Q2 FY27 Quarterly Performance Overview

Q2 FY27 reflected a mixed operating performance. Consolidated Net Revenue was ₹23.9 Crore, an ~8% sequential rise from ₹22.1 Cr in Q1 FY27. Consolidated EBITDA improved during the quarter. The NBFC's Assets Under Management (AUM), including off-book exposure, stood at ₹270 Cr, a 19% decline from ₹332 Cr in Q1 FY27. Soundbox deployments reached 61K, a ~25% growth from ~49K in Q1 FY27.

iServeU Subsidiary Performance

iServeU recorded sequential growth. Q2 Net Revenue was approximately ₹18.1 Cr, a ~15% improvement from ₹15.8 Cr in Q1 FY27.

Reported PBT loss was approximately ₹(3.4) Cr, narrowing from a loss of ₹(5.6) Cr in Q1 FY27 (an improvement of ~₹2.2 Cr).

Reported EBITDA was approximately ₹2.5 Cr, up from ₹0.7 Cr in Q1 FY27. Adjusted EBITDA was approximately ₹1.2 Cr, up from ₹(0.5) Cr in Q1 FY27.

The order book stands at ₹546 Cr. Near-term priorities include improving monetization of existing contracts, expanding recurring technology income, and managing the cost structure.

Financial Breakdown (iServeU):

  • Gross Revenue: ₹34.3 Cr (QoQ: +8%, YoY: -15%)
  • Net Revenue: ₹18.1 Cr (QoQ: +15%, YoY: +5%)
  • Program Management: ₹7.4 Cr (QoQ: +54%, YoY: -2%)
  • TSP/SaaS: ₹9.3 Cr (QoQ: +2%, YoY: +142%)
  • Other operational income: ₹1.4 Cr (QoQ: -27%, YoY: -76%)
  • Employee expenses: ₹5.4 Cr (QoQ: 0%, YoY: +10%)
  • IT expense: ₹3.4 Cr (QoQ: -8%, YoY: +5%)
  • Reported PBT: ₹(3.4) Cr
  • Depreciation & amortisation: ₹2.6 Cr (QoQ: -7%, YoY: +106%)
  • Finance cost: ₹3.3 Cr (QoQ: -5%, YoY: +59%)

Operational Metrics (iServeU):

  • Recurring SaaS Revenue: ₹6.0 Cr in Q2 FY27 (vs ₹5.0 Cr in Q1 FY27), representing 65% of total TSP/SaaS revenue.
  • UPI Gross Transaction Value (GTV): ₹1,134 Cr in Q2 FY27 (vs ₹703 Cr in Q1 FY27).
  • Cumulative Soundbox Installations: ~600K units.

NFL (NBFC) Standalone Performance

The NBFC business reported a reduction in portfolio size and a loss for the quarter.

Reported Loss PBT was approximately ₹(1.6) Cr, compared to a PBT of ₹0.8 Cr in Q1 FY27. PBT excluding ESOP cost was approximately ₹(1.4) Cr, compared to ₹1.0 Cr in Q1 FY27.

Net Revenue was approximately ₹5.2 Cr, down from ₹7.3 Cr in Q1 FY27.

Net Interest Income (NII) was ₹8.3 Cr, down from ₹10.2 Cr in Q1 FY27.

Pre-provisioning operating profit was ₹1.7 Cr. Credit cost was ₹3.1 Cr.

The Gross NPA (GNPA) stood at 8.9%.

Lending activity continues to be assessed against available liquidity, funding economics, and portfolio-level risk. The immediate focus is on securing appropriate funding arrangements and deploying capital efficiently.

Financial Breakdown (NFL Standalone):

  • Gross Income^: ₹22.7 Cr (QoQ: -24%, YoY: -14%)
  • Net Interest Income: ₹8.3 Cr (QoQ: -19%, YoY: -15%)
  • Pre-Provisioning Operating Profit: ₹1.7 Cr (QoQ: -57%, YoY: -55%)
  • Credit Cost^: ₹3.1 Cr (QoQ: +6%, YoY: +68%)
  • PBT Ex-ESOP: ₹(1.4) Cr
  • ESOP Cost: ₹(0.2) Cr
  • *AUM:** ₹269.8 Cr (QoQ: -19%, YoY: -21%)
  • Borrowings: ₹89.7 Cr (QoQ: 0%, YoY: -11%)

^Adjusted for FLDG invoked. *Including off-book exposure.

