Subex Limited (SUBEXLTD) Q4 2026 Earnings Call Transcript

Good morning, ladies and gentlemen.

I'm Madhuri, moderator for the conference call. Welcome to SUBEX Limited Q4 FY26 Earnings Conference Call. As a reminder, all participants will be in the lesson on remote, and there will be an opportunity for you to ask questions after the presentation concludes. Do you need assistance during the conference call? Please signal an operator by pressing star and then zero on a touchtone telephone. Please note that this conference is recorded. I would now like to hand out the floor to Mr. Pratik from Investor Agency EY. Thank you and over to you, sir.

Thank you, Madhuri. Good morning to everyone who have joined the earnings call for the quarter ended March 31st, 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 Harvard 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.

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 as 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 to VEX and return it to a growth path. In this time, we have strengthened the fundamentals. We have exited non-coast businesses. We have freed up capital. We have refilled 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 evaluation. 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 three. 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. But 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 will be direct any time 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 suggests. On profitability, our EBITDA is at 14.5% and PAT is 13.6% for the quarter. Positive EBITDA is 9 out of the last 10 quarters. See successive quarters of positive PAT. That consistency does not happen by accident. It reflects three years of genuine operational development, and it gives us a platform to accelerate from, not just a baseline to defend. Our liquidity also strengthens 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 fully. 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 it is for 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 assets management solution. Our competitor accounts we won back for business assurance in Middle East. In my view, one of the clearest signals where our product credibility stands today. Customers don't come back unless a product has earned it. A new deal in North America for AI handset fraud solutions on FraudZap, 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 JNI-based software development. We are embedding JNI across our entire SDRC. 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 build. The compounding effect of it will show up in our ability to deliver to customers and to the market. And now on FI27, 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 your eyes. But here is what I keep coming back to. The pipeline is real, the market conversations are strongest as they are being, 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 reserve for Q4. All the numbers are in INR. The revenue for the quarter stood at 72.96 crores, as it is 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 PAT for the quarter stood at 9.93 crores, against 2.9 crores, including exceptional items in the previous quarter. And thank you for listening. I don't just wait for your questions. I welcome them. So let's get into it.

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 and 1 on a telephone keypad. The first question comes from Mr. Ajayi Doshi, an individual investor. Please go ahead.

So please go ahead with your questions, sir. Ms. Ajay?

Sorry, there is no response. The next question comes from Sanjot Karev, an individual investor. Please go ahead.

Hi, good morning, Nisha. I'm audible. Hello. Good morning. Can you hear me?

Yes, you are.

Hi, good morning. Yes, you are. First of all, congratulations on a good set of numbers and good operational reasons. And in the last five years, I think this is one of the best 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 the revenue. And in last one year, I think company has got orders more than 150 crores. Mostly in whatever the 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 I'll be seeing that, at least for Q1, whether the revenue will grow faster than earlier orders.

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 sideline and the audit 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. Yes, there are two ways to look at it. It also gives us annuity revenue as we go into the, you know, 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 this. 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, you know, So, 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 relocating. So, we are expecting to see an uptick from – on the back of what will be one last year.

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 work Sub-Ex is doing in the Middle East as well as the countries which are impacted in the global economy. So that is one impact. And second, again, the AI impact which is coming up. And a lot of these companies are coming up with a lot of offerings which are complementing offerings Offerings given by some companies. I don't know how that is impacting our company's sub-x. So these two scenarios are how things are getting impacted for the sub-x.

So on Middle East, see, the risk is actually, so obviously, you know, 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 offshored 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 exposure and the work continues. We are doing it offshore instead of onshore right now. So we are also going back. So, we are adopting some of the protocols, 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 renewals. On winning the new businesses where we might struggle a little bit because it depends on how fast the customers will move with, you know, allocating money to newer projects. So that's where a little bit of uncertainty comes for us, as 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 bigger thing than it is right now. But currently, as we stand, we are able to control this quite a bit on the Middle East exposure. On AI, I actually think of AI, you know, open AI as a tailwind, actually, for our business. So 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, and then 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 telco. So we are the system of records, and we are strengthening that. And we deal a lot more with 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 think of it as disruption. If anything, I think it's giving us newer tools to actually go out in the market and build the intelligence, which we were already sort of, you know, fitting on. So 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, a boom, honestly.

