Network People Services Technologies (NPST) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 total income grew 25% sequentially to INR 35.09 crore, with EBITDA up 7.5% and net profit rising 19.7% year-over-year to INR 7.19 crore.

• Major revenue contribution came from the TSP business, while PPAS revenue began scaling and is expected to grow significantly in coming quarters.

• Received first dollar-denominated remittance from Africa, marking a milestone in global expansion.

• Secured in-principle commitment from Tata Mutual Fund for a preferential issue of INR 300 crore, with EGM scheduled by August 10 for approvals.

• Consolidated and standalone unaudited financial results for the quarter ended June 30, 2025, were reviewed and approved by the board on August 8, 2025.

Financial highlights

• Total income increased from INR 28 crore in Q4 to INR 35.09 crore in Q1, a 25% sequential rise.

• EBITDA rose to INR 11.3 crore, a 7.5% increase quarter-over-quarter, with margin at 32.20% in Q1 FY26.

• Net profit grew to INR 7.19 crore, up 19.7% year-over-year, with diluted EPS at 3.70.

• Net profit margin at 20.50% in Q1 FY26, compared to 21.38% in Q4 FY25.

• Consolidated revenue and net profit rose sequentially but declined year-over-year.

Outlook and guidance

• Management anticipates Q3 to surpass the highest quarterly performance achieved last year, with continued strong growth expected.

• PAT growth strategy targets 20% year-over-year, with incremental trends expected in Q2 and Q3.

• SaaS-based hosted solutions for small and mid-sized banks and aggressive onboarding for hosted cloud and PPaaS are expected to drive future revenue.

• Expecting meaningful international business volumes within 12 months, especially from Africa and UAE.

• The company continues to focus on its core business in the banking and finance sector and has expanded internationally with a new subsidiary in Dubai.