Radiant Cash Management Services Ltd Management Discussions

Indian Economy

Indias economy continued to demonstrate strong resilience in FY2026, aided by healthy domestic demand, stable macroeconomic fundamentals and sustained public investment. Real GDP growth for the year stood at 7.7% reinforcing Indias position among the fastest-growing major economies globally.

The momentum was fuelled by steady consumer spending and strong investment. Economic expansion across the board was propelled by robust local demand, rising urban consumption, and continuous government capital spending. Additionally, the countrys economic foundation was reinforced by healthy banking and corporate financials, a resilient services sector, and ongoing policy reforms.

Inflation remained moderate through most of the year despite volatility in food and energy prices. Core inflation stood at 3.7% supported by calibrated money measures by the Reserve Bank of India (RBI), easing supply-side pressures and stable demand conditions.

Looking ahead to FY 2026-2027, Indias real GDP is forecasted to expand by 6.6% propelled by strengthening domestic demand and positive consumption trajectories. This growth is anchored by robust urban consumption, which continues to benefit from strategic GST rationalization and a high-performing services sector.

Sustained government capital expenditure on infrastructure is successfully crowding in private sector investments, further energized by rising industrial capacity utilization and manufacturing expansions. On the nominal front, inflation is projected to hover around 4.6%. However, with stable core inflation and well-contained price pressures, the broader macroeconomic environment remains highly secure.

The cash logistics market plays a foundational role in global financial infrastructure, serving as the backbone for the secure transportation, storage, processing, and management of physical currency. Its extensive reach encompasses banking institutions, retail businesses, government agencies, and automated teller machine (ATM) networks. Specialized security providers leverage advanced infrastructure, including armoured vehicles, comprehensive monitoring systems, and trained personnel, to facilitate critical operations such as cash-in-transit (CIT), vault management, ATM replenishment, cash sorting, and currency authentication. Despite the ongoing expansion of digital payments, physical cash continues to see widespread, daily use across various global economies, making these secure systems vital for maintaining the stability and availability of physical currency within commercial and financial ecosystems.

The global cash logistics industry is valued at $33.11 billion in CY 2025. The industry is projected to expand, growing to $36.25 billion in CY 2026 and to $74.93 billion by CY 2034. This growth reflects a projected compound annual growth rate (CAGR) of 9.50% over the CY 2026-2034. In CY 2025 geographically, North America represents the largest segment, holding a 34% market share, closely followed by Europe at 28% and the Asia-Pacific region at 25%, with the Rest of the World accounting for the remaining 13%.

The cash management system market is experiencing notable growth, functioning as a vital component of modern financial operations. Its expanding reach spans across diverse enterprise environments, financial institutions, and corporate treasuries globally. Estimated at $19.8 billion in CY 2025 and anticipated to reach $22.4 billion in CY 2026. Driven by the widespread digitalization of financial operations, the rising demand for real-time cash visibility, and the growing adoption of automated treasury management solutions, these systems are deployed to help organizations optimize liquidity, improve financial planning, and streamline both payment and receivable processes. As digital transformation continues to take hold, the strategic necessity of these platforms becomes increasingly clear for maintaining day-to-day corporate solvency and operational efficiency.

*Projections Source: Cash Logistics Market, Fortune Business Insights.

Source: Cash Logistics Market, Fortune Business Insights

Integration of AI-Driven Analytics and Predictive Cash Forecasting
Corporate treasury teams are increasingly seeking solutions that utilize artificial intelligence and advanced analytics to optimize liquidity planning and improve decision-making accuracy. Companies can expand their high-margin advisory and technological service segments by deploying AI-powered tools. These capabilities allow providers to deliver automated insights, real-time intelligent alerts, and scenario-based financial planning to clients navigating volatile financial markets.

Expansion of Digital and Cloud-Based Support Services
While the solutions software market is massive, the service segment is projected to experience the highest compound annual growth rate (CAGR). Financial institutions and large enterprises are scaling up their digital banking and real-time data infrastructures, driving a strong need for ongoing support, consulting, and system integration. Service providers can capitalize on this shift by offering specialized training and integration services to seamlessly bridge new cloud platforms with existing enterprise systems.

