Overall Performance and Context

The company reports a return to growth in Q2 FY27 after a slow Q1, though growth remains calibrated due to environmental risks. Management expresses confidence in delivering a profitable FY27 based on Q2 core revenue momentum.

Composite Scheme Update

All required approvals for the Composite scheme have been completed as directed by the NCLT, including shareholder and creditor approvals. The company awaits final NCLT approval to implement the scheme. Previous approvals were received from SEBI, BSE, and RBI.

iServeU Business Performance

  • Q2 FY27 Net Revenue: ₹18.1 Cr, showing recovery from Q1
  • Business model transition from bank-led to aggregator-led model for UPI acquiring has stabilized with significantly improved volumes
  • Order book remains strong at approximately ₹546 Cr
  • Soundbox deployments reached approximately 600,000 units
  • Logistics issues from West Asia situation caused longer delivery times for devices, resulting in reduced deployment this quarter
  • Partnership with Indian manufacturers has begun to ease supply chain issues
  • Structural change to SaaS business continues: recurring revenues increased from ₹5 Cr last quarter to ₹6 Cr this quarter

NBFC Business Performance

  • Maintained measured performance in high-risk environment
  • Focus on calibrated portfolio growth, disciplined underwriting, and partnership-led lending
  • Q2 FY27 PBT (Ex-ESOP): ₹(1.4) Cr
  • AUM (including off-book exposure): ₹270 Cr
  • Debt-to-equity ratio maintained below 1.0
  • Announced strategic credit and sourcing partnership with Sammaan Capital for up to ₹500 Cr through financing, portfolio buyouts, and digital lending synergies
  • FY27 AUM target: ₹400-425 Cr (muted to reflect environment)

Consolidated Financial Highlights

  • Net Revenue**: ₹23.9 Cr in Q2 FY27 (8% QoQ growth from ₹22.1 Cr in Q1 FY27)
  • PBT (Ex-ESOP): ₹(4.4) Cr in Q2 FY27 (25% improvement from ₹(6.0) Cr in Q1 FY27)
  • Gross Income: ₹65.0 Cr in Q2 FY27 (-3% QoQ from ₹66.8 Cr)
  • EBITDA: ₹1.4 Cr in Q2 FY27 (544% QoQ growth from ₹0.2 Cr)
  • PBT: ₹(4.6) Cr in Q2 FY27
  • ESOP expense: ₹0.2 Cr in Q2 FY27

**Note: Net Revenue is defined as Gross Income, net of partner payouts, funding costs, and credit costs

Comparative Financial Performance

| Consolidated (in ₹ Cr) | Q2FY27 | Q1FY27 | QoQ (%) | Q2FY26 | YoY(%) | FY26 |

| Gross Income | 65.0 | 66.8 | -3% | 75.1 | -13% | 307.8|

| Net Revenues** | 23.9 | 22.1 | 8% | 25.9 | -8% | 106.0|

| EBITDA | 1.4 | 0.2 | 544% | 4.9 | -72% | 19.9 |

| PBT | (4.6) | (6.2) | -25% | 0.9 | NM | 3.4 |

| ESOP | 0.2 | 0.2 | 0% | 0.2 | -15% | 1.3 |

| PBT (Ex-ESOP) | (4.4) | (6.0) | -25% | 1.2 | NM | 4.7 |

Outlook and Strategy

The company expresses confidence that strategic initiatives, partner-first approach, and strong execution capabilities will support continued progress. The transition to SaaS model for iServeU is expected to continue driving recurring revenue growth in coming quarters.