Protean eGov Technologies Limited (PROTEAN) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to Protean eGov Technologies Ltd. Q4F526 Earnings Conference Call hosted by GoIndia Advisors, LLP. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please know that this conference is being recorded. I now hand the conference over to Ms. Pushpamani, Head IR of Protein eGov Technologies Ltd. Thank you and over to you.

Thanks. Good evening, everyone. I welcome you all to the Q3 and FY26 results discussion. You must have received the results, press release, and investor presentation of the company, which is available on BSC and MSC, and as well as on the company's website. As usual, we will start the forum with the opening remarks by our CEO and CFO, and then we will open the floor for the question and answer session. If any of your questions remain unanswered, you may reach out to us afterwards. The management on today's call would be represented by Mr. V. Eshwaran, Whole Time Director and CEO, Mr. Rakesh Doshi, Chief Business and Products Officer, Mr. Sandeep Mantri, CFO, and myself, Pushpamani, Head Investor Relations. Before we begin, I would like to mention that some of the statements in today's discussion may be forward-looking in nature and we believe that the expectations contained in these statements are reasonable. However, these statements involve a number of risks and uncertainties that may lead to different results. With this, I invite our MD, Mr. V. Ishwaran, to address you all. Thank you and over to you, sir.

And good evening, everyone, and thank you for joining us today for Protean eGov Technologies earnings call for the fourth quarter and the full year ended 31st March, 2026. India's digital economy continues to witness strong momentum driven by rapid formalization, rising internet penetration, increasing financial inclusion, and continued expansion of digital public infrastructure across sectors. Over the last few years, India has emerged as a global leader in population-scale digital systems with platforms such as UPI, Aadhaar, and Pension, transforming the delivery of financial and citizen services at unprecedented scale. Simultaneously, increasing adoption of digital identity, pension inclusion, and open digital ecosystems across sectors such as insurance, healthcare, and agriculture continue to create large long-term opportunities for technology-led infrastructure providers like Protean. Against this backdrop, SY26 has been a landmark year for Protea. As we continue to strengthen our position as one of India's leading digital public infrastructure companies, our performance during the year reflects the strength of our core businesses, continued market leadership across critical population-scale ecosystems, and our ability to participate meaningfully in India's rapidly expanding digital economy. Coming to our financial performance, FY26 was a milestone year for Protean, as we delivered our highest-ever consolidated revenue from operations of Rs.998 crores, reflecting a strong 18.7% year-on-year growth. EBITDA grew strongly by 27% to 188 crores with EBITDA. Ebitda margins improving to 17.6%. Adjusted profit after tax stood at Rs.105 crores despite continued investments in new growth initiatives. These results demonstrate the resilience of our diversified business model and the increasing relevance of digital infrastructure-led services in India's formalization journey. Turning to our core businesses. Our tax services business continues to deliver strong performance during the year, with revenue growing 17.5% year-on-year to Rs.498 crores. We continue to maintain our leadership in this segment with a 59% market share, issuing more than 4.7 crore PAN cards during F526, with increasing digitization and formalization of the economy. PAN remains a foundational enabler for financial inclusion, compliance, and access to formal financial services. Protean continues to play a pivotal role in this ecosystem by powering secure, scalable, and population-scaled tax identity infrastructure for millions of citizens across the country. Our CR service Business continues to show resilient growth with FY26 revenue growing by 7.5% to Rs.304 crore. The broader pension ecosystem in India is witnessing rapid expansion led by regulatory reforms, increasing awareness, and rising financial inclusion. There is an encouraging 13% growth in subscribers added during the year with more than 1.5 crore new CRA subscribers, capturing 96% of incremental subscriber additions during the year. We also onboarded more than 3,000 corporates. During F526, which is the highest ever annual edition for the company, these numbers In addition to NPS and Sanchai are expected to significantly improve participation from India's informal sector, which constitutes nearly 90% of total workforce. Simplified onboarding, increased flexibility in withdrawals and investment and broader accessibility are expected to accelerate long-term pension adoption across the country. Coming to identity services segment, revenue for FY26 stood at 92%. We continue to see volume growth across most foundational ID products, and we remain optimistic on the long-term opportunity driven by Digital India Initiative's rising digital authentication requirements. Our focus continues to remain on value-added solutions like E-Sign Pro, Rice with Protein, and KYC Search and Report. Our new businesses continued to gain traction during FY26 with revenue from the segment increasing nearly three times year-on-year to Rs. 103 crores. The company continued to strengthen its presence across emerging digital public infrastructure opportunities with strategic RFP projects like Sersai, CKYC, CRR 2.0 and Bhima Sugam. Further, UIDI's Aadhaar Seba Kendra mandate is progressing well and successful rollout of 44 Aadhaar Seba Kendras across 20 states and union territories. Revenue generation from these centers has commenced with early performance in line with expectations. From a financial standpoint, our balance sheet remains extremely strong with healthy cash reserves and zero debt, giving us the flexibility to continue investing in innovation, platform expansion, and new growth opportunities. As we move into FY27, our strategic priorities remain clear. Deepening relationship, Deepening leadership in core DPI ecosystems, expanding pension and social security participation, scaling enterprise and platform-led services, driving operating leverage while continuing strategic investments, and taking India's tag global. As we enter the next phase of growth, I am also delighted to inform that Mr. Ajay Rajan will join us as the managing director and CEO of Protein with effect from 1st June 2026. With his extensive experience across banking, digital transformation and working with fintech ecosystem, we believe Protein is well positioned to further strengthen its leadership in India's evolving digital economy. As we conclude F526, we remain optimistic about the business opportunities ahead for the company, backed by strong fundamentals, deep domain expertise, and a growing portfolio of transformative initiatives. I would like to sincerely thank our team for their dedication and our investors for their continued trust and support. Thank you, and with that, I would now like to hand over to... Our CFO, Mr. Sandeep Mantri, today.

