Protean eGov Technologies Limited — Q3 FY26 earnings call

Call held 12 Feb 2026

Management summary

Protean eGov Technologies delivered a steady Q3 FY26 performance with revenue growing 13% YoY to INR 229 crores and EBITDA expanding 335 bps to 19%. This growth was supported by strong performance in tax services and increasing contribution from new businesses, which now account for 11% of 9M FY26 operating revenue. The company remains debt-free with a robust cash position and is actively expanding its digital public infrastructure offerings both domestically and internationally, despite some temporary pricing pressures in certain segments.

Highlights

  • Revenue from operations grew 13% YoY to INR 229 crores in Q3 FY26, driven by tax services and new businesses.

  • EBITDA grew 34% YoY to INR 46 crores, with margins expanding 335 basis points to 19% in Q3 FY26.

  • New businesses significantly increased their contribution to 11% of operating revenue in 9M FY26, compared to 4% in FY25.

  • The company secured 4 international mandates across 3 markets, including a strategic national level mandate valued at INR 25 crores for the Ethiopian agricultural ecosystem.

  • Protean maintains a strong, debt-free balance sheet with approximately INR 800 crores of cash and cash equivalents as of December 31, 2025.

Concerns

  • Revenue in the Identity business was impacted by slab-based pricing and competitive pressures.

  • The NPS business experienced a temporary pricing impact due to regulatory restructuring, expected to last for 1-2 quarters.

  • Revenue recognition for turnkey projects can be lumpy, leading to quarterly fluctuations.

Key financials

2 periods

Headline

  • Revenue from Operations
    ₹229 Cr
    YoY +13%
  • EBITDA
    ₹46 Cr
    YoY +34%
  • EBITDA Margin
    19%
  • Adjusted PAT
    ₹26 Cr
  • PAT Margin
    10.9%
  • Cash & Cash Equivalents
    ₹800 Cr

9M

  • FY26 Revenue
    ₹690 Cr
    YoY +12%
  • FY26 EBITDA
    ₹135 Cr
  • FY26 EBITDA Margin
    18%
  • FY26 Adjusted PAT
    ₹74 Cr

What they filed

Q1 FY27: revenue up 19.0%, net profit down 75.4% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue220 202 222 211 251 +14%229 +13%308 +38%251 +19%
EBITDA32 16 18 16 29 −7%32 +101%38 +112%12 −24%
Net profit28 23 20 24 24 −15%23 −2%30 +49%6 −75%
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

₹1,600 Cr

as of 2025-12-31 quantified

Execution

multiyear projects, 4-6 years for managed services part

Pipeline

deal pipeline tcv

Actively looking at bids where core competence matches, across identity, health, agriculture, education, skilling, and other national infrastructure projects.

The unexecuted order book is strong and largely anchored in digital identity and open digital ecosystems, with projects being multi-year and moving into active execution.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex Capex disclosed
    During the quarter, We continued to invest in readiness for large mandates, including technology upgrades and selective capacity build-out. These investments are aligned with supporting growth as project scale and move into larger phases of execution.
  • Debt Debt disclosed
    From a balance sheet perspective, we remain in a strong position and continue to operate with zero debt with INR 800 crores in cash and marketable securities, which gives us flexibility to invest in technology capacity and execution while maintaining our financial discipline.
  • M&A NSDL Payments Bank Acquisition · Closed

    To collaborate closely with the banking team in co-creating replicable and certified digital banking technologies, cross-sell opportunities, and build inclusive financial infrastructure.

    We acquired a 4.95% stake in NSDL Payments Bank. As India's digital banking ecosystem scales up, payment banks are evolving into technology-led platforms, driving last-mile financial inclusion. NSDL Payments Bank clearly exemplifies this shift.
  • Liquidity Cash ₹800 Cr The company is debt-free and has sufficient cash and cash equivalents to invest selectively while maintaining long-term discipline.
    As of 31st December 2025, we had ~INR 800 crores of cash and cash equivalents and we continue to remain debt-free. This financial position gives us the ability to invest selectively while maintaining long-term discipline.

