Ladies and gentlemen, good day and welcome to Network People Services Technologies Limited Q1-FY 2026 Earnings Conference Call hosted by Kirin Advisors Private Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Harshil Ghayshyani from Kirin Advisors. Thank you, and over to you, sir.
Excellencies, on behalf of Kirin Advisors, I would like to extend a warm welcome to everyone joining for the NPST Q1-FY 2026 earnings conference call. We are pleased to have with us today the esteemed senior management, Mr. Deepak Thakur, Chairman and Managing Director, Mr. Ashish Aggarwal, Joint Managing Director, and Ms. Shweta Vyas, Executive Director. The call is aimed for a coffee to teaching matters to ensure that everyone has the opportunity to participate. We kindly request that each participant can participate with their questions to help them understand others as many as queries possible within the time frame. If we are unable to address any questions during the call, please feel free to reach out to our staff. info@kirinadvisors.com will be happy to coordinate with the management team and arrange further discipline. We appreciate your understanding and cooperation.
We look forward to an engaging and productive call. Now I hand over the call to Mr. Deepak Thakur. Over to you, sir.
Thanks, Harshil. Good evening, everyone. A very good evening to all our shareholders. First of all, I would like to thank everyone on behalf of my team for staying with us on this journey. We are back on the growth track that we have shown last year, the efforts to make this. It has been majorly through our tech, product, ops, sales, and support functions. Everyone contributing, I really thank them for this. I also thank our board for backing up very strongly when it was required. You know, the results are only upward from here. What I'll do is I will just, like I usually do, split this call into three to four sessions. One is I'll give you a very quick analysis on the quarterly number that we have posted.
Secondly, we'll give you a quick idea about the business updates, which will give you some sense about the immediate and the long-term impact over the business. I'll also let you know some roadmaps that we have built, which is going to trigger a larger potential for the company as and when we go forward. That's something to look up to. I'll open this up for the Q&A. The total income for Q1 has grown by almost about 25% as compared to Q4. This is about, you know, from INR 28 crore, we have gone to about INR 35 crore odd. Although you see there is 500 basis points within EBITDA percentage, now major contribution, of course, coming from TSP business. That's been the nature of the business.
However, the absolute number is on a higher side, which is about 7.5% higher from INR 10.5 crore to about INR 11.3 crore. At the same time, net profit is about 19.7% higher from INR 6 crore. It has gone to about INR 7.19 crore. This being the first quarter for FY2026, we have successfully presented our financials in accordance with NDA along with the comparative figures from the previous year. We have also received our first dollar denominated remittance from the opportunity we secured in Q1 from Africa, making a key milestone in our global expansion journey. We are actually leveraging the technology we have built indigenously for the global market. Apart from this, now there's a big news, which is coming from NPST's post. I guess you guys are already aware about this.
We have received in-principle commitment from Tata Mutual Fund for a preferential issue of around INR 300 crore. We have EGM due by August 10 to take all your approvals. So that we can further proceed with the process of completing the transition. Now, you know, what does this mean? It further validates our strong positioning in the tech industry. It further talks about our growth story, which will continue over a long-term period. Our strategic steps and decisions, which are not limited to what we are doing, but the agility with which we are picking up the opportunities, tolerating industry use cases, and creating a revenue roadmap by building value proposition in the industry. That has been the forte of NPST. Our performance over the last three years and the potential that we have built for the next decade.
It further boosts our plan to expand our market as well as product. It will help foster the requirement we have around an inorganic approach for business product and service growth. At the same time, we must also understand that it brings a very, very strong institutional support available for the organization growth and, of course, the brand recognition. Apart from this, when it comes to business updates, again, like I always break up, in TSP business, we successfully, you know, apart from getting a panel with the leading banks, this time we also got a panel with the government PSU, looking at an opportunity in this segment. We have secured a major bill pay order from a large PSU. Now this reinforces our, you know, position in the bill payment segment. We are driving deeper engagement with corporates and fintechs by getting into the turnkey corporate solution.
