1. Industry Structure and Developments Global Economy
The global economy has, to date, withstood a series of shocks, and is now being tested again by a military conflict in the Middle East since late February 2026, which has raised commodity prices, disrupted trade routes and amplified risk-off sentiment in financial markets. Global growth in Q4 2025 rose to 3.9% (annualised), with China accelerating to 6.1% on strong exports, the euro area (ex-Ireland) to 1.5% on fiscal support in Germany, and Japan to 1.3%; US growth slowed to 0.5% amid a government-shutdown- led contraction in public spending. Global trade remained robust, led by technology-related exports benefiting Asian semiconductor and equipment exporters, while global supply chains continued to be rewired away from China and Canada toward Taiwan, Vietnam and Mexico. Medium-term prospects remain moderate, weighed down by geoeconomic fragmentation, even as AI-driven productivity gains and continued fiscal support offer potential tailwinds.
(Source: World Economic Outlook, April 2026, IMF)
Indian Economy
Indias economic momentum remains strong. Real GDP for FY 2025-26 is estimated at ?3,22,58,000 crore (7.6% growth), with Nominal GDP at ?3,45,47,000 crore / US$3.91 trillion (8.6% growth), keeping India among the fastest-growing major economies. Key recent indicators include:
• Cumulative FDI inflow of US$1.14 trillion (April 2000-December 2025); forex reserves of ?65,20,745 crore (US$688.05 billion) as of March 27, 2026.
• Manufacturing PMI at 53.9 in March 2026, signalling continued expansion; IIP grew 4.1% y-o-y.
• CPI inflation well-anchored at 3.40% y-o-y in March 2026; net GST collections for FY 2025-26 reached ?19.35 lakh crore (+7.1% y-o-y).
• 50% of power generation now from renewable sources, five years ahead of the 2030 target, supporting Indias Net Zero 2070 goal.
• 126 unicorns as of 2025 (6 added during the year); India ranked 38th in the Global Innovation Index 2025 (up from 81st in 2015).
Indias economic outlook remains robust, supported by resilient domestic demand, a stable external position, healthy tax collections and continued government focus on manufacturing, innovation, renewable energy and food security.
(Source: IBEF; Ministry of Statistics and Programme Implementation; DPIIT; RBI; GST Council)
FinTech Industry Global FinTech Market
Estimates of the global fintech market vary by research house depending on scope and methodology, but all point to strong, double-digit growth. Fortune Business Insights values the market at US$394.88 billion in 2025, projecting US$460.76 billion in 2026 and US$1,760.18 billion by 2034 (18.20% CAGR); North America held a 32.30% share in 2025. IMARC estimates the market at US$253.4 billion in 2025, growing to US$938.7 billion by 2034 (15.19% CAGR), with North America holding over 35.8% share.
Mordor Intelligence sizes the market at US$320.81 billion in 2025, reaching US$652.80 billion by 2030 (15.27% CAGR); it estimates digital payments held 46.2% of the market in 2024, with Asia-Pacific the fastest-growing region (16.02% CAGR to 2030) on a 44.86% share. Market Data Forecast projects growth from US$262.55 billion (2025) to US$1,982 billion by 2034 (25.18% CAGR), with digital lending as the fastest-growing segment , the World Bank reports digital loan disbursements grew over 30% in a single year, driven by AI-based credit scoring.
Across these estimates, the consistent themes are: (i) payments and fund transfer remain the largest service segment; (ii) digital lending and embedded finance are the fastest-growing segments, aided by API-led open banking; (iii) cloud deployment is displacing on-premises infrastructure; and (iv) AI-powered automation, fraud monitoring and customer service are increasingly embedded across the value chain. FinTech companies typically deliver these capabilities on a B2B, cloud-hosted basis, allowing banks and other financial institutions to integrate payment processing, P2P lending, fraud detection and blockchain- based solutions without building the underlying technology in-house.
