Image: Vakrangee Kendra ATM booth
"FY2026 was not merely a scale story. It was a business-quality story—stable reach, stronger margins, positive operating cash flow and a more diversified revenue architecture."
1. Executive Overview
FY2025-26 marked a decisive improvement in the quality of Vakrangees earnings and cash generation. The Company sustained one of Indias broadest assisted last-mile access networks while deliberately prioritising higher-margin services, recurring technology and maintenance income, operating discipline and better yield per Kendra. Total income increased by 0.8% to Rs. 26,136.2 lakh, while EBITDA rose by 22.7% to Rs. 3,426.1 lakh, profit before tax increased by 61.4% to Rs. 1,518.8 lakh and profit after tax increased by 79.3% to Rs. 1,111.9 lakh. Cash flow from operations before tax turned positive at Rs. 63.7 crore compared with a deficit of Rs. 25.1 crore in FY2025.
The divergence between modest income growth and substantially stronger profit growth is central to understanding the year. It indicates that Vakrangees transformation is increasingly about revenue quality rather than indiscriminate transaction scale. The platform is being monetised through a broader mix of assisted BFSI services, insurance, lending enablement, ATM operations, Vortex product sales, software, Annual Maintenance Contracts, implementation services and selected digital and e-commerce journeys. This creates diversified income pools across commissions, service fees, hardware sales, recurring AMC, software and field support.
The Group entered FY2027 with a debt-free balance sheet, net worth of Rs. 22,335.4 lakh, positive operating cash generation and a platform of 23,087 active transacting Kendras across 32 States and Union Territories. Approximately 84% of the network is situated in Tier IV, V and VI markets. The next phase is therefore not about reach alone; it is about improving the value created through that reach for customers, franchisees, partners, communities and shareholders.
Figure 1: Earnings quality improved faster than income
| Metric | YoY Growth |
| Total income | 0.8% |
| EBITDA | 22.7% |
| PBT | 61.4% |
| PAT | 79.3% |
| Cash profit | 25.4% |
Sources: Vakrangee FY2025-26 audited consolidated results; Company records.
Key Metrics:
| Metric | Value |
| ATMs operated | 6,073 |
| Annual GTV | ?53,791.2 cr |
2. Global Economic Overview
The global economy entered 2026 with resilience, but the operating environment remained complex. The IMFs July 2026 World Economic Outlook Update projected global growth of 3.0% in 2026 and 3.4% in 2027. The outlook reflected two offsetting forces: the lingering effects of geopolitical and energy shocks, and a technology-led investment cycle that continued to support selected economies. Global disinflation had stalled, while renewed conflict, energy volatility and financial-market repricing remained material downside risks.
For an India-focused essential-services platform, the transmission channels are indirect but strategically relevant. Higher energy and component costs can affect ATM manufacturing, logistics and field service. Trade fragmentation and supply-chain disruption can influence electronic components, certification schedules and delivery timelines. Financial volatility can affect banks, NBFCs, insurers and technology partners. At the same time, institutions continue to demand secure, low-cost and inclusive distribution infrastructure, creating opportunity for asset-light assisted networks and locally manufactured banking automation.
Vakrangees principal exposure remains domestic, linked to Indian consumption, formalisation, financial inclusion and technology-enabled service delivery. Vortex introduces an additional export, sourcing and foreign-exchange dimension. The Groups strategic response is therefore to maintain a conservative balance sheet, diversify suppliers and partners, deepen recurring software and AMC income, and build operating flexibility across products and channels.
Global growth remains moderate amid crosscurrents
| Year | Real GDP Growth (%) |
| 2025 | 3.4% |
| 2026F | 3.0% |
| 2027F | 3.4% |
Sources: International Monetary Fund, World Economic Outlook Update, July 2026; World Bank and WTO publications used as contextual references.
3. Indian Economic Overview
Indias economy remained one of the fastest-growing major economies in FY2025-26. Official estimates placed real GDP growth at approximately 7.4% supported by consumption, investment, services, infrastructure and continued formalisation. The Economic Survey 2025-26 projected FY2026-27 growth in a range of 6.8% to 7.2% indicating continued expansion from a high base.
The quality of the domestic backdrop is particularly relevant to Vakrangee. Stronger rural demand, public digital infrastructure, improving telecommunications coverage, government-to-person transfers and the expansion of formal financial access enlarge the addressable market outside metropolitan centres. Lower inflation supports household purchasing power, while a resilient banking system strengthens the capacity of banks and financial institutions to expand deposits, insurance, credit and service distribution.
The Companys network is concentrated where assisted service remains valuable. Approximately 84% of active transacting Kendras are located in Tier IV, V and VI markets.
Global growth near 3% is steady rather than strong. For an India-focused essential-services platform, the transmission channels are indirect but strategically relevant.
IV, V and VI markets. In these markets, digital availability and customer adoption do not always progress at the same pace. Language, documentation, trust, device access and product understanding can still create friction. Vakrangees phygital model connects national digital rails with a local human interface, making formal services easier to discover, understand and complete.
Figure 3: India remains a high-growth major economy
| Year | Real GDP Growth (%) |
| FY2024 | 9.2% |
| FY2025 | 6.5% |
| FY2026E | 7.4% |
| FY2027F | 7.0% |
Sources: Economic Survey 2025-26; Ministry of Statistics and Programme Implementation; Reserve Bank of India.
Stronger rural demand, public digital infrastructure and expanding formal financial access enlarge the market Vakrangee already serves through trusted local points.
4. Industry and Market Context
Indias last-mile financial and digital-services landscape is being reshaped by the interaction of public digital infrastructure, widening formal financial access, rapid growth in electronic payments, continuing cash requirements and demand for trusted physical assistance. These forces are complementary rather than mutually exclusive. Digital rails reduce the cost of identification, onboarding, payment and documentation; formal accounts create a base for savings, insurance, pensions and credit; and assisted networks help customers overcome language, documentation, trust and grievance-resolution barriers. For Vakrangee, the relevant industry model is physical. Digital platforms provide reach and interoperability, while Kendras provide assisted conversion, local accountability and service assurance. The commercial opportunity is to move from isolated transactions towards deeper customer relationships and higher-value service journeys, without assuming product, underwriting or inventory risks that properly belong with regulated partners.
4.1 Digital Public Infrastructure and the FinTech Ecosystem
Indias digital public infrastructure combines digital identity, interoperable payments, electronic documentation and consent-led data exchange. Aadhaar, bank accounts, UPI, IMPS, AePS, RuPay, Bharat BillPay, DigiLocker, eSign and the Account Aggregator framework allow institutions to design modular customer journeys rather than build every component independently. This has lowered transaction costs, accelerated onboarding and widened the set of services that can be delivered remotely or through assisted channels.
The FinTech ecosystem has evolved from payments-led adoption towards lending, wealth, insurance, account aggregation, merchant services and embedded finance. This creates opportunity for platforms that can provide compliant customer acquisition, assisted documentation, local servicing and high-quality data capture. It also raises the importance of consent, data minimisation, cyber resilience, transparent product communication and responsible outsourcing.
| Digital layer | Representative systems | Relevance to Vakrangee |
| Identity and authentication | Aadhaar, CKYC, eSign | Supports assisted onboarding, identity verification and secure completion. |
| Accounts and access | Bank accounts, PMJDY, Business Correspondent network | Creates the base for deposits, remittances, insurance, pensions and credit journeys. |
| Payments | UPI, AePS, IMPS, RuPay, BBPS | Enables cash and non-cash transactions through interoperable rails. |
| Documents and consent | DigiLocker, Account Aggregator | Can reduce paperwork and support consent-led data sharing. |
| Assurance | APIs, monitoring, ticketing, analytics | Connects partners, Kendras and customers while improving visibility and issue resolution. |
4.2 Digital Payments, Assisted Cash Access and Customer Behaviour
Digital payments continued to expand at scale during FY2025-26. UPI remained the dominant retail rail, supported by QR acceptance and increasingly diverse use cases. Yet cash remains relevant, particularly where income is received digitally but household expenditure continues to be partly cash-based. A customer may receive a Direct Benefit Transfer into a bank account, withdraw part through AePS or an ATM, pay a utility bill digitally and purchase insurance through an assisted outlet within the same month.
