💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment of software development and consultancy. Total revenue from operations and other income grew by 1.01% YoY, reaching INR 35.63 Cr in FY 2024-25 compared to INR 35.28 Cr in the previous year.

Geographic Revenue Split

While specific percentage splits are not disclosed, the company has an active presence in India, USA, UK, and Africa. Strategic expansion is currently targeting growth in Canada, the Middle East, and Asia to diversify the current revenue base.

Profitability Margins

Net Profit Margin (PAT Ratio) declined from 35% to 29% in FY 2024-25, representing a 17.14% decrease. Net Profit After Tax (PAT) fell by 28% to INR 9.00 Cr from INR 12.50 Cr, primarily due to higher depreciation and operational costs.

EBITDA Margin

Profit before depreciation and tax stood at INR 14.12 Cr (39.6% margin) in FY 2024-25, a significant decrease from INR 17.92 Cr (50.8% margin) in the previous year, reflecting a margin compression of approximately 1,120 basis points.

Capital Expenditure

The company is executing a major CAPEX plan using IPO proceeds of INR 56.20 Cr. As of September 2025, it has invested INR 0.71 Cr in a Nagpur development facility, INR 2.24 Cr in hardware procurement, and INR 14.09 Cr in enhancing existing software products.

Credit Rating & Borrowing

The company reported a net increase in financing activities of INR 1.30 Cr for the half-year ended September 2025. Specific credit ratings and interest rate percentages are not disclosed in the available documents.

⚙️ Operational Drivers

Raw Materials

As a software firm, the primary 'raw material' is human capital, with 90 employees. Other critical inputs include cloud infrastructure and third-party software licenses like SAP Business One, which are essential for service delivery.

Import Sources

The company sources technology and hardware globally, with specific operational hubs in Nagpur (India) and subsidiaries in the USA and UK to support international delivery.

Key Suppliers

Key technology partners include SAP (for SAP B1 services) and various cloud infrastructure providers. Specific hardware vendor names are not disclosed.

Capacity Expansion

The company is expanding its development capacity through a new facility in Nagpur (INR 0.71 Cr spent) and has invested INR 2.24 Cr in hardware to support a growing workforce and more complex project requirements.

Raw Material Costs

Employee-related costs and software development expenses are the primary drivers. Depreciation and amortization expenses increased by 59.12% to INR 1.96 Cr, reflecting heavy investment in proprietary software assets.

Manufacturing Efficiency

Efficiency is measured by project delivery timelines and software quality. The company utilizes dedicated Quality Assurance (QA) and Project Management teams to ensure alignment with client goals.

Logistics & Distribution

Distribution is primarily digital via cloud and offshore delivery models. Sales and marketing expenses for global and domestic expansion reached INR 4.35 Cr as of September 2025.

📈 Strategic Growth

Expected Growth Rate

100%

Growth Strategy

The company plans to achieve 100% growth through aggressive USA expansion, targeting mid-sized and community banks, and integrating AI/ML for fraud detection. It is also leveraging a strong pipeline including a large LOS order for a Nationalised Bank and expansion into the Gulf and African markets.

Products & Services

Core banking software solutions, Loan Origination System (LOS), ERP implementation, SAP Business One (SAP B1) services, and offshore IT consultancy.

Brand Portfolio

Trust Fintech, TFL Tech Inc (USA subsidiary), and SAP Business One (as a service provider).

New Products/Services

New AI and Machine Learning modules for personalized banking and fraud detection are expected to drive future revenue. The company has already spent INR 14.09 Cr on software enhancement.

Market Expansion

Targeting geographic diversification in Asia, Africa, USA, Canada, and the Middle East. The company is specifically focused on the USA market with a dedicated subsidiary, TFL Tech Inc.

Market Share & Ranking

The company identifies as a leading provider of core banking software for cooperative and mid-sized banks, though specific market share % is not disclosed.

Strategic Alliances

Alliances with technology providers for advanced solution integration and collaborations with consulting firms for comprehensive implementation services.

🌍 External Factors

Industry Trends

The industry is shifting toward Digital Banking, Open Banking APIs, and AI-driven analytics. Trust Fintech is positioning itself by investing in AI/ML and cloud infrastructure to meet these 15-20% industry growth trends.

Competitive Landscape

Competes with global and domestic fintech providers. Competitive dynamics are driven by product innovation (AI/ML) and the ability to provide 24/7 dedicated customer support.

Competitive Moat

The moat is built on 25+ years of domain expertise in banking software and high switching costs for core banking platforms. This is sustainable due to the mission-critical nature of the software provided to financial institutions.

Macro Economic Sensitivity

Highly sensitive to global interest rates and banking sector health; economic fluctuations directly impact the IT budgets of their primary client base (banks and NBFCs).

Consumer Behavior

Shift toward mobile-first and personalized banking experiences is driving banks to upgrade legacy systems, creating a direct demand for Trust Fintech's modernized LOS and core banking modules.

Geopolitical Risks

Operations in the Gulf, Africa, and USA expose the company to varying regulatory environments and trade policies, particularly regarding data protection and cross-border financial software standards.

⚖️ Regulatory & Governance

Industry Regulations

Must comply with global data protection laws (like GDPR or local equivalents) and banking software standards. Compliance is essential to maintain client trust and avoid legal penalties.

Environmental Compliance

As a software company, ESG impact is minimal; however, the company maintains a CSR policy and committee, though it did not meet the Section 135(5) spending criteria for the current period.

Taxation Policy Impact

Current tax expense for FY 2024-25 was INR 3.06 Cr, a 26.18% decrease from the previous year's INR 4.14 Cr, following the decline in pre-tax profits.

Legal Contingencies

The company monitors potential Intellectual Property (IP) infringement claims and theft, which are cited as significant legal risks for their proprietary technology. No specific pending case values in INR were disclosed.

⚠️ Risk Analysis

Key Uncertainties

Rapid technological obsolescence in the fintech space poses a risk; failure to innovate at the pace of AI/ML developments could impact revenue by an estimated 10-15% if clients migrate to competitors.

Geographic Concentration Risk

While expanding, a significant portion of operations and development remains concentrated in India, making it vulnerable to local infrastructure and regulatory shifts.

Third Party Dependencies

Depends on technology partners like SAP for a portion of its service offerings (SAP B1), creating a dependency on those partners' licensing and support policies.

Technology Obsolescence Risk

The company is mitigating this risk by investing INR 14.09 Cr in software enhancement and focusing on AI, ML, and Open Banking APIs to stay current.

Credit & Counterparty Risk

Trade Receivable Turnover Ratio of 2.06 suggests a moderate collection cycle. The company focuses on 'better realization of funds' to manage credit exposure to its banking clients.