Choice International Limited (CHOICEIN) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Q&FI 27 Earnings Conference Call, hosted by Choice International Limited. As a reminder, all participants' lines will be in listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star-0 on your touch-tone phone. Please note that this conference is being recorded. I now hand over the conference to Ms. Ashvi Shah from AdFactors PR Investor Relations. Thank you and over to you, ma'am. Thank you.

Good evening, everyone. On behalf of Freud International, I welcome you to the Earnings Conference call for Q120, FI27. Joining us today from the management, we have Mr. Arun Podar, Group CEO, Mr. Ajay Kejriwal, Executive Director, and Mr. Ayush Sharma, CFO. We will begin today's call with opening remarks from the management, following which we will open the floor for Q&A. Before we begin, I would like to remind everyone that certain statements made during this call may be forward-looking in nature. These statements are based on the management's current expectations and are subject to risks and uncertainties that could cause actual results to differ mysteriously from those expressed or implied. Choice International Limited undertakes no obligation to publicly update or revise any forward-looking statements based on subsequent events or developments. With that, I will now hand over the call to Mr. Arun Pogha to share his opening remarks. Thank you, and over to you, sir.

Thank you, Ashwin. Good evening, everyone, and thank you for joining us today. FY27 has begun on a steady note for India's financial service ecosystem with evolving investor behavior, greater digital participation, and increasing... Finalization continuing to shape the market for choice. The environment provides an opportunity to strengthen our capabilities across businesses and expand into area of financial and the professional services. Q1 F527 marked a steady start to the new financial year. Our focus remains squarely on execution. Strengthening each business vertical, improving our institutional and distribution franchisee, building our product capabilities, and branding the platform through which we serve the client. Alongside this, we continue to lay the foundation of future growth through strategic partnership and by expanding our footprint. The broking and distribution business continue to see steady traction. With cash delivery remaining a key focus and supporting revenue quality and stability, the segment contributed 59% to total revenue, while stock-broking AUMs stood at Rs.62,226 in Q1 FY27. It's growing 30% YOY basis. Wealth AUM increased to Rs. 4,961 crore, supported by continued participation in delivery-led product. Our 70,000 choice business associates continue to complement our digital distribution capability and expand our reach across market. During the quarter, our D-Mate account base increased from 12.94 lakhs. Up 13% YUI basis, added by improved onboarding and a broader product suit. On an institutional side, so is institutional equity is hosted inside X-2026, bringing together 100-plus corporates and 150-plus institutional investors and allocators. The conference provided a platform for corporate and investor to engage on business outlook, industry trend, and the growth opportunities. We also continued expanding our asset management. Choice AMC Private Limited receives ABE approval to act as an investment manager to Wealthware Capital Trust, a CAD-2 AIF, sponsored by Choice International Limited, supporting the continued development of our alternative platforms. Beyond our retail distribution business, insurance continues to see a TV section, supported by an Spending partner network and the greater adoption of digital channels. Premium collections, 2 debt rupees, ethical audiness, quarter 1, 27, is a 5% YOY basis, while policy volume increased to 67, 828 representing 73% growth over the same period. I'm also delighted to say that Q2 27, we strengthened our strategic partnership with NH, Investment and Securities, through a 900-crore investment in choice equity broking. This partnership is an important milestone for us and will support our growth across broking, distribution, MTF, technology, while further strengthening our long-term expansion plan. Now coming to our NBNC business, we remain focused on secured lending with MSME micro lab and rooftop solar financing continue to be the key area of growth. The loan book stood at Rs. 836 crore. As on Q1 FY27, contributing 13% of total revenue. Our in-house collection capabilities continue to support the asset quality, with NNPA at 2.74% as on June 30, 2026. Lastly, our consulting business continue to build on its product pipeline during the quarter. With an order book of 777 crore, Across digital packs and the multiple product, multilateral support initiatives, the segment contribute 28% of total revenue and provide visibility over next 2-3 years. Adding to this momentum are consulting subsidiaries, Choice Consultancy Service Private Limited, and Dialogia Consultant Private Limited. Secured government mandate aggregating approximately 191 crore rupees across e-governance, infrastructure, project management, and the financial consulting. These engagements further add to our order pipeline and strengthen our presence in government and the infrastructure consulting. Investment banking also remained active with one IPO completed during the quarter and 30 mandate currently under execution. The overall pipeline stands at over 6,766 crore. With that, I will now hand over to Ayush Sharma, CFO, to take you through the financial performance of the quarter. Over to Ayush Sharma.

