Network People Services Technologies Ltd Management Discussions

On the Path to a US$7.5 Tn Economy

Indi a s eme r genc e as a ke y pill a r o f the globa l economy is no longer a projection; it is unfolding in real time. Guided by the Viksit Bharat vision, the country is steadily charting its course to become the worlds third-largest economy, driven by a strong policy framework that prioritizes innovation, entrepreneurship, and self-reliance in technology and infrastructure.

Global Context

The global macroeconomic environment in 2024 remained delicately balanced. While broad-based stability began to re-emerge, the recovery was uneven across geographies. Growth in both advanced and emerging economies moderated, weighed down by escalating geopolitical tensions and tightening global trade dynamics. These structural headwinds kept global GDP growth subdued at 3.1%, marginally lower than the 2.8% recorded in 2023.

India Stands Apart

In contrast to the global slowdown, India demonstrated resilient economic performance, recording 6.5% GDP growth in FY 2024-25. Early estimates for FY 2025-26 project a stable growth rate of 6.4%, highlighting sustained momentum. This growth was driven by a rebound in consumption demand, an improvement in net exports, a robust services sector, and a recovery in agricultural output. Thus, collectively supporting broad-based growth on both demand and supply sides.

Demand-Led Growth Anchors Momentum

Domestic demand continue s t o b e a corners t on e o f Indi a s economic growth. In FY 2024-25, Private Final Consumption Expenditure (PFCE), the largest component of aggregate demand, grew by 7.2%, driven by a sharp rebound in rural consumption even as urban spending moderated. The share of PFCE in real GDP rose to 56.3%, underscoring the st r ength o f Indi a s consumption-le d g r owt h engine.

Government spending also supported aggregate demand, with Government Final Consumption Expenditure (GFCE) rising by 4.1%, up from 2.5% in the previous fiscal year. Thus, reaffirming the dual engines of household and fiscal stimulus.

External Position Remains Resilient

Indi a s external positio n r emains stable and r esilient. A s of December 202 4 , the count ry s fo r eign e x chang e r ese r v es stood at US$640 Bn, providing coverage for approximately 11 months of imports and 89% of external debt. This strong balance-of-payments buffer continues to bolster investor confidenc e in Indi a s mac r oeconomi c stabilit y .

Structural Trajectory Toward US$7.5 Tn

With a current GDP of approximately US$4 Tn, India is on track to reach US$7.3 Tn by 2031. This structural growth trajectory is underpinned by increasing formalization of the economy, sustained infrastructure investments, rapid digital adoption, and the rising contribution of high-productivity sectors such as advanced manufacturing and technology- enabled services.

A s globa l g r owt h mode r ates and ris k p r emiums rise , Indi a s relative macroeconomic stability, deepening domestic capital markets, and policy continuity reinforce its position as a key driver of global economic momentum in the decade ahead.

BFSI Sector: A Pillar of Profitability

Indi a s banking , financial se r vices , and insu r ance (BFSI) sector emerged as a major driver of corporate earnings in FY 202 4 -25. It c ontributed 1.84% t o the count ry s GD P . The strong sectoral performance helped maintain the Nifty-500 profit-to-GDP ratio at a 17-year high of 4.7%. This, despite global uncertainties like geopolitical tensions, high interest r ates, and un ev en g r owth . Thus, r einfo r cin g the sec t o r s r ole in driving economic performance amid global volatility.

Digital Payments: Acceleration & Innovation

Indi a s st r on g economic momentu m is closel y lin k ed t o its exp a nding digital p a yment s ecosystem. The count ry s digital public infrastructure now forms the backbone of economic activity, offering real-time, secure, interoperable, and widely accessible platforms.

In FY 2024-25, the digital payments ecosystem sustained its high g r owt h t r ajec t o r y , r einfo r cin g Indi a s global leadership in real-time, low-cost, high-volume transaction infrastructure. The currency-to-deposit ratio declined to 15.4% in March 2025, down from 15.9% a year earlier, indicating a continued shift in consumer preference toward digital modes of payment.

Retail digital payments recorded significant growth during the year. Transaction volumes increased by 35%, while transaction value rose by 17.9%. Over 22.2 Bn digital transactions were processed during the fiscal, with a cumulative value of 286.2 Tn.

This scale and consistency reflect rising consumer trust in digitalfinancialservices, thereliability of public infrastructure, and the successful integration of digital payments into everyday economic activity. This is the new architecture of money movement in India, where transactions are real-time, account-linked, and deeply embedded into how individuals, businesses, and institutions operate and grow.

