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    RNFI Services

    RNFI
    Financial Services·14 Nov 2025
    Management Summary

    RNFI Services reported a resilient H1 FY26, achieving a 2.9% revenue growth and a substantial 61.3% increase in net PAT margin to 6.5%, primarily by transitioning to higher-margin products to offset declines in the DMT business. The company secured an AD-II license, launched new offerings, and continues to invest in AI and technology for scalability and efficiency. While facing challenges in its DMT segment and a reduction in Payworld's agent base, management expressed confidence in future growth driven by new products and strategic partnerships.

    Highlights

    5

    • Revenue grew by 2.9% in H1 FY26, despite challenges in DMT and forex businesses.

    • Net PAT margin expanded significantly by 61.3% to 6.5% in H1 FY26, driven by a shift to higher-margin products.

    • Received AD-II license, enabling launch of Reli Money forex platform and expansion into remittance and card businesses.

    • Successfully raised funds for Paysprint at a valuation of INR 120 crores and secured ISNP approval from IRDAI.

    • Added 18 new clients and increased active sites, with client count growing from 5 in 2021 to 112 in 2026.

    Concerns

    3

    • DMT business declined by INR 30 crores in H1 FY26 due to regulatory changes, with no immediate recovery expected.

    • Payworld's active agent base reduced from 60,000 to 40,000 due to consolidation and cost reduction efforts.

    • Average Revenue Per User (ARPU) was lowered due to Payworld's integration, though management expects it to improve.

    What Changed1

    vs Q3 FY26

    Guidance items13 → 8 (-5)

    Key financials

    Single quarter

    08 metrics
    1. 01Revenue Growth2.9%
    2. 02Net PAT Margin Growth61.3%
    3. 03Non-Forex PAT Margin6.5%
    4. 04DMT Business Revenue Reduction₹30 Cr
    5. 05PAT H1 FY26₹14.55 Cr

    Capital allocation

    3
    high confidence
    CategoryHeadline
    M&A

    Paysprint

    acquisition · closed · Consideration ₹NaN (undisclosed)

    M&A

    Promoter Group Trust

    Other · closed

    Liquidity

    Liquidity disclosed

    INR 25 crores of IPO funds remain unutilized, earmarked for working capital for new businesses like CRA, AD-II, and insurance expansion.

    Guidance & targets

    8
    CategoryTargetPriority
    Profitability
    Payworld Profitability
    Very profitable
    		High
    Profitability
    PAT Margins
    Increase further on
    		Medium
    Profitability
    ARPU
    Go further on
    		Medium
    Business Performance
    Forex Business Performance
    Exceptional progress
    		High
    Revenue
    New Products Revenue Growth
    Grow considerably
    		Medium
    Revenue
    Paysprint H2 FY26 Growth
    Grow more than H1 numbers
    		Medium
    Margin
    Forex Card Business Margin (Corporate)
    0.5-1%
    		High
    Margin
    Forex Card Business Margin (Retail)
    1-2%
    		High

    Payworld Profitability

    Q4 FY26
    CurrentConsolidating, reduced agent base, not yet profitable
    TargetVery profitable

    Why it matters

    Payworld's turnaround to profitability is a key management target and crucial for overall segment performance.

    We expect in the fourth quarter payworld to be very profitable, to start being profitable for us, sir.

    How to verify

    guidance_and_targets[metric='Payworld Profitability']

    Risks & concerns

    2
    RiskSeverity

    DMT business decline due to regulatory changes

    The DMT business declined by INR 30 crores in H1 FY26 due to regulatory changes, which management has been unable to recover, though they state the impact has been absorbed by other products. — Management acknowledged

    medium

    Lowered ARPU due to Payworld integration

    Average Revenue Per User (ARPU) was lowered from around 1400 due to Payworld coming into the base, but management is actively working to improve it. — Management acknowledged

    low

    Q&A highlights

    8

    “So four of them I've just showed you, they're launching. Rest are in development phase, sir. We'll be launching a few every quarter. Basically, it's for the marketing team also, we can't flood them with all the products. It will not be able to give the necessary results.”

    Clarifies the phased rollout strategy for new products and their current development status.

    asked by Bharath Reddy

    2 min read5 chapters

    Detailed Narrative

    01

    H1 FY26 Financial Performance and Margin Expansion

    RNFI Services reported a 2.9% revenue growth for H1 FY26, alongside a significant 61.3% increase in net PAT margin, reaching 6.5% for non-forex businesses. This margin expansion was primarily driven by a strategic shift towards higher-margin products, effectively offsetting a INR 30 crores decline in the DMT business due to regulatory changes. The company achieved a PAT of INR 14.55 crores in H1 FY26, closely aligning with its internal anticipation of INR 15 crores.

    02

    Strategic Initiatives and New Product Launches

    The company made substantial progress on strategic initiatives, including securing an AD-II license and ISNP approval from IRDAI. Four new products are in the process of launching, with three already live, covering cash management, motor insurance, and air ticketing. The Reli Money forex platform is in a pilot phase and expected to launch fully next month, while the RNFI money portal, having received AD-II, is set for launch in 2-3 months. These initiatives are aimed at diversifying revenue streams and leveraging new market opportunities.

    03

    Regulatory Impact and Business Adjustments

    The DMT business experienced a significant decline of INR 30 crores in H1 FY26 due to regulatory changes, which management confirmed has already been absorbed and is not expected to have further impact. In Payworld, the active agent base was consolidated from 60,000 to 40,000, a move attributed to reducing excessive field costs and improving profitability. While this temporarily lowered ARPU, management is actively working to improve it.

    04

    Capital Allocation and Funding Strategy

    RNFI Services confirmed that INR 25 crores of its IPO funds remain unutilized, strategically allocated for working capital to support new business ventures such as the CRA business, AD-II license requirements for cross-border remittances, and expanding the insurance segment. Paysprint successfully raised funds at a valuation of INR 120 crores, and the promoters completed the transfer of shares to a trust, underscoring their commitment to the company's long-term growth.

    05

    Outlook and Growth Drivers

    Management anticipates considerable revenue growth from new products and expects PAT margins to increase further. The forex business is projected to show 'exceptional progress' from Q1 FY27, with scaling up beginning in Q4 FY26. Payworld is targeted to become 'very profitable' by Q4 FY26. The company's strategy involves continuous integration of AI and technology to reduce manpower and enhance profitability, alongside expanding its client base, which has grown from 5 in 2021 to 112 in 2026.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.