Thank you very much, sir. Let me begin with an overview of how the business performed in the opening quarter of FY27. Choice closed Q1FI27 with a consolidated revenue of Rs. 319 crores, which is higher by 34% over the same quarter last year, and almost 1.6% on a sequential basis. EBITDA came in at Rs. 114 crore, holding a margin of 35.75%, as cost disciplines continued to work in our favor. At the bottom line, profit after tax would be 61 crores, a margin of 19% and an increase of 26.37% on a viable basis. It has been an increasing opening to the financial year. These numbers point to consistent delivery across our verticals and reaffirm the resilience that a diversified model brings. Turning to the individual businesses, broking and distribution brought in Rs.197 crore of revenue for the quarter, contributing Rs.48 crores at the PBT level. The demand-based base now stands at 12.94 lakh clients, and per-client activity continues to deepen as we widen the uptake of insurance and wealth offerings across the ChoiceFenix platform. On the lending side, the NBFC posted a revenue of Rs.45 crores. Book quality held firm through the quarter with gross NPA numbers at 3.78% and latency at 2.74%, an outcome of prudent underwriting, tighter collections, and a well-spread loan portfolio. Margins stayed comfortable with NIM at 11.10%, consistent with our preference for secured exposures. The advisory business rounded the quarter with Rs.91 crore in revenues. By way of, you know, a steady pipeline of mandates. That covers the headline numbers. I am happy to take your questions from here.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.

The next question is from the phone.

The first question is from the line of Narshi Kej from NK. Please proceed with your question.

Yes, hi. Good evening, sir. Thanks for the insights in your opening and good progress on the key initiatives you've taken. So, I just wanted further information that since you've taken NH Investment as a strategic advisor. Could you share some broader strategic value, like beyond capital inclusion? Is there any focus areas like options or access to clients in Korea or, you know, like overseas access or product distribution, which we could benefit from?

Sure, sure, Nachiket. Thanks for your question. This is an important question, certainly. See, capital infusion is one part of this particular transaction, and I would say a smallest part of this particular whole transaction. The larger objective in having this transaction was to have an integration with the NHIS core strengths. So, NHIS is very strong in the institutional businesses globally, and more importantly in Southeast Asian markets, be it Korean, Hong Kong, Singapore markets, and as well as they have their global presence across U.S. markets as well. So, the immediate, you know, kind of synergy will be to integrate the institutional businesses or the institutional clients which they serve through their global offices, and those clients will also be having some sort of business activities here in Indian markets. So, we'll be looking to cater to that, and that will be the first low-hanging fruit. Secondly, they are also very active in the investment banking deals across, you know, multiple jurisdictions. So, that will also be some sort of, you know, the additional integration, business integration we'll be looking at in the coming years as we, you know, integrate our businesses with the NHIS. So, these are the kind of advantages, apart from the capital, which we are looking at from this particular deal.

And on this incremental capital which gets deployed, is there any internal targeting as to what kind of capital return you target or what kind of incremental ROC can be generated?

So, see, I mean, I'll tell you the deployment sort of thing for this particular capital, which is being raised from this particular transition. We are, I mean, we have the sufficient internal accruals to fund our expansions, etc. The larger utilization of these funds will be towards development of MTF portfolio, as well as, you know, the settlement funds which we provide to our customers as per the regulatory guidelines. So, the growth will be in these portfolios and eventually the increased interest income as well as the brokerage which we will charge on the increased trading activity for the clients will result in an additional profitability for the company.

Okay, great. Thank you, sir. I will get back in.

Thank you. The next question is from the line of Samrudri Bane, from Air Security. Please invest with your question.

Thank you for taking my question. Just a small question regarding our improvement in NLPA. So, we can see that it has improved from the last quarter. So, how much of this improvement is driven by recoveries and upgrades? And I would like to know that.

Sure, sir. So this is largely driven by the collections which has been done by our ground team. We have an in-house collections team which is responsible for all the collections which has been slipped from the bucket of sales team. So the initial primary collection target is for the sales team. Once the cases are out of the control from the sales team as per our internal policy, these are allocated to our internal collections team. So, the recoveries are done wholly by our internal collections team, and this is when the improvement is a result of collections done by our internal collections team.

Oh, okay. And my second question was regarding our NDFC segment. We expect that the AUM is expected to increase by 20 to 30 percent. On the stable interest rate environment. So how do you ensure that the credit quality will be intact? And just one small question in this that what will be the mix of secured and unsecured lending in the incremental loan book in Q1?

