Protean e-Gov Technologies Ltd, a pioneer in building Digital Public Infrastructure (DPI) in India, has reported a robust financial performance for Q2FY26, along with a significant new contract win. The company continues to strengthen its position in the e-governance and digital identity services sector.

Financial Highlights

• Revenue Growth: Protean reported a consolidated revenue from operations of ₹251.00 crore for Q2FY26, marking a 14% year-on-year increase and a 19% quarter-on-quarter growth.
• Profitability: The company's EBITDA stood at ₹44.00 crore with an EBITDA margin of 16.60%. Profit After Tax (PAT) was ₹24.00 crore, resulting in a PAT margin of 9.00%.
• Strong Balance Sheet: As of September 30, 2025, Protean maintained a robust financial position with more than ₹800.00 crore in cash equivalents and marketable securities, and zero debt.

Key Business Developments

UIDAI Contract Win

Protean has secured a landmark ₹1,370.00 crore mandate from the Unique Identification Authority of India (UIDAI). This contract involves:

• Establishing and operating 188 District-Level Aadhaar Seva Kendras (ASKs) across India
• An initial engagement period of six years
• End-to-end responsibilities from infrastructure setup to daily operations
• Estimated annual recurring revenue of ₹200.00 crore post-deployment

This contract solidifies Protean's position as the only organization managing and scaling both Aadhaar and PAN—two foundational IDs crucial to India's digital ecosystem.

Segment Performance

1. Tax Services:

   • Maintained a leading market share of 58% in Q2FY26
   • Issued over one crore PAN cards during the quarter

2. CRA Services:

   • Posted 12% YoY revenue growth
   • Onboarded 41 lakh new subscribers, capturing 97% market share in new additions
   • Onboarded more than 690 corporates during the quarter

3. Identity Services:

   • Continued to build on the Digital India movement momentum
   • Achieved sustained volume growth across most ID products

4. New Businesses:

   • Contributed 12% to total revenue in H1FY26, up from 4% in FY25
   • Expanded into multiple Open Digital Ecosystems (ODEs) across various sectors

Management Commentary

Suresh Sethi, Managing Director and CEO, stated: "Protean has delivered a resilient performance in Q2FY26, with 19% QoQ and 14% YoY growth in revenue. Our strategy to expand beyond BFSI, aligned with our core strength of building digital public infrastructure for the nation, has started yielding results."

Future Outlook

With its strong order book, robust balance sheet, and strategic expansion into new sectors, Protean eGov Technologies is well-positioned to capitalize on emerging opportunities in India's digital infrastructure space. The company's focus on innovation, financial inclusion, and digitalization is expected to drive long-term value for all stakeholders.

As India continues its digital transformation journey, Protean's role in building and maintaining critical digital infrastructure is likely to become increasingly significant, potentially leading to further growth opportunities in the coming years.

Protean e-Gov Technologies has seen significant changes in its shareholding pattern, with investor Mukul Mahavir Agrawal acquiring a notable stake, according to the latest data for the September quarter. This development comes amid the company's recent stock price decline and shifts in its business landscape.

Key Shareholding Changes

Stock Performance and Business Updates

Protean eGov Technologies has faced several challenges recently:

• The stock has declined 40.00% over six months and 42.00% year-to-date, closing at Rs 867.00 per share.
• In May, the stock fell nearly 20.00% after Protean was not shortlisted for the government's PAN 2.0 project, which contributes 45-50% of the company's revenue.
• The company's existing PAN services remain unaffected.

On a positive note, Protean secured a Rs 1,160.00 crore contract from UIDAI in August to manage Aadhaar Seva Kendras across 188 districts.

Financial Performance (June Quarter)

The company maintains a strong financial position with over Rs 800.00 crore in cash and marketable securities, and zero debt.

The acquisition of stakes by prominent investors like Mukul Mahavir Agrawal and Ramesh Damani may signal confidence in the company's long-term prospects. However, investors should consider the challenges faced by Protean eGov Technologies, including the loss of the PAN 2.0 project opportunity, while also noting its recent contract win and steady financial performance.