Radiant Cash Management Services Limited (RCMS) reported flat standalone revenues of INR 1.02 billion for the second quarter of FY26, with EBITDA margins declining to 14.9%. The company's performance was impacted by losses in its Valuable Logistics segment and increased fixed costs. However, management expects improvement in the coming quarters.

Key Financial Highlights

• Consolidated revenues reached INR 1.07 billion, a 4.6% growth over the previous quarter
• Consolidated EBITDA margins improved to 13.1%, up 150 basis points sequentially
• Cash volume handled during the quarter remained flat at INR 0.41 trillion year-over-year
• Direct business now constitutes 15.7% of standalone revenues

Segment Performance

Acemoney Recovery

The company's fintech subsidiary, Acemoney, showed signs of recovery after facing disruptions in the previous quarter:

• Q2 revenues: INR 49.00 million (up from INR 17.00 million in Q1)
• Installed 14,000+ POS machines in Q2
• Transaction volumes reached INR 400.00 crores

Strategic Initiatives

1. Offering wider array of services to banks, including cash sorting machines and ATM replenishment
2. Strengthening direct client business
3. Implementing cost reduction measures across regions
4. Focusing on achieving growth and breakeven in the Valuable Logistics segment
5. Onboarding distributor network for low cash volume points
6. Increasing transaction volumes in Acemoney

Management Commentary

Col. David Devasahayam, Chairman and Managing Director, stated, "Our new initiatives are like seeds planted which demand patience that are taking a little time to grow. I'm excited how we are today maturing into a hybrid digital platform catering to the entire suite of cash and cash-related products."

The management expressed confidence in improving performance in the ongoing financial year, citing renewed focus on sales initiatives and cost reduction measures.

Outlook

• Expects margin improvement in remaining quarters
• Aims to achieve breakeven in the Valuable Logistics segment during the current financial year
• Targets installing over 1 lakh POS machines through Acemoney in FY26
• Anticipates reaching historical high EBITDA margins of about 25% by FY27

While facing short-term challenges, Radiant Cash Management Services is positioning itself for future growth by expanding its digital offerings and leveraging its strong presence in India's hinterland. Investors will be watching closely to see if the company can deliver on its promises of improved performance in the second half of FY26.

Radiant Cash Management Services Limited (RCMS) has taken a significant step towards expanding its business portfolio by amending its Memorandum of Association (MOA) to include payment aggregator and payment gateway business activities, marking a strategic move into the digital payment sector.

Approved Changes to the MOA

RCMS shareholders have approved amendments to the company's MOA through a Special Resolution on December 08, 2025. The amendments add new business objects related to payment aggregator and payment gateway services, enabling the company to:

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

Strategic Implications

This move signifies RCMS's intention to expand beyond physical cash logistics into the digital payments ecosystem. The company aims to create a comprehensive "phygital" platform, integrating cash management and digital payment processing to meet evolving customer needs and industry trends.

Regulatory Compliance

The implementation of these new business activities is subject to regulatory approvals from the Reserve Bank of India (RBI) and other relevant authorities. This ensures that RCMS's expansion into digital payment services will comply with all necessary financial regulations.

Conclusion

Radiant Cash Management Services Limited's expansion 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.

The approval of these amendments marks an important milestone in the company's evolution, potentially shaping its future direction in the rapidly changing financial services landscape.