Veefin Solutions — Q3 FY26 earnings call

Call held 27 Jan 2026

Management summary

Veefin Solutions reported strong Q3 FY26 results with ₹104 crores in revenue, driven by robust execution and a diversified pipeline of USD 61 million, 78% of which is non-SCF. The PSB Xchange platform has become a live marketplace, approving ₹4,000 crores in limits. While standalone margins remain strong, consolidated margins are lower due to strategic investments in new products and service businesses, with revenue realization from new deals having a 9-18 month lag. The merger plan is advancing with regulatory approvals.

Highlights

  • Consolidated revenue for Q3 was ₹104 crores, showing strong growth for the quarter and nine-month period.

  • Qualified deal pipeline is robust at USD 61 million across 50 enterprise opportunities, with 78% from non-supply chain finance products, indicating diversification.

  • Standalone core product business operates at a strong EBITDA margin of 52% and PAT margin of 27% on a Y-T-D basis.

  • PSB Xchange has transitioned to a live operating marketplace, with ₹4,000 crores of limits approved across 19 anchor corporates.

  • The company's unified product architecture and modular platform approach resonates well with banks, enabling faster deployment and deeper client engagement.

Concerns

  • Consolidated EBITDA margin (19.95%) and PAT margin (7.75%) are lower than standalone due to the inclusion of lower-margin service businesses and new products in their growth phase.

  • Revenue realization from new deals in transaction banking has a 9-18 month lag post-signing due to integration and implementation efforts.

  • Some subsidiaries are currently loss-making as they are in the product build-out and investment phase, impacting overall profitability.

Key financials

2 periods

Headline

  • Revenue
    ₹104 Cr

9M YTD

  • Revenue
    ₹214 Cr
  • Consolidated EBITDA Margin
    19.9%
  • Consolidated PAT Margin
    7.8%
  • Standalone EBITDA Margin
    52%
  • Standalone PAT Margin
    27%

What they filed

Q1 FY27: revenue up 90.0%, net profit down 20.8% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY24Q4 FY24Q2 FY25Q4 FY25Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue9 16 19 60 110 +1122%104 +548%131 +591%114 +90%
EBITDA2 9 6 19 20 +900%21 +130%34 +472%22 +18%
Net profit1 6 4 12 8 +700%8 +30%16 +300%10 −21%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Product Revenue (9M YTD)
    ₹82.4 Cr Revenue
  • Service Revenue (9M YTD)
    ₹131.3 Cr Revenue
  • Product Revenue (Standalone Veefin + Organic Growth - 9M YTD)
    ₹53.85 Cr Revenue
  • Product Revenue (Standalone SCF - 9M YTD)
    ₹46.56 Cr Revenue
  • Product Revenue (PSB Xchange, Cash Management - 9M YTD)
    ₹8.3 Cr Revenue
  • EBITDA Margin for Products (Veefin, PSB Xchange, Cash Management, Trade Finance - 9M YTD)
    43.4% EBITDA Margin
  • EBITDA Margin for Standalone SCF
    52% EBITDA Margin
  • EBITDA Margin for PSB Xchange
    28% EBITDA Margin33% EBITDA Margin (Upper)
  • EBITDA Margin for Cash, Trade, Internet Banking, LOS, LMS (Steady State)
    40% EBITDA Margin45% EBITDA Margin (Upper)

Order book

high confidence

Total value

₹4,000 Cr

as of 2025-12-31 quantified

Inflow this quarter

₹4,000 Cr

Execution

revenue starts hitting your account 9 months to 18 months down the line.

Composition

Mix 2 geographies
  • India and South Asia 42%
  • Southeast Asia 36%

Share of order book by geography· partial disclosure (78% of the book)

Pipeline

deal pipeline tcv

qualified deal pipeline across 50 enterprise opportunities

PSB Xchange has transitioned from being an onboarding-led initiative to a live operating marketplace with real credit activity flowing through the platform.

Source: Prepared remarks

Capital allocation

high confidence
  • M&A White Rivers Media Solutions Acquisition · Integrated

    Great investment opportunity; one of India's largest independent digital content creation marketing companies; going for main board listing.

