Findi Faces Execution Risks Despite Strong SBI Contract Expansion and TCPSL Acquisition
Findi Limited has upgraded its contract with State Bank of India, expanding its ATM deployment by over 2,200 units and significantly increasing revenue and EBITDA projections. The company also outlines strong FY25 guidance and anticipates a major revenue leap in FY26 following the TCPSL acquisition.
- SBI contract expanded by 54%, adding 2,293 ATMs
- Upgraded contract lifts total revenue to $800M-$890M and EBITDA to $375M-$415M over 10 years
- FY25 EBITDA forecast narrowed to $30M-$32M despite licensing delays
- TCPSL acquisition approved, expected to complete by February 2025
- Findi projects over 140% revenue growth in FY26 driven by organic growth and new WLA opportunities
Contract Expansion with SBI
Findi Limited has announced a substantial upgrade to its 10-year contract with the State Bank of India (SBI), the country's largest bank. The number of Brown Label ATMs (BLA) to be deployed and managed under the agreement has increased by 54%, from 4,219 to 6,512 units. This expansion is expected to generate an additional $250 million to $270 million in revenue and $125 million to $135 million in EBITDA over the contract's life, lifting total revenue projections to between $800 million and $890 million, and EBITDA to $375 million to $415 million.
The original contract, signed in October 2023, saw the first ATMs deployed in August 2024 with a full rollout commencing December 2024. The additional 2,293 ATMs under the upgrade will begin deployment in October 2025 and are expected to be completed by March 2026. Capital expenditure for this expansion will be funded through Findi's free cash flow and new banking facilities, underscoring the company's confidence in its financial position.
FY25 Performance and Guidance
Despite a delay in obtaining the White Label ATM (WLA) licence and Reserve Bank of India (RBI) approval for the acquisition of Tata Communications Payment Solutions Limited (TCPSL), Findi expects FY25 EBITDA to fall within $30 million to $32 million, slightly below the previous guidance range of $30 million to $35 million. Revenue is forecast between $68 million and $70 million, reflecting a more than 21% increase in the second half of FY25 compared to the first half.
The delay in WLA licence approval has deferred approximately $15 million in revenue, impacting the overall FY25 outlook. However, the company remains on track to meet its EBITDA targets, with second-half EBITDA expected to rise by about 25% over the first half.
TCPSL Acquisition and Strategic Outlook
Findi's acquisition of TCPSL, which holds a White Label ATM licence and a payments switch platform, received RBI approval and is anticipated to complete by the end of February 2025. TCPSL is projected to contribute $28 million to $30 million in revenue and $5 million to $7 million in EBITDA in FY26, with a net profit after tax of $2 million to $4 million. The acquisition brings a capital-light, high-return franchise model and control over WLA rollout strategy, positioning Findi as the second-largest WLA operator in India.
Additionally, TCPSL holds $51.1 million in cash on its balance sheet and identified cash tax benefits of approximately $32.85 million. The company also plans to monetise an additional 6,750 warehoused ATMs as FindiPay co-located WLAs, further enhancing growth prospects.
Looking Ahead to FY26
Findi anticipates a transformative year in FY26, expecting to more than double its revenue compared to FY25. This growth will be driven by organic expansion in its traditional ATM solutions and FindiPay businesses, accelerated WLA deployment enabled by the TCPSL acquisition, and the SBI contract upgrade. Management forecasts revenue growth exceeding 140%, with a detailed FY26 guidance update scheduled for release at the end of Q1 FY26 (July 2025).
The company also signals potential further upgrades to key Brown Label ATM contracts, which could add to the momentum. This outlook reflects Findi's strategic positioning to capitalise on India's rapidly evolving digital payments landscape and the growing demand for ATM infrastructure.
Bottom Line?
Findi’s expanded SBI contract and TCPSL acquisition set the stage for a significant revenue leap, but execution and regulatory factors will be critical to watch.
Questions in the middle?
- How will Findi manage the accelerated rollout of the additional 2,293 ATMs within the upgraded SBI contract?
- What synergies and cost savings can be realised from integrating TCPSL and FindiPay operations?
- Could further regulatory delays impact the timing and scale of the White Label ATM business expansion?
