Protean eGov Technologies Ltd (BSE: 544021) Q3 2026 Earnings Call dated Feb. 12, 2026
Corporate Participants:
Pushpa Mani — Vice President, Head Investor Relations
Mr. Suresh Sethi — Managing Director & Chief Executive Officer
Mr. Sandeep Mantri — Chief Financial Officer
Analysts:
Bajrang Bafna — Analyst
Rohan Mandora — Analyst
Divij Punjabi — Analyst
Avikshit Vijay Viswanath — Analyst
Kunal Bhatia — Analyst
Guru Prasad — Analyst
Viraj Mithani — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to protein eGov Technologies Limited Q3 and 9 month FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchtones. Please note that this conference is being recorded. I now hand the conference over to Ms. Pushpa Mani, head Investor Relations for her opening remarks. Thank you. And over to you ma’.
Am.
Pushpa Mani — Vice President, Head Investor Relations
Thanks Ikra. Good afternoon everyone. I welcome you all to the Q3 and 9 months FY26 results discussion. You must have received the results, press release and investor presentation of the company which is available on BSC and NSC as well as on the company’s website. As usual, we will start the forum with the opening remarks by our Managing Director and CFO and then we will open the floor for the question and answer session. If any of your questions remain unanswered due to paucity of time, you may reach out to us afterwards. The management on today’s call would be represented by Mr.
Suresh Sethi, MD, CEO, Mr. V Eeshwaran, Edn COO, Mr. Rakesh Doshi, CBO, Mr. Sandeep Mantri, CFO and myself. Before we begin, I would like to mention that some of the statements in today’s discussion is may be forward looking in nature and we believe that the expectations contained in these statements are reasonable. However, these statements involve a number of risks and uncertainties that may lead to different results. With this I invite our MD Mr. Suresh Sethi to address us all. Thank you. And over to you sir.
Mr. Suresh Sethi — Managing Director & Chief Executive Officer
Thank you very much. Good afternoon everyone and many thanks for joining us today. As India’s digital economy continues to expand. The importance of trusted population scale digital. Infrastructure has never been greater. We remain deeply embedded in this journey in supporting governments, institutions, enterprises, tool resilient platforms that combine scale, security and reliability. Against this backdrop, I am pleased to share that Protean delivered a steady and resilient performance in quarter three of FY26. The revenue from operations grew 13% year. On year to rupees 229 crores. This was driven by continued gain in our tax services business and increasing contribution from new businesses. The EBITDA grew 34% year on year to 46 crores with margins expanding by 335 basis points to 19%. Adjusted profit after tax stood at 26 crores resulting in a PAT margin of 10.9%. Our balance sheet remains a key strength. As of December 31st we had over 800 crores of cash and cash equivalents and we continue to remain debt free. This financial position goes without saying gives us the ability to invest selectively while maintaining long term discipline.
Now turning to our core businesses tax services, we continue to strengthen our leadership position and the same happened during this quarter. We issued over 1.1 crore PAN cards and consolidated our market share at 59%. The growth was supported by an overall increase in PAN issuance following the extension of the Aadhaar Pan linkage deadline along with the sequential gain in market share. This reflects the trust that citizens and institutions place in our systems and our ability to deliver reliably At a national scale. The CRA business demonstrated steady performance at a macro level. The pension segment is entering a new phase of structured growth.
Multiple regulatory reforms have been introduced primarily focusing on significantly expanding pension penetration, particularly in the non government sector. The regulator has guided a shift towards an AUM linked charge structure with the objective of increasing overall assets under management. The introduction of multi scheme framework and withdrawal flexibility are some of the important steps towards creating sustainable economic and broader coverage over the long term. We onboarded over 35 lakh new subscribers during this quarter and captured 94% of. The incremental market additions. We continue to hold a dominant 98% market share across NPS, APY and UPS. Coming to our identity business, we saw strong volume growth across online ban verification, EKYC and Aadhaar Auth. This was in tandem with the rising demand for digital identity solutions across sectors. While revenues were impacted by flab based pricing and competitive pressures, our focus remains on scaling volumes, expanding market share and growing value added offerings. Our new businesses are now beginning to make a visible impact. In the first nine months of FY26 they contributed in double digits 11% of operating revenue compared to 4% in FY25.
We continue to expand across multiple open digital ecosystems spanning insurance, health, agriculture, education and identity. This diversification strengthens our role as a platform builder across multiple high growth sectors. Further, we have successfully completed the first phase of the UIDI mandate and operationalized 34 Adhareseva Kendras across 19 states and Union territories. Revenue generation has commenced and early performance is in line with expectations providing visibility on stable and recurring revenues. Further, we also expanded our international footprint. We won a strategic level national Mandate valued at 25 crores to implement the digital public infrastructure for the Ethiopian agricultural ecosystem.
As a system integrator, Protean will deliver an AI powered digital platform covering end to end design, development, deployment and support. With this engagement we have now secured four international mandates across three markets. Our turnkey projects pipeline remains strong. The end executed order book stands at over 1600 crores, nearly twice our annual revenue. These opportunities are largely anchored in digital identity and open digital ecosystems. During the quarter we also made a strategic investment. We acquired a 4.9% stake in NSDL Payments Bank. As India’s digital banking ecosystem scales up, payment banks are evolving into technology led platforms driving last mile financial inclusion.
