Network People Services Technologies (NPST) Q3 24/25 earnings summary

Executive summary

• Revenue for Q3 dropped to INR 23.23 crore from INR 31.39 crore YoY and INR 68.97 crore QoQ due to policy changes affecting the cooperative bank segment in the payment platform vertical.

• Despite revenue decline, EBITDA margin remained strong at 35.33% (INR 8.21 crore) and PAT at INR 5.14 crore, maintaining a 22% PAT ratio.

• NPST is a leading PayTech company with 11 years in business, serving 17+ banks and 100+ customers, processing over 50 million daily transactions and 18 billion annually.

• Management emphasized the temporary nature of the revenue dip, with business risk mitigated and diversification into private, payment, and small finance banks.

• New product launches and technical upgrades accelerated, including RegTech, AI/ML fraud prediction, Credit Line on UPI, and BBPS monetization.

Financial highlights

• 9M FY25 consolidated total income rose 78.53% YoY to ₹152.46 Cr; EBITDA up 96.15% YoY to ₹55.71 Cr; net profit up 133.08% YoY to ₹38.90 Cr; basic EPS up 133.10% YoY to ₹20.07.

• Q3 FY25 consolidated total income fell 27.57% YoY to ₹23.23 Cr; EBITDA down 25.30% YoY to ₹8.21 Cr; net profit down 21.38% YoY to ₹5.13 Cr; basic EPS down 21.36% YoY to ₹2.65.

• Gross Transaction Value (GTV) dropped by 90% in Q3.

• Cash flow from operations in FY24 was ₹43.05 Cr, with closing cash and equivalents at ₹58.41 Cr.

• Consolidated net profit for the quarter was ₹513.44 lakhs, with nine-month net profit at ₹1,814.56 lakhs.

Outlook and guidance

• Management expects Q4 to show significant improvement as onboarding resumes and new banks are added, but achieving the lower end of 75% annual growth guidance is now uncertain.

• Full-year guidance will be reassessed after Q4, with aspirations to maintain high growth as new segments are monetized.

• NPST aims to strengthen its core, scale new verticals, and expand into new markets such as the Middle East.

• The company is targeting significant opportunities in UPI, credit lines, RegTech, and merchant acquiring, with UPI transaction value projected to reach ₹483 trillion by 2029.