last time, we are sticking to that. So even if we over perform, that’s great for the market but let’s stick to those guidance. Okay, fair enough. And just so with regards to our FY27 revenue, any color on, you know that how much do we are we targeting? So the same thing as you can see that whatever we had given as guidance, we will meet that and most probably surpass that.
Let’s stick with that. We are doing extremely well. You’re all seeing what the numbers are looking like. You are seeing that what we had committed in terms of the products being ready, they are ready on time. We are seeing traction in the market. We are seeing the supply chain continues to be a very, very strong product for us. We are continuing to see that the new products which we had built, they are complementing supply chain very well. The same clients who are taking supply chain are now coming back to us to take other products. So things are looking fine and good from that point of view.
So the future looks nice. That’s all I would say.
Darshil Zaveri
Okay, perfect, Perfect. So just one last question from my answer. So now when you. We’ve already, you know, develop a lot of new products. So any other product like you know, we are looking to know, enter maybe that can, you know, also, you know, grow. So just wanted to know like what are the new products that, you know, we are, you know, targeting right now. So maybe not this year or next year. Just a bit something that’s in development, you know that, you know that we see that a great potential right now.
Raja Debnath
There are always products on the horizon but nothing that we are developing right now because these products that we have ended up building, these are massive products. So all the investments that we have done now is the time to actually juice out the investments. So the focus of the team is now to juice out whatever we can from these products and concentrate on selling this more and more across the world.
operator
Thank you. Next question is from Hitendra Pradhan from Maximil Capital. Please go ahead.
Hitendra Pradhan
Yeah. Am I audible? Yeah. Thanks for the opportunity. So, so my first question is on PSP Exchange. My understanding is correct sir. Like this is where like we are, you know created a platform where we are aggregating the different vendors. Those are sourced by the fintechs and we help the, you know, banks in terms of the origination and we charge a commission of it. Right. So can you just elaborate on the revenue model? You know, how what is the commission that we are charging and you know, what is our net, you know, on the net basis, you know, what is our earnings from a transaction and what is our, you know, current transactions run rate is like on the PHB exchange.
Raja Debnath
As I said there are three parts to PSV exchange. There is the sourcing of business angle from where we get fees that 30 basis points. Then we have the technology where it is 20 basis points in a graded manner. Then you have the onboarding services which we provide to banks for getting the channel partners signed up onto the platform. For the bank specific bank There is another 15 basis points and these all basis points are on the AUM that the bank generates out of the platform. So that’s in terms of the pieces. It is not only for vendor finance, it is for all types of supply chain financing, including trade finance, including any other form of financing that either the corporate anchor or the channel partners or the dealers itself may require, including term loans.
Right now we have started with supply chain financing but all the others are also in the pipeline to come in one after the other. In terms of the throughput, we have just shared those numbers. In terms of where we are seeing that initial traction in terms of the number of corporates, the number of approvals, the limits that we have got approved, all of those have been shared in the presentation. It’s 4,000 crores as we speak. In terms of the approved limits which will eventually translate into actual Transaction AUM on the platform and that’s the EU on which PSB exchange gets revenue.
Hitendra Pradhan
That would be in total. Like sir, like as you mentioned it would be somewhere around 50 to 60 basis points. That will be our revenue.
Raja Debnath
Depending on which services each bank uses. Some cases correct. The lowest is 30. The maximum is 65.
Hitendra Pradhan
No is 30. Maximum is.
Raja Debnath
Okay. Yes.
Hitendra Pradhan
And sir, like on this, like the. The main driver is the 30 bits which is on the vendor financing. Right. So on that we need to pay.
Raja Debnath
No, no. Again I’m saying it is not just vendor finance. It is all forms of financing. Whether it’s a vendor finance, whether it is a dealer finance. For all for the financing the pricing is the same. It’s 30 basis points. To answer your other point. Where. Where do we have to share? Yes. If it is our own source business, we do not have to share. If it’s possible partner between 10 to 20 basis points is shared with the partner. Okay.
Hitendra Pradhan
If it is our own, we don’t say. But if it is sourced from someone then we say 10 to 20 groups.
Raja Debnath
Correct. Depending on what they bring to the table in terms of what services they provide. Okay, sir. Okay.
Hitendra Pradhan
Okay. Answer the second question. Just to clarify. Like you mentioned earlier, the standalone SCF business the contribution was 52cr on the product revenue which was 82s.
