Blackbuck Limited — Q4 FY26 earnings call

Basically, the whole framework of MLFF is on prepaid collection. That's point number one, right? Because in India small ticket sizes, post-paid and enforcement and the cost of collection of that is going to be very high... 100 % of our revenues are from the issuer ecosystem. Right? The MLFF replaces the existing acquisition ecosystem to a MLFF based acquisition ecosystem which uses cameras and much better quality RFID readers.

Clarifies Blackbuck's position in the evolving MLFF tolling system, emphasizing their role in the issuer ecosystem which is expected to remain relevant despite changes in the acquisition side.

Asked by Raghav Mittal

Close to 600 crores is the assets managed by our partners overall in our books. About 10 percentage is basically on our books. Their strategy remains constant. Basically, whenever we onboard a new partner for the new partner's confidence we do a co-lending book together... we continue to build the vehicle finance on asset light model as we have always articulated the last 3 years the strategy remains same.

Provides specific figures for the vehicle finance book and reiterates the company's asset-light strategy, which is crucial for understanding its capital efficiency.

Asked by Atul Borse

Basically, if you split the business of telematics into three to four parts one is our core vehicle tracking device which is regardless of mandates which is a basic GPS tracking. Second is the AIS device which is driven by mandates right and third is your fuel sensor and the new initiatives dash cam etc right.

Offers a detailed breakdown of the telematics business, explaining the different product categories and their respective growth drivers, including the impact of AIS mandates.

Asked by Ritwik Agarwal

Because for us growth is actually an outcome because we don't manufacture a growth rate... we try to invest till the time it's not profitable to acquire that customer anymore... we are in a very large industry right it's a $200 billion kind of an industry and we've built a company which is very small till now and there are so many avenues to grow right.

Explains management's philosophy on balancing growth and profitability, highlighting that growth is an outcome of profitable customer acquisition and strategic investment in a large market.

Asked by Jitu Punjabi

I think the pace of super loads definitely could have been much stronger. In terms of when that would come through probably when the confidence on really going further all out in terms of strategies across all the newer hubs etc. Maybe, I think that is a time when such kind of a scaling can be expected.

Addresses concerns about the slower-than-expected scaling of super loads and its impact on profitability, indicating that faster scaling is dependent on further strategic confidence and expansion.

Asked by Ankush Agarwal

I'll answer the question sequentially so the Middle East crisis the cautionary context was in terms of as I clearly articulated also, I think there'll be a drag on growth, right? I think that's the thought process. Point number one, right? And what we are seeing as I was mentioning because intercity trucks typically sit at the top end of the value chain and mostly till March, I think there was a lot of inventory stocks which would definitely move but going into April and May we're finding some kind of drag on it in taking off.

Provides management's direct assessment of the geopolitical risk, confirming an anticipated drag on growth for intercity trucking due to inventory movements and current slowdown.

Asked by Abhishek Banerjee

So, our vehicle finance play is largely predicated on being a digital first company being our mobile app is in the pocket of large number of fleet operators across the country. We generate real-time data about these truck operators. So, our vehicle finance play is predicated on this aspect and that's yielding results and it's also a growing market.

Explains the unique competitive advantage of Blackbuck's vehicle finance business, leveraging its digital platform and real-time data on truck operators for origination and risk assessment.

Asked by Abhishek Banerjee

So, in trucking business what we've understood over the years is that building a business with negative contribution creates a lot of negative behaviour and sentiment amongst the market participants because the nature is at the end of the day it's a B2B relationship right. So, most or all our businesses across regardless they are new or experiments or whatever we are always contribution margin positive. We make money on every order we do so if orders scale our profitability converges.

Clarifies that all growth businesses are contribution margin positive, indicating that while they are in investment mode at the EBITDA level, individual transactions are profitable, which is a key quality metric.

Asked by Avnish Tiwari