Nagpur-based SaaS and fintech provider Trust Fintech has reported a significant fall in its standalone net profit for the financial year 2024-25 (FY25). The company’s profit slipped 28% year-on-year to INR 9 crore, down from INR 12.57 crore in FY24. This decline comes as the company faced both revenue contraction and a sharp rise in expenses.
Standalone operating revenue for FY25 dropped 10.8% to INR 31.26 crore, compared to INR 35.04 crore in the previous year. The second half of FY25 was particularly challenging, with profits falling 26.4% to INR 3.84 crore from INR 5.22 crore in the same period last year. Revenue for H2 FY25 also decreased 10.2% year-on-year to INR 14.57 crore.
Consolidated Performance and Overseas Impact
On a consolidated basis, Trust Fintech’s net profit stood at INR 12.5 crore for FY25, with operating revenue at INR 35.04 crore. The company’s financials also reflect the performance of its overseas subsidiary, which reported a net loss of INR 99.41 lakh for the year, contributing to the overall subdued results.
Rising Expenses Squeeze Margins
Trust Fintech’s total expenses surged 26.3% to INR 23.48 crore in FY25, up from INR 18.59 crore a year ago. The biggest jump was seen in employee benefit expenses, which soared more than 47% to INR 9.49 crore. Other expenses also climbed 30.17% to INR 9.42 crore, while the cost of materials consumed rose nearly 27% to INR 4.63 crore.
Market Performance: From Stellar Debut to Volatility
After making a strong debut on the NSE SME platform in April last year at INR 143.25 per share—a 42% premium over its issue price—Trust Fintech’s stock has faced headwinds. As of May 27, 2025, shares closed at INR 94.10, about 6.8% below the IPO price and more than 44% down year-to-date. The company’s market capitalisation now stands at INR 204 crore.
Company Profile and Sector Reach
Founded in 1988 by Hemant Chafale, Heramb Ramkrishna, and Mandar Kishor Deo, Trust Fintech delivers SaaS products and fintech solutions, including ERP implementation and offshore IT services, primarily for the BFSI sector. Its clients include district central cooperative banks, urban and rural banks, commercial banks, credit cooperative societies, and NBFCs.
Leadership and Shareholding
The company is led by Managing Director Hemant Padmanabh Chafale, with Mandar Kishor Deo and Heramb Ramkrishna Damle as Whole Time Directors. Promoters hold a 68.85% stake in the company.
Outlook
Trust Fintech’s FY25 performance highlights the challenges facing mid-sized fintech players in India. The combination of declining revenues and rising costs has put pressure on margins. The company’s stock, once a market favourite, now reflects the broader volatility in the tech sector. Management will need to focus on cost control and revenue growth to regain momentum in the coming quarters.