Protean eGov Q3: Net slightly lower; margins rise, revenue up 13% on tax services, new biz

IT company Protean eGov Technologies Ltd on Wednesday (February 11) reported a net profit of ₹22.5 crore for the third quarter, down 2.2% from ₹23 crore in the year-ago period.

Revenue for the quarter rose 13.1% to ₹228.9 crore, compared with ₹202.3 crore in the corresponding period last year, driven by strong performance in tax services and new businesses. Central Recordkeeping Agency revenues remained unchanged.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) for the quarter

stood at ₹46 crore, compared with ₹35 crore in the third quarter of the previous year, with an EBITDA margin of 19%, an increase of 335 basis points.

Also Read: Protean eGov Tech shares in focus after MD and CEO Suresh Sethi resigns

The company’s balance sheet remained strong, with approximately ₹800 crore in cash equivalents and marketable securities and zero debt as of December 31, 2025.

In tax services, revenue grew 14% year-on-year, supported by a 90-basis-point sequential gain in market share and a rise in Permanent Account Number (PAN) card issuances following the extended Aadhaar and PAN linkage deadline. Protean strengthened its leadership with a 59% market share, issuing over 1.1 crore PAN cards during the quarter.

Central Recordkeeping Agency services onboarded over 35 lakh new subscribers, capturing 94% of incremental industry additions, and added more than 620 corporate clients. The segment maintains a dominant market position with 98% share across the National Pension System, Atal Pension Yojana, and Universal Pension System.

Also Read: Protean eGov wins ₹25 crore contract for Ethiopia agriculture digital platform

The identity services business recorded 7% combined volume growth across all four facets of digital identity, driven by momentum from Digital India initiatives. The company focused on higher volumes, expanding market share, and scaling value-added offerings.

New businesses contributed 11% of total revenue in the first nine months of the financial year 2025-26, compared with 4% in the previous financial year, in line with the company’s strategy to diversify beyond core business verticals. In international business, Protean secured a national-level mandate worth ₹25 crore to implement digital public infrastructure and related services for Ethiopia’s agricultural ecosystem.

Shares of Protean eGov Technologies Ltd ended at ₹645.50, down by ₹12.40, or 1.88%, on the BSE today, February 11.

Also Read: Protean eGov shares fall 30% in two sessions despite management assuring of no business impact