DiGiSPICE Technologies reports a significant quarterly profit increase driven by improved operating efficiency and expanding rural payments, as it transitions to higher-margin financial products amid a broader industry shift.
DiGiSPICE Technologies said its first quarter of FY27 marked a sharp improvement in profitability, with profit after tax rising to ₹9 crore as operating efficiency improved and the cost base tightened. According to the company’s earnings-call highlights, EBITDA rose 6.5 times from the previous quarter and EBIT climbed 87%, while the credit arm reached breakeven. The company also said loan disbursals increased 55% quarter on quarter and 2.8 times from a year earlier, helped by data-led underwriting and a new MSME lending product.
The better earnings picture came alongside a broader shift towards higher-margin financial products. DiGiSPICE said its “other segment”, which includes CASA, credit and insurance, grew 16.3% quarter on quarter and helped lift margins. The company also highlighted traction in UPI Cashpoint, with gross transaction value reaching ₹276 crore in the quarter and an informal market share of about 40%, a sign that its rural and semi-urban payments play is gaining scale.
Management said the business still relies heavily on its agent network, which numbered 1.68 million Adhikaris, and that 47% of AEPS gross transaction value came from subscription-pack agents. Even so, the quarter was not without pressure points. AEPS market share slipped to 17.93% during the period before recovering to 18.3% in July, and revenue was broadly flat as the company’s lower-margin collections business became more competitive and price-sensitive.
The company also pointed to a changing insurance strategy after policy sales eased in the quarter. Rohit, head of platform business, said the existing model, which focused on selling shopkeeper insurance to the captive Adhikari base, had begun to saturate, and DiGiSPICE is now widening its product set with insuretech partners. That shift, along with plans for more formal financial products such as savings, lending and insurance, is meant to deepen monetisation across the network.
Elsewhere, chairman Dilip Modi said the company is not planning a fundraise at present and expects to keep building through internal accruals. He also said the merger of Spice Money into DiGiSPICE remains on track, with the second motion filed before the National Company Law Tribunal and completion expected by March 2027. Separately, sources quoted by Whale’s Book and Tijori Finance say the group has been working towards a direct listing structure and that FY26 PAT had already risen sharply from the prior year, underscoring the scale of the turnaround now feeding into the merger plan.
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