Deployment of Retail Cash Automation Services (Smart Safes & Intelligent CIT)
Retailers and commercial enterprises face substantial overhead and security risks in managing physical cash at the point of sale. Service providers have a major opportunity to deploy integrated cash automation solutions, such as "smart safes" or cash recycling machines on client premises. By linking these hardware devices directly with a digital cash management platform, the logistics provider can offer "provisional credit" (working capital credited to the clients bank account as soon as cash enters the safe) while optimizing armored car pick-up schedules based on real-time safe volume alerts.

The Digital Shift, Contactless Payments, and Central Bank Digital Currencies (CBDCs)
While physical cash remains central to many economies and financial inclusion programs, the long-term rise of real-time digital transaction networks, contactless payment options, and evolving CBDC initiatives acts as a persistent market restraint.

Difficulties Connecting with Customers Old Software
Many businesses still use old, outdated computer systems and work with multiple banks that do not easily talk to one another. When a company tries to link its new digital tools to these old systems, the process gets stuck. Solving these technical issues takes a lot of time, requires expensive extra work, and causes long delays. This burns through the Companys tech staff and quickly cuts into profits. 2025-26, the Company selected a stable financial performance and remains systematically focused on leveraging its key operational drivers to accelerate future growth.

Radiant Cash Management Services operates as an integrated cash logistics provider with a nationwide presence across India and a strong operational footprint in Tier 2 and Tier 3 markets. The Company delivers an end-to-end portfolio of cash logistics solutions, including secure cash collection and delivery, network currency management, cash-in-transit (CIT) services and automated cash processing.

To diversify its service portfolio and strengthen its presence in the digital payments ecosystem, the Company expanded through the strategic acquisition of its subsidiary, Aceware Fintech Services Pvt. Ltd. (operating as RadiantAcemoney). RadiantAcemoney functions as both a Business Correspondent and a Technology Service Provider, promoting financial inclusion through digital transactions, domestic money transfers, micro-ATM services and utility bill payments. The subsidiary is also certified under the Payment Card Industry Data Security Standard (PCI DSS), reinforcing the security of its digital payment infrastructure and strengthening data protection across its technology platform.

In FY 2025-26, the Company added 118 new clients and 230 new end customers. The Companys operations span across 14,800+ pin codes in India. Total cash movement for FY 2025-26 reached 1,694 billion, marking a 1% year-on-year increase.

The Company primarily operates in one business segment - Cash Management Services. Within this, it offers a range of specialised services as outlined below.

Cash Pick-up and Delivery
The Company manages the daily or on-demand collection of physical currency directly from end-user retail outlets, ensuring these funds are securely deposited into the clients designated bank accounts. Additionally, the Company selectively handles cash deliveries to specific end-user locations based on direct instructions from its banking clients. During FY 2025-26, this segment accounted for 58.4% of the Companys revenue.

Network Currency Management
The Company also provides value-added solutions designed to facilitate cash management in regions where clients lack physical bank branches. It accepts cash deposits directly into their own accounts on behalf of the client and subsequently remits these funds via electronic transfer to the clients designated bank account. As of FY 2025-26, this segment accounted for 21.8% of revenue.

Cash Processing
The Company offers retail clients the choice to have their cash physically counted and verified at the exact moment of collection, rather than opting for standard, sealed-bag pick-ups, in exchange for an additional service fee. This segment accounts for 5.5% of the Companys total revenue during the financial year.

Cash Van Operations
The Company provides specialized cash-in-transit solutions by leasing armoured vans on a short- or long-term basis, primarily to banking institutions for their bulk currency movements between branches and secure vaults. These vehicles are deployed fully equipped with a dedicated operational crew, including a driver, armed security personnel, and a cash custodian. During FY 2025-26, the segment accounted for 12% of the Companys total revenue.

