Prithvi Exchange (India) Limited , a Reserve Bank of India licensed foreign exchange dealer, has reported a mixed financial performance for the second quarter of fiscal year 2025-26. The company faced several challenges, including currency fluctuations, intense competition, and regulatory compliance issues, which impacted its profitability despite revenue growth.

Financial Performance

The company's financial results for Q2 FY26 show a contrast between top-line growth and bottom-line pressure:

The significant decline in net profit despite revenue growth highlights the margin pressure faced by the company during the quarter.

Operational Highlights

Segment Performance

• Business Travel: Grew by 17% year-over-year
• Travel Remittances: Increased by 23% compared to the same period last year
• Education Remittances: Posted a 3% volume growth, outperforming the market which saw a decline

Challenges and Impacts

1. Currency Volatility: The quarter witnessed currency fluctuations, contributing to margin pressure across segments.
2. RBI Compliance: The company's banknotes business was affected by compliance with the RBI's 75:25 rule, leading to a drop in this segment.
3. Education Remittances: Tighter visa norms in Canada, USA, and UK resulted in muted education remittances. Despite this, Prithvi Exchange managed to grow its volume by 3% against the market trend.

Expansion Plans

Prithvi Exchange is actively working on expanding its presence:

• Awaiting RBI approval for 3 additional centers
• Exploring expansion opportunities in tier-2 and tier-3 cities such as Visakhapatnam, Vijayawada, and Goa

Management Commentary

While specific management quotes were not provided, the company acknowledges the challenging environment and highlights its ability to outperform in certain segments despite market headwinds. The focus on travel remittances and business travel appears to be yielding positive results, as evidenced by the growth in these areas.

Outlook

The company expects the decline in the banknotes business to reverse in the future, potentially improving its metrics. However, the ongoing challenges in the education remittances sector and the competitive landscape may continue to impact profitability in the near term.

Investors and market watchers will likely keep a close eye on how Prithvi Exchange navigates these challenges and capitalizes on its expansion plans in the coming quarters.

Prithvi Exchange (India) Limited , a prominent player in the forex services sector, has announced the opening of a new branch in Bhubaneswar, Odisha, marking a significant step in its expansion strategy.

Strategic Location and Enhanced Services

The new branch is strategically located at Plot No. S.C.R-65, Janpath unit-3, Kharvel Nagar, Bhubaneswar, G.P.O Khorda, Odisha – 751 001. This expansion is part of Prithvi Exchange's commitment to enhancing its presence across India and providing accessible forex services to a wider customer base.

Technological Advancements for Improved Customer Experience

In line with its commitment to customer service excellence, Prithvi Exchange has equipped the new Bhubaneswar branch with contemporary facilities and the latest technology. This modern setup aims to provide an enhanced and efficient experience for customers seeking forex services.

National Expansion Plans

Pavan Kumar Kavad, Managing Director of Prithvi Exchange (India) Limited, stated in the company's official communication to the BSE, "By building more branches in the near future, the firm hopes to increase its footprint across the nation." This statement underscores the company's ambitious growth plans and its intent to strengthen its position in the forex services market across India.

Regulatory Compliance

The opening of the new branch was reported to the BSE Limited in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This adherence to regulatory requirements demonstrates Prithvi Exchange's commitment to transparency and corporate governance.

Looking Ahead

As Prithvi Exchange continues its expansion, the forex services landscape in India may see increased competition and improved accessibility for customers. The company's focus on technological advancements and strategic location choices could potentially set a new standard in the industry.

Investors and customers alike will be watching closely as Prithvi Exchange unfolds its national expansion strategy, potentially reshaping the forex services market in various regions across India.