OnMobile Global Limited ($ONMOBILE)

Thank you, Pratik. Thank you all for joining this Q4 2026 meeting. Interesting finish of the year, we have very good EBITDA growth, as you can see, 110% EBITDA growth for the year. Mostly the growth was because we reduced a lot of costs on all fronts, right? So you can see the HR costs, OpEx costs, marketing costs were optimized and most importantly, also all the gaming -- subscription gaming was EBITDA positive as of Q3. So that -- that's what made the EBITDA growing. And we see, as we mentioned in the past quarters, we see this EBITDA growing year-over-year from this point. Second thing also that we see is the subscription gaining a lot of growth, 32% on subscription gaming year-over-year, 14.3 million subs. So subscriber [indiscernible] grew quarter-on-quarter by 600,000 subs. As you can see, the revenue had a reduction of 15%. Last quarter, we had 30% growth. This quarter, we have a reduction of 15. The main issue that we had is that we have top 5 customers that we have to stop campaigns for multiple reasons. Campaigns have been restarted as of now. So the marketing budget was optimized and we grew into new accounts. The problem with new accounts is that since they're starting, the ARPU is lower and the conversion -- transaction conversion is lower also. So we end up in a situation where the revenues went down, although the subscribers went up. So the business grew, but the actual revenue de-grew. Over time, we will see this -- we'll correct. We don't change our targets. We still see this business growing a lot in the next 18 months as we plan. It's just a small hiccup in this quarter. And the third element I wanted to share with you is really the launch with Flipkart. We've -- as you know, right, I've shared this last quarter also, we spent so much effort to be able to do this launch. Everything is ready right now. As you can see in the deck, we've decided to launch in the next 2 weeks. Why did it take a bit longer than planned? And just to be clear, right, I mean Flipkart is a big players, you have to line up with them the way to see the business. We -- contrary to the rest of the business that we have, the virtual console needs a lot of components, which is different than mobile gaming, right? We needed a special type of server to be configured. Everything has been done with volume, right, because we need a lot of servers. So everything is installed across India right now, so that's done. We needed to have our own controller built. We've been working on the controller for now many, many, many months. The production in the factory gave us multiple samples that initially had to be tuned up. This controller is special because it syncs on any device which is not common to any other controllers. So when you get this controller, you can sync it on your laptop, your mobile phone, your iPad, tablet, Smart TV, and it stays connected whatever the device, you can just switch over, you don't need to remove your device and relog in. It's very, very simple to be connected on multiple devices and it switchover. So that's a big gain that we have on this product. So now everything in the box, and I think it's very important also for the users, right? We talk a lot about cloud gaming, talk a lot about mobile services. When we get into the console gaming, which is really a part of the industry, which has not been touched by other than the key players, key console providers and the PC gaming, we end up having basically in a box, a smart console, as we call it, that all you need is a few minutes, you sync it on your device and you can start playing and the team has managed to get a very good catalog of both games for kids and hard-core gamers and also the bring-your-own games so that we can have [indiscernible] titles that you can play. So I really look forward for this launch that is planned within the next 2 weeks. I hope that you will go and buy from the [indiscernible] link your console so that you can test by yourself the service and honestly, I really believe we have a good offer. We managed to do this at an extremely low cost. We're talking about less than INR 5,000 will come with 3-month subscription, 3 months, 6 months or 12 months, depending on the price, but at the price tag below INR 5,000, it will be 3- subscription. When you compare that just to the price of an XBOX or a PlayStation controller, it is more expensive, the controller than the whole smart console that we have with the subscription. And we managed to do it at very, very high quality. The actual video can be up to 4K, 60 frames per second. It's really a -- and the feedback is not myself just saying this, right? We have some top gamers testing the platform and they highly rated the service. So all this to say that now we're in the final preparation to be able to launch. We have the inventory of controllers, the first batch inventory of controllers shipped there in India. Servers are installed. We're going to final preparation, working on the marketing plan to do it and launching and the last thing I want to add that before we go to [indiscernible], is that this triggered a lot of new channels. If you can look in the deck that we shared with you in the investor deck, you see that E-commerce is one new element, right? We never deal not only with e-commerce providers. Now Flipkart is our first one, but many others are to follow and today, the discussions that this triggered is that we're talking to ISPs, we're talking to TV providers. We're talking to retail chains who actually want the boxes and sell in retail and obviously, we're talking to mobile operators. But in 25 years history, the only discussion we had was mobile operators or a mobile phone, you know what we used to do. Now we never had all these other channels of distribution. So this is really enabling us to be able to talk to multiple other providers. And it's a different go-to-market strategy than what we've been doing in the past. So it's really interesting times. Lots of discussions going on and really look forward to our launch in the coming weeks. And again, hopefully, you will go and buy your own console. So this, I'm going to let talk to you Bikram about operation and then Radhika on finance.

