Protean eGov Technologies Limited

Protean eGov Technologies reported a steady performance in Q3 FY26, with revenue from operations growing 13% YoY to INR 229 crores. EBITDA increased by 34% YoY to INR 46 crores, leading to a 335 basis point expansion in margins to 19%. Adjusted profit after tax stood at INR 26 crores, representing a PAT margin of 10.9%. For the first nine months of FY26, revenue grew 12% YoY to INR 690 crores, and EBITDA reached INR 135 crores with an 18% margin.

The company continued to strengthen its leadership in tax services, issuing over 1.1 crore PAN cards and consolidating its market share at 59%, supported by the Aadhaar-PAN linkage extension. The CRA business demonstrated steady performance, onboarding over 35 lakh new subscribers and capturing 94% of the incremental market share, maintaining a dominant 98% cumulative market share across NPS, APY, and UPS. The NPS segment is transitioning to an AUM-linked charge structure, which is expected to drive long-term revenue growth despite a temporary pricing impact for 1-2 quarters.

Protean's new businesses are making a visible impact, contributing 11% of operating revenue in 9M FY26, a significant increase from 4% in FY25. The company aims for these new businesses to contribute 25% to revenues within the next 2-3 years. This diversification spans across open digital ecosystems in insurance, health, agriculture, education, and identity, strengthening Protean's role as a platform builder in high-growth sectors.

The first phase of the UIDAI mandate for Aadhaar Seva Kendras (ASK) has been completed, with 34 centers operational across 19 States and Union Territories, contributing to revenue. The full rollout of 190 centers is expected by September 2026, which will add INR 40-50 crores to the quarterly run rate. Internationally, Protean secured 4 mandates across 3 markets, including a strategic INR 25 crores project for the Ethiopian agricultural ecosystem DPI, to be delivered over 2-3 years.

Protean maintains a strong, debt-free balance sheet with approximately INR 800 crores in cash and cash equivalents as of December 31, 2025. This financial position provides flexibility for selective investments while maintaining long-term discipline. The company also made a strategic investment by acquiring a 4.95% stake in NSDL Payments Bank, aiming to co-create bank-grade financial technologies and leverage cross-sell opportunities across the BFSI industry.

Management views cloud as an embedded strategy for large-scale Digital Public Infrastructure (DPI) institutions, with regulators increasingly open to hybrid or cloud-hosted infrastructure. Protean Cloud is positioned as a secure, value-added layer for turnkey projects. The company is internally discussing and strategizing its cloud deployment strategy, with clarity expected in the next 1-2 quarters regarding potential joint ventures or independent sales.

The Managing Director, Suresh Sethi, announced his departure due to personal and professional reasons. He reassured stakeholders that a robust succession planning process was in place, ensuring a smooth transition and continuity. The company has a strong leadership team across all verticals, with recent organizational restructuring aimed at creating a strong delivery vertical, minimizing any disruption.