Oh, that's great. And my last question is about as Q2 and Q3 of last financial year, we are seeing a lot of orders, one, even the value of the orders are 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 – now, how are we seeing, like, the demand for the services offered by sub-ex in other markets which are not directly impacted by this geopolitical? So are we seeing that the traction is better and the things are moving forward and things may get closed in Q1 and Q2, more things may get closed in Q1 and Q2?

Yes. See, the videos that you saw in Tuesday, so what happens is that... There are two types of, you know, businesses that we do, right, or the deals that we win. Some are, we call them as, you know, the blockbuster deals. So some of the deals that you saw last year, for instance, you know, the one over 6 million of those, those are blockbuster deals for us. They don't happen. That's that they don't have them 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 meal 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 you have to speak 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 OIN. And when I say, oh, 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, you know, 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's just that in Middle East, like you said, the Ds are won, but sometimes what happens is the I is not dotted and the Ds 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.

That's great, and I'll come back in the queue. Thank you very much and all the rest.

Thank you. Thank you, sir. Participants are kindly request to ask two questions in the initial round, and may join the queue for more questions. And the next question comes from Abhishek Kali, an individual investor. Please go ahead.

Hey, am I audible?

Yes, you are, Abhishek.

Hi.

Anisha, what are our margins for the three service verticals?

You mean the RAFM or? No. Oh, you mean the license and the.

Yeah, yeah, yeah. We have categorized our revenue by three segments, right? Oh, yes. License and certification and. Yep, yep, yep. What are our margins there?

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 margins for license. Implementation margins vary from project to project depending on, you know, 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 margin. So that's typically the margin profile.

Right, but then, Nishani, if I were to compare apples to apples, from what you call as the margins, right, they are not translating into EBITDA for me, I mean. If I take the weighted average of what, uh, how we have, uh, categorized our revenues, right?

But, uh, 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 want 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 COG 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 built cost. It could be our GTM cost, you know, all our sales, marketing cost. 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 two of the line items, you know, that are kind of, you know, where you build the market and take it to market. So those lines I can touch, they think, below this draw section. So that's the cost structure.

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?

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, P&L. So, and we are hitting that cost, right? Cost efficiency. When I say AISPLC, 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 these costs. So, it's 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 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.

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, for example.

For example, you mean the new products like Rodzap and all that versus all of that?

Yes, exactly. And our legacy products that we have been working with the clients.

So, legacy products, you can imagine all the legacy products, the ones that you see in MS and ANC, 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 wall. So, I am a little reluctant to learn.

Ballpark number, take on.

Obviously, much better, obviously, much better, Abhishek, because we have built it, you know, with a lot lower cost, right? Thank you so much.

Perfect. That makes me happy. Another question, if I may continue. Consumulative and stretch targets, the question that you don't like to answer mostly. Stretch targets for 26-27, forward-looking statement.

Rahul is staring at me. Who?

Rahul.

Rahul, the company said that he's staring at me. Yeah, I know. Curiously shaking his head that no forward-looking guidance.

No, I mean, you rephrase it in whichever way, but we would like to hear a lot more.

We are entering the year with very strong backlog. We are entering the year on the front porch, on the back of a lot of winds 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 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 benchmarks, we should beat everything that we have done. So, you know, we are going in very bullish. Okay, I have three more questions. Again, I would say trust the process, right? 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.

Okay. I have three more questions. May I squeeze those in, or do I have to come back in the queue?

Maybe you can. I think your turn will come very quickly, so you can come back in the queue.

Thank you, sir. The next question comes from Ajay Doshi, an individual investor.

Please go ahead.

Mr. Rajay, please go ahead with your question, sir.

I think he has a problem that is lying with me. Yes, ma'am. There is no response. Dear participants, if you have any questions, please press star and 1 on your telephone keypad.

The next question comes from Mehul from 40 Cents.

Please go ahead.

Hello, ma'am. Thank you for the opportunity. I'm new to this company. Yeah. I have two questions. One is, you know, what is, I know that we are into the software development.