At the same time, PPAS business, you know, which everyone wants to hear, we have started scaling steadily with significant growth projected in the upcoming quarter. The scaling has already started. Beyond PPAS, we have started collaborating with large merchant federations, which we have already signed that gives us access to, you know, mid- large, 1 50 yard merchants. At the same time, we are strategically partnered with industry players, which gives us access to 50+ banks who will be getting onboarded for the offline payment platform. We have expanded our ecosystem by adding additional payment aggregators this quarter. We are strategically planning to introduce a new revenue stream, which is around, you know, the autopay and payout. We have already given the access to our partners. We are testing it. I presume it will start adding revenue between this and the next quarter.
At the same time, we have safeguarded our rails by applying AI-capable fraud monitoring systems. Beyond this, the additional area, which, you know, last year was not contributing to our P&L, but like I said, the agility with which we work is trying to add more and more opportunities and more and more products every year. That is the acceptance ecosystem. One big order, which you heard last time, was the Central Bank of India, which we got at the end of Q4. We have now secured additional orders from all our existing clients. We are preparing to launch 10 new devices in GSS, which is required as and when we are going forward. We are seeing the gap in the industry. That opens up a lot more opportunity for us. At the same time, we have identified an investment opportunity in the device-as-a-service model.
This will enhance our scalability in bringing business to the acceptance ecosystem. For the last one year, we have been working on building NPST's own hosted ecosystem. The idea was how do we bring all our products and services in one single environment and give it on a SaaS-based model. That is what we have been working on for quite long. Last quarter, we were able to complete our compliances. We are in a position right now that by this quarter, we should be able to get that piece done where all our products and services will be hosted for small to medium-sized banks, regulated entities, and fintechs. This opens up a lot of opportunity around this area. When it comes to global footprint, Q1 we got the order for the Africa opportunity somewhere mid-quarter. Let me tell you that we have enabled AI for the development strategy.
This is the reason why within two to two and a half months, we were able to execute and close phase one of the order. That's a really fast pace. This will become a potential strategy for the organization going forward. We are in active discussion with multiple partners in Southeast Asia, Africa, and the Middle East. Apart from this, we are currently in the process of working on new business models for immune products, which are going to open several new business models around IoT. That is one area of work. Second is we are also working on the NCMP payments transit. That is also one area that we are working on. Third is obviously, apart from wear and app, we see huge potential through the devices, the POS business. That is the area that we are also trying to target in this global fintech space.
That's majorly from us on the business updates. Beyond this, I would say, you know, let us get on a call, try to understand from you guys. I'm happy to, you know, answer any questions. Harshil, over to you.
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of [Aksha] from AK Investments. Please go ahead.
Hello, sir. Good evening. Thanks for the opportunity, and thanks for the good improvement in the finances.
Hi,
Am I you still audible?
Yeah, yeah, you're audible. You're a little low, but I can hear you.
Yeah, now it is better?
Much better.
Yes.
Sir, my first question is how much of our revenue was transaction-based and how much was tax-based in quarter one of FY 2026?
Quarter one, our major revenue was TSP, and very less, very less revenue from PPAS. It has picked up in this quarter. Just a second.
Okay. We are already progressing well on quarter on quarter, but year on year, we have shown very positive economic growth in these quarters. What is your thought process on upcoming quarters and how much do we see progress in FY 2026 as a whole?
We are very strong in our anticipation that somewhere by Q3, we will be briefing the highest quarter we achieved last year. That is well on mark. You can anticipate from that the positiveness in the organization. We have already picked up.
Okay, sir. My last question is, do we have any updates about MDR? Recently, one of the members said that UPI can't be free anymore and MDR will be implemented in UPI. Do we expect in the near time that MDR will be implemented in UPI and we will have some better, you know, growth about that?
This is a regulatory question. I would like to stay away from that because that's in the news and it has to be discussed by those who are decision makers around it. We embed our solutions, technology, the way regulatory landscape in India unfolds. Let us observe that and as a company, we'll try and see how to, you know, structure us. The question is not for us. It is for the regulator or maybe someone who is the decision maker that side.
Okay, sir. Okay. Sir, last one, sir, a small question. Payment gateways are our customers and they are not our direct competitors. Is that understanding right?
Absolutely correct. Payment aggregators are all our customers.
Okay. Okay. Payment gateway also, right?
Yeah.
Okay, sir. Okay. Thank you so much, and all the best for the future upcoming quarters.
Thank you .
Thank you. The next question comes from the line of Srinivas Uke from TIA. Please go ahead.
Hi, Deepak.
