Network People Services Technologies Limited — Q3 FY26 earnings call

Call held 12 Feb 2026

Management summary

Network People reported a strong recovery in Q3 FY26, with significant QoQ and YoY growth across key financial metrics, driven by business revamp and new product initiatives. Despite falling short of an ambitious revenue target, the company is actively diversifying revenue streams through AI-based solutions, international expansion, and a shift towards subscription-based models. Management addressed concerns regarding margin pressure and a classification observation, emphasizing future growth and transparency.

Highlights

  • Total Income of INR57.17 crores, up 17.46% QoQ and 145% YoY, indicating strong recovery.

  • EBITDA of INR18.74 crores, up 20% QoQ and 118% YoY, demonstrating improved operational efficiency.

  • PAT of INR11.5 crores, up 17.28% QoQ and 124% YoY, translating to significant shareholder value.

  • Launch of new products like EVOK 3.0 PPI and an AI-based risk engine, expected to contribute to future revenue.

  • Expansion into international markets with ongoing discussions in 10-11 countries, anticipating multiple deals in the next two quarters.

Concerns

  • Revenue of INR53 crores (as stated by analyst, management confirmed shortfall) fell short by INR14 crores compared to the anticipated growth target of INR67 crores.

  • Monitoring agency flagged INR3.18 crores utilized under general corporate purpose as a technical classification observation, raising disclosure granularity concerns.

  • EBITDA margin faced pressure, with operating costs increasing to 40% from 34%, leading to a 9-month margin decline from 35% to 29%.

Key financials

  1. Total Income ₹57.17 Cr +145%YoY
  2. EBITDA ₹18.74 Cr +118.2%YoY
  3. PAT ₹11.5 Cr +124%YoY
  4. Diluted EPS ₹5.92 +137%YoY

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.

Order book

medium confidence

Pipeline

deal pipeline tcv

Strong funnel for TSP business, multiple new accounts expected. Banking Connect has a lengthy list lined up. RegTech has received RFPs and is expected to contribute good revenue. International market has discussions with 10-11 countries.

Management indicates a strong pipeline across TSP, Banking Connect, RegTech, and international markets, with new accounts and revenue streams expected to materialize in coming quarters.

Source: Prepared remarks

Guidance & targets

Revenue

  • QoQ Revenue Growth Revenue · this financial year · High confidence 15-20%
    I have given you a revenue growth quarter-on-quarter between 15% to 20%, if you can see that this financial year.

    — Deepak Chand Thakur

  • Q4 FY26 Revenue Growth Revenue · Q4 FY26 · Medium confidence Similar growth trajectory as entire year's trend, minimum
    The year -- you take the entire year's growth trend, that is what you can expect in Q4 minimum. But we are yet to close 31st March. It can be upward also. So, I just told him that you can take it as upward.

    — Deepak Chand Thakur

  • FY26 YoY Revenue Growth Revenue · FY26 · High confidence Not lesser than 35%
    So, what I was trying to say is so the revenue jump will be year-on-year in a similar trend what we have done so far. It will not be lesser than this year.

    — Deepak Chand Thakur

  • All-time High Quarter Revenue Revenue · Q4 FY26 · High confidence Hit or cross all-time high quarter revenue
    The trend for sure shows the same. We will definitely do that, yes.

    — Deepak Chand Thakur

New Product Monetization

  • AI-based Risk Engine Revenue Contribution New Product Monetization · next 2 quarters · High confidence Start contributing to revenue
    Our Al-based risk engine is also showing a good traction, and we believe that it will start contributing to revenue in the next 2 quarters for sure and from the multiple streams for sure.

    — Deepak Chand Thakur

  • Payment Platform New Products/Services Revenue New Product Monetization · next 2 quarters · High confidence Start reflecting in revenue
    It will start reflecting in next 2 quarters.

    — Deepak Chand Thakur

  • EVOK 3.0 PPI Revenue New Product Monetization · Q1 next year · High confidence Start adding revenue
    We anticipate that this line will start adding revenue from the Q1 next year.

    — Deepak Chand Thakur

  • RegTech Revenue Contribution New Product Monetization · coming 6 months · High confidence Contribute good amount of revenue
    RegTech for sure will contribute a good amount of revenue in coming 6 months.

    — Deepak Chand Thakur

  • Lending Platform Revenue New Product Monetization · next 6 months · High confidence Upward journey
    So, that is another upward journey that we see coming in next 6 months.

    — Deepak Chand Thakur

International Market Expansion

  • International Deal Wins International Market Expansion · next 2 quarters / 6 months · High confidence Multiple deals
    It will, in fact, happen as early as next 2 quarters, although we had one deal from Nigeria last year, but there will be multiple, which we will start seeing in next 2 quarters.

