NPST Q2 FY27 income rises 50% as EBITDA margin falls to 23.60%

Network People Services Technologies Ltd reported Q2 FY27 total income of Rs 72.95 crore, up 50% year on year for the quarter ended 30 September 2026, while EBITDA margin declined to 23.60% from 29.22% a year earlier as direct expenses rose 98% to Rs 38.26 crore.

Why did NPST total income rise in Q2 FY27?

NPST’s total income increased by Rs 24.27 crore year on year and Rs 11.53 crore sequentially to Rs 72.95 crore in Q2 FY27. Revenue was Rs 67.74 crore, up 45% from Rs 46.68 crore in Q2 FY26 and 20% from Rs 56.48 crore in Q1 FY27. Other income reached Rs 5.21 crore, compared with Rs 2 crore a year earlier and Rs 4.94 crore in the preceding quarter.

The quarterly increase was supported by both reported revenue and other income. Revenue represented Rs 67.74 crore of Q2 FY27 total income, while other income accounted for Rs 5.21 crore. Total income had risen from Rs 48.68 crore in Q2 FY26 to Rs 61.42 crore in Q1 FY27 before reaching Rs 72.95 crore in Q2 FY27.

How did NPST’s Q2 FY27 profitability change?

NPST’s reported EBITDA, or earnings before interest, tax, depreciation and amortisation, rose 17% year on year to Rs 15.99 crore in Q2 FY27, but its EBITDA margin fell to 23.60%. The margin was 29.22% in Q2 FY26 and 24.52% in Q1 FY27, marking declines of 5.62 percentage points year on year and 0.92 percentage points quarter on quarter.

Net profit increased faster than EBITDA in the quarter, reaching Rs 13.21 crore, up 34% from Rs 9.84 crore in Q2 FY26 and 20% from Rs 11.05 crore in Q1 FY27. Profit before tax was Rs 16.94 crore, an increase of 26% year on year, while tax expense was Rs 3.73 crore, up 2% from Rs 3.65 crore a year earlier.

Net profit margin was 18.11% in Q2 FY27, compared with 20.21% in Q2 FY26 and 17.99% in Q1 FY27. The reported net margin improved by 0.12 percentage points sequentially, while remaining 2.10 percentage points below the year-earlier level. Earnings per share were Rs 6.34, up from Rs 5.26 in Q1 FY27 and Rs 5 in Q2 FY26.

Which costs rose faster than NPST’s income?

Direct expenses were the largest reported cost pressure in Q2 FY27, rising 98% year on year to Rs 38.26 crore, compared with a 50% rise in total income. Direct expenses also increased 28% from Rs 29.86 crore in Q1 FY27, exceeding the 19% sequential growth in total income. This cost line was Rs 19.36 crore in Q2 FY26.

Other expenses rose 17% year on year to Rs 3.66 crore and 38% sequentially from Rs 2.65 crore. Employee expenses moved in the other direction, declining 7% year on year to Rs 9.83 crore and falling 3% from Rs 10.12 crore in Q1 FY27. Finance costs were Rs 0.17 crore, unchanged from Q2 FY26 and 19% lower than the Rs 0.21 crore reported in Q1 FY27.

Depreciation and amortisation were Rs 4.09 crore in Q2 FY27, up 107% from Rs 1.98 crore a year earlier and unchanged from Q1 FY27. Total expenditure reached Rs 56.01 crore, 59% above Q2 FY26’s Rs 35.19 crore and 19% above Rs 46.93 crore in Q1 FY27. The difference between the 59% rise in expenditure and the 50% rise in income coincided with the lower reported EBITDA margin.

How did NPST perform in the first half of FY27?

NPST reported H1 FY27 total income of Rs 134.37 crore for April to September 2026, up 60% from Rs 83.76 crore in H1 FY26. Revenue increased 55% to Rs 124.22 crore, while other income rose 193% to Rs 10.15 crore from Rs 3.46 crore. The first-half result includes the Rs 72.95 crore total income recorded in Q2 FY27.

H1 FY27 EBITDA was Rs 29.84 crore, 27% above Rs 23.48 crore in H1 FY26, but the EBITDA margin fell to 24.02% from 29.24%. The first-half margin contraction of 5.22 percentage points occurred as direct expenses increased 119% to Rs 68.12 crore, compared with a 60% increase in total income.

Net profit for H1 FY27 rose 42% to Rs 24.26 crore from Rs 17.06 crore, and profit before tax increased 36% to Rs 31.43 crore. Earnings per share increased 34% to Rs 11.63 from Rs 8.70. Total expenditure was Rs 102.94 crore, up 70% from Rs 60.59 crore, while employee expenses were broadly unchanged at Rs 19.95 crore versus Rs 20 crore in H1 FY26.

What does NPST plan to execute after Q2 FY27?

NPST has initiated a development and readiness programme of about six months for Compliance-in-a-Box, a platform that combines five modules: AI risk decisioning, enterprise fraud risk management, data privacy compliance, payment security hardware and early warning signals. Management’s roadmap sets a 2027 commercial-launch target and an initial ambition to reach more than 100 banks by March 2028, within an addressable market stated as more than 1,800 banks.

The proposed revenue model includes implementation, licence and recurring platform fees, with cross-selling of multiple products. The programme was initiated in Q2 FY27 and builds on existing banking relationships, the company’s RegTech delivery record and its Bank-in-a-Box footprint. These are disclosed plans and ambitions rather than reported Q2 FY27 revenue contributions.

NPST also says its AI transformation moved from foundations in Q1 FY27 toward standardisation and automation in Q2 FY27, with Q3 FY27 identified for that stage and Q1 FY28 for AI-enabled support functions. Management says the programme is on track for an approximately 30% efficiency target and cites AI governance aligned with Reserve Bank of India draft model-risk guidance, ISO/IEC 42001 and data privacy requirements.

Conclusion

NPST delivered higher income, EBITDA, profit before tax and net profit in Q2 FY27, with total income rising 50% to Rs 72.95 crore and net profit rising 34% to Rs 13.21 crore. The cost profile changed at a faster rate: direct expenses grew 98% and total expenditure grew 59%, coinciding with a reported EBITDA-margin decline to 23.60%.

The next disclosed milestones are the approximately six-month Compliance-in-a-Box readiness programme begun in Q2 FY27, the targeted 2027 commercial launch and the ambition for more than 100 banks by March 2028. Investors can also watch progress through Q3 FY27 on standardising and automating AI workflows, against management’s approximately 30% efficiency target.