System	Volume Growth	Value Growth	Volume FY 2024\u201325	Value FY 2024\u201325
RTGS (Large Value)	12.00%	17.80%	3,025	2,013.9 Lakhs crores
UPI	41.70%	30.30%	18,58,660	260.6 Lakhs crores
NEFT	32.40%	13.40%	96,198	443.6 Lakhs crores
IMPS	(6.30%)	9.80%	56,250	71.4 Lakhs crores
Credit Cards	34.00%	15.30%	47,741	21.1 Lakhs crores
Debit Cards	(29.50%)	(15.30%)	16,120	5.0 Lakhs crores
Prepaid Instruments (PPI)	(10.80%)	(21.40%)	70,254	2.2 Lakhs crores
Paper-based Instruments	(8.10%)	(1.40%)	6,095	71.4 Lakhs crores
Total Digital Payments	35.00%	17.87%	22,19,815	2,862 Lakhs crores

UPI Payments Gain Scale and Depth

The Unified Payments Interface (UPI) stood out as a pillar of the ecosystem. UPI processed 18.6 crores transactions during the year, valued at 260.6 Lakhs crores. This marked a year-on-year increase of 41.7% in volume and 30.3% in value. A notable development was the decline in average ticket size from 1,526 to 1,402. Thus, signifying the platfor m s inc r easing penet r ation ac r os s socio-economic tiers.

Meanwhile, the use of legacy instruments continued to recede. Cheque usage declined by 8.1% in volume, even as average transaction values rose, underscoring their limited but continued use in formal, high-value contexts. Prepaid Payment Instruments (PPIs), including wallets, also contracted, recording a 10.8% drop in volumes and a 21.4% decline in value, reflecting a shift to UPI-linked platforms.

Bill Payments Surge on BBPS

The Bharat Bill Payment System (BBPS) witnessed exponential growth across multiple categories, including electricity, DTH, and credit card bills. In November 2024, credit card bill payments on BBPS grew 21x in volume and 25x in value YoY. Thus, signaling rising confidence in centralized bill payment infrastructure, signaling rising confidence in BBPS as a convenient and trusted channel for utility and financial bill payments.

High-Value Systems Maintain Strength

Indi a s high- v alue p a ymen t systems r egiste r ed st r ong performance throughout the year. Real-Time Gross Settlement (RTGS) transactions grew by 17.8% in value, reaching 2,014 Lakhs crores, with the average ticket size increasing to 66.6 Lakhs. National Electronic Funds Transfer (NEFT) continued to serve as the preferred channel for large-value retail and B2B transfers. It processed 962 crores transactions during the year, marking a 32.4% growth, with an average ticket size of 46,113.

The Immediate Payment Service (IMPS), which experienced a 6.3% decline in volume, saw a 9.8% increase in transaction

value. The average IMPS ticket size has steadily increased, suggesting a shift toward using the platform for mid-value, real-time use cases.

Automated Clearing Systems Expand Reach

Automated systems also expanded their role in the digital payments landscape. The National Automated Clearing House (NACH) recorded a 20.3% increase in volume and a 31% increase in value, driven by widespread use for SIPs, EMIs, and utility payments.

QR and Acceptance Infrastructure

The Payments Infrastructure Development Fund (PIDF) continued to drive the expansion of digital payments by subsidizing the deployment of acceptance infrastructure, particularly across Tier III to Tier VI centers . As a result, the number of Point-of-Sale (PoS) terminals grew by 24.7% , reaching 1.1 crores by the end of FY 2024?€“25. In parallel, the adoption of UPI Quick Response (QR) codes surged by 91.5% , totaling 65.8 crores as of 31 March, 2025 . These developments underscore the growing penetration of low- cost payment acceptance solutions across semi-urban and rural geographies.

Regulatory Initiatives Catalyzing Growth

Several policy interventions introduced by the Reserve Bank of India in FY 2024?€“25 played a catalytic role in accelerating the adoption and diversification of digital payments across user segments and transaction categories.

UPI-Based Credit Access for the Underserved

A landmark move was the RBIs approval for Small Finance Banks to issue pre-approved credit lines via UPI . This enabled short-term, low-ticket credit access for underbanked and new-to-credit users, offering them seamless, real-time financing options embedded within their everyday payment journeys. The move also opens oppo r tunities fo r p a ymen t o r chest r ation platforms , NPS T , to support banks in managing disbursement flows.

Expanded Transaction Limits

Transaction thresholds across key UPI modalities were raised to accommodate more diverse and high-value use cases. The limit for UPI123 Pay was increased to 10,000, UPI Lite wallets were capped at 5,000, and UPI-based tax payments were permitted up to 5 Lakhs per transaction. To further streamline digital usage, auto-replenishment via e-mandate was enabled for UPI Lite, FASTag, and NCMC, reducing friction in recurring low-value payments.

Delegated Payments with UPI Circle

The introduction of UPI Circle brought delegated payments into the formal system. This functionality allows a primary account holder to authorize a secondary user?€”such as a family member, household worker, or caregiver?€”to initiate payments from the same account. This is particularly impactful in shared-finance or dependents-based financial contexts and expands the use-case spectrum for inclusive digital financial tools.

Expanded Interoperability for Wallets and Neo-Banks

The RBI also expanded the interoperability framework by allowing Prepaid Payment Instruments (PPIs) to be accessed via third-party UPI apps . This reform strengthens the utility of digital wallets and enhances neo-banking integration , enabling wallet balances to be used seamlessly within the broader UPI ecosystem, effectively dissolving silos between banks, wallets, and fintech applications.