(Sources: Fortune Business Insights , fortunebusinessinsights.com/fintech-market-108641; IMARC Group , imarcgroup.com/fintech-market; Mordor Intelligence , mordorintelligence.com/industry-reports/global- fintech-market; Market *Data Forecast , marketdataforecast.com/market-reports/fintech-market)
Indian FinTech Market
Indias fintech market is estimated at US$51.30 billion in 2026, projected to reach US$109.06 billion by 2031 (16.27% CAGR), per Mordor Intelligence; digital payments led with a 42.87% share in 2025, while neobanking is the fastest-growing category (19.64% CAGR). Mobile applications account for 67.83% of channel adoption. India accounted for an estimated 49% of global real-time payment volumes in 2023, anchored by the Unified Payments Interface (UPI). Digital payment volumes surpassed 180 billion transactions in FY2024-25 per RBI data; UPIs own annual transaction value reached ?314 lakh crore in FY2025-26 (NPCI data via PIB, Ministry of Finance), with volume growth of 30.0% year-on-year, and the RBIs Digital Payments Index rose from a base of 100 (March 2018) to 465.33 (September 2024).
Funding into Indian fintechs recovered through 2026: Tracxn reports India raised US$2.0 billion across 106 rounds in H1 2026 (+42% over H1 2025s US$1.4 billion), retaining its position as the worlds third- largest fintech funding market behind the US and UK; lending and payments together accounted for more than three-quarters of H1 2026 funding, with late-stage rounds (such as CREDs US$900 million Series H) dominating capital deployed. On the regulatory front, the RBI issued a consolidated set of around 244 Master Directions in November 2025 covering banks, NBFCs, All India Financial Institutions and Asset Reconstruction Companies, alongside a dedicated Master Direction on Payment Aggregators (September 2025) and continuing oversight of digital lending, peer-to-peer lending (NBFC-P2P) and Account Aggregators (NBFC-AA).
(Sources: Mordor Intelligence , mordorintelligence.com/industry-reports/india-fintech-market; RBI Digital Payments Index and NPCI data via PIB, Ministry of Finance; Tracxn India FinTech Funding Report 2025 / H1 2026 via Business Standard, business-standard.com; ICLG FinTech Laws and Regulations 2026 , iclg.com/practice-areas/fintech-laws-and-regulations/india)
Business Correspondent (BC) and Financial Inclusion Segment , Directly Relevant to RNFI
The Business Correspondent channel, within which RNFI operates, is itself scaling rapidly. Industry estimates value the Indian BC industry at over ?1,47,000 crore (Rs 147 billion, on one industry estimate) in annual throughput terms for FY2025, growing at an approximate 19% CAGR, while separate estimates put annual BC-channel transaction throughput at ?6-7 lakh crore, growing 25-30% CAGR over the past three years; Aadhaar-Enabled Payment System (AePS) transactions specifically have grown nearly 40% year- on-year in semi-urban and rural markets, and more than 50 crore PMJDY (Jan Dhan) accounts continue to be serviced largely through BC touchpoints. The RBIs enhanced BC 2.0 framework , covering stricter onboarding norms, cross-bank interoperability, higher transaction limits and stronger digital audit trails , together with the RBIs National Strategy for Financial Inclusion (NSFI) 2025-30, is expanding the addressable market for BC-network operators such as RNFI, particularly in Tier-2, Tier-3 and rural geographies.
(Sources: RBI National Strategy for Financial Inclusion 2025-30; Bizz Buzz , bizzbuzz.news, "RBIs BC 2.0 framework powers Indias last-mile banking revolution", June 2026; Best Vantage Investments , bestvantageinvestments.com, "The Rise of Indias Business Correspondent Sector")
Indias Digital Infrastructure Backbone
The Digital India Programme (launched 2015) underpins this growth: optical fibre coverage expanded from 19.35 lakh route km (2019) to 42.36 lakh route km (2025), 5G now reaches 99.9% of districts, internet connections rose from 25.15 crore (2014) to 102.86 crore (2026), and broadband connections rose from 6.1 crore (2014) to 99.56 crore (December 2025). The IndiaAI Mission (approved 2024, outlay over ?10,300 crore) is building indigenous AI compute capacity , a common facility with over 38,000 GPUs is being established, and the AI Kosh platform hosts 12,115 datasets and 306 AI models across 20 sectors; as of March 2026, India has around 1.8 lakh start-ups, with nearly 89% of new start-ups using AI solutions.
(Source: Press Information Bureau , pib.gov.in/PressReleasePage.aspx?PRID=2276447)
2. Opportunities and Threats Opportunities
Favourable regulatory developments: The proposed RBI Business Correspondent (BC) draft guidelines are expected to positively impact the Credit Risk Assessment (CRA) and Cash Management Services (CMS) businesses, creating additional growth opportunities.