Thank you for joining us today. We reshape the global technology landscape. Thank you. This evaluation aligns strongly with Protein long-term strategic positioning as a trusted digital public infrastructure company managing population scale. With this, now, let me take you to the financial performance for the fourth quarter. I'll talk about quarter and then I'll go to the yearly numbers. So this quarter we have closed. I mean. I will also include What about EBITDA? EBITDA for the quarter is 253 crore. Delta margin expanded by 208 basis point. Existate profit after tax. The Existate profit after tax for the quarter is 231 crores. 5.6%. The number of the quarter relating to implementation of new labour code. Coming to the annual performance, FY26 performance, this year has been a strong year for Protein from both a growth and profitability standpoint. As rightly said by Ishwara, during the call, the call, the call, the call, the call, the We have an operation of 998 crores, which is the highest in the history of the company. Margin expanded by 125 basis points. Keep margin payment healthy at night. Maintain and disciplined approach. Thank you. Outstanding order book. We acquired 4.95% strategic stake in NSDL payment banks with an investment of 30.2 crores. Thank you. Our business model will continue to remain asset light and cash generative. During F526, the company continued to generate healthy operating cash flow, supported by stable collection and working capital management. From a balance sheet standpoint, we remain in a strong financial position. As on March 31, 2026, the company had cash equivalent and marketable security of more than 850 crores and continue to remain completely The payment is long term financial. We will largely will remain on improving. Hello, welcome to the call, and welcome to the call.

To begin the question and answer session, anyone who wishes to ask a question may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We'll take our first question from the line of Rohan from Equirus Security. Please go ahead.

Good afternoon, sir. Thanks for the opportunity. Sir, this 44 crores that you received on storage charges, just want to recheck, this is the same for which we have provided earlier, or is there some other?

This is not the one which we have provided earlier. Whatever we have provided earlier is already collected and last year only we did some reversal of, you know, receivable provisioning. So this is a new income which is towards storage charges as per, you know, contact with the contact department.

So this run rate will continue on an annual basis, 44 crores?

No, this is for a few years. This will not be the run date for, you know, next year. Next year will be a bit lower than this. This is like for two and a half years.

