Network People Services Technologies Limited

Network People Services Technologies (NPST) delivered robust financial results for Q2 FY26. Quarterly revenue surged to ₹48.61 crores, marking a substantial 39% quarter-on-quarter increase from ₹35 crores in Q1. EBITDA also saw a significant jump of 40% quarter-on-quarter, reaching ₹15.71 crores. Net profit rose by 38% to approximately ₹10 crores, up from ₹7 crores in the previous quarter, maintaining a healthy profitability of about 20.4% over total income.

The company emphasized its successful strategy to de-risk and diversify the business by adding multiple revenue sources. Key initiatives include the launch of 'Banking Connect' for interoperability between net banking and mobile banking, and 'Bank-in-a-Box' to offer SaaS-based solutions to small and mid-sized banks. NPST also highlighted traction for its 'Queen's platform' (offline payment solution) and significant investments in large-scale products like UPI, Banking Super App, IMPS, and BBPS. The RegTech vertical, focused on fraud prediction with 90% accuracy, is expected to be a major growth driver in the next 2-3 quarters.

Management expressed confidence in sustained incremental growth, targeting to reach ₹66 crores in revenue by Q3 FY26, matching previous peak levels. The TSP segment is currently the largest contributor, accounting for 80%-85% of revenue, with PPaaS contributing 15%. Both TSP and PPaaS are expected to drive the highest incremental revenue over the next 12-18 months due to their maturity and multiplier effect. The company is also focused on international expansion, particularly in Africa and UAE, where contract sizes and revenue per ticket are significantly higher than in India.

NPST is actively investing in AI for internal efficiency, aiming to optimize operations by at least 40%. This internal AI adoption is expected to increase organizational productivity, accelerate go-to-market strategies, and enhance competitive advantage. While direct cost efficiency may not immediately translate to a proportional margin boost, management anticipates a significant improvement in margins over the next 2-3 years, potentially 'much larger than the 40% goal' initially set for optimization.

The TimePay platform currently boasts over 1 million customers. Management clarified that TimePay's strategy is focused on the merchant side of the business, particularly through PPI (Prepaid Payment Instrument) and B2B merchant products. They noted that MDR (Merchant Discount Rate) already exists for PPI and other products, unlike UPI. The company aims to leverage PPI for wallet-based transactions in corporate and ERP segments, expecting it to be a key contributor to PPaaS revenue in the next 2-3 years.

The implementation cycle for new products like 'Bank-in-a-Box' is targeted to be short, around 30-45 days, though larger banks might take 90-120 days. A new version of the payment platform (version 4.0) is slated for launch by early next quarter, focusing on early settlement and interoperability in autopay and payout. For a recently won PSU bank order with 3,300+ branches, only 10%-15% of the total order revenue is expected to be recognized in FY26, with the majority flowing into the next financial year.