Any current/future new fundraising through debt or equity?

Currently, there are no immediate plans to raise capital for the Gaming business as it is funded by its own operations. Earlier intentions to raise money in the U.S. for Gaming have been complicated by tax and revenue structure considerations. Fundraising, if needed, would most likely occur through OnMobile Global Limited in India rather than the U.S. subsidiary. A potential Qualified Institutional Placement (QIP) to finance acquisitions remains a possibility within the next 12 to 18 months, contingent on finding suitable profitable companies with synergies. Debt financing is challenging due t

Any current/future capex/capital investment/strategic investment?

The company has stopped capitalizing gaming development costs this year; all development expenses are now expensed in the P&L, indicating no major current CapEx on gaming infrastructure. Focus is on profitable growth and cash flow generation rather than heavy capital expenditures. No planned venture capital-style startup investments; M&A strategy focuses on acquiring established, profitable companies with synergies rather than startups. QIP (Qualified Institutional Placement) is on hold but remains a potential means to raise equity capital for future acquisitions or CapEx. Existing assets like

Future growth expectations in sales/revenue/volumes?

Gaming revenue target: Grow from $16 million run rate to $24 million annually by March 2026, a 50% increase. Average gaming revenue for FY26 expected around $20 million. Gaming EBITDA margins aimed to reach 25% within the next 12 to 18 months. Traditional Mobile Entertainment business targets conservative 5% year-on-year growth for FY26, after a 13% Q-o-Q growth in Q1. Traditional business EBITDA margin expected between 15% to 18%, potentially rising to 20%-25% with growth. Overall revenue growth guided with focus on profitable scaling and monetization of gaming platform and mobile e

Future growth expectations in earnings/operating earnings/profits/EPS?

OnMobile targets around 25% EBITDA margin for the Gaming segment within the next 12 to 18 months as growth becomes profitable. Gaming revenue is expected to grow from a current run rate of $16 million to $24 million annually by March 2026, reflecting 50% growth. The traditional Mobile Entertainment business aims for a conservative 5% growth annually, with potential upside. Traditional business EBITDA margin target is 15% to 18%, possibly increasing to 20%-25% with sustained growth. The company emphasizes profitable growth and positive operating cash flows each quarter going forward. Long-term

Current/ Expected Orderbook/ Pending Orders?

The transcript does not explicitly mention the current or expected order book or pending orders in exact figures. However, Bikram Sherawat highlighted building a sales pipeline providing confidence for the coming year, indicating a healthy funnel of potential deals. New greenfield deployments and a 5-year license deal with a Middle East operator (Buzzmo) are notable contract wins. Several large contracts are in the pipeline, particularly in Mobile Entertainment and Gaming. Discussions ongoing for expanding footprint with Vodafone (e.g., tones business and gaming services) suggest potential new

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OnMobile Global LtdQ2 FY25Media

OnMobile Global Ltd Q2 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹56.1P/E: 33.8Market Cap: ₹588 CrSector: Media

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Yes

Order

N/A

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→Gaming revenue target: Grow from $16 million run rate to $24 million annually by March 2026, a 50% increase.
→Average gaming revenue for FY26 expected around $20 million.
→Gaming EBITDA margins aimed to reach 25% within the next 12 to 18 months.
→Traditional Mobile Entertainment business targets conservative 5% year-on-year growth for FY26, after a 13% Q-o-Q growth in Q1.
→Traditional business EBITDA margin expected between 15% to 18%, potentially rising to 20%-25% with growth.
→Overall revenue growth guided with focus on profitable scaling and monetization of gaming platform and mobile entertainment solutions.
→New large licensing deals (e.g., 5-year Buzzmo deal) expected to add recurring revenue streams contributing to growth.
→Cautious approach by prioritizing quality of revenue and operational discipline over speed to optimize profitability.

Margin guidance

Category 3

→OnMobile targets around 25% EBITDA margin for the Gaming segment within the next 12 to 18 months as growth becomes profitable.
→Gaming revenue is expected to grow from a current run rate of $16 million to $24 million annually by March 2026, reflecting 50% growth.
→The traditional Mobile Entertainment business aims for a conservative 5% growth annually, with potential upside.
→Traditional business EBITDA margin target is 15% to 18%, possibly increasing to 20%-25% with sustained growth.
→The company emphasizes profitable growth and positive operating cash flows each quarter going forward.
→Long-term vision includes reaching $300 million in revenues within 3 to 5 years, driven by gaming and strategic operator partnerships.
→Profit after tax improved significantly in Q1 FY26 with an expanding gross margin and disciplined cost management.

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Fundraise plans

Yes

→Currently, there are no immediate plans to raise capital for the Gaming business as it is funded by its own operations.
→Earlier intentions to raise money in the U.S. for Gaming have been complicated by tax and revenue structure considerations.
→Fundraising, if needed, would most likely occur through OnMobile Global Limited in India rather than the U.S. subsidiary.
→A potential Qualified Institutional Placement (QIP) to finance acquisitions remains a possibility within the next 12 to 18 months, contingent on finding suitable profitable companies with synergies.
→Debt financing is challenging due to the company's presence in multiple countries with complex regulations, so equity is preferred for any capital raises.
→The company is focused on cash generation and monetization of assets like its Chingari investment before considering significant fundraising.

Order book

→The transcript does not explicitly mention the current or expected order book or pending orders in exact figures.
→However, Bikram Sherawat highlighted building a sales pipeline providing confidence for the coming year, indicating a healthy funnel of potential deals.
→New greenfield deployments and a 5-year license deal with a Middle East operator (Buzzmo) are notable contract wins.
→Several large contracts are in the pipeline, particularly in Mobile Entertainment and Gaming.
→Discussions ongoing for expanding footprint with Vodafone (e.g., tones business and gaming services) suggest potential new orders.
→The management’s focus remains on securing multi-year recurring revenue streams through licensing and growing the order book prudently.
→Emphasis on quality and profitability over speed means order intake might be gradual but focused on sustainable growth.

Capex plans

Yes

→The company has stopped capitalizing gaming development costs this year; all development expenses are now expensed in the P&L, indicating no major current CapEx on gaming infrastructure.
→Focus is on profitable growth and cash flow generation rather than heavy capital expenditures.
→No planned venture capital-style startup investments; M&A strategy focuses on acquiring established, profitable companies with synergies rather than startups.
→QIP (Qualified Institutional Placement) is on hold but remains a potential means to raise equity capital for future acquisitions or CapEx.
→Existing assets like the Chingari investment (INR 60 crores) are targeted for monetization to boost cash.
→Overall, the emphasis is on disciplined capital allocation with potential future strategic acquisitions funded through equity, not debt.

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