One Point One Solutions Limited (ONEPOINT) Earnings Call Transcript & Summary

Good evening, ladies and gentlemen. I'm Akash, moderator for the conference call. Welcome to 1Point1 Solutions Limited Q1 FY '27 Earnings Conference Call. [Operator Instructions] Please note this conference is being recorded. I would now like to hand over the floor to Mr. Shashank Ganesh from EY. Thank you, and over to you.

Thank you, Akash. Good evening to all the participants on the call. Good morning if you're logging in from the Western side. Before we proceed to the call, let me remind you that the discussion may contain known or unknown risks, which may affect the forward-looking statements, uncertainties, and other factors. Therefore, it must be viewed in conjunction with the business risks that could cause further results performance, or achievements that differ from what is expressed or implied. To take us through the results and answer your questions today, we have the senior management of 1Point1 Solutions, represented by Mr. Akash Karnik, Whole-Time Director & Chief Executive Officer, Global Business; Mr. Rajiv Desai, Co-Founder ResolX; and Mr. Sunil Kumar Jha, Chief Financial Officer. We will start the call with a brief overview of the past quarter followed by a Q&A session. [Operator Instructions] With that, I would like to hand over the call to Mr. Karnik. Over to you, Akash.

Thank you, Shashank. Good evening, everyone, and thank you for joining 1Point1 Solutions Q1 Financial '27 Earnings Call. In today's call, we will cover the company's performance for the quarter, the strategic transformation underway across the businesses, and how our investments in AI, global delivery, and domain capabilities are opening up significantly larger market opportunities for 1Point1 Solutions. 1Point1 began 17 years ago with a simple conviction. Every customer interaction is an opportunity to create value. From a single operations floor, we've grown into a dual-listed enterprise with a global footprint, deep domain expertise, and a portfolio serving 100 plus marquee brands across banking, insurance, healthcare, telecom, aviation, automotive, and other emerging industries. Today, we are moving beyond traditional outsourcing to build 1Point1 Solutions as a global AI-powered customer experience and enterprise operations company, bringing together human expertise, Agentic AI, domain depth and global delivery to engineer measurable outcomes. This evolution is at the heart of our strategy and defines the next phase of our growth. Over the years, we deliberately invested ahead of the curve in technology, domain capabilities, and global delivery. We recognize that AI will fundamentally reshape customer experience and enterprise operations, not just automating individual tasks, but by changing how work is designed, executed and measured. That journey led to creation of 1Point1 Technology Labs and subsequently the launch of ResolX, our Agentic AI platform built around Resolution-as-a-Service. ResolX marks an important shift in our value proposition from managing activity to taking accountability for resolution. The next phase of customer experience will not be defined by how many interactions a company handles. It will be defined by how effectively those interactions are converted into measurable resolutions and business outcomes. As highlighted in our investor presentation, our strategy is built on dual-engine growth. First, our global human service engine, significantly strengthened this quarter by the full integration of Netcom, which deepens our presence across the Americas, and expand our ability to service enterprise through global delivery, multiple capability, domain expertise, and multi-shore operations. It also creates larger platform from which we drive organic and introduce AI-led transformation across existing and new enterprise relationships. Second, our Agentic AI engine, powered by ResolX, is a differentiated enterprise AI platform, bringing Agentic AI orchestration and domain intelligence directly into enterprise workflows focused on high-value opportunities. Together, these engines create a powerful growth model, global delivery, and human expertise complemented by Agentic AI and intelligence orchestration. More importantly, they strengthen and accelerate each other, creating greater scale, capability, and value for our customers. As automation scales, we see the opportunity to progressively shift our revenue towards higher-margin AI, orchestration and outcome-linked models, while human expertise moves towards more complex, judgment led work. Our presence across multiple domains, geographies and delivery ecosystems gives us a strong foundation to build intelligent, scalable, outcome-focused enterprise operations. We believe the next era of customer experience will be defined not by isolated AI developments, but by reconnecting intelligence that unites AI, human expertise, domain depth and operational execution. ResolX is built precisely for this shift, embedding intelligence into real enterprise workflows and solve complex regulated business challenges. Technology can automate domain intelligence, enable better decisions, human expertise brings judgment and accountability. This combination lets us move beyond traditional capacity-led outsourcing towards measurable, outcome-focused enterprise operations. Our global delivery engine, domain depth and Agentic AI capabilities position us at the intersection of customer experience and enterprise operations. We are not preparing for the next phase of market. We are building to lead it. 1Point1 is aired for outcomes. On that note, I'll hand over to Mr. Rajiv Desai, Co-Founder of ResolX.

