RNFI Services Limited: Navigating Growth with Strategic Diversification and Margin Focus in Q3 & 9M FY26

RNFI Services Limited, operating under its prominent brand relipay, has presented its unaudited financial results for the third quarter and nine months ended December 31, 2025 (Q3 & 9M FY26). While the headline revenue for the nine-month period remained largely flat, the company demonstrated remarkable resilience and strategic acumen, achieving significant growth in profitability. This period marks a pivotal phase for RNFI as it continues to pivot towards higher-margin businesses and leverage technological advancements to drive sustainable growth.

For 9M FY26, RNFI reported an overall revenue of INR 729.3 crore. Despite this top-line stability, the company's EBITDA surged by an impressive 46.9% to INR 46 crore, and Profit After Tax (PAT) saw an even more substantial increase of 63.3% to INR 24.1 crore. This robust growth in profitability underscores the effectiveness of the company's focus on margin expansion and operational efficiencies. The management attributed this success to automation-led efficiencies implemented over the past 4-5 months, which have translated into clear margin expansion across Gross Profit, EBITDA, and PAT levels.

Financial Resilience Amidst Shifting Tides

The financial performance for 9M FY26 reveals a strategic shift within RNFI's business segments. The company's revenue split between Non-Forex and Forex businesses was 47.62% and 52.38% respectively. While the Non-Forex segment contributed INR 347.3 crore in revenue with a healthy PAT margin of 6.9%, the Forex business, despite generating a higher revenue of INR 381.9 crore, had a significantly lower PAT margin of 0.03%. This highlights the commodity-like nature of the traditional forex business, where turnover is high but per-transaction profitability is minimal.

Management transparently acknowledged that the overall revenue remained largely flat due to a decline in DMT (Domestic Money Transfer) volumes. The DMT business, a high-volume, low-margin segment, was impacted by regulatory changes introduced by the RBI in November 2024, which mandated Aadhaar biometric-based remitter registration instead of the earlier OTP-based system. This shift led to a INR 20-25 crore revenue lag, which the company successfully offset through growth in other higher-margin businesses. This agility in adapting to regulatory changes and re-prioritizing resources towards more profitable ventures is a testament to RNFI's strategic flexibility.

Here's a snapshot of RNFI's financial performance:

For the quarter Q3 FY26 alone, the company reported a revenue of INR 257.8 crore, marking a 5.6% year-on-year growth. Gross Profit for the quarter increased by 44% to INR 51.6 crore, EBITDA by 46.4% to INR 17.5 crore, and PAT by 59.4% to INR 9.5 crore. This quarterly performance further reinforces the positive trend in profitability and margin expansion.

Strategic Diversification and Technological Edge

RNFI's growth strategy is deeply rooted in diversification and technological innovation. The company's business model, centered around the Relipay platform, integrates various services across Payments, Orchestration, Value-Driven offerings, and other segments. These include Corporate Business Correspondent (BC) services, Prepaid Instruments (PPI), Aadhaarpay, Delinquent Loan Collections, Foreign Exchange Services, Insurance, EMI Collections, Verification Stack, Digital Communication Platform, and Travel services.

The company has been aggressively expanding its product portfolio and reach. New tech verticals launched during 9M FY26, such as Travel, CRA (Corporate Recovery Agent), and the Insurance platform, are showing strong momentum and scalability. The orchestration business has also emerged as a significant contributor to incremental profitability. RNFI's extensive network, comprising 2.2 lakh active Sahayaks (agents) covering over 17,700 PIN codes, facilitates 1.3 million daily transactions, representing a 28% increase from September 2025.

In a significant development, RNFI Money Pvt Ltd, a subsidiary, received AD II License approval from the RBI, enabling a massive kick-off in the forex remittance business from Q1 FY27. This is expected to significantly increase margins in the forex segment. Additionally, RNFI Services Ltd was appointed as a Corporate Recovery Agent for Bank of India and Punjab National Bank, further strengthening its position in high-margin businesses. The company also secured approval for 6 new branches for RNFI Money Pvt Ltd and 2 additional branches for Reliassure Insurance Brokers Pvt Ltd, a wholly-owned subsidiary, from IRDAI, as per corporate announcements on January 16, 2026.

Outlook and Management Vision

Management expressed confidence in sustaining the growth trajectory, particularly in non-forex businesses, targeting 40-50% year-on-year growth. The focus remains on increasing products sold per Sahayak, thereby enhancing monetization from the existing network. The company's in-house 90-member tech team is actively working on AI-driven solutions, which are anticipated to be a