No, so we are fully focused on the secured loan portfolio only. So whatever loans we do are secured by way of collateral in some or other form. Right. So, it will be largely driven by the growth in the secured loan portfolio. On the growth aspect, see, we have an in-house, you know, proprietary credit assessment engine, which runs the primary credit check for the customers. Although, once the machine does the credit, we have the human intervention as a mandatory check where, you know, the first, the ground physical verification is done by our credit team for the customer, and secondly, the central credit team re-verifies the output given by the machine and reconciles the same with the ground visit of the credit team guy. Once everything is reconciled and verified at the center level, we do the final sanction to the customer. And this is what has been able to help us, you know, to maintain the asset quality and will continue to help us to maintain the asset quality over the next. Growth cycle as well.

Okay. And just to confirm that the incremental loan book in Q1 will be most probably from secured side, right?

Yeah, that's right. That's right.

Okay.

Thank you. Thank you. Participants who wish to ask a question, please press star and 1 at this time. The next question is from the line of Vivek from Jaila's family office. Please proceed with your question.

Thanks for the opportunity. Can you hear me? Yeah, yeah, thank you. I hope not too well. Yeah, so I have two set of questions. One is EBITDA and PAC declined sequentially in Q1FI 27, although both remain higher year on year. Could you help us understand the key factors behind the sequential moment and whether this was largely due to seasonality or timing related factors? And how should we think about the underlying profitability run rate going forward? Secondly, as the advisory order book continues to grow, how should we think about margins going forward? And do you see the changing mix of projects, including larger government-led mandates, having any meaningful impact on EBITDA margins?

Sure, sure, Vivek. So, firstly, you know, on the advisory order book, yes, so we expect that the mix will change from, you know, currently the heavy infrastructure advisory segment to other consulting segments as well, Which is largely the governance framework development or IT and IT-related consulting assignments or other project management, you know, kind of projects which we plan to grow with the government. So that's the kind of change which we are expecting in a mix of order book or in our government consulting book. As far as the margins are expected, we are currently maintaining a margin of around 20% net margin in the advisory business as well, specifically the government advisory business, and we expect to maintain the similar margin levels as we grow in the size as well.

Okay.

And lastly, I have one more question. Solar financing is a relatively new collateral-free product. What was its Q1 disbursement and outstanding AUM, and how does its yield, cost of funds, credit costs, and ROA compare with the traditional MSME book? And also, at what scale do you expect solar financing to become a meaningful contributor to NPSP earnings?

Okay, so solar is a relatively very small portion as compared to the overall portfolio. I really don't have the current AUM number handy with me currently, but we can certainly share the same. I mean, we can certainly try to publish the same in the next public disclosures at the stock exchange. However, as far as the growth of solar portfolio is concerned, let me be very clear, it is a very high price competitive market and we are very sort of profit centric organization where, you know, we don't compromise on the cost of on the ROIs when we consider, you know, growing the portfolio. So, we expect that we will continue to maintain an ROI of, you know, around 15% for the end customer while growing the solar portfolio. Our target is to grow this portfolio to sort of 150 crore rupees by the end of this financial year.

Got it. That's all from my side.

Thank you.

Thank you. The next question is from the line of Anirudh Sharma from Ekant and Basans. Please proceed with your question.

Hi, good evening. Am I audible?

Yes, Aniket, you are audible.

So, yeah, I had a few questions from my side, and my first question is on the mutual fund business. Could you give us some perspective on the monetization roadmap? Given the current AEM base, how do you see the AEM's revenue contribution evolving over the next two to three years, and what AEM scale would allow the business to become meaningfully profitable?

Sure. So, see, AMC is a longer vision for the choice group. It's not a shorter term kind of initiative. We see this as a longer term venture for choice. We have recently, we are currently focusing on the passive products to grow in our AMC business. Our target is to launch the active schemes as well by the end of this financial year also. As you know, we are currently in the setup phase. We expect this financial year to grow, I mean, to make sure that we have all the required skills, all the required team and manpower in place and launch the couple of schemes in this financial year. And our proper growth risk for the AMC business will start from the next financial year. Moreover, we are also a distributor of mutual funds. There, the AUMs have grown significantly because we have been distributing the mutual fund products of other AMCs as well as part of our wealth management business. So we expect that we continue to maintain a growth rate of around 30-35% in the overall AUM on a YOY basis in the mutual funds distribution business.