Thank you, Akash, and good evening to everyone who has joined the call. For 3 decades, India has thrived as the world's back office, powered by the scale and efficiency of BPM. Agentic AI is creating a fundamental shift in enterprise operations. Systems that can plan, decide and act are moving AI beyond assistance and towards execution, orchestration and resolution. We don't see this as a replacement of human expertise. We see it as an evolution from a cost and headcount-led model to an intelligence and outcome-led model. The sector will need deeper, more integrated roles that merge human judgment with machine efficiency. The future belongs to operating models where human contextual intelligence works alongside the speed, scale and precision of AI. That is the shift we are building with ResolX, moving enterprises beyond managing interactions towards intelligent, accountable resolutions at scale. ResolX differentiated through its Resolution-as-a-Service model, is designed to move AI beyond assistance to act, orchestrate and deliver measurable resolutions across enterprise workflows. Resolution-as-a-Service is an operating and commercial model that orchestrates AI agents, workflows, enterprise systems, functions, data and human expertise under one accountable partner to deliver a great customer or business outcomes, moving enterprises beyond software development to a strategic operating partnership focused on measurable results. ResolX is built around an outcome-accountable model. We do not charge clients simply for a software license or agent capacity, but we take ownership of the resolution architecture end to end. From the AI layer and data extraction to back-end integration and ultimately the business outcomes themselves. This is fundamentally different value proposition. Instead of investing in disconnected tools and managing multiple vendors with no accountability for the final outcome, client gets one partner that brings intelligence, integration and execution together accountable for the resolution itself. We're leading the shift from conversations to resolutions by creating AI that acts, orchestrates and resolves, not just answers. History shows that efficiency expands markets. Resolution is how we deliver them. Our integrated stack spans across voice, chat, email, social, IVR and video, with AI embedded across the entire journey, one partner for connected intelligence across every enterprise function. More importantly our global operating footprint gives ResolX an advantage that pure-play AI vendors cannot easily replicate, operational experience across languages, near-shore capability across the Americas, and regulated industry delivery on 4 continents. Each center serves not only as a delivery engine, but as a real-world environment to deploy, validate and scale intelligent solutions. The software-to-service gap remains one of the biggest challenges for CX leaders, and ResolX bridges that gap by combining AI, integration, operational accountability, creating value to clients while strengthening our own economics. Faster resolutions reduce agent hours per interaction, improves utilization and lowers the cost to serve, creating a dual advantage, higher value delivered to clients with stronger operating leverage for 1Point1. We're seeing encouraging early traction, 12 live deployments across seven enterprise clients spanning across insurance, aviation, banking, automotive and digital assets, including 2 of India's largest life insurers. Two Central American banks, one through the Netcom BCC acquisition, a leading Indian airline and a premium European automotive marquee. Most significantly, the nature of these engagements is changing. The market is looking beyond capacity towards AI-led measurable outcomes. 1Point1 brings global delivery, domain depth, human expertise, and enterprise accountability. ResolX brings Agentic AI, intelligent orchestration, and Resolution-as-a-Service. Together, they create a connected operating model designed to move enterprises from conversations to resolutions and deliver measurable outcomes. With that, I hand over to Mr. Sunil Kumar Jha, our Chief Financial Officer, to take you through the numbers. Over to you, Sunil.

