Ksolves India Limited (KSOLVES.BO) Q2 FY2026 Earnings Call Transcript & Summary

Ladies and gentlemen, on behalf of Kaptify Consulting Investor Relations team, I welcome you all to the Q2 and H1 FY '26 Post Earnings Conference Call of Ksolves India Limited. Today on the call from the management, we have with us Mr. Ratan Srivastava, Chairman and Managing Director; Mr. Manish Gurnani, Chief Technology Officer; Mr. Umang Soni, Chief Financial Officer; and CA. Darpan Audichya, Head Business Transformation And Consulting. As a disclaimer, I would like to inform all of you that this call may contain forward-looking statements, which may involve risks and uncertainties. Also, a reminder that this call is being recorded. I would now request the management to detail us about the business and performance highlights for the period ended September 2025, post which we will open the floor for Q&A. Over to the management team.

Thank you, Vinay. Good evening, everyone, and welcome to the Ksolves Q2 and H1 FY '26 earnings call. Let me walk you through our financial performance for the quarter ended September 30, 2025. So at a high level, Q2 has been a strong quarter for us. Revenue from operations for the quarter grew 5.3% sequentially to INR 39.67 crores, which is our highest ever quarterly revenue, and it grew 13.9% year-on-year -- on a year-on-year basis. Our operating profit margin for the quarter was 30.4% with a PAT margin of 21.2%, reflecting our strong operational execution. This performance was supported by high utilization, improved billing rates and prudent cost management, including lower event marketing-related expenses as compared to Q1, all this being achieved while maintaining the same headcount, which demonstrates our scalable operations. EPS for Q2 FY '26 rose to INR 3.55 per share as compared to INR 2.71 per share in Q1 FY '26, which highlights our sustained earnings momentum. Strong cash generation continues to be a key highlight I would like to focus your attention on. The cash generation remains strong as our balance sheet remains healthy and continues to strengthen with the cash and cash equivalents of INR 17.65 crores, and Ksolves continues to remain net debt free. Further, we remain committed to returning most of our free cash flow to shareholders. The Board has declared the second interim dividend of INR 5 per share. That brings our total dividend for FY '26 at INR 6 per share. We are also happy to share that Ksolves India Limited has been honored with Odoo Best Partner India 2025. The company received this prestigious award at Odoo awards ceremony during the flagship event, Odoo Experience 2025 in Brussels, Belgium, honoring its excellence in ERP implementation and outstanding client service. Next. So this reflects our continued sequential growth in both revenue and profitability. Next. On the client front, we continue to deepen relationships and expand portfolio size through cross-selling and made meaningful additions to our client portfolio during the quarter. Our top 10 clients contributed 57% of our revenue in H1 FY '26 and around 78% of our revenue comes from overseas customers. We also maintained a diverse industry mix in our revenue streams with telecom remains our largest segment. We continue to serve broad spectrum of industries, including telecom, services, technology, BFSI, edutech, retail, health care and manufacturing. Next. Okay. So for the first time, we are reporting the performance of IT services and IT products separately. This initiative is a part of our strategic focus to provide greater transparency to understand the distinct economics, growth drivers and underlying factors affecting the margin performance in each vertical. So by representing the segments individually, we aim to provide a clearer view of how our investment in products and the execution in services contribute to overall business performance. Our Services segment primarily includes IT consulting, project delivery and client implementation, where revenue is linked to utilization and project execution. The product segment, on the other hand, encompasses on software development products and recurring product-related revenues in Odoo, Big Data, Salesforce and AI with higher upfront investment but a scalable growth potential. As you can see in Q2, IT services delivered a revenue of INR 38.64 crores with a contribution margin of 37%, reflecting stable execution and strong operational discipline. The IT Products segment recorded revenue of INR 1.03 crores. While still early in its growth phase, this segment is strategically important for scaling our product portfolio. For H1 FY '26, the pattern is similar. The lower contribution from the product segment has impacted our overall margins. Again, we are putting this segment separately because they have distinct cost structures and growth drivers. In summary, services deliver predictable recurring revenue per project, while products involve upfront development and marketing investment, but provide long-term scalability. So going forward, we will continue to invest selectively in product segment to capture scalable opportunities while maintaining operational discipline in services. With this, we look forward to sustaining the momentum while continuing to build an innovation-driven enterprise and remain confident in Ksolves' long-term growth trajectory, supported by our scalable business model. So thank you all for joining. And now I will hand over to Mr. Darpan.

