Niyogin Fintech has achieved a significant milestone, recording its first full-year consolidated profit in FY26. Net revenue surged 57% to Rs 106 crore, driven by robust performance across its payments subsidiary iServeU and its lending business. The company is currently seeking NCLT approval to demerge these segments into two independently listed entities. Management has provided ambitious FY27 guidance, targeting significant AUM growth for its NBFC and higher margins for its payments arm, alongside plans to divest non-core assets to unlock value.
Niyogin Fintech Achieves Maiden Full-Year Profit
Net Revenue: Rs 106 Crore | Profit Before Tax: Rs 3.4 Crore
Reader Takeaway: Strong operational turnaround and demerger progress signal maturity, though execution risks regarding NCLT timelines remain critical.
What just happened
Niyogin Fintech has reported a major financial turnaround for FY26, moving from a loss-making status in the previous year to its first full-year consolidated profit. The company recorded a profit before tax of Rs 3.4 crore compared to a loss of Rs 22.3 crore in FY25. Net revenue also climbed significantly to Rs 106 crore, marking a 57% year-on-year growth.
Why this matters
The performance highlights the success of the company’s strategic shift. Its payment infrastructure arm, iServeU, doubled its revenue through a high-margin SaaS model, while the NBFC arm, Niyogin Finserv, grew its AUM by 26% to Rs 352.3 crore. This dual-engine growth validates the company’s current business model as it prepares for a corporate split.
Corporate Restructuring Update
The company has moved closer to creating two independent listed entities: a tech-enabled NBFC and a payments infrastructure business. Following approvals from SEBI, BSE, and the RBI, Niyogin Fintech has now filed with the NCLT in Chennai for final sanction of its composite scheme of arrangement.
What changes now
Management has issued clear growth targets for FY27. iServeU aims for revenue between Rs 125-135 crore, while the NBFC arm targets an AUM of Rs 520-550 crore with a net profit goal of Rs 11-12 crore. Additionally, the company is divesting its 58% stake in Investdirect Capital Services for Rs 11.75 crore, continuing its effort to streamline operations.
Risks to watch
Investors should closely track the NCLT approval timeline, as delays could impact the planned corporate restructuring. Furthermore, the newly formed Strategic Review Committee is tasked with exploring future growth alternatives, which may lead to further operational adjustments.
What to track next
Watch for the NCLT hearing outcome and the findings of the Board’s strategic review committee, which will define the next phase of the company's value creation strategy.