Thank you, FC. Welcome, everybody. FC has spoken at length about the virtual console. I will talk about few other elements around our business operations, which have worked for us, not just in the last quarter, but throughout the years. And as we move ahead, a little bit about what we see with regards to all our lines of business. So throughout the whole of last year in FY '26, we have already spoken about the results say that we've had significant margin in the government. We were very conscious throughout the year to focus on efficiency and cost controls, and that is showing up in the numbers as well. There are a few new lines of business which started generating revenues. We've been very choosy and picky with the kind of deals and new business we want to venture into. So two of our products, which is [indiscernible] and gaming platform, we have been able to launch with key marketing customers and be able to generate revenue. One of them is already live. The other one is going to more live in the next month as well. So that's something which we see, and it's going to contribute to our growth as well in the new financial year, which is FY '27. Something about the mobile entertainment business. We renewed our videos and editorial contract because of our large -- or the largest customer 6 months end [indiscernible]. So that also we did throughout the year. So that secures a key part of our business. It is one of our oldest long-term relationship, which we are continuing. -- ones oldest customer works well across 29 telcos. We are planning to go live with one more additional telco as we speak in quarter 1 of this financial year. This is -- we have also taken up a very ambitious task internally that we want to move this whole legacy stack to a very new cutting-edge cloud native platform. Now the spread of our tools business is such that this is live across 4 continents and all our deployments have driven the operator network. We want to do that. So this will be done in phases, operator by operator, we are testing next [indiscernible] quarters for us to be able to do that at level, how -- what will be the impact for us? It will help us significantly in efficiently maintaining all these customers, and we reduced a lot of bad quoted debt, which we are carrying, so that's something which we will do. In subscription gaming business, we've been growing throughout over the last 3 years. There were a few issues for us in quarter 4. I will touch upon that. So we have -- over a period of the last 3 years, we have been able to now reach the state that we've been able to optimize our marketing flows very well. We are very proud to state that our marketing engine runs very smooth, and we are able to understand how Google works, how do we market there, what is the affiliate network we have to go on to. In the coming year, we will also be diversifying and trying new marketing channels, which is basically Meta, with Instagram, with Facebook, TikTok, TikTok is banned in India, but beyond India, where we work, a lot of subscribers consume TikTok, so we're going to do that. And a lot of new DSP platforms, which we will partner with. We are also innovating with cutting-edge technologies like artificial intelligence to be able to render ads on the fly based on consumer profile, language, demographics, et cetera. A little bit about sales in FY '26. Few key very significant large deals, which OnMobile has been able to close. It's one of the healthier years in terms of sales closures for us over the last many years. A few of them are revenue line, few are going to core revenue line in this year. As we have entered the new financial year in FY '27, I'm very excited about the prospects with the new virtual console and other platforms like [indiscernible] and gaming platform, the kind of engagements we have been able to have with potential customers. So we are looking forward to an exciting year. Lastly, since we had a dip in gaming subscription, our momentum is back. We are growing, and we will be able to grow from here. Our mobile entertainment continues to deliver stable revenue and healthy margins. And we look forward to the launch of virtual console with Flipkart as an anchor customer. And I'll hand over to Radhika who will take up and tell us about the financials.