Thank you, Umang. I'll take this opportunity to share a very good news with all of you. Like what Umang mentioned, we were actually recognized and awarded the best ERP implementation partner, Odoo in India for 2025. That's a good achievement for Ksolves with each quarter, we are actually building up, we are growing up, and we are showcasing our potential, not at the India level, but at the world level this time. Our Odoo Head, Mr. Om and our CEO and Founder, Mr. Ratan was there to witness this specific event. And we want to share this specific thoughts with all of you. This is not the only team's effort. Your own support is also very helpful in motivating us for all these initiatives and recognitions. So thanks to you. I'll move ahead with this thought. Why this specific event is very crucial and strategic for Ksolves. At the -- this is the first time where we extended our marketing thought and we initiated one more step ahead to create billboards and to display Ksolves on the billboards at that event where Odoo was actually, this Odoo experience was actually happening. This is actually very much connected with our long-term marketing initiatives and strategy where we are now focusing on how we can enhance the visibility of what we are doing. So that is actually another step around the strategic initiatives we are taking. I'm moving to the next step. I wanted to showcase and share one thought. Ksolves as a whole organization -- as an organization is growing ahead. You all know how we are growing the numbers, the facts all are shared. But within Ksolves also, relevant business units are growing. Odoo itself is an example of it. In FY '22, '23, we were having INR 10 crore revenue from this specific stream, which is growing on 100x rate or supposedly double rate. In FY '23, '24, we were having INR 20 crores plus. And in FY '24, '25, we were able to showcase or demonstrate INR 33-plus crore revenue from Odoo itself. Like any business unit, this is also growing in a manner, which is actually helpful for the overall growth of Ksolves. But it is actually connected with the thought that it itself has a mini organization set up now. The delegacy, the connect from the Odoo Head or from the specific team is actually helping us to showcase or enhance our visibility in all these industry areas. We are able to connect with all these sectors, which are mentioned here through this ERP provision. And then it can be further enhanced to other business units also of Ksolves like supposedly Salesforce, AI/ML, Big Data. So Odoo as a business unit is actually helping Ksolves in even extending the services to other industries and which is very strategically connected to our thought that we, as an organization of Ksolves are actually one-stop solution for all the digital initiatives where any client is trying to have. So our practice -- Odoo practice is actually having all these numbers, which are mentioned, 120-plus of developers, 50-plus of client testimonials and everything. So I just wanted to showcase how business units are also growing within Ksolves. I'll shift to the next stream. Now this is not only helping the obviously, organizational numbers were also enhancing and passing on the same to our shareholders. We discussed this thing earlier also. The initial investment of 120,000 is now actually at the value of 597,600. The initial value of 1,200 shares is now at 19,200 shares, which is 58x of the same. So with all bonus and splits, we are at this stage what I'm presenting on the screen with a strong IRR of 125%. And it is not only the growth on the valuation, even the dividend is actually amounting to INR 928,000 which actually demonstrates the factor how we are sharing the value with our shareholders. Our focus remains same. We are not modifying the focus areas. We are partnering with SMEs for mutual and concurrent growth. This is helping us a lot when the organizational business is growing and extending us also in their own journey. We are starting small with large enterprises, like we are penetrating in their own organizations. But then based on our skills, based on our capabilities, we are scaling indefinitely. And the third level, we are actually executing high-impact projects with a steady pursuit. I'll give you an example of this. But then this is one such area where we are focusing more now because these high-impact projects will be actually taken via detailed deliberations, journey of this would be hard, but then the result would be effective and would connect us to the next specific stories because they wouldn't be able -- these stories will be able to showcase to our next clients, the prospective clients. So these would be good credentials for us. This is the example which I was taking. A leading private sector bank in South America was connected with us for a Salesforce solution. And this actually happened after multiple iterations or multiple rounds of discussion, even a round of discussion -- face-to-face round of discussion happening in South America. So we are diligently following. We are diligently connecting with the clients to showcase our capabilities and skills and to grab all the opportunities which are coming ahead for us. strategic collaboration on the sector of Big Data was also done in the previous -- this specific quarter, which we are discussing. We actually initiated cybersecurity connects also or supposedly cybersecurity sector also, and we are actually showcasing or sharing our skills around DevOps and Big Data with them. and we calibrated with multiple nonprofit organizations and NGO in Australia, showcasing our -- supporting them in Salesforce development and consulting. I'm just showcasing this slide with a factor that it is not only one specific tech we are talking about. Salesforce, big data, develop sales force, all these areas who do all these areas are actually helping Ksolves to go diversified as well as together in the direction of growth. Apart from this, the showcasing of skills and capabilities are at the global level. We attended Big Data London event, highlighting our DFM excellence. We attended Community Code event at Apache ecosystem and showcased our DFM project. And the last 2 in Indian Odoo experience as well as Odoo Community days. These 2 were the events for Odoo. One was in Brussels, Belgium and one was in Gandhinagar, very hyped, very connected. All the industry connects relating to Odoo were there, and we showcased our presence. And like I mentioned, in the Brussels expo of Belgium, we were recognized as Odoo Best Partner of India. Mentioning to -- or adding to the thought, we are moving towards the mature business model. The retention, the profit, the sustainability, everything is on the positive side. We are moving towards the full-fledged business model wherein we are picking up turnkey projects, focusing on product-centric growth, taking responses from the market around the DFM or supposedly on the products based on the feedback, updating the same. Obviously, some projects or some opportunities, pursuits are taking time because the numbers are high, supposedly, the decision-makers are at the high level. But then the discussions are actually moving towards positive note. The year-on-year growth and numbers are actually on the positive side, which defines that yearly, we are growing towards a good direction. And then supposedly, if there is any variability in the short run, we -- based on the experience we are having, based on the skills we are having, we know that, okay, this would go towards a good, matured business thought, which would be visible in the next quarters and in the next years. So I think with this, I'll close down. And we -- Ratan, sir, anything you wanted to mention or we can take the questions.