NSDL Payments bank clearly exemplifies this shift. Our investment positions us to collaborate closely with the banking team in co creating replicable and certified digital banking technologies with the ability to deploy them across the entire BFSI industry and secure cross sell opportunities. The Bank’s focus on secure and accessible services for underserved segments also aligns with our broader commitment to build inclusive financial infrastructure. To conclude, Protean is poised for sustained growth. We are backed by strong fundamentals, deep domain expertise and a growing portfolio of transformative initiatives. As we look ahead, we remain steadfast in our commitment to advancing inclusive growth, strengthening India’s digital infrastructure and creating long term value for our stakeholders.
Thank you for your continued trust and support. With this, I will now hand over. To SANDEEP to take you through the. Financials in more detail. Thank you.
Mr. Sandeep Mantri — Chief Financial Officer
Thank you Suresh and good afternoon everyone. During the quarter I guess India’s digital public infrastructure ecosystem continued to gain momentum across all sectors be it education, health, infrastructure, identity, tech, financial services and everywhere. I think we can see the digital public infrastructure ecosystem continues to grow at a steady rate. During the quarter Aadhaar Authentication and EKYC volumes remained strong reflecting sustained adoption of digital identity across government and private sector use cases. In the tax ecosystem, increasing use of data analytics and tighter panoramic integrations are driving higher compliances and formalization. Overall policy momentum around interoperable population scale.
Digital registries continue to expand the opportunity landscape for tested technology providers like us. Now I will take you through the financial performance for the quarter and nine months and also share some perspective on what is driving these numbers. For the third quarter, revenue from operation is stood at 229 crores compared to 202 crore in quarter three of FY25 which is a 13% YUI growth mainly driven by tech services revenue and gaining momentum from the new businesses EBITDA for the quarter is stood at 46 crore making a growth of 34% on a year on year basis driven by higher operational efficiencies.
EBITDA margin for this quarter stood at 19% increased by 335 basis point on a YY basis from 35 crore last year with an EBITDA margin of 19% reflecting a 335 basis point year on year expansion. Adjusted profit after tax for the quarter stood at 26 crores with a past margin of 10.9%. The adjustment was for one time statutory impact of 4 crore due to new labor code. If you look at nine months financials revenue is 2,690 crore compared to 619 crore in the corresponding period last year which reflected 12% year on year increase. EBITDA for the period stood at 135 crore with EBITDA margin of 18% which is a growth of 103 basis point on a YUI basis.
Adjusted profit after tax stood at 74 crores overall. The number reflect consistency and disciplined execution across businesses. From an operating perspective, pan volume increased during the quarter as rightly said by Ghresh on the back of sequential gain in the market share and overall growth in pan issuance. Pension enrollment during the quarter remained healthy supported by strong addition across schemes. Identity related transactions such as kyc, Aadhaar authentication and online pain verification continue to track broader digital adoption trend with the growth in volumes across most of the ID products. New businesses are also becoming more and more visible in the numbers with 11% contribution to revenue in nine months as compared to just 4% in last year.
The contribution from new businesses is increasing on the back of multiple RFPS projects won over last couple of years now moving into active execution. With respect to our Azhar project it is progressing well as planned. We have completed the first phase of the rollout with 34 Azar Seva cleansers now operational and beginning to contribute to revenue. The early traction we are seeing is encouraging and providing us improved visibility on a steady and sustainable revenue stream. As far as ask business is concerned from a balance sheet perspective we remain in a strong position and continue to operate with zero debt with 800 crore in cash and marketable securities which gives us flexibility to invest in technology capacity and execution while maintaining a financial discipline.
During the quarter we continued to invest in readiness for large mandates including technology upgrades and selective capacity build out. These investments are aligned with supporting growth as project scale and move into larger phases of execution. To sum up the third quarter reflect steady execution, improving operating leverage and gradually broadening revenue mix. As newer engagements mature alongside our core businesses, we believe the company is well positioned for the period ahead. With that, we can open the floor to Q and A session. Thank you so much.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question May Press Star N1 on their touch tone telephone. If you wish to remove yourself from the question queue, you May Press Star N2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Bajrang Bafna from Sunidi Securities. Please go ahead.
Bajrang Bafna
Congratulations for good operating performance for this quarter. Sir, my first question pertains to if we see the run rate now, you know we see for last two quarters the beta run rate is almost 30 crore per quarter, you know, and which is almost, we were running at 16, 17 crore sort of EBITDA for previous 4, 5 quarters. So we are almost back what we were there in probably a year or two years back kind of EBITDA hundred. So now with the 1600 crore order pipeline that we are having and even if our traditional business, you know, grows steadily maybe 8, 10%, but the new, new business which is catching up faster, what sort of run rate you know, we can expect going into coming quarter.
So if you can just broadly guide on that count in terms of new business propositions that we are having will be really helpful. And my second question pertains to other income still. We are holding 800 crore sort of cash but in this quarter the other income has fallen to almost 10 crore rupees. Any specific reason for that? If you could clarify. Thank you.
