Network People Services Technologies Limited — Q4 FY25 earnings call

Call held 27 May 2025

Management summary

Network People Services Technologies Ltd. reported a strong recovery in Q4 FY25, demonstrating a 24% sequential growth after the Q3 impact. The company achieved robust full-year FY25 performance with significant revenue and profit growth, driven by strategic diversification, new product launches, and key deal wins in both domestic and international markets. Management outlined a clear path for future growth, emphasizing SaaS-based revenues, global expansion, and leveraging new initiatives like AI-based RegTech and ONDC.

Highlights

  • Full Year FY25 Revenue grew by 39-40% to INR 180 crores, up from INR 130 crores in FY24.

  • Q4 FY25 saw a 24% Q-o-Q jump over Q3 results, with revenue around INR 24.5 crores.

  • EBITDA margin improved from 35% to 37% for FY25.

  • Net profit margin increased from 20% to 25% for FY25.

  • EPS for FY25 jumped 68% to INR 23.27 from INR 13.85 in FY24.

  • Secured 6 new orders worth over INR 100 crores for the next 4-5 years, including a INR 70 crore deal with Central Bank of India.

  • Cracked a multimillion-dollar contract in Africa for digital payment infrastructure, a 36 plus 7-year deal.

  • Estimated 30% incremental talent pool addition in FY26, primarily in tech and product domains.

Key financials

2 periods

Q4 FY25

  • Revenue
    ₹24.5 Cr
    YoY -46.7% QoQ +24%

FY25

  • Revenue
    ₹180 Cr
    YoY +38.5%
  • EBITDA Margin
    37%
  • Net Profit Margin
    25%
  • EPS
    ₹23.27
    YoY +67.9%

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

Headcount

  • Incremental talent addition Headcount · FY26 · Medium confidence 30%
    this year, the estimated upward trend is going to be about 30-odd percent incremental talent along with the AI implementation.

    — Deepak Chand Thakur

Deal Wins

  • New orders value Deal Wins · next 4-5 years · High confidence INR 100 crores
    we got 6 new orders worth over INR100-odd crores in the next 4 to 5 years.

    — Deepak Chand Thakur

  • Central Bank of India order value Deal Wins · next 5 years · High confidence INR 70 crores
    One of the largest deal being Central Bank of India, which is majorly because we ensured that we pivot into more areas of business and offline payment was one, which is about INR70-odd crore order in the next 5 years.

    — Deepak Chand Thakur

Profitability

  • P&L contribution from new businesses Profitability · first half yearly itself in FY '26 · High confidence start showing numbers
    For all the new businesses, which I mentioned, our P&L will start showing the numbers from -- by the half yearly -- first half yearly itself in FY '26.

    — Deepak Chand Thakur

Market Share

  • Payment platform revenue share Market Share · this financial year · Medium confidence 70-odd percent

    Previously 65% to 70%-odd → 70-odd percent

    we anticipate our payment platform to be going back to the same 70-odd percent revenue share this financial year, coming from 65% to 70%-odd from this particular business.

    — Deepak Chand Thakur

International Expansion

  • Africa deal execution period International Expansion · starting Q1 FY26 · High confidence 7-8 months
    the execution has already started this quarter. We are expecting this is going to be 7, 8 months execution period, but the revenue will start hitting from Q1 itself

    — Deepak Chand Thakur

  • Africa deal contract duration International Expansion · long-term · High confidence 36 plus 7 years
    This is about 36 plus 7 years contract for us.

    — Deepak Chand Thakur

Market Size

  • RegTech (Risk Intelligence) Indian market size Market Size · current · High confidence $2 billion
    So for example, let's say, if I take RegTech, which is a Risk Intelligence platform, right, we have a $2 billion market size. So is it in an Indian market size, like, $2 billion? ... Indian. That's our calculation of the products.

    — Deepak Chand Thakur

Revenue

  • Quarter-on-quarter growth Revenue · ongoing · High confidence 10% minimum
    I think the only dip which happened in Q3. Apart from that no quarter is there which has reached to 10% minimum it is above that.

    — Deepak Chand Thakur

Product Development

  • BBPS B2B completion Product Development · Q1 by 30th June · High confidence completed
    So BBPS B2B, I think we have -- we will be completing -- we'll be completing this in Q1 by 30th June, which I have mentioned in one of my slides.

    — Deepak Chand Thakur

Market Opportunity

  • ONDC platform market opportunity Market Opportunity · current · High confidence 10 billion
    Similarly, you're saying ONDC platform is another 10 billion market opportunity.

    — Shrinivas (Analyst)

Risks & concerns

  • Declining UPI Incentives / MDR Uncertainty

    medium

    Government incentives for UPI have significantly reduced, raising questions about future revenue models for UPI service providers. Management views this as an opportunity for new revenue streams like interchange income from credit card on UPI and risk-based modeling.

    Analyst acknowledged

  • Time to Rebuild After Q3 Impact

    medium

    The Q3 issue required a '3-pronged strategy' including de-risking and diversification, which took time to implement and re-establish, thus impacting Q4's ability to fully recover to previous revenue peaks.

