Prithvi Exchange reported a 25.1% year-on-year revenue surge to ₹1,10,822.54 lakh in Q1FY27, reversing a net loss of ₹36.62 lakh in the preceding quarter to post a net profit of ₹70.90 lakh. The foreign exchange firm outperformed broader industry headwinds, including an 18% decline in international passenger traffic, by expanding its branch network to 38 outlets and launching proprietary digital products.

The results were disclosed under Regulation 30 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. While year-on-year net profit declined 37.5% from ₹113.46 lakh in Q1FY26 due to margin pressures, the sequential turnaround highlights improved operational efficiency. Profit before tax stood at ₹94.90 lakh, up from a loss of ₹53.70 lakh in Q4FY26.

Financial Performance

Revenue grew sequentially by 17.4% over the ₹94,127.29 lakh reported in Q4FY26. The company’s earnings per share (EPS) recovered to ₹0.86 from a negative ₹0.44 in the previous quarter.

Segment-Wise Growth

Prithvi Exchange achieved broad-based growth across all business verticals despite geopolitical tensions dampening outbound travel sentiment. Business Travel revenue rose 16.4% year-on-year, while Private Visit transactions grew 11.1%. The Wholesale Bank Notes segment saw a robust 35% increase, and Tours TT & Others surged 63%. Education Remittances grew modestly by 2.8%, reflecting continued demand for student funding despite overall declines in RBI Liberalised Remittance Scheme (LRS) data for education and travel.

Strategic Initiatives

The company expanded its physical footprint to 38 branches across 25 cities, adding two new locations in Q1FY27. Digitally, Prithvi launched TravFX, a direct-to-consumer platform for seamless forex booking, and completed the beta launch of Prithvi-branded multi-currency Forex Cards. Management also expanded its Cash to Master (CTM) business to deepen corporate client relationships. Pavan Kumar Kavad, Managing Director, attributed the performance to operational discipline and enhanced customer service amid challenging macroeconomic conditions.

What the Numbers Show

The divergence between top-line growth and compressed bottom-line margins indicates that while transaction volumes increased significantly across wholesale and travel segments, profitability per transaction faced pressure. The 35% surge in wholesale bank notes and 63% rise in tours suggests a shift toward higher-volume, lower-margin corporate and institutional flows, offsetting discretionary leisure spending declines. This structural shift, combined with digital adoption via TravFX, positions the company for sustainable scale despite near-term volatility in international travel demand.

Prithvi Exchange (India) Limited reported a significant contraction in profitability for the first quarter of FY26, with standalone net profit falling 37.5% year-on-year to ₹70.90 lakh. The Chennai-based foreign exchange dealer saw its consolidated net profit decline to ₹73.48 lakh, compared to ₹112.48 lakh in Q1FY25. Despite a robust 29.5% surge in revenue from foreign currency sales, driven by higher transaction volumes, the company’s bottom line was pressured by rising operational costs, particularly in employee benefits.

The Board of Directors approved the unaudited financial results on August 08, 2026, following a limited review by statutory auditors M/s Chandarana & Sanklecha. The disclosure was made under Regulation 30 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. The results were also reviewed by the Audit Committee before final approval. Extracts of the financial results have been published in newspapers as per Regulation 47 of the SEBI Listing Regulations.

Financial Performance

Total revenue from operations rose sharply to ₹1,10,822.54 lakh in Q1FY26, up from ₹85,627.59 lakh in Q1FY25. This growth was primarily fueled by sales of foreign currencies, which increased to ₹1,10,471.85 lakh from ₹85,289.78 lakh in the corresponding period last year. Other operating income contributed minimally at ₹350.69 lakh. However, total expenses grew at a faster pace than revenue, reaching ₹1,10,762.62 lakh against ₹85,509.48 lakh in Q1FY25.

On a consolidated basis, total income reached ₹1,10,865.45 lakh, while total expenses amounted to ₹1,10,767.97 lakh. The consolidated net profit attributable to owners of the company was ₹73.48 lakh, down from ₹112.48 lakh in Q1FY25. Earnings per share (basic) declined to ₹0.89 from ₹1.36 in the previous year’s corresponding quarter.

What the Numbers Show

The divergence between revenue growth and profit decline highlights a margin compression issue. While revenue surged nearly 30%, total expenses expanded at a similar rate, leaving little room for profit accumulation. Employee benefit expenses emerged as a key cost driver, rising 26.2% YoY to ₹453.79 lakh (standalone) from ₹359.60 lakh. This increase outpaced the growth in other expense categories such as finance cost, which actually decreased slightly to ₹6.19 lakh from ₹6.87 lakh. The narrow profit margin—less than 0.1% of revenue—underscores the low-margin nature of the foreign exchange trading business, where volume gains do not automatically translate to proportional profit improvements if cost structures are not tightly controlled.