Introduction of UPI Cash Withdrawal services: Provides an additional product offering that can strengthen customer engagement and expand transaction volumes.
Expansion of foreign exchange operations: The AD-II licence now enables foreign trade transactions of up to ?25 lakh per transaction, significantly expanding the addressable market; the appointment of Forex Correspondents (FxC) presents further network expansion opportunities.
Strategic lending partnerships: The Companys loan referral partnership with a leading private sector bank is expected to enhance its financial services portfolio and create new revenue streams.
Expansion into wealth and insurance distribution: Growth of the insurance broking business, RBI BC/BO draft guidelines and ARN registration for mutual fund distribution provide opportunities to diversify product offerings and strengthen fee-based income.
Threats
Decline in Domestic Money Transfer (DMT) volumes: Revised RBI guidelines have materially impacted DMT transaction volumes, which declined by approximately 69%, from ?3,580 crore in FY2025 to ?1,112 crore in FY2026. Prolonged weakness in this segment may adversely affect revenue generation.
Discontinuation of PPI DMT business: Discontinued effective December 31, 2025 following regulatory changes; the business had generated Gross Transaction Value (GTV) of ?402 crore during April— December FY2026, and the loss of this revenue stream may impact overall transaction volumes.
Regulatory uncertainty: The fintech industry remains highly regulated, and future changes in RBI, NPCI and other regulatory guidelines may impact business operations, compliance costs and profitability.
Increasing competitive intensity: The Company operates in a highly competitive environment with participation from banks, fintech companies and digital platforms, which may exert pressure on margins and customer acquisition costs.
3. Segment-wise Performance Company Overview
RNFI Services Limited is one of Indias leading fintech-driven Business Correspondent (BC) network operators, providing technology-enabled financial inclusion and digital financial services across urban, semi-urban and rural markets. Incorporated in 2015, the Company offers a comprehensive portfolio of financial and digital services, including domestic money transfer, Aadhaar Enabled Payment System (AePS), micro-ATM services, digital payment solutions, BBPS utility bill payments, mobile and DTH recharges, PAN card services, travel bookings, loan collection, cash management services, insurance distribution, and Full-Fledged Money Changer (FFMC) operations, delivered through a scalable technology platform and an asset-light distribution model.
For the financial year ended March 31, 2026, RNFI reported total income of ?973.95 crore and profit after tax of ?32.44 crore, registering healthy growth over the previous year.
Segment-wise Performance
RNFI operates across multiple segments including Non-FFMC (Business Correspondent) services, Full- Fledged Money Changer (FFMC), and digital financial services such as payments, collections, insurance distribution, verification and technology platforms.
In FY2025-26, the Non-FFMC segment contributed significantly to revenue, with strong performance in EMI collections, loan recovery, insurance distribution and Cash Management activities.
The FFMC segment remained stable, supported by steady foreign exchange demand.
A diversified service mix and cross-sell strategy across the Sahayak network continue to drive higher product penetration and sustainable growth.
Business Strengths Underpinning Segment Performance
Margin expansion driven by operational efficiencies: The Company delivered margin expansion in line with its stated guidance during FY2026, with automation-led efficiencies and disciplined cost management improving Gross Margin, EBITDA and PAT.
Profitability supported by high-margin business segments: High-margin verticals, particularly Delinquent Loan Collections and EMI Collections, continued to be significant contributors to profitability, improving the quality and sustainability of earnings.
Scaling of technology-driven business verticals: Emerging technology-led businesses such as Travel, Cash Management activities and Insurance continued to gain traction, demonstrating the scalability of the platform-based business model.
Strong performance of the Orchestration business: Delivered robust annual growth and emerged as an important driver of overall earnings expansion, strengthening the Companys integrated financial services ecosystem.
Agent Network Expansion
RNFIs distribution network continued to scale during FY2025- 26, with the active agent base growing to 2,40,694 as of March 31, 2026, from 2,15,314 as of March 31, 2025, an increase of 25,380 agents (+11.8% YoY). This expansion reinforces the Companys asset-light, network- driven distribution model. Average Revenue Per User (ARPU) rose to ?1,108 in FY2025-26 from ?1,066 in FY2024-25, and showed strong sequential improvement through the year, from ?1,522 in Q1 to ?1,954 in Q4 FY2025-26, an increase of 28% over four quarters, reflecting deeper monetisation of the existing agent base as newer, higher-margin products (insurance, loan collections, CMS) scale across the network.
