Network People Services Technologies (NPST) Q1 26/27 earnings summary

Executive summary

• Achieved 75% year-on-year revenue growth in Q1 FY27, reaching INR 61.42 crore, with EBITDA up 66% and net profit at INR 11.4 crore; recurring SaaS-based revenue and international expansion enhanced earnings quality.

• Continued business transformation with diversification into RegTech, AI-based risk intelligence, and international markets, supported by a strong RegTech pipeline and new demand from DPDP implementation.

• International subsidiary began contributing to revenue, expanding the client base beyond India.

• Domestic PPaaS projections moderated due to MDR environment, but long-term upside remains if policy becomes favorable.

• Approved unaudited consolidated and standalone financial results for Q1 FY27, with no deviation in the use of preferential allotment proceeds.

Financial highlights

• Q1 FY27 consolidated revenue grew 75% year-on-year to INR 61.42 crore (₹5,648 lakh), with EBITDA up 66% to ₹18.79 crore (30.59% margin) and net profit at INR 11.4 crore (₹1,105 lakh), net profit margin 17.99%.

• Diluted EPS increased to 5.26 from 3.70 year-over-year.

• Employee expenses remained stable despite revenue growth, attributed to AI adoption and efficiency improvements.

• Significant increase in inventory and other expenses due to hardware components in turnkey projects.

• Standalone revenue and profit also grew significantly year-over-year.

Outlook and guidance

• Maintains full-year revenue growth guidance of 60%-70% CAGR for the next 2-3 years, targeting INR 320-340 crore for FY27.

• EBITDA margin guidance remains at 30% for FY27, with expectations to reach 35% in the next two years as international business grows.

• International revenue expected to rise from 10%-12% currently to 30% by FY28.

• Ongoing deployment of preferential issue proceeds for global expansion, product development, and infrastructure enhancement, with completion targeted by September 2027.

• Regtech demand is anticipated to increase due to regulatory changes and BFSI sector relationships.