Ecos (India) Mobility & Hospitality Ltd

Ladies and gentlemen, good day and welcome to the ECOS (India) Mobility & Hospitality Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded.

I now hand the conference over to Ms. Hashika Mutreja from Adfactors PR. Thank you and over to you, ma'am.

Thank you. Good afternoon, everyone. A warm welcome to you all and thank you for joining us today for ECOS (India) Mobility & Hospitality Limited's Quarter Four and Financial Year 2026 earnings conference call. We truly appreciate your time and continued interest in the company.

We are pleased to have with us the senior management team led by our Chairman and Managing Director, Mr. Rajesh Loomba, who will share his perspective on the company's performance for the quarter and financial year 2026. He is joined by our Chief Financial Officer, Mr. Hem Upadhyay, who will take us through the financial highlights.

Before we begin, I would like to remind everyone that certain statements made during this call may be forward-looking in nature. These statements are based on current expectations and are subject to risk and certain uncertainty that could cause actual results to differ materially.

With that, I now hand over the call to Mr. Rajesh Loomba for his opening remarks. Thank you and over to you, sir.

Thank you, Hashika. Good afternoon and a very warm welcome to all of you. Thank you for joining us today for ECOS (India) Mobility & Hospitality Limited's Q4 and the full year FY26 earnings conference call. I would like to extend a sincere welcome to all our long-standing investors and analysts and a special welcome to those joining us for the first time.

As many of you are aware, ECOS is India's leading organized corporate managed mobility solutions provider. We operate in two core segments; one is employee transportation services, which we call ETS; and chauffeur-driven car rentals or CCR. Our clients include major Fortune 500 companies, BSE 500 companies, global capability centers, IT-ITES companies, consulting companies, manufacturing, pharma, and a fast-growing list of Indian enterprises and SMEs.

We currently operate across 130 plus cities in India and have a presence in more than 30 countries globally where we provide our services. The common thread across all this is our focus on delivering organized, compliant, and technology-enabled mobility solutions. In a market where a significant portion of corporate ground transportation continues to remain fragmented and unorganized, we believe this remains an important differentiator for ECOS.

Our strategic partnership with SIXT SEQUENTIAL. Now, SIXT is one of the world's top four or five car rental companies, this strengthens ECOS' positioning as a global mobility solutions player beyond India.

Through its exclusive India GSA arrangement, ECOS customers now get access to SIXT's premium self-drive car rental network across 100 plus countries. This partnership enhances our

international mobility offering, while creating new cross-sell and enterprise-level travel opportunities for ECOS. So, this SIXT is used both by business travelers and leisure travelers.

Our strategic focus has always been to drive sustainable growth by onboarding high-quality new clients, deepening the wallet share with existing customers, and expanding our presence across new geographies. During FY26, we accelerated our efforts across all three areas simultaneously, while continuing to strengthen our execution capability.

Starting with our operational performance now. For the full year FY26, we completed approximately 5.23 million trips compared to 4.04 million in FY25, so this is a growth of approximately 29% year-on-year. Both our ETS and CCR segments have contributed to this growth and the demand environment from the large corporate clients continues to remain very healthy for us.

In ETS, we have seen stable demand from IT and ITES companies and a very good demand surge from our GCC clients. While in CCR, there has been a good demand growth across our highly diversified client base.

On client additions, we onboarded 223 new clients in FY26, out of which 64 were added in the last Q4 alone. This compares with the 188 new clients added in FY25. Today, our active client base now stands at over 1,750.

What I want to highlight is not just the number of new clients, but the quality of these relationships as well. Many of the accounts added during FY26 are large enterprise relationships where onboarding involves a structured and often lengthy evaluation process.

So, these wins reflect the strength of our service standards, compliance framework, and our execution capabilities. The strength of our existing relationship continues to be the cornerstone of this business. 55% of our FY26 revenues come from clients who have been associated with ECOS for more than five years. This level of client retention reflects the consistency of our service delivery and the trust we have built with customers over time, one trip at a time.

Coming to our fleet capacity. During FY26, we serviced customer requirements through our vendor partner network of 20,000 vehicles across India compared to around 14,000 vehicles in FY25. This represents a broader supply ecosystem available to ECOS to service demand across all our client segments.

The increase was driven by geographic expansion and onboarding of additional supply partners to support the new customer acquisition and strengthen the service reliability across 130 plus cities. This continues to remain and keep us asset-light and on an asset-light model with a large portion of the fleet sourced through our vendor partners.

