Radiant Cash Management Services Limited — Q3 FY26 earnings call

Call held 12 Feb 2026

Management summary

Radiant Cash Management Services reported strong consolidated revenue and EBITDA margin growth in Q3 FY26, primarily driven by its fintech subsidiary, Acemoney, which turned EBITDA positive. However, standalone revenues declined YoY due to segment-specific issues, and Valuables Logistics continues to incur losses. The company is focused on cost reduction, direct business expansion, and shifting Acemoney's strategy towards transactional revenue to improve overall profitability.

Highlights

  • Consolidated revenues for the quarter were INR 1.26 billion, representing 18.3% growth over the previous quarter and 6.9% growth over same period last year.

  • Consolidated EBITDA margins stood at 13.9%, an improvement of 80 basis points over the previous quarter and 230 basis points over Q1 FY26.

  • Radiant Acemoney reported a healthy growth in revenues of INR 212.6 million for this quarter, representing an 89% growth over the same quarter last year.

  • Acemoney generated healthy positive EBITDA of INR 34 million, wiping out significant amount of losses reported in the previous 2 quarters.

  • Direct business continued its improving trend and now accounts for over 17% of our standalone revenues, up from 11.9% in the same quarter last year.

Concerns

  • Standalone revenues reported a 2.7% drop over the same quarter last year due to reduction in the railways and e-com logistics segments of our business.

  • Radiant Valuables Logistics is still continuing its losses, though current quarter losses are lower than the previous quarter.

  • The company is facing pricing pressures from clients, particularly with respect to low-volume points.

  • Overall PAT for the current year (FY26) is expected to see some drop compared to last year.

  • Acemoney expects some drop in revenue in Q4 as the focus shifts from POS machine deployment to transactional revenue.

Key financials

  1. Consolidated Revenue 1,260 Mn +6.9%YoY
  2. Consolidated EBITDA Margin 13.9%
  3. Standalone Revenue YoY Growth -2.7% -2.7%YoY
  4. Cash Handled Volume 0.44 Tn 0%YoY

What they filed

Q1 FY27: revenue up 5.7%, net profit down 9.4% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue107 116 104 100 105 −2%124 +7%101 −3%106 +6%
EBITDA19 22 13 10 12 −38%15 −30%9 −35%9 −2%
Net profit13 15 8 6 8 −41%12 −22%3 −65%5 −9%
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

  • Radiant Acemoney (Fintech Subsidiary)
    212.6 Mn Revenue89% YoY Growth34 Mn EBITDA
  • Jewellery Logistics Business
    20 Mn Revenue
  • Direct Business (Share of Cash Management Revenue)
    17% Share

Capital allocation

medium confidence
  • Debt Debt disclosed
    Venkataramanan: See, we are aware that their borrowings are slightly on the higher side because of slight delay of getting the receivables from RBI. By May '26 or by June '26, which is 3 months from now, their borrowing should come to a manageable level. Once you get the third quarter receivables from Reserve Bank of India. Abhishek Chawla: Okay. And these receivables are considered to be good or there is some doubt in these? Venkataramanan: No, it's a subsidy from Reserve Bank of India. The sovereign guarantee is there.

Guidance & targets

Profitability

  • Valuables Logistics Breakeven Profitability · next 1-2 quarters · Medium confidence Breakeven
    Radiant Valuables Logistics is still continuing its losses. And though the current quarter losses are lower than the previous quarter, the pace of growth is still not sufficient to achieve breakeven. We are growing sequentially at 30% plus quarter-on-quarter, and the momentum is healthy, which is giving us confidence to achieve breakeven in the next one or two quarters.

    — Col David Devasahayam

  • Acemoney EBITDA Profitability · Q4 · Medium confidence Breakeven
    We are working towards achieving breakeven in Q4.

    — Venkataramanan

  • Overall PAT Profitability · current year (FY26) · Medium confidence Some drop

    Previously achieve last year number → Some drop

    We are working towards that, but there could be some drop for the current year and compared to last year PAT.

    — Venkataramanan

  • Consolidated EBITDA Margins Profitability · next few quarters · Medium confidence Improvement
    Further improvement in margins are contingent on improvement in the top line growth. The management is taking several measures to grow the core business and is confident of maintaining the trend of improvement in margins in the periods to come.