Co-operative Banks as UPI Merchant Acquirers

In a transformative development, Co-operative Banks are now permitted to participate as UPI merchant acquirers. This reform is set to redefine financial inclusion by enabling these community-centric institutions to support local merchants in adopting digital payments. Participation requires the Co-operative Bank to be a direct member of the UPI network and adhere to RBI and NPCI compliance standards. This inclusion expands the merchant acquiring footprint and opens strategic opportunities for Technology Service Providers like NPST to support Co-operative banks in onboarding, transaction processing, and settlement.

BBPS B2B Enablement

On the enterprise front, the Bharat Bill Payment System (BBPS) was upgraded to include business-to-business (B2B) transaction support . This extension enables corporates and MSMEs to handle recurring payments like utility bills, supplier invoices, and statutory dues via BBPS, while ensuring automated reconciliation across ERP systems . It is expected to reduce operational overhead and improve cash flow visibility for businesses of all sizes.

These enhancements reflect the RBIs commitment to inclusi v e digital finance, aligning wit h Indi a s shift t owa r d a cashless economy. These changes offer new growth avenues for banks and fintechs to broaden their reach, increase transaction volumes, and integrate more users into the formal economy.

Licensing and Regulatory Developments

To further strengthen the digital payments ecosystem, the Reserve Bank of India (RBI) granted authorizations and approvals across several categories during the year:

26 Online Payment Aggregators (PAs)

5 Cross-Border Payment Aggregators (PA-CBs)

11 Non-Bank Prepaid Payment Instrument (PPI) Issuers

1 Trade Receivables Discounting System (TReDS) Entity

1 White Label ATM (WLA) Operator

In addition, the RBI issued in-principal authorization to several more PAs, PPI issuers, and WLA operators. Notably, four banks were approved to issue PPIs , reflecting the growing institutional participation in the prepaid payments space.

Fintech Infrastructure

Indi a s ev olvin g digital publi c inf r astructu r e is l a yin g the groundwork for the next wave of financial innovation?€” spanning infrastructure modernization, digital commerce, embedded finance, and intelligent risk management. The India Fintech market has surged to a market value of US$793 Bn in 2024, with projections indicating a staggering US$2.1 Tn by 2030. The industry is now grappling with the crucial transition from explosive growth to sustainable profitability, all while navigating an evolving regulatory landscape.

A critical constituent of the fintech industry is FinTech Infrastructure, scale, efficiency, and innovation across the financial services ecosystem. The players serve the front- end and back-end needs of the BFSI sector, fintech firms, and non-financial service providers seeking to integrate financial capabilities into their offerings.

Their solutions span hardware, software, network architecture, and domain-specific services such as digital banking, digital lending, and payments, typically delivered via white-labeled platforms or API-based integration.

As of 2024, the combined market value of fintech Infra players in India were estimated at approximately US$9 Bn, according to PWC. Their rising growth is attributed to robust offerings in areas such as regulatory compliance, identity management, customer onboarding and verification, risk

assessment, payment processing, loan management, reconciliation, underwriting, wealth management, fraud detection, and cybersecurity.

These solutions enable BFSI players and fintechs to operate more efficiently and deliver superior service. In parallel, FinTech Infra players also support the modernization of legacy IT systems, drive digital transformation, and assist financial institutions in migrating to cloud-based infrastructure for greater scalability, agility, and cost optimization.

This momentum is being fueled by a surge in transaction volumes and an expanding diversity of digital payment use cases. As a result, banks, fintechs, and payment aggregators are making strategic investments to reengineer platforms and scale infrastructure, ensuring readiness for future growth and rising consumer expectations.

A s Indi a s digital economy matu r es, the t r ansition t owa r d next-generation financial infrastructure is accelerating, unlocking new opportunities for efficiency, resilience, and innovation across the financial services value chain.

Implications for NPST

Indi a s st r on g mac r oeconom ic t r ajec t o r y and r apid digitization of financial services present compelling tailwinds for NPST. The Company is strategically positioned at the intersection of infrastructure modernization, embedded finance, and digital payments, sectors that are seeing accelerated investment and policy support.

Continued expansion of digital payment use cases enhances the relevance of NPSTs UPI Switch, merchant enablement tools, and white-labeled platforms.

The formalization of consumption and financial activity boosts demand for NPSTs API-led payment orchestration and platforms as a service model.

Regulatory-backed efforts such as BBPS for B2B payments and Counter Fraud solutions align with NPSTs efforts.

The rising share of BFSI in corporate earnings reinforces the long-term viability of NPSTs dual positioning as a Technology Service Provider and PayTech enabler.

Globalization of UPI aligned with NPSTs international expansion plans

Together, these macro and sector trends validate NPSTs strategic priorities and offer a fertile ground for the Company to deepen client relationships, expand its addressable market, and deliver long-term value.

Company Overview

Network People Services Technologies Ltd. (referred to as NPST We the Company) develops, markets, installs, and supports a comprehensive suite of software products and solutions that power real-time digital payments. With one of the most diverse and resilient portfolios in the digital payments space, NPSTs offerings span the entire payments value chain, covering transaction initiation, processing, settlement, reconciliation, and fraud management. These platforms support mission-critical services used daily by banks, payment intermediaries, payment aggregators, merchants, and billers.