The industry should therefore not be viewed through a simple cash-versus-digital lens. Last-mile platforms need to support mixed behaviour while gradually increasing the share of higher-value non-cash and financial-service journeys. Reliable cash access remains a social and commercial requirement; the strategic objective is to complement it with deposits, protection, credit enablement, payments.
Digital payments continued to expand at scale
| Metric | Annual Growth (%) |
| FY2025 Volume | 34.8% |
| FY2026 Volume | 26.8% |
| FY2025 Value | 17.3% |
| FY2026 Value | 13.2% |
Sources: Reserve Bank of India Annual Report 2025-26; NPCI product statistics.
Reliable cash access remains a social and commercial requirement. The strategic objective is to complement it with deposits, protection, credit enablement and higher-value journeys.
4.3 Financial Inclusion: From Access to Usage and Quality
Indias financial-inclusion journey is progressing from account access towards usage, quality and customer outcomes. The RBI Financial Inclusion Index rose to 70.0 for March 2026 from 67.0 in March 2025 and 64.2 in March 2024. The improvement was led by higher usage and accompanied by progress across the indexs Access, Usage and Quality dimensions. This progression is strategically important: once basic access becomes widespread, the next phase of value creation comes from active savings, regular payments, insurance protection, pension participation, responsible credit and financial capability.
Financial inclusion advanced across access, usage and quality
| Period | RBI Financial Inclusion Index |
| March 2024 | 64.2 |
| March 2025 | 67.0 |
| March 2026 | 70.0 |
Source: Reserve Bank of India; March 2026 improvement led by higher usage
Figure 5: Financial inclusion advanced across access, usage and quality
Image: Street scene in India
PMJDY provides a broad foundation for this next phase. As at 8 July 2026, the official progress report recorded 58.70 crore beneficiaries, including 45.68 crore at rural and semi-urban centres and 32.72 crore women beneficiaries. Deposits stood at approximately Rs. 3.10 lakh crore and 40.89 crore RuPay cards had been issued. These accounts create an entry point into the formal system; their developmental and commercial value deepens when customers use adjacent savings, payments, insurance, pension and credit products responsibly.
PMJDY has created a broad base for deeper financial usage
| Metric | Beneficiaries / Cards (crore) |
| Total beneficiaries | 58.70 |
| Rural / semi-urban beneficiaries | 45.68 |
| Women beneficiaries | 32.72 |
| RuPay cards issued | 40.89 |
Sources: Reserve Bank of India Financial Inclusion Index for March 2026; Department of Financial Services, PMJDY Progress Report as at 8 July 2026.
4.4 Banking, Deposits and Credit Enablement
Banks are digitising onboarding, servicing and analytics while retaining the need for local execution in customer acquisition, documentation, cash services, collections and education. This hybrid architecture is especially relevant for rural, mass-market and small-business customers. Credit journeys may begin digitally but still require assistance with documents, consent, cash-flow explanation or repayment. Deposit and pension products can similarly benefit from a trusted local interface.
Vakrangee can participate as a distribution and service layer rather than as the principal lender. Customer discovery, consent-led lead generation, document facilitation, application support, repayment assistance and NPA-recovery support can create fee income without transferring underwriting risk to the Company. Sustainable execution requires clear role definition, lender ownership of credit decisions, customer suitability, auditability and effective complaint resolution.
4.5 Insurance, Pensions and Protection
Indias protection gap and policy objective of wider insurance and pension coverage create a long runway for assisted distribution. Insurance products involve benefits, exclusions, waiting periods, premium commitments, nomination and claims procedures that customers may find difficult to assess independently. A trusted outlet can improve discovery and completion while supporting renewals, document updates and service queries.
For Vakrangee, insurance and pensions are attractive because they can increase service depth and create non-cash fee income through the existing network. The opportunity must remain aligned with suitability, disclosure, partner training and customer-first selling. Mis-selling or incomplete explanation would damage the trust advantage on which the model depends.
4.6 Indias ATM, WLA and Banking Automation Landscape
Indias ATM and White Label ATM market continues to serve a critical access function while undergoing structural change. Cash withdrawals remain essential in markets where cash usage is high, or branch access is limited. At the same time, transaction economics, security requirements and ageing installed infrastructure are increasing demand for uptime, operating-system upgrades, remote diagnosis, preventive maintenance, cash recycling and service-rich terminal formats.
Vakrangee participates as a distribution and service layer rather than as the principal lender. Fee income is created without transferring underwriting risk to the Company.
Banks and ATM operators are increasingly evaluating the lifecycle economics of the installed estate rather than the initial device purchase alone. Hardware reliability, software visibility, first-time resolution, maintenance response, spares availability, cyber security and regulatory compliance directly influence customer experience and profitability. This creates a broader value pool for integrated providers that can combine machines, monitoring software, implementation and field service.
4.7 ATM Manufacturing and Lifecycle-Services Opportunity
Globally, the ATM industry is shifting towards replacement, multifunction devices, cash recyclers, intelligent monitoring, cardless and biometric functionality, enhanced cyber controls and managed services. The opportunity is increasingly distributed across hardware, software, maintenance, implementation and analytics. Local manufacturing capability can also provide resilience where institutions seek diversification of supply, country-specific certification and faster lifecycle support.
Vortex Engineering is positioned within this evolution through ATM engineering, Android and Mini ATM products, device backend units, Perfo monitoring, analytics, incident management, AMC and field support. Export opportunity brings additional requirements relating to certification, foreign exchange, geopolitical exposure, local service partners and after-sales capability.
ATM and banking-automation value is shifting towards lifecycle economics
| INDIA ACCESS & WLA | GLOBAL MANUFACTURING | VALUE POOLS FOR VORTEX |
| Cash + digital coexist | Ageing-device replacement | ATM product sales |
| Replacement and localisation | Multifunction / cash recycling | Perfo software + AMC |
| Uptime and field coverage | Cyber and OS upgrades | Integration + field support |
Figure 7: ATM value is shifting from machines alone towards lifecycle economics.
Integrated providers can combine machines, monitoring, maintenance and partner support.
4.8 E-Governance and Citizen Services
Digital governance continues to move public services closer to citizens, but assisted access remains important for identity, documentation, applications and scheme navigation. E-governance services can create convenience, reduce travel and improve participation in formal systems. Vakrangees historical experience in citizen-facing technology and distributed service delivery provides relevant process knowledge. The Companys role is to facilitate approved journeys accurately and transparently, while the relevant government department or authorised agency retains policy and service ownership.
Image: Vortex ATM manufacturing facility
4.9 E-commerce, Healthcare, Travel, Utilities, Education, Agriculture and Logistics
Assisted commerce can reduce barriers relating to product discovery, language, digital payment confidence, addressability, returns and grievance handling. Kendras can support ordering, payment, pick-up, returns and customer communication through partner-led fulfilment. Digital health can similarly improve access to service discovery and teleconsultation, provided clinical responsibility remains with qualified healthcare partners and consent and privacy are protected.
Travel bookings, utility payments, recharges, education services, agriculture products and courier support can increase visit frequency and improve the relevance of the Kendra as a neighbourhood convenience point. The strategic filter is not transaction count alone. Each service should be assessed for contribution margin, repeat usage, operating fit, partner quality, customer protection and capital intensity.
The next phase of last-mile services will be won by platforms that combine interoperability with local trust, and scale with disciplined operating assurance.