Okay, sir. Understood. Understood. And, sir, you are targeting a significant increase in the AMC-AUM by the end of FI 27. Could you elaborate on the product and the distribution strategy supporting this growth, and how do you see the contribution evolving across ETF, active and or passive funds, AIF, and third-party distribution?

No, in the AMC business, this year our focus is on passive schemes only. By the end, we'll launch the active schemes, and growth in active will come in the next year onwards. So this year, the larger focus on the AUM growth in AMC will be on the passive schemes itself.

Okay, okay, understood. One last question from my side. Solar financing is a relatively new and collateral-free product. What was its QN disbursement and outstanding AUM, and how does its yield, cost of funds, credit cost, and ROE compare with the traditional MSME book? And at what scale do you expect solar financing to become a meaningful contributor to the NBFC earnings?

Sure. So, firstly, solar is also not a collateral free business. We do take solar equipments as a collateral while financing, you know, the solar equipments to the customer. So, we have certain, some sort of collateral which can be repossessed and sold in case of frequencies. So, it's a completely secured product for our MBFC business. Secondly, as I mentioned that it is a high competition business when it comes to rate of interest to the end customer. We have been maintaining an weighted ROI of around 17-18% on the solar portfolio. We have to bring it down to around 15%, which is already there in the pipeline. And by the end of this financial year, we expect the AUM to reach at around 150 crore rupees for the solar financing product.

Okay, understood, sir. That's it from my side. Thank you for the opportunity.

Thank you. Before we take the next question, we would like to remind participants that you may press star and want to ask a question. The next question is from the line of Man from Nordstar Investments. Please proceed with your question.

Hi and good evening, everyone, and thanks for the opportunity. So actually, sir, I wanted to have an update on the current merchant banking pipeline across your main board, your IPO, let's say SME IPO, and all the other capital market transactions. And what do you think all these opportunities to start and convert into your revenue?

Okay. So, Man, firstly, on the conversion to revenue side, we have the hybrid kind of arrangement with the customers for whom we, you know, raise funds by way of IPOs. So, it is some portion of fees is during the preparatory phase and some portion of fees is post the completion of the IPO. So, revenues are ongoing. We are continuously generating revenues from the current mandates. We have the, as mentioned previously, we have the current mandates for the fundraising size of around 6,600 crore rupees, approximately, which we expect to complete over the next one and a half, I mean, one to one and a half years time as the market provides the suitable timeline for the industry-specific IPOs to come up. Having said that, a couple of IPOs are ready. As we get the suitable opportunity from the market sentiment perspective, we'll immediately come up with the opening of the IPOs in the investment banking business.

Okay, that's really good to hear. And another question was on your new Category 2 AIF approvals. They are in place right now. I just want your, what's the corpus and the broad investment strategy and how quickly do you expect this business to start generating revenue and meaningful in your AMC?

So, it's part of building our internal capabilities in the alternative space. This is the first AIF, which is sponsored by Choice International, and our AMC is going to act as fund manager for this. As we build the sizable AUMs under this AIF business, we'll come up with further alternative investment options for the investors. Currently, this is a pre-IPO focused fund, largely focused on the pre-IPO opportunities where we invest in the pre-IPOs in the companies which are coming up with the IPOs. We are working on other investment strategies as well. As soon as we are ready with those, we will come up with more alternative investment options for the investors.

Okay, okay. I mean, that's good to hear.

Thanks a lot, sir. This is from the line of Dhanraj from Kubeir Advisors. Please proceed with your question.

Hello.

Yeah, hi.

Hello. Am I audible?

Yes, yes, you are audible then.

Yeah. Hi, sir. Thank you for the opportunity. So, I just have a couple of questions with me. I'll just start with the first one. So, considering the... Hello.

Yeah, yeah, Dhanraj, you are audible. Please go.

Okay. So, considering the current pace of AM growth, so what would you expect the AMC to reach the, I mean, when would you expect the AMC to reach the EBITDA rate, and once the business reaches scale, what kind of margin profile would we can expect over the median term?

Okay. So, on the AMC business specifically, we have a plan to bring the business to BEP in the next two to three years timeline. As the AUM grows to a certain size, we will achieve the BEP numbers. We are not currently giving a guidance on what that AUM number will be because the size is small currently. So, as the size grows, we will certainly start discussing about the guidance on the AUM numbers as well.

Okay, okay. Also, let me throw some lights on recent collaboration with NH security and what is the nature of this diagram and how this will reflect on our business?