NPSTs products are structured across two key verticals: Technology Service Provider and Payments Platform as-a- Service.

Backed by over a decade of industry experience, NPST combines performance-focused design with a culture of continuous innovation. Our solutions are built to help banks and payment aggregators. It helps them modernize their payment infrastructure, accelerate innovation, improve operational efficiency, and deliver seamless, reliable payment experiences to end users.

NPST Product Portfolio

NPST operates through two distinct yet complementary product lines. The Technology Service Provider business empowers banks with the tools they need to compete and thrive in a rapidly evolving digital environment. Our Payment Platform-as-a-Service business delivers scalable, cost- efficient infrastructure for payment aggregators, payment gateways, and large merchants. It helps them streamline operations and expand reach with confidence.

Technology Service Provider (TSP) to Banks

NPSTs Technology Service Provider business is designed to help banks transition from static legacy environments to agile, future-ready ecosystems. Built for scale, speed, and r egula t o r y depth, the Compan y s platform s enable seamless product launches, core system modernization, and operational agility in an increasingly real-time payments economy. In FY 2024?€“25, NPSTs solutions were deployed across 100+ institutions, validating the maturity, adaptability, and credibility of its offerings.

As Indian banks channel close to 10% of their revenues in t o technolog y , the Compan y s platform s a r e capturing sustained traction. NPST is executing a two-track growth strategy: strengthening share within existing accounts, while widening access into mid-sized and large banks. Demand is rising in high-impact areas like transaction processing

and UPI on Credit, driven, in part, by favorable policy shifts. Amon g them, is the Rese r v e B a nk o f Indi a s nod t o Small Finance Banks to extend UPI-based credit marks a decisive step toward embedded finance at scale.

For Tier One institutions, we follow a calibrated land and expand model. We begin by delivering measurable impact through flagship platforms such as Internet Banking, Mobile Banking, and CBDC Switch. These high-utility deployments build long-term traction, often becoming the springboard for deeper integration across the banks digital core.

Transaction Processing

Behind every digital payment transaction lies a labyrinth of checks and balances. This includes authentication, authorization, switching, settlement, fraud detection, and reconciliation, all running in real time, across multiple access points. The task is made more intricate by growing transaction volumes and a constantly shifting regulatory envi r onment . A t NPS T , w e h av e enginee r ed clarit y in t o this complexit y . The Compan y s agile and scalable solutions are purpose-built to navigate the ever-changing terrain of operational demands and compliance mandates without compromising on speed or security. Our Transaction Processing Suite brings this vision to life. Designed for adaptability and resilience, it supports the full transaction lifecycle, giving banks and payment platforms the tools to manage scale, minimize risk and ensure seamless execution.

UPI Switch

Many banks continue to rely on legacy UPI switches that struggle to keep pace with rising transaction volumes and evolving complexity. These systems often become bottlenecks as payment traffic goes. NPSTs UPI Switch modernizes real-time payment infrastructure with the capacity to handle up to 2 Bn transactions per month, while ensuring high availability and reliability. To address distinct transaction flows, banks can implement specialized variants such as Merchant UPI Switches, Credit Line UPI Switches, and TPAP Switches. This helps enable greater flexible, optimized performance, and seamless scalability.

IMPS Switch

NPSTs Immediate Payment Service (IMPS) Switch enables secure, real-time fund transfers around the clock, integrated with core banking systems. PSU and Regional Rural Banks rely on it daily, processing over millions of transactions every month with consistency and confidence. It delivers the reliability and scale essential for digital payments at volume.

CBDC Switch and Applications

NPSTs Central Bank Digital Currency (CBDC) suite offers banks a secure, full-stack infrastructure platform aligned wit h the Rese r v e Bank o f Indi a s digital rupe e f r amework. A t its core is a real-time CBDC Transaction Processing Engine built to handle authorizations with speed and precision. Supporting this is a white-labeled CBDC Banking App, for retail users to manage digital rupee holdings and perform transactions, and a Merchant App designed for QR and NFC-based acceptance, complete with reconciliation tools. The entire stack equips banks to launch comprehensive, secure, and scalable CBDC services.

IBMB Switch

The old point-to-point model in net banking has become a drag on agility, weighed down by high integration costs, delayed reconciliations, and uneven user journeys. NPSTs IBMB Switch restructures this approach in line with the RBIs interoperable framework. Through a single connection to a centralized clearing system, it replaces multiple integrations, reduces complexity, and fast-tracks deployment, allowing banks to operate with greater speed and coherence.

Digital Engagement Suite

Banking SuperApp

NPSTs Banking SuperApp brings together everything t od a y s mobile-firs t cus t omer s expect f r o m their bank . This includes payments, commerce, and personal finance in one seamless interface. Built on an API-first foundation, it gives banks the agility to integrate partners, scale services, and personalize offerings. All of this through a single platform designed for the digital-native user.

Credit Line on UPI

NPSTs Credit Line on UPI gives banks the edge to integrate instant credit directly into the payment flow. Built around a real-time decisioning engine, the platform assesses transaction behavior on the fly, unlocking pre-approved credit lines for users, including those new to formal credit. It is a frictionless way to expand access, personalize offers, and turn payments into smarter lending moments.