Sure. Sir, second, for the full year, we have done roughly 112 crores, 110 to 112 crores of EBITDA if we exclude the other income. So, if you can help me split the debita between, say, the tax services business, the CRA business, and identity services.

So, Rohan, you are aware that we only declare one segment, and, you know, because of these reasons, I would not be able to, you know, They provide you a bit of business-wise, but having said that, you can definitely, you know, touch base with our investor-related team, and they can guide you, you know, how we model these numbers.

Sure. And on the employee base, like with the other Sivakindra going live, and maybe more Sivakindra that you'll add, how should one think on the employee cost for F527?

So, employee cost for 27 will increase because we'll have to deploy, you know, our employees in 190 sector across the country. So, there will be about, you know, for each center, there is a minimum contextual requirement depending on the type of center. So, the employee cost will definitely, you know, is definitely going to increase, but having said that, this is part of, you know, project revenue and project cost. So you have to, you know, when you are modeling your business model for this business, you have to model, you know, in a way that it gives you, basically, these are direct costs for running the operations.

Right. But ballpark, like, what kind of an increase can we expect on employee cost? Around 65 to 70 crores of an incremental cost, once all the centers go live, would that be a fair assumption?

You know, it would be difficult to give numbers on this, but what I can say is, you know, we will add about 2,000-odd employees for these other centres, and these are mostly, you know, entry-level jobs or, you know, those kind of people. So, you can, you know, roughly calculate those numbers.

Sure, sure. I just wanted an update on PAN 2.0, like, how are we positioned there in terms of our role? And any further clarity on the impact?

So I think PEN 2.0, we stayed where we were earlier, you know. I mean, there is no change as such. Our strengths remain very clear. Whatever we said in the past remains, you know, true for future as well. And we are, you know, working with the department. How will, you know, distribution, we believe that distribution will remain. And therefore, how will distribution prevail in next one and a half year, we'll need to see. I don't think, I think we have an update beyond that. Candish, you may want to add that?

We believe that... This is what during last quarter also, the assessment that we had, and we continue to believe the same.

Sure, so PAN 2.0 is yet to go live from IT department's perspective, right?

Yes, yes, absolutely.

Okay, got it.

I said lastly...

Sorry, yeah. You're saying something?

Yeah, sorry, sorry.

Yeah. Sir, lastly, on the support and maintenance, how... No, sorry, sir, you were adding something. You may please continue.

No, no, no, no. I just responded to your question.

Sure. And, sir, support and maintenance cost of 160 odd crores, like, which businesses are driving most part of this?

Which one you are talking about?

Support and maintenance cost, 160 crores.

System and maintenance, what do you mean? These co-ops are primarily the implementations are basically for project-led businesses, and the system, maintenance, and support is for all the businesses, which is, you know, historically remains in some level. So any addition is primarily because of the project-led businesses, which is Sartai, Mimaso, some of those projects.

Sure, sir. Thanks a lot.

Thank you. We'll take our next question from the line of Bajrang Bafna from Sunidhi Securities. Please go ahead.

Congratulations for a strong set of numbers. So, sir, my first question pertains to rollout of this Aadhaar Seva Kendra. What percentage we have completed by the end of Q4 FY26, and how do we see the rollout in FY27, both in terms of percentage completion and the full revenue rollout-wise? What revenue that you booked in Q4, FY26, and how do we see, you know, this rollout in FY27 also? That will be my first question, sir.

Okay, thank you so much. Okay, let me tell you, Aadhaar Seva Kendra is, as per the RFP terms, it is divided into a few phases, a phase 1, phase 2, and a phase 3. So, total is 189 odd Aadhaar Kendra, yeah, 190, it's 190 Aadhaar Seva Kendra. 34 was supposed to be opened in the phase 1, and further in various phases. And currently, as of now, 44 other Seva Kendras are operational, which is around 23% of the total. Like, out of 190, 44 are operational. And we have started seeing the revenue streams in FY26, F...

I mean, we are not disclosing the revenue for a particular project. Having said that, we have already started monetizing these 34 Adar Seva Chandra, which were, you know, live before March 31st. As of today, we have about 44. Our plan is to go live with all 119 Adar Seva Chandra by September or by October 9th.

