Network People Services Technologies Ltd Management Discussions

Industry Analysis

Indias digital payments industry maintained strong
momentum during FY2025-26. UPI continued to
dominate retail payments, while banks accelerated
investments in payment infrastructure, fraud prevention
and regulatory compliance. As digital payments become
mainstream, technology spending is increasingly enabling
new use cases, improving security, interoperability and
customer experience.

UPI processed 241.62 billion transactions worth ^314
lakh crore during the year, growing 30% in volume and
20.6% in value. Merchant payments accounted for 62.7%
of total transactions, reflecting the continued digitisation
of commerce. In the absence of clarity on the MDR
framework, banks and payment providers are increasingly
focusing on value-added services such as merchant
acquiring, embedded credit and payment orchestration.

The industry also saw significant investment in payment
infrastructure. NBBL launched Banking Connect to
simplify internet banking integrations and improve
interoperability across banks and payment aggregators.
At the same time, the RBI continued to expand CBDC
pilots, reinforcing its long-term vision for digital
settlement infrastructure.

Risk management remained a key focus area. Rising
digital payment volumes have been accompanied by
an increase in cyber fraud and mule account activity,
prompting greater investment in Al-led fraud detection
and real-time monitoring. The RBI Innovation Hub
expanded the use of machine learning for fraud
detection, while banks continued strengthening their risk
management capabilities.

The regulatory landscape also evolved during the year.
The RBI issued 64 Master Directions to simplify the
regulatory framework. The implementation of the DPDP
Act and revised digital lending guidelines further increased
focus on consent management, data governance and
customer protection.

These developments are expected to accelerate demand
for payment technology, cloud-native banking platforms,
RegTech and Al-enabled risk management solutions.

Strategic Growth Driver

Bank in a Box

Banks across India are accelerating their digital
transformation while seeking to reduce implementation
costs, shorten deployment timelines and simplify
technology management. This trend is particularly
evident among cooperative banks, regional rural and
small/mid-sized banks, many of which require modern

digital banking capabilities without investing in multiple
standalone systems.

NPST is addressing this opportunity through Bank
in a Box, a subscription-based platform that brings
together digital payments, merchant acquiring, digital
banking and fraud management on a single platform.
By combining technology, operations, regulatory
updates and managed services under one commercial
model, the platform enables banks to modernise their
digital infrastructure with lower upfront investment and
predictable operating costs.

The increasing preference for managed technology
platforms is expected to support long-term demand
for Banking-as-a-Service solutions. With successful
deployments across cooperative banks and an
established presence in the banking ecosystem, NPST is
well positioned to expand adoption of Bank in a Box while
strengthening its recurring revenue base.

Banking Connect

The introduction of Banking Connect marks an important
step towards a more interoperable payment ecosystem.
By standardising internet banking integrations, the
platform enables banks to simplify connectivity, reduce
operational complexity and improve the customer
payment experience. As adoption grows, financial
institutions will increasingly require technology partners
that can accelerate implementation and manage evolving
payment infrastructure.

NPST is well positioned to support this transition through
its Banking Connect solution. Leveraging its experience in
payment switching and bank integrations, the Company
enables banks to adopt the new framework with minimal
disruption while supporting payment processing,
reconciliation and operational management.

As the ecosystem evolves, Banking Connect is expected
to create opportunities for platform upgrades, managed
services and deeper engagement with existing banking
customers, strengthening NPSTs position in Indias
payment infrastructure landscape.

Al-led Risk Intelligence and Fraud Management

The rapid growth of digital payments has increased
the complexity of fraud prevention and merchant risk
management. Banks and payment service providers
are processing higher transaction volumes while facing
increasingly sophisticated fraud, including mule accounts,
synthetic identities and merchant-level risk. At the same
time, regulators are placing greater emphasis on real-
time monitoring, governance and operational resilience.

These trends are driving demand for platforms that can
assess merchant risk throughout the customer lifecycle,

from onboarding and underwriting to transaction
monitoring and ongoing compliance.