Hi, Srinivas.
[Tell me.]
Congratulations for the strong Q1 numbers.
Thanks.
My question is about the new launch that you talked about, the hosted cloud for payments product. I just wanted to understand how this is different from your competitors like Sarvatra, Jita offering these kinds of services. Is it a similar one or are you running in a mature?
One name was Sarvatra, the other one was Launch.
Okay.
From our segment, you see the industry is concentrated with just one or two players. If you try to understand the hosted delivery, which we currently have, the competition, again, if you split that competition product-wise, you will realize that all the products which have been built so far, now that's where, you know, they may have the edge.
Okay.
Every year, there are new products and solutions launched by the regulator. What we decided was every single product that we have, let us bring it on the hosted model. Although there is a consolidation, you may be aware that one big thing that happened early this year was corporate banks were also given the acquiring opportunity.
Nice.
Now this opens up gates for everyone who are in the call. There are about 70 odd acquiring banks, but total banks in UPI issuer is 670+ . Now look at the gap. We feel there is a great opportunity as and when the product multiplies every year. There will be product launches by regulator, product launches by NPCI, then there will be product demand by the customers. We see this as an equal opportunity for everyone. This is the right space where we feel SaaS-based revenue will kick in for the company when it comes to the payment and the digital solution being demanded. As and when we go ahead to cooperative banks, the small finance banks, all of them, the payment banks, or every fintech, they will require more and more digital solutions. Here onward, it's only upward of the demand.
This being consolidated between one, two, three players. I think there is a need for four, five, six also in this. They want to have that space.
I see. How many tenants are you planning? How many are pilot and how many do you think will be live in this year?
100+ tenants in the next 24 months.
I see.
We already have six lined up. As soon as we go live, we'll start with six.
Okay. My next question is, in your introductory comments, you talked about a new opportunity like the device-as-a-service model, right?
Yeah.
Can you walk me through how that works, like per device, economics, how it will work?
I think on the retail side, when you go to market, have you observed in the last few months, last six or seven months, you have started seeing band devices now? Have you started observing that you'll see EMU, TMD, SDU?
No.
Some band device in some model will shine somewhere.
Okay.
Until then, it was zero.
Okay.
Now what has happened is banks have started taking note of SaaS impact of acquiring an offline business and staying there. This is where the opportunity is much larger. The device-as-a-service model, what it usually does is it takes care of the entire KPI score for a bank to start entering into the offline business. Here again, there are two things we need to understand. We got some of the large orders in the country, including Central Bank of India, which happened last year. We are doing, you know, Karnataka Bank. We currently have about 11 odd banks where we are working. The learning is great. What we intend to do going forward is what more channel of payments can be added to these particular solutions. The device-as-a-service model works on per month per merchant SaaS-based revenue.
As and when you add more devices and more customers, the opportunity for the type of devices also multiplies. It can be static, it can be dynamic, it can be pocket, it can be any type. As and when this multiplies, the overall market demand increases. That's the device-as-a-service model.
Thanks for explaining that. My last question is about the AI fraud thing that you talked about. What kind of models are in production for your AI fraud in real-time scoring latency? What kind of models are in production?
There are three things that we'll be doing. One is at the enterprise level, we are going to plug in this particular solution as part of our payment platform, TakeAway. This goes as a value-added service. Every single acquiring bank and every single payment aggregator will be taking this product from us. Second, this is decoupled so that those who are already into this space and they need this product, they can also buy it beyond my acquiring space. That's what it does. What it essentially does is it predicts and gives you an idea that there is a possible fraud in the system, either through the bad merchants or through bad transactions. You need to address that. Basically, it starts triggering the alerts and then you have to take an action. We have done both as a part of our platform and as separate.
That's how we are working right now.
Thank you. The next question comes from the line of Suman Patara from Texas and Consultant. Please go ahead.
Hello. Hi, Deepak. Congratulations. Excellent numbers.
Hi, Suman.
Yeah, I have just two questions. One is, I believe you have raised a lot of cash. What are your plans for that?
I'll answer you first.
Yeah.
Okay.