Mehu, we are not able to hear you clearly, actually. Your voice is waking. I'm not able to hear you very clearly.

Is it better now?

Hello? Is it better?

Yeah, I think so.

Hello, is it better now?

I think so.

Hello?

Yeah, hello, I think so.

Yeah, am I audible now?

Yes, you are audible.

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 our split between product and service revenue?

Okay.

That is my first question. I have another question. Yeah. Yeah. Go ahead, please.

So, products, we, you know, mainly have three or four products. So, one is revenue assurance. Then we go forward management solutions for telcos. So, you're right, we typically, you know, only serve telcos. We do, so, revenue assurance is basically protecting revenues for telcos. Fraud management is helping them detect and, you know, fight fraud. That is why 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, you know, billing settlements for telcos. 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 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, phishing, smishing. So a lot of fraud types are now digitally evolving because the attack vectors are increased with the number of devices that we use this day. 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 product. So we service only our products. We are not a general SI, system integrators. That goes and services any product. We do services only around our products. I hope that answers your question.

Yeah, that answers. Thank you, sir. Ma'am, follow-up question is that you mentioned that mainly, you know, you are providing fraud detection solution. 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 products fit? 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, maybe I've given a wrong scenario, but there may be some scenarios where your solutions work. So, I just want to understand.

So, fraud is an ever-evolving landscape, right? I mean, one is, I will kind of, you know, answer 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, sales swap, Vangini 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. 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 survive some of these jobs. Now, will all telcos use the same solution? No, because depending on what a telco's 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 product, there will be no fraud in that network. Fraud is evolving, actually, very, very fast. Fraud is a very fast evolving field, right from deepfakes to account takeovers. It's actually moving at a very fast year. So, this is something that we have to be concentrating on top of.

Right. Ma'am, how much of your, you know, how much does your revenue come from top 10 customers?

I think about 60% comes from our, you know, I would say the top tier customers. That's generally just for us.

60% is it?

Yeah.

Okay. And are your, is it possible to know your key clients, your key customers?

I think we already disclosed it in our investor presentation, actually. So, our investor presentation has the logos that we are working with.

Okay, I'll look into it. And last question, ma'am, because, you know, mainly, whatever little I did check, I just checked Sub-X 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? 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 shareholder.

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 a...

No, no, that's correct. So the board has taken a process of this ask that has come up repeatedly, actually. So management does have 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 ESOP.

Through ESOP.

ESOP. Thank you, Sam. The next question comes from Abhishek Kale, an individual investor. Please go ahead.

Hi. Hey, Nisha. Yeah. I mean, Steve, what's the progress in onboarding on H&A investors and MFs?

You did one growth for a grand capital.

Okay. I'll come back again.

Your wife is breaking a little bit.

Okay. Is it better now?

Yes. Yeah.

Okay. So, what's our progress in onboarding H&I investors and MFs? We did one Arihant Capital presentation, but after that, have we received any kind of a response from any H&Is or?

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 a scrap 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. So we are going to meet a lot of people.

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 six 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?

No, I think that might be challenging only because contractually we are bound by some, you know, confidentiality issues with the customers. So, because every time you need a disclosure, 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 you 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 downloaded versus backloaded. So, some of this falls into that competitive sphere.

I mean, without preaching 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 a 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 two quarters back, you had hinted that we may have to look at the goodwill on our books, about 190 crores plus a month. So what's happening on?

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 quota, 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 answer, actually, any of that. So, that has also given us, 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 address it right now. So, I think in that sense, it's been a good outcome for us.

Perfect. Hey, one last question. It's about our board. Thank you. Is the re-work 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, 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 once we came in, the first thing that they asked us for was for tech details. So they said that they wanted to do a tech-team dive, and they had to organize two sessions just taking them through our products and 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, how do we take our products to market better. So they 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're very switched on. And we just went through our AOPN budgeting cycle for Q4, you know, for FI27. 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 re-presented to them. So it's been a lot of push. It's been a lot of good feedback. And I think they are also holding us accountable. But I would say 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 us. So it's a very engaged point.

Wonderful. Wonderful. One last question. With the recent announcements which PM made, wherein he has asked us, has 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?