Payal Maisheri
53.85 is the grow revenue. So out of that standalone SEF business is 46.56 crore. And other products PSB exchange cash management rates as we have started which is monetizing now is the additional 8.3 crore. So that comes to a total of 53.85 crores. Out of the entire 82.45 crores of product revenue.
Hitendra Pradhan
I’m sorry if I missed this but why are we splitting this into product and services for the SCI business?
Payal Maisheri
I mean no, not for the SCI business. In the consolidated. In the standalone we do not give segment wise disclosure. In the consolidated books wherein we have IT services and other service entities. Also there we give a segment wise disclosure into product and other service entities. Entities which are into IT services and other types of service business.
Hitendra Pradhan
Got it. Mm. Our on the final one on the sales outstanding. So our consolidation has is over. Right. So this is outstanding will remain as it is or it will like change in, you know, future quarters.
Payal Maisheri
No, it will now. The consolidation is now done 100%. It will now continue the same date.
operator
Thank you. Before we take the next question, a request to participants to please limit your questions to two per participant. The next question is from PRIYANSH Marie from family office, Please go ahead.
Unidentified Participant
Yeah, thank you sir. Opportunity. Congrats on that.
Raja Debnath
Yes.
Unidentified Participant
Yeah. Sir, so I have a two part question I want to understand. Like though we had a decision period, we built the product, now we sold it, right? So what will be the down.
Raja Debnath
Sorry, sorry, you have to speak a little slowly because your voice is not clear.
Unidentified Participant
Okay. So I was saying, sir, we have recently shipped our product, right? So there will be a downstream dependency on the service revenue, right? So how do you see?
Payal Maisheri
Can you hear I’m missing the middle part.
Raja Debnath
Yeah. What is that word? That one word I’m missing that you have done this to the product. What is that word?
Unidentified Participant
Is it better now, sir?
Raja Debnath
Yes, yes.
Unidentified Participant
Yeah. I was saying we have shipped over six product, right? So this will also have our service revenue downstream potential revenue, right. So can you share some light? Like as we at the first stage of selling our product, right? Like what sort of revenue multiplier will see in our downstream revenue and also to mitigate those, what sort of hiring strategy we are looking ahead, like what percentage of on role employees. We need to increase that. And if you have any margin set.
Raja Debnath
On that, we get what you’re saying. We could have done that. But as a part of strategy we are going for a partner led strategy where we are partnering with system integrators globally in terms of helping us on the implementation. So we are not focusing right now on the services side of the revenue. So that is not the focus at all. So VFIN’s focus remains not on the service business, but on the product business. So we are not going ahead and assuming that there is going to be an effect on the service line revenues and therefore hiring, we are doing none of those.
operator
Thank you. The next question is from Arnab Bhattajarjee who’s an individual investor. Please go ahead.
Unidentified Participant
Hi Rajesh, thanks for giving me the opportunity. I wanted to understand one thing. I hope my voice is clear first of all.
Raja Debnath
Yes, yes, it is clear.
Unidentified Participant
So with respect to PSB Exchange, the way I see it, it’s more like a marketplace. So we have, we have the full stack deployed, right. Like every of our product. Is your eventual goal to move to move today’s existing clients also to PHP Exchange or do you see them still standing on, you know, standalone clusters?
Raja Debnath
PHP exchange is a very different piece. Just remember, PhD exchange is a marketplace which also has tech. The individual banks who work with us, they require tech not just to do work with PHB Exchange, but they all have their large sourcing teams themselves. So when their own bank teams go and source business, they require a core system which they can use for managing that business. That’s where BFILM standalone comes in. When they want business beyond what the teams are going and acquiring, that’s where PhD exchange comes in. So both of them are complementary in nature.
Banks will have their own teams go and source, put the business on PSV on vfin Banks after they have done the business sourcing from their own teams, they want additional business there, they will go to PHB Exchange. If they don’t have the tech, they will use PhD exchange tech. If they already have a refunded there, they’re only going to be doing sourcing from PHB Exchange. So their complementary businesses as such they will not. No bank will shift its entire platform, close its business and move to PhD exchange. Because they will have to still cater to the business which their own teams are acquiring.
For that they will always require reason.
operator
Thank you. The next question is from. From nuvama. Please go ahead.
Ankit Narshana
Yeah, thank you. Thank you for the opportunity, sir. So I just wanted to know like whatever you discussed right now, just wanted to get a clarity. Have you pivoted from supply chain financing? So can you just give a brief elaboration on that?