Like I said earlier, one critical reason why we really wanted was to get an institutional backing and someone who would really understand our story and bring a lot of guidance to this organization. More than money, it was also about the kind of association and the kind of strength this organization can get in such kind of writing. That's something. When it comes to money, what we have done is we have a very structured and thoughtful process around the growth. Just a second, I will give you... One is we want to ensure that our growth path around inorganic structuring of the business is rightly aimed. One, product. Second, service. Third, business. Irrespective of the domain that we are operating, like it can be PPAS, it can be TSP, it can be acceptance ecosystem, it can be global opportunity, wherever possible. Now the organization is empowered beyond organic.
It can now take an inorganic leap. That's one.
Thank you.
The new area of interest, like, you know, what we further try to see is that what more can we do for the expansion. We build APIs and then we give best solutions, we give app solutions. The acceptance of payment beyond this is also through devices. We believe there's a huge gap. That's why we have a literally plan around Payment Infrastructure Development Fund by the government. That's the area that we really wanted to target because it not only has the domestic demand, it has the global demand. It is agnostic to the domestic design of payments. Now that is a specific vertical where we see a lot of opportunity. Third, beyond inorganic and acceptance, is our lot of focus around the building lending-based platform. Now here is what we want to do.
The opportunity that comes around the gap in credit card domain, and if you take global and if you take Indian market, and the gap you see with the number of card issued, the number of credit lines available around MSNE, SME, or the business segment, the number of credit lines available in the P2P segment. Now that's tremendously big. Going forward, it is only going to multiply. Having a platform around that will be a great opportunity for us. These are three to four areas where we feel there will be a right utilization of us.
Okay. Can you give some ballpark figure where you can be, say, three years down the line, four years down the line in terms of top line, 2029 or 2030?
The aspiration is very high. I don't want to bind it with numbers right now, because whatever numbers that we are looking at or whatever numbers we are calculating is based on what we are doing right now. There is a lot that we are developing and building, which will start hitting our P&L maybe three quarters down the line or six quarters down the line. The fundraising that we are doing right now, it will also have a significant impact. All that said and done, we of course want to go back to the trend that we set last year, every quarter, the things at which we are going, every year, the number that we were achieving. That's what we intend to achieve going forward from this financial year. It's not good to put a number to it for now.
Yes, the intent is let us brief the highest performing quarter in the next two quarters, and then from there, pick up the same trend, whatever we were trying to build. I hope that gives you an idea of what number we want to achieve.
Thank you. The next question comes from the line of Harish Kumar Gupta from SJ Marupat Rady. Please go ahead.
Hello sir.
Hello.
Hello. [Foreign Language]
[Foreign Language]
[Foreign Language]
[Foreign Language]
[Foreign Language]
[Foreign Language]
Okay, I think I got my answer. Thank you. Thanks a lot and congratulations for your.
Thanks, thanks sir.
Thank you. The next question comes from the line of Keshav from Nivitel. Please go ahead.
Thanks for the opportunity and congrats on the strong quarter. Can you please elaborate more on your hosted cloud for payments for that vertical?
We currently have all our solutions and forever we have been focused on the large to mid-sized banks, like Samsa Bank or two of the largest RRB in the country, second largest cooperative bank, one of the largest, you know, PPI holders in the country. That's how we have been working so far. Our solution was designed for large-scale consumption. Can we do a SaaS-based solution for small to mid-sized banks? Now that's a much larger opportunity. What we did was whatever solution we built in a decade, we have brought the solution in a structure wherein there is a lot of agility in terms of implementation, certification, deployment, and going live. When we have such kind of agility and the models are built in such a way that it's way too productized and there's very less customization, it brings down the cost severely.
Then consumption of infra, consumption of that, you know, service required to continue this kind of delivery. All that is part of the hosted platform. When we say hosted, it's not the infra; it's about the end-to-end turnkey solution required by a bank. For example, if you need UPI and your Deepak Pro solution provider, right from infra, applications, services, and the feature scheme. Going forward, whatever is the new industry trends, everything you have, you can look up to NPST. We wanted to bring all our learning, decade-long learning, onto a hosted platform and take it to these banks who are agile and who really look up to, you know, growth strategy. That's the hosted platform. UPI, IMPS, mobile banking, Omni, all of these will be hosted on this platform. The future.
Sorry, [audio distortion] server for this?
We'll be hosting it on a private cloud, which will be, of course, managed by the data center, not by us. The entire ecosystem will be built and certified by us. All the compliances around running that cloud will belong to us, whereas managing the security and infra will be done by the expertise who are running the data centers.
