Niyogin Fintech's Q3 FY26: Strong Profitability and Strategic Growth

Niyogin Fintech Limited has delivered a robust performance in the third quarter of fiscal year 2026, showcasing significant strides in profitability and strategic execution across its diversified fintech platform. The company reported a consolidated net revenue of 28.9 Crore, marking an impressive 70% year-on-year growth. This strong top-line expansion was complemented by a substantial improvement in profitability, with consolidated PBT (Profit Before Tax, excluding ESOPs) surging by 95% quarter-on-quarter to 2.3 Crore. This turnaround reflects the company's sustained financial discipline and enhanced operating leverage, positioning it for a more resilient and sustainable earnings base for FY26.

The quarter's performance was largely driven by the stellar contribution from iServeU, Niyogin's fintech platform subsidiary, which demonstrated exceptional growth and margin expansion. iServeU's net revenue soared by 107% year-on-year to 21.2 Crore, and it achieved a remarkable 25.4% EBITDA margin, significantly exceeding its guidance of 12-15%. A notable factor contributing to iServeU's profitability was the recognition of 9.2 Crore in RBI incentive income during the quarter. The subsidiary also strengthened its revenue pipeline, securing approximately 635 Crore across 43 contracts, providing strong visibility for future growth. Operational updates for iServeU highlighted an expanding partner ecosystem with 17 new partners onboarded, scaling UPI volumes to over 200 crores per month, and a growing soundbox footprint with 79.6K units deployed in Q3 FY26.

While iServeU demonstrated aggressive growth, Niyogin's standalone NBFC business focused on sustained profitability momentum with a calibrated approach to lending. The NBFC segment's PBT (excluding ESOPs) improved to 1.6 Crore in Q3 FY26, a significant recovery from a loss of 2.3 Crore in Q3 FY25. Net Interest Income also increased to 10.3 Crore, up from 7.6 Crore in Q3 FY25, demonstrating pricing power. However, the NBFC's Assets Under Management (AUM) saw a sequential moderation, decreasing by 8% QoQ to 314 Crore. Management clarified that this was a deliberate strategy to prioritize asset quality and manage partner concentration in unsecured lending, rather than solely focusing on AUM growth. This reflects a prudent risk management approach in line with market realities.

Looking ahead, Niyogin Fintech has updated its FY26 guidance, reflecting confidence in its execution capabilities and a strategic growth approach. For iServeU, the company anticipates full-year FY26 net revenues between 70-80 Crore with EBITDA margins of 15-18%. This will be supported by continued expansion in soundbox deployments and growth in UPI and bill payment volumes. For the NBFC business, AUM expectations have been reset to 330-350 Crore for FY26, aligning with a selective, risk-adjusted growth stance. The company also highlighted its potential to expand iServeU's business into international markets, which could further enhance margins and diversify revenue streams. The expected listing of iServeU on the BSE, once the Scheme of Demerger is approved, is another significant milestone on the horizon.

Niyogin Fintech's Q3 FY26 performance underscores its strategic clarity and disciplined execution. The company is effectively leveraging its full-stack technology platform and extensive partnership network to drive sustainable growth and enhance profitability. With a clear focus on operational efficiency, risk management, and strategic expansion, Niyogin Fintech is well-positioned to capitalize on the evolving digital payments and lending landscape in India, building a resilient and sustainable earnings base for the future.