BillDirect BBPS

NPSTs BillDirect is an end-to-end Electronic Bill Presentment and Payment (EBPP) solution that brings together bill aggregation, processing, and settlement. Integrated with the Bharat Bill Payment System (BBPS) and banks core systems, BillDirect enables seamless bill payments across digital and assisted channels. It aims at enhancing service delivery and operational control.

RegTech

Risk Intelligence Decisioning Platform

The Risk Intelligence Decisioning Platform leverages advanced artificial intelligence (AI) and machine learning (ML) to predict and pre-empt various types of multi-layered risks. These include merchant misconduct, transaction fraud, and chargeback fraud. Thereby strengthening compliance while significantly reducing fraud losses.

Online Dispute Resolution (ODR)

NPSTs ODR solution enables banks to manage and resolve transaction disputes across various channels, including mobil e banking, internet banki ng , UPI , IMPS, NE F T , and RTGS. This omnichannel platform enables real-time dispute tracking, intelligent workflow routing, and expedited resolution cycles. It significantly helps improve customer satisfaction and institutional transparency.

Payment Platform-As-a-Service Suite

Our PPaaS Business focuses on merchant acquiring. The merchant acquiring market remains heavily concentrated among a few large players, creating a strategic opportunity for NPST to empower more banks with fully managed UPI acquiring stacks. Our As-a-Service model is particularly appealing to mid-tier and regional rural banks. It helps them minimize capital expenditure while delivering Tier One-grade capabilities to their customers. A further regulatory boost has come from the inclusion of Urban Cooperative Banks in the UPI merchant acceptance ecosystem, unlocking access to a large and previously underserved segment in digital payments and acquiring.

With an expanding customer base, a modular platform approach, and strong regulatory tailwinds, NPST is well- positioned to deepen its role as a trusted transformation partner to banks across the country.

NPSTs Payment Platform-as-a-Service (PPaaS) simplifies online and offline payment processing. It allows banks and Fintechs to focus on their core activities instead of managing complex payment processing infrastructure.

EVOK

NPSTs Evok Payment Platform as a Service enables payment acquirers to focus on their core business by removing the burden of maintaining back-office payments infrastructure and compliance. NPST assumes complete responsibility for setting up, managing, and operating the payment infrastructure. It encompasses transaction processing, fraud prevention, dispute management, reconciliation, and compliance. Thereby effectively addressing the twin requirements for growth and scalability.

Qynx Offline Payments

NPST Qynx is an offline payment acquiring platform that incorporates scalable payment processing capabilities with QR and SoundBox systems. Offered as a fully managed service, NPST assumes complete responsibility for business and technology operations, significantly enhancing scale and operational efficiency.

Business Models

Technology Service Provider Business

In the TSP vertical, revenue is billed based on the products and services delivered to customers. This model ensures that our revenue aligns with the value provided through our technology solutions.

Software sales in our business follow a license fee model, which includes four key revenue components:

One-Time License Cost: A one-time license fee is charged at the point of software product sale, as specified in the purchase order. The upfront cost reflects the value of the software provided to the customer.

Annual Maintenance Charge (AMC): An annual maintenance charge is calculated as a percentage of the total license fee paid by the customer. The cost can be billed annually, quarterly, or half-yearly, depending on the terms of the agreement. It ensures ongoing support and updates for the software.

Chang e Reque s t : P ost-deli v e r y , w e p ro vid e additional services based on customer-initiated requests for changes or upgrades to the software. Fees for these services are charged per man-day as approved in the change request, with billing based on milestones achieved, as outlined in the purchase order.

Manpower Support: We charge fees for providing technical support to customers, ensuring the efficient and effective operation of the software. This fee is billed per man-month based on the resource skillset, as detailed in the purchase order or agreement.

SaaS Model: NPST has also introduced a hosted deployment model to help banks reduce their total cost of ownership. This pay-per-use model, structured either around transaction volumes or a fixed monthly fee, offers banks with greater flexibility, predictable costs, and faster go-to-market capabilities. All this, without the need for heavy upfront infrastructure investments.

PaaS Model

Our PPaaS (Payments Platform-as-a-Service) model is based on usage, allowing customers to pay according to their software utilization. This model is offered to banks and payment aggregators, payment gateways and merchants and includes the following variations:

Per Transaction: Customers are charged a fee for each transaction. This model ensures that our revenue scales in proportion to customer activity. Billing is done periodically (weekly or monthly) as agreed in the contract.

Per Month: Customers pay a fixed monthly fee for software usage. This predictable billing cycle simplifies budgeting for our clients and ensures a steady revenue stream for NPST.

Per User Login: Customers are billed based on the total number of active users within their ecosystem. This fee can be structured on a monthly, quarterly, or annual basis, depending on the agreement.

Infrastructure Implementation and Support

In addition to software, we also generate revenue through the sale of hardware products. The revenue components for hardware sales include:

One-Time Cost: Customers pay a one-time fee for the hardware and associated package, as specified in the purchase order terms. This upfront cost reflects the value of the hardware provided.