By September, October of the FI27, right? 26th only? Okay. And, sir, once the full rollout happens...

So that's what I'm saying. Full-scale revenue we'll see sometime after 3 or 4 months from, you know, maybe in February, March, probably.

Okay, so maybe third quarter will be the first quarter where full, after full rollout, they will see their full revenue potential.

You will see revenue for the old ARAH centers coming in and fourth quarter we should see, you know.

Okay, and sir, what will be, you know, because roughly with this 5-year contract, that number year-wise works out to close to 200 crores. So that will be the right assumption to assume once the all rollout happens, the full rollout happens.

This is what, you know, as per bid estimate, while we have to see how...

Okay, okay, got it. And, sir, any guidance on the working capital cycle which will be involved in this?

No, this is like a managed service project, so there will not be any, you know, working capital gap in this project, means 30 or 60 days you get your money.

Okay, got it. And, sir, this, can we get some odd, once the full rollout happens, close to 20% sort of operating margin? Would that be a right assumption?

I would not be able to disclose the margin for each project, because we are governed under confidentiality clauses with the government contract, and I would not, you know, be able to disclose that.

So, sir, yeah, broadly, if you see the margin trajectory going forward, will that be, you know, like last year we have done close to, let's say, 12 Watt percent, excluding other income. So, how do you see that margin playing out in 27 and 28? So, on a whole past basis. You know, because this year our revenues are definitely going to be high because of this Aadhaar and other RFT.

I would not give a one-year or a one-quarter or two-quarter perspective, but having said that, we said in last year, last-quarter earning call also, and prior to that also, that our aim or our initiative is to improve margin with each passing year. You know, a lot of things place in, you know, margin expansion. Of course, our whole endeavor is to automate more and more, use technology, deploy technology in every, you know, area of activities or operations we are. And, you know, therefore, and high and high margin with each passing, you know, quarter. But guidance would be, you know, guidance on margins remains the same like what we said in the last few quarters. We are, you know, and we endeavor to.

Got it. And, sir, on Bhima Sugam, how do you see traction? Because now IRDA is also talking about a lot. So, how do you see the traction on the ground and building other revenue streams in that area? What is your sense, you know, how this is, as per your expectation, you know, the rollout or the success? If you could guide something on that, it will be really helpful.

Thank you. Thank you. The Bimasulam project with the guidance from the regulator and also the Bimasulam team looks to be very positive. It is now being built to cater to some very interesting areas on the insurance, especially on the health side and the motor side, the way it is going to come out. It's also expected to increase the insurance penetration within the country. That's one of the key mandates and make it affordable. Therefore, we believe that beyond the project also there are some adjacencies that in due course would open up, which we are exploring.

Okay. So, so far your, you know, your, this, basically, versus the delivery. So, I'm just trying to sense, yes, the count, in terms of acceptance in the market, or, you know, the footfalls that are coming on that. So, something if you could cite on that count, you know, will be really appreciated.

It's a, Bhima Shugam platform is a work in progress. Also, given, like I said, the guidances that are coming from Bhima Shugam team, from the entire industry perspective, it's a build-up right now. That platform is in the WIP stage.

Okay. Okay. And when we would take the full rollout of this?

Sorry to interrupt. I request you to join back the queue, please, as we have participants waiting for their turn.

Thank you.

Next question is from the line of Heath Shah from Dalal and Roshah. Please go ahead.

Yeah, thank you for the opportunity. I've got a couple of questions. Firstly, sir, processing charges, if we look at the percentage of the revenue, it comes at 35% for this particular year. Partly of the quarter rate has gone to 32 as well, 36 as well. So, I mean, what percentage can we assume to be a sustainable number? Because it has drastically come down in the last one year. Secondly, my second question is, Sir, how much of the revenues from BIMAS would have come to Versailles and asked have you moved in this particular year and what can one estimate for FY27 and secondly, sir, how much of the revenue has come from organically PAN card issuances? I mean X of... Your one-time, the pan-cut rules which has come from 1st of April, where the pan-cut and other-cut name has to be the same. So, extra of that, what organic growth has come from? So, yeah, these are my questions.

