Summary
Network People Services Technologies Limited - Q3 FY 2026 Earnings Call Summary Thursday, February 12, 2026, 4:00 PM
Event Participants
Executives 3 Ashish Aggarwal (Joint Managing Director), Deepak Chand Thakur (Chairman and Managing Director), Savita Vashist (Executive Director)
Analysts 10 Abhishek Kajal (Individual Investor), Akshay (AK Investment), Ashish Agarwal (Individual Investor), Hardik Gandhi (HPMG Shares and Securities), Nishant Joshi (Equisense Advisors), Nitin Gupta (Individual Investor), Sajal Gupta (FE Securities), Shubham Thorat (Perpetual Capital Advisors), Suman Kawatra (Techfin Consultants), Sunil Agarwal (Individual Investor)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Total Income | ₹57.17 crores | +145% YoY and +17.46% QoQ; growth driven by payment infra, risk management, and bank-led digital platforms. |
| EBITDA | ₹18.74 crores | +118% YoY and +20% QoQ; reflects operational efficiency despite business model shifts. |
| EBITDA Margin | 32.78% | -300 to 400 bps YoY; compression due to delivery costs of TSP projects and business mix changes. |
| Net Profit (PAT) | ₹11.50 crores | +124% YoY and +17.28% QoQ; profitability translates to significant shareholder value. |
| Diluted EPS | ₹5.92 | +137% YoY and +35% QoQ; consistent with bottom-line recovery. |
| Cash Utilization (GCP) | ₹3.18 crores | Utilized for operational expenses (salaries/office); flagged by monitoring agency for technical disclosure granularity. |
Geographic & Segment Commentary
- Technology Service Provider (TSP): Remains the primary revenue driver (85-90% of business) focusing on digital payment software for banks and fintechs. Management is shifting toward a mix of mid-to-small accounts to introduce SaaS/subscription models alongside traditional license fees. Strategic focus is on reducing sales cycles and increasing non-linear growth through hosted solutions.
- Payment Platform (PPaaS): Faced recent headwinds due to reduced paying capacity of aggregators, but is pivoting toward bank-led merchant profiles. New revenue streams include PPI (Prepaid Instruments) issuance and offline payment solutions, which grew 60% QoQ. Management anticipates PPI to contribute starting Q1 FY27 with 10x higher per-transaction revenue than UPI.
- International Market: Established an independent team currently engaging with 10-11 countries across Middle East, Africa, Central Asia, and Latin America. Management expects multiple global deals to materialize within the next 2 quarters. Focus is on replicating India-proven payment infrastructure in regions with burgeoning digital demand.
Company-Specific & Strategic Commentary
- AI & Risk Management: Launched an AI-based risk intelligence platform for predictive fraud analytics with >90% accuracy. Revenue contribution is expected within 2 quarters as banks and aggregators seek to mitigate financial losses.
- Banking Connect: A “UPI-like” movement for internet banking targeting 2,000+ banks. Currently has 2 clients executed with a strong pipeline, expected to contribute 10-15% of TSP revenue in 12-18 months.
- Inorganic Growth: Utilizing funds raised from Tata Mutual Fund for strategic acquisitions in RegTech and payment platforms. Focus is on consolidation that offers quick scale or access to previously unreachable market segments.
- Product Evolution (EVOK 3.0/4.0): Upgraded platforms to include PPI through partner banks; first use case cracked with an ERP provider (Infinity Infoway) for educational institutes. This shifts the model toward high-margin transaction-based revenue.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue Growth | 15% - 20% QoQ | Management maintains a consistent growth trajectory for Q4 FY26, targeting potential all-time highs. |
| FY26 Total Revenue | Upward Trend vs FY25 | Aiming to maintain the ~35% YoY growth trajectory seen in previous fiscal years. |
| Strategic Mix | 2x Industry Rate | Long-term target to outperform industry growth by 2030 through global expansion and SaaS adoption. |
| New Revenue Streams | Q1 FY27 | PPI and AI-based risk engines are expected to start adding material P&L impact by the start of next fiscal. |
Risks & Constraints
| Risk | Context |
|---|---|
| Revenue Lumpiness | Revenue fell ₹14 crores short of internal Q3 targets due to “spillover” (₹10+ crores) into Q4. Long sales cycles in the TSP segment (90% of revenue) create timing risks for quarterly reporting. |
| Governance/Disclosure | Monitoring agency flagged ₹3.18 crores in GCP utilization for technical disclosure granularity. While management clarified use for operational expenses, it remains a point of regulatory observation. |
| Competitive Pressure | Shift in merchant profiles from aggregators to banks requires NPST to rapidly adapt its product fitment. The reliance on bank-partner approvals for PPI and lending-as-a-service introduces third-party dependency. |
Q&A Highlights
Revenue Miss and Spillovers
- Question: Why did revenue fall short of the anticipated ₹67 crore target this quarter? (Akshay)
- Answer: Approximately ₹10+ crores spilled over into the next quarter due to long sales cycles in the TSP business. The business was not lost but delayed in closure (Deepak Thakur).
Inorganic Growth & Tata Fund
- Question: What are the plans for the funds raised from Tata Mutual Fund? (Suman Kawatra)
- Answer: Funds are earmarked for inorganic growth, specifically looking at consolidation in RegTech and payment platforms to achieve quick scale (Deepak Thakur).
Margin Sustainability
- Question: 9-month margins dropped to 29% from 35%; how will this be addressed? (Sunil Agarwal)
- Answer: Current margins are impacted by TSP project delivery costs. Future margins will improve as SaaS, subscription models, and international deals (which carry higher margins) become a larger part of the mix (Deepak Thakur).
AI Threat vs. Opportunity
- Question: Is AI a threat to the business given the recent IT sector volatility? (Akshay)
- Answer: No, NPST is a product company, not a manpower-based service firm. AI improves internal developer efficiency and powers new product lines like the risk/fraud engine (Deepak Thakur).
International Timeline
- Question: When will international deals reflect in the numbers? (Hardik Gandhi)
- Answer: Management is currently in discussions with 10-11 countries and expects to see the “light of day” for these deals within the next 6 months (Deepak Thakur).
Key Takeaway
NPST reported a resilient Q3 FY26 with a 145% YoY revenue jump to ₹57.17 crores, despite a ₹10+ crore spillover that caused a slight miss against internal high-growth targets. The company is successfully transitioning from a license-heavy TSP model toward a diversified fintech infrastructure play, emphasizing SaaS, AI-based risk engines, and PPI issuance. Strategically, the firm is leveraging new capital for inorganic growth in RegTech while establishing a global footprint across 10+ countries. Management remains confident in maintaining a 15-20% QoQ growth trajectory, supported by a 60% increase in offline payments and the upcoming launch of “Banking Connect.” While margins have faced temporary pressure due to project execution costs, the shift toward non-linear subscription revenue and international markets is expected to drive margin expansion. NPST enters Q4 FY26 with a revived funnel and aims to exceed previous performance benchmarks as its multi-threaded product strategy matures.
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