Implementation Fee: An implementation fee is charged for the setup and installation of the hardware package. This fee is typically billed after installation, as agreed in the purchase order.

Annual Maintenance Charge (AMC): An annual maintenance fee is charged to maintain the hardware and package. This fee is billed according to the terms specified in the purchase order, often following a back-to-back model.

Business and Operational Risks

In an ever-evolving business landscape, NPST faces various risks that could impact our operations and financial stability. Addressing these risks proactively is essential to sustaining our growth and maintaining our competitive advantage.

Macroeconomic Environment

NPST remains vigilant in monitoring and adapting to macroeconomic conditions that may impact our customers and, consequently, our business. We are committed to taking all necessary actions within our control to mitigate any adverse effects from these conditions.

Financial Risks

Our focus continues to be on improving profitability while making disciplined investments in key areas, including hiring additional personnel, broadening marketing and promotional activities, and expanding our product and service offerings. As we grow our business operations, we anticipate a corresponding increase in expenses.

Furthermore, we may offer performance guarantees or indemnities related to business tenders or contracts, which can potentially impact the topline. Our experience indicates that no material claims have arisen from such guarantees.

Pace of Technology Innovation

We continue to invest significantly in enhancing the scale, stability, and functionality of our technology infrastructure, as well as in new technologies, including AI and Big Data. The risk of failing to develop best-in-class systems could adversely affect our business and prospects.

Privacy and Data Security

Financial data is among the most sensitive kinds of information; breaches can be devastating for all involved. For agentic AI to develop, data shared with third parties must be secure, and there must be clear, codified rules concerning what can and cannot be done with it. This is where regulators will need to provide clarity and guidance.

Competitive Threats

The markets in which we operate are dynamic, rapidly evolving, and intensely competitive. They are characterized by frequent product and technology innovations, shifting industry standards, and rising customer expectations.

We face competition from both established and emerging players. Many of these are with significantly greater financial, technical, and marketing resources, stronger brand recognition, and well-established customer relationships. These competitors may bring products to the market faster, invest more aggressively in customer acquisition, or offer lower prices, which could erode our market share and margins.

Additionally, some of our clients have begun or may in the future develop competing solutions in-house, adding further pressure. Mergers and partnerships among competitors may result in larger, better-resourced entities.

To remain competitive, we must invest in research and development, respond to emerging technologies such as AI, and enhance or launch new products ahead of market changes. Differentiation through innovation, improved

operational efficiency, and exceptional customer delivery

are vital for sustaining our leadership position.

AI-Related Risks

The rise of agentic AI introduces new layers of complexity and risk across the financial services landscape. While its potential to automate decision-making, enhance personalization, and drive operational efficiency is widely recognized, several critical challenges must be addressed to ensure AI is scaled responsibly and safely.

Regulatory Ambiguity and Governance Gaps

Existing regulatory frameworks were designed for human actors and institutions, with defined roles, responsibilities, and liabilities. The introduction of autonomous AI agents disrupts this paradigm, raising unresolved questions around authentication, fraud prevention, decision accountability, and legal liability. The question of whether AI agents require licensing or regulatory approvals, particularly when performing advisory or investment-related functions, remains a key grey area.

Privacy and Data Integrity

Financial data is among the most sensitive categories of personal information. The deployment of agentic AI models that require access to customer data, often through third- party ecosystems, elevates the risk of data misuse and cyber breaches. For AI to be trusted in high-stakes financial applications, regulators must establish clear boundaries around data access, usage, and retention. Transparency, explainability, and consent management will need to be embedded by design, ensuring that innovation does not compromize privacy or consumer protection.

Operational and Ethical Concerns

Beyond regulation and security, AI systems pose risks of bias, hallucination, and model drift, especially in complex, high-frequency decision environments. Errors in judgment, whether due to flawed training data or unintended feedback loops, could result in reputational damage, regulatory scrutiny, or financial loss. Accordingly, NPST is approaching AI integration with caution, focusing on model explainability, continuous human oversight, and robust internal testing frameworks.

As NPST explores the responsible integration of AI across our product stack, we remain committed to adhering to evolving regulatory standards, safeguarding customer trust, and ensuring our AI deployments are transparent, ethical, and resilient by design.

Cybersecurity and Data Protection Risk

As a technology and payment infrastructure provider, our operations rely heavily on the secure processing, storage, and transmission of sensitive personal and business information. Any compromize of our security measures or a cybersecurity incident that disrupts service delivery or prevents users from accessing our platforms could adversely affect our business, damage our reputation, and undermine client trust.

In the ordinary course of business, our systems receive, store, and process confidential information, including personal data and proprietary business data belonging to our clients. Cybersecurity incidents may take various forms, including but not limited to malware or ransomware attacks, phishing and social engineering schemes, credential theft, and denial-of-service (DoS) attacks. Such incidents could impair business continuity and compromize the availability, integrity, or confidentiality of our systems and data. In some cases, these incidents may arise from internal sources, such as inadvertent errors, employee misconduct, or third- party lapses, and may also result from vulnerabilities in commonly used cloud services or bundled third-party software.