Yes. Definitely. Thank you. Thank you. So thank you for, first of all, for joining this call. This is our 21st result after launching the IPO. Out of 21 -- 20 quarters, we have made quarter-on-quarter growth, and there was one dip and that dip was due to certain changes in the strategy, okay? Hopefully, we will give the same results and better than these results next quarter. I wanted to share a few thoughts with you. I'm not from the top college. I have not done engineering from the top college. I have done from the normal private engineer college from the UP. So what I wanted -- what I wanted to share with you that this is first generation business for me, and after launching the IPO, 5 years, more than 5 years, this is 21st IPO. What I have observed that and what I have done, I have maintained 3 pointers. Growth means sales. Second, profit margin. And third, retention. Retention means employees as well as the customer, okay. So if you see out of 21st -- 21 results, okay, I have given positive results, most of the time, 20 times, maintained a good profit margin most of the times, very rare, you can see that less than the expectation. And at the same time, employee retentions and the customer retention, both I have maintained means I have very -- I have employees who are working with me since a long time, and I have customers who are working with me since long time and they are continuously growing, employees and customers. So I will try to maintain all these pointers in the future also. In this result, Umang has shown you result in 2 parts, one part for the service and one part for the product. However, we -- I assume that someone will ask this question that why it is or what is -- why we are spending the money in the product. These products are mainly in the either AI or big data. And we have made a huge investment in last 1 year for the Big Data product. And we have done almost 25 to 30 demos. And you will be surprised that out of these 25 to 30. 100% means the result was 100%. All customers or leads were very happy with this product. They said that this is a unique solution, unique idea. And definitely, it is a problem-solving solution, which everyone is facing with the big data. But due to the current world situation, most of the customers, they don't want to spend money on the new product and they don't want to change their strategy, okay? Everyone is watching. But I'm very hopeful that in near future, this product is going to give us big success, and it will contribute a huge percentage in the services as well. So thank you, everyone, and we can open the question-and-answer round, and I will try to give my best.

