NPST's Q2 FY26: A Deep Dive into Digital Payment Innovation and Growth

Network People Services Technologies Ltd. (NPST) has reported a robust performance for the second quarter of Fiscal Year 2026, showcasing significant growth across its key financial metrics. The company, a prominent player in the digital banking and payments technology sector, demonstrated its resilience and strategic execution, delivering impressive quarter-on-quarter improvements. For Q2 FY26, NPST's total income surged to INR 48.61 crore, marking a substantial 39% increase from the previous quarter. This strong top-line growth was complemented by a healthy expansion in profitability, with EBITDA rising by 40% to INR 15.72 crore and net profit climbing 38% to INR 9.93 crore. The company successfully maintained a strong net profit margin of 20.42% and an EBITDA margin of 32.34%, underscoring its operational efficiency and effective cost management.

The company's performance reflects its successful strategy to de-risk and diversify its business model, a commitment made after a revenue impact experienced in the previous year. NPST has rapidly expanded its product portfolio and market reach, particularly in the Technology Service Provider (TSP) and Payments Platform-as-a Service (PPaaS) verticals. The TSP segment remains the primary revenue driver, contributing approximately 85% of the total income, through offerings like UPI, IMPS, and Banking Connect. The PPaaS segment, which includes online merchant acquiring and management solutions, accounted for the remaining 15%. While the RegTech vertical, focusing on fraud management and compliance, is a strategic long-term growth area with a high fraud prediction accuracy of over 90%, its revenue contribution is currently negligible as the company focuses on establishing its brand and expanding its reach.

Strategic Initiatives and Market Expansion

NPST is actively pursuing several strategic initiatives to capitalize on the burgeoning digital payments market in India and beyond. A key upcoming launch is Evok 4.0, the re-engineered payment platform, expected by December 2025. This platform aims to address critical industry challenges such as early settlement, enhance banks' CASA growth, and improve success rates for payment aggregators. Evok 4.0 will also introduce new revenue streams, including Prepaid Payment Instruments (PPI), Cash @ POS, and Early Settlement capabilities, further strengthening NPST's position in the payment ecosystem.

Another significant initiative is the 'Bank-in-a-Box' solution, designed to offer a quick, low-cost, SaaS-based model for small to mid-sized cooperative and regional rural banks. This initiative has already secured confirmed orders and is expected to unlock opportunities with around 2,000 banks across India. Similarly, 'Banking Connect' addresses the interoperability gap between net banking and mobile banking, positioning NPST as one of the first TSPs to offer this RBI-compliant solution. These product launches are central to the company's strategy of increasing SaaS-based revenue and expanding its market penetration.

Global Ambitions and Future Outlook

Beyond domestic growth, NPST is actively exploring international markets, aiming to replicate its success in Africa in new geographies such as UAE and Southeast Asia. The management believes these markets offer higher revenue per ticket and larger contract sizes, presenting significant growth opportunities. While international expansion is a gradual process, the company is investing in dedicated teams and participating in numerous enquiries to build a strong global presence. The focus is on a hybrid revenue model that combines delivery implementation fees with recurring monthly SaaS revenue.

For the RegTech vertical, NPST has launched five fraud detection modules within its Risk Intelligence Decisioning Platform (RIDP), which is already live with two banks. The company projects a substantial 200% growth in the RegTech market over the next four years, driven by increasing regulatory focus on digital payments and the need for compliance automation. NPST plans to dedicate the next 2-3 quarters to establishing the RegTech brand and expanding its reach across multiple segments.

Management's Vision for Sustained Growth

Management expressed confidence in achieving its targeted revenue growth for Q3 FY26, potentially reaching previous peak revenue levels. The focus for the second half of FY26 will remain on increasing revenue streams in the payment platform, securing new accounts in TSP, generating SaaS-based revenue from RegTech and Bank-in-a-Box, and enhancing merchant presence through recently launched products. The company's proactive approach to innovation, compliance, and market expansion, coupled with its strong financial performance, positions NPST for sustained growth in the evolving digital payments landscape. The management's commitment to building strong delivery fundamentals and investing in AI for internal efficiency further underscores its long-term vision.