Protean eGov Technologies shares plunge 20% after downgrade amid PAN 2.0 project withdrawal

Mumbai: Shares of Protean eGov Technologies, a digital public infrastructure company, plunged 20% - the lowest tradable limit of the day - on Monday as analysts downgraded the stock after the company said the company is no longer in contention for the government's PAN 2.0 project.

Brokerage Equirus Securities slashed its rating on the stock to sell and price target for March 2026 to ₹900, implying further downside of 21% from Monday's closing of ₹1,143.2.

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"This is a material negative as PAN services contribute 50% of the company's revenue," said the brokerage in a client note. "While FY26 impact may be muted, we expect a 75-100% collapse in this revenue stream over the next 2-3 years."

As of March 31, Canara Bank, PNB, SBI, Axis Bank and Bank of Baroda jointly owned 13.17% in the firm, which is entirely owned by public shareholders. Investor Ramesh Damani held 1.05% in the company.

"Protean gets about 45-50% of its revenue from PAN operations, so losing the PAN 2.0 contract could hit its earnings from FY27 unless it secures new projects," said Manish Chowdhury, head of research, StoxBox. " There's also talk of a pricing revision for its NPS project in FY27, which, if materialised, could hurt profits."