    Management acknowledged

  • Replicability of Products / Competitive Landscape

    low

    Analyst questioned the difficulty for competitors to replicate NPST's new products and customer relationships. Management emphasized that while building products isn't hard, adding value-added services, expertise, and ensuring compliance is key, along with long-standing customer relationships.

    Analyst downplayed

Areas of evasion (2)

  • Specific Q4 revenue number (implied by analyst, not explicitly stated by management)
  • Specific overall revenue guidance for FY26

Q&A highlights

3 direct
UPI MDR and Revenue Share Model Direct
So other than your account-based transactions, rest all has interchange income. MDR is charged to the merchant, there is an interchange income that goes to bank. And by virtue of being a technology partner in this domain, there is a percentage share of that interchange income which bank pays us.

Clarifies NPST's evolving revenue model in the UPI ecosystem, focusing on interchange share from banks for credit card and NCMC transactions, rather than direct MDR.

Asked by Rupesh Tatiya

Q3 FY25 Revenue Decline and Recovery Strategy Direct
So let me tell you there was a 3-pronged strategy. One is obviously, we took guidance from our Board and all the guys that has been working with us. One is de-risking the entire existing model... And then whatever time we have taken, we have been able to re-establish that. But not stopping there, it was important to diversify the allied services and the similar payment model.

Addresses the significant Q3 revenue impact and explains the strategic shift towards diversification and de-risking, outlining the efforts taken to rebuild and ensure consistent growth.

Asked by Harish Kumar Gupta / Gopi P

Global Expansion Strategy and Product Ownership Direct
We are in discussion with multiple partners, because we decided to go with the partner model, channel partner model. We want to play a specific role around OEM so that the IPR and those kind of quality ownership is with us. And that is where we decided to focus on the solutions alone.

Provides clarity on the company's international market entry strategy, emphasizing product ownership (IPR) and a channel partner model, which is crucial for scalability and margin.

Asked by Ashish Soni

3 min read 6 chapters

Detailed narrative

Strong Q4 FY25 Recovery and Annual Performance

Network People Services Technologies Ltd. reported a strong Q4 FY25, showing a 24% Q-o-Q jump over Q3 results, with revenue around INR 24.5 crores. For the full FY25, the company achieved significant growth, with revenue increasing by 39-40% to INR 180 crores, up from INR 130 crores in FY24. Profitability also saw a notable improvement, with EBITDA margin expanding from 35% to 37% and net profit margin increasing from 20% to 25%. Earnings per share (EPS) for FY25 jumped 68% to INR 23.27 from INR 13.85 in FY24, reflecting a positive financial turnaround.

Strategic Diversification and De-risking Initiatives

Following the impact experienced in Q3, management implemented a comprehensive '3-pronged strategy' focused on de-risking and diversification. This involved strengthening core values, re-establishing payment flows with multiple banks, and expanding into allied services to build a more robust revenue model. The company's efforts aim to ensure consistent growth and prevent future vulnerabilities by not relying on a single business segment, with a commitment to a minimum 10% quarter-on-quarter growth.

Key Deal Wins and International Expansion

NPST secured 6 new orders worth over INR 100 crores for the next 4-5 years, with 5 of these being SaaS-based, indicating a shift towards recurring revenue. A significant domestic win includes a INR 70 crore order over 5 years from the Central Bank of India for offline payments. Internationally, the company achieved a major milestone by cracking a multimillion-dollar contract in Africa to build digital payment infrastructure. This 36 plus 7-year deal's execution has already started in Q1 FY26, marking NPST's first technology foray into the African continent.

New Product Launches and Market Opportunities

The company is aggressively pursuing new growth avenues with 4 new product launches planned for Q1 FY26. A key offering is an AI-based risk engine (RegTech), which has already secured three orders even before its official Q2 launch, targeting an estimated $2 billion Indian market. NPST is also focusing on BBPS corporate payments, expected to be completed by June 30, and is actively engaging with the ONDC platform, identifying a 10 billion market opportunity in the financial services segment.

Talent Pool Expansion and Operational Outlook

To support its ambitious growth and new initiatives, NPST plans an estimated 30% incremental talent addition in FY26, with 60-65% of this growth focused on the tech and product domains. Management expects new businesses to start contributing to the P&L from the first half of FY26. The company's operational strategy emphasizes a partner-led model for global expansion, focusing on owning the Intellectual Property Rights (IPR) for its solutions while leveraging local channel partners for service delivery.

UPI Ecosystem Evolution and Revenue Model

Addressing concerns about declining UPI incentives, management clarified NPST's evolving revenue model. The company is shifting towards generating interchange income from credit card on UPI and NCMC prepaid businesses, where banks share a percentage of the interchange. While per-transaction realization might see a slight decrease (e.g., from INR 0.05 to INR 0.04), the anticipated massive increase in transaction volume is expected to offset this, ensuring continued revenue growth in the dynamic UPI ecosystem.

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