Guidance & targets

Revenue

  • Quarterly Revenue Run Rate Revenue · next 2 quarters · High confidence INR 230-250 crores
    With respect to run rate, we are right now running at about INR 230 to INR 250 crores for the last 2 to 3 quarters. This run rate is going to continue.

    — Sandeep Mantri, Chief Financial Officer

  • Quarterly Revenue Run Rate (with ASK full rollout) Revenue · after ASK full rollout · High confidence INR 270-280 crores
    I think once the ASK project is fully operational, we would have more revenue, with which the run rate can go up to INR 270 to 280 crores.

    — Sandeep Mantri, Chief Financial Officer

Project Rollout

  • Aadhaar Seva Kendra (ASK) Full Rollout Project Rollout · by September · High confidence 190 centres
    As per the mandate, Protean has to roll out 190 centres, out of which 34 are already rolled out in this quarter. By September, we should be able to roll out everything, from a Q3 or Q4 of next year, you should see the run rate going up significantly.

    — Sandeep Mantri, Chief Financial Officer

Growth

  • Existing Businesses Growth Rate Growth · average rate · High confidence 8-10%
    What we are saying is our existing businesses, which is Tax, CRA and foundational identity businesses continues to grow at an average rate of 8% to 10%.

    — Sandeep Mantri, Chief Financial Officer

  • CRA Services Growth (normalized) Growth · Medium confidence 12-14%
    About 12% to 14% growth, I would say, if we remove the impact of the pricing.

    — Sandeep Mantri, Chief Financial Officer

Revenue Contribution

  • New Businesses Revenue Contribution Revenue Contribution · next 2 to 3 years · High confidence 25%

    From 11-12% today

    Our new businesses in the next 2 to 3 years will contribute about 25% to revenues. We are already at 11% to 12% in this year. So, from 11% to 12% to 25% in next 2 to 3 years, we are aspiring for that kind of growth in new businesses.

    — Sandeep Mantri, Chief Financial Officer

Profitability

  • EBITDA Margin Expansion Profitability · longer-term · Medium confidence 300 to 400 basis points
    So, EBITDA, we are already at 19%, if you see. So, there will be an expansion of 300 to 400 basis points, which is what we said last time also in next couple of years once we start growing our revenues at this stage.

    — Sandeep Mantri, Chief Financial Officer

  • CRA Services Pricing Stabilization Profitability · one more quarter · High confidence stabilize
    So, I think it will take one more quarter and the prices will get stabilize.

    — Sandeep Mantri, Chief Financial Officer

Financials

  • Depreciation Run Rate Financials · High confidence 4.5%-5.5%

    Previously 4.5% → 4.5%-5.5%

    So, the run rate for depreciation will increase. Right now, we are at about 4.5% on revenue. So, it will remain between 4.5% to 5.5%.

    — Sandeep Mantri, Chief Financial Officer

What to watch in Q4 FY26

Aadhaar Seva Kendra (ASK) Rollout Progress

next quarter and by September 2026
Current 34 centers operational
Target Progress towards 190 centers fully operational

Why it matters

The full rollout of ASK centers is expected to significantly boost the company's quarterly revenue run rate by INR 40-50 crores.

As per the mandate, Protean has to roll out 190 centres, out of which 34 are already rolled out in this quarter. By September, we should be able to roll out everything, from a Q3 or Q4 of next year, you should see the run rate going up significantly.

Risks & concerns

  • NPS Pricing Restructuring Impact

    medium

    The PFRDA's shift to an AUM-linked charge structure for the pension ecosystem has caused a temporary pricing impact, affecting revenue for 1-2 quarters.

    Management acknowledged

  • Identity Business Competitive Pressures

    medium

    Slab-based pricing and competitive pressures are impacting revenues in the Identity business, despite strong volume growth.

    Management acknowledged

  • Lumpiness in Project-Based Revenue

    low

    Turnkey projects, which are milestone-based, can lead to lumpy revenue recognition, causing quarterly fluctuations in reported revenue.

