RNFI Services

RNFI Services demonstrated robust profitability in the nine-month period ending Q3 FY26, with EBITDA growing by 46.9% and PAT by 63.3%. This growth was primarily driven by high-margin businesses like delinquent loan collection and EMI collection. Despite this, the company's top-line growth remained stagnant, experiencing a ₹20-25 crores lag due to the significant decline in the DMT business. Paysprint, a subsidiary, contributed approximately ₹70 crores in revenue and ₹3.5 crores in PAT for the 9M FY26 period.

The company launched six new products in Q2 and Q3 FY26, including SprintEXcrow, Xcode, and ContractX, which are already generating revenue or entering beta stages. Successful pilots were conducted for doorstep banking with a scheduled commercial bank, and a motor insurance portal was launched, gaining traction. Additionally, Relimoney bank integrations are complete, with a pilot for remittance and forex business underway, expected to launch full-fledged in the first quarter of next year.

RNFI's growth strategy focuses on leveraging its platform to increase monetization through a diversified product portfolio. This includes increasing the number of products sold per Sahayak by 15% and growing ARPU for RNFI alone by 12-14%. The company is also actively expanding its corporate client base and entering the non-BFSI space aggressively. Management anticipates the loan collection segment to grow more than three times in the coming years.

Regulatory changes, specifically the shift to Aadhaar biometric-based remittances, led to a 75% decline in the DMT (Domestic Money Transfer) business. This change resulted in a ₹20-25 crores lag in top-line growth and is not expected to recover. However, management noted that the profitability of the overall business would increase as the company shifts focus from low-margin, high-revenue DMT to higher-margin offerings.

The company's forex business is undergoing a significant transformation following the AD-II license acquisition. With remittance tie-ups with two banks, a pilot is nearing completion, and a massive kick-off is anticipated in the first quarter of next year. The new remittance model is expected to increase margins massively, with a projected take rate of 1% to 1.5%, as only remittance charges, not currency fluctuations, will be considered.

RNFI emphasizes its platform-based approach, which allows for diversified profitability and scalability. The company has a 90-member in-house tech team actively working on AI initiatives, with significant changes expected in the coming quarters. This technology focus is intended to optimize operations, enhance margins, and provide a competitive edge, particularly in areas like fraud risk management and compliance.