Okay. So, meet first question about processing charges. How do we see processing charges from here? This quarter, it was 35.1%. This year it was 35% Motomota, and 40% was last year. So, I guess processing charges will over in these ranges only, between 35 to 38%. It depends on what kind of, you know, transactions we are doing. If it is online transaction, your processing charges goes down. If it is assisted online, it, you know, goes up further, goes up from, you know, online. And if it is completely physical, then processing charges are heavy. But we have seen the trend that assisted online is the one which is, you know, more prevalent, and therefore the processing charges, you should assume in the same range, which is 35, 38. Your second question, hope that answers your question, right?

Yes, absolutely.

Your second question is on revenue from project services, right? Which is Bhima Sugam or Sarjai or other projects. You are aware that we are not giving... Project-wise, revenues, you know, for the project, turnkey project which we are executing, having said that, you may connect with our investor relations and get some ideas about how these revenues are being booked and approach. Because of other pen linkage, we would not know, because those kind of analytics are not available. So it is, you know, simply we get application, the process application and the pen cards or pen numbers are uploaded by department. So, this, according to us, this whole thing is organic, there is nothing which is inorganic in this. So, this answers all your questions, right? These were the three questions.

Yeah, just to come up on the pan-cut thing, so, I mean, Q400 wouldn't be the one that I can assume it for Q1 FY27, correct? Because the other part, pan-cut linkage was...

No, I don't think we will be able to assume myth on this other pen linkage, how much is because of other pen linkage and how much is because of other pen linkage is one of the event which, you know, triggers the pen card issuance in the country, but I don't think we will be able to assume what number we can allocate, you know, to each of these activities. There are many, you know, triggers which happens on and, you know, every time. What we will get is the total number of pen card issuance in the country. for the final.

Thanks a lot.

Thank you. Next question is from the line of Amnit Mehendare from RoboCapital. Please go ahead.

Thank you. Thanks for the opportunity. So my first question is on Bhima Sugam that when do we expect a platform to go live and on, you know, whenever we go live, do we expect some like significant revenue in that quarter? Because of a milestone getting hit?

The mandate on which the Vimasukam team is working is they have the platform going live and also the products going live. So like I said, the health... And the motor, these are two significant product lines on the inference that they have been mandated to do that. The mandate from a regulator for that to happen is within the next three to four months. That needs to be done or prior to that. So this is also in the domain of how Bhima Sudam would want to kind of communicate it back to the regulator and to the market. So this is all that we could possibly share on this call.

And your second part of the question was on the revenue, right? So these are chunky projects. While milestone is for billing, but the revenues are accounted based on estimated effort to margin basis. So revenue will get recognized whenever we are putting effort into this project. This is what will it take to completely go live. So, therefore, we just estimate the effort and cost and we apply a markup to recognize revenue as a quarter. Having said that, milestone is only a billing thing.

Right, sir. And on this project, there will be also some recurring revenue, right, in terms of maintenance, etc., going forward, once the goal line is done.

Yeah, once the GOLAI happens, there will be a recurring revenue, because these are like 5, 6 or 7 year projects, whether it is Tarsai or Vimasugam or other projects. So, first 2 years normally are the implementation year, and then next 3, 4, 5 years are basically maintaining or providing support to run these projects.

Right, sir, thanks. And my last question is on the cash. You know, we have a significant amount of cash in Vanity. How do we plan to utilize or deploy the cash?

One, as you have heard that we will pay 100% dividend on our share capital, which is about 44 crore. Then we will need money for working capital, and at the same time, we will need to invest in platforms to be future-ready and sustainable, as this is what I talked about in my speech as well. So, these are the three or four areas where we will need money, and we will spend money to grow the business in the future.

Right, sir. That's it from my end. Thank you.

Thank you so much.

Thank you. We'll take our next question from the line of Shyam Chandani, an individual investor. Please go ahead.

Hello, sir. First of all, congratulations for the wonderful result. How do you see your international business going on? If you can just throw some light on what are the quick wins in terms of RFT2 or 2-3 bits?