Mr. Sandeep Mantri
Sure. Thanks Pajank for the questions. Great questions. With respect to run rate, you know we are right now running at about 230 to 250 crore for the last 2, 3 quarters. This run rate is going to continue and I guess you know, with the Ask revenue comes into play after a couple of quarters on a full scale basis we will have addition of another, you know, 40, 50 crores into run rate for sure. So 220 to 250 crore is the run rate which is currently but I think once the Ask project is, you know, fully operational we would have more revenue which you know run rate can go up to 270 to 80 crore.
Bajrang Bafna
So this will be visible from next quarter because I think this quarter was the rollout of the ASK centers, other centers, maybe next quarter.
Mr. Sandeep Mantri
We have, we have to roll out 190 centers out of this. 34 are already rolled out in this quarter. By September we should be able to roll out everything I think from a Q3 or Q4 of next of this, this year. I mean next year you should see the run rate going up significantly.
Bajrang Bafna
So close to 550 crore sort of for quarter run rate will be there once we roll out the entire 190.
Mr. Sandeep Mantri
No, no it is 50, 50 close to about 270. 280 crore per quarter.
Bajrang Bafna
No, the revenue run rate I think it’s 1200 crore. Order spending for five years, right?
Mr. Sandeep Mantri
Yeah it’s five years. Yeah. So per year it will be 200 crore now.
Bajrang Bafna
Correct. So 50 crore per quarter. That is what I was saying broadly. Right?
Mr. Sandeep Mantri
Yeah, yeah,
Bajrang Bafna
yes and answer other income part.
Mr. Sandeep Mantri
So other income I think you know whenever you see a spike in other income it is because of non treasury income which is you know some write back or some interest on refunds which we you know collect or some reversal of provisions. These are the other element. Otherwise normally other income is still at a 15, 16 crore.
Bajrang Bafna
Yeah. So we have seen 10 crore this quarter. That was, was little surprising to me. Because even if 814
Mr. Sandeep Mantri
14 crore this quarter is 14 crore.
Bajrang Bafna
Okay, okay 14.
Mr. Sandeep Mantri
Yeah. So normally it is always normal. Treasury income is always at this level.
Bajrang Bafna
Okay sir, thank you. I’ll be in Q sir, thank you so much.
operator
Thank you. The next question is from the line of Rohan M from equal to securities. Please go ahead.
Rohan Mandora
Good afternoon sir. Thanks for the opportunity. We are, we are seeing a good number of exits in the senior management of the company. So just want to understand like what’s happening there and what is driving the exits at the senior management level.
Mr. Suresh Sethi
Rohan this we had also spoken last time Rohan, just to update you on that I think largely a few people have moved because they had reached retirement age. Just that it converged and happened at the same time. And secondly a couple of exits were planned because as we got into a very ramped up order book on our external orders, especially on the project side, we have further restructured our teams to create a very strong delivery vertical for execution. And that is where we had merged a few departments and created you know, sort of more strength and alignment over there.
So as a result a couple of people had to move out as part of a planned transition. But otherwise I don’t think it is. If we look at it individually three people actually retired over the course of the year and there were a couple of others who moved out because of structured realignment and that was the case. So it’s not, you know, a bulk sort of movement in that sense, but triggered for different reasons.
Rohan Mandora
Sure. Secondly, sir, on the new business initiatives like we had seen an uptick in 2Q and again in 3Q there’s a decline on revenue so 43 crores coming down to 21 crores on the others overall. So just want to understand like how do we recognize the revenue? Because if it’s a project based revenues, do we not recognize a similar amount every quarter or yet certain phases that we complete after that we get revenue recognition on that project. How will this work for us to get a better clarity on how one should see the visibility on revenues from the new lines of businesses.
Mr. Sandeep Mantri
So you know, new businesses consist of two type of revenue stream. One is the RFP or project based revenue which is more like a turnkey project wherein we have to deliver and second is your regular project. If it is a regular project then you would see similar kind of revenue every quarter, every month, you know, every period. If it is a RFP rate project, it is based on, you know, what milestone we are delivering and what kind of cost we are incurring for that project or what kind of effort we are putting into that project based on the project plan and accordingly the revenue gets recognized.
This is in line with you know, accounting guidance.
Rohan Mandora
Sure. And on the server side project like I think there was a contribution last quarter so was there any contribution this quarter as well?
Mr. Sandeep Mantri
This quarter also there but last quarter was bit heavy because we were, you know, we were to deliver certain milestones this quarter. It is more like a expense to revenue ratio.
Rohan Mandora
Got it. So thirdly, in terms of the NPS business, the subscriber addition seems to have fallen in 3Q. So any comments that management has on how one should look at the subscriber additions in this business going ahead?
Mr. Sandeep Mantri
I don’t think subscriber addition is fallen. It is only because we we clearly stated in our press release also that it is not a subscriber based widget for us. Actually we have added about 35 lakh subscriber this quarter also which is in line with our, you know, quarterly growth. Every quarter we are adding approximately 35 to 40 lakh subscribers. So it is not that subscriber for. But there was a pricing restructuring during the quarter by PFRD in order to just to get the ecosystem larger and you know, bigger. They have, you know to somehow restructure the pricing for various segment of the pension ecosystem and therefore this quarter Is more should look like a more temporary, you know, in terms of revenue.
