Manipal Payment & Identity Solutions IPO

Strengths · 8

• 01The margin is strong for a manufacturing business, with a PAT margin of 22.10%, RoNW of 45.54% and RoCE of 33.97%.
• 02The company has cleared almost all its debt. Borrowing came down from Rs 472.87 crore in FY2025 to just Rs 0.42 crore in FY2026.
• 03Net worth has grown sharply, from Rs 405.05 crore in FY2024 to Rs 619.70 crore in FY2025 and Rs 1,107.34 crore in FY2026.
• 04EBITDA has improved every year, from Rs 355.57 crore in FY2024 to Rs 408.77 crore in FY2025 and Rs 455.83 crore in FY2026.
• 05The customer list is deep and reputed, covering State Bank of India, HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank and many more, with over 300 customers in FY2026.
• 06The card business reaches every kind of issuer, with 18 private banks, 9 public sector banks, 10 small finance banks, 13 co-operative banks and 34 fintech companies.
• 07The business is spread across payments, identity documents, secure printing and IoT tagging rather than one product line.
• 08Being part of The Manipal Group gives it standing with banks and government buyers, and Rs 238.43 crore of the issue goes into new equipment.

Risks · 8

• 01Profit actually fell in the latest year. Profit after tax came down 10% from Rs 282.21 crore in FY2025 to Rs 253.46 crore in FY2026, while income rose only 6%.
• 02The issue is priced at about 31.02 times earnings on an EPS of Rs 10.93, which is a high multiple for a business whose profit is going down rather than up.
• 03Total assets shrank from Rs 1,409.67 crore in FY2025 to Rs 1,160.90 crore in FY2026.
• 04The core payment card business depends on banks continuing to issue physical cards. The growth of UPI and digital payments works against physical card volumes over time.
• 05The identity solutions business depends on government contracts, which come through tenders and can be delayed or cancelled with budget cycles.
• 06A large part of the revenue comes from a small number of big banks, so losing one issuer relationship would be felt quickly.
• 07This is a fresh issue combined with an offer for sale, so a part of the money goes to the selling shareholders and not to the company.
• 08Promoter holding falls from 62.1% to 53.92% after the issue.

Manipal Payment & Identity Solutions Limited was started in 2008 and is part of The Manipal Group. It supplies payment products, identity documents, secure printed material and smart tagging solutions to banks, fintech companies, non-banking finance companies and governments, in India and abroad.

Its payment solutions include payment cards, cheque solutions, NFC and QR code products, payment enabled wearables and digital automation. Its identification solutions include driving licences, registration certificates, national identity cards and transit management systems. Its secure solutions cover secure logistics, personalised insurance policies, premium notices, renewal letters and marketing material, along with tamper evident envelopes, holograms and coated products. It also does smart tagging and Internet of Things work and runs a coated products business.

In FY2026 the company served more than 300 customers. Its payment card business alone served over 105 customers, including 18 private banks, 9 public sector banks, 10 small finance banks, 13 co-operative banks and 34 fintech companies. Its customers include State Bank of India, Canara Bank, Bank of India, HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, Federal Bank and City Union Bank. As on 31 March 2026 it had relationships with 60 fintech companies including Airtel Payments Bank and Scapia for making co-branded credit, debit and prepaid cards.

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