Network People

Network People Services Technologies Ltd. reported a strong Q1 FY26, with total income growing approximately 25% QoQ to ₹35 crores from ₹28 crores in Q4 FY25. Net profit increased by 19.7% QoQ to ₹7.19 crores from ₹6 crores. EBITDA also saw a 7.5% QoQ increase to ₹11.3 crores from ₹10.5 crores, resulting in an EBITDA margin of 32.28%, a dip of about 500 basis points compared to the previous quarter.

The company secured an in-principle commitment from Tata Mutual Fund for a preferential issue of around ₹300 crores, which management views as a strong validation of its market position. These funds are earmarked for strategic growth initiatives, including inorganic expansion, global market penetration, and the development of a lending-based platform. This capital is expected to accelerate the company's growth trajectory, potentially reducing the time to scale in lending from 24 months to 6 months.

NPST achieved a significant milestone by receiving its first dollar-denominated remittance from an African opportunity in Q1, leveraging its indigenous technology for global markets. The company is in active discussions with multiple partners across Southeast Asia, Africa, and the Middle East for further expansion. Additionally, NPST plans to introduce new revenue streams around auto-pay and payout, with testing already underway and revenue contribution expected in the current or next quarter.

NPST is developing its own hosted ecosystem, offering all products and services on a SaaS-based model tailored for small to medium-sized banks, regulated entities, and fintechs. The company aims to onboard over 100 tenants within the next 24 months, with 6 already lined up to go live. This strategy is designed to provide a comprehensive, agile, and cost-effective turnkey solution, addressing a significant market opportunity for digital payment solutions.

The company is focusing on a Device-as-a-Service (DaaS) model to enhance scalability and bring business through the acceptance ecosystem. This model eliminates CAPEX costs for banks, generating per-month, per-merchant task-based revenue. NPST has secured additional orders from existing clients, including a major bill pay order from a large PSU, and is preparing to launch 10 new devices in GFS, indicating a strong push into offline payment platforms.

NPST is actively integrating AI into its development strategy, aiming for 30% AI adoption in its tech product and operations workload by the end of FY26. This integration has already enabled rapid execution, as seen in the 2-2.5 month completion of Phase-1 of the Africa order. Management anticipates Q2 FY26 revenue to be 'much higher' than Q1 and expects to breach its highest performing quarter (₹67 crores from Q2 FY25) by Q3 FY26, targeting an incremental PAT growth of more than 20% QoQ.