Shares of Protean eGov Technologies were locked in the 20 per cent upper circuit on Thursday after the company reported a strong set of March-quarter earnings, driven by robust growth in revenue and profitability.
Despite the sharp rally, the stock remains a significant underperformer, trading well below both its IPO price and its record high reached in 2024.
For the quarter ended March 2026, Protean eGov reported a 38.5 per cent year-on-year increase in revenue to Rs 307.5 crore. On a sequential basis, revenue rose 34.4 per cent.
EBITDA more than doubled to Rs 38.5 crore from Rs 18.1 crore a year earlier, reflecting improved operating leverage across the business.
EBITDA margin expanded to 12.5 per cent from 8.2 per cent in the corresponding quarter last year.
The company’s tax services business, one of its key revenue contributors, recorded growth of 17.5 per cent year-on-year. The expansion was supported by a 232-basis-point gain in market share and a sharp increase in PAN card issuances during the quarter.
For the full financial year, EBITDA margin improved by nearly 200 basis points to 11.6 per cent from 9.7 per cent in the previous year.
However, investors will also be monitoring the impact of regulatory changes relating to PAN documentation that came into effect from 1 April 2026, which could influence business trends going forward.
Protean eGov has a widely dispersed ownership structure with no identifiable promoter group. Mutual funds held only 2.22 per cent of the company as of the March quarter.
Among institutional shareholders, Canara Bank, Bank of Baroda, Punjab National Bank, Axis Bank and State Bank of India together own a 13.11 per cent stake in the company.
Retail investors remain the dominant shareholder category. Around 2.1 lakh retail shareholders holding shares worth up to Rs 2 lakh collectively own more than 45 per cent of the company, while larger retail investors hold another 9.6 per cent stake.
Well-known market investors Mukul Agrawal and Ramesh Damani held stakes of 1.48 per cent and 1.05 per cent, respectively, at the end of the March quarter.
Even after Thursday’s 20 per cent upper circuit move, the stock remains around 17 per cent below its IPO price of Rs 792. It is still down 13 per cent so far this year after having fallen 61 per cent during 2025.
From its all-time high of Rs 2,225 reached in August 2024, Protean eGov shares remain nearly 70 per cent lower, highlighting the scale of the correction despite the recent earnings-driven rebound. |