[Operator Instructions] We will take the first question from Nishita Shanklesha.

So I just wanted to understand, you mentioned before that you will do a 20% revenue growth in FY '26. So is that achievable? Where are we with that?

Considering the current situation means the pipeline and the progress we have made, I think it is achievable.

Okay. Understood. And you also mentioned that the margins will normalize by Q4 FY '26. So at what range will they normalize? And what are the sustainable margins going forward you see in FY '27.

Okay. Okay. So see, first of all, I will explain that why margins were -- why margins went down, okay, because we have spent a lot of money attending the events and all. This quarter, all the events are done, means next quarter, we don't have any event, okay? And from the next year, we will go only 1 or 2, 3 events maximum. This year, we went approximately 10 events, okay? And few events were very costly. So these kind of expenses will not happen next year, but new expenses will -- you will see. It means, for example, definitely, we are not going to end these many events but we will start traveling frequently to meet customers and hot leads means me, Manish, Darpan and few other colleagues will keep traveling to meet customers and to meet hot leads, okay? So -- but again, this will not be -- these expenses will not be huge as we have done in last 3 quarters. And regarding your question on margin, I will be conservative as I said in the last 2 calls that 25% margin, I will always maintain. I will try to reach 30%, but I cannot give you the guarantee. We can see that some certain expenses and all, but 25% definitely is the line which I will maintain. So you will see the -- you may see better than this. You may see it better than this margin.

So you are seeing in FY '26 and FY '27, we will have a 25% margin.

Minimum.

But I see that in like past, we've done the margins of around 35% to 40%. So why the 25% margin?

So if you see the PPT, which Umang has shown you, okay, we have started investment in the product development, first thing. And in last few calls, I have explained that I have hired Salesforce Director and started traveling branding. So that is the reason that margins are down, but still it is better as compared to all other companies, I will say, most of the companies.

So it's safe as you assume that...

That time we were not doing expenses as right now we have those expenses. For example, we didn't have any program director. So expenses got increased. Now it is a standard. Now it is a standard and e-shop expenses. Now it is at that level where the company should be. Now we have a divisions, now we have people to manage and now we have people to help increase the business and sustain the business.

Okay. So margins will normalize at 25% is what you're saying?

It is normalized already, and it is better than as compared to all other companies. You can compare.

We'll take the next question from Darshil Jhaveri.

So the line of the participant that asked earlier question. I wanted to ask like in terms of our 20% revenue growth, if I have to see then in H2, we'll have to do roughly INR 90 crores of revenue. So do we have the visibility for that, sir?

At this moment, considering the current pipeline, yes, I can see. But things can get changed because so many things does mean -- so many things does not depend only on me. They depend -- things depend on other things also. Like U.S. situation or any other country situation. But considering the current pipeline, okay, I can see that I can achieve.

Okay. Fair enough, sir. And so I just wanted to know what portion of our revenue is recurring in nature for us right because that -- because as a services, we would have some element of recurring or how would we describe it at, sir?

Sure. So see, numbers, Umang can tell you.

85% is the recurring revenue that we are getting from our repeated clients. More than 85%.

So with 85% -- so we have a strong base like the numbers that have been delivered in Q2, we should add -- we can keep adding fully for that.

Perfect. So actually, as I said in my statement that we -- I'm a first generation businessman. Honestly speaking, 3, 4 quarters before, I didn't have idea about the next 2 quarters, next 3 quarters. Okay. But at this moment, I have a team, I have a person who is taking care of all the numbers, and I have numbers of next 2, 3 quarters also, that from where I will start the next quarter and from where I will start that next to next quarter.

Okay. That's really great to know. And with regards to our newer vertical of IT products, I wanted to understand, like I think the PPT we mentioned about, I think in H1, you spent around INR 3.7 crores, right? That's the investment, I think, so by the business vertical contribution that we had. So what kind of further investment that we can put on this because that would kind of dampen our margin. I know it will give us rewards later on when the products start peaking. So it's a 2-parter question, sir, how much investment more we are supposed to -- we are planning to invest? And when will this become breakeven where it can become self-sustaining and we can generate profits from it? Because you are saying clients are loving the product and -- so what is the point at which this can scale up? Is the cost contract in for it or cost big contract that can give us validation. So anything you would like to brief us about all the IT products opportunity?

