Protean eGov Technologies (544021) Q2 26/27 earnings summary

Executive summary

• Q2 consolidated revenue was ₹270.78 crore, up 8% YoY; PAT was ₹16.40 crore, down from ₹23.86 crore.

• Excluding ₹10 crore of RFP implementation costs, Q2 EBITDA was ₹53 crore, up 22% YoY; reported EBITDA was ₹43 crore.

• CERSAI CKYCRR 2.0 and Aadhaar Seva Kendra mandates neared full rollout, supporting expectations for improved operating leverage as implementation investments recede.

• Priorities include strengthening core DPI, bundling enterprise solutions and exporting Indian DPI capabilities through partnerships and a capital-light international approach.

Financial highlights

• Q2 revenue from operations was ₹270.78 crore, up 8% YoY and QoQ; H1 revenue was ₹521.74 crore, up from ₹461.34 crore YoY.

• Q2 total income was ₹290 crore, up 9% YoY; H1 total income was ₹556 crore, up 10% YoY.

• Reported EBITDA was ₹43 crore in Q2 and ₹71 crore in H1, versus ₹44 crore and ₹89 crore a year earlier.

• Reported PAT was ₹16.40 crore in Q2 and ₹22.26 crore in H1, versus ₹23.86 crore and ₹47.71 crore a year earlier.

• Excluding RFP investment costs, Q2 EBITDA was ₹53 crore, up 22% YoY; H1 adjusted EBITDA was ₹99 crore, up 12% YoY.

Outlook and guidance

• Management expects reported margins to move closer to the underlying run rate as major project investment recedes; ASK revenue is expected to exceed related costs over the next couple of quarters.

• FY27 tax-service growth is expected broadly in line with H1, subject to H2 volumes; FY28 visibility depends on PAN 2.0 implementation.

• Recurring revenue from new initiatives is expected to rise QoQ, while project-based revenue may remain similar or grow more slowly; quarterly comparisons may be lumpy.

• Priorities include growing core segments, delivering CKYCRR 2.0, Bima Sugam, ASK and AgriStack mandates, and scaling AI-enabled bundles, curated APIs and DPI-in-a-Box deployments.

• No numerical long-term margin or growth guidance was given; enterprise bundling and international business are expected to support margins as execution scales.