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Novus Loyalty FY26: Profitability Improved, IPO Completed, and International Expansion Takes Center Stage

Novus Loyalty Limited, an AI-powered loyalty, rewards, and customer engagement technology company, closed FY26 with higher profitability and a newly completed SME IPO listing on BSE SME. The year also marked the company’s first earnings call as a listed entity following its listing on 25 March 2026.

For FY26, Novus reported revenue from operations of Rs 127.42 crore, up from Rs 104.62 crore in FY25. Profitability improved sharply as EBITDA rose to Rs 12.33 crore and PAT increased to Rs 9.28 crore. EBITDA margin expanded to 9.68% and PAT margin increased to 7.29%, based on audited numbers presented in the investor deck.

The company positions itself as an end-to-end loyalty and engagement ecosystem provider for enterprises, with a presence across banking, retail, hospitality, and fintech. Management highlighted scale metrics such as 100 plus enterprise customers, over 4 crore consumers on the platform, and transaction processing stated at 40 plus crore per month in the deck, and more than 50 crore per month in the earnings call.

Business model: four verticals but limited revenue disclosure

Novus describes four business verticals:

Technology Solutions: enterprise loyalty and engagement platform implementation and integrations.

Redemption Ecosystem: rewards marketplace for redemption through vouchers, travel, merchandise, and experiences.

Merchant Promotions: merchant-funded campaigns and affiliate commissions to drive transactions.

Digital Voucher Solutions: digital gift cards and voucher distribution infrastructure.

In the earnings call, management emphasized that technology revenue is typically the first line to open when a client is onboarded, especially in BFSI, and that redemption and vouchers tend to scale over time as users accumulate points and begin redeeming. Management also said margin expansion is expected as the company focuses on higher net-margin lines such as technology and merchant promotions, compared with redemption and vouchers where procurement costs are attached.

However, the materials do not provide any audited revenue split by vertical or geography. Investors therefore have to rely on management narrative rather than segment reporting for understanding where growth and profitability are concentrated.

FY26 financial performance: faster profit growth than revenue

The audited profit and loss statement in the deck shows the following:

Management commentary on the call framed FY26 as a year of improved operating leverage, with revenue growth of about 22% while EBITDA and PAT grew much faster. The management team also linked margin improvement to program maturity, suggesting that as programs move into later stages, redemption and engagement increase and the economics improve.

The cash flow statement in the deck shows net cash from operating activities of Rs 19.58 crore in FY26, with a significant increase in cash and cash equivalents by year-end. Financing cash flows were also positive, which is consistent with the IPO proceeds, though management stated that IPO proceeds were not utilized in the previous year.

Scale, compliance, and enterprise readiness

The presentation highlights a set of enterprise-grade capabilities that are particularly relevant for BFSI deployments:

Two deployment models: on-premise for banks and large enterprises requiring data control, and SaaS for faster go-live.

API-first infrastructure and omnichannel capability.

AI layer for personalization and engagement automation.

Certifications and compliance including ISO/IEC 27001:2022, CMMI Maturity Level 3, and PCI DSS 4.0.1 Level 1 compliance (certificate issued 23 February 2025, expiration 27 February 2026).

Management also referred to DPDP-related compliance expectations in banking and described why both on-premise and SaaS options are necessary for different client preferences.

Recent wins: Central Bank of India and Bank of Abyssinia

A key business update in the deck is the Central Bank of India mandate, described as a loyalty and customer engagement contract valued at Rs 88 crore. Management characterized this as strengthening the company’s BFSI positioning and creating long-term recurring revenue opportunities through ongoing campaign management and platform-led operations.

International expansion was reinforced through a Bank of Abyssinia engagement, described as a purchase order valued at approximately Rs 4 crore, with management stating that additional revenue lines could open once the technology layer is live.

The client list in the deck also names NPCI, IDBI Bank, Bank of Maharashtra, Equitas, Sparkle, and PRYPCO, among others.

Growth strategy: international expansion, AI, and SaaS

The deck lays out strategic priorities for the next 2 to 3 years: international expansion, AI-powered loyalty innovation, enterprise client acquisition, ecosystem expansion, and SaaS growth acceleration.

On the call, management added color on how this expansion may be executed:

UAE: the company stated it is in the process of creating a wholly owned subsidiary in the UAE to serve clients in the MENA region.

Africa: management said it has onboarded two partners and is using partnerships to expand.

US and Australia: management discussed exploring partnerships or a small acquisition, including the rationale that local entities help with insurance requirements and local billing expectations.

Management also quantified international revenue in the Q&A, stating FY26 international revenue was around Rs 3.3 crore and that it expects at least a doubling, possibly tripling, though it also noted that mix percentages can shift depending on India performance.

IPO: capital allocation focus on growth

The deck states the SME IPO was launched in March 2026 with an issue size of Rs 60.15 crore and post-IPO market cap of Rs 227 crore plus. Management framed the IPO as not only fundraising but also improving credibility and positioning in the market.

In the call, management said IPO proceeds will be used for product and technology enhancement, business expansion, sales and marketing scale-up, and strategic opportunities. In Q&A, management also referred to planned allocation toward business expansion activities and stated that utilization would be phased across the current and next year.

What to watch

The documents highlight a company that is scaling in BFSI and positioning itself as a full-stack provider, supported by security certifications and the ability to deploy both on-prem and SaaS.

But investors will likely want clearer reporting over time on revenue mix across the four verticals, geographic contribution, and the economics of each revenue line. Management’s margin expansion thesis rests on growing technology and merchant promotion revenues and on program maturity dynamics, but these are not yet visible in segment disclosures.

Still, FY26 numbers show a clear improvement in profitability and cash generation, and management’s commentary indicates an intent to accelerate sales capacity and international footprint post-IPO.

The central near-term question is execution: whether the company can convert large BFSI mandates and early overseas wins into sustained, diversified growth while maintaining compliance standards and scaling its product-led model. */