    — Col David Devasahayam

Revenue

  • Acemoney Transaction Revenue Growth Revenue · future · Medium confidence Healthier pace
    So from now on, the transaction revenues, we are expecting it to improve at a much healthier pace. And we already established a footprint, so POS machine revenues may not add much in the future.

    — Muthuraman

  • New PSU Bank Contract Additional Revenue Revenue · next financial year (FY27) · High confidence INR 20 crores
    The additional regions will give us INR20 crores additional revenue in the next financial year.

    — Venkataramanan

What to watch in Q4 FY26

Valuables Logistics Breakeven

next 1-2 quarters
Current Still incurring losses
Target Breakeven

Why it matters

Achievement of breakeven for this segment is crucial for overall profitability improvement and validates the diversification strategy.

Radiant Valuables Logistics is still continuing its losses. And though the current quarter losses are lower than the previous quarter, the pace of growth is still not sufficient to achieve breakeven. We are growing sequentially at 30% plus quarter-on-quarter, and the momentum is healthy, which is giving us confidence to achieve breakeven in the next one or two quarters.

Risks & concerns

  • Standalone Revenue Decline

    medium

    Standalone revenues dropped 2.7% YoY due to reduction in railways and e-commerce logistics segments.

    Management acknowledged

  • Valuables Logistics Losses

    medium

    The Valuables Logistics segment is still incurring losses, though current quarter losses are lower than previous.

    Management acknowledged

  • Pricing Pressures in Core Business

    medium

    Facing pricing pressures from clients, particularly for low-volume points, impacting core business margins.

    Management acknowledged

  • Overall PAT Drop for FY26

    medium

    Overall PAT for the current financial year (FY26) is expected to see some drop compared to last year.

    Management acknowledged

  • Acemoney Q4 Revenue Drop

    medium

    Acemoney expects some drop in revenue in Q4 as the focus shifts from POS machine deployment to transactional revenue.

    Management acknowledged

  • Delayed RBI Receivables for Acemoney

    low

    Temporary higher borrowings for Acemoney due to delayed receivables from RBI, which are sovereign guaranteed and expected to normalize by May/June '26.

    Management acknowledged

Q&A highlights

6 direct, 1 evasive
Valuables Logistics conversion from existing jeweller clients Partial
I don't have that data ready on number of common customers between our retail cash management and diamond bullion and jewellery segment. But yes, a few large customers are common between both in the organized gold jewellery segment.

Analyst sought to understand synergy and cross-selling potential between core cash management and the newer Valuables Logistics segment, but specific data was unavailable.

Asked by Abhishek Chawla

Impact of rising cash in circulation on revenue Direct
Well, the fact is that the number of points are increasing. But in terms of the throughput, particularly in Tier 1 and Tier 2 locations, the throughput is not growing as what it was earlier because of the current aspect of digitization, which has also come into play. So that's the reason why though the number of points have grown, the cost of operations has gone up.

Clarified that despite overall cash in circulation increasing, company's revenue isn't directly benefiting due to digitization impacting throughput in key locations and increasing operational costs.

Asked by Abhishek Chawla

Pricing model for Valuables Logistics Direct
I'd like to answer that. It is based on the weight of the consignment, the volume. It's based on the volume we move.

Confirmed that pricing is based on weight/volume, not the value of the jewellery, which means revenue is not directly impacted by price fluctuations of precious metals.

Asked by Abhishek Chawla

Competitive pressure and margin restoration in core business Direct
If the revenue growth is healthy, it's a high operating leverage business. Individual — you're conflating 2 different things. Individual contract level pricing, some pricing pressures could be there that doesn't have a direct correlation on the margins. So the margin improvement is contingent on revenue growth because of a high fixed cost and high operating leverage nature of this business.

Addressed concerns about persistent pricing pressure and clarified that margin improvement is primarily tied to revenue growth due to the business's operating leverage, rather than just individual contract pricing.

Asked by Dilip Kumar Sahu

Breakdown of Acemoney's revenue components Evasive
It is relatively business sensitive information. So we may not be able to throw more light on it.

