Protean eGov Technologies (544021) Investor Update summary

Landmark contract and project scope

• Secured a contract worth INR 1,370 crore (including GST) from UIDAI to establish and operate Aadhaar Seva Kendra in 188 districts across India.

• Centers will handle Aadhaar enrollment, biometric and demographic updates, and related services.

• The engagement is for six years, with potential for expansion to additional districts.

• Protean will be responsible for setup, daily operations, and secure delivery of services.

• The project positions Protean as a key player in scaling national identity infrastructure.

Revenue model and financial impact

• Revenue will be recognized on a per-transaction basis, with income spread evenly over the contract period, subject to inflation adjustments every two years.

• Minimum revenue commitment is included, but actual revenue can exceed INR 1,370 crore if transaction volumes are higher.

• Expected annual revenue contribution is INR 180–190 crore, with the business being EBITDA accretive.

• Payment will be received monthly from UIDAI based on transaction volumes, minimizing working capital requirements.

• Pricing per transaction is regulated and fixed, with periodic inflation-linked increases.

Operational details and competitive landscape

• Protean will set up exclusive Aadhaar centers; existing PAN service centers cannot be repurposed.

• Major cost elements include real estate, hardware, and manpower for the centers.

• Printing of Aadhaar cards for new issuances or rectifications is included in the scope.

• Two companies, Protean and BLS International, have been awarded the mandate, with district-wise exclusive allocations.

• Protean has been allocated 188 out of 471 total districts, with the remainder assigned to BLS International.