On the technology front, more than 14% of our CCR bookings from corporate clients are now powered through either our CabDrive Pro platform or our API connections or our customer app during Q4 FY26. We also launched our direct web booking portal during Q4 FY26, enabling customers to seamlessly pre-schedule safe and reliable rides in advance.

Now, this initiative is not aimed at entering the mass B2C space, but at better serving customers and users who specifically prefer the ECOS experience and service standards. We believe this is an important step in extending our enterprise-grade services and platform to individual premium users and SMEs to broaden our reach beyond the traditional long-term contract channel.

We have launched also a new core backend platform, which will help us optimize process efficiencies while further enhancing the customer experience. So, technology for us continues to be a key differentiator in this business, particularly in the CCR segment, and we remain focused on strengthening our digital capabilities.

So, as we enter FY27, our focus is on translating the scale we have built over the last few quarters into a stronger growth, a sharper execution, and improved operating discipline. Over this period, we have continued to strengthen our operating capacity and execution capabilities across markets in line with business growth and we are seeing encouraging traction across client additions, trip volumes, and the large enterprise client engagements.

At the same time, we remain disciplined in balancing the growth with profitability and as accounts mature and utilization improves, we expect operating efficiencies to improve progressively over time.

More importantly, the broader industry opportunity continues to remain strong, particularly as large enterprises increasingly consolidate mobility spending with organized and technology-led partners. We believe that ECOS remains well-positioned to benefit from this structural shift.

With that, I hand it over to our CFO, Hem Upadhyay. Over to you, Hem.

Thank you, Rajesh sir, and good afternoon, everyone. Let me now take you through our financial performance for Q4 and full year ended March 31, 2026, and provide some important context around the key movements.

Beginning with Q4 FY26, revenue from operations for the quarter was INR2,067.60 million, showing a year-on-year increase of 16.65% over Q4 FY25. The quarter witnessed continued traction across our core business segment, supported by deeper engagement with existing enterprise clients, onboarding new accounts, and sustained demand across key markets.

EBITDA for the quarter came in at INR241.53 million as compared to INR264.67 million in Q4 FY25. Profitability during the quarter was impacted by continued investment towards business expansion, technology, and strengthening organization capabilities for future growth.

Coming to the full year performance, revenue from operations for FY26 stood at INR8,081.58 million, reflecting a growth of 23.58% over FY25. During the year, we continued to expand our enterprise footprint, strengthen our nationwide network, and enhance execution capability, all while maintaining our asset-light operating model.

EBITDA for FY26 stood at INR939.29 million. Margin during the year was influenced by higher manpower cost, expanding leadership bandwidth, investment in tech, and competitive pricing environment, especially in the ETS segment.

In addition, during the year, we made a one-time provision for doubtful debt of approximately INR80 million as a part of our prudent approach. The company remains focused on execution discipline and improving operating efficiency going forward.

From a balance sheet perspective, we continue to remain in a strong financial position with healthy cash flow, low leverage, and disciplined capital allocation. As on 31st March 2026, our cash and investment stood at INR1,373 million, providing us with significant flexibility to support future growth initiatives while maintaining financial prudence.

Overall, FY26 has been an important year in terms of the strengthening the scale, depth, and resilience of the platform and we believe that business is well-positioned to capitalize on long- term structural opportunity in organized corporate mobility space.

Thank you. I will now open the floor for questions.

Thank you. Our first question comes from the line of Jainam Shah with Equirus Securities.

Thanks for the opportunity. Hope I'm audible clearly? Yes, Jainam.

Yes. So, first question is related to the West Asia crisis. So, two things to it, how it is impacting our demand? What we see is that in nine months the growth rate has been more than 20% across the quarters. This quarter also we had a good growth rate on a Y-o-Y basis, but on a sequential basis, fourth quarter has always been the strongest quarter, but revenue was flat versus 3Q.

So, is it because of the West Asia crisis impacting let's say our CCR segment or how do we see this particular thing along with that let's say if any growth guidance that you wanted to give for FY27?

Yes, of course, the Middle East crisis did affect our CCR business where the growth was not as well as I expected in the March, in March. Till February, it was going great, but post the -- this Middle East crisis in March, we saw a little bit of dip in the growth.

So, to that extent, we and I think maybe a lot of other players in the travel trade have been affected, but we saw a good bounce back going ahead. So, eventually we see if this does not continue for too long, we don't see much of an impact coming in. Got it, sir.

