Network People

NPST delivered robust financial results for H1 FY25, with total income reaching INR 129 crores, marking a significant 142% year-on-year growth from INR 53.32 crores in H1 FY24. Profitability also saw substantial improvement, with EBITDA margin expanding to 36.75% from 32.65% and net profit margin increasing by 708 basis points to 26.13%. Quarter-on-quarter, Q2 FY25 revenue (calculated at INR 68.94 crores) grew 14.75%, with EBITDA at INR 25.35 crores and net profit at INR 18.16 crores, demonstrating continued strong momentum.

The company's core platform, EvoK, has been upgraded to version 3.0, which is now live and undergoing production testing with a new bank. This upgrade includes crucial features like mirroring and shadow ledger capabilities, designed to reduce core banking hits from 1 lakh to 10 per batch, significantly improving efficiency. NPST also successfully added two new sponsor banks to its payment platform, with one already in production and the other in pre-production, aiming for full commercialization by mid-November.

NPST launched two key products at the Global FinTech Fest: Instant Credit Line on UPI and a Risk Intelligence Decisioning Platform. The Instant Credit Line on UPI is identified as a significant future revenue opportunity due to strong MDR potential. The Risk Intelligence Decisioning Platform, which profiles merchant and transaction risk, will be offered at no cost for the first six months but is expected to start generating revenue within the current financial year.

Recognizing a significant market need, NPST has ventured into internet banking and mobile banking interoperability solutions, aiming for a UPI-like movement in these segments. Management views this as a substantial opportunity, potentially targeting 1,000-2,000 banks in the ecosystem. This strategic move leverages NPST's expertise in UPI to address a new, large market, positioning the company for future growth beyond its current offerings.

NPST operates primarily as a technology partner to banks and payment aggregators, providing platforms and solutions rather than directly competing with consumer-facing apps like Paytm or PhonePe, which are considered customers. The company employs multiple revenue models, including license-based (for large accounts), SaaS-based per transaction, and subscription-based (fixed revenue per merchant for offline payment solutions). This diversified model allows NPST to cater to various client needs and scale its offerings.

While the company reiterated its FY25 revenue growth guidance of 75-100%, it expressed caution regarding specific H2 FY25 numbers due to ongoing policy changes and the integration of new products. International expansion remains a medium-term goal, with assessments underway in Africa, the Middle East, and Southeast Asian markets. Management anticipates needing another 'couple of quarters' to identify exact market targets and potentially a 'year more' to establish local partnerships and reshape products for international markets.