Niyogin Fintech Ltd Q4 FY25 Earnings Analysis

- iServeU expects net revenues to double from Rs. 70-80 crores in FY '26 to around Rs. 150 crores by FY '27. - Growth driven by long-term SaaS-based contracts with banks like Bank of Baroda, Axis Bank, and others. - Contract pipeline includes approximately 7 lakh devices to be deployed over next few years. - NBFC business plans to grow AUM from Rs. 300 crores in FY '25 to Rs. 550 crores in FY '26, reaching Rs. 800 crores by FY '27. - Loan disbursal volumes showing strong YoY growth, with 90,093 loans processed in Q3 FY '25 (245% YoY growth). - Soundbox and POS businesses expected to grow significantly with contracts totaling over Rs. 27 crores across multiple banks. - EBITDA margins on iServeU expected to improve to 18-20% by FY '27 with operational scaling and SaaS model expansion. - Overall, focus on evolving to SaaS model and expanding order book to ensure stable, predictable growth.

- iServeU is expected to start showing net profit from Q1 FY ’26, with EBITDA profitability beginning in Q4 FY ’25. - FY ’26 EBITDA margin for iServeU is projected at 12%-15%, increasing to 18%-20% by FY ’27. - Net revenues for iServeU are expected to double from Rs. 70-80 crores in FY ’26 to approximately Rs. 150 crores by FY ’27. - NBFC business aims to grow AUM from Rs. 300 crores in FY ’25 to Rs. 800 crores by FY ’27, targeting 15% return on equity. - Consolidated adjusted total income growth of 12% YoY (Q3 FY ’25) with continued focus on scaling SaaS revenues and long-term contracts for revenue visibility. - Profitability overall is expected to improve as both businesses mature, moving from EBITDA breakeven to consistent net positive earnings by FY ’26-FY ’27. - Investments in technology, sales, and international expansion will initially increase expenses but are aimed at supporting sustainable profit growth.

- There is a significant investment planned in technology and team expansion, particularly in the iServeU business, including beefing up middle management and tech resources to support SaaS-based revenue growth (Pages 18, 19). - Strategic partnerships and MOUs have been established for technology innovation and supply certainty, such as the tie-up with Pax Devices for device supply and R&D collaboration (Page 19). - Capital investments include funding growth through a combination of debt and equity, with approximately Rs. 50 crores expected from each for iServeU (Page 12). - On the NBFC side, funding plans involve maintaining a debt-equity ratio of 2:1, with an equity infusion of Rs. 60 crores expected from warrant maturities (Page 12). - There are no immediate mentions of large inorganic acquisitions during restructuring, but there remains openness to future strategic transactions post-restructuring to build adjacent businesses (Pages 14, 15).

- The NBFC business plans to fund its growth primarily through debt, maintaining a debt-to-equity ratio of 2:1. - Some funding will also come through equity. - The company is set to receive an equity infusion of approximately Rs. 60 crores from the maturity of warrants next month. - iServeU's growth is expected to be funded through a combination of debt and equity, with about Rs. 50 crores expected from each. - There is a mention of continued investments in technology, people, and international opportunities indicating ongoing capital needs. - No specific new fundraising rounds beyond these are explicitly mentioned in the provided excerpts.

- iServeU has a contract pipeline with approximately 7 lakh devices, including key wins from Bank of Baroda, Axis Bank, and Suryoday Small Finance Bank. - Recently signed a contract with Bank of Baroda to deploy over 1 lakh Soundboxes, with an annual recurring revenue of around Rs. 5-6 crores. - Won a Bharat Bill Payment System contract with Bank of Baroda, a 5-year agreement worth a minimum of Rs. 17 crores. - Axis Bank contract combining POS and Soundbox worth around Rs. 5 crores, to be realized over the next three years. - Long-term contracts with major PSU banks through ongoing RFPs, indicating potential further orders. - Total net revenue from iServeU is expected to grow to around Rs. 150 crores by FY ’27, supported by these orderbooks and contracts.