But I think in longer run we should, you know garner more and more revenue from pension ecosystem because we in for private pension ecosystem. We are moving to a AUM based so AUM grows in the revenue growth. This is the kind of, you know, pricing structure which is approved by bfrd.
Rohan Mandora
Sorry. So earlier we had only linked to number of subscribers. Now there’s a change in an AUM linked revenue stream has also come in.
Mr. Sandeep Mantri
Private and non government sector.
Mr. Suresh Sethi
Okay, so pricing structure loan has been changed because the whole idea was the regulator also wanted to push for further pension penetration and the pricing structure is now AUM linked. It was earlier also but now it incentivizes higher AUMs and therefore as AUMs grow you will see an improvement in the pricing, you know, structure over there. So that is what Sandeep mentioned. And while at a leading business driver level, the number of subscribers and acquisitions continue to be as they are and we are seeing stability over there. Some of the pricing impact came because of the restructure in pricing but with the market opening up we see this getting mitigated and it would pick up.
Actually it will give us a lot more opportunity to grow the business over here.
Mr. Sandeep Mantri
For one or two questions.
Rohan Mandora
Sure. So the account opening and the transaction link charges has not seen any change. It’s only the AMC charges that it’s seen a change here and it’s moved to AM link.
Mr. Sandeep Mantri
The whole structure is in now. We will share the detail of. If you want more detail then we can share right now.
Rohan Mandora
And so lastly on the cash that we carry on the balance sheet, the thought process a couple of years ago was that we may need to invest on the cloud and other businesses which are capital heavy and right now some of those businesses are not picking up. So any plans to pay out some extra dividend for what is the thought process of retaining the cash? On the balance sheet.
Mr. Sandeep Mantri
We are already. Paying, you know, one of the healthiest dividend in the industry. I think 35 to 40% of our profit. We are already paying as a dividend. What we are thinking of this case is this case as you know we explained in the last call as well this case will be used one in funding the working capital for all these large project which we are winning like Sarchay or Bima Sugam or you know, couple of projects which are in future. So one will be, you know, we need working capital funding for those. Second we also actively look, you know, look at while there is nothing which is in advanced stage but we actually look at opportunities to, you know, expand or grow, you know, our current scale.
So that will be the one use case for the case which is, you know, lying in the company and I think dividend we are paying decently. So I don’t think, you know, we are increasing the dividend payout. There is no thought process on that.
Rohan Mandora
Sure. Thanks. Thanks for the opportunity.
operator
Thank you. Before we take the next question, a reminder to all the participants. If you wish to ask a question, please press star and 1. The next question is from the line of Divij Punjabi from Banyan Tree Advisors. Please go ahead.
Divij Punjabi
Yeah, hi. Thanks for the opportunity. Just a few questions. One is on the consolidated margin trajectory. Can you give some understanding on how this may look going ahead? We’ve been seeing some margin expansion but wanted to get a sense of where this will go in the next few quarters. Next is on the RFP businesses. How much directionally, how much revenue are we expecting to come through from the RFP businesses this quarter? It was expected that Ask Salsa and Bima Sabham would come in but there was a sequential decline. So just wanted to get an understanding on that.
And third is given the cash that we have on the balance sheet closer to 800 crores and given that the stock price has corrected quite a bit, are we looking at any kind of a buyback?
Mr. Sandeep Mantri
So if you see consolidated margin, EBITDA margin, we have consistently for last 2, 3/4 our margins are in the range between 17 to 19%. Previously it fell down to, you know, 14, 15%. Also if we see our business EBIT margin which is, you know, without other income this quarter we have, we have delivered almost like 9% business EBIT margin which is kind of, you know, we are growing early on a quarter on quarter basis. So there is a sequential improvement also and there is a yoy improvement also as far as the margin trajectory is concerned.
I, I think with the, you know, one, if we are growing the revenue, the margins are going to improve in longer run. So what we are looking at, we have said in last few calls as well, what we are looking at is expanding these margins through optimum utilization of resources through cost optimization, efficiency improvement. All those triggers are there in the company and we are working on all these aspects wherein we can improve margin significantly from here with respect to RFP revenues. So RFP again as I you know said in the last, last participant also asked the same question on rfp.
RFP has two kind of project. One is a regular project which is like ask like Other Devaki project wherein we will get you know, steady revenue every quarter. And then there are turnkey project when the revenue get recognized only when you know certain milestones are, you know, achieved. So you know for those turnkey projects there may be you know, certain lumpiness wherein in one quarter you may see higher revenue, in other quarter you may see lower revenue. But for Aadhaar kind of project you would see sustainable STD revenue quarter on quarter basis. Having said that, as I said you know earlier also our we have 190 center mandate for other seva cans.
Once that is implemented on a full scale basis we’ll have about 200 crore revenue increase on a year. On year basis, on an annual basis with. What was your third question?
Divij Punjabi
Buyback?
Mr. Sandeep Mantri
No. So as of now there is no thought process, there is no plan to you know, for buyback. But we would definitely consider and you know, put.