Revenue Diversification Offsetting DMT Decline
While DMT volumes declined by approximately 69% during FY2025-26 due to revised RBI guidelines, the Companys diversified business mix ensured overall profitability was not only protected but improved. The Company also commenced its Bullion Services business during FY2025-26, adding an incremental revenue stream. This diversification is central to why consolidated PAT grew 61.4% even as one of the Companys largest legacy segments contracted sharply, demonstrating the resilience of the platform- based, multi-vertical model.
PaySprint (Subsidiary) , Segment & Product Performance
PaySprint Private Limited, the Companys technology subsidiary, delivered Gross Margin of ?3,867 lakh on revenue of ?14,607 lakh in FY2025-26.
4. Outlook
Economic Outlook
Indias economic outlook remains robust, supported by strong macroeconomic fundamentals, resilient domestic demand and sustained investment momentum. The economy continues to rank among the fastest-growing major economies globally, driven by broad-based expansion across manufacturing, services and infrastructure, alongside steady improvement in industrial and business activity.
A stable external position, supported by a manageable current account balance and consistent capital flows, reinforces confidence in Indias long-term growth trajectory. Despite evolving global uncertainties, investor interest remains intact across key sectors, backed by policy stability and structural growth drivers. Domestic demand continues to act as a key anchor, supported by stable inflation, rising mobility and travel activity, healthy tax collections and strong participation from domestic institutional investors. Ongoing government initiatives to boost manufacturing, innovation, renewable energy and food security are further strengthening the foundation for sustained growth.
(Source: IBEF)
Company Outlook
FY2025-26 was a year of resilience, strategic realignment and improved profitability for RNFI Services Limited. The operating environment remained challenging, particularly following regulatory changes that led to an approximately 69% decline in DMT transaction volumes. Going forward, the Company does not anticipate any meaningful recovery or growth in the DMT business. Accordingly, our strategic focus will remain firmly on expanding higher-margin businesses and further diversifying the product portfolio. This will enable the Company to reduce its dependence on DMT, improve the overall revenue mix, and drive sustainable growth in profitability.
Consolidated total income stood at ?968.59 crore, Profit After Tax recorded strong growth of ?32.44 crore reflecting our continued focus on operating efficiency, disciplined cost management and improving the quality of our revenue mix. The growing contribution from our diversified business segments substantially mitigated the pressure on DMT and reinforced the resilience of our platform.
During the year, we continued to strengthen our PPI, CRA and CMS businesses, while investing in technology, distribution infrastructure and scalable operating capabilities which will help us achieve guidance number for March 2027 of approximately 40-45%YoY Growth on PAT. Our strategic priority remains to reduce business concentration, deepen customer relationships and build multiple sustainable growth engines across the financial services ecosystem.
I would like to express my sincere appreciation to our employees, customers, business partners and shareholders for their continued trust and support. Their confidence remains integral to our journey of building a stronger, more diversified and sustainable RNFI.
CFO Message Nimesh Khandelwal
RNFI Services remains focused on sustainable profitability, operational excellence and technology-led innovation, while continuing its mission of promoting financial inclusion and empowering individuals and businesses through accessible financial solutions. Looking ahead, the Company is committed to strengthening its position as a trusted fintech partner for banks, financial institutions and customers by investing in digital infrastructure, expanding its service offerings and deepening its market presence. With a customer-centric approach, strong governance framework and scalable business model, the Company is well positioned to capitalise on the growing opportunities in Indias rapidly evolving digital financial services ecosystem.
Strategic Growth Drivers
UPI Cash Withdrawal (BC network) , enabling cardless cash withdrawals, expected to drive transaction volumes and merchant engagement.
ReliAssure (insurance broking) , leveraging RNFIs distribution network to scale insurance penetration and cross-selling.
PaySprint PGX , a new Payment Gateway Orchestration platform offering single-integration access to multiple gateways, opening a scalable enterprise payments opportunity.
5. Risks and Concerns Key Risk Factors
The Company operates in a regulated and competitive environment, exposing it to regulatory, operational and market risks.
Regulatory changes by RBI, IRDAI and other authorities may impact certain business lines, as seen in the impact of revised RBI guidelines on DMT volumes.
