Sole Provider of Secure Payment and IoT Solutions
Seshaasai Technologies Ltd. (STL), established in 1993 and headquartered in Mumbai, is a technology-driven provider of secure, integrated solutions. The company operates across multiple locations, delivering a wide range of offerings including payment solutions (debit, credit, prepaid, and transit cards), communication and fulfilment services, as well as IoT-based solutions. STL’s comprehensive portfolio caters to the varied requirements of clients across the banking, government, and enterprise sectors.
Key Highlights
The Indian payment cards market, valued at ₹9,071mn in FY20, expanded to ₹30,804mn by FY24. It is expected to nearly double, reaching ₹61,684mn by FY30, representing a CAGR of 12.3% over FY24–30.
From FY23 to FY25, STL reported revenue, EBITDA, and PAT growth at CAGRs of 13%, 34.2%, and 43.4%, respectively, with figures reaching ₹1,463cr, ₹360cr, and ₹222cr. This performance was underpinned by consistent product innovation and diversification across business verticals.
In FY25, STL’s EBITDA margin improved to 21.8% (vs. 17.4% in FY23), while PAT margin rose to 15.2% from 9.4%, driving a robust ROE of 35%.
STL reported a debt-to-equity ratio of 0.6x in FY25, which is projected to reduce significantly to 0.1x post-IPO, aided by debt repayment of ~₹300cr from the proceeds.
The company’s card manufacturing capacity has grown from 7.30mn/month in FY23 to 11.94mn/month in FY25. Its Radio Frequency Identification (RFID) tag production currently stands at 41.67mn/month, with plans to further expand metal card manufacturing (producing payment cards that use a metal core or metal layers instead of just plastic) at the Navi Mumbai and Bengaluru facilities.
At the upper price band of ₹423, Seshaasai Technologies Ltd. trades at a FY25 P/E of 30.8x. The company is diversifying beyond traditional printing (printing physical items like cheque books, passbooks, and cards for banks and businesses) into RFID, including smart traceability and digital identity, which are gaining adoption across retail, logistics, healthcare, and manufacturing, creating new revenue opportunities. Ongoing investments in automation, R&D, and capacity expansion position STL for scalable growth. Therefore, we assign a SUBSCRIBE rating for investors with a long-term perspective.
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