Divij Punjabi
One more question if I can add Suresh mentioned that there’s some kind of restructuring that is happening. So can you directionally give us some quantitative understanding of what this restructuring would look like in terms of various cost items?
Mr. Suresh Sethi
So divide the. Currently as I mentioned the team has been restructured already. We have a strong, strong management team in place and we don’t envisage any large scale changes coming going forward. This was as I mentioned last year was as you’ve seen we went into three very large scale projects. Whether it was revamping the Sarsa Kyc stack or it was building the DPI for the venture for the insurance industry. And third was the large UIDI mandate to build Adharseva Kendra cross districts. So that is where we looked at certain level of restructuring. The complete restructuring has been carried out.
We have strong leaders in place and there should not be any, you know, sort of changes or restructures after this.
Divij Punjabi
Sure. Thank you.
operator
Thank you. A reminder to all the participants, if you wish to ask a question please press star and 1. The next question is from the line of Avikshit Vijay from Magnus Hartwig. Please go ahead. Please go ahead.
Avikshit Vijay Viswanath
Yeah, hi, am I audible?
operator
Can you please speak a little louder?
Avikshit Vijay Viswanath
Am I audible now?
operator
Yeah, please. Thank you.
Avikshit Vijay Viswanath
Yeah. So my first question was related to. The previous participant about the existing run rate. I quite didn’t catch what the management. Was trying to say. What figures are we talking about here? Could you clarify on that?
Mr. Sandeep Mantri
Okay. Okay. So what we are talking is our run rate currently is, you know between 220 to 250 crore for per quarter. It is likely to remain at least for next two Quarter. Then after two quarter, once we have all are, you know executed on a full scale basis we will add another 50, 40 to 50 crore in quarterly run rate. That’s what I mean today.
Avikshit Vijay Viswanath
Okay, understood. Is this about the revenue or the ebitda?
Mr. Sandeep Mantri
It is revenue. We are talking about revenue.
Avikshit Vijay Viswanath
Okay, sure. And one more thing. We have recently acquired NSDL Payments Bank. A stake in that. And from NSDL we got to know. That this is a pretty low margin business. So what could you explain the rationale behind this stake acquisition?
Mr. Suresh Sethi
So our investment in NSDL Payment bank. Is naturally about creating bank grade financial technologies. And as I mentioned earlier it gives us the chance to work with a product and a compliance team from the bank and co create products and technologies which once deployed in NSTL Payment bank as anchor customer become certified banking technologies and gives us the leeway and the ability to leverage and cross sell across the entire BFSI ecosystem. So that was in essence the strategic partnership we set up with them. Along with that naturally payment banks as. You know are largely distribution driven organizations. NSDL Payment bank today has a national footprint. We again create and support digital public infrastructure at a national level. And as a DPI organization we also run a very strong Pan India network. So we also see synergies between the two institutions in bringing their physical outreach and our digital technologies to create a very strong digitally enabled last mile network. So these are some of the, some of the you know, sort of strategic wins we see coming together. Other than that I would not comment on the banking products margin because that would be a very different, you know, lens over there.
We are primarily talking about being there as a service provider and having a network alignment with the payments bank.
Avikshit Vijay Viswanath
Understood sir. Thank you so much. Those are my questions.
operator
Thank you. Ladies and gentlemen. Anyone who wishes to ask a question may press star N1. The next question is from the line of Bajrang Bafna from Suniti Security. Please go ahead.
Bajrang Bafna
Sir, if you could just throw some light on the project pipeline. We have got a large mandate from from Aadhaar recently and which we are rolling out right now. Maybe national or international. If you could throw some light on what sort of project pipeline that probably we are targeting right now and when those can proctify maybe over next 12 months time frame. Thank you.
Mr. Suresh Sethi
So three, as I mentioned when I said unexecuted order books, these are projects which are live and running. As Sandeep had explained earlier, quite a few of the turnkey projects are multi year projects because you have a part where you are developing and deploying it from a technology stack perspective. And then you have a managed services. Part which goes from anywhere between four to six years. So these are long scale projects. Currently when we look at it, even in the first instances of design, development and deployment, both the large projects on Sarsai KYC and on we are at the early stage. Then we have a managed services contract under both these projects. Kendra as we mentioned it was a project in which we were to set up a Dhar Seva Kendra at a national level. And the first phase required setting up 34 centers across 19 states and union territories. And this will be followed by more and this will be executed in three phases.
We hope to complete the entire rollout by end of September and which is where we are talking about the uptick in the revenues coming from this project. So all three are contributing projects currently. They will be contributing from a deployment and delivery point of view and then we’ll have a managed services component coming in. So these are the three large scale. Turnkey projects we are working on domestically. The other large project which we just announced was a win which we had last month only was in Ethiopia where we are building the agriculture DPI for the country at a national level. Again it is all about creating you know, farmer ID registries for land records. So very similar to you know, work that is happening in our country also over here. And that is again a project which is on a turnkey basis and will have a multiple year, you know, revenue model associated with it.
