In a stock exchange filing, the company said it had taken part in the bidding process for the project, which involved overhauling the PAN system — including its design, development, implementation, operation, and maintenance — but was informed that it would not move forward to the next stage.
Despite the setback, Protean stated that its current PAN-related operations remain largely unaffected. “At present, it appears to have limited or minimal impact on our ongoing PAN processing and issuance services under the existing mandate,” the company said.
PAN services are a major part of Protean’s business, contributing 61% of its revenue in the first half of FY25. The company currently holds a 64% market share in total PAN issuances. Revenue from this segment grew 33% between FY22 and FY24, boosted by deadlines for Aadhaar-PAN linking and new government schemes.
In January, Protean had described the PAN 2.0 project as a major upgrade to the core IT systems used to issue PAN cards. The goal was to modernize the technology stack and improve end-to-end digital processes.
However, the company did not detail how losing the PAN 2.0 contract might impact its future revenue. During earlier earnings calls, it said the financial implications would become clearer once the new system is rolled out.