NPSTs Risk Intelligence and Decisioning Platform

(RIDP) addresses this opportunity through Al-driven
risk assessment, rule-based decisioning and continuous
transaction monitoring. The platform enables financial
institutions to identify high-risk merchants, detect
suspicious transaction patterns and automate risk-based
decisions, helping reduce fraud losses while improving
operational efficiency.

As regulatory expectations continue to evolve and
digital payment volumes increase, demand for intelligent
risk management platforms is expected to grow. RIDP
strengthens NPSTs position in the RegTech market while
creating opportunities to deepen customer relationships
through higher-value risk and compliance solutions.

Data Privacy and Compliance Solutions

The implementation of the Digital Personal Data
Protection (DPDP) Act is expected to accelerate
technology investments across banks, NBFCs and
fintechs. Financial institutions are moving beyond policy
compliance to implementing systems that support
consent management, data governance, audit trails and
regulatory reporting.

This shift is creating demand for technology platforms
that simplify compliance while integrating with existing
banking and payment infrastructure. Rather than
deploying multiple standalone solutions, institutions are
increasingly seeking platforms that embed privacy and
governance within their digital operations.

NPST is well positioned to address this opportunity
through its data privacy and compliance capabilities,
integrated with its digital banking and payment platforms.
This enables customers to strengthen regulatory
compliance while reducing implementation complexity
and operational overhead.

As data governance becomes an integral part of financial
technology infrastructure, compliance-led solutions are
expected to become an important driver of technology
spending across the banking sector.

International Expansion

Indias digital payments ecosystem is increasingly gaining
global recognition. Several countries are exploring
interoperable payment systems inspired by Indias Digital
Public Infrastructure (DPI), while partnerships with NPCI
International are expanding UPI acceptance across
international markets. This growing adoption is creating
opportunities for technology providers with proven
expertise in payment infrastructure.

NPST intends to leverage its experience in payment
switching, merchant acquiring and digital banking to
support financial institutions seeking to modernise their
payment ecosystems. The Companys experience in
deploying payment solutions across diverse banking
environments provides a strong foundation for pursuing
opportunities in select international markets through
strategic partnerships.

While international operations are at an early stage,
expanding demand for digital payment infrastructure
presents a long-term opportunity to diversify revenue
streams and extend NPSTs presence beyond the
domestic market.

Artificial Intelligence Across the Product Portfolio

Artificial intelligence is becoming an integral part of
financial technology, supporting faster decision-making,
improved risk management and greater operational
efficiency. Banks and payment providers are increasingly
adopting Al to automate routine processes, strengthen
fraud detection and improve customer experience.

NPST is embedding Al capabilities across its product
portfolio rather than offering Al as a standalone solution.
Al supports merchant risk assessment, transaction
monitoring, compliance workflows and operational
automation across the Companys payment and banking
platforms. This approach enables customers to improve
efficiency while responding to evolving regulatory and
business requirements.

As Al adoption accelerates across the financial sector,
NPST expects these capabilities to enhance product value,
strengthen customer retention and create opportunities
for cross-selling higher-value solutions across its existing
client base.

Threats:

Regulatory Changes

The digital payments industry operates within a dynamic
regulatory environment. Changes to payment regulations,
pricing frameworks, data governance requirements or
compliance standards may influence business models,
technology investments and customer spending patterns.
NPST continues to diversify its business portfolio to
reduce dependence on any single regulatory framework.

Pricing Pressure

The continued absence of MDR on UPI transactions
and increasing competition in payment processing may
place pressure on pricing and margins. To mitigate
this, the Company is increasing its focus on SaaS,
RegTech, merchant orchestration and international

opportunities, where revenue models are less dependent
on transaction economics.

Competitive Intensity

The digital payments market continues to attract
investment from banks, fintechs and technology
providers. Increased competition may lead to pricing
pressure, shorter technology refresh cycles and higher
customer acquisition costs. NPST seeks to differentiate
itself through domain expertise, integrated product
offerings and long-standing relationships with
financial institutions.

Technology Disruption

Rapid advances in artificial intelligence, payment
infrastructure and digital banking require continuous

investment in product development. Failure to
anticipate changing customer requirements or emerging
technologies could impact competitiveness. The Company
continues to invest in Al-enabled products and platform
modernisation to address this risk.