Industry Outlook and Strategic Implications
| Industry direction | Implication for Vakrangee |
| Digital infrastructure is widening availability | Use assisted access to convert availability into confident and sustained usage. |
| Cash and digital payments will coexist | Maintain reliable cash access while increasing deposits, insurance, lending and non-cash journeys. |
| Financial inclusion is moving from access to usage | Increase service depth, customer education and repeat engagement. |
| FinTech is becoming embedded and consent-led | Strengthen secure integrations, data governance and responsible sales. |
| ATM value is shifting to lifecycle economics | Scale hardware, Perfo software, AMC, implementation and field support together. |
| Institutions seek efficient access to Bharat | Offer transparent, compliant execution with SLA and partner-performance visibility. |
| Distributed energy demand is rising | Use manufacturing and distribution capability selectively, with strong product governance. |
Strategic Conclusion
The industry is moving towards integrated service ecosystems rather than single-product channels. Institutions need lower-cost distribution, customers need trust and assistance, and operators need stronger visibility over fulfilment and service quality. Vakrangees opportunity sits at this intersection.
The Companys strategic response is to combine Kendra-led access with digital journeys, regulated partner products, Vortex-led infrastructure and stronger operating assurance. This architecture allows cash, digital, assisted and technology-led revenue pools to coexist while the Company progressively improves yield and recurring income.
5. Company Overview and Strategic Positioning
About Vakrangee Limited
Incorporated in 1990 and headquartered in Mumbai, Vakrangee Limited is a technology-enabled last-mile access platform serving customers across Bharat. The Company combines physical Vakrangee Kendras, district-level Master Franchisees, ATM infrastructure, BharatEasy, service-partner integrations and Vortex Engineerings banking-automation capabilities. Its purpose is to make essential services discoverable, understandable and executable closer to the customer.
The Company has evolved through several phases: technology and e-governance assignments; the development of a distributed Kendra network; expansion into banking, ATM, insurance, digital and commerce services; the Master Franchisee operating architecture; and the addition of ATM manufacturing, monitoring software and lifecycle services through Vortex Engineering. Each phase added a capability rather than replacing the earlier one. The result is a phygital platform that connects institutions with customers through local entrepreneurship and digital workflows.
Vakrangees business model is asset-light at the distribution layer. Franchisees provide local presence and entrepreneurship, Master Franchisees provide district-level support and accountability, service partners retain product and fulfilment ownership, and central technology and governance systems provide integration, monitoring and control. Vortex adds a more capital- and working-capital-sensitive manufacturing dimension, making disciplined procurement, inventory and receivable management important to the Groups evolving economics.
Key Metrics:
| Metric | Value |
| Active Kendras | 23,087 |
| States and UTs | 32 |
| Districts | 609 |
| Postal codes | 5,873 |
Image: Vakrangee Kendra storefront
Platform Architecture
The operating architecture has five connected layers. The access layer comprises Kendras, ATMs, Master Franchisees and digital interfaces. The service layer aggregates banks, insurers, lenders, billers, merchants, healthcare, travel, logistics and other partners. The activity layer enables discovery, explanation, onboarding, documentation and transactions. The assurance layer provides monitoring, settlement, support and grievance resolution. The economics layer converts activity into commissions, fees, technology, AMC, implementation and product income.
The platform is designed to create a reinforcing loop. Trusted local access improves customer confidence. Greater service depth increases transaction frequency and wallet share. Better partner outcomes encourage deeper integration. Higher-quality revenue supports reinvestment in technology, training, governance and support. This reinvestment, in turn, strengthens service reliability and trust.
Figure 8: Vakrangees platform value flow
Outcome:
A more productive, trusted and scalable platform with deeper customer relationships and stronger economics.23,087 Kendras across 609 districts and 5,873 postal codes, with approximately 84% in Tier IV, V and VI markets — a footprint built where assisted service still carries weight.
Geographic and Inclusion Profile
At 31st March 2026, the Company had 23,087 active transacting Kendras across 609 districts and 5,873 postal codes. Approximately 84% of the network was located in Tier IV, V and VI markets. The Company also had 5,425 Kendras across LWE-affected, tribal and aspirational districts. This distribution profile is strategically significant because these markets often require local assistance for financial, digital and essential services.
The network should not be understood simply as a count of outlets. It is a distributed service infrastructure capable of supporting customer acquisition, documentation, transactions, fulfilment, support and cross-sell. Its productivity depends on active services, customer relevance, franchisee economics, partner availability, training and operating assurance.
Figure 9: Active transacting Kendra network
| Year | Active Transacting Kendras |
| FY2022 | 22,042 |
| FY2023 | 20,399 |
| FY2024 | 21,653 |
| FY2025 | 22,986 |
| FY2026 | 23,087 |
Service and Revenue Architecture
Vakrangee is not dependent on a single service line. BFSI remained the largest revenue pool, while ATM operations, Vortex product and service income, and e-commerce and other services added diversification. The strategic direction is to increase the contribution of higher-margin non-cash BFSI services, recurring software and AMC income, implementation fees and partner-led service revenue while maintaining reliable access to cash and essential services.
Figure 10: Diversified revenue pools support platform economics
| Segment | Share of Revenue (%) |
| BFSI | 49.0% |
| ATM operations | 20.2% |
| Sale of ATM products & services | 19.8% |
| E-commerce & other services | 11.0% |
The shift from reach to yield does not mean abandoning scale. It means using the existing access infrastructure more productively. The core performance questions are: how many relevant services are active at each Kendra; how frequently customers return; how much value is generated per interaction; whether partners achieve reliable fulfilment; and whether revenue converts into cash without excessive balance-sheet intensity.
Strategic Strengths
| Strategic strength | Why it matters |
| Trusted local access | Provides a human interface for high-trust, documentation-intensive and grievance-sensitive services. |
| National reach with Bharat concentration | Gives partners access to rural and semi-urban customers through shared infrastructure. |
| Multi-service model | Reduces dependence on one transaction type and supports repeat engagement. |
| Master Franchise architecture | Adds district-level ownership, support and scalable field execution. |
| BharatEasy digital layer | Connects digital discovery with assisted completion and O2O support. |
| Vortex engineering and Perfo software | Adds local ATM manufacturing, monitoring intelligence, AMC and field-service capability. |
| Debt-free balance sheet | Provides resilience and flexibility for selective investment. |
| Governance and data trust | Supports regulated partner relationships and customer confidence. |
"Vakrangees competitive advantage is the combination of trusted physical access, integrated digital workflows, local entrepreneurship and technology-led operating assurance."
6. Business and Operating Performance
FY2026 operating performance should be assessed through two lenses: the scale of the access platform and the quality of activity generated from it. The Company maintained a broad national footprint while focusing on service activation, customer relevance, partner productivity, recurring income and operating discipline. The sections below explain each major service area and Vakrangees role in the value chain.
| Operating indicator | FY2026 | FY2025 | Movement |
| Active transacting Kendras | 23,087 | 22,986 | +101 |
| Postal codes served | 5,873 | 5,835 | +38 |
| Tier IV-VI network share |
84% |
83% |
+1 ppt |
| Master Franchisees | 535 | 546 | (11) |
| ATMs operated | 6,073 | 6,086 | (13) |
| Annual GTV | ?53,791.2 crore | ?54,258.5 crore | (1.0)% |
| Annual transactions | 11.6 crore | 12.6 crore | Lower volume; higher earnings quality |
| Vortex ATMs shipped | 1,679 | 1,651 | +28 |
| Consolidated employees | 601 | 555 | +46 |
Vakrangee maintained a broad national footprint while directing growth towards the districts and postal codes where formal services are hardest to reach.
