Radiant Cash Management Reports Flat Revenue, Margin Decline in Q2 FY26; Expects Improvement in H2

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

Segment	Growth (YoY)
E-Commerce	30%+
Petroleum	24%
Railways	>50% decline
E-Commerce Logistics	>50% decline

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

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

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
0.0%	+1.14%	+0.40%	-19.96%	-30.77%	-49.31%

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:

To carry on the business of Payment Aggregator and Payment Gateway in India or abroad, in compliance with Reserve Bank of India regulations.
To establish and maintain an integrated platform for web and mobile technologies, facilitating business payments and settlements.
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:

Event	Date
Cut-off date for eligibility	November 3, 2025
Commencement of e-voting	November 9, 2025
End of e-voting	December 8, 2025
Declaration of results	By December 10, 2025

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.