    — Deepak Chand Thakur

Customer Acquisition

  • TSP New Accounts Customer Acquisition · next 6 months · High confidence Multiple new accounts
    This is because 6 months back, we took the decision about breaking the entire TSP into small, mid, large-sized businesses or else we couldn't have achieved multiple numbers with the same lens, and that has helped. So, we have 2 focused themes. One is purely on large accounts. Second one is purely on mid- to small accounts. You will start seeing the announcements very soon, and you will see multiple announcements in Q4.

    — Deepak Chand Thakur

Business Model Shift

  • Subscription-based Revenue from Hosted Model Business Model Shift · Q4 FY26 · High confidence Start coming in
    So, now this will start coming in Q4 itself.

    — Deepak Chand Thakur

Revenue Contribution

  • Banking Connect Contribution to TSP Business Revenue Contribution · over a year's time · High confidence 10-15% of TSP business
    I would say that this will become a major contributor in revenue. And I cannot give a percentage number right now, but I can say that just at a very high level, it can be as much as 10% to 15% of my TSP business in over a year's time.

    — Deepak Chand Thakur

Long-term Growth

  • Growth Rate Long-term Growth · by 2030 · High confidence 2x industry rate
    NPST wants to grow 2x the industry rate by 2030.

    — Deepak Chand Thakur

What to watch in Q4 FY26

Q4 FY26 Revenue Growth

next quarter (Q4 FY26)
Current INR57.17 crores (Q3 FY26)
Target Hit or cross all-time high quarter revenue

Why it matters

Verifies the successful execution of spill-over revenue and new initiatives, validating the company's recovery trajectory and growth momentum.

The trend for sure shows the same. We will definitely do that, yes.

Risks & concerns

  • Unexpected dip in payment platform in Q3 FY25

    medium

    Impacted growth and investor confidence in the previous year.

    Management acknowledged

  • Revenue shortfall against anticipated growth target in Q3 FY26

    medium

    Fell short by INR14 crores compared to the INR67 crores anticipation, attributed to spill-overs and longer sales cycles.

    Management acknowledged

  • Reduced paying capacity and shift in merchant profile for payment platform

    medium

    Challenges in the payment platform due to customer paying capacity and shift towards banks from aggregators.

    Management acknowledged

  • Margin pressure due to increased operating costs

    medium

    Operating costs increased to 40% from 34%, leading to a decline in 9-month margins, primarily due to current TSP projects.

    Management acknowledged

  • Technical classification observation for general corporate purpose funds

    low

    Monitoring agency flagged INR3.18 crores; management clarified it relates to disclosure granularity for operational expenses, not misutilization.

    Management clarified

Q&A highlights

8 direct
Revenue shortfall vs. anticipation and EBITDA margin trajectory Direct
To be honest, we have a very strong tail of funnel that we are working on. And then -- and during that time, when we revived the entire payment platform, we knew that things will turn up. And accordingly, the numbers were calculated. There are certain spill overs, which has gone to the next quarter.

Addresses the Q3 revenue miss and explains the reasons, including spill-overs and longer sales cycles for TSP business, while outlining strategies for future margin improvement.

Asked by Akshay from AK Investment

Long-term growth target (2x industry rate by 2030) and impact of AI Direct
So for sure, by 2030, growing double than the industry trend is something which is not just what I am saying, but it is what the growth journey in the pattern phase. So, we will definitely make that happen. That's not a big deal. In fact, if you compare even today on the trend that we are achieving for last 1 year versus the overall industry standard, you will always find us a little ahead of the curve.

Clarifies the company's ambitious long-term growth target and positions AI as an enabler for efficiency and delivery rather than a threat, given NPST's product-centric model.

Asked by Akshay from AK Investment

Fixed fee vs. transaction volume revenue split Direct
Transaction volume-based revenue, if I consider from TSP as well, I would say that almost 40% odd would be subscription and transaction volume based.

Provides insight into the company's revenue model, indicating a significant portion comes from recurring/volume-based sources, which is generally seen as stable.

Asked by Akshay from AK Investment

Banking Connect app growth and its contribution to the top line Direct
I would say that this will become a major contributor in revenue. And I cannot give a percentage number right now, but I can say that just at a very high level, it can be as much as 10% to 15% of my TSP business in over a year's time. But it will be very strong subscription-based revenue that I see in Banking Connect.

Highlights a new, high-potential product (Banking Connect) and quantifies its expected significant contribution to the TSP business, emphasizing its recurring revenue nature.

Asked by Nishant Joshi from Equisense Advisors

9-month margin decline and increase in operating costs Direct
Majorly because we are delivering the TSP projects now. And when you do a global project or when you do a project in the subscription model, you do not continue to invest the same cost. And that is the reason why your non-linear growth will start coming into picture.

Explains the reasons behind the observed margin pressure (cost-intensive TSP projects) and outlines the strategy for future margin expansion through non-linear growth and scaling of products.