Hi, everyone. I'll now take you through the FY '26 financial performance. The highlight of the year is the quarter -- the yearly EBITDA grew by 110.6% clocking at INR 39.7 crores. This is an EBITDA margin of 5.7%. This is despite a revenue de-growth of 10% on a yearly basis. Reported profit after tax was INR 11 crores negative, excluding impairment provisions, which were provided for our internal policy, the PAT stood at INR 35.3 crores. Gaming continues to be our main focus, and mobile gaming was at INR 154 crores, down 25.4% Y-o-Y. In Mobile Entertainment segment, revenue stood at INR 370 crores, reflecting a marginal decline of 1.6%. On cash position, we closed the year and the quarter with a gross cash of INR 142 crores. On all KPIs of costs, we were down due to cost efficiencies built in. People cost was INR 110.7 crores, which is down 6.5% Y-o-Y. Marketing spend was INR 92.8 crores, down 2.2% Y-o-Y and all other operating expenses were down INR 43 crores, which was down 4.4% Y-o-Y. Our DSO stood at 131 days. Thank you.

[Operator Instructions] So we have one question in chatbox. So [indiscernible], is asking, "do you have any plans to bundle sales plans for our consoles with any new mobile device launches?"

We have planned to launch bundles for sure, right? And the big question is mobile operators, the speed they move is very slow compared to other retailers or e-commerce provider like Flipkart for example and others. So right now, that's why we're seeing we have many types of discussions right on many fronts. Obviously, the operator is still there. But what we see is that we can move way faster with the other distributors. So the bundle is a bit different, right? Obviously, when you sell through Flipkart, you don't have a bundle, but they can do upsells, right? If you buy a smart TV, they can upsell you a smart console. If you buy a laptop, they can upsell. So there's a lot of upsells being done. But yes, all types of discussions right now are on the table.

[Operator Instructions] So we have a first question from Yash.

I just wanted to understand on the impairment part, why we have [indiscernible] in INR 40 crores or taking it as a going concern?

We didn't wait just -- so this play back when we had issues with the [indiscernible], right, we stopped the accounting, this is a provision. It's not a -- so we're still in negotiation. All options are on the table right now. So this -- as we settle with them, it's going to come back as a positive. But right now, we have to take the provision because it's over 365 days.

Understood. And this exactly is just the DeOSphere deal that has...

This is only one deal, DeOSphere.

Got it. And regarding the the new control that we have launched or are launching, what are the internal thresholds we have in terms of the working capital?

One thing that we managed to do quite good is that we have finance companies, leasing companies for leasing servers, leasing the controllers. So right now, it has an impact because we have to -- for paper content, for example, and obviously, we have the whole team working to launch this, and there's other costs to be covered. But most, I'd say the majority of the working capital required is leased.

That's SP1 And this financial year, FY '26, we had another income of about roughly INR 50 crores -- INR 45 crores what would and this has never been a pattern before. What is the reason behind this?

Radhika, you want to take this one?

The other income, what you are seeing as INR 44 crores is a combination of exchange gain and interest on income tax reasons. The income tax refund was much higher, only the interest portion is considered here.

And one last question, please. FC, you mentioned about a few quarters back about 300 million guidance in the next 5 years. And we are currently at roughly $50 million. What is the growth plan behind that strategy behind that target. Can we somehow touch at least $150 million? How do you foresee the deals coming in the future?

Well, honestly, 2 things, right? One -- and I didn't give a guidance, I stressed my dream, right? And my dream versus reality. That's what we have to match, right? But the whole point here is when we enter the console market, right, you can see it today with the box, right? PlayStation, XBOX and all the console together, they sell 150,000 boxes in India, right? But that's a price tag of USD 500 and more. When we entered the market with a price tag of basically $50, right, 10x less, the potential to sell is way more, right? The curve goes higher. And now we talk about India, but we talk about Asia, Africa, it goes beyond everything, right? When we talk about big partners that we're talking to, not just mobile operators, but we talk about e-commerce partners, retailers, ISVs, TV, a lot -- just when you buy a Smart TV or when you're a cable TV operator to bundle the console with it and have a controller sent to every household makes a lot of sense. Now the big case and the big business case for console, if you look at the big console providers, they don't make money on the console. They make money on selling games. Right now, what we have is all bundled together. But the big money, as you know, buying a [ TAAA ] title is actually $50. The price of the whole console is 1 title. So the key in this whole scenario is to start selling games, right? So first of all, we have to get traction on the console with partners and second, once you get traction on console, then you start selling games, right? And when we look at the console industry today, right, the number of games bought by a player in the engagement is extremely high compared to mobile gaming. So yes, if we play it right, like I think we can. If the market is there and the market is there. So if we can capture the market core, yes, I think I actually believe that's the kind of numbers we can attain. The numbers that we show here is only mobile gaming here on this slide, right? That was the mobile gaming track where we're with the subscription gaming, which this track is different than the console, right? But yes, I mean, the big question, yes, and that's why it's so important to do the launch with Flipkart, well, right? How many boxes are we going to sell this year, right? So it goes -- the range is very, very wide. So the more success we have with our first e-commerce partner, the more success we're going to get with others, and this goes into a big effect here. So to be honest, I don't want to sell again another number and all this, I just want us to deliver on what the market could take. But yes, the numbers could be big.

