Protean eGov Technologies has been eliminated from the Government of India’s PAN 2.0 project, a significant blow for the company that previously expressed confidence in securing the mandate.
The Rs 1,440 crore initiative aimed at overhauling PAN/TAN services will now proceed without Protean’s participation. Brokerage firm Equirus has termed this development a material negative, noting that PAN-related services contribute approximately 50% of the company’s revenue.
Equirus expects the revenue stream from PAN services to collapse by 75–100% over the next 2–3 years, resulting in a projected 35% decline in overall revenue by FY27. The segment has also historically provided free cash flows used to fund new initiatives, now at risk.
Additional concerns include a potential pricing revision in the NPS business in FY27 and stagnant ONDC retail volumes. Equirus has downgraded the stock from add to sell, slashing its target price from Rs 1,730 to Rs 900.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to consult certified financial professionals before making any investment decisions.