Business Verticals

NPST operates through three complementary business
verticals that together support the digital payments value
chain. During FY2025-26, the Company strengthened
its portfolio by expanding its subscription-led
business, repositioning its merchant acquiring platform
and commercialising its RegTech offerings. These
initiatives reflect the Companys strategy of building
a more diversified business with a higher proportion of
recurring revenue.

Business Vertical	FY2025-26 Business Evolution	Revenue Model
Technology Service Provider (TSP)	Expanded beyond a traditional licence business with the launch of Bank in a Box, introducing a subscription-led model. The Company also established its international TSP business to address growing demand for real-time payment infrastructure.	Licence + Subscription (SaaS)
Payments Platform-as-a-Service (PPaaS)	Repositioned the business through merchant orchestration, product redesign and international readiness. The focus shifted towards expanding domestic market segments while building a platform for global opportunities.	Usage-based SaaS
RegTech	Commercialised the Risk Intelligence and Decisioning Platform (RIDP), establishing NPSTs presence in the RegTech market. The business secured early customer traction and laid the foundation for future domestic and international growth.	Usage-based SaaS

4. Outlook

Indias digital payments industry continuesto present
significant long-term opportunities, supported by
increasing digital adoption, continued investment in
payment infrastructure, expanding use of artificial
intelligence and a stronger regulatory focus on
security and compliance. As financial institutions
modernise their technology infrastructure, demand
is expected to grow for integrated platforms that
combine payments, banking and risk management.

Against this backdrop, NPST enters FY2026-27 with
a stronger and more diversified business model.
During FY2025-26, the Company repositioned
its portfolio by expanding its Technology Service
Provider business, launching Bank in a Box,
commercialising Al-led RegTech solutions and
strengthening its readiness for international markets.
These initiatives have established the foundation for
the next phase of growth.

Going forward, the Companys strategy will focus
on increasing the contribution of subscription-
based revenue, expanding its international presence
and scaling Al-led software solutions across the
banking and payments ecosystem. Management

also expects the revenue mix to progressively shift
towards higher-margin businesses, supported
by SaaS platforms, RegTech and international
opportunities, while maintaining its leadership in
payment technology.

The Company remains committed to disciplined
execution, product innovation and prudent capital
allocation. By leveraging its established relationships
with financial institutions, expanding technology
portfolio and growing international opportunities,
NPST is well positioned to create sustainable value
for customers, shareholders and the broader digital
payments ecosystem.

The Company is also looking to capitalise on the
global opportunity created by Indias Digital Public
Infrastructure (DPI) and digital payments ecosystem.
As several countries, regions and payment
organisations explore the adoption of payment
models inspired by Indias digital journey, NPST is
well positioned to export its technology, domain
expertise and payment infrastructure solutions. This
emerging opportunity has significantly strengthened
the Companys global outlook and forms an important
pillar of its long-term growth strategy.

5. Risks & Concerns

As the digital payments ecosystem continues
to evolve, NPST remains focused on managing
risks that could influence business performance.
The Companys strategy of expanding recurring
revenue, diversifying its product portfolio, entering
international markets and creating new segments
through inorganic acquisitions is intended to
strengthen business resilience while reducing
dependence on any single revenue stream.

Revenue Mix Transition

FY2025-26 marked a period of strategic realignment,
with a higher contribution from the Technology
Service Provider (TSP) business. While this
supported revenue growth, the shift also affected
profitability and working capital due to the relatively
longer payment cycles associated with this business.
Management expects these pressures to moderate
as SaaS, RegTech and international businesses
contribute a larger share of revenue over time.

Working Capital Management

The TSP business typically operates with longer
receivable cycles than the Companys SaaS-led
businesses. Improving cash conversion remains
a management priority through a greater mix of
subscription-based offerings, international contracts
and higher-value software solutions.

Technology and Execution

The Companys growth strategy depends on
the successful commercialisation of Bank in
a Box, international payment platforms and
RegTech solutions. Timely execution of customer
implementations, continued product innovation and
successful scaling of these platforms will remain
important to achieving the Companys long-term
growth objectives.