Okay. So see, for H1, most of the time, we were building the product. Or we were busy in the marketing of the product, okay. So I do not say that 100% product is done, but most of the part is done. Okay. Now we are trying to connect with the customers, we are giving them demo and all, okay, so that we can sell it. Customers are in the pipeline, but they are afraid with the current situation all around the world. So they are not making any new investment. They are putting us on hold. So for the product development, I do not see that we are going -- we will have to make huge investment in the development. Only part is remaining that marketing, which we will continue. But again, this kind of investment, as I said that 10 events we have attended, okay. And I think approximately INR 5 crores to INR 6 crores or more than this, we have spent. These kind of expenses you will not see in future, okay. Only organic marketing we will do or we will travel to meet customers. So expenses will drastically reduce.

Okay. Fair. I believe, sir, as we develop a new product, we should spend on marketing as we can enter. But my whole question is revolving around what is the traction that we are getting with the client like what areas are used that AI and everything. So is it specifically targeted to an industry -- so is the scaredness about, there will be so much development in AI and big data that the product that's taken will become irrelevant or not irrelevant, but a bit out of date. Or how would you describe it like so if we can -- any client is very close to giving us a contract or a trial run of a bigger scale. Could you just help us with your strategy? Like how will we differentiate ourselves? I'm sure a lot of people are coming with AI. So we just wanted to know a bit more about that. So what is the potential that you see in this IT product segment. And maybe it doesn't need to be quarter-on-quarter, sir. Maybe FY '27, we will scale up. That is not a worry. We should be investing in new stuff for the growth of the company. So just wanted to get an idea when do you see it can be a quarter or a year down the line, that's also fine, sir, whatever you see.

First of all, AI is not hurting us. okay. We are also using AI. If you will see the number of employee count, we have not increased drastically, but revenue is continuously growing. So we are also using AI to optimize the quality of the code, performance of the product. So it is helping us. So we do not have any fear with the AI. Actually, if we could have AI years before, we could have done better than this. AI is -- AI cannot do alone without the data, without the JavaScript and all. So AI is not something that I will do everything, okay? I will always need the big data means data experts, the front-end experts and all, experts. I'm talking the experts, okay. But at the same time, the lower skill work will be done by the AI. And we have started doing this. We -- I have Manish also, okay, who is our CTO. I will pass this question to Manish. Have you heard this question?

Just to sort of understand this question correctly, you are looking at if, number one, AI is going to challenge us, right? Second is in terms of products, right...

Sorry to you, sir. I didn't mean AI is going to challenge us. I'm just asking so many AI-based products are coming in. So where does our product stand with the other AI products. Like what is the space that we are trying to get because even in AI, there are multiple applications. So that way, I was trying to -- what is the targeted area that we are trying to...

Whatever we have done through the DFM and [ KDS ], can AI do.

No, no, no. So let me first -- so 2 stages. First is the product itself, right? The product that we have built, right, that product, like Ratan already mentioned, was praised to buy everyone who was -- who was given the demo of that product, right? So that product itself is a niche domain. It's something that you will not see others building. So we have built it on a technology called NiFi and it's like an ETL tool. The second part is the -- the other part that we have built, right? That product also is into a big data domain. And both of these are growing domains, okay? Coming to the second part, right, the AI that we have used, the way that we have used AI in that is it is going to help the customers save their cost. So it's going to give them a good return on investment compared to what you would have been doing, let's say, from scratch otherwise, okay. The other products which are out in the market, right? They are not in the same domain. Some of them are -- the domain is very different, right? You will not find those products doing things that we are doing, right? Second is the way that they have used AI, right, to use in the right way to give you the right answer, you need to have expertise on the technology also. Okay? For example, if you talk about ETL, right, DFM, that product that we have built, right? We have been working with the technology for almost a decade. Others out -- who are out there, other products, right? They are not that much capable, right? You can even search on the net also, right? We will come on the top, okay? So we are counting on these 2 things. Number one, the product is into a domain which is relatively niche. Second, we have expertise onto that domain for almost a decade. So our expertise also counts in making the result of AI more, I would say, accurate. AI is all about accuracy. Anybody else can also use some AI and start building things, right? But will that solution be that accurate? That will depend on your experience and your expertise. So we are using that also to make sure that our product is, I would say, ahead of the curve. I hope that...