Asked by Sunil Agarwal, Individual Investor

Guidance for Q4/FY26 top line and clarification on general corporate purpose observation Direct
Actually, this is Ashish. This is regarding the general corporate purpose and as per the SEBI ICDR, we have given the guidance also on the exchange before this call. And this is as per the SEBI ICDR, general corporate purpose is any expenses that is related to the business, and they have not specified any particular heads on that part. So as per, they were supposed to get the heads from our side. But as per the SEBI, they have not mentioned. Any expense relating to the business is covered under the general corporate purpose. That we have clarified to them also.

Addresses investor concerns about future growth projections and provides a detailed clarification on a technical classification observation, reassuring on governance and fund utilization.

Asked by Ashish Agarwal, Individual Investor

Utilization of Tata Mutual Fund for inorganic growth and international expansion strategy Direct
So, there are a lot of evaluations and thought process around the inorganic opportunity that is coming across to the organization. So, that's the area where we'll be investing. And the investment will happen in multiple areas, not just one alone. It will be in payments. We will definitely look at the opportunity around RegTech.

Details the strategic use of funds for inorganic growth, focusing on M&A opportunities in payments, RegTech, and TSP, alongside a clear roadmap for international market entry and expansion.

Asked by Suman Kawatra from Techfin Consultants

Shift in TSP business model from license-based to SaaS/subscription-based Direct
It will completely reverse because contractually, when it comes to SaaS-based revenue, the ticket size may be smaller, but the number of contract is higher.

Explains a fundamental shift in the TSP business model towards more recurring revenue streams, driven by targeting mid-to-small banks with SaaS-based offerings, which is positive for revenue predictability.

Asked by Saurabh Sadhwani from Sahasrar Capital

3 min read 7 chapters

Detailed narrative

Q3 FY26 Financial Performance Overview

Network People reported a strong financial recovery in Q3 FY26. Total income reached INR57.17 crores, marking a 17.46% sequential jump from INR48.67 crores in Q2 FY26 and a significant 145% increase year-on-year. Operational efficiency also improved, with EBITDA rising 20% QoQ to INR18.74 crores, an 118% jump compared to INR8.59 crores in Q3 FY25. Net profit (PAT) increased 17.28% QoQ to INR11.5 crores, and diluted EPS climbed to INR5.92, reflecting 35% QoQ and 137% YoY growth.

Strategic Business Revamp and Growth Drivers

Following an unexpected dip in Q3 FY25, NPST has relentlessly worked on a business revamp. This includes a focused approach for the domestic market, segmenting it into large accounts and mid-to-small accounts with redesigned products. Concurrently, an independent team has been established for international markets, which has received positive initial responses. The company anticipates significant cumulative impact on revenue streams from these efforts in the coming financial year.

Payment Platform Evolution and New Offerings

The payment platform opportunity has faced challenges due to reduced customer paying capacity and a shift in merchant profiles towards banks. To address this, NPST is introducing new products and services lines, expected to reflect in revenue in the next two quarters. This includes the upgrade of EVOK 3.0 with PPI through a partner bank, which is projected to add revenue from Q1 next year, and early-stage discussions for a lending platform over QR-based solutions.

AI-based Risk Engine and International Expansion

NPST's AI-based risk engine has taken good shape and is showing traction, with expectations to contribute to revenue from multiple streams within the next two quarters. In the international market, the company is engaged in discussions across 10-11 countries, particularly in the Middle East, Africa, Central Asia, and Latin America. Management is confident that multiple international deals will materialize as early as the next two quarters.

RegTech and Banking Connect Initiatives

RegTech, initially core to the payment platform, has been developed into a separate enterprise version due to specific demand and RFPs. It is expected to contribute a good amount of revenue in the coming six months. Additionally, Banking Connect, identified as a UPI movement for Internet banking, has already secured two clients and has a lengthy list of prospective clients. This initiative is projected to contribute 10-15% of the TSP business within a year as strong subscription-based revenue.

Business Model Shift and Margin Trajectory

The company is actively shifting its TSP business model. Currently, about 7 out of 10 contracts are license-based, but this mix is expected to completely reverse next year towards SaaS-based revenue. This transition, along with global market expansion and new PPaaS offerings, is aimed at improving EBITDA margins. Management acknowledged that operating costs increased to 40% from 34%, leading to margin pressure, primarily due to the nature of current TSP projects, but anticipates non-linear growth to mitigate this.

General Corporate Purpose Clarification

Management addressed an observation from the monitoring agency regarding INR3.18 crores utilized under general corporate purpose. They clarified that these funds were strictly used for operational expenses, primarily office and employee salaries, in the ordinary course of business. The observation relates solely to disclosure granularity, not misutilization, and the company remains fully compliant with SEBI ICDR Regulations, upholding high standards of transparency.

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