The international business, as we have already declared in our speech by the CFO, there are certain winds which have already got on the agri business in Ethiopia, and the news will start flowing in. And other parts are all going on. There are a lot of engagements happening in various places across Africa currently. This will start picking up, and we'll start getting more traction.

But, sir, how do you see your revenue growth coming from these businesses, particularly? Any idea on a future prospect, what do you think?

We are very optimistic about our international businesses for sure, but word of caution because right now the decision making in some of these countries is slow because of the war situation or supply chain situation is going on, but we are very optimistic about our, you know, one of our strategies to get this India estate to, you know, global. That is our strategy, and we will continue to work toward that, and we think that international business will be one of the significant, you know, contributors to our revenue in time Any idea, sir, what's worth?

Shah, I request you to join back the queue, please, as we are participants waiting for Thank you. Next question is from the line of Darshil Zaveri from Crown Capital. Please go ahead.

Hello. Good evening, sir. Thank you so much for taking my question, sir. Firstly, congratulations on a great set of results, sir. Sir, I just wanted to ask regarding these storage charges that we had in Q4. I joined the call a bit later. Sorry if it's a repeated question. So this is, I think I heard that this is an annual charge. It's a multi-year charge, but we've taken the revenue in Q4 only. So can you just explain like is this something that we can expect year-on-year to come at this rate or how would it be, sir?

Yeah, no, so this is like, because this has to be accepted by income tax department, then only we book these revenues. Otherwise, you know, there is always a question of collectability. So when income tax department... The document that will need for all the listo is document, this is that we recognize. Coming out of these stories.

So, sir, in terms of nature of this service, so this is something that we are charging on past services, or is this something that, you know, in the future, because from what I understand,

we are charging on storing the document on, you know, for those income tax processing documents, which we are storing, for that we are charging these transaction fees.

So, that's what, so this 44 crore is for, which document storage is done in from, you know, the last full year, right? So, a similar quantum can be expected every year, right?

No, not similar, I would not say similar.

Okay, okay. So, it's something for past two or three years. Okay, got it, sir. And, sir, just in regards to our, you know, Aadhaar, Seva, Pandra setup. So, just wanted to understand, I think we expect by Q4 to, you know, completely have all the centers running. But the cost, like the employee cost, infra sum cost, we'll start, you know, having it before only, right? So, this will dampen our margins a bit going forward? Like, is that a fair assumption? So not I'm saying for the full, maybe not going in the long term, but for this year, because we'll have to start building up the full capabilities, right, and hiring people. So will that affect the margins in the meantime? Because the revenues will not slow and the cost will start.

Yeah, this will be a timing message, I would say, wherein we will be in building phase as well, and, you know, we will be in revenue phase. I would not, you know, be able to comment on this right now because we are yet to test. Water for many of these centers. We would be able to comment. It's very difficult for me to give any numbers right now to, you know, what will be this, how long this timing will be, whether it will be one month, two months, one year, one day, longer, shorter, I don't know.

Okay, okay, fair enough. That's it from my side, sir. Thank you. All the rest.

Thank you so much.

Thank you. Next question is from the line of Parimal Mitani from Credential Investments. Please go ahead.

Yeah, hello, Parimal.

It is not clear. Can you use your handset mode, please, Pariman?

Yeah, yeah.

Yeah, so this is regarding the CNA business. Hello. Yeah, I think the PFRDA has devised charges in terms of certain accounts, and you maintain the AMC charges and all that, and does it benefit us, or how does it go through, and also the second question is in terms of the data stack. How has been the growth been? Because since last two years, we have launched all this. If you can answer the two questions first.

Yeah. So CRA, you want to answer? So CRA, the charges were revised in last quarter. The whole intent of PFRDA is to really grow this pension ecosystem in the country. They want to grow from this level to a very significant level in the next three to five years. And therefore, the charges were aligned with best practices in the industry. There are two or three kinds of charges. One is AM linked for all the private corporate sectors, and for government, they are fixed. And for APY also, there is a fixed fees. Right? So these were the three kinds of charges structure which are prevailing in CRA. Having said that, in long run, I think this will help the industry because this will help the company also because this AMC-based charges system will really help in, you know, once the AMC will always grow and therefore, you know, the revenues also will grow to that extent. And, you know, PFRD has a clear, you know, basically clear mention that they want to grow NPS or pension ecosystem in the country. This is a clear mandate.

