DIGISPICE - DigiSpice Tech.

📊 NSE: DIGISPICE 🏢 Computers - Software - Medium / Small 📅 Last Updated: 12/13/2025 21:34

💰 Financial Performance

Revenue Growth by Segment

Spice Money (Fintech) is the primary driver, with revenue growing 49% YoY to INR 858 Cr in FY22 from INR 578 Cr. In Q2 FY26, Customer GTV grew 23% YoY, while H1 FY26 GTV grew 25% YoY. The Digital Services segment saw a marginal decline to INR 133 Cr in FY22 from INR 134 Cr.

Geographic Revenue Split

Focus is on 'Deep Bharat' (rural and semi-urban India) with over 1 million Adhikari touchpoints. Market share growth of 18.5% is reported across all major regions in India, with Spice Money outpacing industry growth (27.9% vs 15% industry average).

Profitability Margins

Gross Margin for Q2 FY26 stood at INR 52 Cr (41.7% of revenue), up 20.3% YoY. H1 FY26 Gross Margin improved by INR 16 Cr (19% growth). Operating Profit Margin was 1.25% in FY25 compared to 1.20% in FY24. Net Profit Margin for FY25 was 1.46%.

EBITDA Margin

EBITDA for Q2 FY26 rose 3.2x (220%) YoY to INR 6.9 Cr. EBIT for Q2 FY26 was INR 10.6 Cr, a 30x increase YoY. Historical EBITDA for Spice Money was INR 22 Cr in FY22 (2.5% margin), while the Digital Services segment reported an EBITDA loss of INR 8 Cr.

Capital Expenditure

The company operates an asset-light model. Historical cash accruals of INR 18-25 Cr per annum were projected to cover moderate capex requirements. Strategic realignment involves incorporating holding company indirect costs as investments for long-term growth.

Credit Rating & Borrowing

The company is debt-free, utilizing only cash credit facilities for treasury management. Interest coverage ratio was 6.16 in FY25 (down 63% from 16.47 in FY24). CRISIL previously rated the group with a 'Stable' outlook, noting interest coverage above 25x in FY22.

⚙️ Operational Drivers

Raw Materials

Not applicable as a fintech service provider; primary costs are agent commissions (Adhikari payouts), technology infrastructure, and banking service provider (BC) fees.

Import Sources

Not applicable; services are domestic-focused within India.

Key Suppliers

Key partners include various commercial banks for Business Correspondent (BC) tie-ups and technology vendors for platform maintenance.

Capacity Expansion

Current reach exceeds 1 million Adhikari (agent) touchpoints. Expansion is focused on increasing the 'success rate' of transactions, which improved from 63.8% in FY24 to ~74% in H1 FY26.

Raw Material Costs

Operating costs are driven by transaction volumes. Gross Margin growth of 20.3% YoY in Q2 FY26 indicates improved take-rates and operational efficiency despite competitive pressures.

Manufacturing Efficiency

Measured by transaction success rates (74%) and market share (18.5%). Operating leverage is starting to play out, resulting in two consecutive quarters of consolidated PAT (INR 7.2 Cr in Q2 FY26).

Logistics & Distribution

Distribution is handled via a digital network of 1 million+ retail agents (Adhikaris) across rural India.

📈 Strategic Growth

Expected Growth Rate

25-28%

Growth Strategy

Achieved through the 'New Engines' strategy (Credit and Spice Pay), increasing transaction success rates to 74%, and expanding the Adhikari base. The company is also leveraging its leading BC network to drive deeper penetration of AePS cash deposits and other financial services in rural markets.

Products & Services

Aadhaar Enabled Payment System (AePS) cash-out, AePS cash deposit, Spice Pay, Credit/Lending services, and other banking/transactional services for rural consumers.

Brand Portfolio

Spice Money, DiGiSPICE.

New Products/Services

New engines include 'Credit' (lending) and 'Spice Pay', which are expected to contribute to margin expansion as they scale beyond the current pilot phases.

Market Expansion

Targeting 'Deep Bharat' (rural India) to drive financial inclusion. The company is currently merging Spice Money into DiGiSPICE to streamline the corporate structure and improve capital efficiency.

Market Share & Ranking

Holds approximately 18.5% market share in its segment, outpacing the general industry growth rate of 15%.

Strategic Alliances

Collaborations with various banks as Business Correspondent (BC) partners to facilitate rural banking transactions.

🌍 External Factors

Industry Trends

The industry is growing at 15% YoY, driven by increased adoption of digital payments in rural areas. The trend is shifting toward 'New Engines' like digital credit and integrated payment apps (Spice Pay) to move beyond simple cash-out services.

Competitive Landscape

Intense competition from well-capitalized fintech players and traditional banks expanding their BC networks.

Competitive Moat

Moat is built on a massive physical-digital network of 1 million+ Adhikaris in remote locations. This network effect creates a barrier for new entrants, though sustainability depends on maintaining agent loyalty and high transaction success rates.

Macro Economic Sensitivity

Highly sensitive to rural consumption patterns and government policies regarding digital payments (UPI/AePS) and financial inclusion mandates.

Consumer Behavior

Increasing trust in digital banking among rural populations and a shift from cash-heavy to digital-assisted transactions.

Geopolitical Risks

Low direct impact as operations are focused on the Indian domestic market, though global fintech trends influence local competition.

⚖️ Regulatory & Governance

Industry Regulations

Strict adherence to RBI guidelines for Business Correspondents, KYC norms for agents/customers, and data security standards for financial transactions.

Environmental Compliance

Not a high-impact sector for environmental regulations; focus is on digital governance.

Taxation Policy Impact

Standard corporate tax rates apply; PAT from continued operations was INR 7.3 Cr in Q2 FY26.

Legal Contingencies

The company is currently undergoing an NCLT process for the merger of Spice Money into DiGiSPICE. No major pending litigation values were disclosed in the provided documents.

⚠️ Risk Analysis

Key Uncertainties

Fluctuations in DigiAsia's share price impact the fair value of investments. Margin compression due to competition is a primary risk, potentially impacting EBITDA by 1-2%.