International Expansion

NPST is expanding its presence in international
markets through payment technology and software
platforms. While this presents a significant
opportunity, success will depend on customer
acquisition, execution capability, localisation
requirements and the pace of digital payments
adoption across target markets.

Cybersecurity and Data Protection

Given the critical nature of payment infrastructure,
maintaining the security, availability and integrity
of technology platforms remains a key priority.
The Company continues to invest in cybersecurity,
fraud management and data governance to

safeguard customer information and maintain
operational resilience.

6. Internal Control Systems & Their Adequacy

The Company has established a robust internal
control framework commensurate with the nature,
size, and complexity of its operations in the financial
technology and payment solutions domain. The
internal control systems are designed to ensure
the reliability and accuracy of financial reporting,
safeguarding of assets, prevention and detection
of fraud and errors, compliance with applicable
laws and regulations, and the efficient and effective
conduct of business operations.

The Company maintains its books of accounts
on Tally, with defined access controls, maker-
checker processes, and periodic reconciliations to
ensure the integrity and completeness of financial
records. Standard operating procedures are in place
across key business processes including revenue
recognition, procurement, payroll, treasury, and
vendor management, with appropriate authorization
matrices and approval workflows.

The Board of Directors, in accordance with the
provisions of Section 138 of the Companies Act,
2013, has appointed M/s RVA & Associates LLP,
Chartered Accountants, Mumbai (Membership No.
115003W) as the Internal Auditors of the Company
for the financial year 2025-26. The Internal Auditors
conduct periodic audits covering key business
processes and financial controls, and their findings
and recommendations are reviewed by the Audit
Committee on a quarterly basis. The management
monitors implementation of audit recommendations
and takes corrective action wherever required. During
the year under review, no significant deficiencies
or material control failures were reported by the
Internal Auditors.

The Audit Committee of the Board, comprising a
majority of Independent Directors, provides oversight
on the adequacy and effectiveness of the internal
control framework. The Committee reviews internal
audit reports, financial statements, risk management
practices, and compliance with applicable laws and
regulatory requirements on a periodic basis.

The Statutory Auditors have issued an unmodified
opinion on the adequacy and operating effectiveness
of the Companys Internal Financial Controls over
financial reporting under Section 143(3)(i) of the
Companies Act, 2013, as at 31^st March 2026. The
Board is satisfied that the internal control systems of
the Company are adequate and commensurate with
the size and nature of its business operations.

7. Financial Performance with Respect to Operational
Performance

FY 2025-26 was a year of strategic transformation
for NPST. While the Company continued to deliver
strong revenue growth, management also undertook
a deliberate repositioning of the business towards
subscription-based platforms, international markets
and Al-led software solutions. These investments
are intended to diversify revenue streams, improve
the quality of earnings and strengthen long-
term profitability.

Revenue from operations increased during the year,
supported by strong demand for the Technology
Service Provider (TSP) business. The successful
deployment of payment infrastructure solutions and
the addition of new banking customers contributed
to the Companys top-line growth. During the year,
NPST also expanded its Bank in a Box platform,
strengthened its international business pipeline and
commercialised its RegTech offerings, creating new
avenues for future growth.

The revenue mix shifted significantly during FY 2025-
26, with theTSP business contributing a larger share
of total revenue. While this supported business
growth, it also resulted in a temporary moderation
in operating margins, as the TSP business typically
carries lower margins and longer receivable cycles
than SaaS-led businesses. This shift reflects a

conscious strategic decision by the Company to
strengthen customer relationships while building
higher-margin growth engines in parallel.

During the year, NPST continued to invest in
product development across Bank in a Box,
merchant orchestration and the Risk Intelligence
and Decisioning Platform (RIDP). These investments
expanded the Companys product portfolio and
positioned it to address opportunities in Banking-as-
a-Service, merchant acquiring and Al-led RegTech.
Management expects these platforms to contribute
progressively as commercial deployments scale over
the coming years.

