Protean eGov profit drops 38% despite September revenue rise

For the quarter ended September 30, 2026, Protean eGov Technologies Limited reported standalone profit of Rs 16.33 crore, down 38% year on year, although revenue from operations rose 8% to Rs 270.46 crore. Protean eGov’s total expenses increased Rs 39.02 crore, exceeding the Rs 25.57 crore rise in total income.

Why did Protean eGov’s September-quarter profit decline?

Protean eGov’s standalone profit for the quarter ended September 30, 2026 fell Rs 9.87 crore from Rs 26.20 crore in the year-earlier quarter to Rs 16.33 crore. Profit before tax declined to Rs 21.18 crore from Rs 34.63 crore, even as total income increased to Rs 289.75 crore from Rs 264.18 crore.

The reported figures show expenses rose faster than income in the comparison. Total expenses increased to Rs 268.57 crore from Rs 229.55 crore, while profit before exceptional items and tax fell Rs 13.45 crore to Rs 21.18 crore. No exceptional item was recorded for either of the two quarterly periods in the statement.

Which costs rose in Protean eGov’s September quarter?

Protean eGov’s processing charges, its largest reported expense line, increased Rs 9.99 crore year on year to Rs 91.49 crore in the September 2026 quarter. Employee benefits rose Rs 9.69 crore to Rs 67.22 crore, while system implementation, support and maintenance costs rose Rs 4.32 crore to Rs 60.06 crore.

Depreciation and amortisation increased to Rs 18.92 crore from Rs 10.17 crore, and other expenses rose to Rs 27.75 crore from Rs 22.45 crore. Finance costs were Rs 3.07 crore against Rs 1.51 crore, while the allowance for expected credit loss declined to Rs 6 lakh from Rs 65 lakh. Protean eGov says system implementation, support and maintenance includes equipment and software-licence costs for project delivery.

The sequential comparison was different from the year-on-year result. Revenue from operations rose Rs 20.01 crore from Rs 250.45 crore in the quarter ended June 30, 2026, while total expenses rose Rs 10.26 crore from Rs 258.31 crore. Profit for the period therefore increased from Rs 5.98 crore in June to Rs 16.33 crore in September, but remained below the Rs 26.20 crore reported a year earlier.

How did Protean eGov perform in the first half?

Protean eGov reported revenue from operations of Rs 520.91 crore for the half year ended September 30, 2026, compared with Rs 459.48 crore in the corresponding prior-year half. Profit for the period fell to Rs 22.31 crore from Rs 52.70 crore, while profit before tax declined to Rs 28.94 crore from Rs 69.65 crore.

Total income increased Rs 53.05 crore to Rs 555.82 crore during the first half, but total expenses rose Rs 93.76 crore to Rs 526.88 crore. Employee benefits reached Rs 135.03 crore from Rs 113.18 crore, system implementation, support and maintenance rose to Rs 127.44 crore from Rs 93.85 crore, and depreciation and amortisation increased to Rs 36.24 crore from Rs 21.01 crore.

Basic earnings per share, or EPS, were Rs 5.49 for the six months ended September 30, 2026, compared with Rs 12.99 in the prior-year half, with the company describing the latest first-half EPS as annualised. September-quarter basic EPS was Rs 4.02 and diluted EPS was Rs 4.00, compared with Rs 6.46 and Rs 6.42 respectively a year earlier; the quarterly figures were not annualised.

What do Protean eGov’s balance sheet and cash flows show?

Protean eGov’s total assets were Rs 1,517.59 crore at September 30, 2026, up from Rs 1,476.76 crore at March 31, 2026, while total equity decreased to Rs 1,062.98 crore from Rs 1,076.97 crore. Trade receivables increased to Rs 269.07 crore from Rs 202.71 crore, and cash and cash equivalents rose to Rs 52.22 crore from Rs 47.45 crore.

Property, plant and equipment rose to Rs 150.18 crore from Rs 62.92 crore, while capital work-in-progress increased to Rs 20.16 crore from Rs 1.77 crore. Non-current lease liabilities were Rs 102.72 crore and current lease liabilities were Rs 24.93 crore at September 30, 2026, compared with Rs 69.69 crore and Rs 17.80 crore respectively at March 31, 2026.

Net cash used in operating activities was Rs 20.69 crore for the six months ended September 30, 2026, compared with Rs 47.71 crore used in the prior-year period. Investing activities generated Rs 41.66 crore after Rs 93.50 crore of purchases of property, plant and equipment including capital advances, while financing activities used Rs 16.20 crore.

What business and share-plan disclosures did Protean eGov make?

Protean eGov describes its business as IT services, covering citizen services, e-governance solutions, system integration, business process re-engineering, data-centre co-location and IT consulting for citizens, corporates and the government. It reported a single business segment and one geographic segment, India, so the results do not provide a revenue or profit split by service line.

During the half year ended September 30, 2026, Protean eGov granted 3,39,665 new stock options to eligible employees under its 2017 employee stock option plan. It also allotted 1,62,434 equity shares following option exercises, taking paid-up equity share capital to Rs 40.78 crore at September 30, 2026, from Rs 40.61 crore a year earlier.

Protean eGov’s board approved the unaudited standalone results on November 5, 2026. The statutory auditor issued an unqualified limited-review report for the quarter and half year ended September 30, 2026, and the company stated that the results were prepared under Indian Accounting Standard 34 for interim financial reporting.

Conclusion

Protean eGov increased standalone revenue in both the September quarter and first half, but the rise in expenses exceeded the increase in total income in each year-on-year comparison. The September-quarter gap was Rs 39.02 crore of additional expenses against Rs 25.57 crore of additional total income, resulting in profit of Rs 16.33 crore versus Rs 26.20 crore a year earlier.

The next reported period will show how Protean eGov’s processing charges, employee benefits, system implementation costs and depreciation develop after their September-quarter levels of Rs 91.49 crore, Rs 67.22 crore, Rs 60.06 crore and Rs 18.92 crore respectively. Investors can also watch subsequent disclosures under the 2017 employee stock option plan after the 3,39,665 options granted and 1,62,434 shares allotted in the first half.