Frog Innovations Ltd Business Update Concall Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Ankit Gupta - Bamboo Capital - Analyst : Yeah, thanks for the opportunity, sir, on the dash side, it seems that there has been a significant, slowdown, as you mentioned in the presentation also. So what is the current status, of the team, and how do you, see this segment panning out for us because last year, last, or the entire growth of the company came from this segment. So how are we looking at this segment, for this financial year.

Question: Ankit Gupta - Bamboo Capital - Analyst : Okay, so you expect like in the current, H1, how much was the contribution from that.

Question: Ankit Gupta - Bamboo Capital - Analyst : Okay. So, and we expect, any, anything to come, in terms of revenue for this in this financial year in the second half.

Question: Ankit Gupta - Bamboo Capital - Analyst : Okay, and last year Q3 was a very big quarter for us, and second half was almost, INR130crore, INR140crore kind of revenue that we had to record in the second half. So given how things are currently, how are we looking at, second half and for the full financial year, how are things looking at?

Question: Ankit Gupta - Bamboo Capital - Analyst : Okay, so this year we should see substantial revenue, the growth on a why this is, let's say last year we ended around 220 growth kind of revenue. So this year we should be looking at, somewhere around 110, 120 growth. Is that the right.

Question: Ankit Gupta - Bamboo Capital - Analyst : Okay. Will it be like almost, like, what are, we targeting 1,000 --

Question: Ankit Gupta - Bamboo Capital - Analyst : Sure, and on, the, on the STQC certification for the -- for our CCTV cameras, so where are we in that and, how are like how are we looking to grow the sales of this business, once we get the STQC certification.

Question: Ankit Gupta - Bamboo Capital - Analyst : Okay, then, for, next year, how do you see the growth planning out, like, what, which all segments will drive the growth for us next year.

Question: Ankit Gupta - Bamboo Capital - Analyst : Yeah. Okay, thank you and wish you all the best.

Question: Gunit Singh - Counter Cyclical Investments Pvt Ltd - Analyst : Hi sir, so we were -- I mean our outlook for this year was to have a healthy growth, in double-digits for 20%-30% as per our discussion in the previous earnings calls. So I just would like to understand, did we not foresee, the situation or were we overoptimistic? So I mean what exactly went wrong with that? I mean. Optimism. So our results actually instead of double-digit growth, we saw double-digit growth.

Question: Gunit Singh - Counter Cyclical Investments Pvt Ltd - Analyst : What percentage revenues we depending on from Jio and Airtel is and what percentage from that.

Question: Gunit Singh - Counter Cyclical Investments Pvt Ltd - Analyst : So as per our current conversation, is the situation the same or worse?

Question: Gunit Singh - Counter Cyclical Investments Pvt Ltd - Analyst : Alright, so what about other segments? Are we trying to diversify, our revenue streams so we reduce our dependencies and what is the outlook for those for the current year? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 12, 2025 / 11:00AM, FROG.NS - Frog Innovations Ltd Business Update Concall

Question: Gunit Singh - Counter Cyclical Investments Pvt Ltd - Analyst : Alright, so, I mean in terms of next year from this, smart AI -- smart, the video detection, a platform and also in terms of EMS. So I mean for EMS what kind of, facility do we have? Or I mean what stage are we in and when can we start monetizing it and same, for the smart video detection.

Question: Gunit Singh - Counter Cyclical Investments Pvt Ltd - Analyst : So can you share the product, profile from the EMS and the margin profile what products will come out and, also the, revenue potential from that Ems. And I when can it be ramp up?

Question: Gunit Singh - Counter Cyclical Investments Pvt Ltd - Analyst : Alright, so basically, we would be doing contract manufacturing for any opportunity we see and I mean just to understand like, what kind of minimum revenue peak avenues can like in the conservative scenario from this --

Question: Gunit Singh - Counter Cyclical Investments Pvt Ltd - Analyst : Okay, and in the smart AI space, the video detection, currently, I mean, what kind of a market are we looking at? Are we looking at, B2B clients or like directly installing them in like homes and offices and, I mean, say. Just look at the direct consume space. So I want to understand, will it be like some, this, CP plus CCTV camera with smart detection or. Would we be, targeting big facilities like airports, or what is the strategy there.

Question: Gunit Singh - Counter Cyclical Investments Pvt Ltd - Analyst : Alright, got it. So basically we are aiming at only software and not the hardware.

Question: Gunit Singh - Counter Cyclical Investments Pvt Ltd - Analyst : Got it. So I mean what kind of discussions do we already have some old pipeline or mean in terms of acquiring clients. So just to get an idea of I mean market size and how we can ramp up in the next financial year.

Question: Gunit Singh - Counter Cyclical Investments Pvt Ltd - Analyst : Okay, so can this also be used in, manufacturing facilities, for example, to detect, say if there are five --, if there are 10 products coming out of a manufacturing line, so can our AI tool camera be used to say, detect, some, say one out of ten products that is not meeting the, physical appearance guideline or something like that? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 12, 2025 / 11:00AM, FROG.NS - Frog Innovations Ltd Business Update Concall

Question: Gunit Singh - Counter Cyclical Investments Pvt Ltd - Analyst : Got it, So basically it can be scaled across different use cases. So, this error detection and manufacturing lines, that's also one of, I mean, so currently in most manufacturing lines error detection or, detecting output that is subpar rather than manually, but I've heard that there's a lot of R&D going into automate this. So maybe you can look into that. But anyway, thank you very much.