And on the impairment part, I have one more question. Is this anyhow related to the server arrangement that we had, the commission arrangement we had like in terms of would servers be benefiting from that contract and do you see...?

No, No. Zero. By the way, I mean, [indiscernible] was to be able to get higher sales. It has nothing to do, no cost, no money paid. So there's no impact.

So we have a question in the chat box from [indiscernible]. So he's trying to understand when we will get to the level of steadiness in sales and profitability. We keep getting to stability and [indiscernible], equity markets stay uncomfortable with the Q-o-Q volatility.

Yes. Let me just address first thing, profitability, right? And again, for me, it's very important to be transparent. And you're right, right? It's been a journey that's been difficult. But I want us to remember the investment, the level investment we did in the last -- we started investing in gaming in 2020, right? So it's been 6 years now. It's going to be -- it's our sixth year. But today, if you look at our complete service set that we have set in gaming. Honestly, there's -- I don't know that many companies that has what we have outside the big groups, right, obviously, and putting aside all the big console companies here, I'm just talking about the actual platform, right, what we have and if you look in the years before, right, we were always putting CapEx and a lot of capitalization. So you would see the EBITDA, but the real cash generated in the business wasn't there because we put so much money in gaming. Right now, we capitalized pretty much nothing. Medica, how much capitalization will be put in this FY '26?

This year, it was around INR 3.5 crores. I see that was during the beginning of the year after the ...

So INR 35 million, that's all we have in CapEx this year for all the gaming compared to 10x bad the year before, just to be clear. And in 2027, we're not doing any capitalization whatsoever. So all the operations and all the cost of operating and gaming, I was saying the subscription gaming is positive since Q3. The console gaming is obviously not positive because we're launching, but the key is to have this in our operations. So there will not be any CapEx capitalization this year. So if you look at our EBITDA, it's a real EBITDA. There's no -- like this hit the cash below. So now we really are in a cash positive situation. And although, obviously, we need cash flow to grow the virtual console business, as we said, most of it is to lease with contracts and distribution partners that we have. So we're in a very, very different situation than we were a couple of years back, to be honest with you. And I agree with you. We have a bit of a hiccup. I would love to see the subscription business grow again by a good 10%, 15%, like we said. Last quarter, it grew by 30%, this quarter down by 15%, but the subscribers grew, right? It's just the mix that happens. We had issues with the top 5 accounts that we have to stop for multiple reasons that are now all restarted. But again, even on mobile gaming, right, we've been using only 1 thing, which is carrier billing, right? We do promotions through Google, most of it and carrier billing. Right now, there's a lot of opportunities for us to use as Bikram was saying, other means than Google for advertising like TikTok, Instagram, but also being in the Google App Store, right? The ONMO Plus virtual console will be in the App Store for both mobile and TV. And now we're going to do the ONMO app that's actually been always a web app, never been on the app store will be on the Google App store by -- during the year also. So other means of being able to monetize what we have as assets, but we truly have key assets and gaming. And right now, the time is the time of negotiation. That's why I was saying we have a lot -- like 10, 20 discussions right now just on the virtual console going on in business development. So lots of interest on pushing these sales, right? And again, all these will hit the bottom line pretty fast. So I hope that answers your question.

