Protean eGov Technologies Limited – Investor Presentation Summary

Key Operational Highlights

  • Issued over 1 crore PAN cards in Q1FY27 with market share increasing to 62% from 59% in FY26
  • Onboarded over 1,000 new corporates in CRA Services, highest in a single quarter
  • Onboarded 3.9 million subscribers in CRA Services, capturing 95% of incremental subscriber additions
  • NPS Vatsalya: >78,000 new subscribers onboarded in Q1FY27, taking total base over 2 lakh
  • RISE with Protean processed >3.4 crore transactions in Q1FY27
  • 102 Aadhaar Seva Kendras operational across 25 States and UTs as of July 2026

Key drivers of operational performance: Regulatory changes in PAN documentation norms effective April 1, 2026; continued momentum from Digital India initiatives; successful rollout of RFP-led mandates

Segment-wise Performance

  • Tax Services: Revenue ₹100 crore (flat YoY, -44% QoQ)
  • CRA Services: Revenue ₹82 crore (+7% YoY, +5% QoQ)
  • Identity Services: Revenue ₹27 crore (+16% YoY, +16% QoQ)
  • Others/New Initiatives: Revenue ₹42 crore (+276% YoY, +45% QoQ)

Explanation of significant changes in segment performance: Tax Services remained stable despite industry-wide decline due to regulatory changes; New Initiatives showed strong growth driven by value-added solutions

Financial Highlights

Revenue: ₹251 crore

EBITDA: ₹28 crore

PAT: ₹6 crore

EBITDA Margin: 10.4%

PAT Margin: 2.2%

YoY comparison: Revenue +19%, EBITDA -38%, PAT -75%

QoQ comparison: Revenue -18%, EBITDA -48%, PAT -81%

Drivers of financial performance: Upfront investments of ~₹18 crore for RFP-led mandates; higher procurement costs due to geopolitical tensions; costs incurred ahead of revenue realization

Normalized EBITDA (excluding investments): ~₹46 crore with 17.2% margin

Key Risks: Geopolitical tensions impacting procurement costs; timing mismatch between cost incurrence and revenue realization

Geographical Revenue Split

Domestic vs Export/Regional Revenue: Not Specified

Balance Sheet Snapshot

Net Debt/Equity: Not Specified

Reserves: Not Specified

Current Assets/Liabilities: Not Specified

Working Capital/Leverage Metrics: Not Specified

Financial Health Insights: Not Specified

Capex & Cash Flow Health

Capital Expenditure: Not Specified

Free Cash Flow: Not Specified

Operating Cash Flow: Not Specified

Net Debt Movement: Not Specified

Investment Rationale: Implementation of multiple RFP-led mandates including CKYCRR 2.0, Bima Sugam, Aadhaar Seva Kendras, Agri Stack

Strategic & R&D Initiatives

Investments in Innovation: AI-native products atop DPI rails; DPI-in-a-Box solutions; comprehensive API stack; sovereign cloud services

Expected impact on growth: New initiatives contributed 17% of total revenue in Q1FY27 vs 10% in FY26

Strategic Rationale: Monetizing AI-powered intelligence layer; globalizing India DPI and enterprise tech capabilities; solution-led approach with bundled API stack

Industry Trends & Business Environment

Macro/Industry Trends: India's population >148 crore with over 60% outside major urban centers; median population age below 30 years; digital payment users at 50 crore (34% penetration) with 30% YoY growth; 11X growth in non-cash transactions from FY21 to FY26; internet penetration at 72% (107 crore users); QR code deployments rose ~92% YoY in FY25

Impact on Company: Positioned to benefit from India's digital growth story through DPI and e-governance solutions

Management Commentary & Growth Outlook

Strategic Outlook: "Execution will be key with a sharp focus on high-margin businesses and product profitability. We will look at monetizing AI powered Intelligence layer adjacent to our core DPI infrastructure, recalibrate and optimise our product and business strategy, drive efficiencies through cost rationalisation and AI adoption across the organisation. Most importantly, we will work aggressively on globalising our India DPI and Enterprise tech capabilities in relevant geographies."

FY Guidance: Not Specified

Market Share Targets: Not Specified

Risks and Opportunities: Not Specified

Immediate Strategic Priorities

  • Grow the Core Businesses: Accelerate CRA Business; deepen share in Tax and Identity services; deliver on RFP mandates
  • Margin Expansion: Double down on high margin products; cost optimization; product rationalization; AI-enabled efficiency
  • Harness the Intelligence Layer: AI-native products and DPI-in-a-Box solutions for domestic and international markets
  • Scale International Business through Partnerships: Retiral Solutions, DPI-in-a-Box solutions, API stack for BFSI
  • Scale Adjacencies through Sectoral Penetration: Solution-led approach via bundled API Stack
  • Strategic Inorganic Acquisition: Explore acquisitions for revenue/margin/product suite/market share expansion