Analyst sought to understand the split between POS installation revenue and transaction service revenue for Acemoney, which management declined to provide, indicating sensitivity around this detail.

Asked by Dilip Kumar Sahu

Funding and cash requirements for the Fintech subsidiary (Acemoney) Direct
See, we are aware that their borrowings are slightly on the higher side because of slight delay of getting the receivables from RBI. By May '26 or by June '26, which is 3 months from now, their borrowing should come to a manageable level. Once you get the third quarter receivables from Reserve Bank of India.

Addressed concerns about Acemoney's higher borrowings, attributing it to temporary delays in RBI receivables, which are sovereign guaranteed and expected to be resolved soon.

Asked by Abhishek Chawla

Impact of labor code provisions on salary structure Direct
See our salary structure, the labor code mainly says basic salary should be at least 50% of the gross salary. Our salary structure is by and large aligned with the new provision per labor code. So there is no material impact due to the change in the labor code for us.

Clarified that new labor code provisions will have no material impact on the company's financials as their salary structure is already largely compliant.

Asked by C. Jagannathan

Return to previous EBITDA levels Direct
We have made conscious decisions that we have to focus on future growth. And future growth besides, we were only on retail cash management for a long duration of time, and now we are diversifying to multiple areas, which will take time for them to achieve their respective growth potential.

Management explained that the current lower EBITDA levels are a result of strategic diversification into new areas like Valuables Logistics and Fintech, which require investment and time to scale up and contribute to profitability.

Asked by C. Jagannathan

2 min read 6 chapters

Detailed narrative

Q3 FY26 Consolidated Financial Performance

Radiant Cash Management Services reported consolidated revenues of INR 1.26 billion for Q3 FY26, marking an 18.3% sequential growth and 6.9% year-on-year growth. The consolidated EBITDA margins improved marginally to 13.9% in the current quarter, an 80 basis point improvement over Q2 FY26 and 230 basis points over Q1 FY26, primarily due to cost reduction measures. However, standalone revenues saw a 2.7% year-on-year drop, attributed to reductions in the railways and e-commerce logistics segments.

Radiant Acemoney's Strong Growth and Profitability Turnaround

The fintech subsidiary, Radiant Acemoney, demonstrated robust performance, reporting revenues of INR 212.6 million in Q3 FY26, an 89% year-on-year growth. Crucially, Acemoney achieved a positive EBITDA of INR 34 million, recovering from losses incurred in the previous two quarters. The company successfully installed over 1 lakh POS machines and crossed INR 1,000 crores in transaction volume this financial year, with a strategic shift towards focusing on transactional revenue rather than just POS deployment.

Core Business Dynamics and Strategic Initiatives

The volume of cash handled remained flat year-on-year at INR 0.44 trillion. Despite this, cash van operations grew 11% sequentially. The direct business segment continues to expand, now contributing over 17% to standalone revenues, up from 11.9% last year. Radiant secured a significant PSU bank mandate, set to go live from April 1, 2026, which is expected to generate an additional INR 20 crores in revenue for the next financial year and boost profitability in this segment.

Valuables Logistics Challenges and Outlook

The Valuables Logistics segment continues to operate at a loss, although the losses in the current quarter were lower than the previous. Management acknowledges a slippage in its breakeven timeline, now expecting to achieve it in the next one to two quarters. The segment's revenue for Q3 FY26 was INR 20 million, and it has seen sequential quarter-on-quarter growth of about 30%.

Capital Management and Debt for Acemoney

Acemoney's borrowings are currently higher due to delays in receiving receivables from the Reserve Bank of India. Management clarified that these receivables are sovereign guaranteed and expects them to be realized by May or June 2026, which should bring the borrowing levels to a manageable state. No specific details on overall company capex, shareholder returns, or M&A were provided during the call.

Profitability Outlook and Cost Management

The management is actively implementing cost reduction measures and realigning costs, particularly concerning cash executives and cash vans, to improve margins. While the overall PAT for FY26 is anticipated to be lower than the previous year, the company is confident in improving performance in the ongoing financial year through renewed focus on sales initiatives across all verticals and stringent cost control.

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