So we have the next question in chat box from [indiscernible] Patel. So he is saying with the appointment of [indiscernible] Matthew as an independent director, bringing significant experience from major paying entities like XBOX and Meta, how exactly will his expertise influence the product road map for ONMO and challenges arena going forward.

Well, actually, I'll just be very clear, guys. Leo, and I'm really happy that Leo decided to join our Board. He brings expertise -- direct expertise in gaming, but truly for the virtual console is going to be very helpful, right? I mean, he understands and he's dealt with all the key AAA game developers, right? He's based out of California. So we're really in the situation right now where even in that was actually at Microsoft also, right, managing Game Pass. Look at what we have and think it's been fantastic, right? And nobody -- when I say nobody has this in the world, it's not just like, again, I know I like to dream, but this was -- and again, this initial dream was not my dream. That was Google Stadia, right? And actually, when I was discussing with Leo, he told me that he joined Google, right, managing the Google Games and Appstore, the weeks basically or the month that they decide to stop Stadia right, after $5 billion invested, right? And basically, what we have today is exactly the Google Stadia dream, but we made it happen, right? And we're going for retail. We're still #1 for retail. So again, when Google did their analysis and look at the market, they thought the market was big enough to spend $5 billion. As we all know, we did not spend $5 billion, but I can tell you something. The quality that we have today and I really recommend that you go and buy the console when it comes out in 2 weeks and you test it out and you look and you compare it to a PlayStation and you tell me if you see the difference. And to be honest with you, sometimes, I think it's better in a PlayStation because you can switch screens very fast from any screen, which you cannot do on the PlayStation, right? I cannot connect my PlayStation to my phone. I cannot switch it from the phone to the big screen and come back on the laptop or a tablet, which is exactly what we can do now, right? So I'm really happy Leo is joining. He's going to be very helpful in his relationships because the next step, as I was saying, right, distribution is the first step. Second step once we have the users is to be able to get deals with key game developers, and it will be very helpful on that front.

And the next question from [indiscernible]. [indiscernible], do you want to go ahead and ask or should I just...

Sure. I'll do that. Thank you. So FC, the next question is, we spoke about impairment charges. And assuming that, that's a onetime and we won't have such a thing repeating, are we still on track for cash flow positive operations? And what's the cash on hand? Maybe Radhika can help with this at the end of FY '26?

Yes. So impairment is a noncash item. It is not impacting our cash flow. But our cash is positive in respect of this impairment because it's a noncash item. And our gross cash balance is INR 142 crores at the end of 31st March 2026.

Okay. Thank you, I appreciate that. And the last one, I'm going back because we did speak about fundraising and we had those plans and haven't heard anything in the last 3, 4 quarters. You did mention about no major CapEx for at least 6 to 8 quarters. Any strategic road map that you want to share with -- on that FC, because I think the gaming control, again, might need working capital but not necessarily CapEx. So your input on that, please?

Yes. To be honest with you, again, when we raised the money, we needed it because we want to start deployment. We took a bit more time as I told you, right, we managed to get leasing companies to finance the servers and the controllers because initially it was a bit tricky, right? We needed to buy the inventory and finance the controllers and by the time that, for example, [indiscernible] pays us, and made a big gap. So I'm quite happy that the team managed to get leasing companies to lease all this. So that makes, obviously, less demands on cash report. Again, from my dream scenario, right, would be to approach a real partner that joins on board with us that understand the gaming industry and wants to be part of our mobile. I would prefer this than going and raise capital. We still have the option to raise capital also, right? And that could be a [indiscernible] scenario. Doesn't have to be just a partner. It could be do the QIP as we discuss and get partners through that also. For now, my real focus is to make sure we do on the focus of the whole team, right, that we do a success with Flipkart, we get other markets interested other partners interested, and then we really make the math of how much money would we really need? Can we just do it? Obviously, the best, as you know, right, is that we just do it leasing companies and finance companies, and it works. I think our balance sheet today the way we are, we basically know the debt we have is to finance the cash flow that we need, right? So basically, we're net positive right now on cash. But if we stay in that situation, can we really grow the size that we would like to without any capital that would be a fantastic return on investments, but I believe we'll need probably to get some partners and raise some money. But for now, my focus is really get the business going, prove that the customer are happy. And again, guys, I said this on the last call and I'll say it again, we're going live in 2 weeks. There will be problems, right? And I'm not -- I mean we've tested all out. We have people in the office playing 16 hours a day, right, testing the platform. So trying to solve all the bugs, but you know what it is, right? We're going in new markets. There's going to be bugs, there's going to be problems that we didn't anticipate. We'll have to solve them. And then we can actually make the assessment of [indiscernible] how big can we make this business, right? So I know it's a question we all have, right, how big can it be, right? Again, let's get it out there. Let's get the feedback, let's give -- let's get all the problems that we can as fast as we can, so we can correct them as fast as we can, right?