So how does it help in terms of a margin, sir, going forward? Because I think it's more of a dynamic pricing that has come into this, and the more additions it has.

I think in long term, in short term, we see some deep in margins, but in long run, I think it will help industry and company because the charges become dynamic with your AMC growing, your subscriber base growing, you will get more and more revenues. So in one or two quarters, you will see revenue or margin start picking up significantly from here for the private sector.

Okay, so it will be margin accredited to us. Is it safe to assume compared to what you're getting in the past two, three years?

In short run, no. In long run, yes.

Okay, okay. And about your data stack business, if you can...

Data state, Kakhesh, would you want to talk about? Yes, so the outlook on the data stack looks to be very positive. On the eSign Pro product, they're seeing now very good traction in funnels. And also the platforms on the RISE and KYC reporting solutions. So that we are seeing a very healthy fraction and from multiple organizations and multiple segments. So that looks to be a very positive area for us.

So can you quantify the growth really much better? Because, you know, I understand the growth is good, but can you quantify how it has been since the time of this launch?

So, when we are talking about data stick, sorry, what's your name? I'm so sorry.

Parimal Mithan.

So when we are talking about data set, we see a very good traction in terms of number of customers, number of transactions, like transactions in rice with proteins are growing significantly, transactions in e-science have started and are growing with each quarter, with each passing day. You know, at least in the next two, three quarters, we see, you know, a very good amount of revenue should come from these data products, which is either E-Sign Pro or, you know, RISE with Protein or, you know, Protein X or some of those, you know, new age initiatives.

Okay.

Thank you.

Thank you. Next question is from the line of Pratap Malibar from Mount Interfinance. Please go ahead.

Yes, please go ahead. Yeah, thanks for taking my question. I just have one classification regarding the BIMAS program project that we had won. I believe it was a hundred-floor kind of project over 72 months. So I just wanted to understand how the revenue recognition works. Have we already recognized some revenues from it or maybe it's going to come and going ahead? I mean, I believe you pointed out that two years of implementation and then support. So could you just help me understand whether these revenues are yet to come in or where it's an existing revenue stream?

No, so some, you know, minimal revenues, I mean, any significant revenues are accounted for in this project, but that is not significant one. I think the implementation revenue will start from this year. Maybe in this year, we will see significant amount of revenue coming from implementation out of this project. And this, once implementation stops, then the maintenance revenue, you know, changes.

Okay, and the 100 crores is for

implementation plus support the entire thing over 72 months. Is that correct?

This is the entire revenue. 100% 100 crores is the entire revenue which is implementation and support for, I think, 4 or 5 years, I guess.

Okay, understood. Yeah, thank you. That's my question. Thank you so much.

Thank you. Next question is from the line of Amit Mehendare from RoboCapital. Please go ahead.

Thank you. Sir, my question is on the storage charges. You know, we have booked 44 crores, and if we're assuming it is for three years, then, you know, the pro data would be, say, 15 crores a year or so. My question is more on the cost. Like, suppose you recognize 45 crores in this quarter, is there no associated cost? And, I mean, because the cost could have been booked in the earlier quarters, or was the cost deferred and then the cost has been matched for this quarter?

We take a back-to-back arrangement. We collect, we pay. So, you know, there will be a matching of revenue and cost. So, in this quarter, if you see, our processing charges have increased because of, one of the primary reasons is because of the cost on storage.

Okay, sir.

Thank you. Next question is from the line of Rohan M. from Equitas Securities. Please go ahead.

Sir, just wanted a clarification on the tax rate. Our tax rate is lower than 25%. So, what is helping us there?