We'll take the next question from Ankur Agarwal.

Sir, I'm a little confused on the margin side. In this quarter, we have done over 30% margin. And you said a lot of event-related issues are behind us. So -- and second half also, you are expecting improved revenue side. So the operating leverage should also help. But on that front, you said minimum 25% margin. Why are you being conservative? Is there any -- some expense that is we are expecting in next, say, 12 to 18 months, which -- because of which you're saying minimum 25% and not minimum 30% is what I wanted to understand, sir.

It is always better than speak less and perform more, okay? So that's why I always like to be conservative when I am giving any numbers, okay? Now it is your analysis, it is your expertise on the data that what Ksolves will do, okay? Based on the past data, based on the past performance. I would request and I expect that because you guys are analysts, okay, you will tell that what this company will do. I'm telling -- I have given you results for the last 21 quarter continuously. I have always given the better -- good margin, good quarter-on-quarter growth, year-on-year growth. So you can guess that what will be the number. But I will be -- I will love to give -- to be conservative when I'm giving numbers, okay? I have given you indication that now the huge expenses you will not see from the next quarter, okay? It is done. But as I said, that considering the current world situation, okay, anything can be happened tonight. What announces will be on the Internet. I don't know. In the last few months, you also know that every day, you are getting new announces and it is affecting the market. So how I can give you the rigid number. It will not be good. So that's why I'm conservative. If everything is good, everything will be good. You will see the better number than this. I said, okay?

Got it, sir. Got it. And on the product side, can you comment when do we expect to breakeven? Or how should we think over the next, say, 12 months or so?

See, breakeven is very easy, means we have spent not more than INR 10 crores, not more than INR 10 crores, INR 10 crores is a very high number, okay? If everything will go well, we can achieve in 1 year or maybe 6 months. But problem is that the businesses are not ready to take any new investment. With one customer, I'm telling you, with one customer, if we can get 50% of the expenses, with one customer only, with one big customer, okay? But problem is that all these businesses are very cautious right now. But once things will be correct, you will see very good results. So that's why I'm very optimistic about this, but it is not something that I'm just talking that, okay, I have idea and as everyone said that my idea is great. So same thing I'm saying that, yes, my idea is great, okay? I have seen the demo results. I have appreciation from the people, customers and big names. I cannot take the names, big names, but they are very cautious right now. They don't want to change anything in their existing product model. However, they are not happy with the charges at all. But still, they are not ready to take any changes in the current strategy. We need to wait. Once things will be done, you will get a huge surprise on the product side. So that's why I have separated this considering the future strategy.

Got it, sir. Any time line you would like to comment? Or is it too early to ask on time line?

It is too early. See, these things are not in my control. I don't want to take names, okay, but people who are making announces every week, okay? And that is affecting the business, how I can control them.

Sure. Got it, sir. And last question would be general as in what is our dividend payout policy? Is there -- do we have any specific policy that this much percentage of profit we'll be distributing? Or how do we think on that front?

No, I don't think that at this moment, we have any policy. Only thing is that whenever we give the dividend, we always keep a few things in our mind that we should have enough pipeline of the business. We should have enough cash arrangement for the salaries and all, okay? So these things we keep. Definitely, we don't give all the money in the dividend.

Got it, sir. Just final confirmation. You said 20% growth for this year and like INR 90 crores type in second half. So this INR 90 crores we have visibility even if some things happen on the tariff side, Trump side, are we confident on that?

For this thing, I can say that I have the -- currently, I can see the pipeline, I can see the meetings with the customers, okay. So I'm very optimistic about that thing.

We'll take the next question from Pranay.

So I just have a question on -- a follow-up on the previous question on the product side. So just to get a clarity. So do we currently have any active client for the product? Or is it still a client?