Got it. Out of those CNGs that you have raised, how much % are you putting on the storage related? That number is there.
Percentage of hosted?
Yeah.
No, we are driving it through our cash flow. As and when we scale further, like I said, whenever there is a growth opportunity through inorganic, going forward in a year's time, if this particular hosted solution demands some kind of strategic scheme, that is where we can look up to utilizing those funds. For now, we are driving it through our cash flow.
Thank you. The next question comes from the line of Nitin Gupta, an individual investor. Please go ahead.
Hello.
[Foreign Language]
Yes, sir.
Yes, sir. [Tell him]
Thank you for the opportunity. Deepak, we are lucky to be a part of panelists earlier in this call. My first question is with respect to the fundraising that we have done. I understand that you indicated a lot of things in which we will be working on. Solid fundraising may be required. Let's say it's only for the external or the implemented manpower that we'll be putting in. We require this or it's like a purchase of some hardware or something? Because I don't see this.
It varies, Nitin. Your name is Nitin, correct?
Yeah, yeah.
It varies, Nitin. For example, if it is acceptance ecosystem wherein there is an OpEx-based revenue over the period of, let's say, three years committed over the device-as-a-service model, in that case, if at all there is a need to pick up a larger order and the speed of delivery is way too fast, the demand has come really fast, in that case, if at all required, we can think about utilizing these funds for the hardware piece. That for us will be hardware. When it comes to building a very strong domain around lending, it will be a combination of the platform, people, process, everything taken together. When it comes to going forward and executing the hosted solution, and we feel that there is an opportunity to acquire a business, and that is with the customer, that is an opportunity for us.
That's why, Nitin, it varies with the kind of opportunity we see forward.
Okay. Okay.
Because, as I'm saying, we have been payment plan, right? If you want to scale it to lending, since the journey can be brought down from 24 months- 6 months, that's the opportunity that we want to capture. In that case, it can be people, process, everything taken together, platform, all things.
Okay.
Okay.
Thank you.
Thank you.
One final question I was wondering, I think it's still back in the pending call at NPST. I think one or two quarters back, you indicated that there were some 150 odd open positions in NPST.
Sorry, that was?
There are some 150 odd open positions with respect to hiring.
Correct, correct, correct.
Yeah, I was asking if you can update this information, and there is a solution like in the investor bank. If you can put in the employee accounts, will it be possible for you? Like in the investor bank, have this information published?
Okay.
That will be too cost efficient.
I think you want to understand with respect to the position. Help me understand the objective.
Yeah. The first one was with respect to the open positions, which were there. I think one of the important facts you had said was that there were some 150 odd open positions. I wanted to relate to actually, are we able to, what we are looking for in the market for the person? How are we basically moving on to that path? If you can indicate the employee counts on a quarterly basis, yes, I mean, basically, we have a services company to indicate that. If you can also include that information, then it will be helpful for us to just basically see how we are growing from a human resource perspective.
Employee as an indicator. You want to see employee as an indicator?
Yeah.
Correct.
Fine. Okay, fine, we can do that. Let me tell you that we still have 100+ open positions, and I think currently our headcount is more than 350. In fact, there is a growth. Beyond this, just to give you an idea about this, when you adopt a certain technology, now we all know what AI can do. I believe that this next one or two years is very critical for tech companies to understand the importance and adopt it. One of the use cases we had just called out right now was when we delivered the global project, we did not hire even a single person from outside. We just took our existing team, built the domain around the product that we had, and we just shifted a few people to this particular role. Within two and a half years, we were able to deliver that.
There can always be a, I want to understand that the incremental work, if you are trying to relate to that, may not necessarily be related to the headcount. However, the headcount will only multiply. That is what I can see right now. We still have 100+ open positions. We have added a much larger number of employees in the last one year. I hope that answers your question. I will give the feedback to my IR guys to include some indicator around it.
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. The next question comes from the line of Ashish Soni from Family Office. Please go ahead.
Regarding usage of the funds, in how much duration do you want to utilize? Whatever you spoke, I think it's lending platform you're targeting. Is that correct in terms of acquisition? Is my reading correct because your domain expertise is in payment space?