Bajrang Bafna
Okay, by project pipeline I was trying to get that any other projects that we are either you know, bidding or in the bidding stage or maybe in the, in the pipeline which probably will bid as and when they come. So some sort of, that sort of pipeline. Because our current total order book is around 1600 crore and since now we have started a new stream, you know which, which is more, more reliable and predictable. So on that line any other you know, projects that probably we are looking for and, and probably might come in the foreseeable future.
So some, some guidance on, on that front will be really helpful sir.
Mr. Suresh Sethi
So Bajan, only thing is that definitely, you know, you’re absolutely right there is a complete vertical which is now looking at whatever bids are there where we are qualifying and our core competence and expertise matches that. So we are on a constant lookout. Areas for us are very wide because when we look at from a DPI lens we are talking about anything doing which is associated with identity, health, agriculture, education, skilling. So these are the sort of projects we are looking at and any other national infrastructure projects around consent and data. So there is a pipeline on which we are associated but will be difficult to call out.
These are various, you know, discussions which are, you know, in the process and I would not like to announce it at this stage.
Bajrang Bafna
Okay, got it. And sir, you know, there is lot of budge right now, you know, across the globe about data centers, cloud services, you know, where there is a huge, huge requirement which is happening, you know, not only in us and maybe other parts of the world. So what sort of preparation that probably you see in our country because probably we are also lagging, you know, in terms of data center build out in our country also. So any thought on that where probably, you know, this is a good line, but it’s still, it’s pretty nascent and, and, and what sort of developments you see maybe in next one to two years or two of time frame where we can also garner a larger pie of this opportunity.
Mr. Suresh Sethi
I think cloud today is becoming as a very sort of embedded strategy for any large scale DPI institution. If you look at the Indian regulatory space, regulators are today very open to having hybrid or cloud hosted infrastructure in place. And we ourselves have seen that experience because we today work for example in the pension ecosystem and the regulator is pretty open now to seeing that, you know, from a point of view of scalability and agility if there could be cloud hosted solutions. Similarly, we see a strong thrust from METI and you’ve seen it all, whether it is hosting, you know, different players on the cloud or likewise coming with the artificial intelligence based interventions coming over there.
So I think India is very much part of the journey. India today also as part of the budget, announced measures clearly which are focused at enabling hyperscalers to further build in the country. There is also a lot of sovereign thrust coming in wherever we are looking at sensitive data within the country. And that is where our entire positioning of our protean cloud was right from the outset. And last but not least for us, Protean cloud also becomes a very embedded layer of infrastructure which we are, you know, sort of in a way complementarily positioning and proposing as part of the large bids where we go for turnkey projects.
So cloud is definitely there to stay and I think it’s important that we build more layers of security and application into the cloud and that is where the value adds concern.
Bajrang Bafna
Got it, got it. And sir, just broadly final question and thought this is, you know, we have been, you know, the growth have been, you know, consolidating between let’s say 10 odd percent for us if we see last, you know, few quarters now since we have a broader pipeline of almost 1600 crores out of order book and already CFO sir has indicated Q3 onwards we’ll see that kind of built up. So any broader guidance on the overall revenue growth, you know maybe from next two to three years perspective that you know because we, we are moving towards let’s say from 10% odd sort of compounding to maybe 20, 25% sort of compounding and also the margins have already inching up from our 8, 9% to we are already 14% in this quarter.
So the trajectory, you know where the broader margin trajectory also maybe a band, not a specific number will be really helpful, you know if we talk about let’s say 27, 28 year. So, so just aspirational number, if you could just throw some, some guidance on that will be helpful.
Mr. Sandeep Mantri
Sure. So you know, I guess while we are not giving guidance as such but as we stated last in last few calls as well, I am again repeating for the sake of everything what we are saying is our existing businesses which is tax pen and foundational identity businesses continues to grow at 8 to 10% rate and our new businesses in next two to three years will contribute about 25% already we are at 11 to 12% in this year. So I think from 11 to 2012 to 25 in next two to three years we should, we are aspiring, aspiring for that kind of you know, growth in new businesses.
So you can calculate on the back of Anuba.
Bajrang Bafna
Okay. And, and on the margins front any broader because we are already hitting you know mid teen mark right now. So can we be towards let’s say 1820 sort of margin two to three years down the line.
Mr. Sandeep Mantri
You are talking about.
Bajrang Bafna
EBIT margins.
Mr. Sandeep Mantri
So Eida, we are already at 19% if you see so I think there. Is an expansion other income.
Bajrang Bafna
Yeah.
Mr. Sandeep Mantri
Without other income. Okay. So there will be an expansion of you know, 300 to 400 basis point which is what we said last time. Also next couple of years once we start growing our revenues at this.
Bajrang Bafna
Got it. 300 to 400 pips over a longer term time frame. Thank you. Thank you very much sir and all the very best.
Mr. Sandeep Mantri
Thank you.
operator
Thank you. A reminder to all the participants, if you wish to ask a question, please press star and 1. The next question is from the line of Kunal Bhatia from Dalalan Procha Stockbroking limited. Please go ahead.
Kunal Bhatia
Yeah sir, thank you for the opportunity. Sir, I had one question in terms of if in case of The CRA services. If we remove the impact of the pricing, what is the kind of growth you would have achieved on a normalized business basis?
Mr. Sandeep Mantri
About 12 to 14% growth, I would say if we remove the impact of the pricing.