And as for the second, what our growth considering all this, we what we would look at is around an 18% to 20% growth in the coming year is what we can aspire to.

Got it, sir. And what has been the contribution between both the segments for this particular quarter and for the full year?

For the full year, the for full year it is 58% to ETS and 42% to CCR and in this quarter, it is 57% to ETS and 43% to CCR.

Got it, sir. So another question is also on the West Asia crisis because of that eventually the fuel price, both petrol and diesel, has now increased by around let's say 6% to 7% and even the other CNG price has also increased.

And what we see is that going forward let's say how we will be able to pass on this increases to our clients because our contracts would be let's say getting renewed on a timely yearly basis. Do we have any built-in escalation to pass on everything? How our let's say the supplier community has passed on this hikes to us and how do we see this impact on our margins overall?

So, as far as the fuel escalation is there, it varies with the various contractual obligations from client to client, but in most of our contracts, it is a pass-through. Once either the price increases over a certain threshold, typically anywhere between 5% or so, we pass on the entire hike to the client.

Okay. And so largely our margin is not much impacted because of this, maybe time lag would have been there, otherwise things would be largely stable and pass-through.

Yes. There may be some time lag, some places it may be a few days and some places it may be a few weeks.

Okay, okay. Got it, sir. So, any broader margin guidance you wanted to give for this time along with the revenue guidance of 18% to 20%? Any broader range?

So, if you look at EBITDA, I think with a disciplined approach and maintaining operational efficiency, we should be this year able to deliver anywhere between 11% to 13% in terms of EBITDA.

Got it, sir. And sir, what's your view on the competition? Like given the price hikes or the fuel price has also increased similar to us, everyone would be passing it on or they'll be holding on price to let's say get some market share from us or maybe any other person?

We have seen the especially in ETS we've seen a competitive price environment where it depends on strategies from company to company where how much of pricing one wants to give to, you know, acquire a client et cetera.

So, we have seen some competitive pressure over here, but we feel there is a certain threshold which more or less exists in the market beyond which it doesn't make sense for people who are not willing to burn money as such to go below. So, we are well within that range.

Got it, sir. So, just last one question from my side. What we have seen during this year is that in FY26, two of the costs, one is other expense because of the provision that we have created and

another one the employee expense because the investments that we have done in our employees to have the better growth going forward, these two has impacted margin a lot.

How do we see this run rate going forward with the 18% to 20% growth? Will this expense will be eventually down to let's say provide some operating leverage to us and what's your view on the receivable that we have provided for around let's say INR8 crores in this year? Are we seeing any movement over there? Are we getting it in FY27 or anything like that?

As regards the manpower cost is concerned, definitely we are going to see we saw a good increase last year given, you know, the that we had given good hikes to everybody. This year what we are seeing is we'll be seeing a much more muted growth in our manpower cost, which should give us some operating leverages over there while we are looking at also expanding our leadership bandwidth in senior positions this year.

Your other question was regarding other costs, increase in other costs, right?

Yes. So, the INR8 crores provision that we have provided, overall other costs would have not been that high as a percentage of revenue, so that will also place provide some operating leverage for us in the next year.

Yes, of course. So, that was a one-time and we have already that is under legal proceedings for recovery of that money and we are very hopeful of the recovery. And as regards your what was your last question, Jainam?

Yes, this was on the recovery only, so what's the status over there?

Yes, Yes. So, legal proceedings are on and we are very, very hopeful of recovery. It may happen this financial year or maybe it goes into next financial year, that's the matter.

Okay, okay, sir. Thank you so much. This is from my side.

Thank you. The next question comes from the line of Dixit Doshi with Whitestone Financial Advisors. Please go ahead.

Yes, thanks for the opportunity. So, some of my questions have been answered. So, just a couple of things. Firstly, you mentioned that now 14% of our CCR business comes through our app.

So, still a large portion is coming through the emails. So what, you know, stops client from switching from email to app and how in terms of cost and everything it helps us better when it comes through app?

Coming through email is more about client behavior which changes only over time. Typically in the corporate B2B space, people have become more used to and comfortable just sending one line email to book their car or it comes through their centralized administrations or travel booking offices.

So, where they end up also same using the email while we are, you know, constantly at it and offering various, you know, user interfaces and incentives for clients to shift over. Cost impact is there, more than cost impact it's we are trying to convince our customers about it about the speed of our response which is much faster if they will use our app and our online booking platforms.