6.1 Kendra Network and Master Franchisee Architecture
The Company closed FY2026 with 23,087 active transacting Kendras. The limited net addition should be read alongside the strategic focus on activation, service depth and productivity. A Kendra is a local interface where customers can discover services, receive product explanation, complete KYC or documentation, transact and obtain post-service support. Its value increases when multiple services are active and customers return for repeat needs.
There were 535 district-level Master Franchisees at year end. Master Franchisees provide local onboarding, field support, issue resolution, quality monitoring and new-franchisee acquisition. As the model matures, the emphasis is on transparent performance standards, compliance, service availability and franchisee economics. Decentralisation creates scalability only when central data and local accountability work together.
Image: Vakrangee Kendra Master Franchisee team
Decentralisation creates scalability only when central data and local accountability work together. Distributed execution is a design discipline, not a delegation of responsibility.
6.2 Banking and Financial Inclusion
BFSI contributed approximately 49.0% of revenue from operations and remained the largest revenue pool. The service portfolio includes assisted banking, cash-in/cash-out, account-related services, deposits, remittances, social-security schemes, insurance, pension and other partner-approved financial journeys.
Vakrangees role is to provide customer discovery, local explanation, assisted onboarding, authentication, documentation and transaction support. Regulated banks and financial institutions retain product ownership, pricing, underwriting and final approval. The Companys value lies in lowering distribution friction and giving partners access to customers through a trusted local channel. The FY2026 direction was to deepen non-cash services and increase yield per Kendra rather than rely only on transaction volume.
6.3 Insurance and Pensions
During FY2026, the Company broadened its insurance partner ecosystem across life, health and general insurance, including relationships with Universal Sompo, Shriram General, SBI General, Bajaj General Insurance, Ageas Federal Life Insurance, IndiaFirst Life Insurance and Aditya Birla Health Insurance. These relationships extend the protection products that can be made available through assisted distribution.
Vakrangees role is to support product discovery, explanation, documentation, application, renewal and service coordination, while the insurer retains product, underwriting and claims responsibility. Responsible sales are essential. Suitability, clear disclosure, premium commitments, exclusions, nomination and grievance channels must be explained accurately to protect customer trust and partner reputation.
6.4 Lending and Credit Enablement
Lending enablement allows the platform to connect eligible customers and small businesses with regulated lenders. The Company can support consent-led lead generation, document facilitation, application status, collections and NPA-recovery support under partner arrangements. Vakrangee does not need to assume balance-sheet credit risk to participate in this value pool.
The principal value drivers are lead quality, conversion, documentation accuracy, customer transparency and disciplined follow-up. The safeguards are equally important: lending decisions remain with the lender, customer obligations must be explained clearly, data sharing must be consent-led and complaint ownership must be defined.
6.5 E-Governance and Assisted Citizen Services
Vakrangees historical experience in citizen-facing technology supports assisted access to approved e-governance and documentation services. Kendras can help customers navigate forms, identity requirements and digital processes. The role is facilitation and accurate execution; the relevant authority retains policy, eligibility and service ownership. These services reinforce local relevance and can bring citizens closer to formal systems.
6.6 E-commerce and Assisted Digital Services
Bharats digital commerce opportunity extends beyond self-service applications. Customers may require help with search, selection, digital payment, delivery coordination, returns and complaints. Kendras can act as an assisted interface while merchants and platform partners retain inventory and fulfilment responsibility. Vakrangees role is most attractive when it is partnered, technology-enabled and low in inventory exposure.
BharatEasy brings multiple categories under one digital interface and is designed to support O2O journeys. The platform can connect digital discovery with Kendra assistance, pay-at-store, pick-up, returns, courier handling and grievance support. Open-network and partner integrations can further broaden choice, subject to deployment readiness, customer adoption and measurable economics.
Image: Vakrangee Kendra interior with customers
6.7 Healthcare and Teleconsultation
Healthcare is a high-trust category where local assistance can improve access to service discovery and teleconsultation. A Kendra can support appointment scheduling, document upload and navigation, while clinical responsibility remains with qualified healthcare partners. Data privacy, informed consent, service quality and clear role boundaries are fundamental.
6.8 Utility Payments, Travel, Education, Agriculture and Courier Services
Utility payments and recharges provide frequent-use journeys that strengthen Kendra relevance. Travel services can support ticketing and bookings. Education and agriculture offerings can connect customers to partner-led content or products. Courier services can support dispatch, pick-up, returns and local handoff. Vakrangees role across these categories is to aggregate, assist and support rather than assume product or fulfilment risk.
The portfolio is reviewed through a platform-economics lens. Services that generate repeat visits, cross-sell, stronger partner relationships or attractive contribution per interaction are prioritised. Low-margin or operationally complex activities are evaluated carefully so that growth improves, rather than dilutes, service quality and cash generation.
6.9 ATM Operations
The Group operated 6,073 ATMs during FY2026, providing cash access and transaction infrastructure across a large distributed footprint. The network processed approximately 3.0 crore ATM transactions with ATM GTV of approximately Rs. 8,569 crore. The role of the ATM business is evolving from standalone cash infrastructure towards an integrated component of the Kendra and financial-access ecosystem.
Operating priorities include uptime, cash availability, reconciliation, transaction security, preventive maintenance and incident response. As cash and digital behaviour coexist, the ATM network remains relevant while the Group broadens non-cash BFSI and service-rich formats. The objective is to improve lifecycle economics rather than pursue deployment without regard to transaction density and service cost.
Vakrangee participates across ATM operation and technology supply
| Metric | Number of machines |
| ATMs operated | 6,073.0 |
| Vortex ATMs shipped in FY2026 | 1,679.0 |
6.10 Vortex Engineering: ATM Manufacturing and Technology Services
Vortex Engineering expands the Groups role from access-point operation to banking-infrastructure engineering. Vortex shipped 1,679 ATMs during FY2026, reported total income of Rs. 6,728.8 lakh and EBITDA of Rs. 127.1 lakh, compared with Rs. 10.9 lakh in FY2025. Its capabilities include conventional ATMs, Android ATMs, Mini ATMs, device backend units, Digital Banking Unit-related products, Perfo monitoring, analytics, incident management, implementation, integration, AMC and field support.
The ATM is evolving from standalone cash infrastructure towards an integrated component of the Kendra and financial-access ecosystem.
Figure 11: Vortex operating and technology progress
| Metric | Value |
| ATMs shipped | 1,679 |
| Total income | Rs. 6,728.8 lakh |
| EBITDA | Rs. 127.1 lakh |
| Product roadmap | Android / Mini ATM |
| Recurring potential | Perfo + AMC |
The strategic opportunity is to combine upfront product income with recurring software, AMC and service fees. Perfo provides multi-vendor monitoring and incident-management intelligence. It captures device status, prioritises incidents, routes them to the relevant team, tracks resolution and uses operating history to improve preventive maintenance and product design.
Vortex has built experience across India and selected international markets. International growth is evaluated through product-market fit, local certification, currency exposure, partner capability, after-sales response and supply-chain resilience. The map below reflects markets in which Vortex has established presence or experience and should be interpreted alongside current commercial and service arrangements.
FY2027 product priorities include multiple new Vortex products intended to change how customers interact with ATMs and bank branches. Android and Mini ATM formats, service-rich kiosks and integrated monitoring can move the terminal from a single-purpose cash device towards a broader banking-service interface. Execution will depend on reliability, certification, customer demand, service readiness and disciplined working capital.
Image: Vortex ATM in a shopping mall
Figure 12: Vortex Engineering global presence and experience
Vortex Engineering Global Presence
| Region | Countries |
| MEA, Europe & Americas Regions | Botswana, Burkina Faso, Caribbean, Djibouti, DR Congo, Ghana, Ivory Coast, Kenya, Mauritania, Mozambique, Nigeria, Seychelles, South Africa, Tanzania, Uganda, Zambia |
| APAC Region | India, Bangladesh, Nepal |
6.11 BharatEasy and the Digital Extension of the Kendra
BharatEasy is positioned as the digital front end of the phygital platform rather than as a standalone application. It can support service discovery, prompts, transaction initiation and continuity between self-service and assisted journeys. The Kendra provides explanation, documentation, cash handling, pick-up, returns and complaint support where needed.
