Protean eGov Technologies records 12% quarterly growth in Q2 FY25 driven by digital services surge

Protean eGov Technologies Limited, a prominent player listed on the Bombay Stock Exchange (BSE: 544021), has recorded a significant 12% revenue growth quarter-on-quarter, totaling INR 220 crore for Q2 FY25. This surge highlights the company’s expanding digital services, primarily in tax and pension segments, which have shown solid performance amid India’s shift towards a digital economy. Additionally, the company reported a robust profit after tax (PAT) increase of 33% over the previous quarter, rising to INR 28 crore. This momentum also aligns with the company’s stock performance, which closed at ₹1,893.50 on October 30, 2024, further reflecting investor confidence in Protean’s business trajectory.

Protean’s tax services led the growth, showing a remarkable 22% increase in revenue following recent government initiatives, which bolstered the company’s market share to 55.4%. The pension segment also saw impressive traction, with a 7% rise in revenue as the company onboarded 3.6 million new subscribers, partly driven by the NPS Vatsalya scheme for minors, which added over 25,000 accounts during the quarter. Protean’s solid balance sheet, bolstered by over ₹750 crore in cash reserves and zero debt, highlights its financial strength amid this growth phase.

The quarter also marked the launch of two major products. First, Protean’s Open Finance Initiative, integrated within the Open Network for Digital Commerce (ONDC), is a digital finance marketplace that offers users easy access to loans, insurance, and mutual funds. In collaboration with distribution partner PayNearby, this initiative has expanded access to financial services through over 200,000 retail touchpoints. Second, the company introduced Protean LIFE, a unique digital platform unveiled at the Global Fintech Fest 2024. This platform connects philanthropic funders with social organizations, facilitating efficient and transparent fund distribution for social and environmental projects. Both products underscore Protean’s commitment to enhancing India’s digital public infrastructure.

Protean eGov Technologies Managing Director and CEO Suresh Sethi remarked that the company’s quarterly performance reflects rising demand for digital public services in India, aligned with the government’s Digital India initiative. He emphasized that platforms like Open Finance and Protean LIFE play critical roles in widening digital access across various sectors and that Protean remains committed to delivering innovative solutions to support a scalable, digitally enabled future.

Among Protean eGov Technologies’ business segments, tax services emerged as a key contributor, showing strong performance with online PAN issuance surpassing offline issuance for the first time, representing 51% of total issuances. Pension services also made strides, bolstered by new initiatives like the NPS Vatsalya, which gained quick adoption. Although identity services saw a 14% drop due to regulatory changes, Protean eGov Technologies remains optimistic, citing its investment in value-added services such as eSignPro, expected to drive future growth. New ventures, particularly in open finance and e-commerce, are gaining traction, with Protean’s infrastructure increasingly complementing India’s digital economy.

Protean eGov Technologies’s’ recent launches and strategic direction highlight its leading role in India’s digital infrastructure. With these advancements, the company is set to maintain its influence across the expanding digital landscape.