Others
The Company offers additional specialized services, including its "Man Behind Counter" solution, which supplies trained personnel directly to high-footfall client locations to manage large volumes of physical currency. Additionally, the Company operates secure vault facilities and leasing storage space to banks. These ancillary business lines contributed 2.3% of the Companys total revenue during FY 2026. Through its Radiant Valuable Logistics (RVL) business, the Company provides specialised logistics services for the secure transportation of diamonds, jewellery, bullion and other high-value consignments across road and air networks. During FY 2026, RVL recorded 35% revenue growth over FY 2025 and onboarded more than three marquee national jewellery chains, while strengthening its capabilities through GPS-enabled tracking, OTP-based verification and real-time shipment monitoring.

During FY 2025-26, Radiant Cash Management Services Limited executed several strategic initiatives designed to foster sustainable, diversified expansion across its primary business verticals. Despite a challenging macroeconomic environment, the Company delivered a stable financial performance and remains systematically focused on leveraging its key operational drivers to accelerate future growth.

Growth of Direct Business
The primary growth lever for this segment is the expansion in the number of touch points, particularly beat pick-up points, which are serviced on every working day. During FY 2025-26, the Company grew its total pin code coverage to 14,844, reflecting a strengthened on-ground network. Implementation of CPIN/OTP-based authentication during cash 111111111111collection and QR code scanning to record collected cash have reduced manual intervention, operational errors, and processing time, thereby improving per-point throughput.

Growth of Cash Van Operations
The primary demand driver is the growth of currency in circulation and the Reserve Bank of Indias currency replacement activity, which involves culling soiled notes and introducing fresh currency. As the volume of cash in the system expands, banks require greater armoured logistics capacity for inter-branch and vault-to-branch transfers. Branch network expansion by public and private sector banks, particularly in Tier 2 and Tier 3 markets, creates direct demand for armoured van services to service new nodes. The Companys fleet of 870 fabricated armoured vans as at end-FY 2025-26 provides the operational scale to absorb incremental demand.

Strategic Focus on Radiant Valuable Logistics (RVL)
India features a significant target market of registered jewellers, yet current industry participants only service a fraction of them. This substantial market gap provides Radiant Valuables Logistics (RVL) with significant room for expansion, positioning the segment to contribute a noticeably larger share of companys revenue in the coming years.

The Risk Management Committee of the Board oversees the risk management policy implementation and assesses the risk management systems effectiveness. The Company prioritises operational risk management in order to ensure the security and reliability of its cash logistics business. Through the combination of human monitoring with technology-based solutions, the Company minimises risks. Security is further enhanced by periodic audits, real-time monitoring and an exclusive risk management team, consisting of former armed forces officers.

The Company has established structured escalation protocols to enable timely response to operational incidents and regularly updates its risk mitigation practices in line with evolving business requirements. Stringent employee background screening and verification procedures further reinforce the Companys risk management framework. As of FY 2025-26, the risk management and supervisory functions were supported by over 96 risk managers and 71 supervisors, the majority of whom are retired Junior Commissioned Officers (JCOs) from the armed forces, bringing extensive operational discipline and security expertise to the organisation.

Risk Management Team Strength: 167 (includes 40 ex-armed forces personnel)

The Company has effective internal financial control systems in place that are appropriate to its size and nature of operations. These controls are intended to assist in ensuring that financial and operational information is recorded correctly and in a reliable way and that the Company complies with all applicable laws and regulations. They also assist in safeguarding the Companys assets against misuse, ensuring that transactions are appropriately authorised and corporate policies are adhered to.

To oversee these controls, the Company has engaged the services of Menon & Pai, Chartered Accountants, to carry out internal audits. These internal audits are carried out as per an Internal Audit plan which is reviewed and approved by the Audit Committee on a yearly basis. The Audit Committee also reviews the Internal Audit reports quarterly.

M/s ASA & Associated LLP, Chartered Accountants, are the Statutory Auditors of the Company. They have audited the financial statements presented in this annual report and have issued a report on the internal control over financial reporting of the Company as per section 143 of the Companies Act, 2013.