    Management acknowledged

Q&A highlights

5 direct
Senior Management Exits Direct
I think largely, a few people have moved because they had reached retirement age, just that it converged and happened at the same time. Secondly, a couple of exits were planned because as we got into a very ramped up order book on our external orders, especially on the project side, we have further restructured our teams to create a very strong delivery vertical for execution.

Analyst inquired about recent senior management departures, and management clarified these were due to retirements and strategic restructuring for a stronger delivery vertical, not a mass exodus.

Asked by Rohan M, Equirus Securities

New Business Revenue Recognition Direct
So, new businesses consist of 2 types of revenue streams. One is the RFP or project-based revenue, which is more like a turnkey project wherein the revenue accrues basis delivery of certain milestones and second is our regular projects. If it is a regular project, then you would see similar kind of revenue run rate every quarter/month.

Analyst sought clarity on the lumpiness of new business revenue, and management explained the difference between milestone-based turnkey projects and steady regular projects.

Asked by Rohan M, Equirus Securities

NPS Subscriber Additions & AUM-linked Pricing Direct
I don't think subscriber addition has fallen. We clearly stated in our press release also that it is not a subscriber base, which is fallen. Actually, we have added about 35 lakh subscribers this quarter also, which is in line with our quarterly growth. ... the pricing structure is now AUM-linked. It was earlier also, but now it incentivises higher AUMs therefore, as AUM grow, you will see an improvement in the pricing structure over there.

Analyst questioned a perceived drop in NPS subscriber additions, and management clarified that additions were healthy, but the pricing model shifted to AUM-linked for private/non-government sectors, which is expected to improve revenue over time despite temporary impact.

Asked by Rohan M, Equirus Securities

Cash on Balance Sheet & Buyback Direct
this cash will be used, one in funding the working capital for all these large RFP projects, which we are winning like CERSAI or Bima Sugam, a couple of projects which will come in future. So, one we need working capital funding for those. Second, we are also actively look at inorganic opportunities, while there is nothing which is in advanced stage, but we actively look at opportunities to expand or grow our current scale. So, that will be the one-use case for the cash which is lying in the company and I think dividend, we are paying decently. So, I don't think we are increasing the dividend payout. There is no thought process on that.

Analyst asked about the large cash balance and potential buyback, and management stated the cash is for working capital for large projects and inorganic growth, with no plans for a buyback as dividends are already decent.

Asked by Rohan M, Equirus Securities

MD's Succession and Business Continuity Direct
So, this was a personal decision. We were working very closely with the Board over a period of time to ensure that there is a smooth transition. For personal and professional reasons, I'm moving ahead. The intention was to create a very robust succession planning in place and that we have done. And we have moved forward with that. We've got, as earlier mentioned, a complete strong leadership in place across all the verticals as we had restructured the organization sometime last year. And there is absolute continuity, and we don't see any disruption.

Analyst expressed concern about the MD's departure, and the MD reassured investors that a robust succession plan was in place, ensuring smooth transition and continuity without disruption.

Asked by Guru Prasad, Share Giant

ONDC Tie-ups with Banks Partial
So, I think, Rohan, ONDC, definitely, again, we maintain and we have a belief that it's a revolutionary intervention in the market from a digital commerce point of view, and it has definitely sort of also diversified into enabling open finance, mobility and transport, and there's also a services part to it. ... Each one of them, some are in POC stage because the banks are also seeing if there's adoption, then they'll put it on a full-scale basis.

Analyst inquired about the progress of ONDC tie-ups with banks, and management indicated that while ONDC is revolutionary, adoption is key, and most bank tie-ups are still in the POC stage, awaiting traction for full-scale implementation.

Asked by Rohan M, Equirus Securities

3 min read 7 chapters

Detailed narrative

Q3 & 9M FY26 Financial Performance Overview

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.

Core Business Performance (Tax & CRA)

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.

New Business Growth & Diversification

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.

Aadhaar Seva Kendras (ASK) Rollout & International Expansion

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.

Capital Position & Strategic Investments

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.

Cloud Services & Digital Public Infrastructure

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.

Management Transition & Continuity

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.

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