Actually, honestly, we already are working in a hybrid mode. So Subets never went back to five days a week in office. So, we are, you know, yeah, 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. A 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 we 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.

Wonderful. Thanks. That is all from my side and my best wishes to for continued success. Thank you.

Thank you. Thank you, sir. The next question comes from Mahesh Kumar, an individual investor. Please go ahead.

Yeah, good morning, Nisha. First question is, this quarter we announced one deal for a fraud gap. Now, with this deal, how many are paid customers we have for FraudZep? 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 LLM?

Sorry, I didn't get second question, Mahesh.

See, a few quarters back, I think three or four quarters back, Subex has made an announcement that they have launched a product which is made of team of LLN for fraud detection.

Are you referring to Fraudzap?

Because that's the one we launched actually. Fraudzap is a different one. There was one announcement also regarding team of LLM.

Team of LLM. Oh, yeah, yeah. I got it. Okay.

So you had some announcement and then some POCs were going on for that. So for that particular product or solution, do you have any paid customer now?

So on ProdZap, see, we kind of built the product, we did TOC, 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. So it's one customer to us, but at the back, I mean, the contract actually has three telcos participating in it. So, if you think about it, the product is actually embedded in three cases. So, that is how the, you know, so it has.

Last quarter, also, you had announcement of a paid customer for a product.

And this quarter also is the announcement. 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 telcos. So, we had onboarded a telco. Now, we have, for instance, three telcos. So, the telcos are onboarding on to the product. So, every time a new telco onboards on the product, it becomes a new customer for us. So, currently, from that perspective, we have three customers.

And for team of LLM?

So, 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 LLM is the hardware challenge because it requires some GPUs. 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 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 is even 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 spike challenge. You know, we are challenged from that aspect.

And what will be the impact of Iran war on our business? Because we are only focused on Gulf region. 31% of the revenue is coming from that region.

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. America, 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 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 both of the resources, we have actually moved them out of Midlase back to India. And we are now delivering from Brando most of it. In terms of contract renewals, we don't see a major risk unless this 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.

Okay, I will join back with you after.

Thank you, Mahesh. Thank you, sir. The next question comes from Jitendra Bhattaria, an individual investor. Please go ahead.

Good morning.

Good morning, Jitendra.

Yeah, so I would like to ask you about the, we have closed that sectorial business. Now, there were sudden 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 were closed? And whether those receivables which we are trying to...

One is closed. One is closed.

The other one...

And, yeah, this one.

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.

So on Spectreo, so there were two major contracts. One is Stokes. In fact, they are, you know, kind of... It's almost contracts, the final contracts and liabilities we are closing, actually. So I would, you know, from my perspective, consider it closed, almost. The 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 we can do some recovery there or arbitrate with the end customer. So those receivables will take some time because, you know, we are going down the losses path on that.

Okay, so this is the one which you are talking about, which we have already written off, that receivables or the contract?

That is the one. No, no, no, the one that we have already provided for. 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 book. In fact, if anything, if we are able to, you know, settle this and it actually... If you are able to recover money, and, you know, I'm hoping that you 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, you know, book. So that's how we will offset the provisions.

And my next question is regarding the revenue. We find the revenue stuck around 70, 72 quarters from, you know, so when could we expect this revenues to blow?

I think in the back of some contracts that we won last year in good OI, as our implementation cycles 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 update should start at the back of it.

So your vision that our target of 100 crores per quarter then could be expected?

Inshallah.

That is a point, you know, where the glory of Suviks will lie.

No, no, absolutely. 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. No, absolutely. I think this is the year we go for it.

Are you looking for any acquisitions in our clinic, or how do you want to achieve the amount of cash which we have now? At least we can take some sort of a risk for our products.

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-month 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 pack-ins this year. So, that is absolutely 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.

So are we doing anything with on-grid investment, planning to increase or dilute or divest? What are the valuations?

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 P&L and balance sheet. So, it's actually everything 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.

No, that's absolutely correct. So, the company is doing well. Are we planning to add some more investments into that or are we just holding on put whatever you need?

No, actually, I would rather lean this back into our portfolio. So, you know, I think 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, at appropriate time, we will be digesting on grade.