Like many companies operating in the digital ecosystem, we regularly experience attempted intrusions by threat actors seeking unauthorized access to our networks and systems. The frequency, scale, and sophistication of these attempts are increasing, reflecting the evolving threat landscape. A successful breach, whether through exploitation of software vulnerabilities, network compromize, or social engineering, could result in the loss, theft, unauthorized disclosure, alteration, or destruction of sensitive data. It could also disrupt service availability, impact customer operations, and trigger regulatory or legal consequences.

Cybersecurity risks are further heightened when data is transmitted over public networks such as the Internet. A breach of our systems, or a product or service provided by us, including those hosted in cloud environments, could significantly impact our financial position, business operations, and reputation. Increased public and regulatory scrutiny following well-publicized breaches and a growing trend toward mandatory disclosure have also raised the potential reputational impact of such incidents.

Our platforms are designed with multiple layers of protection to ensure business continuity and manage cybersecurity risks. We employ automated fraud detection during transaction processing and use encryption protocols

to safeguard data confidentiality. Despite these measures, the vulnerability of our data and technology infrastructure to cyber-attacks remains a concern, as such incidents could damage our reputation and significantly harm our business.

We remain committed to continuously investing in advanced cybersecurity technologies, robust internal controls, third- party risk assessments, and employee training to safeguard our systems and data proactively. However, no system can be entirely immune to cybersecurity threats. We cannot provide complete assurance that future incidents will not materially impact our operations, financial performance, or reputation.

Regulatory Risks

NPST operates in a highly regulated business environment where the fast-evolving regulatory landscape necessitates robust internal controls and management. To ensure that applicable laws and regulations are identified and mapped to our activities and services, NPSTs compliance specialists continuously screen the regulatory landscape, with validation from external legal counsel. Further regular reviews by legal and audit teams, along with checks by banks, ensure strong governance and compliance.

Risk Related to Global Expansion

As we expand our global presence, we also face challenges related to managing diverse legal, regulatory, and cultural environments. This ensures compliance with prevailing payment regulations and data protection laws, while competing with well-established local players. One of the primary risks associated with our international operations is exposure to adverse foreign currency exchange rate fluctuations, which can significantly impact our revenues, cash flows, and profitability.

NPST is adopting a diversified and risk-informed approach to mitigate these challenges. This includes exploring structured currency risk management strategies, strengthening compliance with local regulations through regional expertise, and building strategic partnerships to ensure operational alignment. The Company actively monitors geopolitical developments, limits exposure to high-risk regions, and maintains strong internal controls through technology-driven oversight. By diversifying its global footprint and reinforcing governance, NPST aims to safeguard business continuity and ensure long-term financial resilience.

Talent and Workforce Risk

NPSTs success is closely tied to the expertise and leadership o f its s e nior management , as wel l as the Compan y s ability to attract, retain, and nurture highly skilled professionals across technology, compliance, and risk functions.

The loss of key personnel could adversely impact strategic execution, operational oversight, and organizational continuity. At the same time, competition for top-tier talent, particularly in emerging areas such as Artificial Intelligence (AI) and cybersecurity, is intense and continues to drive up recruitment costs. Inadequate staffing or talent mismatches may affect our ability to innovate, deliver high- quality services, comply with regulatory requirements, and maintain effective internal controls.

To mitigate these risks, NPST is actively investing in talent development and upskilling programs. This helps strengthen workforce engagement and enhance talent acquisition efforts through process innovations and digital tools. These initiatives are designed to build a future-ready, resilient workforce aligned with our growth objectives.

Business Update and Outlook

FY 2024-25 was a transformative year for NPST. The Company registered robust growth, with key financial highlights underscoring this success:

Revenue Growth:

Total income for FY 2024-25 stood at 180.62 crores, compared to 130.24 crores in the previous year, reflecting a robust year-on-year growth of 38.68%.

EBITDA Performance:

EBITDA increased from 45.49 crores in FY 2023-24 to

67.57 crores in FY 2024-25, marking a strong growth of 48.54%.

Net Profit Growth:

Net profit rose to 45.20 crores in FY 2024-25 from 26.89 crores in FY 2023-24, representing a significant increase of 68.09%.

Additionally, we prioritized the management of revenue st r eams and cont r olle d expenses t o buil d the Compan y s cash reserves. Thereby improving our financial stability.

Particulars	FY 2024-25	FY 2023-24	YoY Growth
Total Income	180.62	130.24	38.68%
EBITDA	67.57	45.49	48.54%
EBITDA (%)	37.41	34.93	248.22 BPS
Net Profit	45.20	26.89	68.09%

Particulars	FY 2024-25	FY 2023-24	YoY Growth
Net Profit (%)	25.02	20.65	437.84 BPS
Basic EPS ()*	23.31	13.87	68.01%

Strategic Initiatives

Embedded AI

To support the safe, responsible, and scalable adoption of Artificial Intelligence (AI), NPST is building a flexible, AI-first software engineering framework. This framework reimagines the entire solution development lifecycle, from data design and model training to deployment and governance, ensuring agility, compliance, and the delivery of high-quality products to our customers.

The development of an AI-powered AIOps engine is underway. It aims to enable automated compliance assessments, predictive analytics, improved system uptime, and seamless infrastructure scalability across our Payment Platform-as-a-Service (PPaaS) business.