    This was a great case of an investment. So, it is a non-core product for us, but it was a great investment opportunity. The company is one of India's largest independent digital content creation marketing companies. We have seen the company closely over many years. The company was something where we felt there was an opportunity for us not just to add value to them, where it comes to their business by bringing in BFSI clients, but they had a large roster of clients. They are secondary in nature, but they had a large roster of clients where we thought we could bring those on to the PSB Xchange. Plus, that company is now going for listing. It is going for main board listing in this year itself. DRHP is supposed to be filed in June - July, and it is going for listing. So, it was a great investment opportunity that we saw.

Guidance & targets

Other

  • Overall Guidance Other · FY26 · High confidence Sticking to H1 guidance
    Whatever guidance we had given during H1, we are in line to meet those. So, no change in the guidance. So, we stick to that.

    — Raja Debnath

What to watch in Q4 FY26

PSB Xchange merger regulatory approvals

Next week, 10 days (for SEBI), then NCLT
Current BSE approval received, awaiting SEBI approval
Target SEBI approval received, NCLT process initiated

Why it matters

Key milestone for a significant corporate event that will impact the company's structure and financials.

The BSE approval has come in. We are at SEBI, over the next week, 10 days, we are expecting the approval. Post that, it goes for NCLT.

Risks & concerns

  • Lower consolidated margins due to service businesses and new product investments

    medium

    Consolidated EBITDA margin (19.95%) and PAT margin (7.75%) are lower than standalone due to service businesses and new products in growth/monetization phase.

    Management acknowledged

  • Long revenue realization cycle for new deals

    medium

    Revenue from new deals takes 9-18 months to hit accounts post-signing due to integration and implementation efforts.

    Management acknowledged

  • Loss-making subsidiaries in product build-out phase

    low

    Some subsidiaries, including those for PSB Xchange and other transaction banking products, are currently loss-making as they are in the investment and product build-out phase.

    Management acknowledged

Q&A highlights

8 direct
Business segment split and EBITDA margins for new products Direct
in the nine-month Y-T-D numbers, when I say Rs. 53.85 crores is the revenue, the EBITDA is Rs. 23.54 crores and PAT is Rs. 12.4 crores, okay, for the products. These are only Veefin, PSB Xchange, cash management and trade finance products. So, like you mentioned, currently our EBITDA margin for other products are a little low because it is in a growth phase, in a monetization phase. So, total EBITDA margin for all these products is currently 43.4%.

Clarifies the profitability profile of new product lines, explaining the difference between standalone and consolidated margins.

Asked by Kushal Kasliwal

Revenue conversion and flow from the deal pipeline Direct
First is that even after you sign a deal, the revenue starts hitting your account 9 months to 18 months down the line. Because once you sign a deal, post that there is an integration effort, there is an implementation effort. Then in more cases than not, the client starts building up their numbers.

Provides critical insight into the sales cycle and revenue recognition timeline for new deals, indicating a significant lag between deal wins and financial impact.

Asked by Kushal Kasliwal

Differentiation and long-term EBITDA margins for non-SCF cash management products Direct
The second point is that the EBITDA margins on the cash product would be very similar to the EBITDA margins on the supply chain finance product. Because these are all enterprise-grade products sold to bank... So, from an EBITDA perspective, as I said, all these products, whether it is internet banking, LMS, trade, supply chain, they will all be between 45% - 50%, 40% to 45% - 50% EBITDA. This is the range of EBITDA for these products.

Addresses investor concerns about potential margin dilution from new products and clarifies the expected long-term profitability of these offerings.

Asked by Himanshu Rathore

Utilization of funds from the preferential round Direct
international expansion is Rs. 10 crores, product development is Rs. 49.33 crores, sales and marketing is Rs. 12 crores, and general corporate purpose is Rs. 23 crores.

Provides transparency on how the recently raised capital is being deployed across strategic growth areas.

