Radiant Cash Management Services Limited

Radiant Cash Management Services reported standalone revenues of INR 102 crores for Q2 FY26, which remained nearly flat YoY. Standalone EBITDA margins were 14.9%, impacted by losses in the valuable Logistics segment and increased fixed costs. Consolidated revenues grew 4.6% QoQ to INR 107 crores, with consolidated EBITDA margins improving by 150 basis points QoQ to 13.1%. For the first half of FY26, overall business revenue was INR 200 crores, and cash handled volume grew 1.3% YoY to INR 83,000 crores.

The fintech subsidiary, Acemoney, bounced back significantly, with revenues reaching INR 4.9 crores in Q2 FY26, up from INR 1.7 crores in the previous quarter, despite an EBITDA loss of INR 1.56 crores. Transaction volumes for Acemoney were approximately INR 400 crores this quarter. The company aims to install over 1 lakh POS machines by the end of the current financial year and expects Acemoney to wipe out its H1 losses and contribute meaningfully to overall profits in the remainder of the year. In the steady state, Acemoney is projected to generate 15-20% EBITDA margins.

Management is implementing several measures to improve revenue growth and restore profitability. These include offering a wider array of services to banks (cash sorting, ATM replenishment, cash deposit machines), strengthening direct client business (now 16% of cash management revenues), and initiating cost reduction measures expected to save INR 5 crores annually from Q3 onwards. The valuable Logistics segment is targeted to achieve breakeven in the current financial year, with a monthly top-line of INR 1-1.2 crores required.

While the E-Commerce segment showed healthy growth of over 30% and the Petroleum segment grew 24%, the Railways and E-Commerce Logistics segments experienced a significant drop of more than 50% YoY. The company decided not to aggressively pursue the railways business due to adverse pricing and long payment cycles. The direct client business continues to grow at a healthier pace, now constituting 16% of cash management revenues, up from 13% in the same quarter last year.

Radiant maintains its market leadership in retail cash management, with a geographic footprint covering over 15,000 pin codes and close to 9,000 locations. Management addressed concerns about UPI's growth, stating that currency in circulation is also growing (8% YoY to INR 38 lakh crores as of August 2025) and does not pose a serious challenge. They also view PSU banks potentially offering direct services as an opportunity to expand their business significantly.