India's Protean eGov Technologies slumps as co ruled out of further bids in government project

Protean eGov Technologies

19/05/2025 08:37

Updates

 ** Shares of Protean eGov Technologies PROO.NS down 20% to 1,143.2 rupees, set to log their worst day on record

** The IT solutions firm said its proposals for bidding have been ruled out under design, development and ops of the IT department's PAN 2.0 project

** ICICI Securities said PROO was leading contender for the project and the development "comes as a negative surprise"

** Adds, this creates uncertainty for its PAN business outlook; the segment contributes to 50% of its overall revenue

** Brokerage Equirus Securities downgrades stock to "sell" from "add"

** Adds, while impact in FY26 would be muted, it is expected to lead to a 75%-100% collapse in the segment's revenue stream in the next 2-to-3 years

** Slashes FY27 profit after tax estimates by 58%, says segment has been key driver of co's profitability and free cash flow for over a decade

**  Stock down ~26% so far in 2025

(Reporting by Manvi Pant in Bengaluru)

((Manvi.Pant@thomsonreuters.com; +918447554364;))