Raja Debnath
No, we are not pivoted. See, supply chain is our core VPN was known for supply chain VPN has used the same platform and on top of the platform brought in the entire transaction banking suite. So we’ve added more products to the recent supply chain. So when we are seeing here that our pipeline is expanding, it is not at the expense of the supply chain.
Supply chain has a life of its own. It will continue the other transition banking products which are there. They are now adding revenue on top of what supply chain was adding. So it’s not a pivot, it’s the same journey we are on. Just more products are getting added to vfin.
Ankit Narshana
Okay, thank you.
operator
Thank you. The next question is from Uday, who’s an individual investor. Please go ahead.
Unidentified Participant
Hello.
Raja Debnath
Yes. Yeah.
Unidentified Participant
Sir, I have actually two questions. One is good. Sir, what is the update for our merger plan? I see from the last update like BAC approval is still pending. Right. And how like when do you think this merger plan will be in action? Like any tentative update on that front?
Raja Debnath
The BAC approval has come in. We are at Sebi over the next week, 10 days. We are expecting that approval post that it goes for NClT.
Unidentified Participant
Right. Okay.
Payal Maisheri
Onto this. So basically BSes send their observation letter like what Raja mentioned. They have approved and sent their observation Letter to Sebi. The final NOC from SEBI is awaited. So once we get that NOC from Sebi in the next 10, 15 days we’ve already got some queries and we’ve replied to that. After that we’ll go on to the ncsc.
Unidentified Participant
Okay. My second question is on the standalone. Sir, what I know like as of now we are, we are having 70 recurring revenue in standalone where our SCF 4.0 SBF platform is. So that is running quite well and because we know until and unless the cons the merger plan actually happen the consolidated margin will be dragged because of the lower pack. So I, I just want to understand. What is the next like what, what is the assurance for recurring revenue in. Standalone business and is it, do we have a something like 57 years period. Locked in with clients like HSBC and all in standalone? Because that is quite a lucrative business.
Raja Debnath
Yes, all our agreements that we do, they usually come with 5 to 7 year lock in period including the names that you mentioned. So that’s, that’s one. And in terms of the amalgamation, we expect the amalgamation to be effective 1st April 2026. That’s what we have filed as the amalgamation scheme.
operator
Thank you. Next question is from Shubham from Minerva Capital. Please go ahead.
Shubham
Yeah. Hi. Good evening sir. Am I audible? Yes. So my question is regarding one of your previous acquisition in White River’s Media Solution which is a digital marketing agency. I wanted to know the rationale behind this particular acquisition.
Raja Debnath
This was a great case of an investment. So it’s a non core product for us but it was a great investment opportunity wherein the company is one of India’s largest independent digital content creation marketing companies. We have seen the company closely over many years. The company was something where we felt there’s an opportunity for us not not just to add value to them when it comes to their business by bringing in BFSI clients but they had a large roster of clients the secondary by nature but they had a large roster of clients where we thought we could bring those on onto the PSD Exchange.
Plus that company is now going for listing. It’s going for main board listing in this year itself. DRHP is supposed to be filed in June, July and he’s going for listing. So it was a great investment opportunity that we saw. Okay. Okay. And so as we are not giving out any guidance I wanted to know out of apart from TSB Exchange, what do you think would be the major driver of revenue for V? So I think the product company. So PHB Exchange. Yes, it’s got an outsized operating leverage upside. I understand that. I understand why the market is so taken in by PSB Exchange.
It’s a one of a kind product and we all understand that it’s a marketplace. A marketplace with all the banks and NBFC in the country. It’s a marketplace where it makes perfect sense for all corporates to be on the platform. So it will have a life of its own as soon as it starts. Because more banks means more corporates and more corporates mean more banks on the platform. So that’s great. But the core products of vfin, which is your supply chain finance and now going forward are other transaction banking products. They themselves have great opportunities because these are very large markets as such globally, not just India.
Globally these are very large markets where banks have been looking and waiting for a new platform, a new product to come in. So we are very gungo about our product business which is there along with what will happen in PSV Exchange. So it’s not either or, it’s both. Yes sir. If you can quantify a little bit total addressable market and what kind of percent in terms of percentage revenue growth you see from these other products apart from PSV Exchange, that’s what I will, I will refer. It’s a little technical so I will refer you to our last H1 presentation that we had shared the earnings it got product wise TAM for each of these.