Operational Metrics (NFL):

  • Lifetime Loans Processed: 3 Lakh (up 4% from 2.9L in Q1 FY27)
  • Total API Hits: 1.2 Crore

Performance vs Guidance

Q2 FY27 performance remained below previously communicated guidance expectations.

| Parameters | Q2 Actual | Q2 Guidance | Commentary |

| iServeU – Net Revenues | ₹18.1 Cr | ₹21–24 Cr | Quarterly revenue below estimate notwithstanding sequential improvement. |

| iServeU – Adjusted EBITDA (%) | 6.8% | 20–25% | Operating profitability improved from Q1 but remained below the guided range. |

| NBFC – AUM* | ₹270 Cr | ₹325–340 Cr | The portfolio contracted during the quarter, resulting in AUM below expectations. |

| NBFC – PBT** | ₹(1.4) Cr | ₹0.8–1.1 Cr | Lower net interest income and operating profitability affected the quarterly result. |

Including off-book exposure. *Ex-ESOP.

FY27 Outlook and Guidance

The company provided estimates for Q3 FY27 and the full fiscal year FY27.

| Guidance metric | Q3 FY27 Estimate | FY27 Estimate | FY26 Actual | FY27 YoY |

| iServeU net revenue | ₹20–25 Cr | ₹80–100 Cr | ₹74.7 Cr | 1.1x–1.3x |

| iServeU adjusted EBITDA margin | 20–25% | 20–25% | 22.4% | – |

| NBFC AUM incl. off-book | ₹325–340 Cr | ₹400-425 Cr | ₹352 Cr | 1.1x–1.2x |

| NBFC PBT excl. ESOP | ₹0.5–1.0 Cr | ₹3–5 Cr | ₹6.6 Cr | - |

Delivery is stated to depend on the pace of customer implementation, revenue realisation, funding availability, and prevailing business conditions.

Strategic Priorities

The Group's immediate priorities are differentiated by business.

iServeU:

1. Revenue Conversion: Convert contracted opportunities into active, revenue-generating engagements.

2. Technology-Led Revenues: Develop recurring SaaS and expand the technology-led revenue base.

3. Operating Efficiency: Improve utilisation of existing infrastructure and operating leverage.

4. Business Development: Progress institutional partnerships with banks, payment institutions, and other partners.

NFL (NBFC):

1. Liquidity Access: Secure appropriate funding arrangements to support the lending book.

2. Capital Deployment: Deploy capital efficiently across the lending book.

3. Partner-Led Origination: Originate lending through partners, as funding capacity permits.

4. Prudent Credit Selection: Credit selection and active portfolio monitoring.

Consolidated Financials

| Statement(₹ P&L Cr) | Q2 FY27 | Q1 FY27 | QoQ (%) | Q2 FY26 | YoY (%) |

| Gross Income | 65.0 | 66.8 | -3% | 75.1 | -13% |

| Net Revenue* | 23.9 | 22.1 | 8% | 25.9 | -8% |

| EBITDA | 1.4 | 0.2 | 544% | 4.9 | -72% |

| PBT (before exceptional item) | (7.1) | (6.2) | 16% | 0.9 | NM |

| Exceptional Item | 2.5 | - | NM | - | NM |

| PBT Ex-ESOP | (4.4) | (6.0) | -25% | 1.2 | NM |

| PAT | (3.7) | (5.0) | -25% | 0.6 | NM |

*Net Revenue is Gross Income net of partner payouts, funding costs, and credit costs.

Corporate Details

Corporate Office: Neelkanth Corporate IT Park, 311/312, 3rd Floor, Kirol Road, Vidyavihar (w), Mumbai – 400086

Board of Directors mentioned includes Amit Rajpal (Non-Executive Chairman), Gaurav Patankar Kapil Kapoor (Non-Executive Director), Samir Mohan Pandiri (Independent Director), Sudip Thakor (Independent Director), Katarina Racek (Independent Director), Nitin Jaiswal (Independent Director), and Tashwinder Singh (MD & CEO).

Management Team mentioned includes Tashwinder Singh (MD & CEO), Mohit Gang (CEO, MoneyFront), Aakash Sethi (Deputy CEO), Sanket Shendure (President & Chief Product & Growth Officer), Hitesh Jain (Chief Risk Officer), Neha Daruka (Compliance Officer), and Debiprasad Sarangi (CEO, iServeU).

Corporate Structure: Niyogin Fintech Limited holds a 60% stake in Moneyfront, a 100% stake in Niyogin AI, and a 51% stake in iServeU.