Earnings Call Transcript for Q2&H1FY26
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Protean eGov Technologies reported Q2FY26 revenue from operations of INR 251 crores, up 19% quarter-on-quarter and 14% year-on-year, driven by strong CRA services and new businesses. EBITDA stood at INR 44 crores (16.6% margin, down ~280 bps YoY) and PAT was INR 24 crores (9.1% margin), with margin pressure attributed to investments in RFP-led projects and setting up international offices. The company won a major INR 1,370 crore mandate from UIDAI to set up Aadhaar Seva Kendras across 188 districts, expected to generate INR 200 crore of annual recurring revenue once fully operational. New businesses contributed 12% of H1FY26 operating revenue (vs 4% last year), with management targeting 25% over the next 2-3 years. Balance sheet remains debt-free with INR 800+ crores in cash and marketable securities, and order book stands at INR 1,600 crores (roughly 2x annual revenue).
The UIDAI win is a significant long-term revenue booster providing strong visibility, while the near-term margin compression reflects growth investments rather than structural concerns. Shareholders can expect a step-up in revenue and gradual margin recovery as Aadhaar Seva Kendras commission from Q3FY26 and scale in FY27, though short-term profitability remains under pressure.