Network People Services Technologies Ltd Q2 FY2026 Concall Summary

Key Takeaways

• Revenue recovery underway, Q3 peak in sight: After a deliberate de-risking and diversification push, management expects to hit the previous high revenue level (~₹66 crores) in Q3, with new revenue streams kicking in from Q4.
• Product engine firing on all cylinders: Banking Connect, Bank-in-a-Box, Queen's platform, a B2B merchant app, and a PPI wallet all launched or gained traction, expanding the addressable market toward ~2,000 small banks and new merchant segments.
• RegTech graduates from product to vertical: With fraud prediction accuracy above 90%, the company is investing the next 2-3 quarters to establish the brand and expand reach beyond the acquiring space.
• AI efficiency target is a moving floor, not a ceiling: Management set an internal goal of 40% productivity optimization but now believes the 2-3 year outcome will be "much larger," while cautioning that industry-wide efficiency gains will compress revenue per change request.
• What to watch next quarter: Whether Q3 revenue actually reclaims the ~₹66 crore peak, the pace of SaaS revenue share growth versus implementation, and any early traction signals from the Dubai and Africa expansions.

Revenue Recovery & Diversification

• De-risking completed: After a revenue impact last year, the company committed to de-risk and diversify, and has "arrived really heavy within last four quarters" by adding multiple revenue sources in the TSP business and a new sponsor bank for the EvoK platform.
• Q3 peak target: Management believes Q3 is when they will hit previous high revenue levels, with incremental impact from new streams carrying into multiple quarters for sustained growth.
• Receivable cycle shift: DSO has risen to ~115 days because the shift from payment platform to TSP billing cycles (60-90 days) has de-risked the business; this is expected to settle down as the company grows and adds more multiplier.
• No gaming ban exposure: The company had zero merchants on gaming MCC and no payment aggregators on its platform, insulating it from the regulatory impact that will hit payment aggregators harder.

Deepak Chand Thakur: "So whatever growth you are seeing, that growth creates a great traction. So the growth which we had, which you are saying vacuum, that is today also 10%-15%. If we prefer that journey, then there is more work to be done to fill vacuum."

Product Launches & Platform Evolution

• Banking Connect: Interoperability between net banking and mobile banking, with NPST one of the first TSPs to bring this solution to market; targeting ~2,000 small to mid-sized banks where hardly 10-11 are in pilot stage.
• Bank-in-a-Box: A SaaS-based, plug-and-play hosted ecosystem (Banking Connect, UPI, IMPS, Super App, BBPS) for small to mid-sized banks, built as a fast ATM, low-cost model.
• Queen's platform: Offline payment solution with a device-as-a-service model now getting multiple orders and SaaS traction.
• B2B merchant app: Launched as the first B2B merchant app in the country under the NBBL (NPCI body).
• PPI wallet: Launched with "great MDR" and already secured an order from one ERP vendor; if successful, will multiply with other ERP vendors.
• EvoK version 4.0: Re-engineering the entire payment platform to address early settlement, CASA growth pressure on banks, and high success rates for payment aggregators; launch by end of current quarter or early next quarter, with interoperability for payout on autopay to expand the target audience.

RegTech: From Product to Vertical

• Full vertical status: RegTech is no longer just a product but an entire vertical, with fraud prediction accuracy now above 90%.
• Near-term investment phase: The next 2-3 quarters will be spent establishing the brand and expanding reach to multiple segments beyond the acquiring space.
• Revenue contribution timeline: RegTech is expected to be a much better contributor on a 12-24 month maturity curve, lagging TSP and PPaaS which will drive the highest incremental revenue in the next 12-18 months.

Deepak Chand Thakur: "RegTech, which I spoke about in Q4 last year, is no more a product for us, but in fact, the entire vertical, which we believe will be a big thing in next four quarters."

AI Strategy & Efficiency Dynamics

• Internal productivity goal: Management set a target to optimize organizational productivity by at least 40% when they began about two quarters back, but now believes the 2-3 year outcome will be "much larger than the 40% goal."
• Competitive necessity, not margin arithmetic: The push for AI efficiency is defensive: if competitors deliver with 50 mandates while NPST uses 100, NPST loses its competitive edge. Delivery per person will multiply, but revenue per change request may go down, so the company must pick more business to compensate.
• Margin impact is directional, not absolute: Management declined to give a specific percentage-point margin boost from AI, arguing that when the entire ecosystem moves to AI-based development, efficiency becomes industry-wide and cannot be captured as an absolute figure for any single player.
• Conversation commerce: The company is already stepping into agent-ready APIs for payment over WhatsApp, SMS, voice, IVR, and ERP as additional efforts.

Deepak Chand Thakur: "Our goal is to, you know, optimize by about at least 40% when we began about two quarters back. I mean, we're thinking about it when we built it. But I believe our calculation may be misjudged when it comes to 2-3 years. It will be much larger than the 40% goal that we have. But that's the lowest that I think we should consider."

International Expansion

• Africa entry: TSP-side, SaaS-based revenue model; after implementation, a fixed set of revenue every month.
• Dubai operations opened: Participating in many enquiries; management hopes to replicate the Africa success in the UAE or Southeast Asia market.
• Next big break: The company intends to carve out a new team and invest in scouting for another large international opportunity similar to Africa.

Revenue Drivers & Monetization Tailwinds

• UPI growth not tapering: Growth will be sustained by credit card transactions on UPI, credit line transitions, UPI Global, cross-border transactions, and voice-based payments for rural India.
• MDR on credit card over UPI: Revenue not yet accounted for; as customers using credit card over UPI multiply, MDR will generate merchant revenue through interchange income, which will be margin-accretive and incremental.
• Credit line on UPI: Long-term potential; lending-based impact in the ecosystem will kick in and generate revenue including MDR, though it will still take time.
• SaaS share focus: All products (RegTech, PPaaS, Bank-in-a-Box, voice payment) are built on pay-per-use or MC model; management is focused on increasing SaaS share to bring a fair balance with implementation revenue, though this will take time.
• PSB merger tailwind: Consolidation will help the banking fraternity, but one vendor cannot manage 20% of the country's population on a digital platform; RBI's emphasis on de-risking technology stacks and bringing in redundancy creates opportunity for multiple vendors.

Guidance & Commitments

Key Metrics