Network People Services Technologies Limited (NPST) has reported its financial results for the second quarter of fiscal year 2026, along with several corporate actions. The company's board meeting, held on November 12, 2025, addressed various financial and operational matters.

Financial Performance

For Q2 FY26, NPST reported:

• Total income of ₹48.61 crore, a 38.75% increase from ₹35.04 crore in Q1FY26
• EBITDA growth of 39.48% to ₹15.72 crore with margins at 32.34%
• Net profit increase of 38.39% to ₹9.93 crore

Business Highlights

• Secured new orders, including one from a large PSU bank with 3,300 branches and 4 crore customers
• Expanded QR and Soundbox services to six new states
• Launched new products including Bank-in-Box for cooperative banks
• Preparing to launch Evok 4.0 in December 2025
• Added 11 new payment aggregators
• Signed fourth bank for Payment Platform-as-a-Service

Corporate Actions

Stock Option Allotment

The board approved the allotment of 8,900 equity shares under the NPST Employee Stock Option Plan 2023 for the third tranche.

CSR Committee

A Corporate Social Responsibility Committee was constituted.

Related Party Transactions

The board reviewed related party transactions for the first half of FY 2025-26.

Preferential Allotment

NPST confirmed no deviation in the utilization of proceeds from its preferential allotment of 14,46,500 equity shares worth ₹300 crore. The funds remain unutilized and are currently invested in fixed deposits with ICICI Bank, earning a 5% return.

Regulatory Compliance

The company acknowledged payment of penalties for non-compliance under SEBI regulations and implemented corrective measures to strengthen internal compliance controls.

Subsidiary Operations

NPST incorporated a wholly-owned subsidiary, NPST Global Solutions LLC, in Dubai, UAE, on April 24, 2025. The equity capital for this subsidiary was remitted on July 1, 2025.

Monitoring Agency Report

CARE Ratings Limited, acting as the Monitoring Agency for the preferential issue, reported no deviation from the stated objectives for the funds raised. The total amount of ₹300 crore remains unutilized as of September 30, 2025, and is held in a fixed deposit.

NPST operates across three business segments: Technology Service Provider (TSP), Payment Platform-as-a-Service (PPaaS), and RegTech, serving banks and regulated entities with products including UPI, IMPS, CBDC, and fraud management solutions.

Network People Services Technologies Limited (NPST) has released its financial results for the second quarter of fiscal year 2026, alongside significant corporate actions including a major capital raise.

Q2 FY2026 Financial Highlights

For the quarter ended September 30, 2025, NPST reported:

• Revenue from operations of Rs 4,667.69 crore
• Total income of Rs 4,867.41 crore
• Profit before tax of Rs 1,349.21 crore
• Net profit of Rs 984.45 crore

Half-Year Performance

For the first half of FY2026 (April 1, 2025 to September 30, 2025), the company achieved:

• Revenue from operations of Rs 8,029.91 crore
• Total income of Rs 8,376.33 crore
• Profit before tax of Rs 2,315.89 crore
• Net profit of Rs 1,704.56 crore

Rs 300 Crore Preferential Issue

NPST has raised Rs 300 crore through a preferential allotment to Tata Mutual Fund. The company allotted 14,46,500 equity shares at Rs 2,074 per share, which includes a premium of Rs 2,064 per share. As of September 30, 2025, the company had not received in-principle approval from stock exchanges for listing these shares.

The funds raised are allocated for three main purposes:

1. Global expansion and brand building (Rs 60 crore)
2. Accelerating growth through product development, infrastructure enhancement, and strategic acquisitions (Rs 170 crore)
3. General corporate purposes, including fundraising costs (Rs 70.00 crore)

According to the monitoring agency report, the entire Rs 300 crore remains unutilized and is currently invested in a fixed deposit with ICICI Bank, earning 5% interest. The company has until September 4, 2027, to utilize these funds as per the offer document.

Other Corporate Actions

• The board approved the allotment of 8,900 equity shares under the NPST Employee Stock Option Plan 2023.
• NPST incorporated a wholly-owned subsidiary named NPST Global Solutions LLC in Dubai, UAE, on April 24, 2025.
• The company addressed a non-compliance issue under Regulation 28(1) of the SEBI Listing Regulations, paying fines to both NSE and BSE.

Company Overview

NPST operates in the IT services sector, focusing on software and payment solutions for the banking, corporate, and finance sectors. The company's consolidated results include its subsidiaries: SSK Citizen Services Private Limited, Timepay Digital Infotech Private Limited, and NPST Global Solutions LLC.

Investors and stakeholders may want to monitor the deployment of the newly raised capital, as it could impact future growth and expansion plans. The utilization of these funds will be crucial to watch in the coming quarters as NPST aims to strengthen its market position and expand globally.