Technology risks, including cyber threats, system downtime and third-party dependencies, remain key concerns given the Companys reliance on technology platforms, banking partners and third-party integrations.
Macroeconomic conditions and changes in customer behaviour may affect transaction volumes.
Strong compliance, diversified services, technology investments and a wide partner network help mitigate these risks.
Cautionary Statement
Statements in this report describing the Companys objectives, projections, estimates, expectations or predictions may be "forward-looking statements" within the meaning of applicable securities laws.
These statements are based on certain assumptions and expectations of future events.
Actual results may differ materially due to changes in economic conditions, regulatory developments, competitive pressures, technological advancements and other factors beyond the Companys control.
The Company assumes no obligation to publicly update or revise any forward-looking statements, except as required by law.
6. Internal Control Systems and Their Adequacy
RNFI has a robust internal control system aligned with the scale and complexity of its operations.
Policies, procedures and approval frameworks are in place to ensure accuracy in financial reporting and regulatory compliance.
Periodic internal audits, risk assessments and management reviews strengthen governance and operational efficiency.
Technology-driven monitoring enables real-time tracking of transactions and reduces operational risk.
The Audit Committee regularly reviews the adequacy and effectiveness of internal controls.
7. Financial Performance
Consolidated Financial Performance
8. Developments in Human Resources
The Companys people are considered central to its growth and innovation.
RNFI continues to invest in talent acquisition, capability building and leadership development.
A focus on digital training, fintech expertise and performance-linked incentives is aimed at enhancing productivity and engagement.
An inclusive and performance-oriented culture is intended to help the Company attract, retain and nurture talent for long-term success.
Relations with employees remained cordial during the year under review, with no material industrial relations issues reported.
On a financial basis, consolidated employee benefits expense increased 36.37% to ?9,799.80 lakhs in FY2026 from ?7,186.20 lakhs in FY2025, primarily reflecting higher salaries, wages and bonus (+?2,382.15 lakhs) as the workforce was expanded to support business growth, along with higher director remuneration, staff welfare expenses and gratuity expense. On a standalone basis, employee benefits expense increased 30.98% to ?6,933.14 lakhs from ?5,293.48 lakhs.
9. Key Financial Ratios Consolidated
| Ratio | FY2026 | FY2025 | Explanation |
| Debtors (Trade Receivables) Turnover | 23.14 | 29.97 | Declined on higher average trade receivables from increased business volumes and credit extended to customers. |
| Inventory Turnover Ratio | 74.85 | 88.09 | Declined on relatively higher average inventory levels. |
| Interest Coverage Ratio (derived) | 20.84x | 13.53x | Improved on stronger operating profitability relative to finance costs. |
| Current Ratio | 1.68 | 1.45 | Improved liquidity, supported by growth in current assets relative to current liabilities. |
| Debt-Equity Ratio | 0.15 | 0.14 | Marginal increase; Company continues to maintain a conservative, low-leverage capital structure. |
| Operating Profit Margin % (derived) | 4.74% | 3.15% | Improved operating leverage and growing contribution from high-margin verticals. |
| Net Profit Margin % | 3.35% | 2.19% | Higher revenues, expanded operating margins and improved high-margin vertical contribution. |
| Ratio | Consol FY26 | Consol FY25 | SA FY26 | SA FY25 |
| Debt Service Coverage Ratio | 32.25 | 22.40 | 32.43 | 18.15 |
| Return on Equity Ratio | 0.22 | 0.27 | 0.16 | 0.21 |
| Trade Payables Turnover Ratio | 144.80 | 204.22 | 244.78 | 83.34 |
| Net Capital Turnover Ratio | 2.69 | 3.28 | 1.06 | 1.27 |
Consolidated
The Return on Equity (Return on Net Worth) declined to 0.22 in FY2026 from 0.27 in FY2025. The decrease was primarily attributable to a significant increase in shareholders equity during the year (to ?17,557.01 lakhs from ?11,431.34 lakhs), resulting in a relatively lower return on the expanded equity base despite the 61.41% growth in profit after tax.
Standalone
On a standalone basis, Return on Equity declined to 0.16 in FY2026 from 0.21 in FY2025. The decrease was similarly attributable to an increase in shareholders equity (to ?14,447.70 lakhs from ?10,576.48 lakhs), resulting in comparatively lower returns on the expanded equity base despite a 42.39% improvement in profit after tax.
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