Protean eGov Technologies (544021) Q3 25/26 earnings summary

Executive summary

• Revenue from operations grew 13% year-over-year to INR 229 crore in Q3 FY26, driven by tax, CRA, and identity services, with new business verticals and international expansion contributing significantly.

• New businesses contributed 11% of operating revenue in the first nine months, up from 4% last year, with diversification into agriculture, insurance, education, health, and a strategic mandate in Ethiopia.

• Completed the first phase of Aadhaar Seva Kendra rollout, operationalizing 34 centers across 19 states and UTs, generating recurring revenue.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, were approved by the Board on February 11, 2026.

• Ms. Preeti Mehta will complete her term as Independent Director effective February 14, 2026.

Financial highlights

• Q3FY26 revenue from operations: INR 229 crore (up 13% YoY); nine-month revenue: INR 690 crore (up 12% YoY); EBITDA: INR 46 crore (up 34% YoY); PAT (adjusted): INR 26 crore.

• Standalone profit after tax for Q3 FY26 was INR 21.66 crore; consolidated profit after tax was INR 22.50 crore.

• Cash and cash equivalents at INR 800 crore; zero debt.

• Other income for the quarter was INR 14 crore, consistent with normal treasury income levels.

• Other income for the nine months included a write-back of employee benefit provisions totaling INR 5.76 crore.

Outlook and guidance

• Revenue run rate expected to rise from INR 220–250 crore per quarter to INR 270–280 crore as Aadhaar Seva Kendra project scales up.

• ASK project to add INR 200 crore annually once fully rolled out by September.

• Regulatory reforms in the pension sector and ongoing digital adoption are expected to drive long-term growth.

• Existing core businesses expected to grow at 8–10% annually; new businesses targeted to contribute 25% of revenue in 2–3 years.

• EBITDA margin expansion of 300–400 basis points anticipated over the longer term.