Niyogin Fintech has reported a profitable first quarter, marking a significant turnaround in its financial performance. The company has also set ambitious growth targets for the coming years, aiming to double its growth by FY26.

Financial Highlights

• The company reported a profit before tax (PBT) of ₹59.83 lakhs, compared to a loss of ₹232.75 lakhs in the previous quarter and a loss of ₹246.54 lakhs in the same quarter last year.
• Total income stood at ₹26.40 crore, up from ₹24.39 crore in the previous quarter and ₹16.10 crore in the same quarter last year.
• Interest income saw a significant jump to ₹20.14 crore, compared to ₹16.43 crore in the previous quarter and ₹11.85 crore in the same quarter last year.

Growth Projections and Strategic Initiatives

Niyogin Fintech has outlined ambitious growth plans:

• The company is targeting to double its growth by FY26.
• It has set an Assets Under Management (AUM) target of ₹500-550 crore by FY26.
• The firm reports a strong order book in its iServeU segment, which stood at approximately ₹585 crore across 31 contracts.

Operational Performance

• iServeU, a key business segment, delivered its fourth consecutive EBITDA-positive quarter.
• Gross revenue for iServeU was ₹37.50 crore, with net revenue of ₹15.30 crore (up 12% QoQ) and EBITDA of ₹1.80 crore.
• The NBFC operations recorded gross disbursements of ₹160 crore, the highest to date.
• AUM grew 15% QoQ to ₹320.30 crore, while net revenue rose 18% to ₹7.80 crore.

Strategic Partnerships and Expansion

Niyogin Fintech has been actively expanding its partnerships and alliances:

• New alliances include Meesho, enabling credit access to its merchant network.
• The company won key contracts with Central Bank of India and Bank of Maharashtra for POS and Soundbox solutions.
• Partnerships and alliances now contribute approximately 91% of the overall AUM.

Management Commentary

Tashwinder Singh, CEO and Managing Director of Niyogin Fintech, stated, "Niyogin Fintech delivered another strong quarter, achieving profitability across its key businesses — NBFC and iServeU — in line with guidance."

Future Outlook

The company remains focused on its growth strategy, emphasizing partnerships, technological innovation, and expansion of its product offerings. With a strong order book and improving financial metrics, Niyogin Fintech appears well-positioned to achieve its ambitious growth targets for FY26.

Investors and stakeholders will be keenly watching the company's performance in the coming quarters to see if it can maintain this growth momentum and achieve its projected AUM target of ₹500-550 crore by FY26.

Niyogin Fintech Limited has reported a turnaround in its financial performance for the first quarter, posting a standalone profit and announcing key corporate developments.

Financial Highlights

The company reported a standalone profit of Rs. 59.83 lakhs for the quarter, compared to a loss of Rs. 246.54 lakhs in the same quarter last year. This marks a significant improvement in the company's financial performance.

Key financial metrics for the quarter include:

All figures in Rs. lakhs

Corporate Developments

The Board of Directors, in its recent meeting, approved several significant measures:

1. Appointment of New Independent Director: Mr. Nitin Jaiswal has been appointed as an Additional Director (Non-Executive and Independent) for a five-year term, subject to shareholder approval. Mr. Jaiswal brings 27 years of experience from Bloomberg, where he played a crucial role in expanding the company's presence across Asia-Pacific.

2. Creation of Charges: The board approved the creation of charges, mortgages, and hypothecation on company assets up to Rs. 300 crores as security towards borrowings, subject to shareholder approval.

3. Appointment of Secretarial Auditors: M/s. Mitesh Shah & Co., Company Secretaries, have been appointed as the Secretarial Auditors for a five-year term, pending shareholder approval.

4. Annual General Meeting: The 37th Annual General Meeting is scheduled to be held through video conferencing or other audio-visual means.

Operational Updates

• The company issued 1,33,000 equity shares under its Employee Stock Option Plan during the quarter.
• Niyogin Fintech maintains a management and macro-economic overlay on Expected Credit Loss of Rs. 240 lakhs.

Consolidated Performance

On a consolidated basis, the company reported a loss of Rs. 185.26 lakhs for the quarter. However, this represents an improvement from the loss of Rs. 984.34 lakhs in the same quarter last year.

Consolidated revenue from operations stood at Rs. 8,175.48 lakhs, showing substantial growth from Rs. 5,039.36 lakhs in the same quarter last year.

Niyogin Fintech's focus on strategic initiatives and operational efficiency appears to be yielding positive results, as evidenced by the standalone profit and improved consolidated performance. The appointment of Mr. Nitin Jaiswal as an independent director is expected to bring valuable expertise to the company's board, potentially contributing to its future growth strategies.