So, we have almost a 50 member central contact center team which of course does all the tracking and 24/7 and also answering customer queries in addition to entering the reservations which come over email. So, we see that also as a factor of creating stickiness and pampering our clients as per what they need, at the same time pushing them to adopt technology more and more.

Okay. And in terms of client addition, you mentioned, you know, 223 clients and now we are at 1,750. Can you give some idea about how much client would have stopped using our service this financial year?

See, we have a long tail of clients if you look at, you know, over 1,750. But our major clients if I were to say are top 200 clients, the churn is minimum, there may be 2% or 3% is what's over there. While clients who may be using you know two-three times in a month, they keep coming and going and depending on their needs which may not be constant and consistent.

Okay. And last question, any thoughts on dividend this time? I think there was no dividend was announced.

So, dividend was not on the agenda on the board meeting we had yesterday. We are going to be setting up a separate board meeting to discuss about dividend or other alternate, you know, ways that we can increase the shareholder value. So, that's on our mind, but no decision as yet.

Okay, okay. That's it from my side. Thank you.

Thank you. The next question comes from the line of Jigar Jani with Nuvama PCG Research.

Yes, hi sir. Thank you for taking my question and congratulations on a steady set of numbers.

Sir, a little bit theoretical at this point, but have you seen any impact on the ETS business from the PM's appeal to kind of go for work from home as much as possible to save fuel cost? Have you seen any demand impact on the ETS business on that front?

Not as yet, Jigar. We were also a little worried about when we saw that, but there has been no impact as of yet.

Understood. Yes. So, you are not seeing any demand slowdown or companies kind of adopting it voluntarily?

We are constantly in touch with our customers and most of them already have well-matured work from home policies already in place where a certain segment of the people are working from home and those who need to be in office then they just need to be in office and that they have determined over the last three, four years post-COVID, when this return to office aspect started and there was a lot of has been a lot of, you know, debate and discussions on this matter

already and people are pretty well settled into the final outcome of that debate and discussion as to, you know, who all needs to be in office and who can work from home.

Understood sir. And just in relation to the previous participant's question on benefits from operating leverage, just trying to quantify. So, we have been around INR22 crores of quarterly run rate in employee expenses, about INR8 crores to INR9 crores in other expenses. How much increase do you see in these numbers for the build-out of the senior management team and any employee addition that you guys are planning to do? What kind of number or increase can we see?

Voice is breaking. Can you just repeat, Jigar?

Yes, just a moment. I'll just switch. Just give me one. Hello, is this better? Yes, better.

Yes, Yes. So, what I was trying to understand is on your employee and other expenses part, we are about at INR22 crores employee expenses and other expenses are about INR9 crores.

Considering the senior management build-out, what kind of increase can we expect? Would it be lesser than the revenue growth that we are expecting? What could if you could quantify some number, what kind of plans you're looking at on both employee and other expenses?

So, in our in terms of our HR cost, we would expect approximately, you know, anywhere between a 13% to 15% or 16% growth in the employee cost. That is what we are budgeting for in the latest AOP.

Okay, okay. And other expenses also similar range?

Other expenses would stay around 8% to 9% increase, not more than that.

Okay, okay. And sir, this growth that you are guiding for 18% to 20%, tentatively how much of this will be organic growth from existing clients and how much would be new client addition that would contribute? Just trying to understand where the growth is likely to come from?

So, our -- both of them are our engine drivers of growth. The organic growth by increasing the wallet share of our customers, you know, wherein we know there is still every year there is a headroom to grow with more and more vendor consolidation happening.

At the same time, we have a very large and well now well-established sales team who is also gunning for the growth. So, I would say most of the growth, I would say around 60% to 65% of the growth should come from new client acquisitions and the rest from the organic.

Understood. And sir, lastly on this margin guidance of 11% to 13%, does that assume that fuel cost won't go higher or you have accounted for the pass-on and the impact of the fuel cost and that will be partially offset by the operating leverage that you guys will get? Is that accounted for as of now?

Most of the fuel cost is a pass-through only. There may be some impact because of certain lag periods which may be there in some accounts, but most of it is a pass-through, so we are not too worried on that account.

Okay. So that your guidance accounts basically for those variations that might come in? Sorry?

Your guidance of 11% to 13% accounts for these variations that are likely to come in on some of the contracts that might pass?