The commercial test for BharatEasy is adoption and monetisation. Investment should translate into higher transactions, better service mix, lower acquisition or support cost, stronger data visibility and improved partner outcomes. Customer consent, privacy, cyber security and transparent communication remain central as digital engagement deepens.
6.12 Technology, Data and Operating Assurance
Vakrangees technology and governance systems link customers, Kendras, Master Franchisees, partners, ATMs and support teams. VKMS, Perfo, workflow integrations, ticketing, dashboards and field-support systems provide visibility across a distributed network. These capabilities support service activation, SLA monitoring, incident response, settlement, customer support and compliance.
The Company reported zero identified data breaches and zero customer-privacy complaints during FY2026. This is a positive outcome, but not a reason for complacency. The threat environment continues to evolve, requiring layered security, encryption, access control, vendor oversight, testing, training, incident response and business continuity.
Image: Vortex technician servicing an ATM
2026 Operating Outcomes
"Operating performance is increasingly defined by service depth, reliability, recurring income and cash conversion—not outlet count alone."
Value is not created by any single capital. It emerges when financial discipline, physical infrastructure, people, technology, trust and natural resources are used together.
Figure 13: The six-capital value flywheel
Diagram showing the six capitals: Financial Capital, Manufactured Capital, Human Capital, Intellectual Capital, Social & Relationship Capital, Natural Capital, with a central "Trusted Access Platform" and the cycle: Discover ? Assist ? Transact ? Fulfil ? Support.
7. Performance Through the Six Capitals
Vakrangees value creation depends on the coordinated use of six capitals. Financial capital funds and protects the platform. Manufactured capital provides physical and technology-enabled access infrastructure. Human capital converts systems into service. Intellectual capital connects data, platforms, process knowledge and banking-automation IP. Social and relationship capital sustains trust across customers, franchisees, partners and communities. Natural capital frames the resource efficiency and environmental resilience of operations.
| Capital | Key FY2026 inputs and outputs | Value created |
| Financial | Debt-free balance sheet; net worth Rs. 22,335.4 lakh; EBITDA Rs. 3,426.1 lakh; PAT Rs. 1,111.9 lakh; positive operating cash flow before tax. | Stronger earnings quality, resilience and capacity to reinvest responsibly. |
| Manufactured | 23,087 Kendras; 6,073 ATMs; 535 Master Franchisee districts; Vortex manufacturing and service infrastructure. | Wider access, productive infrastructure, partner reach and franchisee opportunity. |
| Human | 601 employees; 168 hires; 1,591.5 training hours; franchisees, Master Franchisees and field teams. | Higher capability, entrepreneurship, service quality and execution resilience. |
| Intellectual | BharatEasy, Perfo, VKMS, partner integrations, data systems, cyber controls and ATM engineering. | Scalability, operating visibility, recurring technology potential and customer trust. |
| Social & Relationship | Customers, partners, franchisees, regulators and communities; 2,950 women-owned Kendras. | Financial and digital inclusion, stakeholder relationships and shared prosperity. |
| Natural | 95.2% renewable electricity; 40,102 kWh solar; paper-light service delivery and environmental systems. | Lower operating footprint, resource conservation and environmental resilience. |
7.1 Financial Capital
FY2026 demonstrated the value of financial discipline. Total income remained broadly stable while EBITDA, PBT, PAT and cash profit grew substantially. Cash flow from operations before tax turned positive, net worth increased and the Group remained debt-free. Financial capital is being allocated towards platform reliability, Vortex, technology, people, product capability and higher-value service opportunities, with an emphasis on return, cash conversion and balance-sheet resilience.
7.2 Manufactured Capital
Manufactured capital comprises Kendras, ATMs, outlet formats, service infrastructure, Master Franchisee support architecture and Vortex manufacturing capability. During FY2026, the emphasis moved from footprint alone towards productive use of infrastructure. Kendras provide trusted assisted access; ATMs provide financial infrastructure; BharatEasy supports O2O journeys; and Vortex adds hardware, software and field service.
7.3 Human Capital
The Group employed 601 people on a consolidated basis and hired 168 employees during the year. Training totalled 1,591.5 hours across induction, POSH, safety, Trackolap, Excel, mental health, provident-fund and Tally modules. The human-capital ecosystem also includes franchisees, Master Franchisees and field teams. Capability priorities include responsible sales, product knowledge, documentation accuracy, cyber awareness, leadership depth and customer support.
The FY2026 employee survey recorded 219 responses from a sample of 232, a 94% completion rate. Positive signals included understanding contribution to goals, pride in the workplace and clear managerial expectations. Opportunities remain to deepen employee voice, participation and career visibility.
7.4 Intellectual Capital
Human capital is what converts systems into service. Infrastructure creates the possibility of access; people make it dependable.
Intellectual capital connects BharatEasy, Perfo, VKMS, partner APIs, data systems, process knowledge and Vortex engineering. BharatEasy supports digital discovery and assisted conversion. Perfo provides monitoring and incident intelligence. VKMS and workflow systems support franchisee lifecycle and field execution. Cyber security, privacy, business continuity and partner integration protect the trust on which the platform depends.
7.5 Social and Relationship Capital
The Companys social and relationship capital is expressed through customer trust, partner relationships, local entrepreneurship, regulatory engagement and community relevance. Approximately 84% of the network is located in Tier IV-VI markets, 5,425 Kendras serve LWE, tribal and aspirational districts, and 2,950 Kendras are owned by women entrepreneurs. The platform creates value when customers receive reliable service, franchisees earn sustainably and partners reach Bharat through compliant execution.
7.6 Natural Capital
601
— Employees - Corporate, technology and field teamsThe Company reported 363,545 kWh of electricity consumption, of which 95.2% was sourced from green-grid electricity and on-site solar. Solar generation was 40,102 kWh. Company-owned cars recorded zero petrol or diesel consumption, while Scope 1 and Scope 2 emissions were 0.03 tCO2e and 13.62 tCO2e respectively. Paper-light banking, ATM and annual-report initiatives avoided 244.57 million A4 sheets and 1,223.85 tonnes of paper.
Water use and waste remain areas for discipline. Corporate-office water consumption was 2,429 cubic metres and reported dry and wet waste totalled 16,865 kg. Environmental priorities include metering, behavioural controls, renewable sourcing, efficient equipment, responsible procurement, e-waste management and a progressively wider consolidated reporting boundary.
Image: Indian street scene with market stalls
95.2% renewable electricity, 40,102 kWh of solar generation and paper-light delivery that avoided 1,223.85 tonnes of paper reflect a deliberate choice: an operating model built on shared local infrastructure carries a lighter footprint by design.