Oh, 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 invest in our business. So let's just grow 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.

So, our revenues are mostly in foreign currency. So, are we being benefited out of this rupee depreciation? How? Because our expense is mostly India waste. How does it help?

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 currencies. 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, 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 currency. Which we don't want, because obviously, you know, the exposure for us is high. If the other currency is also equally, you know, fluctuating, then I cannot take that currency exposure. So the sticky point becomes often for us that do they have the USD to give us or not? Can they 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.

That's great.

The next question comes from Ashish Koti, an individual investor.

Please go ahead.

Good morning, ma'am. Thanks for the…

Good morning.

Hello. Can you hear me, ma'am?

Yes, I can hear you, Ashish.

Yes. Ma'am, I have a question. Basically, with regards to our focus majorly on the fraud management… In telecom, with more and more consultation happening, and with Starlink and where competition would get, you know, more severe for smaller players, how exactly telecom would be enough for us?

So, see, we are actually, so obviously Calco is our bread and butter.

So, we are deeply embedded. We have, I would say that, you know, we have around 125, 130 customers, active customers. We have very low churn. I have 80% of all T1 customers. So there is a lot of, so that's why 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 only a question on Starlink, even our customers are actually signing up with the likes of Starlink. 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 have asked us 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 fitments. So, you are right. I mean, you know, telco is not the only thing that we will have. So, we are also hoping to cautiously expand into something else.

Could you be able to throw that light, 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?

So, data centers are definitely a good play. That's because data centers not just need fraud management. Actually, I would think revenue assurance is a bigger play in data centers, honestly. 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 TELCO's, SUVEX grew last time. It grew on the back of TELCO's expanding massively, and we now see the same movements happening around data centers. So it's building a new infrastructure altogether. And I think in that sense, it becomes a very strong, you know, consideration for us. In terms of electricity, I know that, personally, we are a little bit reluctant to go into utilities, your 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 products can possibly work in those areas, but utilities are something that we actively stay away from water and electricity, etc.

And ma'am, all our revenues are totally 100% 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 purely in terms of sales. All our revenue is in terms of subscription model or is it product sale also still?

No, we do sell and we do the license, right? So we sell our products, 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, goal eyes, 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 minus service. So support contracts taken after that. So that's the subscription piece of it. So there are three different pieces to how the revenue moves for a customer.

So, I thank you for that, but then if revenue mix can be broken down into this different hedge, then, you know, it gives...

It already is. It is invested, 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 will find MS, and you will find AMC. So, MS-AMC is the subscription, if you want to think of it, you know, as subscription, MS-AMC is the subscription bit. The license implementation is the product part of it, so if that helps me.

Okay, ma'am. I'll come back in the room for any more questions. Yeah, thank you.

Thank you, Ashish. Thank you, sir. The next question comes from Mahesh Kumar, an individual investor. Please go ahead.

Yeah, Anisha, 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 sheep out of strong? That is the first question. And second question, if the ship 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?

So ship out of the storm, I think that, you know, every time you 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 on, you know, when I was giving the initial opening remarks. I truly think that ship is out of the storm. In that sense, the first part of transformation, I think we have delivered. So now our focus has to be on growth, and we have a 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 world. So, second part of your question is on, I think it's asked about data centers. So, data centers are something that we have... No, growth engines.

What are the growth engines?

Growth engines are kind of... 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 techcos. So, I think, like I was saying, that there are horizontal expansions with JVC done by Starlink and all that. So, this gives us a horizontal expansion. There is a stamp there. Then there is a new thing called agentic in-house and MST placement, right? So, wherever they have MSTs, all telcos have a lot of, you know, managed services teams. 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 stamp. The third is, you know, the new age leakage records, right? So, FraudZap and all that control those new-age leakage vectors like social engineering, A2P, 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, MDNO, IoT assurance. You know, telco fintech, data centers, 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 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 answer our business off. And all of this is quite fast-growing, right? So this is, none of this is a global market anymore.

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?