Yes, yes. Most of the fuel cost is a pass-through only. There may be some impact because of certain lag periods which may be there in some accounts, but most of it is a pass-through, so we are not too worried on that account.

Okay. okay. And sir, lastly, so just to summarize what I would assume is that if since the last three-four years we have grown very nicely on the top line, but due to one or other factors our margins have been impacted.

From here on would it be fair to assume that your top line growth will reflect largely into your bottom-line growth going ahead if everything remains the same and there are no exceptional circumstances in the environment?

Of course, the objective and effort always is to have a, you know, sustainable growth. There are periods when there is a spurt in the top line growth by new client acquisitions et cetera and it takes a little while for us to get the focus back for those clients into the bottom line growth and the margin expansion at with, you know, with regard to those specific clients, especially if they happen to be large clients.

So, it's kind of cyclical in that manner wherein a large spurt of growth in terms of top line is also accompanied by a little bit margin shrinkage, but then it makes up with more concentration on margin expansion in the future quarters.

And as I mentioned about the lifetime value of our customer is very high with an average is more than six months six years that a customer stays with us. So we have good amount of time to expand margins with that client.

Understood, sir. Thank you so much for patiently answering my question and best of luck for the future. Thank you so much.

The next question comes from the line of Pulkit Singhal with Dalmus Capital Management.

Thank you for the opportunity. My first question is on, you know, the -- our view around usage of EVs in the fleet. I think again because of the West Asia crisis and, you know, the higher pollution thing which has been going on for a while, many corporates would also probably want to internally move towards fleet vendors who have lot more EVs in their fleet. How do you think about investing in that area as a way of creating a competitive advantage going ahead for the next three to five years?

Yes. So, while there is no -- we don't have any dearth of capital to invest, but we are still cautious in our approach to allocating capital towards EVs in spite of the, you know, there is a certain demand, but we are still approaching cautiously because we feel there are now a very, very few products earlier there were none, now we feel there are very few products which are mature enough to handle the rigor of, you know, our kind of business in the EV segment.

Plus we also our decisions are also based on our assessment of the charging infrastructure which is available for these vehicles and also things like the residual value of the vehicles et cetera.

So, we still approach this cautiously and are ramping up in a sustainable manner the number of EVs that we have and that we offer to our clients. So, there are still a lot of challenges and still a lot of myths about even the efficacy of EVs that continue. So, we have to be cautious in that regard.

Right. So, this is more to do with lot of the technology change. So, in three years out, I mean there are lot of new launches that will happen, but your stance could change three years out?

Our stance could change three months down if we feel that, you know, the everything is see one two things. One, the product in terms of the vehicle has to be something which is not, you know, in workshop 25% of the time, number one.

Number two, the if I'm running IC vehicles, I am not putting up my petrol pumps and CNG stations, correct? Why should I have to put up charging station, right? If I have to run EVs. So, these two questions need to be answered very, very simple. Lot of things in life are pretty simple as long as you don't get carried away by media hype.

Yes, Yes. In terms of your capex, I mean you've done almost INR120 crores of capex last four years, averaging INR30 crores a year. How do you see the next three years?

So, unless we see a so what your -- the first question about EV investments, if we see those conditions developing where, you know, EVs are a very much a norm and they are sustainable financially, we will see a larger investment in EV capex over there. Otherwise, we expect the same trend to continue.

Okay. Lastly on the margin bit. I mean given the new realities of the market, the amount of investments you're doing for growth et cetera I mean how would you think of the band three to five years out? You used to operate at 14% to 16% in the past, but is it fair to say 11% to 13% reflects some the newer reality or how would you think about things?

ETS we feel yes, the price competitiveness will stay for a while, but in CCR which is more of a brand play and our focus on building up our brand, we feel we would be able to, you know, somewhere offset that with growth of our CCR business also. Okay, great. Thank you. Thanks.

Thank you. The next question comes from the line of Nilesh Doshi with Prospero Tree AMC.

Thanks for the opportunity, sir. Most of the participant have asked about the increase in the cost, operating cost and future outlook because our revenue growth is around 23% to 24%, but the two major cost, two major operating cost, employee cost and other expenses increased by 42% in which the other expense include the one-time INR8 crores write-off in the quarter two which you mentioned that it is likely to be recovered. That's okay.