So, as I mentioned previously, Vinraj, this transaction is more than just a fundraise for Choice Equity Broking Private Limited. So, Choice has commanded a strong hold in the retail business across India. Now the idea was to, one, to expand into institutional business space and second to have the global presence as well. This strategic partnership with NHIS will help us to expand our institutional businesses across India as well as the global markets and also we will be able to provide global access to our Indian customers also through this particular partnership. So, these are the kind of advantages which we see, and this will certainly help us to have a multifold growth in our revenue and profit numbers in the broking space.

Okay, got it. Okay, so that's all from my side.

Thank you. Before we take the next question, a gentle reminder to participants, if you wish to ask a question, please press star and one now. I repeat, to ask a question, please press star and one at this time. Thank you. The next question is from the line of Raghav from Raghav & Company. Please proceed with your question.

Sir, my question is, sir, you have partnered with IETT. It's a financial year ending, can you impact their net profit?

So, yeah, Raghavanji, I heard your question. So, see, this is currently at the integration stage. We are integrating our systems with the IPPB systems. As soon as that is completed, we will go ahead, I mean, we are expecting to complete this by end of this month only. As soon as the integration is complete, we will initiate onboarding customers through the IPPB platform. Depending on the initial volume which we see from the month of September onwards, we will be able to give some guidance on the overall impact in the patent revenue numbers through this partnership. However, we are very confident that given the exclusive nature of this partnership with the IPPB, we will be able to onboard a large chunk of customers from the IPPB platform on our wealth management platform.

Actually, I think Arun sir has already said a couple of months back, from 1st July, the revenue will start kicking. I think you are already late by 3 months, right?

No, it's by end of this month, we will complete the integration, and from 1st of September, we will start onboarding customers.

So what kind of revenue number can we expect from it? Like just a hint, say for example, for Q4 only, since Q2 would be gone, Q3 and Q4, any idea?

Sir, it's little early to give a guidance on the revenue number from this partnership. Once we start onboarding the customer, we will be able to probably give you some guidance.

Okay, and about 900 crores, that NH investment, when that amount will be received by you?

In this quarter itself, sir.

Probably this quarter itself.

In this quarter, Q2 itself, we will get the money.

So means from Q3 onwards, the real growth will kick in the numbers, right? Because from the Q4, like Q3 last year, Q4 last year, and this Q1, the sales had been flat around 300 CR, and the profit had been flat around 50 CR. QQ, there is hardly any growth. It's normally flat. So that's why I'm asking, since the company is saying 50% CHR for next couple of years, but Q1, Q, there is no growth since last three quarters.

So, if you will see the quarterly number from Q1 FY26 versus FY27, revenue has already grown by 34%.

No, I'm not saying YOY. I'm saying QQ. Q3 last year, Q4 last year, and Q1 of this current year. Last three quarters, the sales have been flat around 300 crores, and profit has been around 60-70 crores. So, I'm asking, last nine months, the sale and pet has been normally in a particular range. There is not a like QQ massive growth of 30%, 40%. I'm talking about that. When we can expect as a shareholder that QoQ growth will come, not about why or why.

Yeah, yeah. So, Raghavji, one thing is that some portion of this growth is attributable to the seasonality of the markets. But you can certainly see a tremendous growth after this money coming in because the money will also get to work in the business. So, that growth will certainly start coming in from the Q3 onwards.

So probably from Q3 onwards that 50% CGR can be maintained. So Q2 would be flat is similar like Q1 only. That's what I'm just guessing.

Q2 will also have certain amount of growth, but it is difficult to give some guidance on the Q2 numbers at this moment because of the recognition. But growth will definitely be there in Q2.

But the real growth will kick in from Q3 onwards.

I am telling you specifically on the money coming in in Q2 and the growth because of that money coming in, we will start seeing in Q3 onwards.

Yeah, that would be the big movement. That's what I'm trying to get.

Yes, sir.

And just I want to understand, like we are talking at top line around 1200, 1300 crores, like on an annual basis, everything, okay? So, after this money comes in, that 900 crore and IPPP partnership, when it starts kicking, for example, two months later, November, December, roughly. So, for next year, what can be a massive growth if we expect from the top line and bottom line for next year? Just keeping in mind two points. First, IPPP partnership grow now. Second, the 900 crore investment comes in. So, what kind of real growth can we expect for next financial aid? Just like, just an idea.