Thank you, Rajiv, sir, and good evening, everyone. Let me take you through our financial performance for Q1 FY '27, a quarter that makes a steep change in the scale of company. As the first full reporting period to consolidate Netcom BCC, on a consolidated basis, revenue from operations from Q1 FY '27 was INR 158.3 crores, a growth of 64.6% quarter-on-quarter and 129% year-on-year. This growth was driven primarily by the first full quarter consolidation of Netcom, supported by growth in customer program volume across the base business. EBITDA stood at INR 39.4 crores, up 56.0% from INR 25.2 crores in Q4 FY '26 and 91.5% year-on-year, at an EBITDA margin of 24.9%. Profit for the period was INR 16.3 crores, up 58.7% from INR 10.3 crores in Q4 financial year '27 and 72.8% year-on-year basis. Basic earnings per share for the quarter was INR 0.62 compared with INR 0.36 in the corresponding quarter in last year. Let me address the margin directly. The consolidated EBITDA margin of 24.9% reflects the change in delivery mix from Netcom consolidation and finance cost of INR 8.1 crores for the quarter, up from INR 1.9 crore a year ago, primarily reflecting acquisition-related borrowing. On a standalone basis our core operation delivered revenue of INR 61.1 crore, up 11.6% year-on-year, at an EBITDA margin of 30.4% demonstrating the continued health of the base business on which the global platform is being built. Integrations [indiscernible] and the revenue mix is shifting toward AI orchestration and outcome-linked models. We expect margins to improve progressively over the coming year. Q1 continued the momentum we have built over the past several quarters. We remain confident in our ability to capture the significant market opportunity added by scaling ResolX, deepening existing customer relationships and expanding our customer base. Our growth strategy is deliberately balanced with resilient core revenue, the ramp-up of new customers and a diversified pipeline of opportunity across market and capabilities. With a healthy customer pipeline, growing enterprise demand, disciplined capital allocation and ResolX gaining traction in live in one, we believe 1Point1 is at beginning of significant multiyear growth opportunity. Our dual-engine, global delivery and Agentic AI given us a strong foundation for scale, while disciplined capital allocation and operational execution remain central to how we grow. Our focus remains clear sustainable, profitable growth with continued several investments in innovation, talent and scalable global capability, and translation of those investment into a stronger operating performance and long-term shareholder value. Thank you. We are now happy to take your questions.

[Operator Instructions] First question comes from the line of Mr. Yogesh Patil, an individual investor.

Congratulations on a good set of numbers. Sir, just want to continue on the current business, how do you see this year? And is there any major one-off in this quarter?

Thank you for your question. Could you come again? Your sound was a little feeble. Could you speak a little louder one more time, please?

Numbers are really very good. Any kind of one-off or any kind of project completed in this quarter? Or do you see this run rate will continue for full year also?

This is the first quarter where we've consolidated Netcom completely. So this is not kind of a one-off number. And we believe we should be able to try and double our revenues this year, and that's what we are currently embarked on. So we believe that we'll be able to get and we're fairly confident that we'll be able to get a good run rate this year and all our numbers should really be intact, and it's not a one-off number.

No, no, I'm saying in consolidation also -- it is a pure consolidation. There's nothing one-off in...

No. It is not a consolidated number.

Okay. And where do you see traction for, let's say, traction in terms of segment? We rightly highlighted insurance companies and banks. Can you throw some more light on continuity of this?

The continuity of the numbers itself is coming from a purely consolidation of numbers and our acquisition that happened last year. From a growth perspective, we are very staged at the right point where our Agentic AI solutions, along with our human-based systems will try and bring in far more results to us. So these numbers will not currently have any impact from a delivery perspective. So all seems to be in very stable and good numbers here. AI will continue to grow and start bringing in better margin numbers for us in the coming quarters.

And in terms of -- we're also using AI. So in last quarter, we started some benefit. But if tribute to usage of AI, what could be the roughly -- can we quantify what is the productivity gains because of the AI use and mix of the employees, manpower and AI?

I'll give you -- I'll try and answer this question in one of the examples. In one of the large airlines that are currently operating out of India, we've been successfully been able to deploy AI to seek benefit about 30% of the employee size and thereby bring in far more value-added services to them. So as our projects start growing up quarter-on-quarter, year-on-year, you will see the impact of AI on our revenues in the coming 12 to 18 months.

And sir, one hypothetical question over 3 to 5 years, how do you see yourself? And what are the geography and sectors will contribute to growth over 3 to 5 years?

