Aadhaar Deal Sparks 12% Rally in Protean eGov Tech, But SEBI RA Flags Long-term Growth Concerns

The company bagged a ₹1,160-crore work order from UIDAI post market hours on Tuesday

Shares of Protean eGov Technologies surged over 12% on Tuesday, after the company received a ₹1,160 crore work order from the Indian government.

According to a press release dated August 25, the IT solutions firm signed a contract with the Unique Identification Authority of India (UIDAI), under which Protean has been appointed as the “service provider” for establishing and operating district-level Aadhaar Seva Kendras (ASK) across 188 districts in the country. It will offer appointment and walk-in-based Aadhaar enrolment, updates, and other related Aadhaar services.

The contract is for a six-year period.

Retail Buoyant

At the time of writing, Protean eGov Technologies was among the top three trending stocks on Stocktwits. The stock was up 8.5% at ₹887.6.

Amid ‘extremely high’ market chatter, retail sentiment on the platform remained ‘bullish’.

However, the shares have faced heavy selling pressure in 2025, declining more than 38% so far this year.

Analyst Take: Long-term Concerns Persist

The company suffered a massive setback after losing a ₹1,440 crore PAN 2.0 contract from the Income Tax Department. The stock had tumbled nearly 30% in two sessions, with analysts downgrading their ratings, and investors feared a 75%-100% erosion in PAN-related revenues over the coming years. By mid-July, shares had already shed half their peak value.

Spread over six years, the new deal is expected to boost annual revenue by ₹193 crore, improving top-line visibility by 22%, according to SEBI-registered A&Y Market Research.

Yet, long-term concerns remain, including the loss of the PAN contract and questions about growth sustainability.

Protean e-Gov’s stock is currently moving in a sideways trend, with a critical resistance zone placed at ₹941- ₹961. This level will be key in determining the stock’s next direction, 

A decisive breakout above this resistance range could signal a trend reversal, leading to a climb towards higher resistance levels. On the flip side, if the stock fails to clear this zone, it may remain range-bound or even slip into a downward trajectory, the analyst added.

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