Kunal Bhatia
Okay. And so for this normalization will start happening from the next quarter or it will take couple of quarters to get to that 12 to 13% kind of. Growth.
Mr. Sandeep Mantri
Which you are talking about. The CRA only.
Kunal Bhatia
Yes, sir. Yes.
Mr. Sandeep Mantri
So I think it will take one more quarter, I guess and the prices will get stabilized.
Kunal Bhatia
Okay, so there could be a one more quarter of a flattish kind of growth for the CRA services.
Mr. Sandeep Mantri
I don’t know whether it will be flattish or it will be, you know, growth. But as I’m saying, you know, it should start improving from here.
Mr. Suresh Sethi
So Kunal, let me add a perspective to it. So as you’re all aware that we see it in public domain, the regulator is putting out some very, you know, aggressive reforms out there. The whole idea of pension penetration, so whether it is introducing multiple scheme framework which effectively is personalizing or customizing products for various category of investors, likewise lot of withdrawal requirements have been again changed and retweaked to make it easier for consumers. So there is a strong thrust on pension penetration. While what Sandeep said is right, but what we see as the underlying drivers that this market may expand significantly.
So the whole idea is if even the pricing is AUM linked going forward, so the AUM linkage and the movement into higher AUM incentivization will play out once the incremental adoption starts. And that is where we are betting that, you know what, the next few months quarters, the reforms should see the impact and we should see a higher growth trajectory coming out over there.
Kunal Bhatia
Okay. Okay.
Mr. Sandeep Mantri
In long run I think we are very excited about this business.
Kunal Bhatia
Okay. Okay. And sir, also in regards to your previous comment, in terms of the cloud services, because of the tax holiday which was announced by the FM in the current budget, is there any kind of an opportunity available for Protean in general for this?
Mr. Sandeep Mantri
So I would say we are internally discussing and strategizing where we should, you know, deploy our cloud. Whether it will be, you know, for our last project or whether we can, you know, independently also sail cloud. So right now we are in a strategy phase for this business. But having said that, I think in next one or two quarter we should be clear about these businesses.
Kunal Bhatia
But that will be in sort of a JV or something with the hyperscaler or we would be able to do. It on our own,
Mr. Sandeep Mantri
it would be all kind. I would not say only JV with hyperscaler. But you know, it would be.
Mr. Suresh Sethi
keeping our options open. Yeah, to that extent. Right. Because again, there is a strong trust on sovereignty. So. So we also want to keep our own strategy very clear as a sovereign cloud because that does give us a significant leverage, especially in the areas we work in from a DPI perspective. But at the same time, partnerships and areas where it works out will be something we will pursue. So keeping open options at this stage.
Kunal Bhatia
Okay, okay. And so finally one bookkeeping question, sir. Where do we see the run rate for depreciation and sorry, what was the reason for such a high jump on a bio Y basis?
Mr. Sandeep Mantri
So the run rate for depreciation will increase. I think right now we are at about four and a half percent on revenue. So I think it will remain between four and a half to five and a half percent. And the reason for IJUMP is basically we. There were certain estates which we acquired in last year. The impact of that is coming in this year. Plus we have, you know, our offices. We have shifted to our offices under new, you know, lease accounting method. We have to really depreciate those.
Kunal Bhatia
Okay, so it is the. India’s impact.
Mr. Sandeep Mantri
Yeah, India to some extent.
Kunal Bhatia
Okay. Okay. Okay. Finally.
Mr. Sandeep Mantri
Yeah.
Kunal Bhatia
Thank you, sir. Thank you so much.
operator
Thank you. A reminder to all the participants, if you wish to ask a question, please press star N1. The next question is from the line of Guru Prasad from Sher Jayant. Please go ahead.
Guru Prasad
Thank you for giving me the opportunity. First of all, I would like to congratulate on the excellent set of results in a challenging environment. And I’m a bit concerned because. Mr. Under Mr. Sethi, the. The company has really done wonderfully well in spite of few hiccups. So I would like to know like what are the continuity plans of the business? So if it can help a lot giving some kind of comfort to investors.
Mr. Suresh Sethi
Are you sure, Guru? This was a personal decision. I have. We were working very closely with the board over a period of time to ensure that there is a smooth transition for personal and professional reasons. I am moving ahead and the intention was to create a very robust succession planning in place and that we have done and we have moved forward with that. We have got, as earlier mentioned, a complete strong leadership in place across all the verticals as we had restructured the organization sometime last year. And there is absolute continuity and we don’t see any disruption.
And the board and management has worked very closely in steering it and making sure. It’s absolutely seamless.
Guru Prasad
Thank you sir. It gives a real comfort from hearing from your mouth. My next question is on margin improvement initiatives. So what are the key initiatives with the company is planning so that the margin can improve over a long period of time?
Mr. Suresh Sethi
I think over here there are, you. Know, by default two aspects to look at. One is securing good high quality margin businesses. So a lot of our thrust till now, as we’ve always said, the core businesses are at a DPI level, whether it is in pension, taxation, identity. So one area in which the company is clearly building further is to get into more products and SaaS businesses which naturally are getting more monetization value at the application and innovation layer level. So directionally that is one way of moving into higher margin accretive products for the company. The second area we clearly see is that while we still keep fueling the DPI growth in the country, we try to build a peripheral ecosystems around each of the large scale projects that we are securing.