Yeah. We are building, we are extending credit line over payments. We are looking at that segment also. We don't want to let that go. Credit line over UPI is an area. Lending over payments is an area. Invoicing over payments is an area. These are all areas that we want to capture. It's not just lending, but also we have acceptance ecosystem. We have global growth. Wherever there is an inorganic opportunity in the existing set of business, it is spread across these areas. It will be way too early to, you know, close on these points.
In terms of the growth aspiration for the next three, four years, which areas or segments or verticals are you targeting as most prevalent? If you have any high-level thought process on that in terms of %?
We believe in payment platform, which was we actually felt that particular engine in the market and brought it first. That's one area that will continue to grow tremendously. This will follow the trend wherein UPI is going from 18 billion transactions a month to about 30, which was the initial target, and now 100 billion transactions a month. If that's the aspiration this country is holding on until 2029-2030, we are seeing that the market growth itself is 5X. Either we are 5X or we are more than. We see payment platforms as a much stronger contributor. Secondly, RBI brought in their vision document recently. We see a lot of potential around these respects, frauds, and compliances. That's for sure in the next two years, not in the first two years, but next two years will contribute heavily to the growth.
Third, all new payment products like internet banking, interoperability, that's a completely new stack. Great opportunity there. Digital currency, only with about 16, 17 banks. Again, regulatory demand. That's a great opportunity. What I'm trying to say is that there are so many new product requirements around payment, which will keep on getting added. If you want to ask me a question, payment platform is the first one. Second, for sure, is the Technology Service Provider domain, which we have built, all the new solutions coming in there. Third is the regulatory technology, which takes care of the frauds and the compliance requirements of regulated entities. Of course, I believe that acceptance ecosystem will play a much larger role in the entire space. We have much more that we are working on. Lending apps still not counted, but that will be a really big contributor.
That is, again, two years down the line. Global, that is again going to be another contributor. There are a lot of figures. The first two, three are critical for us to continue because that has really matured well.
In terms of headcount, you said AI, you didn't require too many headcounts. In terms of next two, three years, where do you see headcount growing? I suppose it will not grow in line with your revenues, right? It will be like lesser. Is that understanding correct?
I will just give you an idea that if you are taking headcount as an indicator, it may not be completely true. Headcount will continue to grow. Like even this year, probably my HR is sitting at taking 350 to 500 plus people. That's what they are sitting on right now. This may continue to multiply, but skill sets will differ. The type of people and the position will differ. AI will then bring down the laborers' jobs around tech and products. There, the headcount may not be required. It will not be like, you know, in 2024, if I was expecting 100 people to be hired in tech and products. For the same jobs today, I may not be hiring 100. I may be hiring 50 odd. The incremental number will always be there. That is what I'm trying to say.
In terms of disruption.
Sorry, go ahead, sir.
May we request that you return to the question queue for the follow-up questions, as there are several participants waiting.
Hello.
Thank you. The next question comes from the line of Harv Gandhi from HPMG Shares and Securities Limited. Please go ahead.
Hello. Congratulations on a good set of numbers. It's good to see that we are back on the track and ramping up very fast. Just a few questions on the line of the new stake which was sold. Yesterday, I saw there was a block deal where the promoter sold in the open market also. Was that a part of a requirement from Tata? Last year in Q1, we gave this information to our investors that whenever we go for the raise, as promoters, we would also be interested to add an OSS piece as well. Now, because we got that opportunity from Tata and they were actually looking at the overall size. I think that was informed, I guess, in the last Q1. I might have missed that. Apologies for mine. What happened? Q1, we took the board approval and then we had put this up already.
After one year, it expired, if I'm not wrong. I think my CS explained me this. Now this year, when we got onto main boards, we really got some really good interest from the market because we were in SME. We were not getting this kind of, you know, so that really helps. Sorry. What would be your holding post stake sale as well as the preferential if everything was as said?
Can you help answer that?
Yeah. Till now, we are 57.55% holding. After this dilution, it's near about 55%. After preferential sale, it will change, maybe around 51%.
Okay. Understood. Second question is on the business front where the INR 300 crores, out of this, all will be used for inorganic growth or do you plan to, you know, use INR 200 crores for inorganic? Is there an application in which you have in mind and how confident are or how have we selected our target company? Just your thoughts on those things.
