Protean eGov Technologies (544021) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 revenue from operations was INR 202 crore, with a 1% YoY decline due to high base effects in identity services, while tax and pension services grew 3% and 12% YoY, respectively.

• Identity services declined 17% YoY due to last year's Aadhaar-PAN linkage spike; investments continue in value-added products.

• Secured the INR 161 crore CKYC Records Registry 2.0 mandate and launched ONDC-enabled e-commerce with Prasar Bharati.

• Maintains leadership in PAN issuance (up to 64% market share) and NPS/APY (97% market share), onboarding 3.05 million new pension subscribers.

• Brand campaign launched with Pankaj Tripathi as ambassador; received global recognition for annual and ESG reporting.

Financial highlights

• Q3 FY25 revenue from operations was INR 202 crore, down 1% YoY and 8% sequentially; 9MFY25 revenue was INR 619 crore, down 6% YoY.

• Adjusted operating profit for Q3 FY25 was INR 21 crore, with an operating margin of 10.3% (up 8 bps YoY).

• Profit after tax for Q3 FY25 was INR 23 crore, up 44% YoY; normalized PAT margin improved to 10.4% (up 89 bps YoY).

• EPS increased 50.6% YoY to INR 5.66.

• Cash and cash equivalents exceeded INR 750 crore, with zero debt.

Outlook and guidance

• Optimism for future growth driven by rising market share in tax and pension services, and new business lines (data stack, cloud, ODE, international) expected to contribute more in coming quarters.

• No specific forward-looking revenue or margin guidance provided, but management expects steady quarter-on-quarter uptick from new businesses.

• Ongoing investments in new products and strategic orders from private and government sectors.