We have 2 active clients. One is a multibillion dollar and one is $500 million revenue customer, okay? These 2 customers are already using. Right now, I'm in Dubai, okay, to attend GITEX event. And we have received multiple interest in the existing product from the banks, from the big institutions. So only thing is that these products are a very big products. This is not something that a $500, $1,000 product. This will start from $200,000, $100,000 okay, and it can go up to $500,000, one customer. So this is not a small deal. This will not be a small deal. So it will take 6 months to 9 months for the complete conversion, I mean sales cycle, okay? But once it will be started, then it will be continue in process every month or every quarter, we can keep adding. But I don't know that when this time will come. But as Manish said, that idea is unique, okay? Even competitors came to watch this demo, and we have given them demo because we felt proud to give them demo. So idea is unique, and it is not something that someone can build it in the next 3 months or 6 months. Best thing is that, see, whenever you develop any product, you should have a beta customer. If you have the beta customer, you can solve all the problem on the run time because anyone can develop the product if they have -- if that person has the funding. But problem is that without beta customer, you cannot build the right product. And this product, we have built with the beta customer. We built -- with their requirement with the rigorous testing and all, okay? And once -- it took 6 months for the complete testing, then we made it live, okay? So it is not something that just product is done. It is well tested on a very big environment. And then second customer directly bought it, okay, with 15 days or 1 month trial. That person -- that business bought it, and they're using it.

Great. Great to know. So just another follow-up on the product side, so are we -- is there any focus area -- focus geography for us, for this product like since -- given the ongoing geopolitical scenario, are we -- what is our strategy for the -- are we planning to diversify away from U.S. Or how are we planning for this product?

So as I said, there are 2 customers I have, one is from the U.S. and one is from the Europe. So U.S., Europe, I already -- we are covered. But right now, the traction we are getting, okay, that is from the UAE. So UAE, U.S. and Europe, all these countries have the same requirement. They are facing the same problem. They are spending a lot of money to handle that problem, which we have resolved.

Okay. Okay. One final question, sir. Is it -- this is on the Salesforce front. So I know this is still early, but since the hiring of the new director, it's been overall 4 months. So how is the scaling going on? Is it as expected? Or is it fruitful? Is there still a long way to go?

Okay. I will be very honest with you, okay? Initial 5, 6 months, the result was not expected as we were expecting. But now results are coming, okay? We can see the results. So in next 6 months, I can say that we will see the better result, okay? Initial 5, 6 months, that person took time, okay, to understand the case or to understand the culture, to build a relation with the leads. But now he's doing very well.

So sir, we have received one question from the chat. This question is from Anand. He's asking like for 35% revenue growth in FY '26 versus FY '25, we need a INR 90 crore revenue in H2. Given the uncertainty in IT budget spend, what would be lead indicators to define we are not on track to achieve INR 90 crores revenue in H2?

I think I have given 2, 3 times answer. Umang, can you answer this, this time?

Yes, sure. So see, to complete that guidance we have given for 20% revenue on a year-on-year basis, definitely around INR 87 crores approx of revenue needs to be generated in the next 2 quarters. And as Ratan sir has already communicated that we have that in pipeline and everything goes well, then definitely, we would be reaching that number along with the margins, good margins than what we have currently. So indicators could be mainly, we can say the client spending because if the client which...

Not that we have currently. Okay. But more than 25%, and it will be better number margin. Right now, we have 30%. So more than 30% you are saying.

Yes. So means what I'm saying is, which we have given like 25% minimum, we would maintain. But yes, the current margin, 30%, 25% to 30%, that would be the range we would like to keep minimum.

Yes.

I hope that answers your question.

Thank you. So I now pass over the call to Vinay sir. Vinay sir, go ahead.

Thank you for this. Ratanji, would you like to give any closing comments before we end this call?

I don't have any closing comment. I have already given my comments, okay? So -- but yes, thank you, everyone. Thank you, everyone, for trusting on Ksolves. We are working very hard, and we will try to do better than this in future. Thank you, everyone.

Sure. Thank you, sir. Thank you to all the participants for joining on the call, and thank you to the management team for giving us their time. This brings us to the end of today's conference call. You may all disconnect now. Thank you.

Thank you.