Completely agree and coming from IT background, I can imagine the excitement for the product launch. Production is production, regardless of how much testing you do. But at the same time, I'm very positive because we are addressing the market with such a scale, and we can replicate that very easily. And once we fix all of this, it will be ready for far higher and quicker growth that we can have ambition for.

Totally agree. And again, India is huge, but Africa is huge, right? There's taxes in Africa, right? When you buy a PlayStation, it cost $80. Imagine this, how many console, we can sell just on the tax portion, right? It makes the whole thing I really think we have a fantastic business case. Now we have to make sure we have a real business, right?

No, sure. And I'll be buying one and testing out as well.

Thank you. And guys, if you can bite the first day, right, we're trying to really push on the first day sales. So if we can go we'll make sure that, Pratik just make sure that everybody gets the link to purchase on that first day.

[Operator Instructions]

Since the line is open I'll ask but a question to Bikram, what his second inning looking like? And what's keeping exciting for the next year and it's been enough quarter, so you can probably combine the two as well.

Thanks for the question, [indiscernible]. So OnMobile is close to my heart, and we have the second inning, which is very exciting. We've spoken a lot about virtual console and all. I think you see this the kind of product breadth now we have on the screen, right? That is something which Hanuman never had we were not playing in enterprise. We were playing in mobile banning or now going after console and then we manage the legacy as well, right? So the proof of the pudding is that we've done cash is positive. We are profitable -- that is really, really exciting. We are doing a lot of things around the air within the organization, which probably you don't see on the slides or the narrative. So the whole organization, we have reskilling a lot of people on artificial intelligence. We want to use a lot of those in our own internal predictive models and also product side. So a lot of excitement around it OnMobile and this is our 25th year. So 25 years of no to see 1 customer, 1 country, 1 operator to be able to go to 100-plus telcos and manage an operation across 5 continents in itself is a amazing actually. What we see going forward is what is going to define OnMobile. So first 25 years has given us the confidence that we have the where we reach and distribution power that 1 product, which we take, we can distribute really well to a lot of telcos so in this case, we are going to go beyond telcos also for our virtual consoles. So that's what keeps us going and really looking forward to the next couple of years to make the organization the more successful.

Great to hear. Thank you, Vikram. And again, I mean, I wish all of us similar. Having a company of this size available at INR 540 crores with INR 142 crores cash again, we need to just prove the scale and the growth, and I think the market will reward. But yes, I think we do need to -- we are looking forward to all of you leadership for making the next growth and getting into the next year.

Thank you, [indiscernible] and our confidence.

[Operator Instructions] As there are further no questions, I would like to hand it over to for the closing comments.

Very good. Thank you all. I really look forward to our next call because now we'll have the results of our launch, right? So we'll know basically all the feedback and I'll be able to share all the problems and issues that will arise from this launch. And the good news, obviously, that will come with it. please, again, watch for the launch in the coming 2 weeks, and please if you can go and buy your own console, that would be fantastic. So that next call, we can have a discussion on what should be adjusted in your personal virtual console. Thank you all.

Thank you, everyone, for joining us. Thank you, FC, Bikram and Radhika. Again, I would like to mention that some of the statements made in today's call may be forward-looking in nature and may involve risks and uncertainties that we see for such leases and such considerations, please refer to the earnings presentation. OnMobile Global undertakes no obligation to publicly revise any forward-looking statement to reflect future or likely events or circumstances. Thank you for joining. Thanks, everyone.

Thank you,[indiscernible].