So, you know, tax rate is a consolidated tax rate wherein you have one Dubai entity, then another account aggregator, then there is one Infosec and then this Protein EGO, right? These are the four primary entities. So, Dubai, if the tax rate is low, it will definitely be advantageous. For protein, right? To have a lower, on an overall basis, have a lower tax rate. So, while tax rates, you know, legal tax rate is 25.17, but eventually, you have to come, in consolidated books, you have to combine, you know, all these entities. So, it will be, so, if you see, historically also, we were in 22-23 percent range. We continue to remain in that range. Because of it.

But are we having any meaningful revenues on the Dubai entry right now?

Not meaningful, but even insignificant amount of profit will change the tax rate.

Sure.

Thank you.

Rohan, you're through with your questions, right?

Thank you, Rohan.

Ladies and gentlemen, to ask a question, please press star and run on your phone. We'll take our next question from the line of Shyam Chandani, an individual investor. Please go ahead.

Yes, sir. Sir, just wanted some more clarity on the other revenue business line items like Sarcay, Aadha, Seva, Prima. So you mentioned about you are very optimistic on international business, but what about other revenue line items? How do you see the revenue mix and business growth across these revenue line items?

See, these other revenues are the new businesses which we are talking, right, every time. We have locked many coals. We have 35% of our total revenue in... If you see last year our revenue, I mean the new segment revenue was 4% or 3%, I don't know, but it is now about 10%. So there is a significant increase in the contribution from the new businesses. This is what we are working towards and we are moving in the right direction. It will come from international business, it will come from data stake, it will come from cloud offering, it will come from OD, or you know, the project businesses.

So this is from less than 3% of the grant, 10% plus, this is 3x of growth that we had.

Yeah. Understood.

The direct cost which has been attributable to a firm business in any major revenue...

The direct course is in CRA, PEN, processing course, I think. Processing course will be in CRA, processing course will be in PEN majorly.

Any prospectus, contract, or is it?

I would not be able to guide you on that, but mostly these are platform businesses, whether it is PEN or CRE, both are platform businesses. Both are having similar nature. In PEN, though we have some physical cost, which is distribution. Commission or you know postage charges or some of those elements which you know drives the processing code. In the CRA, we will have lesser processing charges because there it is not like you know distribution of postage every time. It is only sometime in some cases where you know customer has not chosen the green option. We have to dispatch annual statement of account.

Understood.

Helpful, sir. Just, if time permits, my last question. As I can see, the employee cost is largely upon it related to the tech business, but given that PAN 2.0 version, do you see, like, I understand due to Aadhaar Seva King's business is coming in and your employee cost would increase, but any impact due to PAN 2.0 version, would it decrease due to that?

No, so right now, I don't think we have any impact of PEN 2.0. As of today, I think it will continue, PEN business will continue, this is what we believe in, assisted board will continue, this is what we believe in. We'll have to wait and watch, you know, after 12, 15, 18 months, we need to see how distribution pans out in, you know, new PEN ecosystem. Then we'll, you know, need to figure out. Right now, I don't see it. Got it. Thank you so much.

Thank you. Next question is from the line of Heath Asha from Dalalan Procha. Please go ahead.

Yes, so just one data-related question. I was looking at the PPT, and in the CRA services, we've mentioned the APY enrollments have crossed 9 crores in April 26. So, I mean, when I checked, when I went through the APY subscriber base from the website itself, It shows seven and a half crows. So am I missing something?

Push for this side.

Yeah, some of the enrollments that we are speaking about. So, PFRD enrolls people under the APYS scheme, but there are some accounts which becomes dormant or inactive. So, when we take our account, what we show in our investor deck, it is minus the deletions.

Okay, okay, okay. Got it. Fine. Thank you. Yeah, okay.

Thank you. Ladies and gentlemen, we'll take that as the last question for today. I now hand the conference over to Ms. Pushpamani for closing comments. Over to you.

Thanks, everyone, for all your support and joining us. If any queries would have left unanswered, please reach out to us. We'll be very happy to answer. Thank you so much.

Thank you. On behalf of Go India Advisors LLP, that concludes this conference. Thank you all for joining us, and even now, disconnect your lines.