8. Financial Performance
The following discussion is based on the consolidated audited financial statements for FY2025-26. The consolidated lens captures the contribution of subsidiaries, including Vortex Engineering, and reflects the economics of the Group platform.
| Particulars (Rs. lakh) | FY2026 | FY2025 | Change |
| Revenue from operations | 25,476.5 | 25,500.7 | (0.1)% |
| Total income | 26,136.2 | 25,935.1 | 0.8% |
| EBITDA | 3,426.1 | 2,793.3 | 22.7% |
| EBITDA margin on revenue from operations | 13.4% | 11.0% | +249 bps |
| EBITDA margin on total income | 13.1% | 10.8% | +233 bps |
| Profit before tax | 1,518.8 | 940.9 | 61.4% |
| Profit after tax | 1,111.9 | 620.0 | 79.3% |
| PAT margin on revenue from operations | 4.4% | 2.4% |
+190 bps |
| Cash profit | 2,872.0 | 2,289.7 | 25.4% |
| Basic EPS | Rs. 0.10 | Rs. 0.06 | 66.7% |
Figure 14: FY2026 consolidated financial performance
| Metric | Rs. lakh |
| EBITDA | 3,426.1 |
| PBT | 1,518.8 |
| PAT | 1,111.9 |
| Cash profit | 2,072.0 |
Income and Revenue Mix
Revenue from operations remained broadly stable at Rs. 25,476.5 lakh. This stability masked a deliberate movement in mix, with greater emphasis on BFSI, ATM products and services, software, maintenance and other higher-yield activities. The platform maintained economic scale while reducing dependence on low-margin volume.
Profitability and Operating Leverage
EBITDA increased by 22.7% to Rs. 3,426.1 lakh. EBITDA margin was 13.4% of revenue from operations and 13.1% of total income. Profit before tax increased by 61.4%, while PAT increased by 79.3%. The improvement reflects business mix, operating discipline and better conversion of the revenue base into shareholder earnings.
Improved earnings reflect business mix, operating discipline and better conversion of an existing revenue base into shareholder returns.
Ratios describe resilience, not revenue. Debt-equity at zero, current ratio at 1.81x and return on net worth at 4.98% together show a business converting activity into earnings without external funding.
Cash Flow, Liquidity and Balance Sheet
Cash flow from operations before tax turned positive at Rs. 63.7 crore compared with a deficit of Rs. 25.1 crore in FY2025. This reversal was one of the years most important financial developments because it validates the quality of earnings and improves internal funding capacity. The Group remained debt-free. Net worth increased to Rs. 22,335.4 lakh from Rs. 21,166.9 lakh, and cash and cash equivalents stood at Rs. 5,693.4 lakh at year end.
Working-capital management remains a priority as ATM product and service activity expands. Inventory, receivables, vendor terms, milestone billing and project execution must be managed together so that growth does not weaken cash conversion. Technology-led visibility, disciplined contracting and careful inventory planning are central to financial resilience.
| Ratio | FY2026 | Management interpretation |
| Debt-equity | 0.00 | The Group remained debt-free. |
| Current ratio | 1.81x | Adequate consolidated short-term liquidity. |
| Return on net worth | 4.98% | Improved with stronger profit after tax. |
| Debtors turnover | 12.77x | Reflects collection efficiency, subject to consistent methodology. |
| Inventory turnover | 16.16x | Important as ATM hardware activity scales. |
Sources: Audited consolidated financial statements; Vakrangee FY2026 results update; Financial Capital chapter. Statutory ratio definitions prevail.
Capital Allocation and Funding Priorities
Capital allocation remains guided by four principles: protect the debt-free balance sheet, invest in capabilities that improve platform productivity, fund working capital in line with contracted cash flows, and avoid expansion that does not meet return and governance thresholds. Priority areas include platform reliability, cyber and data controls, Vortex product development, service integration and field capability.
The asset-light franchise architecture limits the need for branch-style fixed investment, but manufacturing and implementation activity can require inventory, vendor advances and receivable funding. Management therefore evaluates growth opportunities through cash conversion, milestone visibility, contract quality and downside resilience, not revenue alone.
Financial Outlook
The near-term financial objective is to sustain margin quality and positive operating cash flow while increasing recurring and higher-yield income. Progress will be measured through service mix, yield per Kendra, software and AMC contribution, Vortex profitability, receivable and inventory efficiency, and the preservation of balance-sheet flexibility.
9. Business Opportunities and Outlook
Vakrangees opportunity is not defined only by the number of outlets it can add. It is defined by how effectively the platform converts trust, reach, technology, partner relationships and process knowledge into repeatable, higher-margin service journeys. The opportunity areas below are interdependent: better capability improves service activation; better service improves customer trust and partner outcomes; stronger outcomes create recurring revenue and reinvestment capacity.
| Opportunity | Value-creation pathway | Execution requirement |
| Higher yield per Kendra | Activate more relevant BFSI, insurance, lending, bill-pay and digital services; increase repeat usage and wallet share. | Service availability, local capability, partner economics and customer trust. |
| Recurring ATM and software income | Grow AMC, monitoring, software, implementation and lifecycle-management revenue around the Vortex installed base. | Reliability, uptime, field support, product quality and disciplined contracts. |
| Assisted financial inclusion | Convert account access into usage across deposits, protection, pensions, responsible credit and collections. | Customer suitability, consent, training and regulatory compliance. |
| BharatEasy O2O journeys | Connect digital discovery with assisted completion, fulfilment and personalised engagement. | Adoption, interface quality, data governance and measurable monetisation. |
| Partner distribution platform | Give institutions a transparent, compliant and scalable route to Bharat. | SLA performance, reporting, secure integration and consistent service. |
| Local manufacturing and exports | Use Vortex engineering to address replacement, localisation and selected overseas demand. | Supply-chain resilience, certification, currency-risk management and after-sales capability. |
| Entrepreneurial ecosystem | Improve franchisee earnings, capability and local ownership. | Economics, training, monitoring and responsive support. |
Near-to Medium-Term Priorities
Outlook
Indias structural drivers remain favourable: growth, formalisation, financial inclusion, digital public infrastructure, rural connectivity and institutional demand for efficient distribution. Vakrangee enters FY2027 with a broad access network, improved profitability, positive operating cash generation, a debt-free balance sheet and expanded ATM technology capability.
Vakrangee enters FY2027 with a broad access network, improved profitability, positive operating cash generation, a debt-free balance sheet and expanded ATM technology capability.
10. Business Risks and Risk Management
Risk-Management Philosophy and Governance
Risk is the effect of uncertainty on objectives. It is inherent in every internal and external business activity and must be managed continuously rather than treated as a periodic compliance exercise. Vakrangees risk-management framework is designed to protect customers and assets, preserve business continuity, support regulatory compliance and convert uncertainty into informed strategic decisions.
The Board has adopted a Risk Management Policy in accordance with the Companies Act, 2013 and SEBI Listing Regulations. The Board, Risk Management Committee, Audit Committee, ESG Committee and executive management provide oversight across strategic, financial, operational, technology, cyber, regulatory and sustainability risks. Business and functional leaders are accountable for risk ownership, control implementation and timely escalation.
Figure 15: Risk governance and operating assurance
| Governance layer | Principal responsibilities |
| Board of Directors | Approve risk policy and appetite; oversee major exposures; review emerging risks, capital allocation and business continuity. |
| Risk Management Committee | Review the risk universe, mitigation plans, key indicators, incidents and adequacy of the framework. |
| Audit Committee | Oversee internal financial controls, audit findings, fraud risk, financial reporting and remediation. |
| Board ESG Committee | Review environmental, social and governance risks, performance, disclosures and emerging stakeholder expectations. |
| Executive management | Translate risk appetite into operating priorities, accountability, resources and escalation. |
| Business and functional owners | Identify, assess, treat, monitor and report risks within their activities. |
| Internal audit and assurance | Provide independent testing, observations and follow-up of corrective actions. |
The purpose of a risk framework is not to eliminate uncertainty. It is to convert uncertainty into informed strategic decisions.
Risk Assessment and Treatment Process
Principal risk heat map - management assessment
Heat map chart with axes: Likelihood (1-5) and Impact (1-5). Risks plotted: R1 Regulatory, R2 Cyber/privacy, R3 Partner dependency, R4, R5, R7, R8, R9, R10, R11, R14.