You say as in when we go forward, you will get that in news. Just hold on to that. Again, it's not when you say inorganic, it's not about buying company. It's about services and it's about product as well. Maybe you will buy an IC, you will buy a product and buy a ready product, or middle and buy accounts, business, you know. That's about inorganic area. Second is building the entire vertical altogether. It's creating an absolute DNA for this segment around lending and acceptance ecosystem. Now that is also something that we are keen on. Going global, designing the solution such a way that we are able to capture larger leads in Africa, Southeast Asia, Middle East, that is also something where we feel that now we have a, now our hands are flexible. We can actually go beyond and go faster. That's like the overall objective.
It's not only inorganic.
Since you mentioned IP, I was just wondering, for the newer products which we have, do we have a registered IP for the architecture as well?
Yeah.
Registered?
Every single.
International market?
Not international, domestic. Every single solution till date is designed, conceptualized indigenously, and we hold the trademark and IP for that.
Okay, thank you. Thank you. That's it from my end. All the best for the future.
Thank you.
Thank you.
The next question comes from the line of Suman Patara from Texas and Consultant. Please go ahead.
Yeah. Hi, Deepak and Ashish.
Yes, Suman?
Yes. Can we just quantify what % of our operations are AI-based? Maybe three, four, five years down the line, what will be, what % will be the AI-based operations? Is it possible?
way too early, but I can just let you know that I have given goals within the organization to lifestyle, product, and ops. I have the goal this year to adopt AI to an extent of 30% of their entire workload. That's 30% of their entire workload, and it is this year's target. The tech products are all sticking together. Next year, we'll have to see how the industry evolves and what is the impact. Based on that, we can set the target going forward. I believe it is only going to be incremental.
Definitely. Definitely.
Yeah.
Maybe at some stage, one can go 50%, 70%, 80%.
Never know, I guess. The trend that we are seeing, we never know.
Fine, thanks. All the best.
Yeah, okay. Thanks.
Thank you. The next question comes from the line of Praseek Choudhary from Samarita Capital. Please go ahead.
Good evening, sir, and congratulations for a very good number and guidance for future. Sir, on our future for this Payment Platform as a Service where we are going to see a majority of the growth, how have we de-risked the business model there in terms of, like I saw in the presentation, that now we have three banks instead of one earlier. If you could maybe name those. Second, in terms of the end segment of merchants where we were getting business earlier, has that, and going forward, will that also diversify very significantly for us such that either on the bank side or on the end segment merchant side, we are not exposed to any single segment?
See, the thing is, we are, for the second one, the answer is simple. We are not acquiring merchants. We are not the aggregators. We sit inside banks' ecosystem and create the acquiring space between bank and payment aggregators. The idea is how do we bring the acquiring capability more and more in the payment space. That's how we look at it. On the other side is not direct merchant, but aggregators and the market merchants and bank customers and bank account holders. We don't look at a specific segment. It depends on what they bring in. We have built our structure in such a way that any merchant category, which is approved or authorized, they can use this particular platform. On the other side, I think that particular de-risking is always there. The second one is on the bank side. We initially had only cooperative banks.
Now we have a private sector bank, and then we have a payment bank. These are three types of banks, more than the name of banks. The type of banks also matter at the time of de-risking.
I hope that.
Has the business started with all three of them, the corporate?
Yeah.
Two of them, majorly. The third one is not, the third one is yet to pick up. It's taking time, but it will do this quarter. That's great. Great to hear. The last question, this major bill pay order from a large CSQ. If you could disclose what sort of range, is that order in terms of maybe 0 to 50 or 50 to 100 TR? No, no. That's not how the, it's not. It is, it is, such kind of orders are under, we are not, this is not, there is no hardware component in this. It's a software. The range is obviously over INR 1 crore. There is no doubt about it. Because bill pay was launched last year, and we were able to get a PSU bank within a year and then add multiple more accounts.
We have, I think, four or five accounts already on bill pay. This was a large fee, which we got through RSP. It's not INR 1,500 crore. It is under INR 2 crore. About 2, maybe.
Okay. Thank you, sir. I will get back to the team.
Yeah. Yeah.
Thank you. The next question comes from the line of Nitin Gupta, an individual investor. Please go ahead.
