AGSTRA - AGS Transact

📊 NSE: AGSTRA 🏢 Computers - Hardware 📅 Last Updated: 12/13/2025 18:00

💰 Financial Performance

Revenue Growth by Segment

Total income for Q2 FY25 was INR 3,681 million, a decline of 5.3% compared to INR 3,886 million in Q2 FY24. Segment-wise, Securevalue India (Cash Management) reported INR 1,007 million, ITSL (Digital Payments) reported INR 256 million, and GTSL (Foreign Subsidiary) reported INR 203 million.

Geographic Revenue Split

The company operates across 2,200 cities and towns in India with 4,90,000 touchpoints. It has expanded internationally into Southeast Asia, specifically Sri Lanka, Philippines, and Cambodia through a Singapore-based subsidiary.

Profitability Margins

PAT turned positive to INR 152 million in Q2 FY25 from a loss in the previous year. Adjusted PAT margin for FY24 was -5.4% compared to 2.2% in FY23. The company is currently focused on contract renegotiations to improve profitability in the core cash payments segment.

EBITDA Margin

Consolidated EBITDA for Q2 FY25 was INR 1,047 million with a margin of 28.4%. Segment EBITDA margins were: Securevalue India (21.5%), ITSL (9%), and GTSL (32%).

Credit Rating & Borrowing

CRISIL Ratings assigned a 'Poor' liquidity rating due to high debt repayment obligations of ~INR 210 crore in fiscal 2025 and stretched receivables. Net debt stood at INR 6,839 million including reverse factoring.

⚙️ Operational Drivers

Raw Materials

Hardware components for Cash Recycler Machines (CRMs), Cash Billing Terminals, and Digital Signage systems.

Capacity Expansion

Deployment of new Cash Recycler Machines (CRMs) is in progress for Q3 and Q4 FY25, which is expected to drive revenue growth in the core cash payments business.

Logistics & Distribution

The company is growing retail cash pickups to optimize its cash logistics network and expand revenue streams.

📈 Strategic Growth

Growth Strategy

Growth will be achieved through the deployment of CRMs in H2 FY25, expansion of retail cash pickups, and a 5-year fixed-fee revenue contract for fuel and fleet management with Indian Oil.

Products & Services

Cash Recycler Machines (CRMs), Cash Billing Terminals, Digital Signage Software, and Prepaid Fuel Management Platforms.

Brand Portfolio

AGS Transact, Securevalue India (SVIL), ITSL.

New Products/Services

Fuel and fleet management program with Indian Oil, managing a prepaid platform with fixed-fee revenue over 5 years.

Market Expansion

Expansion into Southeast Asian markets including Sri Lanka, Philippines, and Cambodia.

Market Share & Ranking

One of India’s leading providers of end-to-end cash and digital payment solutions.

Strategic Alliances

Partnership with Indian Oil for a prepaid fuel and fleet management platform.

🌍 External Factors

Industry Trends

The industry is seeing a rapid evolution in payment landscapes; AGS is positioning itself to lead this by bridging cash and digital solutions through CRMs and its ITSL subsidiary.

Competitive Landscape

Operates in a competitive landscape of cash management and digital payment providers, competing on network reach and technology integration.

Competitive Moat

Moat is built on an extensive network of 4,90,000 touchpoints across 2,200 cities, creating high entry barriers for competitors in cash management and ATM outsourcing.

Macro Economic Sensitivity

Highly sensitive to the evolving Indian payments landscape and the shift between cash and digital transaction volumes.

Consumer Behavior

Shift toward digital payments is affecting traditional ATM usage, prompting the company to pivot toward Cash Recycler Machines (CRMs) and digital solutions.

Geopolitical Risks

Exposure to Southeast Asian markets (Philippines, Sri Lanka, Cambodia) introduces regional geopolitical and regulatory risks.

⚖️ Regulatory & Governance

Industry Regulations

Complies with Section 148 of the Companies Act for cost audits and Section 204 for secretarial audits. Adheres to SEBI (LODR) Regulations for financial reporting.