Image: Vakrangee Kendra Bank of Baroda customer service point
Figure 16: Principal risk heat map - management assessment
Principal risks, potential effects and management response
| Principal risk | Potential effect | Management response | Linked capitals |
| Regulatory and policy | Changes affecting BCs, payments, insurance distribution, WLAs, data, outsourcing may alter permissible activities or economics. | Regulatory monitoring, legal review, partner alignment, SOP updates, licence and certification discipline, Board oversight. | Financial, Social, Intellectual |
| Cybersecurity, privacy and fraud | Attack, data loss, identity fraud or system disruption could harm customers, partners and reputation. | Layered security, encryption, access control, monitoring, incident response, audits, vendor controls and training. | Intellectual, Social, Financial |
| Partner concentration and dependency | Partner strategy, pricing, integration, product availability or fulfilment may affect volumes and revenue. | Diversified partner base, commercial review, SLAs, performance dashboards and alternate service pools. | Social, Financial |
| Franchisee conduct and service quality | Distributed execution may create compliance, mis-selling, customer-experience or brand risk. | Onboarding standards, training, monitoring, audits, ticketing, grievance handling and Master Franchisee accountability. | Human, Social, Financial |
| Customer protection and responsible sales | Complex products could be unsuitable or inadequately explained. | Product governance, need-based selling, disclosure, documentation accuracy, partner certification and complaint escalation. | Social, Human, Financial |
| ATM product and supply chain | Component shortages, certification delays, quality defects, warranty claims or cost inflation could affect delivery and margins. | Vendor diversification, testing, quality assurance, inventory planning, contractual protection and lifecycle monitoring. | Manufactured, Financial, Intellectual |
| Working capital and cash conversion | Inventory or receivable growth may absorb cash as product and implementation activity scales. | Milestone billing, collection discipline, credit review, inventory analytics, vendor terms and cash-flow governance. | Financial, Manufactured |
Principal risk
| Principal risk | Potential effect | Management response | Linked capitals |
| Technology obsolescence | Rapid change could reduce the relevance of devices, platforms or customer journeys. | Modular architecture, product roadmap, upgrades, R&D, partner feedback and selective investment. | Intellectual, Manufactured, Financial |
| Cash and physical security | ATMs and cash-handling points are exposed to theft, vandalism, skimming and operational loss. | Insurance, surveillance, reconciliation, custody controls, anti-skimming, preventive maintenance and escalation. | Manufactured, Social, Financial |
| Business continuity and disaster | Outages, extreme weather or third-party disruption could interrupt critical services. | BCP and DR, redundancy, backups, alternate connectivity, crisis teams, testing and recovery procedures. | All capitals |
Image: Vakrangee Kendra interior with customers
| Principal risk | Potential effect | Management response | Linked capitals |
| People and capability | Growth across technology, sales, field service and compliance may strain specialist capacity. | Targeted hiring, training, succession, performance management, employee engagement and retention initiatives. | Human, Intellectual |
| Financial reporting and fraud | Misstatement, unauthorised activity or control override could affect financial integrity. | Segregation of duties, maker-checker, reconciliations, audit, whistle-blower mechanisms, access controls and oversight. | Financial, Human, Social |
| ESG and climate | Energy, water, waste, extreme weather and stakeholder expectations may affect operations and licence to operate. | Environmental systems, renewable sourcing, efficiency, responsible procurement, e-waste management, BCP and disclosure. | Natural, Manufactured, Social |
| Export, currency and geopolitical | Vortex exports may face currency volatility, certification, sanctions, logistics or local-service challenges. | Market selection, payment and currency controls, local partners, contract discipline, compliance and supply-chain diversification. | Financial, Manufactured, Social |
| Legal and compliance | Non-compliance with contracts, labour, tax, corporate or sectoral laws may create liability. | Legal review, compliance calendar, policy ownership, training, audits and Board reporting. | All capitals |
Energy, water, waste and stakeholder expectations affect not only operations but the licence to operate. Environmental systems, responsible procurement and transparent disclosure are therefore commercial safeguards as much as ethical ones.
Risk Monitoring and Operating Assurance
Risk monitoring combines central dashboards with local execution. Network logs, device alerts, transaction exceptions, reconciliations, customer complaints, service-level performance, audit findings, vendor exposure, receivable ageing, inventory, employee turnover, training and environmental indicators form part of the operating information available to management.
Risk and control self-assessments across business and support functions. Periodic internal, statutory, information-security and compliance audits. Cyber monitoring, vulnerability management, access reviews and incident escalation. Perfo and ATM monitoring for device status, alerts, tickets and service performance. Franchisee and Master Franchisee monitoring, field visits and training. Business-continuity and disaster-recovery testing for critical systems and processes. Board and committee reporting on material incidents, trends and mitigation progress.
Risk Priorities for FY2027
The framework will continue to evolve from periodic compliance towards more real-time operating assurance. Priorities include clearer risk-appetite metrics, consolidated incident data, early-warning indicators, supplier and partner scoring, cyber and business-continuity exercises, product-quality dashboards, working-capital triggers, responsible-sales controls and Board visibility over emerging technology. Zero reported data breaches in FY2026 is a positive outcome, but it should be treated as a reason to sustain vigilance rather than evidence that risk has disappeared.
Zero reported data breaches in FY2026 is a positive outcome. It should be treated as a reason to sustain vigilance rather than as evidence that the risk has disappeared.
11. Internal Financial Controls
The Company has established internal financial controls commensurate with the size, nature and complexity of its operations. These controls are designed to provide reasonable assurance regarding the orderly and efficient conduct of business, safeguarding of assets, prevention and detection of fraud and error, accuracy and completeness of accounting records, timely preparation of reliable financial information and compliance with applicable laws and policies.
The control environment combines Board and Audit Committee oversight, delegated authority, documented policies, reconciliations, system access controls, maker-checker mechanisms, internal audit, statutory audit, compliance monitoring and management review. As the Groups mix expands into ATM manufacturing, software, AMC, implementation, export and field service, controls over procurement, inventory, project milestones, warranty, revenue recognition, receivables and related-party governance become increasingly important.
| Control domain | Key controls and FY2026 relevance |
| Revenue and partner settlement | Contract review, service validation, transaction reconciliation, cut-off, revenue recognition and dispute management. |
| Procurement and inventory | Approved vendors, purchase controls, quality inspection, stock records, ageing, provisioning and physical verification. |
| Receivables and cash | Credit terms, milestone billing, ageing review, collection escalation, bank reconciliation and cash custody. |
| Technology and access | Role-based access, maker-checker, change management, logs, backup, incident response and periodic review. |
| Financial reporting | Close calendar, account reconciliation, management review, statutory compliance and audit trail. |
| Fraud and ethics | Code of conduct, whistle-blower channels, anti-bribery controls, investigation and disciplinary processes. |
| Projects, warranty and AMC | Milestone evidence, commissioning, service obligations, warranty tracking, spares and contract profitability. |
| Related parties and governance | Approval matrices, disclosure, arms-length review and committee oversight. |
Management evaluates the design and operating effectiveness of controls and addresses observations through defined owners and timelines. No control system can provide absolute assurance; effectiveness depends on disciplined execution, appropriate segregation of duties, technology resilience and timely remediation.
Control Priorities for FY2027
"A stronger platform requires controls that are embedded in transactions, systems and ownership—not applied after the event."
12. Human Resources and Organisational Capability
Vakrangees human-capital model extends beyond employees. It includes leadership, corporate and field teams, Master Franchisees, franchisees, Kendra operators, technology specialists, service personnel and partner-facing teams. Together, they translate a central platform into local execution. The consolidated workforce increased to 601 employees at 31st March 2026 from 555 a year earlier. The Company hired 168 employees during FY2026, compared with 85 in FY2025, while 131 employees resigned compared with 73 in the previous year.
The rise in hiring reflects investment in capability as the Group expands technology, Vortex, BFSI, compliance and field-service requirements. Managements priority is to convert recruitment into durable capability through role clarity, induction, technical learning, leadership development, performance management and employee engagement. Total recorded training hours were 1,591.5 during the year.