Overall, the current system of internal controls and checks is comprehensive and provides management with a reasonable level of assurance.

During FY 2025-26, on a consolidated basis the total revenue was 4,384 million and PAT was 280 million during the year. Consolidated EBITDA margins were 12.4%. Consolidated PAT Margin stood at 6.4% in FY 2025-26. ROCE and ROE for FY 2025-26 were 8.6% and 10.5%, respectively.

Key Ratios

Details of any change in Return on Net Worth as compared to the immediately previous financial year, along with a detailed explanation thereof:

The Financial Statements for FY 2025-26 have been prepared by applicable Indian Accounting Standards (IND AS) as prescribed under Section 133 of the Companies Act, 2013, read with Companies (Indian Accounting Standards) rules as amended from time to time.

The Companys tech advancements streamline operations so clients can focus on their core business instead of costly infrastructure. Digital processes and upgraded platforms deliver a superior experience for partners.

The Company safeguards its infrastructure and customer data using a robust, multi-layered security strategy. Key components include centralised access management, data encryption, Key Management, Cloud based CI/CD, network controls, event-driven management, live threat monitoring, governance, and routine security assessments.

Clients have access to real-time data through a dedicated client view application, offering transparency and tracking of their pick-up points.

Radiant Sandesh App facilitate end-to-end reconciliation and also provides for QR code-based onboarding and transactions for the clients. The Radiant Insta Credit App (RIC) has undergone several updates for a seamless, user-friendly platform, offering instant credit services and enabling simple and accessible cash collection and deposit processes. The RIC App now supports Multiple user access under single customer registration, Chain customer onboarding, State-wise GST configurations and Payment integrations.

The Company has implemented API integration with select clients ERP software, enabling real-time cash tracking by both clients and end-users.

Radiant Cash Management Services views its human capital as the foundation of its success and remains dedicated to building a skilled, diverse, and future-ready workforce. Over the past year, the Company rolled out robust development initiatives, delivering 16 specialized training programs that benefited 86% of its staff. These sessions covered critical areas such as recruitment optimization, leadership development, and regulatory compliance. By continuously cultivating a diverse workforce with varied backgrounds, the Company successfully strengthens its operational capabilities at every level.

As of 31st March, 2026, the Companys total employee strength stood at 2,641.

1,370 elderly destitute individuals across 39 villages in Chennai. The Company is also associated with the Chennai Roti Bank as part of this initiative, further extending the reach of its nutrition-focused outreach.

The Employee distribution data as on the date of report is as given below:

The Ashraya Project is the Companys flagship CSR initiative, operational since 2011. The project is designed to provide free noon meals on a daily basis to the elderly and destitute. As at the reporting period, the project is delivering mid-day meals to 1,370 elderly destitute individuals across 39 villages in Chennai. The Company is also associated with the Chennai Roti Bank as part of this initiative, further extending the reach of its nutrition-focused outreach.

The Company is strategically positioned to capture the immense growth opportunities within rural and semi-urban markets.

Management remains dedicated to scaling its core cash management services while simultaneously branching into high-growth areas like valuables logistics and digital banking solutions, the latter driven by its fintech subsidiary, Radiant Acemoney.

The Company is also pursuing tariff revisions with banking partners to partially offset the inflationary pressure on fuel and wage costs. Radiant Valuable Logistics, which reported 35% revenue growth in FY 2025-26, was supported by the addition of marquee national jewellery chains and improved lane utilisation. The fintech subsidiary, Radiant Acemoney, targets to breakeven in the FY27 by monetising its installed base of over 1.5 lakh POS machines through transaction revenues and partnerships with small finance banks and NBFCs.

Statements in this management discussion and analysis describing the Companys objectives, projections, estimates and expectations may be forward-looking statements within the meaning of applicable laws and regulations. Actual results might differ substantially or materially from those expressed or implied. Other factors that could affect the Companys operations include but are not limited to, changes in the political and economic environment in India or abroad, tax laws, litigation, labour relations, foreign currency fluctuations, etc.