Radiant Cash Management Services Limited (RCMS) is taking a significant step towards expanding its business portfolio by seeking shareholder approval to alter its Memorandum of Association (MOA). The company aims to include payment aggregator and payment gateway business activities, marking a strategic move into the digital payment sector.

Proposed Changes to the MOA

RCMS has issued a postal ballot notice proposing to add three new object clauses to its MOA:

1. To carry on the business of Payment Aggregator and Payment Gateway in India or abroad, in compliance with Reserve Bank of India regulations.
2. To establish and maintain an integrated platform for web and mobile technologies, facilitating business payments and settlements.
3. To design, develop, and operate platforms for various payment-related services, including Internet portals, payment gateways, and web-based services.

Voting Process and Timeline

The company has outlined the following key dates for the e-voting process:

Shareholders can cast their votes electronically through the National Securities Depository Limited (NSDL) e-voting system.

Strategic Implications

This move signifies RCMS's intention to integrate digital payment solutions with its existing physical cash logistics infrastructure. The company aims to create a comprehensive "phygital" platform, combining physical and digital services to meet evolving customer needs and industry trends.

Col David Devasahayam, Chairman and Managing Director of RCMS, stated in the postal ballot notice, "The proposed expansion into technology-enabled payment services aligns with our strategy to offer unified platforms for both physical cash management and digital payment processing."

Regulatory Compliance

The proposed changes are subject to necessary approvals from regulatory bodies, including the Registrar of Companies, SEBI, and RBI. This ensures that RCMS's expansion into digital payment services will comply with all relevant financial regulations.

Conclusion

Radiant Cash Management Services Limited's move to expand into digital payment services represents a significant strategic shift. By leveraging its existing infrastructure and embracing digital technologies, RCMS is positioning itself to capitalize on the growing digital payments market while maintaining its strong presence in physical cash management services.

Shareholders have until December 8, 2025, to cast their votes on this important decision that could shape the future direction of the company in the evolving financial services landscape.

Radiant Cash Management Services Limited (RCMS) has announced its financial results for the second quarter of fiscal year 2026, revealing a mixed performance with revenue growth accompanied by an increase in profitability.

Revenue Growth and Operational Highlights

RCMS reported a 3.6% sequential increase in revenue, reaching ₹1,039.87 million in Q2 FY26 compared to ₹1,004.20 million in the previous quarter. This growth demonstrates the company's ability to expand its business despite challenging market conditions.

The company maintains a strong presence across India, operating in 28 states and 8 union territories. RCMS serves a wide network of touchpoints covering numerous pin codes, showcasing its extensive reach.

Profitability Improvement

RCMS experienced an improvement in profitability. The company's Profit After Tax (PAT) increased to ₹96.49 million from ₹73.41 million in the previous quarter, showing a significant enhancement in bottom-line performance.

Business Expansion and Strategic Initiatives

In a significant development, the RCMS Board has approved the company's entry into the Payment Aggregator Business. This move is subject to obtaining necessary approvals and licenses from the Reserve Bank of India and other regulatory authorities. The company plans to invest approximately ₹30.00 million in this new venture to enhance its digital service offerings and expand its phygital payments ecosystem.

Additionally, the Board has approved amendments to the Memorandum of Association to include payment aggregator and digital payment solutions in its main object clauses. This amendment is subject to shareholder approval through postal ballot.

Financial Position and Performance

For the six-month period ended September 30, 2025, RCMS reported standalone revenue of ₹2,044.07 million with a profit after tax of ₹169.90 million. These figures demonstrate the company's consistent performance over a broader timeframe.

Market Position and Future Outlook

RCMS continues to leverage its extensive network and technological capabilities to maintain its position in the cash management services sector. The company's focus on expanding its service offerings, particularly in the digital payments space, may help create new revenue streams and enhance its market position.

As Radiant Cash Management Services navigates through a dynamic market environment, its ability to successfully implement its new payment aggregator business, manage costs, improve operational efficiencies, and capitalize on new business opportunities will be crucial in determining its future performance.