Vakrangee Q2 Results: Firm posts 5-fold increase in profit after tax to ₹3.02 crore

Vakrangee Q2 Results: Vakrangee Limited, a last-mile distribution platform, has reported a remarkable five-fold increase in its Profit After Tax (PAT) for the second quarter of the fiscal year 2025-26.

According to an exchange filing, Vakrangee's total income for Q2 FY2025-26 stood at ₹7,057.9 lakhs, marking a 6.8% increase on a year-on-year basis. The company's PAT surged by an impressive 412.5% to ₹302.9 lakhs, reflecting its strong operational efficiency and effective cost management strategies.

Additionally, the company's cash profit, which includes PAT and depreciation, rose by 53.7% year-on-year to ₹748.2 lakhs.

The company reported a quarterly gross transaction value (GTV) of ₹12,928.7 crores and a quarterly number of transactions exceeding 3.1 crores.

Subsidiary Earnings

The company's subsidiary, Vortex Engineering, also delivered a strong performance during the quarter. Vortex Engineering recorded a 56.6% increase in revenue on a year-on-year basis, demonstrating its growing contribution to Vakrangee's overall financial results.

The subsidiary shipped 562 ATMs in Q2 FY2025-26, reflecting a robust 43% year-on-year growth. Furthermore, Vortex Engineering's EBITDA increased by approximately 12.5 times to ₹208.1 lakhs.

Outlook Ahead

Vakrangee's strategic focus on high-margin businesses and the phasing out of low-margin operations have been pivotal in enhancing its profitability.

The company is concentrating on non-cash-based banking offerings such as account opening, loan products, insurance services, fixed deposits, mutual funds, and NPA recovery. These initiatives are aimed at driving deeper financial inclusion and providing value-added services to its customers across rural, semi-urban, and urban markets.

Vakrangee said it expects profitability to continue, with a focus on delivering strong quarter-on-quarter growth.

Vakrangee, along with its subsidiary companies, is debt-free and maintains a robust balance sheet. This strong financial position enables us to confidently support our expansion plans and pursue sustained long-term growth, it added.

Disclaimer: This article was generated using AI tools and has undergone editorial review for clarity and coherence.