We'll be growing on India and LatAm, while entire the Americas will be able to increase the revenue pure because of the dollar arbitrage and India will also continue to grow from an AI contribution perspective. But you will see a lot of business showing up a larger volume purely because of dollar arbitrage from Americas. From an industry perspective, while there is focus across industries, but you will see a lot of work coming through the banking industry and a little bit on insurance side, healthcare. These are some of the industries that are showing trajectory right now. We'll also see some more trajectory coming in travel and hospitality also.

The next question comes from the line of Tushar Sarda from [ Athena ] Investments.

Congratulations on good headline numbers. I was just going through your presentation, and I'm actually surprised that you've not given split between Netcom and your base business. Can you split that up, which would have been part of the presentation though.

Netcom right now in this quarter contributes roughly about 50% of the numbers that we see here.

That's on revenue and on EBITDA?

Around the same number.

So you have actual number. So [ 60-40 ]. So your business has not grown though -- base business has not grown. Is that what one should assume?

No, the base business has got its own growth.

So if I take 40% of INR 160 crores, which you have reported, it is INR 64 crores...

[indiscernible] the growth has been about 50%. The Netcom contribution is 50%, 50, not 40.

You said 60 just now, right?

No, no, I said 50. Maybe the voice does not translate well. I said 50% of our revenue contribution is from Netcom and likewise for EBITDA contributions.

Okay. Okay. And so Netcom, what are the margins?

Netcom is around the same kind of a number that we're currently looking at. So the margins are ranging between 24% to 25% margins there as well.

And you have now debt of INR 220 crores. So what is the plan with respect to the debt? Do you plan to bring it down, raise equity? Or will you pay off from the earnings? What is the idea?

I think our cash earnings in the coming quarters is only going to increase. The cash generation is fairly positive. So the debt servicing is going to become easier in the coming quarters.

And do you have more acquisition plans?

In the next about 3 years, we intend to try and acquire about another 2 companies that we are trying to look at. So those are on the radar. But this time, we are looking at companies which have Fortune 500 brands and that can really bring us to the larger spectrum of North Americas, and that's been the prime focus for us to look at acquisition. Also, our focus is saying that these companies where we can really leverage our AI to really try and make a differentiation, create an exit barrier and bring in far more value to these businesses.

And how much revenue is contributed by this Agentic AI in the current quarter?

We just launched our Agentic AI this year early in the year in May, and we've been able to successfully deploy close to about 6 to 7 projects across the 12 that we are currently doing in. So revenue is just catching up on the scheme of events, we should be able to see a good amount of revenue showing up in a horizon of about 12 to 18 months or probably even slightly more.

So these are what voice-based agents or these are chatbots?

Both. We've got voice and chatbots both. But if you want specific more questions, I'll have Rajiv give a little more insight in terms of our ResolX as a product.

Thank you, Akash. To answer your question, these are not just voice and chatbots, but these are end-to-end workflows, which are designed to provide the end resolution to the query that has been asked. So it's not just a pure-play contact center play in terms of AI, but the entire customer experience space where AI is being used to personalize the conversations, personalize the journeys for the end customers and their outcomes. So this is across voice, e-mail, chat and the workflows which are deeply integrated into the ERP systems of our clients.

So what I gather by listening to management commentary on other listed players, especially in the finance sector, NBFCs, banks and all that, this voice agents, automated voice follow-ups and all that seems to be now industry standard. Everybody seems to be saying that it is initially automatic dialing and that's far more efficient than an agent calling up a customer. So where are you in terms of deployment of that technology?

So we have actually gone far more ahead than that. So what you are actually seeing in the market is just a replica of an IVR voice blaster. What they are doing is they're replacing the mundane voice of an IVR with a human-like voice and calling themselves as AI. What we are doing is that we are not just calling and making a sales pitch, but we are looking at completing the onboarding cycle, the service cycle and then the entire value chain that happens after the customer acquisition for a product company. So we are far more ahead and deepened into the AI agent ecosystem than just making outbound calls and behaving as a supplementary to a voice blaster that is happening there.

