Key Financial Performance Q2FY27

Revenue Performance

  • Revenue from operations: ₹271 crores, representing 8% year-on-year growth
  • H1FY27 revenue: ₹522 crores, representing 13% year-on-year growth

Segment-wise Revenue Breakdown

  • Tax Services: ₹121 crores (13% YoY growth, 22% sequential growth)
  • CRA Services: ₹80 crores (2% YoY growth)
  • Identity Services: ₹27 crores (24% YoY growth)
  • New Initiatives: ₹42 crores (16% of total revenue)

Profitability Metrics

  • EBITDA: ₹43 crores (EBITDA margin of 15%)
  • Normalized EBITDA (excluding RFP project investments): ₹53 crores (22% YoY growth, EBITDA margin of 18%)
  • Profit After Tax: ₹16 crores (PAT margin of 6%)
  • Normalized PAT (excluding RFP investments): ₹24 crores (PAT margin of 8%)

H1FY27 Financial Performance

  • EBITDA: ₹71 crores (EBITDA margin of 12.8%)
  • Normalized EBITDA: ₹99 crores (12% YoY growth, EBITDA margin of 18%)
  • PAT: ₹22 crores (PAT margin of 4%)
  • Normalized PAT: ₹44 crores (PAT margin of 8%)

Strategic Investments and One-time Costs

  • ₹10 crores invested in Q2FY27 towards implementation of strategic RFP projects (CERSAI CKYCRR 2.0 and UIDAI Aadhaar Seva Kendra)
  • ₹28 crores invested in H1FY27 for these projects
  • Investments reflected in increased employee costs and other expenses
  • Management indicated these are upfront investments with revenue accrual to follow

Business Performance Highlights

Tax Services Business

  • Grew 13% YoY to ₹121 crores
  • Market share increased to 65.8% (330 basis points sequential increase, 780 basis points YoY increase)
  • Issued 1.3 crore PAN cards in Q2, with 70% through assisted mode
  • Distribution network spans 18,000 PIN codes across India

CRA Service Business

  • Onboarded 4.7 million new subscribers (15% YoY growth), representing 95% of all new subscribers in CRA ecosystem
  • Onboarded 1,400+ new corporates (highest-ever quarterly corporate onboarding)
  • Combined market share across NPS, APY, and UPS: 97%
  • NPS Vatsalya: Added ~1.5 lakh subscribers (highest-ever quarterly addition)
  • Transitioned to AUM-linked charge structure for recurring revenue

Identity Service Business

  • 24% YoY revenue growth driven by 26% volume growth across all four digital identity facets
  • Only company offering all four foundational identity services under one roof
  • RISE with Protean API stack processed 3.3 crore transactions in the quarter
  • eSignPro signed 25+ new enterprise customers in first quarter of full monetization

New Initiatives

  • Contributed 16% of total revenue in H1FY27 (vs 12% in H1FY26)
  • 56% YoY growth in H1FY27
  • Project-led revenue making quarterly numbers lumpy

Operational Updates

Aadhaar Seva Kendra Project

  • 150 centers open till September 2026
  • 187 out of mandated 192 centers live as of October 2026
  • Major investments largely completed
  • Expected revenue to exceed costs over next couple of quarters

CERSAI CKYCRR 2.0 Mandate

  • Modernizes sovereign record of financial identity
  • Nearing implementation completion
  • 20+ mandates already signed, 30+ in immediate pipeline

AgriStack Initiative

  • Built for Ministry of Agriculture
  • 11 crore Farmer IDs created ahead of schedule
  • Integrates farmer, land, soil, and crop records
  • Potential TAM of ₹9,000-11,000 crores annually for agri credit

Balance Sheet and Cash Position

  • Zero debt position maintained
  • Cash and marketable securities: ~₹750 crores as of September 30, 2026
  • Property, plant and equipment increased from ₹63 crores (March 2026) to ₹150 crores (September 2026) due to ASK project investments
  • DSO increased from 64 days to 93 days primarily due to project receivables

Strategic Priorities Outline

Pillar 1: Deepening Core DPI Capabilities

  • Strengthening trusted platforms (Tax, Pension, Identity)
  • Extending newer foundational rails across sectors (insurance, agriculture, health, education)
  • Market share gains across PAN, CRA, and Identity services

Pillar 2: Enterprise Bundled Solutions

  • Moving from API-led stack to journey-led solutions
  • Integrating identity, verification, consent, data analytics, documentation, and compliance
  • Signed 20+ mandates with 30+ in pipeline
  • Pricing model shift from per API call to per journey/outcome

Pillar 3: Global DPI Expansion

  • "DPI in a Box" approach for international markets
  • Modular, interoperable, configurable stack for governments
  • Partnership-led, capital-light approach
  • Working with multilateral institutions, consultants, and sovereign counterparts

AI and Cost Optimization Initiatives

  • Deployed automation and advanced validation tools across core operations
  • Reduced dependency on external partners
  • Redeployed resources towards new projects
  • Immediate cost savings achieved
  • Exploring AI across all functions with three objectives: improve productivity, rationalize cost, upgrade skills

Market Opportunity Assessment

Pension Ecosystem

  • Pension coverage in India below 7% vs 70% in US/Europe
  • NPS ecosystem projected to reach 40 crore subscribers over next 5 years
  • AUM expected to reach ₹100 lakh crores by 2040
  • New schemes launched: NPS Vatsalya, e-Shramik, NPS Sanchay, NPS Swasthya, NPS Central

Revenue per Subscriber

  • Ranges from ₹100 to ₹500 based on corpus maintained
  • ₹40 per account opening fee

Capital Allocation Strategy

  • Rigorous approach to capital allocation
  • Evaluating portfolio and prioritizing investments with strongest potential
  • Cash reserves to be used for technology upgrades, international expansion, strategic growth initiatives
  • Open to inorganic acquisitions that complement product line, revenue line, customer line, or international expansion
  • Continued dividend payments to shareholders

Management Commentary

  • Major RFP investment phase largely completed
  • Better predictability on revenue and margins expected in coming quarters
  • Core franchises extending leadership while new businesses contributing higher revenue share
  • Focus on commercial execution and capital discipline
  • Confidence in tangible progress from new strategic initiatives in coming quarters

Participants in Conference Call

Management Team:

  • Mr. Ajay Rajan – Managing Director and Chief Executive Officer
  • Mr. V. Easwaran – Whole-Time Director and Chief Operating Officer
  • Mr. Rakesh Dosi – Chief Business & Product Officer
  • Mr. Sandeep Mantri – Chief Financial Officer
  • Ms. Pushpa Mani – Head, Investor Relations, ESG & CSR

Analysts Participating:

  • Mr. Parimal Mithani from Credential Investments
  • Mr. Bajrang Bafna from Sunidhi Securities
  • Mr. Deepak Agrawal from Param Capital
  • Mr. Vinil Shah from Dalal & Broacha
  • Mr. Saurabh Jain from Sunidhi Securities
  • Mr. Akshit Shetty from Family Office

Forward-looking Statements Disclaimer

Management indicated that some statements in the discussion may be forward-looking in nature and involve risks and uncertainties that may lead to different results.