Protean eGov Technologies Ltd Q2 2026 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Het Shah - Dalal & Broacha Stock Broking Private Limited. - Analyst : Yeah, thank you for the opportunity. So the processing charges for this quarter were at about 33%, so I mean, is this a one-off or do we -- can we expect a similar trend to continue or was it on account of a higher share of online PAN issued? That's my first question. Secondly, system support

Question: Het Shah - Dalal & Broacha Stock Broking Private Limited. - Analyst : And sir, any international RFPs that we have won?

Question: Het Shah - Dalal & Broacha Stock Broking Private Limited. - Analyst : Okay, got it. Thank. you. That helps a lot. All the best.

Question: Rohan Mandora - Equirus Securities Pvt Ltd - Analyst : Good afternoon, sir. Thanks for the opportunity. I wanted to understand the ECL expense, like why has it come in this quarter? Because I think the PAN and the tax services related ECL was already taken out earlier. So what led to this ECL? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 07, 2025 / 10:00AM, PROO.NS - Q2 2026 Protean eGov Technologies Ltd Earnings Call

Question: Rohan Mandora - Equirus Securities Pvt Ltd - Analyst : Because other than the tax businesses where we had the receivables from the government, for most other businesses are B2C --

Question: Rohan Mandora - Equirus Securities Pvt Ltd - Analyst : Sure, sir. Sir, secondly, in the RFP business-linked revenue that we are seeing in 2Q going into second half, should we expect a similar quarterly run rate or will there be a further increase on the quarterly run rate on the revenues?

Question: Rohan Mandora - Equirus Securities Pvt Ltd - Analyst : Next, sir, on the identity services, we've seen a Q-on-Q decline in this quarter, again, and it's been flattish in the earlier quarters. So I just want to understand like how should one think on this business going ahead? Will this remain at a similar run rate in terms of absolute revenues or when will this start showing growth?

Question: Rohan Mandora - Equirus Securities Pvt Ltd - Analyst : But sir, from eSign Pro and RISE with Protean, when can we expect the revenue streams to start coming in?

Question: Rohan Mandora - Equirus Securities Pvt Ltd - Analyst : Sure. And lastly, the new initiatives, which we have unveiled at the Global Financial Festival, GFF, like what is the time line that one should look at for them to go live? And what kind of revenue potential do you expect over the next two years?

Question: Rohan Mandora - Equirus Securities Pvt Ltd - Analyst : Sure, sir. And lastly on data giving question, what's the market share in identity services?

Question: Rohan Mandora - Equirus Securities Pvt Ltd - Analyst : Sure. Thank you.

Question: Tanmay Jhaveri - Pinterest Capital - Analyst : Sir, my question was that there has been significant increase in the trade receivables during this half year and which might have led to a sharp in the cash conversion cycle, so can you just throw some light on that whether it's structural or temporary in nature?

Question: Tanmay Jhaveri - Pinterest Capital - Analyst : So we'll also be CFO positive by the end of this financial year?

Question: Tanmay Jhaveri - Pinterest Capital - Analyst : And my next question is, I see a noticeable change in other financial assets, so if you can elaborate what exactly this includes and why there has been sharp movement in this other financial assets?

Question: Tanmay Jhaveri - Pinterest Capital - Analyst : Okay. My last question is on the new age business. If you could just outline what exactly we will be focusing on like what kind of revenues or growth are we looking forward in this line? And what are the kind of margins that we can expect from this core operations of new age business? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 07, 2025 / 10:00AM, PROO.NS - Q2 2026 Protean eGov Technologies Ltd Earnings Call

Question: Tanmay Jhaveri - Pinterest Capital - Analyst : Yes.

Question: Tanmay Jhaveri - Pinterest Capital - Analyst : If you can quantify that in number terms?

Question: Tanmay Jhaveri - Pinterest Capital - Analyst : Okay. Thank you so much, sir. Wish you all the best.

