💰 Financial Performance

Revenue Growth by Segment

Net Revenue grew 52% YoY to INR 25.9 Cr in Q2 FY26, driven by a 44% YoY increase in AUM to INR 340.5 Cr in the NBFC segment and a 67% YoY growth in device deployments (58.4K units) in the Payments segment. Gross Income reached INR 75.1 Cr, up 3% YoY, reflecting a shift toward higher-margin net revenue streams.

Geographic Revenue Split

The company focuses on underserved segments in Rural India and MSMEs pan-India. While specific regional % splits are not disclosed, the model leverages 6,375 finance professionals (up 8% YoY) who each serve 100-150 MSME clients across various Indian states.

Profitability Margins

Net Revenue margin (as a % of Gross Income) improved significantly to 34.5% in Q2 FY26 from 23.3% in Q2 FY25. This was driven by a 53% YoY increase in Net Revenue while Gross Income only grew 3%, indicating better monetization of the platform and lower partner payouts.

EBITDA Margin

EBITDA margin turned positive at 6.5% (INR 4.9 Cr) in Q2 FY26 compared to a negative margin in Q2 FY25 (loss of INR 0.5 Cr). This turnaround is attributed to high operating leverage as the business scales its AUM and payment infrastructure without a proportional increase in fixed costs.

Capital Expenditure

Historical investment includes the acquisition of a 51% stake in iServeU and 50.01% in Moneyfront. Current focus is on tech-led scalability; Niyogin AI reported a loss of INR 4.33 Cr in FY25, representing ongoing R&D and capital allocation toward the 'SuperScan' AI platform.

Credit Rating & Borrowing

Total borrowings stood at INR 101.1 Cr as of Q2 FY26, up from INR 73.8 Cr in Q1 FY26. Finance costs increased 60% YoY to INR 2.1 Cr, reflecting increased leverage to fund the 44% growth in AUM.

⚙️ Operational Drivers

Raw Materials

As a fintech, 'raw materials' are functional equivalents: Cost of Funds (interest paid on INR 101.1 Cr debt), Partner Payouts (commissions to 6,375 professionals), and Credit Costs (INR 1.8 Cr in Q2 FY26).

Import Sources

Not applicable for fintech services; sourcing is domestic, focused on Indian financial markets for capital and Indian MSMEs for credit demand.

Key Suppliers

Key 'suppliers' of capital and technology include various lending program partners and distribution partners like Rapipay, Okcredit, PayMe, and Finsall.

Capacity Expansion

Current capacity includes 1,95,000 cumulative devices deployed as of FY25. The company is expanding through a demerger in FY25 to create two pure-play entities (NBFC and Payments) to pursue independent growth and specialized capital allocation.

Raw Material Costs

Credit costs represented 6.9% of Net Revenue in Q2 FY26 (INR 1.8 Cr). Partner payouts and funding costs are deducted from Gross Income to arrive at Net Revenue, which grew 52% YoY, suggesting efficient cost management.

Manufacturing Efficiency

Operational efficiency is measured by the 'Straight Through Processing' (STP) system, which automates underwriting to handle increased digital leads without incremental resource costs.

Logistics & Distribution

Distribution is handled through a network of 6,375 finance professionals (mostly CAs), minimizing traditional customer acquisition costs (CAC).

📈 Strategic Growth

Expected Growth Rate

45-50%

Growth Strategy

Growth will be achieved through the demerger of iServeU and Niyogin Fintech into separate listed entities to unlock value. The company aims to execute an INR 400 Cr order book (20 contracts) over the next 5 years and expand its BaaS platform with new partners like NSDL Payments Bank.

Products & Services

Unsecured business loans, working capital loans, Banking-as-a-Service (BaaS) APIs, POS terminals, Soundbox solutions, Bharat Bill Payment System (BBPS), and wealth management technology.

Brand Portfolio

NiyoBlu, iServeU, Moneyfront, SuperScan, Niyogin Fintech.

New Products/Services

Launch of 'Credit Line on UPI', 'Soundbox' solutions for banks (Canara, Central Bank of India), and AI-enabled 'SuperScan' for unstructured data conversion.

Market Expansion

Targeting the revival of the UPI business in FY26 through a new partnership with a leading payments bank and expanding the finance professional network beyond the current 6,375 partners.

Market Share & Ranking

Not disclosed; however, the company is a first-mover in the partnership-led NBFC model targeting CAs for MSME lending.

Strategic Alliances

Key alliances with Bank of Baroda (BBPS), Axis Bank (POS), and NSDL Payments Bank (Agency Banking).

🌍 External Factors

Industry Trends

The industry is shifting toward 'Embedded Finance' and 'BaaS'. India is becoming a global leader in digital transactions, with a focus on transitioning from a cash-dominated to a digital economy via AePS and UPI.

Competitive Landscape

Competes with traditional banks, other Fintech NBFCs, and Neo-banks. Niyogin differentiates through its capital-efficient, partnership-led model.

Competitive Moat

Moat consists of a unique distribution network of 6,375 CAs (Finance Professionals) and a modular API-first tech stack (iServeU). This creates high switching costs for partners integrated into their BaaS platform.

Macro Economic Sensitivity

Highly sensitive to MSME sector health and India's digital transaction growth (targeting 1 billion daily UPI transactions).

Consumer Behavior

Increasing formalization of MSMEs is allowing Niyogin to use cash-flow-based data for superior underwriting compared to traditional collateral-based models.

Geopolitical Risks

Minimal direct impact as operations are focused on rural India and domestic MSME lending.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by RBI (NBFC regulations), SEBI (as a listed entity), and NPCI (for UPI/AePS/M-ATM protocols).

Environmental Compliance

Not disclosed; as a fintech, environmental impact is low, focused primarily on digital operations.

Taxation Policy Impact

Subject to standard Indian corporate tax rates; the company is currently focused on utilizing losses in subsidiaries (like Niyogin AI) to offset future gains.

Legal Contingencies

The company is undergoing a regulatory approval process for its Composite Scheme of Arrangement with the NCLT Chennai Bench and SEBI/BSE.

⚠️ Risk Analysis

Key Uncertainties

Cyber security risk is a primary concern due to the digital nature of the business; technology risk from IT infrastructure failure could lead to operational disruptions.

Geographic Concentration Risk

Concentrated in India, specifically targeting rural and semi-urban MSME clusters through its partner network.

Third Party Dependencies

High dependency on partner fintechs and enterprise partners for loan sourcing and customer acquisition.

Technology Obsolescence Risk

Risk of rapid shifts in payment modalities (e.g., from AePS to UPI); mitigated by iServeU's expansion into prepaid cards and soundbox solutions.

Credit & Counterparty Risk

Credit risk is managed through AI-driven underwriting, but the focus on unsecured MSME lending (INR 340.5 Cr AUM) carries inherent default risk during economic downturns.