The integrated cash logistics firm recorded a 17.9% sequential increase in total income, although year-over-year margins remain pressured by segment-specific losses and competitive pricing. The board also authorized additional credit support for its subsidiary, Aceware Fintech, to facilitate growing funding requirements.
Radiant Cash Management Services Limited (NSE: RADIANTCMS) announced a recovery in its consolidated financial performance for the third quarter of fiscal year 2026, driven by festive season volumes and a turnaround in its fintech subsidiary. While total income rose compared to the previous year, profitability metrics such as EBITDA and PAT showed year-over-year declines as the company navigated pricing pressures and operational losses in specific divisions.
Key Development
On February 11, 2026, the company’s board approved un-audited standalone and consolidated financial results for the nine-month period ended December 31, 2025. A material development includes the authorization of an additional corporate guarantee of up to ₹200 million for its subsidiary, Aceware Fintech Services Private Limited. This guarantee is intended to secure credit facilities for the unit’s expanding operations. Additionally, the company confirmed that its step-down subsidiary, Ace Money Payment Solutions, was struck off from the Ministry of Corporate Affairs, though the impact is considered immaterial to the consolidated results.
Financial Performance
For Q3 FY26, consolidated total income reached ₹1,260.3 million, marking a 7.2% increase year-over-year and a 17.9% gain sequentially. EBITDA stood at ₹174.8 million, down 25.4% from the same period last year, resulting in an EBITDA margin of 13.9%—a contraction of 606 basis points annually. Profit After Tax (PAT) was ₹115.9 million, reflecting a 22.0% year-over-year decrease but a significant 51.3% jump from the preceding quarter. Return on Equity (ROE) improved to 17.0%, though it remains below historical averages due to losses in the Radiant Valuable Logistics (RVL) segment and pricing pressures in the core business.
Business Outlook & Strategy
Management is prioritizing cost control measures, which contributed to an 80 basis point sequential improvement in EBITDA margins. The current strategy focuses on a turnaround in the Acemoney segment and minimizing losses within the RVL arm. The company added 37 new clients and 174 new end customers during the current financial year so far, aiming to diversify its revenue base.
Segment Updates and Market Situation
The Cash Pick-Up & Delivery segment remains the company’s primary revenue driver, accounting for 60.7% of total revenue in Q3 FY26. Operations are heavily concentrated in Tier 3+ cities, which generate 62% of revenue. While the footprint increased to 14,678 pin codes, total touch points decreased to 75,348 due to the loss of specific regions in Railways, the exit of an e-commerce logistics client following an M&A, and competitive pressures in the microfinance segment.
Sector and Macro Context
Radiant operates as an integrated player in a consolidating cash logistics industry. Total cash movement for the quarter was ₹437.6 billion, aided by a festive season volume boost. The broader industry environment is characterized by intense competition and a shift toward non-metro locations, where bank branch density is limited, providing a structural tailwind for outsourced cash management.
Regulatory Milestones and Management Commentary
The company reported that its current salary structure is largely aligned with the new Indian Labour Codes (2019-2020), suggesting no material financial impact from these regulatory changes at present. Management noted that the company continues to maintain the lowest cash losses in the industry, with losses representing just 0.0017% of total currency movement for the quarter.
Where Radiant Stands Today
The company maintains an extensive network covering 28 states and 8 union territories. Its risk management framework is supported by a workforce where 21% of personnel are ex-armed forces. Despite sequential improvements, the stock faces headwinds from year-over-year margin compression and the loss of specific high-volume contracts in the logistics and railway sectors.