Question: Rishi Maheshwari - AKSA Capital - Analyst : Thank you for taking my question. There are a couple of questions that I wish to understand one from a strategic level. A couple of quarters, until about a couple of quarters ago, we've been speaking largely on the digital public infrastructure that you've been building. One on the insurance side, the ONDC, agritech, health and education. For the last couple of quarters, we've not spoken about it. I wish to understand that what is your vision over there? Is the -- because I believe these are government-led initiatives, and therefore, this is large stack building opportunity that you perhaps would have been involved with. And if there is something over there, which is actively being pursued, if you can throw some light on it, it will be helpful. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 07, 2025 / 10:00AM, PROO.NS - Q2 2026 Protean eGov Technologies Ltd Earnings Call

Question: Rishi Maheshwari - AKSA Capital - Analyst : So all put together, what is the contribution from these initiatives on to our total revenues?

Question: Rishi Maheshwari - AKSA Capital - Analyst : It's a very vast scope of work, which also includes some cloud work, which will also include some data analytics, and therefore, there will be multiple users of the same. What I was more interested to understand is that since we've from what we recollect out of the last couple of years of conversation or the last 1.5 years of conversation, there's a significant time that you have tried explaining in terms of your strategic initiative and your digital prowess towards these initiatives, which can grow in scale, just like how Aadhaar and PAN -- Aadhaar centers have grown. So I'm trying to understand from that perspective, are we looking at these large scale or have we already got meaningful introductions? If this is already within the 12%, which means that this will be a marginally lower proportion of that 12% itself, which means that it's a single digit. So are we looking at scaling up this in a manner to say that at some point in time, this can become 20% of revenue?

Question: Rishi Maheshwari - AKSA Capital - Analyst : I see. So what is the executable period of this order book? Then in that case, this is multiyear executable period of the order book because Aadhaar itself is about INR1,300 crore-odd -- INR1,370 crore of order book, right?

Question: Rishi Maheshwari - AKSA Capital - Analyst : In the remarks to another participant, you mentioned that margins is going to improve from here on. When we're speaking of margins this quarter, you've done about 12% margin. Do you believe that it can improve from 12% that we've registered in this quarter going forward?

Question: Rishi Maheshwari - AKSA Capital - Analyst : So my rough estimate suggests about 15% revenue growth is how I should build in for at least a conservative perspective. And at that, above 12% margin is how we should think about from a growth financial perspective. Am I right on this? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 07, 2025 / 10:00AM, PROO.NS - Q2 2026 Protean eGov Technologies Ltd Earnings Call

Question: Rishi Maheshwari - AKSA Capital - Analyst : Right. So thank you so much. Wish you great luck for the future.

Question: Prem Luniya - Astute Investment Management - Analyst : Hello sir. Sir, I specifically had questions on the Aadhaar project, which we have won. So the other player which has won a significantly larger portion of the same project has mentioned that this can be a 20% EBITDA margin business once it scales once the centers are open. What would you like to say on this number? And do you think it is achievable or is it a high guidance?

Question: Prem Luniya - Astute Investment Management - Analyst : And sir, I wanted to understand how will this business work? Will it be on transaction basis? And if it will be on transaction basis, can you give us a number is there any fixed amount, which will give a receipt out of every transaction?

Question: Prem Luniya - Astute Investment Management - Analyst : But is there any minimum number of transactions, which are in a way assured by the Aadhaar UIDAI?

Question: Prem Luniya - Astute Investment Management - Analyst : Okay, sure, sir. And sir, I wanted to understand the large part of the new business growth, which we have seen this quarter has coming from the new orders which we have got in and not from the in-house capabilities, which we have developed. And you have been saying this that 25% would be the revenue. And I guess in the AGM, you have mentioned that 10% will be out of that 25%, 10% would be from the order book and 15% would be from the new businesses, which we have developed. So can you say that this 15% at what stage will that actually contribute? Because I believe it has not grown as much in the last few years and your employee expense has been growing quite well to grow these businesses.

Question: Prem Luniya - Astute Investment Management - Analyst : Sure, sir. Thank you so much.

