Network People Services Technologies Limited — Q1 FY26 earnings call

Call held 12 Aug 2025

Management summary

Network People reported robust financial performance in Q1 FY26, driven by strong QoQ growth in total income and net profit. A significant ₹300 crore fundraise from Tata Mutual Fund validates the company's market position and will fuel inorganic growth and global expansion. Strategic initiatives like the hosted cloud SaaS model and Device-as-a-Service are expected to drive future growth, with management expressing high confidence in surpassing previous revenue highs by Q3 FY26.

Highlights

  • Total income grew 25% QoQ to ₹35 crores in Q1 FY26.

  • Net profit increased 19.7% QoQ to ₹7.19 crores.

  • EBITDA rose 7.5% QoQ to ₹11.3 crores, with EBITDA margin at 32.28%.

  • Secured in-principle commitment for a ₹300 crore preferential issue from Tata Mutual Fund.

  • Received first dollar-denominated remittance from an African opportunity, marking global expansion.

  • Targeting to breach previous highest quarterly revenue (>₹67 crores) by Q3 FY26.

  • Planning to onboard over 100 tenants for the hosted cloud SaaS model in the next 24 months.

Key financials

  1. Total Income ₹35 Cr +25%QoQ
  2. EBITDA ₹11.3 Cr +7.6%QoQ
  3. Net Profit ₹7.19 Cr +19.7%QoQ
  4. EBITDA Margin 32.3% -5.2%QoQ

What they filed

Q1 FY27: revenue up 64.7%, net profit up 57.1% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue67 21 26 34 47 −30%53 +152%62 +138%56 +65%
EBITDA23 7 9 10 14 −39%14 +100%13 +44%14 +40%
Net profit18 5 5 7 10 −44%12 +140%12 +140%11 +57%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Guidance & targets

Revenue

  • Quarterly Revenue Revenue · Q3 FY26 · High confidence >₹67 crores
    We are very strong in our anticipation that somewhere by Q3, we will be breachingthe highest quarter which we achieved last year.

    — Deepak Chand Thakur, Chairman & Managing Director

  • QoQ Revenue Trend Revenue · Q2 FY26 · High confidence much higher
    Trend will pick up so that Q2 is much higher.

    — Deepak Chand Thakur, Chairman & Managing Director

Capacity

  • Hosted Cloud Tenants Capacity · next 24 months · High confidence 100 plus
    100 plus tenant in next 24 months.

    — Deepak Chand Thakur, Chairman & Managing Director

  • Initial Hosted Cloud Live Tenants Capacity · as soon as we go live · High confidence 6
    We already have 6 lined up. As soon as we go live, we will start with 6.

    — Deepak Chand Thakur, Chairman & Managing Director

Other

  • AI Adoption in Workload Other · FY26 · High confidence 30%
    The goal this year is to adopt AI to an extent of 30% of their entire workload.

    — Deepak Chand Thakur, Chairman & Managing Director

Headcount

  • Total Headcount Headcount · FY26 · Medium confidence 350 to 500 plus people
    Even this year, probably my HR is sitting at taking 350 to 500 plus people.

    — Deepak Chand Thakur, Chairman & Managing Director

Profitability

  • PAT Growth Profitability · QoQ (June '25 to September '25) · Medium confidence >20%
    It's about 20% right now. It will be only incremental. Yes. So, more than 20%, right? You are saying this pace of growth will grow, right? Yes.

    — Deepak Chand Thakur, Chairman & Managing Director

Risks & concerns

  • Regulatory changes impacting UPI economics (e.g., MDR implementation)

    medium

    Management stated that MDR is a regulatory question and not for them to comment on, implying they would adapt to any changes.

    Analyst deflected

  • Potential dilution of ROE/ROCE due to the ₹300 crore QIP

    medium

    An analyst raised concerns about the QIP's impact on capital efficiency ratios, but management avoided providing a direct answer, stating it had been addressed previously.

    Analyst deflected

  • Competition in the hosted cloud payment product market

    low

    Management acknowledged existing players but emphasized the growing market opportunity and their product differentiation, especially with new product launches and cooperative banks.

    Analyst acknowledged

Areas of evasion (2)

  • Regulatory policy regarding MDR
  • Specific financial impact of QIP on ROE/ROCE

Q&A highlights

1 direct, 2 evasive
Potential implementation of Merchant Discount Rate (MDR) for UPI Evasive
So, Akshay, this is a regulatory question. I would like to stay away from that.

MDR could significantly alter UPI transaction economics, directly impacting NPST's revenue model, but management avoided commenting on its potential implementation.

Asked by Akshay

Differentiation of NPST's hosted cloud payment product from competitors Direct
So, one name was correct. The other one was not. Jeta is not from our segment. You see the industry is concentrated with just 1 or 2 players. If you try to understand the hosted delivery, which we currently have, so, the competition, again, if you split that competition product-wise, you'll realize that all the products which have been built so far, that's where they may have the edge.

This question clarifies NPST's competitive positioning and perceived advantages in the new hosted cloud SaaS business, a key growth area.

Asked by Srinivasu K

Impact of Qualified Institutional Placement (QIP) on ROE and ROCE Evasive
Okay, I will answer that again. For the fourth time, maybe. Please do that, because I have already answered 4 times now.

The ₹300 crore fundraise is substantial and could dilute capital efficiency ratios, but management repeatedly deflected the analyst's direct concern about its impact on ROE/ROCE.

Asked by Nishant

2 min read 6 chapters

Detailed narrative

Q1 FY26 Financial Performance Highlights

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.

Strategic Fundraise and Capital Allocation

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.

Global Expansion and New Business Models

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.

Hosted Cloud and SaaS Strategy

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.

Device-as-a-Service (DaaS) Model and Acceptance Ecosystem

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.

AI Integration and Future Outlook

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.

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