Summary
Veefin Solutions Limited - Q3 FY 2026 Earnings Call Summary Tuesday, January 27, 2026 4:00 PM IST
Event Participants
Executives 3 Gautam Udani (COO), Payal Maisheri (CFO), Raja Debnath (MD)
Analysts 8 Ankit Narshana, Arnab Bhattacharjee, Ashu Raj, Bharath Reddy, Darshil Jhaveri, Himanshu Rathore, Hitaindra Pradhan, Kushal Kasliwal
Financials & KPIs (Consolidated)
| Metric | Reported | Commentary |
|---|---|---|
| Revenue from Operations (Q3) | ₹104 crores | Strong growth matching H1 performance; driven by organic scale and full impact of acquisitions. |
| Revenue from Operations (9M) | ₹214 crores | 9M total split between Products (₹82.4 cr) and Services (₹131.3 cr). |
| EBITDA Margin (Standalone) | 52% | Core Supply Chain Finance (SCF) business continues to operate at high margins on 9M YTD basis. |
| EBITDA Margin (Consolidated) | 19.95% | Lower than standalone due to the inclusion of lower-margin service businesses. |
| PAT Margin (Consolidated) | 7.75% | Mixed-driven compression; management expects expansion as new IP-led products monetize. |
| PAT (9M Consolidated) | ₹16.58 crores* | Absolute profit matching last FY; absolute profit pools expanding despite margin percentages. |
| Order Pipeline | $61 million | Includes 50 enterprise opportunities; 78% of pipeline stems from non-SCF products. |
*Derived from PAT margin/Revenue provided in transcript.
Geographic & Segment Commentary
- India & South Asia: This region remains the primary driver, accounting for 42% of the qualified deal pipeline, supported by the national rollout of the PSB Xchange platform.
- Southeast Asia: Contributes 36% of the pipeline, reflecting strong regional demand for digital transaction banking and supply chain finance solutions.
- GCC & Africa: Represents the remaining 22% of the pipeline; management noted growing traction in these markets as they pursue international growth ambitions.
- Product vs. Services: Services contribute ₹131.3 crores (61%) to revenue but at lower margins; Products (SCF, CMS, LOS) contribute ₹82.4 crores (39%) with higher structural profitability.
Company-Specific & Strategic Commentary
- Product Diversification: Moved from a single-product (SCF) company to a “full-stack” digital banking partner; 78% of the $61M pipeline is now in non-SCF areas like Cash Management (CMS) and Loan Management (LMS).
- PSB Xchange Momentum: Transitioned from onboarding to live activity with ₹4,000 crores in approved limits across 19 anchor corporates and ₹12,000 crores in total limit requests.
- Operational Readiness: Established 26 physical locations across India with dedicated field staff to support the “phygital” execution of the PSB Xchange marketplace.
- Technology Architecture: All new products are built on microservices-based architecture with embedded AI, aiming to replace legacy banking systems.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue/EBITDA | Maintain H1 Guidance | Management confident in meeting or surpassing previously stated targets due to strong Q3 execution. |
| Product Margins | 40% - 45% (Steady State) | Expected EBITDA range for mature non-SCF products (CMS, Trade, LMS) sold to banks. |
| PSB Xchange Margins | 28% - 33% | Targeted EBITDA range for the marketplace business once fully scaled. |
| Amalgamation | Effective April 1, 2026 | Scheme currently with SEBI (NOC awaited) before moving to NCLT for final approval. |
Risks & Constraints
| Risk | Context |
|---|---|
| Revenue Lag | Enterprise deals typically take 9-18 months from signing to hit the P&L due to complex bank integrations and implementation cycles. |
| Margin Dilution | The consolidation of service-heavy entities currently masks the high profitability of the core IP business, resulting in lower consolidated margins. |
| Investment Phase Losses | Several subsidiaries housing new products like PSB Xchange are currently loss-making as they remain in the product build-out and heavy investment phase. |
Q&A Highlights
PSB Xchange Revenue Model
- Question: What is the commission and revenue structure for the PSB Xchange platform? (Hitaindra Pradhan)
- Answer: Revenue ranges from 30 bps to 65 bps of AUM depending on services used (sourcing, tech, or onboarding). If business is sourced via partners, 10-20 bps is shared with them. (Raja Debnath)
Non-SCF Product Margins
- Question: How does Cash Management differentiate from competitors like Zaggle given its low margins? (Himanshu Rathore)
- Answer: Veefin sells enterprise-grade software to banks, not corporates; therefore, it commands 45-50% margins, unlike corporate-facing fintechs. (Raja Debnath)
Pipeline Conversion
- Question: How should we model the $61M pipeline into future revenues? (Kushal Kasliwal)
- Answer: Avoid simple percentage modeling; transaction banking has a 9-18 month lag post-signing before recurring revenue begins. (Raja Debnath)
Strategic Acquisition
- Question: What was the rationale for acquiring White Rivers Media? (Shubham)
- Answer: It was a strategic investment in a company heading for a mainboard IPO (DRHP in June/July) that also provides digital content capabilities for BFSI clients. (Raja Debnath)
Key Takeaway
Veefin Solutions demonstrated a significant pivot toward becoming a diversified transaction banking technology provider in Q3 FY2026. The company reported consolidated revenue of ₹104 crores for the quarter, bolstered by the full impact of recent acquisitions and organic growth in its core Supply Chain Finance (SCF) business. While consolidated PAT margins of 7.75% reflect the weight of lower-margin service entities, the standalone product business maintains a robust 52% EBITDA margin. A critical milestone was achieved with the PSB Xchange platform moving to live transactions, securing ₹4,000 crores in approved limits from 19 large corporates. With 78% of its $61 million pipeline now comprised of non-SCF products like Cash Management and Loan Management Systems, Veefin is positioned to reduce its dependence on SCF. Management remains confident in meeting its FY2026 guidance as it prepares for the legal amalgamation of entities by April 2026, marking a transition from investment to large-scale monetization.
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