Buy Rating on Protean eGov Technologies: Target Price Rs 825

Protean eGov Technologies Reports Strong Q4FY26 Earnings

Protean eGov Technologies has reported a significant increase in revenue for the quarter ending March 31, 2026. The company's revenue stood at Rs3.1 billion, marking a year-over-year (y/y) growth of 38% and a quarter-over-quarter (q/q) growth of 34%.

The revenue growth can be attributed to a surge in PAN (Permanent Account Number) issuances ahead of revised documentation norms effective April 1, 2026. Additionally, the company booked a one-time storage charge of Rs440 million, contributing to the overall revenue. The company's adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) more than doubled on a year-over-year basis, driven by improved operating leverage and a better revenue mix.

Protean eGov Technologies has made significant strides in its new businesses, with revenues crossing the Rs1 billion mark in the fiscal year 2026. The company's turnkey pipeline now stands at over Rs15 billion, indicating a substantial growth potential in the coming years.

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Revenue and PAT Growth Projections

Based on the company's steady PAN and pension revenue, as well as its growth potential from new and international businesses, we expect Protean eGov Technologies' revenue-to-profit-after-tax (PAT) ratio to clock a compound annual growth rate (CAGR) of 12% and 17% respectively over the fiscal years 2026-2028.

Maintaining BUY Rating

We maintain a BUY rating on the stock with a revised target price (TP) of Rs825, valuing the company at 24 times its estimated price-to-earnings ratio for the fiscal year 2028.

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