DiGiSPICE Technologies Ltd (DIGISPICE: BSE/NSE) is an India-based fintech platform operating an agent-led distribution network that delivers digital payments, banking access, credit facilitation, and insurance services across rural and semi-urban markets. The company has a market capitalization of approximately ₹600 crore.
The company reported unaudited consolidated financial results for the quarter and nine months ended Dec. 31, 2025 (Q3 FY26), reflecting a strategic transition to a pure-play fintech model, margin expansion, and progress toward breakeven in newer business verticals.
Consolidated Financial Performance
Revenue and Income
For Q3 FY26, consolidated revenue from operations stood at ₹10,913.19 lakh (₹109.13 crore), compared with ₹11,298.37 lakh in Q3 FY25.
Total Comprehensive Income was ₹270.54 lakh, compared with a loss of ₹2,042.57 lakh in the year-ago quarter.
Profit after tax (PAT) from continuing operations was ₹6.7 crore, representing a seven-fold year-over-year increase.
Gross margin increased 16.7% year-over-year to ₹51.3 crore, reflecting improved operating leverage and cost rationalization.
For the nine-month period ended Dec. 31, 2025, profitability improved compared with the prior year, while revenue growth remained moderate.
Management Summary
Management described the quarter as operationally stable but revenue-muted, citing:
- Industry-wide decline of approximately 2.7% in AEPS volumes
- Slowdown in the Cash Management Services (CMS) ecosystem
- Reduction in certain AEPS subsidies
Despite these sector headwinds, the company emphasized successful margin expansion, cost efficiency, and strengthening of its fintech-focused structure.
The strategic shift toward a consolidated fintech entity is largely complete following the discontinuation of the Digital Technology Services (DTS) segment.
Strategic Views and Outlook
Management reiterated focus on scaling its “New Engines”:
- Credit
- Spice Pay
- Insurance distribution
- Savings products
The company highlighted:
- A zero-debt balance sheet
- Annualized ROCE of 12.4%
- Return on Investment (ROI) of 30.6%
The operating model remains asset-light, leveraging its agent network to cross-sell higher-margin financial services.
No quantified revenue or earnings guidance was issued.
Extensive Product Update
AEPS Performance
- AEPS Gross Transaction Value (GTV): ₹15,065 crore, up 13.2% year-over-year
- Off-Us AEPS market share increased to 18.64%
- AEPS cash deposit volumes increased as additional banks integrated into the platform
The company gained market share despite overall industry volume contraction.
Cash Management Services (CMS)
CMS GTV stood at ₹10,533 crore, with sequential moderation attributed to:
- MFI and NBFC ecosystem slowdown
- Exit of a low-margin client
Four new partners were onboarded to strengthen competitive positioning in price-sensitive segments.
Bharat Bill Payment System (BBPS)
- GTV: ₹1,461 crore, up 8.2% year-over-year
- Repeat customer rate: 61.4%
CASA Growth
Lifetime Current and Savings Accounts opened reached 15.1 lakh, with a stated target of achieving 100,000 new monthly account openings.
Credit Business
- Loan disbursements: ₹122 crore, up 108% year-over-year
- Proprietary underwriting using transaction-level data
- First Loss Default Guarantee (FLDG) framework with partners
Management indicated the credit vertical is approaching breakeven.
New Product Launches
During Q3, the company launched:
- Shop Insurance
- Mobile Screen Protection
Pipeline initiatives include:
- Five additional insurance products
- 24K gold savings product in partnership with Jar
Mergers, Acquisitions and Corporate Restructuring
Scheme of Amalgamation
The company is awaiting approval from the National Company Law Tribunal (NCLT) for a scheme to merge:
- Spice Money Limited
- E-Arth Travel Solutions
- Vikasni Fintech
into DiGiSPICE Technologies Ltd.
Equity Consolidation
DiGiSPICE acquired an additional 1.94% stake in Spice Money for ₹449.90 lakh, increasing ownership consolidation of its core fintech subsidiary.
Exits and Dissolutions
- Digital Technology Services classified as discontinued effective July 1, 2024
- Step-down subsidiary Spice Digital FZCO dissolved in April 2025
These actions align with management’s stated objective of operating as a focused fintech entity.
Competitive Analysis
DiGiSPICE operates primarily in rural and semi-urban India, positioning itself as a leading assisted digital payments network.
Competitive dynamics include:
- Digital wallet platforms
- Banking correspondent networks
- NBFC-led credit distributors
- Large fintech aggregators with stronger capital bases
Differentiators include:
- Largest assisted ATM network in rural India
- 16.4 lakh registered agents
- Coverage of 2.55 lakh small towns and 6,486 blocks
- Strong presence in North (34.2%) and East (32.0%) regions
Market share gains in AEPS amid industry contraction suggest customer stickiness, though CMS remains price competitive.
Credit Profile and Financial Strength
The company maintains a debt-free balance sheet.
While no formal external rating update was disclosed, management highlighted:
- ROCE: 12.4%
- ROI: 30.6%
- Credit vertical nearing breakeven
No rating upgrades or downgrades were reported during the quarter.
Geographical Expansion
The platform serves:
- Over 2.7 crore monthly customers
- 16.4 lakh registered agents
- 2.55 lakh small towns
- 6,486 administrative blocks
Regional agent distribution:
- North: 34.2%
- East: 32.0%
- Central: 18.1%
- South: 9.1%
- West: 6.7%
The company did not announce international expansion plans.
Regulatory and Government Framework
The company recorded a statutory exceptional charge of ₹412.59 lakh related to India’s new Labour Codes affecting wage definitions for gratuity and compensated absences.
Its business model is integrated with government-backed digital infrastructure, including:
- Aadhaar-based authentication
- Unified Payments Interface (UPI)
- Bharat Bill Payment System (BBPS)
The company holds regulatory licenses including:
- Prepaid Payment Instrument (PPI)
- BBPS
- IRDAI Corporate Agency
These licenses enable regulated operations under RBI and IRDA frameworks.
Sector Context
India’s fintech sector continues to face:
- Declining AEPS subsidies
- MFI and NBFC credit normalization
- Regulatory cost adjustments
- Competitive pricing pressures
These dynamics influenced quarterly revenue trends despite margin improvement.
Overall Assessment
Q3 FY26 reflected:
- Slight year-over-year revenue contraction
- Significant improvement in comprehensive income
- Gross margin expansion
- Credit vertical approaching breakeven
- Strategic consolidation into a pure-play fintech platform
- Continued expansion of agent-led rural distribution
The quarter underscores operational efficiency gains and structural repositioning amid competitive and regulatory pressures in India’s fintech sector.