So that will be very interesting reading for anyone who’s interested in the VFIN story where it talks of each product and the time that we’re looking at. The total TAM across all of these products is between 40 to 65 billion dollars annually.
operator
Thank you. The next question is from Ashuraj who’s an individual investor. Please go ahead.
Unidentified Participant
Yeah. Hi. Thank you for the opportunity. I joined it a bit late so I’m not sure if the question is repeated but my question is that two questions. First question is when we report the numbers we show entire revenue but we show only the profit based on the stake that we have. So I wanted a question was can we not show the revenue also in terms of that way like 10% for a subsidiary if we are showing profit 10%. So that’s what my first, first question is. That will give a more realistic figure how it looks from my side.
Raja Debnath
I wish we could have done that but pile. You can answer this.
Payal Maisheri
So in the PNL, in our consolidated financials we show entire 100% revenue and the PAT is also 100% for initially and after that we reduce minority interest from the entire pat and we show the PAT which is available to the shareholders of the company. The main reason for consolidating the revenues on 100% and the PAT is because we hold management control or maximum board control in all of these entities. Therefore, as per IGAP account as 25, we need to consolidate the revenue and the expenses all at 100% basis and then we bifurcate the NCI. So just to clear out your question, we not just consolidate revenue 100% but until the PAT it’s all 100% consolidated after PAT.
When we, we divide the PAT into the NCI which is the non controlling interest and the percentage available for recent shareholders.
Unidentified Participant
Okay, thank you. And my second question is what’s the plan on the timeline to increase our take in applicant Defy Easy AI.
Raja Debnath
So. We have the, the agreement for that is somewhere in 27. 2027. So it’s not right now, It’ll come up later.
Unidentified Participant
Okay. All right, thank you. All the best.
Raja Debnath
Thanks.
operator
Thank you. The next question is from Pradeep who’s an individual investor. Please go ahead.
Unidentified Participant
Thank you all. Great performance. Thanks. My first question is this. So are there any subsidies which are performing, performing below average, are making loss? So what’s the strategy to bring up the speed?
Raja Debnath
Can you repeat the question please? It is not very clear.
Unidentified Participant
Yeah, we have many subsidies, right? So are there any subsidies subsidiaries which are performing below the average, below the profit range?
Raja Debnath
Yes, we have, we have subsidiaries, as we said, some of our subsidiaries which house our PHB Exchange, our transition banking products. These are all in the investment phase right now. So yes, they will be loss making but are they performing below average? No, absolutely not.
They are performing extremely well in line with what we want them to perform right now because they are in the product build out phase. So the right way to look at those companies are today they are in product build out phase. The expectation from them should be how far they are able to build out the product, how well the products are accepted by the market. So as long as they meet these two parameters we would classify them as performing well. And that’s the reason we see that very strong pipeline and traction on both of these.
My next question is when can we expect like if you want to improve like 5 to 10% of the bottom line. So when can we expect that change and what are the focus areas to get that improved number? The numbers will improve on a standard basis just by new products starting to pump in revenue. Because if you, if you look at our entire structure right now we are in the product build out phase in most of the products other than supply chain financing. The supply chain financing is great, but everything else is in the product build out phase.
When you also look at the pipeline, you see that now that there’s a lot of traction which is seeing on the other products which you had not seen even last time six months back or three months back when we had the last call. So you’re seeing a lot of traction on the new products. So that means that we are all on the right track in terms of where the strategy was, what we had envisaged and whether the execution ability. Execution ability is in line with what we have strategized. So we are very comfortable with how we are executing on our strategy.
Okay. And on request is. So when you. When we have a winner, huge deals like let’s example like less than 2 million assets. Can you if you that publisher or a BSE site that will be a great. Sorry question. See, as a SaaS company, we generally can’t publish our future revenues out there because that’s something which our clients will also not like. So we don’t do that. But we do keep publishing our large deals at BSE and we’ll see to it that in future also what we do, we continue publishing.
operator
Thank you very much. We’ll take that as the last question. I would now like to hand the conference back to the management team for closing comments.
Raja Debnath
I think I would like to take this opportunity and thank everyone for being with us on this journey. I know it’s an exciting journey. It’s a first of its kind for many of you too because it’s a new segment, complex segment, new type of business. But we are very thankful for the faith that all of you have reposed in the management and the company. Thanks a lot.
operator
Thank you very much on behalf of Pfin Solutions limited that concludes the conference. Thank you for joining us ladies and gentlemen. You may now disconnect your lines.