Niyogin Q2 revenue rises 8%, but PBT remains negative

Niyogin Fintech Limited reported consolidated net revenue of Rs 23.9 crore in Q2 FY27, up 8% from Q1 FY27, while profit before tax excluding employee stock option plan costs was a Rs 4.4 crore loss. The sequential recovery followed a slow first quarter, but net revenue was still 8% below Q2 FY26.

How did Niyogin perform in Q2 FY27?

Niyogin improved net revenue and earnings before interest, tax, depreciation and amortisation, or EBITDA, sequentially in Q2 FY27, although gross income and net revenue remained below their Q2 FY26 levels. Gross income was Rs 65 crore, down 3% from Rs 66.8 crore in Q1 FY27 and 13% from Rs 75.1 crore a year earlier. Net revenue, which Niyogin defines as gross income net of partner payouts, funding costs and credit costs, rose from Rs 22.1 crore in Q1 FY27 to Rs 23.9 crore.

The Rs 1.8 crore sequential increase in net revenue did not offset the year-on-year decline. Q2 FY27 net revenue was Rs 2 crore below the Rs 25.9 crore reported in Q2 FY26. For FY26, Niyogin reported consolidated gross income of Rs 307.8 crore and net revenue of Rs 106 crore.

Niyogin reported EBITDA of Rs 1.4 crore in Q2 FY27, compared with Rs 0.2 crore in Q1 FY27 and Rs 4.9 crore in Q2 FY26. Thus, EBITDA increased by Rs 1.2 crore sequentially but was Rs 3.5 crore lower than the year-earlier quarter. The shareholder letter does not provide a segment-level reconciliation of the consolidated EBITDA change.

Why was Niyogin still loss-making in Q2 FY27?

Niyogin remained loss-making because consolidated PBT was a Rs 4.6 crore loss in Q2 FY27 despite the Rs 1.4 crore of EBITDA. After excluding Rs 0.2 crore of employee stock option plan, or ESOP, costs, PBT was a Rs 4.4 crore loss. This was narrower than the Rs 6 crore PBT loss excluding ESOP costs in Q1 FY27.

The Q2 FY27 loss contrasts with a profit in Q2 FY26. Niyogin reported PBT excluding ESOP costs of Rs 1.2 crore in Q2 FY26, while reported PBT including ESOP costs was Rs 0.9 crore. For FY26, PBT excluding ESOP costs was Rs 4.7 crore and reported PBT was Rs 3.4 crore.

Management described Q1 FY27 as slow and said Q2 momentum in core revenues supported its confidence in delivering a profitable FY27. That is management’s stated outlook, not a financial target: the letter does not provide consolidated FY27 revenue, EBITDA or PBT guidance.

What supported Niyogin’s iServeU recovery?

Niyogin’s iServeU business reported net revenue of Rs 18.1 crore in Q2 FY27, with management citing a recovery in overall revenue from Q1 FY27. Management said its Unified Payments Interface, or UPI, acquiring model had stabilised after shifting from a bank-led model to an aggregator-led model, and that transaction volumes had improved significantly.

Recurring software-as-a-service, or SaaS, revenue at iServeU rose to Rs 6 crore in Q2 FY27 from Rs 5 crore in Q1 FY27. Management said the structural move to make the business a SaaS operation was continuing and expected recurring revenue to rise further. The letter does not disclose iServeU’s segment profit or its total Q1 FY27 revenue.

Logistical disruption linked by management to the West Asia situation extended delivery times for Soundbox and point-of-sale, or POS, devices, reducing deployments during Q2 FY27. Even so, Soundbox deployments reached about 6 lakh units and the iServeU order book stood at about Rs 546 crore.

Niyogin said it had tied up with Indian manufacturers and supplies had started, with the objective of easing device-logistics issues in coming quarters. The Rs 546 crore order book is substantially larger than iServeU’s Rs 18.1 crore quarterly net revenue, but the letter gives no delivery timetable, conversion rate or margin information for the backlog.

What are Niyogin’s NBFC targets and safeguards?

Niyogin’s non-banking financial company, or NBFC, recorded a PBT loss excluding ESOP costs of Rs 1.4 crore in Q2 FY27, while assets under management, or AUM, stood at Rs 270 crore including off-book exposure. Management described the performance as measured amid a relatively high-risk environment and said it was focusing on calibrated portfolio growth, disciplined underwriting and partnership-led lending.

The NBFC maintained debt-to-equity below 1.0 in Q2 FY27, according to the letter. Niyogin also announced a strategic credit and sourcing partnership with Sammaan Capital for up to Rs 500 crore through financing, portfolio buyouts and digital-lending synergies. The disclosure does not state the amount of financing, sourcing or portfolio buyouts completed by quarter-end.

Management expects NBFC AUM of Rs 400 crore to Rs 425 crore, a range Rs 130 crore to Rs 155 crore above the reported Rs 270 crore. Management said these targets had been muted to reflect the operating environment. The stated AUM includes off-book exposure, which is relevant when comparing the figure with other lenders’ reported AUM.

What is the status of Niyogin’s composite scheme?

Niyogin has completed the shareholder and creditor approvals required under National Company Law Tribunal, or NCLT, directions for its proposed composite scheme. The company said it had already received approvals from the Securities and Exchange Board of India, BSE and the Reserve Bank of India.

Final NCLT approval was still awaited as of the November 12, 2026 Q2 FY27 shareholder letter. Niyogin did not provide an expected decision date or describe the scheme’s financial effect, leaving the final approval as an unresolved corporate event.

Conclusion

Niyogin’s Q2 FY27 figures show a sequential improvement in operations: net revenue increased from Rs 22.1 crore to Rs 23.9 crore, EBITDA rose from Rs 0.2 crore to Rs 1.4 crore, and PBT excluding ESOP costs narrowed from a Rs 6 crore loss to a Rs 4.4 crore loss. However, gross income, net revenue and EBITDA all remained below Q2 FY26 levels, while PBT excluding ESOP costs moved from a Rs 1.2 crore profit a year earlier into loss.

Next, investors can watch whether Indian device supplies reduce Soundbox and POS deployment delays, whether iServeU converts its approximately Rs 546 crore order book, and whether NBFC AUM advances from Rs 270 crore toward management’s Rs 400 crore to Rs 425 crore target. Final NCLT approval for the composite scheme remains pending, while management’s expectation of a profitable FY27 is an outlook rather than a reported result.