Thank you for the opportunity one more time. Just one question I was telling with regards to the guidance, which we have given for Q3 that fitting the all-time high quarter.
Guidance I've given for Q3 of this year?
Just a minute.
Yeah, is it better now?
Yeah, much better.
Yeah, I was saying the guidance is as in Q3 being the, I mean, we being able to get such our all-time high quarter into Q3 of current financial year. I was thinking is it, will it be completely organic or are we assuming some kind of an activation or something with our office will be?
Sorry, I missed that.
Organic, organic.
Okay. Thank you, but yeah, that's all from my side. Thank you.
Okay. Thank you. The next question comes from the line of Nishant from XGS. Please go ahead.
Hey, Deepak. Hi. I have multiple questions. One is that our margins have fallen down. Is that sustainable?
Yeah, it is. Basically, the contribution from PSU was higher. That's the nature of the margin that we usually have in PSU. Earlier, we had a balance with PSU and PPAS together. You will see the impact in the coming quarters.
What is the sustainable margin? I can see that June 2024 was 35%, September was 35%, and now it's 30%, right? Is it a range of 30%- 35%, or can I expect 35% margin to be sustainable?
It is 30 to everything you're referring to, right? It's around 32 if I'm not wrong. Yeah, it is always about 30. That's what we see in these operations.
Okay, I can see 29.24. Maybe I'm looking at a different number. The current quarter, I see 29.24. It's not an incentive on my screen.
It is 32. You're referring to EBITDA, no?
Yes, OPM margin, yes.
Maybe Deepak, due to on the basis of sale or total income, which is OPM. Yes, Deepak is right. We can anticipate more than 30%.
Okay. We mentioned that we will beat our September 2024 quarter. Are we saying in September 2025? Are we talking about sales only, or are we talking about OPM and PAT as well?
We are targeting all the categories. December, not September.
Okay.
As at 3.
Q2 being same, we will maintain that same 20% PAT growth strategy that we are maintaining.
Trends will pick up so that Q2 is much higher, and by then, that's the aim, to breach that mental block, you know, clear it in Q3.
What's the reason for the QIC? That will bring down our ROE and ROC this time. What are we planning to use that money for?
Okay, I'll answer that again for four times maybe.
No, sorry. I joined late, so my apologies. I can go back and refer to the recording if you have already heard it.
Please do that because I've answered almost four times now.
Yeah, that's fine about that. I joined late, so it's on me. I at least should have a transcript tomorrow. That's okay. I think that's all I had. Have you had any other wins like the South African project or the African project, which you mentioned last time, which I'm assuming might be Nigeria?
The focus was PPAS. I think activating and getting the review started on that is where we got one. Apart from that, I just said that there was a bill pay order that we got this quarter. Majorly, there are some wins, but it's not the number that I can put it here.
So looking.
We have previous large deals with, I think it is there in the presentation. If you can pick up from there in the business update section, we have given all our deals, understanding, as well as the signups and the new, you know, collaborations, all that we have put up there. In PPAS segment, there are aggregators that we signed. There is a federation that we signed. The order book is around 50+ banks in the offline QR space. Yeah, that's major.
Okay. How about credit card on UPI? Is that picking up now?
It's taking its time. It's not actually the number that can significantly impact.
Would I be okay to say that quarter on quarter from June 2025 to September 2025, we can look at 25% to 30% cash growth? Would that be a reasonable number?
What is the from June to September?
September. Last three quarters, December 2024 to March 2025, we had a good 20% growth.
It's about 20%, not right now. It will be only incremental.
Yeah, more than 20%, right? You are saying the skews of growth will stay, right?
Yeah.
I'm putting a number of 25- 30. It's a long number.
So, yeah.
I'm not giving a number. I'm just saying, am I on the right track? It's fine. I think that's all. Thank you. Thanks for taking my questions.
Thank you. As there are no further questions from the participants, I now hand the conference over to Mr. Harshil Ghanshyani for closing comments. Thank you, and over to you, sir.
Yes, thank you. Thank you everyone for joining the conference call of Network People Services Technologies Limited. If you have any queries, you can write us at info@kirinadvisors.com. Once again, thank you everyone for joining the conference call.
Thanks. Thanks, Harshil.
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Thank you. On behalf of Kirin Advisors, that concludes this conference. Thank you for joining us, and you may now disconnect your line.