Working capital remained elevated during the year
duetothe increased contribution of theTSP business,
which typically operates with longer customer
credit cycles. As the business mix gradually shifts
towards subscription-based SaaS, international
engagements and RegTech solutions, the Company
expects improvements in cash conversion and
working capital efficiency.

The Company remains focused on improving the
quality of revenue by increasing the contribution
from recurring subscription income, Al-led software
products and international business. This strategic
transition is expected to support margin expansion,
strengthen cash flows and enhance long-term
shareholder value.

Particulars	FY 2025	FY 2026
Total Income	180.62	209.40
EBITDA	67.58	65.13
EBITDA (%)	37.41%	31.10%
Net Profit	45.20	40.82
Net Profit (%)	25.03%	19.49%
Diluted EPS (T)	23.27	20.58

8. Material Developments in Human Resources &
CSR

Human Resources: As the Company continued to
scale its technology platforms and expand its market
presence, strengthening organisational capability
remained a strategic priority. During FY 2025-26, the
Company expanded its workforce by 11%, adding
professionals across technology, product, sales and
corporate functions to support business growth.
Gender diversity remained at 25.8%, reflecting
continued progress towards building an inclusive
workforce. Capability development remained a key
focus, with 112 learning programmes delivering over
2,890 hours of structured training, complemented by
digital learning initiatives that drove a 93% learner

NPS. These investments have strengthened NPSTs
ability to innovate, execute at scale and build a
future-ready organisation capable of sustaining
long-term growth.

CSR Initiatives: At NPST, we believe that sustainable
business growth goes hand in hand with creating
meaningful social impact. During FY 2025-26,
the Company invested ^69.75 lakh towards
Corporate Social Responsibility (CSR) initiatives
through partnerships with the Marpu Foundation,
SankalpTaru Foundation, Ladli Foundation,
Prabha Rastogi Cancer Research Charitable
Foundation, and Sri Aurobindo Divine Life Trust.
These initiatives focused on advancing education,

strengthening rural livelihoods, promoting financial
inclusion, supporting healthcare, and encouraging
environmental sustainability. Through these
strategic collaborations, NPST continued to create
long-term value by expanding access to opportunity,
empowering communities and contributing to
inclusive and sustainable development.

9. Consolidated Financial Performance

The Company, along with its subsidiaries, has
reported consolidated revenue of ^209.39 Cr.,
marking a 15.93 % YoY increase.

10. Key Financial Ratios & Explanation of Significant Changes

As per SEBIs 5^th May, 2021 Circular, the Company discloses the following key financial ratios:

YEAR	31-03-2026	31-03-2025
Ratio	Current Year	Previous Year	% Change Explanation (if change >25%)
Debt-Equity Ratio	0.01	0.03	(58.51%) During the year, shareholders equity increased significantly, while total debt increased marginally. As equity grew at a much higher rate than debt, the debt-equity ratio declined from 0.03 to 0.01 times.
Operating profit margin	88.50%	89.02%	(0.58%) NA
Net Profit Margin	21.15%	26.11%	(18.99%) NA
Interest coverage ratio	353.89	7,983.09	(95.57%) During the year, operating earnings remained relatively stable; however, finance costs increased significantly. The sharp increase in finance cost led to a substantial decline in the interest coverage ratio from 7,983.09 to 353.89 times.
Current Ratio	7.28	3.49	108.80% During the year, there was a significant increase in current assets, while current liabilities increased at a comparatively lower rate. The sharp rise in assets, mainly driven by higher receivables and cash balances, resulted in a substantial improvement in liquidity, leading to an increase in the current ratio from 3.49 to 7.28 times.
Inventory Turnover	NA	2.00	NA NA
Debtors Turnover	2.87	10.56	(72.86%) During the year, net credit sales increased moderately; however, receivables increased significantly. As receivables grew disproportionately higher than sales, the trade receivables turnover ratio declined from 10.56 to 2.87 times, indicating relatively slower collection efficiency.

Cautionary Statement

Certain statements in this report may be forward-looking in nature and subject to risks and uncertainties. Actual
results may differ materially due to factors beyond our control.