Summary
Radiant Cash Management Services Limited - Q3 FY26 Earnings Call Summary Thursday, February 12, 2026, 11:00 AM IST
Event Participants
Executives 5 Alexander David, Colonel David Devasahayam, Muthuraman, Nithin Tom, T.V. Venkataramanan
Analysts 4 Abhishek Chawla, Chandramouli Jagannathan, Dilip Kumar Sahu, Pryan Shrivastav
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Consolidated Revenue | ₹126 crores | +6.9% YoY and +18.3% QoQ; growth driven primarily by Fintech subsidiary expansion. |
| Consolidated EBITDA Margin | 13.9% | +80 bps QoQ; improved due to Acemoney turning profitable and stringent cost controls. |
| Cash Volume Handled | ₹0.44 trillion | Flat YoY; digital transition in Tier 1/2 cities offsetting growth in other regions. |
| Direct Business Share | 17% | +510 bps YoY from 11.9%; reflects successful shift toward direct-to-retailer empanelment. |
| Total Service Points | (2,634) net drop | 9M reduction due to loss of 3 Railway regions, one e-com client acquisition, and MFI sector exits. |
| Acemoney Revenue | ₹21.26 crores | +89% YoY; driven by 1 lakh POS machine installations and ₹1,000 crore transaction volume. |
| Acemoney EBITDA | ₹3.4 crores | Turned positive after two quarters of losses caused by a one-time vendor displacement shock. |
Geographic & Segment Commentary
- Retail Cash Management (RCM): Revenue remained largely flat as growth in organized retail was offset by losses in Railways and e-commerce logistics. Management noted pricing pressure on low-volume points, which they are addressing through cost realignment of cash executives and vans.
- Radiant Acemoney (Fintech): Achieved a milestone of 1 lakh POS machines with a focus shifting from hardware deployment to high-margin transaction volumes. Operations are concentrated in UP, West Bengal, Assam, and Odisha, targeting underserved Tier 3+ populations.
- Radiant Valuables Logistics (DBJ): Revenue reached ₹2 crore this quarter, growing 30% QoQ but remains below breakeven due to high fixed costs. Management utilizes existing RCM infrastructure (vaults/vans) to scale this segment, focusing on the movement of gold and jewelry.
Company-Specific & Strategic Commentary
- PSU Bank Mandate: Secured a large dedicated cash van contract from a PSU bank (IDBI) starting April 1, 2026, expected to add ₹20 crore in incremental annual revenue.
- Direct-to-Merchant Shift: Increased direct business to 17% of standalone revenue to bypass bank-led pricing pressures and tap into the 67% of banking driven by nationalized sectors.
- Digital Transition: Applied for a Payment Aggregator license in November 2025 to facilitate digital growth in the extreme hinterland using existing physical infrastructure.
- Operational Efficiency: Implementing a Business Correspondent (BC) model and “Insta Credit” to provide alternative cash collection solutions and reduce the cost of servicing low-volume points.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| DBJ Breakeven | Q1 - Q2 FY27 | Management noted a one-quarter slippage from previous guidance due to high fixed costs. |
| Acemoney Revenue | Likely QoQ drop in Q4 | Shift in focus from one-time POS sales to recurring transaction revenue will lead to a temporary top-line dip. |
| Acemoney Debt | Reduction by June 2026 | Borrowings expected to normalize following the receipt of stalled RBI subsidies/receivables. |
| FY26 PAT | Potential YoY drop | Higher costs from new initiatives (RVL/Acemoney) may lead to a lower annual PAT compared to the previous year. |
Risks & Constraints
| Risk | Context |
|---|---|
| Pricing Pressure | Banks and competitors are squeezing margins on low-volume points; management is forced to choose between volume and profitability. |
| Digital Displacement | Increased digitization in Tier 1 and Tier 2 cities is slowing the growth of cash throughput despite an increase in the number of service points. |
| High Fixed Costs | New segments like Diamond, Bullion & Jewellery (DBJ) are growing top-line at 30% QoQ but continue to drag consolidated margins due to heavy infrastructure costs. |
Q&A Highlights
Core Business & Pricing
- Question: Why is there pricing pressure in a restrictive industry with only 3 major players? (Dilip Kumar Sahu)
- Answer: Pressure occurs at the margins for low-volume points or very large outlet deals where banks seek competitive quotes; margin restoration depends on restoring mid-to-high teen revenue growth to leverage fixed costs. (Muthuraman)
PSU Bank Win
- Question: Will the ₹35 crore bank mandate be incremental in the next calendar year? (Abhishek Chawla)
- Answer: The contract starts April 2026; roughly ₹15 crore is renewal and ₹20 crore is strictly additional annual revenue that will impact FY27. (Venkataramanan/Devasahayam)
Fintech Liquidity
- Question: Why does the Fintech subsidiary require constant corporate guarantees and loans? (Abhishek Chawla)
- Answer: There is a delay in receiving subsidies from the RBI; 95% of dues are sovereign-guaranteed and expected by June 2026, which will bring debt to manageable levels. (Venkataramanan)
Jewelry Logistics Pricing
- Question: Do rising gold prices benefit the company’s revenue? (Abhishek Chawla)
- Answer: No; pricing is based on the weight (per gram) and volume of the consignment, not the value of the precious metal, though stable markets encourage more movement. (Alexander David/Muthuraman)
Key Takeaway
Radiant Cash Management reported a mixed Q3 FY26, with consolidated revenue growth of 6.9% YoY to ₹126 crores, largely buoyed by the rapid scaling of its Fintech subsidiary, Acemoney, which turned EBITDA positive this quarter. While the core Retail Cash Management (RCM) business faced headwinds from the loss of Railway segments and pricing pressures, the company successfully grew its high-margin Direct Business share to 17% and secured a significant PSU bank mandate starting FY27. Management is pivoting from POS hardware sales to transaction-based annuity revenue in Fintech and expects its jewelry logistics arm to break even within two quarters. Looking ahead, the company is focused on cost realignment and leveraging its Tier 3+ infrastructure to counter digital displacement, though FY26 PAT may see a marginal decline due to the investment phase of new verticals. Forward momentum relies on the execution of the new ₹20 crore annual bank contract and stabilizing core RCM margins.
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