Summary
Protean eGov Technologies Limited - Q3 FY2026 Earnings Call Summary Thursday, February 12, 2026 2:00 PM
Event Participants
Executives 5 Maulesh Kantharia, Pushpa Mani, Rakesh Dosi, Sandeep Mantri, Suresh Sethi
Analysts 6 Avikshit Vijay, Bajrang Bafna, Divij Punjabi, Guru Prasad, Kunal Bhatia, Rohan M
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue from Operations | ₹229 crores | +13% YoY; Driven by tax services gains and 11% contribution from new businesses. |
| EBITDA | ₹46 crores | +34% YoY; Reflects higher operational efficiencies. |
| EBITDA Margin | 19% | +335 bps YoY; Expansion driven by scale and cost optimization. |
| Adjusted PAT | ₹26 crores | 10.9% margin; Adjusted for ₹4 crore one-time statutory impact from New Labour Code. |
| Cash & Cash Equivalents | ~₹800 crores | Robust liquidity with zero debt; intended for working capital and inorganic growth. |
| PAN Card Issuance | 1.1 crore units | 59% market share; benefited from Aadhaar-PAN linkage deadline extension. |
| Pension Onboarding | 35 lakh subscribers | Captured 94% of incremental market share; 98% cumulative share across NPS/APY/UPS. |
| Order Book (Unexecuted) | ₹1,600 crores | Nearly 2x annual revenue; anchored in digital identity and open digital ecosystems. |
Geographic & Segment Commentary
- Tax Services: Maintained dominant market leadership with a 59% market share in PAN issuances. The segment benefited from the extension of the Aadhaar-PAN linkage deadline, driving higher compliance and formalization.
- Pension Services (CRA): Captured 94% of incremental market share despite a regulatory shift toward an AUM-linked charge structure. Management expects this restructured pricing to drive long-term growth as non-government pension penetration expands.
- Identity Services: Strong volume growth was recorded in eKYC and Aadhaar Authentication. While revenue was impacted by slab-based pricing and competition, the focus remains on scaling volumes and high-value offerings.
- International Business: Secured a strategic ₹25 crore mandate for Ethiopia’s agricultural Digital Public Infrastructure (DPI). This marks the fourth international mandate across three markets, focusing on identity and land record registries.
Company-Specific & Strategic Commentary
- Aadhaar Seva Kendras (ASK): Operationalized 34 centers across 19 States/UTs as part of a 190-center mandate. Full rollout by September 2026 is expected to add ₹200 crores to annual revenue.
- New Business Contribution: Revenue share from new initiatives rose to 11% in 9M FY26 from 4% in FY25. Focus areas include insurance (Bima Sugam), health, and agriculture (DPI).
- Strategic Investment: Acquired a 4.95% stake in NSDL Payments Bank to co-create certified digital banking technologies. The partnership aims to leverage the bank’s national footprint for last-mile financial inclusion.
- Cloud Infrastructure: Positioned as a “sovereign cloud” provider for sensitive government data. The strategy involves embedding cloud layers into large turnkey projects to enhance security and scalability.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue Run Rate | ₹270 - 280 crores / quarter | Target for Q3/Q4 FY27 following full 190-center ASK rollout. |
| New Business Revenue Mix | 25% of total revenue | Expected within 2-3 years (up from current 11-12%). |
| Core Business Growth | 8% to 10% YoY | Steady growth outlook for Tax, CRA, and foundational Identity segments. |
| EBITDA Margin Expansion | +300 to 400 bps | Long-term target as operating leverage kicks in from new business scale. |
Risks & Constraints
| Risk | Context |
|---|---|
| Regulatory Pricing Shifts | PFRDA’s move to AUM-linked pricing and Identity segment slab-based pricing created short-term revenue volatility. Management views this as a transition phase toward higher penetration. |
| Executive Transitions | Recent senior management exits due to retirement and restructuring raised continuity concerns. Management states a robust succession plan is in place with leaders for all new verticals. |
| Project Lumpiness | Turnkey RFP projects (CERSAI, Bima Sugam) involve milestone-based revenue recognition. This leads to quarterly fluctuations compared to steady annuity-style income. |
Q&A Highlights
Business Momentum & ASK Rollout
- Question: What is the expected run rate with the new order pipeline? (Bajrang Bafna)
- Answer: Current revenue run rate is ₹230-250 crores. Once the 190 Aadhaar Seva Kendras are fully operational by September, quarterly revenue should increase by ₹40-50 crores to reach ₹270-280 crores. (Sandeep Mantri)
Pension (CRA) Pricing Restructuring
- Question: Why did subscriber additions seem to fall, and what is the impact of pricing changes? (Rohan M)
- Answer: Subscriber additions remain healthy at 35-40 lakhs per quarter. PFRDA restructured pricing to be AUM-linked for the private sector to incentivize penetration. While short-term revenue may be flattish, long-term prospects are stronger as AUM grows. (Sandeep Mantri/Suresh Sethi)
Strategic Investment in NSDL Payments Bank
- Question: What is the rationale for investing in a low-margin payments bank? (Avikshit Vijay)
- Answer: It allows Protean to co-create and certify bank-grade technologies for the BFSI sector. It also aligns their digital infrastructure with the bank’s physical distribution for last-mile reach. (Suresh Sethi)
International Expansion
- Question: How is the international pipeline looking? (Guru Prasad)
- Answer: Active engagements are ongoing in Africa, the Middle East, and SE Asia. The Ethiopia agriculture DPI win (₹25 crores) validates the strategy of exporting India’s DPI model. (Suresh Sethi)
Key Takeaway
Protean eGov Technologies delivered a resilient Q3 FY26, characterized by 13% YoY revenue growth and a significant 335 bps expansion in EBITDA margins to 19%. The company is successfully diversifying its revenue mix, with new businesses now contributing 11% of turnover, up from 4% last year. Strategic highlights include the operationalization of the first phase of Aadhaar Seva Kendras and a landmark ₹25 crore international win in Ethiopia. While core segments like CRA face temporary pricing adjustments due to regulatory shifts toward AUM-linked models, the unexecuted order book of ₹1,600 crores provides strong visibility. Management expects the full rollout of the 190-center ASK mandate by September 2026 to significantly elevate the quarterly revenue run rate. Despite senior leadership transitions, the company remains focused on scaling its “sovereign cloud” and high-margin SaaS products to drive long-term profitability.
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