But sir, what is the future outlook for the revenue growth and will this cost remain as it is or will increase in the same proportion to the revenue growth because our revenue growth is 23%, operating cost increased by 40%. The generally the -- there must be some component of the fixed cost which is not increasing in the same manner, but here the -- our operating cost increased more than the revenue cost. So, kindly explain the future outlook for these two cost and revenue growth?

No, sir, it is a valid question and I think I've answered part of it in the other question also just a while back. So, we will we do not expect a similar growth in cost this year. It will be much more reasonable is the expectation in terms of our cost growth and we hope to kick-in some operating leverages starting this year.

Because sir, when at the time of the IPO our operating margin was around 15%. Now, it fell to 11.50%. If the if there is a revenue growth, but it does not convert into the operating profit, then how the -- our bottom-line will be improved? It is the revenue growth is more important for the startup. Now, we are the established and mature player. Is it the only the revenue growth is important or the profit growth for the shareholder is also important, sir?

I think both of them go hand-in-hand. We are looking at it as a mature business for the long- term. The revenue growth and demand generation remains the lifeblood and lifeline of the organization of the business.

At the same time, we have to be focusing on our margin expansions, on building our brands also and that is how the margin growth also keeps happening.

If possible, kindly explain how what is our focus area? It is the revenue growth or we will control the cost also?

It has to be both. I mean there cannot be one focus area. I cannot sacrifice revenue growth for expanding the margin in any one year because then I'm compromising my business for the future.

So, we have to focus on both and we have to see how we are able to draw a balance between the growing the revenue and also expanding the margins.

Okay, sir. So, let's look in the first quarter that there will be some improvement in the operating margin. Okay. Thank you. All the best, sir. Thanks, sir.

The next question comes from the line of Hiten Boricha with Sequent Investments. Please go ahead.

Yes, thank you for the opportunity, sir. So, my question is again on the revenue. So, when we say we have very we have seen a very good growth in our number of trips which is I think 30%, 29%-30% odd growth, but when we see our revenue per trip, it is consistently coming down.

So, last year it was around 1,600 and this year it is 1,550. In FY24, it was somewhere around 1,750-1,780 odd per trip revenue per trip I'm talking about. Can you throw some light on that what is happening on that side, sir? Are we not like are we not increasing our realization or the pricing to what about the pricing side? If you can explain on that.

So, there have been some competitive pricing pressure because of which we have seen some dip in the average ticket size, but this average ticket size in some ways it can be a little misleading also not just because of pricing. Yes, there is a pricing pressure and because of pricing also they have the ticket size has come down, but it's also have come down because of shorter trips in the ETS or more airport transfers in CCR.

So, it's a combination of factors, but yes, there is a competitive pricing pressure. A little bit in this it has been more in ETS than in CCR, but yes, you are correct, there is a little bit of competitive pricing.

Okay. So what kind of growth then we are expecting in terms of number of trips, sir? And sir, connected to related to this question only, you also mentioned that we are passing the cost of fuel cost, so are we passing that immediately or is there is a lag of quarter also?

No, the lag can vary between a few days to a few weeks, not more than that. So typically, the contracts are like okay, if it goes over X percentage, then we pass on the entire cost. Till that till that percentage, we have to absorb. So, for example, now it's happened more than 6% to 7% increase happened, so it's been all been passed on to the client.

Okay. And sir, continuing question on the pricing pressure. So, are we seeing this pressure to like kind of slow down or is it going to go up only?

Thank you. The next question comes from the line of Saurabh Dhole with Fyers Assets. Please go ahead.

Yes, good evening sir. Good afternoon, sir. So basically I have two main points to, you know, pick your brains on. First is when you look at, you know, the scale advantages that come from

let's say some of your older accounts because I think around 55% of the business today is accounted for by accounts which are greater than five years old.

So, I want to understand how has the margin trajectory on those accounts been and what is the delta between margins on those accounts versus the margin on the consolidated entity level numbers? So, that is question one.

And the second one is when you when you, you know, when you penetrate deep into a client, is it purely, you know, you taking market share from somebody else, some other vendor that the company may have, or is it also because you may discover or the company or your client may discover newer use cases once they start working with you? So, those are my two questions.

So, I'll answer your second question first. So, our new client acquisitions are a mix of both. Older clients who are, you know, looking to consolidate their vendors or looking for better quality vendors.

And secondly, there's a there's a huge growth in the number of what we've seen number of new GCCs and manufacturing facilities that are opening up in India and a lot of growth in terms of the enterprise clients is also coming from there for ETS.

