eTranzact International Plc has projected continued profitability for the first quarter ending March 2026, according to its earnings forecast filed with the Nigerian Exchange (NGX).
The payment and switching provider is expected to generate a revenue of N3.74 billion during the period, compared to N6.5 billion in the same period of 2025. While the revenue outlook reflects a contraction, the forecasts point to a company restructuring its business strategy, moving away from low-margin, high-volume activities.
Gross profit is projected at N3.24 billion. This is driven by a significantly lower cost of sales expected to fall to N501.4 million, an 85.5 percent decline from the N3.4 billion it recorded in Q1 2024.
In Q1 2025, eTranzact reported a gross profit of N3.19 billion and a revenue of N6.5 billion. Cost of sales for that period was N3.4 billion. Cost of sales for this year is projected to be N501.4 million.
The forecast points to a company whose performance is being supported by a shift away from high-volume, low-margin revenue lines toward its core switching and transaction processing services.
Operating profit is expected to reach N1.06 billion, and profit before tax is forecast at N961.02 million. Net profit for the period is projected at N672.7 million, making a turnaround from losses recorded in the prior year.
Although this represents a moderation from the N830.2 million net profit recorded in the quarter of the prior year, the earnings profile is a reflection of improved cost discipline and a more sustainable margin picture.
The earnings outlook is also likely to be supported by eTranzact’s participation in the Federal Inland Revenue Service e-invoicing programme, which continues to expand to a broader base of businesses. The initiative is expected to provide more stable, recurring fee-based income for service providers.
Market activity around the stock has strengthened in recent months, reflecting improved investor sentiment following the company’s restructuring and revised earnings outlook. eTranzact is the 50th most traded stock on the Nigerian Exchange with a market capitalisation of N157 billion. If achieved, the forecast performance would reinforce eTranzact’s transition toward a more suitable, technology-driven business model.
