Manipal Payment Profit Jumps 129% as Exports Take Off
A 48% revenue surge, powered by a tripling of emerging business, delivered sharp profit growth as the company's international footprint widened.
Manipal Payment & Identity Solutions started FY27 with profit more than doubling. Revenue grew 48%, driven by a 2.3x jump in its emerging business segment and a sharp rise in international contribution.
Manipal Payment & Identity Solutions entered the new fiscal year with its growth engines firing. The company, a leader in payment cards and secure identity solutions, reported a profit more than double last year’s level, powered by a decisive shift in its business mix. Revenue jumped 48%, but the real story was a near-tripling of its emerging portfolio as exports gained serious traction.
The numbers show a business hitting its stride. Revenue for Q1 FY27 stood at ₹419 crore, up from ₹283.5 crore a year ago. Profit soared 129% to ₹77.7 crore. This translated to a net profit margin of 18.5%, a sharp 650 basis-point expansion from the 12% margin in Q1 FY26.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin
| Metric | CurrentQ1 FY27 | Same quarter LYQ1 FY26 |
|---|---|---|
| Revenue (₹ Cr) | 418.96YoY +48% | 283.52 |
| Profit (₹ Cr) | 77.7YoY +129% | 33.92 |
| Net Profit Margin | 18.5%YoY +54% | 12.0% |
Why margins expanded alongside growth
The profit growth was not a one-off fluke. Reports from CNBC-TV18 and ScanX confirm there were no exceptional items in the quarter. The margin expansion came from two sustainable drivers: operating leverage and much lower finance costs. As revenue scaled up 48%, costs did not rise as quickly, improving efficiency.
A sharp reduction in finance costs, detailed by ScanX, provided a significant boost to the bottom line. This allowed profit to grow more than twice as fast as revenue.
The export and premium mix takes center stage
The revenue surge was far from uniform. According to the company’s breakdown reported by ScanX, the ‘Core’ domestic business grew a steady 22% to ₹262 crore. The ‘Emerging’ portfolio, however, exploded.
This segment—comprising exports, metal cards, tax stamps, and RFID/IoT solutions—grew 2.3 times year-on-year to ₹157 crore. Its share of total revenue leapt from 24% to 37%. A key piece was international business, whose contribution to revenue rocketed to 15.3% from just 3.9% a year ago.
CEO K Girish Kini told CNBC-TV18 the company is focused on expanding its international presence and premium offerings. The operational Nigeria bureau and new IoT contracts, noted in a Multibagg.ai report, are tangible results of this strategy.
The costs of building for the future
This growth is not without its near-term pressures. Management commentary cited by Multibagg.ai and ScanX indicates that year-on-year EBITDA margins saw a slight moderation. This was due to pre-operative and seeding costs for new geographies and initiatives, which the company absorbed to the tune of ₹7.7 crore.
The outlook hinges on these investments paying off. The company expects these costs to be absorbed more efficiently as revenue from the new initiatives ramps up. The current quarter proves the model can deliver strong profit conversion even while funding future growth.
Key Points
- Consolidated net profit more than doubled (up 129%) year-on-year to ₹77.7 crore on a 48% rise in revenue to ₹419 crore.
- Profitability improved sharply, with net profit margin expanding by 650 basis points to 18.5%, aided by operating leverage and lower finance costs.
- Growth was led by the Emerging business segment (exports, metal cards, IoT), which grew 2.3x YoY and now contributes 37% of revenue, up from 24%.
- International revenue contribution jumped to 15.3% from 3.9% a year ago, marking a strategic shift in geographic mix.
- The company absorbed seeding costs for new initiatives, indicating continued investment for future growth alongside strong current performance.
Hexa Perspective
Manipal Payment’s quarter demonstrates a successful pivot. The company is rapidly reducing its dependence on the domestic card market by building high-growth, premium export lines. The 650-bps margin expansion shows this shift is financially rewarding, not just top-line filling.
The path ahead involves scaling these new engines. The slight margin pressure from investment costs is a trade-off for future market position. Success will depend on maintaining this premium mix and integrating international operations smoothly, turning today's seeding costs into tomorrow's core profits.
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