As far as CCR is concerned, our growth is mostly diversified the new clients and new companies, old companies, and of and across all sectors. It's a highly diversified growth that we've seen in in CCR. And can you just repeat the first question, I'm sorry.

Yes, the first question is when you look at some of your old accounts, I think 50% to 55% comes from old accounts. So, what is the margin trajectory on those accounts?

Yes, so see margins is not only a factor of pricing, it's also a factor of how we are able to run any operation, especially the complex ETS and the large CCR operations, how we are able to run them most efficiently and drive our margins by cost optimization. So, it's always a mix. It's not that an older clients will give you lesser or higher margin than the newer clients, it's always a mixed bag.

So, do you do you then mean to say that, you know, if the business goes, you know, whatever 4x, 5x from here, we are still unsure about what the margin trajectory will be?

No, we have what we are looking at it, I don't know what's going to happen five years down the line, but definitely for this coming year, what we are looking at is a reasonable to expect a margin of between 11% to 13%. In fact, not just for the next year, but even for the next couple of years and where we are making our efforts to optimize the operations in such a manner and reduce our overhead costs to get the operating leverage kicked in. Got it, got it. Thank you so much. Thanks.

Thank you. The next question comes from the line of Arnav Nawalkha with Trisula Capital.

Hi sir, thanks for the opportunity. So I just wanted to better understand ECOS' value proposition.

So sir, if you could shed some color on what are core capabilities that gives us the right to win against local fleet operators and unorganized players? Also if also if you could shed some color on if we are taking any initiatives on continuous basis to stay ahead of the curve and probably strengthen our proposition against our peers?

So, if you look at ECOS, the if we talk about, you know, our value proposition and our right to win, it's the ability to deliver a consistent and predictable quality of service across geographies, especially for the larger and more complex transport requirements. And they could be ranging from, you know, the large enterprises which have large transportation requirements, it could be conferences, events, things like that.

Then the right to win then comes from our ability on one side, you know, our deep relationships and our credibility and our reputation in the market on the client side which gives them the confidence to depend and trust ECOS for all their complex transportation requirements.

And other side, the supply ecosystem which has been built over decades, which is not easy to replicate to ensure that in an asset-light model you can keep delivering that same consistent and predictable level of service to your customers every trip at a time?

Understood, sir. Yes. And across both our CCR-ETS vertical, so are ECOS' services typically priced at a premium discount or largely in line with the other operators?

If I were to look at CCR, we would we command a certain premium. In terms of ETS, depends on the complexity of the operation. If it is a very complex operation, we ECOS does command a premium or it is a preferred vendor for lot of our clients to get in.

And strategically if we feel that we need to, you know, be in line with the unorganized also, there also we are able to match them at the same time we are able to run that operation more efficiently because of the high density of the demand that we have allowed us to have multiple sources of supply for the same client.

Thank you. The next question comes from the line of Sahil Sharma from Dalmus Capital Management. Please go ahead.

Yes, hi. Thank you for the opportunity. Just wanted to understand bit more on this competition that you have been discussing. So, are we seeing this competitive intensity from the more traditional players or the existing players or from the some of the new-age, you know, companies that tech companies that are coming into the space?

Yes, so it's a very good question actually. And we see this more of the price competition that come in comes in from the new entrants who would want to, you know, put the foot in the door and are looking at price as an option to do that.

At the same time, so it's a at the same on one side we do welcome more and more organized players coming in and because we feel that this further accelerates the ecosystem to move from unorganized to organized players. And it's a fairly, you know, old-time practice that you reduce your prices and you try and get in.

And final proof of pudding is always how you can sustainably run that operation over a period of time and we feel that this has a certain life cycle and wherein thereafter the prices do rise because you cannot keep unsustainably having an unsustainable business model that solely relies on pricing. And customers also realize that, they've already seen that happen.

Thank you. Ladies and gentlemen, due to time constraints, we would take that as the last question for today. I would now like to hand the conference over to Mr. Rajesh Loomba for their closing remarks. Sir, please go ahead.

So, thank you for this opportunity to interact with our investors and we look forward to this the new financial year, our team is completely energized and we look forward to creating more and more value for our shareholders in the coming year.

Thank you. Ladies and gentlemen, on behalf of Adfactors PR and ECOS (India) Mobility & Hospitality, that concludes this conference call. Thank you for joining us and you may now disconnect your lines.