Asked by Bharath Reddy

Update on the merger plan Direct
The BSE approval has come in. We are at SEBI, over the next week, 10 days, we are expecting the approval. Post that, it goes for NCLT.

Gives a clear timeline and status update on a significant corporate event.

Asked by Uday

Rationale behind the White Rivers Media Solutions acquisition Direct
This was a great case of an investment. So, it is a non-core product for us, but it was a great investment opportunity. The company is one of India's largest independent digital content creation marketing companies... Plus, that company is now going for listing. It is going for main board listing in this year itself.

Explains the strategic and financial rationale for a non-core acquisition, highlighting potential value creation through a future listing.

Asked by Shubham

Major revenue drivers for Veefin apart from PSB Xchange Direct
But the core products of Veefin, which is your supply chain finance, and now going forward are other transaction banking products. They themselves have great opportunities because these are very large markets as such globally, not just India.

Reaffirms the company's focus on its core product business beyond the PSB Xchange platform, emphasizing the large market opportunity for these offerings.

Asked by Shubham

Profitability of subsidiaries and timeline for bottom-line improvement Direct
Yes, we have. We have subsidiaries. As we said, some of our subsidiaries which house our PSB Xchange, our transaction banking products. These are all in the investment phase right now. So, yes, they will be loss making... The numbers will improve on a standard basis just by our new products starting to pump in revenue.

Clarifies that some subsidiaries are intentionally loss-making during their build-out phase and links future bottom-line improvement to the monetization of new products.

Asked by Pradeep

2 min read 6 chapters

Detailed narrative

Q3 FY26 Performance Overview

Veefin Solutions reported a strong Q3 FY26, with consolidated revenue reaching ₹104 crores for the quarter and ₹214 crores for the nine-month period. The company highlighted robust execution across its core platforms and increasing traction in non-supply chain finance (non-SCF) products. Standalone core product business maintained healthy EBITDA margins of 52% and PAT margins of 27% on a year-to-date basis, reflecting strong operational efficiency.

Strategic Diversification and Pipeline Growth

The company's qualified deal pipeline stands at USD 61 million across 50 enterprise opportunities, with a significant 78% originating from non-SCF products such as cash management, trade finance, and internet banking. This diversification reflects Veefin's growing acceptance as a full-stack digital banking technology partner, moving beyond its single-product origins. The pipeline is geographically diversified, with 42% from India/South Asia and 36% from Southeast Asia, reinforcing international growth ambitions.

PSB Xchange Momentum and Transaction Activity

The PSB Xchange platform has transitioned from an onboarding-led initiative to a live operating marketplace, demonstrating meaningful transaction activity. It currently has three lender integrations and five sourcing partner integrations live, with more in progress. The platform has seen 80 corporate deals initiated, requesting ₹12,000 crores in limits, of which ₹4,000 crores have already been approved across 19 anchor corporates, indicating growing adoption and trust.

Profitability and Margin Dynamics

While standalone core product margins remain strong (52% EBITDA), consolidated margins are lower (19.95% EBITDA, 7.75% PAT) due to the inclusion of lower-margin service businesses and new products in their growth and monetization phases. New products like cash management and trade finance currently have an EBITDA margin of 43.4% (YTD) but are expected to reach 40-45% in a steady state, similar to SCF, as they scale and mature.

Capital Allocation and Fund Utilization

The company confirmed receiving the full amount from its preferential round approved in 2025. The funds are strategically allocated: ₹10 crores for international expansion, ₹49.33 crores for product development, ₹12 crores for sales and marketing, and ₹23 crores for general corporate purposes. This deployment supports the company's long-term international growth ambitions and continuous product innovation.

Merger Update and Subsidiary Performance

The merger plan is progressing, with BSE approval received and SEBI approval expected within the next week to 10 days, followed by NCLT. Management acknowledged that some subsidiaries, particularly those housing PSB Xchange and other new transaction banking products, are currently loss-making as they are in the investment and product build-out phase. However, they are performing well against expectations for this stage, focusing on product development and market acceptance, with future bottom-line improvement linked to their monetization.

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