💰 Financial Performance

Revenue Growth by Segment

Total revenue grew 27.7% YoY to INR 301.06 Cr. Segment B (Product Sale) grew 112% YoY to INR 137.91 Cr for the half-year ended September 2025. Segment A (Services) grew 30% YoY to INR 38.26 Cr. Segment C (Financial Services) declined 35% YoY to INR 10.78 Cr.

Geographic Revenue Split

The company maintains a wide domestic network across major parts of India and an international presence in the UK, UAE, and Singapore, though specific percentage splits per region are not disclosed.

Profitability Margins

Net Profit Margin for FY25 was 7.20%, a decline from 9.33% in the previous year. Profit After Tax (PAT) stood at INR 21.67 Cr compared to INR 21.98 Cr in the prior year.

EBITDA Margin

EBITDA margin was recorded at 14% in FY20 (INR 21.8 Cr). For Q1 FY21, the EBITDA margin improved to 17.69% (INR 4.9 Cr), up 107 bps YoY.

Capital Expenditure

The company invested INR 12.30 Cr in Alankit Imagination Limited during FY21 to establish a discount brokerage business. Total investment in subsidiaries stood at INR 40.68 Cr as of March 2022.

Credit Rating & Borrowing

The company utilizes working capital limits of INR 5 Cr, which remain almost fully utilized. Debt-Equity ratio improved to 0.04x from 0.15x, indicating low leverage.

⚙️ Operational Drivers

Raw Materials

Inventory for product sales (INR 0.58 Cr in Q1 FY21) primarily consists of IT-enabled products and e-governance hardware; specific material components are not disclosed.

Key Suppliers

Key partners and service providers include NSDL, UIDAI, Income Tax Department, UTI, NASSCOM, State Bank of India, Bank of Baroda, Axis Bank, and IDBI Bank.

Capacity Expansion

Expansion is focused on digital infrastructure, specifically the 'World' digital platform for investing and the transition of brokerage business to Alankit Imagination Limited.

Raw Material Costs

Not applicable as a service-oriented business; however, product sale segment costs are reflected in the segment results which showed a profit of INR 3.94 Cr on INR 137.91 Cr revenue (2.8% margin) for H1 FY26.

Manufacturing Efficiency

Not applicable; service efficiency is managed through a geographically wide network of business centers and regional offices.

Logistics & Distribution

Distribution is handled through a large network of PAN centers and business centers across India.

📈 Strategic Growth

Expected Growth Rate

16.09%

Growth Strategy

Growth is targeted through the expansion of the discount brokerage business via Alankit Imagination Limited, leveraging partnerships with Drive Wealth and Stockal for the 'World' digital platform, and increasing penetration in e-governance services like GST Suvidha and Digital Signature Certificates.

Products & Services

PAN card applications, TAN, e-TDS filing, UID (Aadhaar) services, Digital Signature Certificates, GST Suvidha Provider services, and discount brokerage investing.

Brand Portfolio

Alankit, Alankit Imagination, World (Digital Platform).

New Products/Services

Discount brokerage services and the 'World' digital platform for international investing are expected to diversify revenue streams.

Market Expansion

Focus on increasing overseas presence in Singapore, UAE, and UK to capture NRI and international service demand.

Market Share & Ranking

Market leader in Tax Information Network (TIN) facilitation (PAN, TAN, e-TDS) and other services like UID, P2F, and NSR.

Strategic Alliances

Partnerships with Drive Wealth and Stockal for digital investing platforms; associations with leading banks (SBI, Axis, IDBI) for service delivery.

🌍 External Factors

Industry Trends

The e-governance industry is shifting toward integrated digital platforms and paperless compliance. Alankit is positioning itself as a 'one-stop-shop' for government and financial services.

Competitive Landscape

Faces competition from new fintech startups in the brokerage space and other authorized e-governance service providers.

Competitive Moat

The moat is built on a massive physical and digital distribution network (PAN centers) and long-standing licenses from government bodies, which are difficult for new entrants to replicate quickly.

Macro Economic Sensitivity

Highly sensitive to government policy changes regarding digital identity and tax compliance frameworks.

Consumer Behavior

Increasing consumer preference for digital-first financial services and online tax compliance.

Geopolitical Risks

Operations in UK, UAE, and Singapore expose the company to international regulatory changes and trade dynamics.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by NSDL, UIDAI, and Income Tax Department regulations. Compliance with SEBI (LODR) and the Companies Act 2013 is integrated into the governance framework.

Environmental Compliance

Not applicable for service-based e-governance operations.

Taxation Policy Impact

The company follows standard Indian corporate tax rates; specific effective tax rate not disclosed.

Legal Contingencies

An exceptional item of INR 5.92 Cr was recorded in March 2025 for a settlement amount paid to a vendor following a commercial dispute determined under arbitration.

⚠️ Risk Analysis

Key Uncertainties

Dependence on government schemes is the primary risk; any policy shift could impact the core e-governance revenue. Exposure to subsidiaries (40.44% of net worth) is a key monitorable for credit ratings.

Geographic Concentration Risk

While present internationally, the bulk of revenue is derived from the Indian domestic market, specifically government-linked services.

Third Party Dependencies

Heavy reliance on NSDL and UIDAI for the authority to process applications.

Technology Obsolescence Risk

Risk of digital platforms becoming obsolete if not updated; company is mitigating this through the 'World' platform and IT-enabled service investments.

Credit & Counterparty Risk

Large receivables from various customers lead to high utilization of working capital limits.