MOS - MOS Utility

📊 NSE: MOS 🏢 Trading 📅 Last Updated: 12/14/2025 10:00

💰 Financial Performance

Revenue Growth by Segment

Total consolidated income reached INR 193 Cr in FY24, representing a robust growth of 76.07% YoY. Growth is driven by the Fintech and Travel segments, with recent expansion into courier/cargo via MOS Logconnect (incorporated FY23) and financial inclusion via JC Ventures (acquired FY24).

Geographic Revenue Split

The company operates on a pan-India basis through a network of agents, particularly through JC Ventures which provides e-governance and ICT services across India. Specific regional percentage splits are not disclosed in available documents.

Profitability Margins

Operating margins have historically ranged between 2-7% (fiscals 2022-2024). Margins improved due to the high-margin entertainment segment but are estimated to moderate to 3-3.5% in fiscal 2025 following the addition of the lower-margin mobile utility business.

EBITDA Margin

EBITDA reached INR 17.85 Cr in FY24, growing 68% YoY. Net profit (PAT) for FY24 was INR 12.13 Cr, a 113% YoY increase. For H1 FY25, PAT stood at INR 6.38 Cr, up 71.32% YoY.

Capital Expenditure

The company maintains a healthy financial profile in the absence of large, debt-funded capital expenditure. It relies on internal cash accruals of INR 14-15 Cr to meet working capital needs and minor debt obligations of INR 0.70 Cr.

Credit Rating & Borrowing

CRISIL has assigned a 'Stable' outlook. Interest coverage was 19.34 times in FY24 and is estimated to exceed 25 times in FY25. Borrowing is minimal with a gearing ratio of 0.20-0.25 times as of March 31, 2025.

⚙️ Operational Drivers

Raw Materials

As a fintech service provider, the primary 'raw' cost is agent commission, which represents 80% of the revenue generated from banking products.

Import Sources

Not applicable as the company provides digital financial and utility services within the Indian domestic market.

Key Suppliers

Key partners include various domestic banks for API integration and NStore ReTech Private Limited for consumer lending accessibility.

Capacity Expansion

Current operations involve a unified open API and wallet platform. Expansion is focused on increasing the agent network and service portfolio rather than physical manufacturing capacity.

Raw Material Costs

Agent payouts are the largest cost component; for every INR 100 generated in banking revenue, INR 80 (80%) is distributed to agents, a ratio that has remained stable for 3-4 years.

Manufacturing Efficiency

Efficiency is measured by the steady absorption of fixed costs amid increasing revenue and the successful integration of acquired entities like JC Ventures.

Logistics & Distribution

Distribution is handled through a B2B2C network of agents; the company also operates a courier and cargo business via its subsidiary MOS Logconnect Pvt Ltd.

📈 Strategic Growth

Expected Growth Rate

70-76%

Growth Strategy

Growth is pursued through strategic acquisitions (JC Ventures, Indicore Infocomm), diversification into high-margin segments like entertainment, and new collaborations such as the November 2025 agreement with NStore ReTech to provide consumer lending at merchant outlets.

Products & Services

Unified open API and wallet platform, ticket booking, Aadhaar-enabled payments (AEPS), e-commerce services, courier/cargo services, and e-governance services.

Brand Portfolio

MOS Utility Limited, MOS World, MOS Logconnect, JC Ventures.

New Products/Services

Consumer lending services launched in late 2025 via NStore ReTech; mobile utility business added in FY25 which is expected to contribute to volume but moderate overall margins to 3%.

Market Expansion

Pan-India expansion through the acquisition of JC Ventures, which provides e-governance and ICT services across the country.

Strategic Alliances

Collaboration with NStore ReTech Private Limited (Nov 2025) to drive consumer lending; strategic operational linkages with subsidiaries like Indicore Infocomm and Samruddhi Inclusive Network.

🌍 External Factors

Industry Trends

The fintech industry is evolving toward unified platforms; MOS is positioning itself as a one-stop B2B2C provider for financial, utility, and travel services to capture the growing digital landscape.

Competitive Landscape

Intense competition from other fintech aggregators and direct banking apps, which limits the ability to increase the 20% revenue share retained from banks.

Competitive Moat

Moat is built on the extensive 14-year experience of promoters and a diversified service basket. Sustainability depends on the ability to maintain agent loyalty despite a competitive 80-20 margin structure.

Macro Economic Sensitivity

Highly sensitive to digital payment adoption rates and government initiatives regarding financial inclusion and e-governance.

Consumer Behavior

Increasing shift toward digital ticket booking and Aadhaar-enabled payments in rural and semi-urban areas drives demand for MOS merchant outlets.

Geopolitical Risks

Minimal direct impact as a domestic fintech, though broader economic shifts affecting consumer spending on travel and e-commerce would impact transaction volumes.

⚖️ Regulatory & Governance

Industry Regulations

Subject to RBI guidelines for fintech/wallet platforms and Aadhaar-enabled payment systems. The company recently restated financials under Ind AS 8 to correct prior period errors related to fixed assets and depreciation.

Environmental Compliance

Not applicable for this service-based fintech company.

Taxation Policy Impact

Current tax liabilities stood at INR 5.15 Cr as of September 2025.

Legal Contingencies

The company has disclosed the impact of pending litigations on its financial position in its FY25 financial statements, though specific case values were not detailed in the summary.

⚠️ Risk Analysis

Key Uncertainties

Volatility in operating margins (2-7% range) and the 'Stretched' liquidity status are key risks that could impact the ability to fund rapid expansion.