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, right, 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 telephones 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 I cannot report my revenues directly to you unless an auditor puts a seal 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 30 years in it. Right. We have seen patterns across 30 years, across telcos. No individual telcos can beat us when it comes to, you know, the I know. For patents across 100 plus telcos. Can any one telco team come and beat that, you know, they cannot. And that's exactly the reason why people continue to buy it. And I think these are the kind of skill sets. No, I'm coming to the data center question as well, because that is the kind of skill set that has suits 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 win this game. So, I mean, that's at least that 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 time. You need someone who's watching it across telcos, across data centers, and, you know, can bring those patterns into the product 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 agencies that we are considering strongly. For instance, you know, because we can solve fraud problems, people are starting to use us 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, I mean, that's the bet, actually. Data centers, again, you know, 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, you know, 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.

But do you still want to go back into IoT Assurance again? Because we have existed that business recently.

We actually never did IoT Assurance. Sectrio 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 telcos. So, IoT Assurance is one of the assurance businesses for our existing RA portfolio, you know, portfolio, actually. It's not a different product line.

I have a last question. See, Subesh is very proud of its domain knowledge, the data it is having, the patterns it has learned over 30 years' time. So, if that is the case, I have a fundamental question. Why we are not building a mythos type of model ourselves?

Oh, that's a... You have to give me...

You guys have to believe in us more. I want anthropic level standards. 100 million is what we need to build my thoughts on. So that's what I'm building my thoughts on.

No, no. See, that cost is in the US. India cost will be much lesser than that. See, Teg Mahindra MD told, I will build that chat GPJ type of thing in $1 million.

See, that is a, okay.

So, Mahesh, I wish we could actually, because that's what excites us also. So, this is Ashusha here. But what we are doing with our domain knowledge, I mean, I won't take the Mythos example, but I will take the Clawed skills and plugins. I'm sure you are familiar with that. So, in 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 skill. I mean, there was an earlier question also about LLMs. LLMs, the cloud or open AI can build, but the proprietary skills 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, we build the model, I mean, we think of an agent as a product, because it's positioned as an independent product stack, for which we sell, and we kind of get again license revenues, like was already discussed.

See, because what is happening, nobody thinks Subex is an 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 Subex as an AI-first company. So, I want to bring that impression by such development that it is an AI company.

And it's a fair point. It's a fair point. And I think if I will take this as a feedback, I think we have a lot more work to do on messaging then. 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 messaging has to be very complicated.

Thank you. The basic technology development. Now, if you see these entropic and all those, they are building the technology. Building the model is the technology. What Indian companies are doing, using that model, we are building the services and solutions. So, if Ruchir Sharma, who is an investor, he told India has lost the AI bus. If you see his interview, every year he gives this, what are the trends we are likely to see in 2026. He told AI bus India has missed because Indians are not innovators. They are good at followers.

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 markets have 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 a fundamental model, 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 think 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 massive scale. 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, the forefront of it will get to win it. So, I have a slightly different perspective from Richard on this.

No, see, what happened? You were saying the hardware GPU is an issue for a team of LL. Okay, so the out-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.

Why can't we use what?

Neuromorphic processor.

Neuromorphic processor. See, we are actually looking at, in fact, boxing it into pretty much a laptop size right now, our agent, so that, you know, we can just take our laptop, walk into a customer side, 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 where we can also buy GPUs, right? So, I'm going to come up, you know, around the problem.

We will be challenged by the neuromorphic because neuromorphic is basically AI at age.

So, we are actually working with CPU. I will look into what you are 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 CPUs? Can we do it literally on a laptop?

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.

So, why is we actually kind of do both, but I think to, you know, take it into market today, with the infrastructure that is available with telcos, obviously, they do not have this kind of computing, because the way our...

But you are trying to put in a box, na? You are trying to put in your own box.

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 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 CQ 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 look at it.

Okay, thank you.

Thanks, mate.

Thank you, Sam. That could be the last question for the day. Now I hand out the floor to Ms. Nishadet for closing comments.

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. 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'll 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 in the investor form. So thank you, and we'll be in touch. Thank you.

Thank you, ma'am. Ladies and gentlemen, this concludes your conference for today. Thank you for your participation and for using Doos Sabas conference call service. You may disconnect your lines now. Thank you and have a pleasant day.