Question: Prakash Kapadia - Kapadia Financial Services - Analyst : Yes. A couple of questions from my end. On the PAN services, you issued around 1 crore PAN cards during the quarter and revenues from the segment are down, I think, 10% on a year-year basis (technical difficulty)

Question: Prakash Kapadia - Kapadia Financial Services - Analyst : Yeah, now is it better?

Question: Prakash Kapadia - Kapadia Financial Services - Analyst : I was trying to understand the PAN service businesses, we've issued around 1 crore PAN cards during the year and still revenues are down 10%. So can you explain this decline better? And what kind of revenue growth can we estimate in the next few quarters? That is on the PAN services?

Question: Prakash Kapadia - Kapadia Financial Services - Analyst : But incremental PAN cards issued shouldn't lead to this decline, right? Sandeep from a year-on-year perspective also --

Question: Prakash Kapadia - Kapadia Financial Services - Analyst : We'll take it offline. And on the CRA services, obviously, we have the leadership and that is doing well. So from a potential perspective, is the registered EPFO users a good benchmark to identify the potential? And on the UPS, how large can that become? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 07, 2025 / 10:00AM, PROO.NS - Q2 2026 Protean eGov Technologies Ltd Earnings Call I think it is around 65 lakh state and central government employees. So is that the kind of potential, which can lead to further growth in that segment? And similarly, on the Atal Pension Yojana, what is driving this? And what kind of revenues can we expect?

Question: Prakash Kapadia - Kapadia Financial Services - Analyst : And lastly, if you can share some kind of metrics we need to build in for the Aadhaar Seva Kendra project as we scale maybe in the coming quarter, that will help us understand the dynamics of that business. What kind of a CapEx is done? What is the OpEx, what kind of margins are possible, if you could highlight now or maybe next quarter, that will be helpful?

Question: Prakash Kapadia - Kapadia Financial Services - Analyst : Thank you.

Question: Divij Punjabi - Banyan Tree Advisors - Analyst : Yeah, hi. My question was regarding the other businesses or the new businesses. So you mentioned that the CERSAI and Bima Sugam business have accrued in this quarter. And going ahead, the Aadhaar Seva Kendra also will start accruing. So the system support and maintenance cost that is there, will that continue to increase sequentially? Or is this the figure that we should expect going ahead and the onetime expense is already done?

Question: Divij Punjabi - Banyan Tree Advisors - Analyst : Okay. And the office setup of this will be onetime or will that also increase going ahead?

Question: Divij Punjabi - Banyan Tree Advisors - Analyst : And is it possible to give any indication of the cost breakup of the system support and maintenance?

Question: Divij Punjabi - Banyan Tree Advisors - Analyst : The onetime versus the variable.

Question: Divij Punjabi - Banyan Tree Advisors - Analyst : Okay, sir. Thank you.

Question: Pratap Maliwal - Mount Intra Finance Private Limited. - Analyst : Yeah, hi, thanks for taking my question. So just wanted a clarification. There were some news articles during the rounds that there's been a change in -- regarding the Aadhaar Seva Kendra. So what facility will be provided offline in the Seva Kendra, and then what will be done online in terms of demographic changes and things like that as well as there might have been a change in the pricing structure for related transactions. So can you give any (inaudible) if you got any read on this front?

Question: Pratap Maliwal - Mount Intra Finance Private Limited. - Analyst : And secondly, I believe that there's been a new deadline issued by the government regarding Aadhaar PAN linkage. I think that is to be done by Jan 1. So are you seeing any uptick in terms of that?

Question: Pratap Maliwal - Mount Intra Finance Private Limited. - Analyst : I believe that there's been a new deadline issued by the government in terms of linking PAN with Aadhaar, so does that kind of benefit you in any way?

Question: Pratap Maliwal - Mount Intra Finance Private Limited. - Analyst : Have you seen any of that benefit coming through? Because I believe the deadline is --

Question: Pratap Maliwal - Mount Intra Finance Private Limited. - Analyst : Okay, understood sir thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 07, 2025 / 10:00AM, PROO.NS - Q2 2026 Protean eGov Technologies Ltd Earnings Call