New hires increased with capability investment
| Year | Employees |
| FY2024 | 24 |
| FY2025 | 85 |
| FY2026 | 168 |
A central platform becomes a local service only through people. Employees, franchisees, Master Franchisees and field teams together translate capability into execution.
Culture, Capability and Engagement Priorities
The FY2026 Employee Engagement Survey recorded strong alignment: 98% of respondents understood how their work contributes to goals, 97% viewed Vakrangee as a good workplace and 96% reported clear managerial expectations. The survey also identified opportunities to deepen open expression, participation in decisions and career visibility. These insights are being used to refine manager capability, communication and engagement practices.
13. ESG, Stakeholder Value and Responsible Growth
Vakrangees ESG proposition is closely linked to its core business: extending essential services, financial access and digital capability through local entrepreneurs and shared infrastructure. ESG is therefore not a parallel programme. It is embedded in customer trust, franchisee economics, cyber and privacy controls, responsible selling, environmental efficiency, employee capability and Board oversight.
FY2026 ESG and stakeholder value indicators
| Indicator | Value | Category |
| Kendras | 23,087 | Inclusive access |
| Women-owned Kendras | 2,950 | Entrepreneurship |
| Renewable electricity | 95.2% | Cleaner operations |
| Data breaches | 0 | Digital trust |
| Training hours | 1,591.5 | Capability |
Environmental
The reported electricity mix was 95.2% renewable, comprising green-grid power and on-site solar. Solar generation was 40,102 kWh, Company-owned cars recorded zero petrol or diesel consumption, Scope 1 emissions were 0.03 tCO2e and Scope 2 emissions were 13.62 tCO2e. Digital and paper-light banking, ATM and annual-report initiatives avoided an estimated 244.57 million A4 sheets and 1,223.85 tonnes of paper.
The environmental agenda also recognises areas for continued discipline. Corporate-office water consumption increased to 2,429 cubic metres and reported dry and wet waste totalled 16,865 kg. Priorities include stronger metering, renewable sourcing, efficient devices, waste segregation, authorised e-waste handling, supplier assessment and expansion of reporting coverage as Vortexs manufacturing footprint is more fully integrated.
Image: Vakrangee Kendra in a rural/tribal area
Social
The Companys principal social contribution is assisted access. The network serves communities across 32 States and Union Territories, with approximately 84% of Kendras in Tier IV-VI markets and 5,425 Kendras in LWE-affected, tribal and aspirational districts. Local franchisees create entrepreneurship and employment, while 2,950 women-owned Kendras support womens economic participation.
Customer protection is central to the social agenda. Complex financial products require suitability, explanation, documentation and effective grievance handling. Employees and franchisees are therefore expected to follow responsible-sales principles and partner-approved processes. The Company recorded zero customer-privacy complaints, zero identified data leaks or losses and nil complaints relating to unethical or unlawful conduct during FY2026.
Governance
Governance is anchored in the Board, Audit Committee, Risk Management Committee, Stakeholder Relationship Committee, CSR Committee, Board ESG Committee, Anti-Fraud Committee, POSH Committee and Information Security Committee. Policies, audits, certifications, disclosure, internal controls and whistle-blower mechanisms support accountability. As the platform becomes more data-rich and product-diverse, partner governance, privacy-by-design, cyber resilience and transparent role allocation become increasingly important.
Stakeholder Value
| Stakeholder | Principal interest | FY2026 response |
| Customers and citizens | Reliable access, security, transparent products and grievance resolution. | Phygital assistance, broader service mix, customer support and data protection. |
| Franchisees and Master Franchisees | Earning potential, service availability, training and operating support. | Higher-value services, field enablement, monitoring and district-level support. |
| Banks, insurers, lenders and service partners | Reach, compliant execution, service quality and transparent data. | Partner integrations, SLA monitoring, assisted acquisition and technology infrastructure. |
| Employees | Career growth, capability, engagement, safety and inclusion. | Hiring, training, engagement survey, benefits and ethical-workplace programmes. |
| Regulators and government | Compliance, consumer protection, inclusion and responsible conduct. | Statutory reporting, audits, governance and policy-aligned service delivery. |
| Shareholders and investors | Profitability, cash flow, resilience, governance and long-term value. | Margin expansion, positive operating cash flow, debt-free balance sheet and transparent disclosure. |
| Communities | Access, local entrepreneurship, convenience and participation. | Tier IV-VI reach, priority-district presence, women-owned Kendras and assisted inclusion. |
"Vakrangees ESG priorities are inseparable from its business model: trusted access, responsible technology, local entrepreneurship, disciplined growth and transparent governance."
ESG Governance and Measurement Priorities
The next phase of ESG management will focus on more consistent consolidated measurement, stronger ownership and clearer linkage to operating decisions. The Board ESG Committee provides oversight, while business and functional teams are responsible for data, controls and implementation.
ESG is not a parallel programme. It is embedded in customer trust, franchisee economics, cyber and privacy controls, responsible selling, employee capability and Board oversight.
14. Bridging Indias Socio-Economic Divide
Vakrangees contribution to socio-economic inclusion is created through a practical operating model rather than a stand-alone social programme. The Company brings financial, digital and essential services closer to customers through Kendras, ATMs, BharatEasy, partners and local entrepreneurs. This reduces distance and transaction friction, supports participation in formal systems and creates economic opportunity within the communities served.
| Impact pathway | FY2026 articulation |
| Financial inclusion | Assisted banking, cash access, deposits, insurance, pension, lending enablement and social-security journeys through trusted local points. |
| Digital inclusion | BharatEasy and Kendra assistance help customers navigate digital discovery, authentication, documentation, payment and support. |
| Local entrepreneurship | Franchisees and Master Franchisees create locally owned service businesses and extend the platform without a branch-heavy cost structure. |
| Womens participation | 2,950 women-owned Kendras provide a meaningful base of women entrepreneurs in last-mile service delivery. |
| Priority geographies | 5,425 Kendras in LWE-affected, tribal and aspirational districts support access where formal infrastructure can be limited. |
| Customer convenience | Multiple services under one access model reduce travel, time and dependence on fragmented providers. |
| Partner reach | Banks, insurers, lenders and service providers gain a shared route to Bharat through distributed infrastructure. |
| Responsible growth | Higher-yield services, recurring technology income and cash discipline strengthen the long-term viability of the inclusion platform. |
The FY2026 emphasis is on deepening the quality of inclusion. Access is the starting point, not the end point. The objective is to help customers use formal services confidently, to enable franchisees to earn sustainably, and to give partners a reliable, compliant and transparent distribution channel. This is how social relevance and commercial resilience reinforce each other.
Key Inclusion Metrics:
| Metric | Value |
| Kendras in Tier IV-VI | 84% |
| Priority-district Kendras | 5,425 |
| Women-owned Kendras | 2,950 |
| Master Franchisee districts | 535 |
| States and UTs | 32 |
15. Cautionary Statement
Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or outlook may be "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed or implied due to economic conditions, demand and supply factors, changes in government policy and regulation, partner decisions, competitive intensity, technology change, cybersecurity events, supply-chain disruption, product quality, working-capital requirements, input costs, foreign-exchange movements, geopolitical developments, execution risks and other factors beyond the Companys control.
Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not undertake to update such statements except as required by law. Industry data and external projections have been sourced from publicly available institutional publications considered reliable; such information has not necessarily been independently verified by the Company.
Sources: SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015; audited financial statements; Company source documents; IMF, MoSPI, RBI, NPCI, Department of Financial Services and other institutional publications cited in the relevant sections.
"Vakrangee bridges distance not only by placing services closer to customers, but by making those services understandable, assisted and trustworthy."
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