Protean eGov Technologies (544021) Q2 25/26 earnings summary

Executive summary

• Revenue from operations grew 19% quarter-on-quarter and 14% year-on-year, driven by CRA services and new business lines.

• EBITDA reached ₹44 crore (16.6% margin), and PAT was ₹24 crore (9% margin) for Q2 FY26.

• New businesses contributed 12% to H1 operating revenue, up from 4% last year.

• Order book stands at ₹1,600 crore, nearly twice the annual revenue, with a major ₹1,370 crore Aadhaar Seva Kendra mandate.

• Strong balance sheet with zero debt and over ₹800 crore in cash and equivalents.

Financial highlights

• Q2 FY26 revenue: ₹251 crore, up 19% QoQ and 14% YoY.

• EBITDA: ₹44 crore (16.6% margin), down 3% YoY; PAT: ₹24 crore (9% margin), down 15% YoY.

• H1 FY26 revenue from operations: ₹461 crore, up 11% YoY; H1 EBITDA: ₹89 crore, up 12% YoY.

• Tech services revenue: ₹107 crore, up 8% sequentially; CRA business revenue: ₹78 crore, up 3% QoQ and 12% YoY.

• Identity services revenue: ₹22 crore, down 6% QoQ and YoY due to price rationalization.

Outlook and guidance

• New businesses expected to contribute 25% of revenue in 2–3 years, with core businesses growing 8–10%.

• Margin improvement anticipated as new business revenues scale.

• Order book provides strong growth visibility, with Aadhaar Seva Kendra project expected to generate ₹200 crore annual recurring revenue once fully operational.

• Focus on innovation, financial inclusion, and digitalization to drive long-term value.