Protean eGov Stock Hits Lower Circuit After Missing PAN 2.0 Bid

Shares of Protean eGov Technologies tumbled 20 per cent on Monday, May 19, triggering a lower circuit and halting trade, after the company revealed it had failed to move forward in the government’s high-stakes PAN 2.0 tender process. The setback stems from the Income Tax Department’s effort to overhaul the digital infrastructure behind Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) systems. With an estimated outlay of Rs 1,440 crore, the PAN 2.0 initiative includes end-to-end development, deployment, and maintenance. Winning the contract would have secured Protean’s dominance in India’s tax-tech space.

The stock had already been under pressure, falling around 15 per cent in the five days leading up to Monday. With today’s plunge, it has now lost 22 per cent over both the past month and the past six months. Protean share price was down 20 per cent at Rs 1143.05 on May 19, at 1:49 pm, on BSE. The company enjoys a market capitalisation of Rs 4,634.87 crore.

Protean Left Out

Protean, in a stock exchange disclosure, said it had applied to serve as the Managed Service Provider (MSP) for the PAN 2.0 project but was “not considered for the next stage.” The company stressed that the loss “appears to have limited or minimal impact” on its existing PAN card processing services under its current contract with the Income Tax Department.

Brokerage Downgrade Adds Pressure

According Brokerage firm Equirus report, PAN-related services account for nearly half of Protean’s total income. Though the near-term hit to FY26 earnings may be modest, Equirus estimates a 75-100 per cent erosion in this revenue stream within the next two to three years. That could translate to a 35 per cent overall revenue drop by FY27.

The brokerage also flagged concerns over Protean’s free cash flow, which had previously funded expansion efforts, with new initiatives under strain and other segments, such as ONDC retail volumes, showing little traction.

As of the March quarter, prominent investor Ramesh Damani held a 1.05 per cent stake in the company.

“It appears to have limited or minimal impact on our ongoing PAN processing and issuance services under the existing mandate with the ITD,” the company reiterated in its filing.