Question: Siddhant Singh - Green Portfolio - Analyst : Hello sir. So my first question is exactly like what is our order book, product wise as of now today.

Question: Siddhant Singh - Green Portfolio - Analyst : Okay, so like INR 50crores- INR 52 crores only?

Question: Siddhant Singh - Green Portfolio - Analyst : Yeah, that was at the end of H1, so we have won any order in the last one or two months.

Question: Siddhant Singh - Green Portfolio - Analyst : Okay, so, on CCTV, manufacturing, like what is our manufacturing capacity like units per day, how much, we can manufacture right now.

Question: Siddhant Singh - Green Portfolio - Analyst : How much CapEx will it be required and how much contribution and manufactured with that state.

Question: Siddhant Singh - Green Portfolio - Analyst : Okay. And the extra, okay, with INR 10 crores we can manufacture 500 extra.

Question: Siddhant Singh - Green Portfolio - Analyst : Was 5,000 -- 5,000, and so what will be the average realization like what will be our selling price?

Question: Siddhant Singh - Green Portfolio - Analyst : Like we could be focusing on some type of maybe really see what we are going to like manufacture and sell. So what is our focus.

Question: Siddhant Singh - Green Portfolio - Analyst : Okay, so sir, you talked about we will be going to manufacture cameras in coming like next quarter, without STQC certificate also. So whether we have any pilot project or any order or any order in pipeline, any talking with the customers like any visibility on that?

Question: Siddhant Singh - Green Portfolio - Analyst : Okay, so like we are expecting a realization from next, FY only FY 27.

Question: Siddhant Singh - Green Portfolio - Analyst : Okay, like, can you guide some ballpark number how much we are expecting from AI analytics next quarter?

Question: Siddhant Singh - Green Portfolio - Analyst : Okay. Sir, also, like we are targeting INR500 crore sale by FY28, so how much new CapEx we will be requiring for achieving that or our current line -- like current manufacturing facility can do that?

Question: Siddhant Singh - Green Portfolio - Analyst : Okay, INR15 crores to INR20 crores.Okay. And sir, like, about PLI, like what will be our targeted revenue for FY27 or -- '26 or '27 to claim PLI incentives?

Question: Siddhant Singh - Green Portfolio - Analyst : Okay. Like in last year, we did INR220 crores and you were guiding 30% incremental growth for FY26. That would be around INR280 crores and we will be far behind that number. So we are targeting in FY27, let's say, 20%, 30% more than '26 guidance? Like, above INR350 crores for FY27?

Question: Siddhant Singh - Green Portfolio - Analyst : Yeah. Because if we are targeting like about INR500 crores, we would be like growing around 50%, 60% guidance for FY27 and 28 to achieve that number.

Question: Siddhant Singh - Green Portfolio - Analyst : And can you quantify a little bit of order for pipeline like, how much order we can expect in the -- let's say, in next 6 months or 12 months?

Question: Siddhant Singh - Green Portfolio - Analyst : Okay. And yeah, so for AI, like AI analytics, we are partnering with someone or we are like developing software tools in-house? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 12, 2025 / 11:00AM, FROG.NS - Frog Innovations Ltd Business Update Concall

Question: Rudraksh Raheja - iThought Financial - Analyst : Thank you for the opportunity, sir. Am I audible?

Question: Rudraksh Raheja - iThought Financial - Analyst : So could you provide more details on this AI tools business that we have recently entered? Like, who are the other players giving this kind of a service and what kind of market size that we expect from this business.

Question: Rudraksh Raheja - iThought Financial - Analyst : So are we targeting like private players in this or -- I'm trying to get better sense on the ground like what is happening in the business? Like, what's our go to market strategy. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 12, 2025 / 11:00AM, FROG.NS - Frog Innovations Ltd Business Update Concall

Question: Rudraksh Raheja - iThought Financial - Analyst : And sir, are there not any IT companies that are already providing this kind of a service? I know you said that Spurge and CP Plus, they are coming up with cameras itself, but IT companies, is anyone already here?

Question: Rudraksh Raheja - iThought Financial - Analyst : Got it. How much CapEx have you spent on developing this product?

Question: Rudraksh Raheja - iThought Financial - Analyst : So should we expect some increase in employee expenses or R&D expense going forward since this is a different sort of a business?

Question: Rudraksh Raheja - iThought Financial - Analyst : And sir, on the business model front for this, is it like a one-time sale or a subscription model kind of a thing? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 12, 2025 / 11:00AM, FROG.NS - Frog Innovations Ltd Business Update Concall

Question: Rudraksh Raheja - iThought Financial - Analyst : Got it. And sir, more clarity on this Get 5 bars business that we have recently added in the PPT also.