And the other side clearly is cost control. So the company is definitely also working very closely to ensure there is maximum efficiencies, there is strong adoption of AI from a productivity perspective from the way we do our businesses. And therefore it is a dual approach to make sure that we go for higher margin businesses and we keep our costs in control at the same time. So that is the plan to really see how we can create a superior performance out of whatever we are doing going forward.
Guru Prasad
Thank you sir, with your permission, my last question is on the international order pipeline. How is it looking and any cues on when we can expect any big success from there.
Mr. Suresh Sethi
So the international order pipeline grew Again there are multiple countries we are actively engaged with. As I mentioned, we now have a footprint across three countries. In one country we’ve actually got now two mandates and Ethiopia was a recent win. So there are multiple discussions we can share with you offline also in some of the areas where we are at the last stages of evaluation but at this stage not in a position to announce because until and until we get the mandate we can’t talk about that. But there is a broad based engagement across the regions which we took as our preferred regions in Africa, in Middle east and Southeast Asia.
Guru Prasad
Thank you. Thank you Lord. Thank you sir. And all the best wish to you sir.
operator
Thank you. The next question is from the line of Viraj Mithani from Jupiter Financial. Please go ahead.
Viraj Mithani
Thank you for the opportunity. Am I audible?
Mr. Suresh Sethi
Yes sir.
Viraj Mithani
I would like to know your Ethiopian order, the size of the order and how, what kind of Revenue will be booked and how it will be booked.
Mr. Suresh Sethi
So the Ethiopian order Viraj is totaling up to 25cr. It is again in the form of RFP, as we mentioned from the government. Because we are doing a national level implementation of the agricultural DPI for Ethiopia where we’ll be building the entire suite of registries and ID related aspects for the agriculture sector. And this will be spread over a few years, two to three years. And the revenues will flow as they do with the, with the, with the natural RFP progression. Right. There will be a period of development and deployment followed by a maintenance phase after that.
Viraj Mithani
The maintenance does not make good maintenance. Correct. That will be separate after.
Mr. Suresh Sethi
Yeah, but the total project value is within 25 cr’s right. So everything falls within that. Because these are bids we make. Right. When RFPs we bid for a project. So the entire accumulated cost of design, development and maintenance all is taken into the bid. So the total size of the project is 25cr.
Viraj Mithani
Thank you. And all the best.
Mr. Suresh Sethi
Thank you.
operator
Thank you. We will take our next. We will take our last question from the line of Rohan from Equis securities. Please go ahead.
Rohan Mandora
Thanks for the opportunity, sir. Again, we had done a few tie ups with banks on ondc. While I understand that ONDC is not picking up right now, just want to understand like what’s happening to those tie ups. And as we have seen in case of account aggregators, the initial pickup was very slow. But in the recent couple of quarters there’s been a decent enough pickup on account aggregator as a framework and utilization. So what’s happening on those types of banks and other entities on ondc and what is our thought process for next two years on ondc?
Mr. Suresh Sethi
I think, Ron, ONDC definitely, again we maintain and we have a belief that it’s a revolutionary intervention in the market from a digital commerce point of view. And it has definitely sort of also diversified into enabling open finance, mobility and transport. And there’s also a services part to it. So we keep closely engaged. I think clearly the question is about adoption. We continue to remain engaged with the ecosystem from the early learnings we have of the, of the technology and the staff that we built for ondc. And yes, currently the numbers are not something which are, you know, sort of in a way substantial enough to do individual reporting on them.
As the ecosystem grows and as we see some level of, you know, adoption and therefore outcomes coming from it, we’ll be happy to share. But currently the visibility on ONDC is the same as is I think also shared very clearly by The ONDC team, in terms of the, you know, the monthly numbers that they share on their website, the trajectory is not flat. They are growing. But that’s where it is currently for us also.
Rohan Mandora
Right. In terms of the types of banks, are we going ahead with the implementation for them?
Mr. Suresh Sethi
Whatever each one of them, some are in POC stage because the banks are also seeing if there’s adoption then they’ll put it on a full scale basis. So these are, I think it’s, it’s a chicken and egg because if you see traction happening, the bank would push for it. Otherwise the banks also do it in a very limited POC manner to just test the technology rather than to see actual volume growth over there.
Rohan Mandora
Sure. Thanks. Thank you.
Mr. Suresh Sethi
Thank you.
operator
Thank you. I would now like to hand the conference over to Mr. Suresh Sethi for closing comments. Over to you, sir.
Mr. Suresh Sethi
So thank you very much for a patient hearing and thanks for all the questions which also help us to understand, you know, the expectations and some of the, you know, numbers that the community would like to have from us. So happy to also engage with you one on one and provide more information. But thank you very much and for the positive comments in terms of the results in this quarter and we look forward to continuing with the same momentum in the year going forward. Thank you so much.
operator
Thank you very much on behalf of Protein EGAF Technologies limited. That concludes this conference. Thank you all for joining us today. And you may now disconnect your lines.