DiGiSPICE Technologies Limited — Q4 FY26 earnings call

Call held 21 May 2026

Management summary

DigiSpice Technologies reported a strong financial turnaround in FY26, with significant growth in profitability and Gross Transaction Value (GTV) for its Spice Money platform. The company is actively expanding its product offerings, including UPI Cash Point and lending, while navigating regulatory changes for banking outlets. Management expects profitability to grow 20% YoY in the coming 2-3 years and aims to complete the merger of Spice Money within the current financial year.

Highlights

  • Full-year FY26 Revenue reached INR 464 crores, growing 4% YoY.

  • Gross Margin for FY26 increased by 13% YoY to INR 200 crores.

  • EBIT for FY26 grew 2.4x YoY to INR 37 crores.

  • PAT from continuing business for FY26 surged to INR 25 crores, up from INR 6.5 crores in FY25.

  • Overall PAT for FY26 was INR 19.3 crores, a significant turnaround from a loss of INR 39 crores in FY25.

  • Customer Gross Transaction Value (GTV) grew 10.5% YoY to INR 127.9 thousand crores.

Concerns

  • Q4 FY26 gross margin saw a QoQ decline of INR 3 crores, attributed to subsidy cycles and one-time adjustments.

  • Regulatory clarity for Business Correspondent Banking Outlet (BC-BO) guidelines is still pending, impacting expansion plans.

Key financials

  1. Revenue ₹464 Cr +4%YoY
  2. Gross Margin ₹200 Cr +13%YoY
  3. EBIT ₹37 Cr +140%YoY
  4. PAT (Continuing Business) ₹25 Cr +284.6%YoY
  5. Overall PAT (after notional gain/loss) ₹19.3 Cr
  6. Customer GTV Growth 10.5% +10.5%YoY

What they filed

Q1 FY27: revenue down 12.9%, net profit down 4.9% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue109 113 117 124 125 +14%109 −3%107 −8%108 −13%
EBITDA-3 -2 1 6 7 +333%6 +472%1 +69%9 +34%
Net profit-7 -20 -12 7 7 +198%2 +112%3 +123%7 −5%
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.

Order book

high confidence

Total value

₹1,27,900 Cr

as of 2026-03-31 quantified

10.5% YoY
Overall GTV grew 10.5% year-on-year to INR 127.9 thousand crores, driven by newer segments like credit business and new products.

Source: Prepared remarks

Capital allocation

medium confidence
  • M&A Spice Money Merger · Pending regulatory

    Spice Money directly being listed on the exchange

    The merger application was placed before the honorable NCLT, where our first motion has been accepted. And now we are moving towards convening a meeting of our shareholders for approval of the merger and then moving towards second motion. So like I said that we are hoping that within this financial year, we can close this merger and Spice Money directly being listed on the exchange.

Guidance & targets

Profitability

  • Profitability growth Profitability · coming 2, 3 years · Medium confidence 20% year-on-year growth
    And we expect that at least in the profitability terms, we should be clocking 20% growth year-on-year in the coming 2, 3 years, what we envisage.

    — Sunil Kapoor

Lending Business

  • Interest rate on Adhikari loans Lending Business · ultimately · Low confidence 24-26%
    So ultimately, the vision is to go down to close to 24%, 26% and directionally keep moving lower to reduce cost of borrowing.

    — Dilip Modi

Product Adoption / Volume

  • UPI Cash Point volume relative to AEPS Product Adoption / Volume · next 1 to 2 years · Medium confidence 50% of AEPS volume
    Second point I want to just add on this is that we envisage that this product with our presence will have almost in next 1 to 2 years, there will be a 50% of what we are doing in AEPS.

    — Sunil Kapoor

What to watch in Q1 FY27

Spice Money merger completion and direct listing

within this financial year
Current NCLT first motion accepted, moving to shareholder meeting
Target Merger closed, direct listing on exchange

Why it matters

Completion of this major corporate restructuring is crucial for the company's future structure and potential valuation.

So like I said that we are hoping that within this financial year, we can close this merger and Spice Money directly being listed on the exchange.

Risks & concerns

  • Macroeconomic uncertainties

    medium

    Potential impact on financials, though management emphasizes essential nature of services and focus on efficiency.

    Analyst acknowledged

  • Seasonality in AEPS business

    medium

    Revenue fluctuations due to subsidy cycles and state government schemes, mitigated by product diversification.

    Analyst acknowledged

  • Regulatory clarity for Business Correspondent Banking Outlets (BC-BO)

    medium

    Guidelines are under deliberation, causing delays in banking outlet expansion, particularly for payment banks.

    Management acknowledged

Q&A highlights

5 direct
Outlook on top line growth and EBITDA margins for FY27 and FY28 Partial
And we expect that at least in the profitability terms, we should be clocking 20% growth year-on-year in the coming 2, 3 years, what we envisage.

Analyst sought comprehensive financial guidance for future years, but management provided only profitability growth.