Question: Rudraksh Raheja - iThought Financial - Analyst : Got it. And sir, again, similar line of questioning, like is anybody else providing this kind of a service in the market? I wanted to check if there are any other players providing this kind of a service in the market.

Question: Rudraksh Raheja - iThought Financial - Analyst : So it's more of a consultation-based business where you suggest what would be the optimal way to get the best--?

Question: Rudraksh Raheja - iThought Financial - Analyst : We were providing IBS products earlier also, if I'm not wrong, so how does that align with what we are doing now? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 12, 2025 / 11:00AM, FROG.NS - Frog Innovations Ltd Business Update Concall

Question: Rudraksh Raheja - iThought Financial - Analyst : Got it, sir. Sir, we have mentioned defense sector in the PPT. So any updates on that front because I was -- my understanding was it was a bit slow to develop those kind of a products?

Question: Rudraksh Raheja - iThought Financial - Analyst : Understood. And sir, can you guide any number on this? Like what could be the scale of this kind of a business?

Question: Rudraksh Raheja - iThought Financial - Analyst : Yes.

Question: Rudraksh Raheja - iThought Financial - Analyst : Got it. Sir, on--?

Question: Prafull Rai - Aarjav Partners - Analyst : I have a few questions. One is on the DAS side, you said you have a decent win pipeline, as we speak. Can you quantify that in some sense? What is it -- what is the size of pipeline we have?

Question: Prafull Rai - Aarjav Partners - Analyst : And that is to be executed. Suppose you get a part of it also, what is the typical execution timeline for these orders?

Question: Prafull Rai - Aarjav Partners - Analyst : Okay. And generally, what has been our success rate like historically?

Question: Prafull Rai - Aarjav Partners - Analyst : Okay, that is one question. The second question is you are launching a lot of products, especially the AI tools for camera and for remote monitoring, and that's an interesting product. But how will you reach out to people? You see, it's a completely different channel. The product is intuitively very interesting, but how do you intend to market that? The market apparently is huge, but like how will you reach out?

Question: Prafull Rai - Aarjav Partners - Analyst : Thought under this camera approvals, which you had mentioned that we should get it by March. Earlier, we're planning to get it by October then December, then by March. What has changed? Is the goal posts changing because of some additional requirements we have to fulfill or where are we not able to get -- or government doesn't have the capacity to audit so many facilities which are coming up? Where is the problem?

Question: Prafull Rai - Aarjav Partners - Analyst : So as we speak, we are done with whatever solutions they had come with and we're waiting for their approval. Is that right?

Question: Prafull Rai - Aarjav Partners - Analyst : Okay. And when you say before March, what is the -- let's say, I'm sure you would have done the math in terms of how many days they come, this, that. But when you say before March, means what are the assumption for that? Like, can it get further delayed or can it happen by January also?

Question: Prafull Rai - Aarjav Partners - Analyst : Okay. And last question, you said you are getting into EMS services because you already have empty line so you can iterate a lot on that. You also said that you intend to get into smart meters, which is an outcome of having a base line in place. So when we talk of say two years down, you are saying INR500 crores kind of a revenue is what we're anticipating. If I just look at that number, what is in your mind a revenue composition of the company look like when we achieve that INR500 crore number?

Question: Prafull Rai - Aarjav Partners - Analyst : I will not hold you for that, but only if we should get your mind in terms of how you think about--?

Question: Prafull Rai - Aarjav Partners - Analyst : Okay. So basically, if I just conclude, we are having INR100 crore kind of a big pipeline. If you're able to get that before March, we'll execute that. We started the quarter with the order backlog of INR50 crores-odd. If things were as per plan, this first half of the setback before you're not committing for second half, we understand. But has there been improvement in the pipeline from where we were as we speak, or -- delay has happened, but like any sense you can

Question: Prafull Rai - Aarjav Partners - Analyst : Got it. But if you're able to get that, that's a very serious number. But if you're able to get on last year -- if you take last year's success rate, so then you would be sort of close to where you were.

Question: Prafull Rai - Aarjav Partners - Analyst : I think this is good. Thanks a lot, Konark. Thanks a lot for this, and best of luck.

Question: Rudraksh Raheja - iThought Financial - Analyst : Thank you again for the opportunity, sir. I wanted to ask like, how many of the Indian CCTV guys have already got the STQC approval? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 12, 2025 / 11:00AM, FROG.NS - Frog Innovations Ltd Business Update Concall

Question: Rudraksh Raheja - iThought Financial - Analyst : Understood, sir. And sir, if I'm recalling it correctly, we were hoping that we would first enter the tender business for this CCTV, right?

Question: Rudraksh Raheja - iThought Financial - Analyst : And since like six, seven players have already got the approval and certainly more would join the queue, so what kind of EBITDA margins can we expect from this kind of business?

Question: Rudraksh Raheja - iThought Financial - Analyst : That was my question. Can you quantify like what's the annual tender demand for this? I'm just wanting to understand from the demand side, like annual run rate, what kind of demand on the number of cameras that we are seeing?

Question: Rudraksh Raheja - iThought Financial - Analyst : Got it. But no idea on the volume or number side?