So you've already deployed all that. Has it resulted in any savings? Because I don't see margins going up because of that? Or does it lead to pricing pressure and therefore, margins will remain same?

No. So we've already deployed this. We have 12 live engagements, which are going on across 6 enterprise clients. The overall deflection or absorption to human is close to about 30% to 40%, depending upon the use case where we've deployed this. On the margin side of things, Akash, if you want to throw some light, that will help.

Absolutely. So as we said that we have just started inching our work on the AI side and ResolX is gaining traction in the business today. So the margins have shown up in a few of our projects that we've implemented where we can really see a great number coming up. But from our larger scheme of events in terms of our revenue and numbers today, the numbers are very small to be brought out or to be noticeable at this stage of AI business.

Because what I understood from the NBFCs and banking is that this has been going on for a while, and they all talk of very high efficiency, especially in things like collection and all automated calling is helping them a lot.

No, you're absolutely right. And there have been a lot of noise around AI. But most often than not, AI is misconstrued in terms of what is actually offered and what is...

No, they don't call it AI. They just call it automated calling. They don't -- nobody calls it AI.

And we are slightly...

So that's my question that are you -- since you also run voice-based BPO, are you using that technology? That is my question, not really on AI.

I'll invite Rajiv to speak a little more on the technology stack here.

Yes, yes, absolutely, we have the tech stack in-house available. That's what the ResolX platform is built on. So the automated calling is essentially nothing but a dialer, splitting out calls to wherever you want them to basically action. So we have our own in-house dialer, which is built on 2 PABX technologies that is available globally. So that is also something that we've built in-house. So to answer your question, yes, we do have.

The next question comes from the line of Mr. Ram Prabhudas from Neam Tree Advisors.

Could you just tell me more about ResolX and the whole Resolution-as-a-service thing?

Sure. So typically, what happens is that when large enterprises want to deploy or put something which is more advanced in nature, they end up buying a tool or an ecosystem in the market, and then that comes in as a bolt-on. What happens is that you are buying a software, you're buying a product and then trying to integrate it in your ecosystem. And all of this heavy lifting is typically done by the organization or the systems integrator who is there in between. Where ResolX differentiates is to exactly kill this software-service gap, and we own the resolution end-to-end, which means that you are buying a product to envision and streamline the customer journey to a great extent. We are not selling you a product, but we are selling you a service that will actually help you bridge that gap so that you are able to get the end outcome, because you can buy a product, but you may not know how to extract value out of it. So we've developed this platform to multiply scale for a particular client, but we do the entire end-to-end orchestration to meet the end objective of our clients.

Can you hear me? Just wanted to know if you've had any recent deployments with clients and how they turned out?

Sorry, I missed the initial part. Can you please repeat that?

Yes. Just wanted to know about any recent deployments of ResolX?

Yes. We've deployed this across multiple clients, right? So for the airline industry, we've deployed this to manage the entire customer services operations to a great extent. And we are deepening our deployments there to manage almost about 70%, 80% of the times why you would call up an airline. So we are doing that already. Outside of that, we have deployed this for a marquee Italian bike manufacturer where their channel was more to just have a great customer engagement. We've actually turned that around and flipped that into a lead management system. So today, just by deploying that Agentic ecosystem, their interaction channel is about generating 17% to 18% of their sales. And we are now going to further integrate with their inventory management system so that customers can get to know whatever they are ordering and how they can kind of turn that into a revenue-generating model as well. Outside of this, we've deployed this across 2 Central American banks as well, where we are addressing the peaks that are coming through because of the taxation season in terms of how to file and extract the maximum redemption from a tax standpoint. So all of their queries, close to about 98% of those queries are being managed by the ResolX platform. We've also deployed this for digital signatures validation for a Central American bank, where almost about 57% of the queries are today managed by the ResolX platform. Outside of this, we have also deployed this in the insurance side of things in India, where the entire onboarding and welcome calling, including validation of what you subscribe for is done using the platform. We are looking forward to scale this up significantly across all Indian languages, and almost about 7 to 8 products that insurance company has. So we are looking at significantly deploying these bots. And every bot will be -- we'll be deploying approximately 40-plus bots across these permutation and combination just for the insurance company.