In the midst of India’s accelerating digital public infrastructure (DPI) revolution, Protean eGov Technologies has once again attracted strong conviction from major brokerages. Both Anand Rathi Research and ICICI Direct have reiterated their ‘BUY’ ratings on the stock, citing robust new-business momentum, a powerful RFP pipeline, and high visibility for margin expansion.
Despite temporary softness in legacy segments, analysts view Protean eGov as entering a fresh multi-year growth cycle powered by new-age platforms, UIDAI-led scale-up, and its dominant position in pension CRA infrastructure.
🚀 Dual Buy Calls with Strong Upside Potential
Anand Rathi
- Rating: BUY
- Target Price: INR 1,235
- Upside: ~45% from INR 846
- Highlights strong expansion in new & international verticals
- Forecasts 14% revenue CAGR and 16% PAT CAGR for FY25–FY28
ICICI Direct
- Rating: BUY
- Target Price: INR 1,070
- Upside: ~26%
- Sees a clear margin recovery and strong RFP conversion
- Predicts new-age businesses to contribute ~25% of revenues in the next 2–3 years
Both brokerages believe Protean’s deep DPI stack, strong annuity revenues, and execution capabilities make it a compelling long-term digital infrastructure story.
Mukul Agrawal’s High-Conviction Bet on Protean eGov Technologies
Adding to this rising institutional conviction, marquee investor Mukul Agrawal has also taken a notable position in the company. His holdings—valued at INR 51.7 crore with a 1.5% stake—underscore growing smart-money confidence in Protean’s long-term role in India’s digital governance architecture. Formerly known as NSDL e-Governance Infrastructure, the company has built crucial DPI layers like PAN platforms, Aadhaar authentication, e-KYC, and pension CRA systems, reinforcing its status as a key digital governance catalyst.
📊 Protean eGov Q2 FY26 Snapshot: Revenue Climbs, Margins Temporarily Dented
Protean eGov delivered INR 250.5 crore in revenue during Q2 FY26—14% YoY growth and 19% QoQ growth—driven primarily by explosive expansion in new businesses (up 513% YoY) and steady momentum in pension CRA.
Key Highlights
- EBITDA: INR 29.3 crore
- EBITDA Margin: 11.7% (decline due to front-loaded costs)
- PAT: INR 23.9 crore (−14.9% YoY)
- Gross Margin: 43.28%
- New business contribution: 17% (vs 3% last year)
Why Costs Increased
- New offices opened in Mumbai and Dubai
- Infra investments for major RFP wins (CERSAI CKYC, Bima Sugam)
- Significant capex toward the UIDAI ASK rollout
Despite these investments, analysts expect a sharp improvement in operating leverage from Q3 onwards.
🧭 Long-Term Growth Strategy: Order Book Swells to INR 1,600 Crore
Protean’s long-term execution pipeline has strengthened materially.
🔹 UIDAI ASK Mandate – INR 1,370 Crore
- District-level Aadhaar Seva Kendras across 188 districts
- Expected to generate INR 200 crore annually for six years
- Revenue impact begins in Q3 FY26; full ramp-up in FY27
🔹 New Businesses Scaling Rapidly
Includes:
- Open Digital Ecosystems
- Cloud & InfoSec
- Data Stack Platforms
- International DPI-as-a-service projects
Contribution has surged from 2–3% to 17% YoY.
🔹 Pension CRA – The Core Revenue Engine
- 97–98% national market share
- Added 41 lakh new subscribers in Q2
- Massive long-term potential driven by India’s low pension penetration (~6%)
🔹 PAN & Identity Services
- PAN issuance market share stable at ~58%
- The identity segment revenue declined due to tariff slabs
- However, eSign, e-KYC, and Aadhaar Auth volumes remain strong
🤖 Digital & AI-First Technology Edge
Protean eGov is one of the few Indian platforms enabling all four layers of digital identity: Aadhaar Authentication, e-KYC, Online PAN Verification, e-Sign
Tech-led enhancements include:
- Higher authentication volumes
- Improved fraud detection
- Significant scalability without proportional costs
AI-based automation and security upgrades are expected by FY26.
💰 Valuation & Profitability Snapshot
Combined Brokerage Estimates
| Metric | FY25 | FY26E | FY27E | FY28E |
| Revenue | 840.7 | 921.1 | 1,110.1 | 1,249.1 |
| PAT | 92.5 | 99.0 | 126.0 | 143.9 |
| EBITDA Margin | 9.6% | 10.7% | 11.8% | 11.8% |
| RoE | 9.3% | 9.4% | 11.1% | 11.8% |
| P/E (x) | 37.0 | 34.5 | 27.2 | 23.8 |
| New Business Mix | 4% | 17% | ~25% | — |
Analysts expect a 16% PAT CAGR between FY25 and FY28, along with consistent margin expansion as higher-margin RFP projects scale.
🏁 Analyst Verdict
- Anand Rathi: Calls Protean eGov a “resilient, high-visibility DPI leader entering strong operating leverage” thanks to large annuity-rich mandates and a strengthening new-business ecosystem.
- ICICI Direct: Describes Protean eGov as a “cash-rich digital infrastructure franchise with clear drivers of sustainable margin recovery and growth diversification.”
Both agree the company is well-positioned to emerge as a multi-vertical, high-margin DPI powerhouse by FY27.
📌 Investment Considerations
Positives
✔ Massive RFP pipeline worth INR 1,600 crore
✔ Dominant market share in pension CRA
✔ UIDAI ASK mandate ensures multi-year revenue visibility
✔ Strong new-business acceleration
✔ Cash-rich balance sheet (~INR 80+ crore)
✔ Margin expansion expected from H2 FY26 onward
Risks
⚠ Heavy dependence on government projects
⚠ PAN pricing pressure due to the slab-based model
⚠ PAN 2.0 architecture transition may hit FY27 onwards
⚠ Cybersecurity & system stability risks
⚠ Execution risk in large-scale RFP rollouts
⭐ Final Take
Protean eGov Technologies is entering a high-visibility growth phase where new business execution, large government mandates, and operating leverage are expected to unlock multi-year value. With dual BUY ratings from top brokerages and clear earnings tailwinds, the stock offers a compelling mix of growth, stability, and long-term structural demand within India’s rapidly expanding digital public infrastructure ecosystem.
For medium-to-long-term investors, Protean eGov stands out as a strong digital governance and DPI-as-a-service opportunity poised for sustained value creation. For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription, stay tuned to IPO Central.