Asked by Rushda Saifee

Expansion of presence in Southern India Direct
Yes, especially with the launch of UPI Cash Point, we believe that there's a great opportunity for us to expand into South India because there is a very strong UPI adoption that we see in the South.

Clarifies strategic geographic expansion plans, leveraging new product offerings like UPI Cash Point.

Asked by Sailee Shah

Growth and interest rates for Adhikari loans Direct
So ultimately, the vision is to go down to close to 24%, 26% and directionally keep moving lower to reduce cost of borrowing.

Provides details on the growth drivers and long-term pricing strategy for the company's emerging lending business.

Asked by Sailee Shah

Impact of macroeconomic uncertainties on financials Partial
So it will be wrong to say that there will not be an impact. We just have to wait and watch what that impact will be, but we continue to focus on driving efficiency.

Addresses external risks and outlines management's strategy to mitigate potential impacts through operational efficiency.

Asked by Sailee Shah

Seasonality and subdued Q3/Q4 revenues Direct
So effectively, there's seasonality, which created the situation in H1 versus H2. Now seasonality could be linked to elections. It could be linked to various schemes run by state governments.

Explains the reasons behind quarterly revenue fluctuations and the company's efforts to diversify beyond AEPS to reduce seasonality.

Asked by Utsav Baheti

Working mechanism, opportunity size, and regulatory aspects of UPI Cash Point Direct
So it's not a license from the regulator, but it is a partnership with the bank under the business correspondent framework of the regulator.

Offers a detailed explanation of a new, high-potential product, its market dynamics, and the regulatory framework governing it.

Asked by Utsav Baheti

Target for banking outlet expansion and customer activity levels Partial
So what is happening is that in the current set of guidelines that have come out, the BC-BO or the business correspondent banking outlet has been made akin to a bank branch. And this needs certain clarifications when it comes to payment banks because they don't have branches by definition.

Highlights regulatory challenges affecting a key expansion strategy and the company's initiatives to boost customer engagement.

Asked by Rahul Ahuja

Sharp deterioration in margins QoQ (Q4 vs Q3) Direct
So quarter 4, we have a gross margin of INR48.6 crores, which is INR3 crores down from the previous quarter. That's one point we have mentioned it out that's about the subsidy cycle in the quarter 3 versus quarter 4 because the revenue is also a little less on the quarter 4 side.

Addresses a specific financial concern regarding quarterly margin performance and provides a clear explanation for the dip.

Asked by Rahul Ahuja

2 min read 6 chapters

Detailed narrative

Overview of Spice Money Business Model and Reach

DigiSpice Technologies is building Spice Money, a phygital platform providing basic banking and financial services in rural Bharat. As of FY26 end, the platform serves 1.7 million banking agents, reaching 170 million customers across 2.6 lakh small towns. The company aims to deepen its penetration in Tier 4, 5, and 6 markets where traditional banking infrastructure is limited, leveraging its extensive agent network.

Strong Financial Turnaround in FY26

The company reported a significant financial turnaround in FY26. Revenue reached INR 464 crores, marking a 4% YoY growth. Gross Margin expanded by 13% YoY to INR 200 crores, and EBIT grew 2.4x YoY to INR 37 crores. PAT from continuing business surged to INR 25 crores from INR 6.5 crores in the previous year, with an overall PAT of INR 19.3 crores compared to a loss of INR 39 crores in FY25.

Strategic Product Expansion and GTV Growth

Customer Gross Transaction Value (GTV) grew 10.5% YoY to INR 127.9 thousand crores in FY26. This growth was driven by new products, including a nascent credit business and the recently launched UPI Cash Point. The UPI Cash Point, which allows cash withdrawals via UPI apps, is already at a run rate of INR 100 crores GTV per month and holds a 30-35% market share, with management envisioning it reaching 50% of AEPS volumes in 1-2 years.

Lending Business Scaling Up

The lending business, operating as a loan service provider, has begun to scale, showing progress towards profitability. Disbursements grew 3.3x YoY to INR 66.7 crores in FY26, up from INR 20.5 crores in FY25. The company leverages its proprietary underwriting models and agent transaction data to offer credit products, with a vision to reduce interest rates for Adhikari loans from 32-36% to 24-26% over time.

Merger Update and Future Outlook

The merger of Spice Money into DigiSpice Technologies is progressing, with RBI, SEBI, and NCLT approvals in place. The first motion has been accepted by NCLT, and the company is moving towards a shareholder meeting for approval, with hopes to complete the merger and directly list Spice Money on the exchange within the current financial year. Management projects profitability to grow 20% year-on-year in the coming 2-3 years.

Geographic Expansion and Regulatory Environment

The company is actively working to expand its presence in Southern India, leveraging the strong UPI adoption in the region and the new UPI Cash Point product. While 1.7 million agents are spread across India, regulatory clarity is awaited for Business Correspondent Banking Outlet (BC-BO) guidelines, which are currently under deliberation and expected by the end of June. This clarity is crucial for further expansion of banking services in underserved rural areas.

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