Financial Performance - Annual (FY26)

Consolidated revenue from operations reached INR 998 crores, the highest in the company's history, reflecting an 18.7% year-on-year growth. EBITDA stood at INR 188 crores, a robust 27% growth YoY from INR 149 crores in FY25. EBITDA margin expanded by 125 basis points to 17.6%. Adjusted Profit After Tax (PAT) was INR 105 crores with a PAT margin of 9.8%. Earnings per share (EPS) for FY26 was INR 24.8, up 8.6% YoY. The adjusted PAT excludes a one-time statutory impact of INR 0.75 crores relating to the implementation of a new Labor Code.

Financial Performance - Quarterly (Q4 FY26)

Revenue for the quarter was INR 308 crores, a 38% growth YoY (from INR 222 crores in Q4FY25). This includes INR 44 crores recognized as storage charges from the Income Tax Department for a 2.5-3 year period. EBITDA for the quarter was INR 53 crores, up 55% YoY. EBITDA margin expanded by 208 basis points to 16.5% from 14.4% in Q4FY25. Adjusted PAT for the quarter stood at INR 31 crores, a 53% growth YoY, with a PAT margin of 9.6%.

Business Segment Performance

Tax Services Business: Revenue grew 17.5% YoY to INR 498 crores. The company maintained a 59% market share, issuing more than 4.7 crore PAN cards during FY26.

CRA Service Business: Revenue grew 7.5% YoY to INR 304 crores. The company added more than 1.5 crore new CRA subscribers, capturing 96% of incremental subscriber additions. It also onboarded more than 3,000 corporates during FY26, the highest ever annual addition.

Identity Services Segment: Revenue stood at INR 92 crores. The company is focusing on value-added solutions like eSignPro, RISE with Protean, and KYC Search & Reporting Solutions.

New Businesses Segment: Revenue increased nearly 3x year-on-year to INR 103 crores. This segment includes strategic RFP projects like CERSAI CKYCRR 2.0, Bima Sugam, and the UIDAI's Aadhaar Seva Kendra (ASK) mandate.

Strategic Updates & Order Book

The total outstanding order book as of the date stands at more than INR 1,500 crores. Key project wins include:

  • Bima Sugam: A platform for the insurance sector, with implementation expected in the next 3-4 months.
  • Aadhaar Seva Kendra (ASK): A mandate from UIDAI to set up and operate 190 centers. As of the call, 44 centers were operational across 20 states and union territories (23% of total). The company plans to make all 190 centers operational by September-October 2026, with full-scale revenue expected by February-March 2027. The 5-year contract is estimated to generate close to INR 200 crores in revenue.
  • International Project: A strategic mandate to build an AI-powered digital agriculture platform for Ethiopia.

Investments & Acquisitions

The company acquired a 4.95% strategic stake in NSDL Payments Bank with an investment of INR 30.2 crores, aiming to collaborate on digital banking technology.

Balance Sheet & Cash Flow

The company maintains a strong balance sheet with cash equivalents and marketable securities of more than INR 850 crores as of March 31, 2026. It remains completely debt-free. The business model is asset-light and cash-generative, with healthy operating cash flow supported by stable collections and working capital management.

Dividend & Capital Return

The Board recommended a final dividend of 100%, which is INR 10 per share, representing an approximately 40% payout on PAT.

Management Change

Mr. Ajay Rajan will join as the Managing Director and CEO effective June 1, 2026.

Cost Structure & Outlook

Employee benefit expenses increased during the year due to capability building, strategic hiring, and strengthening the execution team for large-scale projects. Other expenses saw calibrated increases linked to infrastructure expansion, technology investment, and project execution. For the ASK project, the company expects to add about 2,000 employees, which will increase FY27 employee costs. Processing charges as a percentage of revenue were 35% for FY26, and management expects them to remain in the 35-38% range. The company aims to improve margins significantly over the next 2-3 years through automation and technology deployment.

Q&A Highlights

  • The INR 44 crore storage charge income is new and not related to previous provisions. It is for 2.5-3 years and will not be the run rate for next year.
  • The company does not provide segmental EBITDA breakdowns.
  • PAN 2.0 status remains unchanged, with the company believing the assisted distribution model will continue.
  • International business is a focus area for future growth, though decision-making in some countries has slowed due to geopolitical situations.
  • The consolidated tax rate is lower than 25% due to the inclusion of entities in Dubai and other jurisdictions.
  • The company targets new businesses to constitute 25% of total revenue in 2-3 years (currently at 10%).