Synopsis: Vakrangee jumped sharply after reporting a stellar Q2 performance. Despite revenue growing by just 6 percent YoY, it reported a net profit growth of 413% during the same period, where its subsidiary played a key role in its performance.
The shares of this leading business solutions provider are in focus after reporting a stellar Q2 FY26 performance. In this article, we will dive more into the details of its financial performance.
With a market capitalization of Rs 952 crore, the shares of Vakrangee Ltd reached a day’s high of Rs 9.10 per share, up 6 percent from its previous day’s closing price of Rs 8.58 per share. Over the past five years, the stock has delivered a negative return of 71 percent, as compared to NIFTY 50’s positive return of 117 percent.
Q2 Highlights
Vakrangee has reported a total revenue from operations of Rs 69 crore in Q2 FY26, a growth of 6 percent as compared to Rs 65 crore in Q2 FY25. However, on a quarter-on-quarter basis, it grew slightly by 0.35 percent from Rs 68.83 crore.
EBITDA grew by 45 percent to Rs 8.7 crore in Q2 FY26 as compared to Rs 6 crore in Q2 FY25. Additionally, margins also expanded by 320 bps to 12.4 percent in Q2 FY26 as compared to 9.2 percent a year ago.
Regarding its profitability, it reported a net profit of Rs 3.03 crore in Q2 FY26, a staggering growth of 413 percent as compared to Rs 59 lakh in Q2 FY25. However, on a quarter-on-quarter basis, it declined by 9 percent from Rs 3.32 crore.
Coming to its revenue segmentation, Vakrangee derived 45 percent of its revenue from its BFSI segment, 27.6 percent from the sale of ATM products/services, 18.5 percent from ATM, and the remaining 8.9 percent from e-commerce and other services.
Coming to its key aspect of the business, which is the Gross Transaction Value (GTV), reached Rs 12,929 crore, where a staggering 83.9 percent value is contributed through its BFSI domain, followed by 15.9 percent with ATM and the rest 0.2 percent through e-commerce and others.
One of the key highlights in this quarter is the exceptional service delivered by its subsidiary, Vortex Engineering delivered a staggering revenue growth of 57 percent to Rs 23 crore in Q2 FY26 as compared to Rs 14.7 crore in Q2 FY25.
Additionally, the main growth can be attributed to its high shipment of ATM’s. In Q2 FY25, it shipped 393 atm machines, which grew by a staggering 43 percent and reached 562 in figure in Q2 FY26.
Vortex Engineering designs and provides cost-effective ATMs and ATM management software. Known for its “green” ATMs, the company helps banks improve efficiency, reduce costs, and expand digital banking, promoting financial inclusion worldwide.
Vakrangee Limited was established in 1990 and operates one of India’s largest last-mile distribution platforms with a nationwide presence. The company offers a range of services, including real-time banking, financial services, ATMs, insurance, e-governance, e-commerce, healthcare, and logistics, all through its Vakrangee Kendra outlets and the BharatEasy Mobile Super app.
Vakrangee has built a network of around 23,000 outlet points and more than 5,700 ATMs, with the goal of further expanding its presence in both rural and urban areas, driving greater financial inclusion across India.
Written by Satyajeet Mukherjee
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