Niyogin Fintech Q1 FY26: Profitability, Growth, and Future Outlook

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Introduction

Niyogin Fintech Limited has started FY26 with a landmark achievement — both its core businesses, iServeU and the NBFC division, turned profitable together for the first time. This marks a pivotal shift from growth-focused expansion to a more balanced approach that blends scale with sustainable profitability.

Key Financial Highlights

  • Net Revenue: ₹24.2 Cr (+9% QoQ, +116% YoY)

  • AUM: ₹320.3 Cr (+15% QoQ, +54% YoY)

  • EBITDA: ₹2.3 Cr (up 360% QoQ) — four straight quarters of positive EBITDA

  • Gross Disbursements: ₹160 Cr — highest ever in NBFC history

  • Outstanding Order Book (iServeU): ₹585 Cr, 31 active contracts

Segment Performance

iServeU

  • Net Revenue: ₹15.3 Cr (+12% QoQ, +168% YoY)

  • EBITDA: ₹1.8 Cr, maintaining profitability momentum

  • Contract wins with Central Bank of India, Bank of Maharashtra, SVC Co-operative Bank, among others

  • Soundbox deployment: 268.5K units (73.2K added in Q1)

  • Order book growth: From ₹400 Cr in Q4 FY25 to ₹585 Cr in Q1 FY26

Outlook: FY26 revenues projected at ₹70–80 Cr with 12–15% EBITDA margins. Expansion into international markets is on the cards post regulatory approvals.

NBFC

  • AUM: ₹320.3 Cr — nearly half in Equated Daily Installments (EDI) model

  • Net Interest Income: ₹9.3 Cr (+11% QoQ, +20% YoY)

  • PBT (Ex-ESOP): ₹1 Cr vs. a ₹1.7 Cr loss in Q1 FY25

  • Focus on cost control and operating leverage to drive Q2+ earnings

Growth Driver: Merchant EDI loans embedded into platforms like Khatabook, Meesho, and Ninjacart, offering small-ticket, high-frequency, low-risk lending.

Operational Achievements

  • 1,222 total partnerships — 321 added in Q1 FY26

  • Embedded lending stack delivered 21% QoQ growth in loan volumes

  • API hits rose by 33% QoQ (~40 lakh hits in Q1 FY26)

  • Diversified product stack covering acquiring, agency banking, issuance, switching, lending, and value-added services

Pros and Cons for Investors

Pros

  1. Sustained Profitability: Four consecutive profitable quarters indicate operational stability.

  2. Strong Order Book: ₹585 Cr order book ensures revenue visibility.

  3. Diversified Revenue Streams: Combination of SaaS, program management, NBFC lending.

  4. High-Quality Governance: Board with seasoned industry veterans.

  5. Scalable Tech Platform: In-house capabilities reduce vendor dependence and enhance margins.

  6. Attractive Valuation Potential: Guidance indicates ~2x revenue growth in FY26.

Cons

  1. Execution Risk: Large order book requires efficient delivery to convert into revenue.

  2. Regulatory Dependencies: iServeU’s potential listing and expansion are subject to approvals.

  3. Competitive Pressure: Both payments and lending markets are highly competitive.

  4. Margin Sensitivity: EBITDA targets rely heavily on controlling operating expenses.

Investment Rationale

  • Growth Potential: FY26 guidance suggests ~2x revenue growth.

  • Profit Visibility: Established cost controls and high-margin models support earnings.

  • Strategic Partnerships: Presence in high-growth merchant platforms and major banks.

  • Long-Term Scalability: Potential to expand internationally post demerger.

Conclusion

Q1 FY26 marks a turning point for Niyogin Fintech. With profitability achieved in both core divisions, a robust order pipeline, and growing adoption of EDI-based lending, the company is poised for strong and sustainable growth. While regulatory hurdles and competitive challenges remain, the fundamentals suggest a well-positioned fintech player ready to capture the next wave of digital finance growth in India.

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