Trust Fintech Stock Bags ₹22.23 Crore Order From KDCC Bank; 10-Year Deal Signals Long-Term Revenue Visibility 

Synopsis: Trust Fintech Ltd has secured a major long-term purchase order from KDCC Bank for the supply, implementation, integration, and SaaS subscription of add-on software modules along with related services. The contract, valued at approximately Rs. 22.23 crore over a 10-year period, is expected to strengthen the company’s recurring revenue stream and reinforce its position in the BFSI-focused fintech solutions space. 

Trust Fintech Ltd is a technology-driven software company specializing in digital transformation and IT solutions for the banking and financial services (BFSI) sector. The company provides banking software products, integration services, and SaaS-based solutions aimed at improving operational efficiency and digital capabilities for financial institutions. 

Trust Fintech Ltd has a market capitalization of Rs. 90.2 crore. The company’s stock is currently trading at Rs. 37.85 per share up by 1.20% compared to its previous close of Rs. 37.40, compared to its 52-week high of Rs. 94.1 and 52-week low of Rs. 27.9. 

The company has a stock P/E ratio of 11.1, while its ROCE and ROE stand at 15.7 percent and 11.6 percent respectively. Trust Fintech also has a dividend yield of 1.33 percent, reflecting its focus on shareholder returns alongside business expansion. 

According to the company’s latest regulatory filing, Trust Fintech has received a purchase order from KDCC Bank for supply, implementation, integration, and SaaS subscription of add-on software modules along with related services. 

The contract has been awarded by a domestic entity and will be executed over a period of 10 years. The first-year revenue from the order is estimated at Rs. 1.77 crore, while the total contract value stands at approximately Rs. 22.23 crore. 

The agreement also includes a yearly escalation clause of 5 percent from the second year onwards in software subscription and infrastructure rental charges, providing better long-term revenue visibility for the company. 

For FY25, Trust Fintech reported annual revenue of Rs. 35.6 crore, registering a marginal growth of around 1 percent compared to Rs. 35.3 crore in the previous financial year. However, profitability witnessed pressure during the year. Net profit declined to Rs. 8 crore in FY25 from Rs. 12.5 crore in FY24, reflecting a year-on-year decline of nearly 36 percent. 

Operating profit also softened to Rs. 8.8 crore compared to Rs. 17.7 crore in the previous year, while EBITDA margin narrowed to 37.1 percent from 50.9 percent. Despite short-term margin pressure, the latest order win could help improve recurring revenues and strengthen earnings stability over the coming years. 

Industry Outlook 

India’s IT and digital services sector is witnessing strong growth driven by rising demand for AI, cloud computing, cybersecurity, and digital transformation. India’s AI market is projected to reach US$ 28.8 billion by 2025 with a 45 percent CAGR, while the software product industry is expected to touch Rs. 8.62 lakh crore. Global Capability Centres (GCCs) are also expanding rapidly, creating significant employment opportunities. 

Government initiatives are further supporting growth. The Union Budget FY26 allocated Rs. 2,000 crore for AI infrastructure and Rs. 500 crore for AI education initiatives, while the PLI scheme continues boosting investments and domestic technology manufacturing.

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