Veefin Solutions Limited: Charting a Course for Digital Banking Dominance in H1 FY26

Veefin Solutions Limited, a global enterprise software product provider for banks and NBFCs, has delivered a robust performance in the first half of Financial Year 2026 (H1 FY26), underscoring its strategic pivot towards a multi-product, multi-geography technology powerhouse. The company reported a consolidated revenue from operations of ₹110.04 crore, marking an exceptional 476.4% year-on-year growth. This impressive top-line expansion was complemented by a consolidated EBITDA of ₹20.13 crore and a Profit After Tax (PAT) of ₹8.21 crore, reflecting a 243.5% and 98.8% YoY increase, respectively. On a standalone basis, revenue grew by 108.0% to ₹26.38 crore, with EBITDA at ₹12.57 crore (372.6% YoY) and PAT at ₹6.44 crore (350.3% YoY). These figures highlight Veefin's successful execution of its growth strategy, fueled by disciplined IP investment and global expansion.

The company's core Supply Chain Finance (SCF) business continues to be a significant profit driver, maintaining an impressive EBITDA margin of over 54% on a standalone basis. This profitable core is instrumental in funding Veefin's ambitious multi-product development engine. The company is actively building six enterprise-grade products simultaneously, including Trade, Cash Management System (CMS), Corporate & Retail Internet Banking (IB), Loan Management System (LMS), Fraud & Risk analytics, and Loan Origination System (LOS). These products are all being developed on Veefin's 4.0 shared architecture, emphasizing microservices and a unified user experience framework. This strategic investment in a comprehensive product suite is a direct response to the evolving demands of global banks, which are increasingly seeking integrated, single-fabric technology solutions for working capital rather than disparate point products. The management's foresight in investing 'before the curve' positions Veefin to capitalize on this market shift.

Financial Performance Snapshot (H1 FY26 vs H1 FY25)

Strategic Initiatives and Market Traction

Veefin's strategic initiatives are designed to enhance its market position and operational efficiency. A key development is the ongoing amalgamation of its subsidiaries, Estorifi Solutions Ltd and GlobeTF Solutions Ltd, into Veefin Solutions Limited. This move, approved by the Board and filed with BSE on October 18, 2025, aims to consolidate operations for greater scale and clarity, streamline corporate governance, and strengthen the balance sheet for future IP investments. The amalgamation is expected to be EPS-accretive from FY 2027, with NCLT approval anticipated by Q2-Q3 FY27. Promoters have voluntarily relinquished 21 lakh shares at nil consideration, demonstrating a strong commitment to governance and minority shareholder alignment.

Another significant highlight is the continued rollout and traction of the PSB Xchange platform. On October 16, 2025, PSB Xchange successfully completed its first live end-to-end digital supply chain finance transaction in collaboration with Central Bank of India. This milestone validates the platform's vision of building a single, interoperable digital rail for India's credit ecosystem. Veefin has also hired an operational team for PSB Xchange across the country, with offers extended to join by December/January. Management projects ₹3,000-₹3,500 crore worth of transactions or approvals on the PSBXchange pipeline by the end of the year, indicating strong market acceptance.

Global Footprint and Future Outlook

Veefin's global expansion strategy is gaining momentum, with clients across 24 countries in regions such as Asia, Africa, and MENA. The company's qualified pipeline stands at ₹396 crore (approximately $47 million), with 85 deals across these geographies. Notably, the product-wise pipeline has diversified significantly, with Supply Chain Finance now accounting for less than 50%, and new products like Trade, Cash, and Internet Banking contributing a large 30%+. This diversification reduces reliance on a single product and enhances cross-sell opportunities. The company's leadership team, comprising 14 senior members with over 300 years of combined BFSI and product experience, is a critical differentiator, enabling simultaneous product development and global market penetration. Veefin also boasts near-zero voluntary tech attrition, reflecting a stable and high-performing talent base.

Looking ahead, Veefin has provided robust guidance for FY26. Standalone revenue is targeted to grow 75-85% YoY, while consolidated revenue is projected to increase by an impressive 290-300% YoY. Management expects margins to expand as IP investments mature and plateau. The company aims to close approximately 15% of its $45 million pipeline within FY26 and continues to focus on cash flow discipline and global expansion, with plans to enter the U.S. market soon. The long-term vision includes achieving a consolidated EBITDA margin of 25% in FY27 and 30-35% over the next three to four years, solidifying its position as India's first multi-product BFSI technology powerhouse.