So, sir, once, I mean, firstly, the base is going to grow from this financial year itself, from the last year's fat of around 236, 237 crores. This number will grow for, you know, tremendously in this financial year itself because of the two transactions or two events which you just mentioned. And over and above that, we expect another 50% growth in the next financial year itself.

So the CAGR will be maintained because of these two connections, right?

Yes, yes, sir.

And another thing I want to ask, since your main, like, major trend comes from your broking business, 50 to 60 percent, sales tax, okay? And 25 to 30 comes from your consultancy, which are the two best segments. Then what about the NBSC? Doesn't you think like it comes as a drag on your top line, bottom line, it consumes a working capital and doesn't generate that much of return, which these other two segments generate?

On the profitability side, definitely the ROE is higher in the broking business and that is why the highest capital is also allocated to the broking business. From the diversification perspective, you know, relatively smaller capital is allocated to the...

No, no, I got your point. But in simple words, in Hindi, I will talk about it. One, two, or three business, first, second, consultancy, third, NBFC. Broking and consultancy are high margins and high chance. Growth is great. Consultancy is great. Broking and investment is great. Multiple, multi-level, the third layer of NBFC is the third layer of NBFC. If you put 100 crore in there, you get the return of the money. You withdraw the money. If you buy the top two business, if you buy the high ROVs, you generate the third business. Good morning, everyone, and welcome to the call.

So, Raghav ji, NBFC ka vi ek gestation period hai. As soon as we achieve certain milestones in the NBFC business, this will also start giving a higher ROI as compared to what it is currently giving. So, it's just a matter of another, we expect another one year, and within a year, we will start seeing the higher ROI in the NBFC business as well.

It will take one year, na?

Yeah, yeah.

Okay. Thanks, sir.

Thank you.

Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and one now. The next question is from the line of Ajay from Axigen. Please proceed with your question.

All right. Hello. Am I audible?

Yes, yes. Yes, sir.

Yeah, yeah. Hi, sir. Congratulations on good set of numbers. So, actually, one part of my question was already answered. I just wanted to get your guidance on the segmental businesses for, like, your broking, NBFC, AMC, investment banking, etc. So, just could you give me a guidance of the next two years and how you plan to, you know, implement the same and achieve the same?

Okay, so currently, as we rightly discussed during the course of this call, we have, you know, almost 60% revenue coming from broking, 30% from advisory, and roughly around 10-12% from NBFC business. We expect the mix to be around 50, 40, and 10 over the next couple of years. It's not because the advisory will grow, you know, advisory will only grow and broking will not grow. Broking will also grow, but advisory, because investment banking is also clubbed with the overall, you know, advisory segment only. So, that will have an overall added edge over the growth of the NBFC. So, therefore, 50, 40, and 10 is the kind of ratio which we expect to see in the future in the segmental mix.

Okay. Okay. Thank you.

Thank you. Before we take the next question, we would like to remind participants that you may press star and 1 to ask a question. The next question is from the line of Raghav from Raghavan Company. Please proceed with your question.

Sir, another question I was asking, I think six months ago, the CEO Sir Arun said on the television that we are opening 100 branches this year. What's the update like six months have gone this calendar year and hardly I think 10 branches hardly have opened. What's the update on that?

Sir, we have finalized good teams. It is more important that we grow with the right set of people. So we have already finalized, you know, teams at various locations. As soon as their current employment with their existing employers get over, we will open our dedicated branches at those locations and start doing businesses in those locations as soon as possible.

I got your point, the paperwork will be there, but realistic number?

We are on track with our growth target of 800 branches over the next 3-4 years time, so that we will certainly achieve such.

We are around 210-220 branches, I think, if I am not wrong. So by end of this financial area, for example, March, what kind of number can we expect?

For March, we can expect somewhere between 300-350 kind of branches.

Nearly 100 bunches we will open in the next 6 months?

Yes, sir.

Thank you. Ladies and gentlemen, that was the last question from the participants. I would now like to hand over the conference to Mr. Ayes Sharma for closing comments. Over to you, sir.

Thank you. Thank you very much for your questions and your interest in choice. Let me close this with a brief thought. FY26 was focused on building the businesses steadily and strengthening our fundamentals. We have carried this approach into FY27, with the first quarter showing continued progress across our businesses while maintaining a disciplined approach to growth. Thank you once again for joining us today and for your trust and support. We look forward to staying engaged with you throughout the year. Thank you. Thank you very much.

Thank you. On behalf of Choice International Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.