| Particulars | Q1 FY26 | Q1 FY25 | YoY % | FY24-25 |
|---|---|---|---|---|
| Total Income | 7,034.7 | 5,959.7 | 18.0% | 25,902.6 |
| Total Expenses | 6,567.5 | 5,649.1 | 16.3% | 24,942.7 |
| EBIDTA | 933.0 | 744.9 | 25.3% | 2,812.3 |
| Profit before Tax (PBT) | 467.2 | 310.5 | 50.5% | 959.9 |
| Tax Expenses | 135.3 | 87.1 | 55.3% | 320.9 |
| Profit after Tax (PAT) | 331.9 | 223.5 | 48.5% | 639.0 |
| Cash Profit (PAT + Depreciation) | 761.6 | 612.7 | 24.3% | 2,308.7 |
Financial Performance
Vakrangee reported that revenue grew by 18.0% year-on-year, and profit after tax increased by 48.5% year-on-year. Approximately ₹5.5 crore in revenue was eliminated during consolidation due to intercompany sales of ATM products and services. The company anticipates continued growth in margins and profitability as it expands its network and benefits from operating leverage.
Operational Highlights
In Q1 FY26, the quarterly Gross Transaction Value (GTV) exceeded ₹13,928.4 crore, and the number of transactions surpassed 2.6 crore. Vakrangee is strategically focusing on non-cash-based banking offerings, including account openings, loan products, insurance services, fixed deposits, mutual funds, and NPA recovery, to enhance financial inclusion and value-added services.
Vortex Engineering, a subsidiary, reported a 23.2% overall revenue growth, a 57.6% increase in ATM machines shipped, and a 25.6% revenue growth in its AMC business year-on-year. The company shipped 657 ATM machines in Q1 FY26 and has a strong order visibility for over 5,000 ATMs in FY26. Vakrangee also received a Letter of Intent (LOI) from Punjab & Sind Bank for 600 new ATM machines.
Vakrangee Limited, along with its subsidiaries, is debt-free and maintains a robust balance sheet, enabling it to support expansion plans and pursue long-term growth. The company is strategically focusing on high-margin businesses to improve profitability and phasing out low-margin businesses to optimize operations, with the long-term aim of enhancing margin expansion and sustainable growth.
Vakrangee Kendra Performance
As of Q1 FY26, Vakrangee has a presence in 33 states/UTs and 605 districts, with a total of 22,892 outlets. Approximately 83% of these outlets are located in Tier IV, V, and VI cities. The platform facilitated 2.6 crore transactions with a total GTV of approximately ₹13,928.4 crore.
The ATM service includes 5,394 ATMs, which recorded 74.3 lakh transactions with a GTV of approximately ₹2,157.6 crore. Around 76% of the ATM services are in Tier IV, V, and VI cities. The banking service facilitated approximately 2.9 lakh account openings and 1.7 crore transactions, with a total GTV of approximately ₹11,743.8 crore. Additionally, approximately 2.0 lakh insurance/pension schemes were sold.
Vortex Engineering Performance
Vortex Engineering reported that 657 ATM machines were shipped, marking a 57.6% year-on-year growth in the number of ATM machines shipped. The company achieved PAT profitability in the current quarter and secured strategic software deals from Caribbean Island & Africa. Vortex has an order book visibility of 5,000 ATMs in FY26 and received an LOI from Punjab & Sind Bank for 600 new ATM machines. The high-margin IP software (PERFO) business is witnessing strong growth and profitability, and the AMC business is showing solid growth with rising annuity-based revenue.
Growth Strategy Initiatives
Vakrangee is focused on faster expansion of its Kendra network by leveraging master franchisees, with plans to achieve 100% district coverage by March 2026. The company is also expanding its ATM network by launching Mini ATMs and aims to deploy 3,000 new ATM machines in FY26. The increase in the interbank fee by RBI is expected to boost ATM expansion and margins, potentially impacting EBITDA positively by approximately ₹5–10 crore in FY26.
Vakrangee is strategically focusing on expanding financial services such as loans, insurance, mutual funds, and equities, targeting Tier 3–6 cities. It has also forayed into private label products under the e-commerce category across the Kendra network, launching a private & white label apparel range.
Insurance Services Expansion
Vakrangee has added new insurance partnerships with Ageas Federal Life Insurance and Universal Sompo General Insurance. The company aims to expand insurance reach through strategic partnerships and tailored offerings, launching affordable, small-ticket insurance products specifically for rural and semi-urban customers.
Vortex Engineering Growth
Vortex Engineering is positioned for strong growth, driven by a large growing domestic & replacement market. The company has supplied more than 14,000 ATM machines and has strong revenue visibility in FY26 with a robust order of 5,000 ATM Machines. The company's unique offerings are suited to emerging markets, with 9 patents in the field of ATM & Cash Dispensers.
