Financial Performance Highlights

Q2FY27 Performance (₹ crore)

  • Revenue from Operations: ₹271 crore, up 8% YoY (Q2FY26: ₹251 crore)
  • Other Income: ₹19 crore, up 31% YoY
  • Total Income: ₹290 crore, up 9% YoY
  • EBITDA: ₹43 crore, down 1% YoY (Q2FY26: ₹44 crore)
  • EBITDA Margin: 15.0% (down 158 bps YoY from 16.6%)
  • Profit Before Tax: ₹21 crore, down 34% YoY
  • Tax: ₹5 crore, down 41% YoY
  • Profit After Tax: ₹16 crore, down 31% YoY (Q2FY26: ₹24 crore)
  • PAT Margin: 5.7% (down 334 bps YoY from 9.0%)

Segment-wise Revenue Q2FY27 (₹ crore)

  • Tax Services: ₹121 crore, up 13% YoY
  • CRA Services: ₹80 crore, up 2% YoY
  • Identity Services: ₹27 crore, up 24% YoY
  • New Initiatives: ₹42 crore, down 2% YoY

H1FY27 Performance (₹ crore)

  • Revenue from Operations: ₹522 crore, up 13% YoY (H1FY26: ₹461 crore)
  • Other Income: ₹35 crore, down 20% YoY
  • Total Income: ₹556 crore, up 10% YoY
  • EBITDA: ₹71 crore, down 20% YoY
  • EBITDA Margin: 12.8% (down 480 bps YoY from 17.6%)
  • Profit Before Tax: ₹29 crore, down 55% YoY
  • Tax: ₹7 crore, down 60% YoY
  • Profit After Tax: ₹22 crore, down 53% YoY (H1FY26: ₹48 crore)
  • PAT Margin: 4.0% (down 546 bps YoY from 9.5%)

Segment-wise Revenue H1FY27 (₹ crore)

  • Tax Services: ₹221 crore, up 7% YoY
  • CRA Services: ₹161 crore, up 5% YoY
  • Identity Services: ₹55 crore, up 20% YoY
  • New Initiatives: ₹84 crore, up 56% YoY

Key Financial Notes

  • Q2FY27 margins impacted by upfront investments of ₹10 crore towards implementation of key RFP projects
  • Excluding one-time investments, Q2FY27 EBITDA would have been ₹53 crore (22% YoY increase) with 18% margin
  • PAT excluding investments would have been ₹24 crore with 8% PAT margin
  • Q1FY27 was impacted by ~₹18 crore investments in RFP mandates and cost inflation from geopolitical tensions
  • Company maintains strong liquidity position with ~₹750 crore cash & cash equivalents including marketable securities
  • Zero debt position maintained

Balance Sheet Position (as of September 30, 2026)

  • Total Assets: ₹1,512 crore (Mar'26: ₹1,474 crore)
  • Tangible Assets: ₹150 crore (Mar'26: ₹63 crore)
  • Right-of-use/Intangible Assets: ₹155 crore (Mar'26: ₹122 crore)
  • Financial Assets: ₹514 crore (Mar'26: ₹610 crore)
  • Cash and Bank: ₹185 crore (Mar'26: ₹187 crore)
  • Trade Receivables: ₹266 crore (Mar'26: ₹205 crore)
  • Shareholder's Equity: ₹1,063 crore (Mar'26: ₹1,077 crore)
  • Total Liabilities: ₹449 crore (Mar'26: ₹396 crore)

Strategic Business Updates

Core Business Positioning

  • Over 3 decades experience in building Digital Public Infrastructure (DPI)
  • Enabled 21+ nationally critical e-Governance stacks working with multiple ministries
  • Leader in providing Tax Services and Retiral Services
  • Sole entity providing all four foundational Identity Services (e-Sign, e-KYC, Aadhaar Auth, OPV)
  • Building Aadhaar Seva Kendras across India

Market Opportunity

  • India's population >148 crore; over 60% outside major urban centers
  • Digital payment users at 50 crore (34% penetration), 30% YoY growth
  • 11X growth in non-cash transactions from FY21 to FY26
  • 45% YoY growth in digital loans originated
  • Internet penetration at 72% (107 crore users)
  • QR code deployments rose ~92% YoY in FY25, with over 75% new installations in Tier-2/3 cities

Immediate Strategic Priorities

1. Grow Core Businesses: Accelerate CRA Business; deepen share in Tax and Identity services; deliver on RFP mandates (CKYCRR 2.0, Bima Sugam, Aadhaar Seva Kendras, Agri Stack)

2. Margin Expansion: Focus on high margin products, cost optimization, product rationalization, AI-enabled efficiency

3. Harness Intelligence Layer: AI-native products atop DPI rails and DPI-in-a-Box solutions

4. Scale International Business: Retiral Solutions, DPI-in-a-Box approach, API stack for BFSI through partnerships

5. Scale Adjacencies: Curated bundled services through solution-led approach

6. Cost & Process Efficiencies: Leverage AI for operational efficiency, technology upgradation, cyber preparedness, insourcing & knowledge transfer

Global Expansion Strategy

  • Taking India's DPI to the world through "DPI-in-a-Box" approach
  • Modular, interoperable and secure digital infrastructure stack to accelerate national digital transformation
  • Targeting multiple sectors: Tax + Retirals + Identity + Central KYC + Insurance + Digital Commerce + Agriculture + Education + Health

Enterprise Digital Ecosystems

  • End-to-end onboarding journeys using customizable API stack (RISE with Protean)
  • Digital Signing & Stamping, Digital Documentation Workflow Stack (eSign Pro)
  • Cloud Services with MeitY, PCI-DSS, SOC, ISO, HIPPA certifications
  • Solution-led approach with bundled products for comprehensive multi-sectoral journeys
  • Lending, Insurance & Investment journeys for Regulated Enterprises

Management Commentary

MD & CEO stated that Q2 marks an important milestone with two key RFP mandates nearing completion. Investments for these mandates are largely behind, entering H2 with stronger base, more predictable revenue mix, and clear line of sight to improved operating leverage.

Priorities include deepening DPI 2.0 capabilities, driving enterprise growth through AI-led bundled solutions, and taking India's DPI model to global markets. Company remains focused on commercial execution and disciplined capital allocation.

Forward-looking Statements

The presentation contains forward-looking statements involving risks and uncertainties regarding fiscal policy, competition, inflationary pressures, climate and general economic conditions affecting demand/supply and price conditions.