Agentic AI is being integrated into the payment applications to support autonomous reasoning and intelligent customer engagement. This capability is designed to deliver hyper- personalized experiences tailored to individual behavior and transaction patterns.

Additionally, the NPST Risk Intelligence Decisioning Platform is being expanded to leverage advanced machine learning for real-time fraud detection, behavioral risk modeling, and proactive mitigation strategies. These enhancements are expected to bolster trust across the digital payments ecosystem and support regulatory readiness.

As we scale our AI capabilities, NPST remains deeply committed to responsible innovation. This includes transparent disclosures around data usage, model training, and algorithmic decision-making. Our governance framework ensures that all AI deployments uphold ethical standards, maintain regulatory compliance, and serve the long-term interests of our clients and partners.

Payments Modernization

The continued evolution of the Unified Payments Interface (UPI) and growing adoption of AI are catalyzing the next phas e o f p a yment s modernizat ion ac r os s Indi a s banking and fintech ecosystem.

As a trusted Technology Service Provider and PayTech enabler, NPST is capitalizing on the opportunity. Our new age switching solutions and payment orchestration solutions empower banks, payment aggregators, and co-operative institutions. It enables them to manage rising transaction volumes efficiently and support emerging payment use cases.

As the digital front-end of financial services matures, the modernization of core back-end infrastructure has become a strategic priority. API banking is emerging as the foundational layer in this transformation, enabling secure, scalable, and modular integration across financial ecosystems. It allows institutions to expand their service offerings, personalize digital journeys, and participate in open banking networks.

NPST Banking Super App platforms, secure APIs. These capabilities support the rapid rollout of digital banking experiences, accelerate innovation cycles, and position our clients to lead in a real-time, customer-centric payments landscape.

Regulatory Technology

As the regulatory environment continues to mature and digital adoption deepens its r oot s in Indi a s Tier 2 and Tier 3 cities, the role of anti-fraud technology will become increasingly central. NPST is enhancing its RegTech stack to improve counterparty fraud solutions. NPST is developing a first-of-its-kind merchant fraud solution. It is poised to shape the next wave of financial inclusion, foster greater user retention through enhanced security, and drive sustainable revenue growth for the entire digital financial ecosystem.

Verticalization of Online Payment Stack

Evok is NPSTs Payments Platform-as-a-Service (PPaaS), originally designed to serve banks and payment aggregators. Today, were extending its capabilities through a verticalization-first approach, tailored to meet the evolving needs of industries such as NBFCs, mutual funds, and insurers.

With its modular, API-ready architecture, EVOK empowers each vertical to integrate only the components they require, whether its pay-in, pay-out, auto-pay, reconciliation, or fraud management, delivering flexibility without complexity.

Global DPI Opportunities

Indi a s Digital Publi c Infrastruct u r e (DPI ) mode l is eme r ging as a benchmark for other developing economies. NPST is actively pursuing global opportunities to replicate this success. NPST has secured its first international contract in Africa, marking the beginning of our expansion in the MEA region. This initiative reflects our strategic vision to extend Indi a s p rov en P a y T ech inn ov ations t o eme r ging markets. Thus, empowering financial inclusion and digital transformation on a global scale.

New Areas for Growth

As we look ahead to FY 2025-26, NPST is set to advance a series of high-impact initiatives under the banner of Payments and Beyond. This is our strategic blueprint to derisk, di v ersif y , and lead in the n e xt phas e o f Indi a s financial evolution. These initiatives align with emerging regulatory frameworks, infrastructure modernization priorities, and the expanding opportunity landscape across embedded finance, digital commerce, and intelligent payment systems.

Centers of Excellence: Driving Innovation and Expertise

NPST is establishing Centers of Excellence in key areas such as RegTech, compliance, and advanced analytics. The idea is to support our mission of delivering intelligent, scalable, and future-ready solutions. These centers act as innovation hubs, combining deep domain expertise with next-generation technologies to help clients address complex regulatory requirements, manage risks proactively, and streamline operations in a digitally evolving landscape.

Transition to the Mainboard

As NPST continues its growth trajectory, the Company received approval for the transition to the Mainboard. This is a significant milestone that reflects our operational maturity, robust compliance culture, and long-term value creation strategy. This move will enhance our corporate visibility, attract a wider pool of institutional investors, and position us for sustained leadership in the PayTech space.

Market Opportunities

NPSTs growth strategy is driven by a structured approach to market opportunities, categorized across existing and new products, as well as customer segments.

Existing Products ?€“ Existing Customers

We continue to strengthen relationships with current customers by delivering incremental improvements and functional enhancements to existing products. This includes upgrades to our core switching infrastructure, enriched merchant acquiring capabilities, and enhanced reporting and settlement tools. We are also embedding advanced features, such as dispute resolution automation and AI-driven fraud analytics, to enhance service quality and operational efficiency.

Existing Products ?€“ New Customers

There is significant potential in expanding our proven offerings, such as switching, payment orchestration, and UPI-based solutions, to untapped customer segments. These include mid-sized banks, payment aggregators, cooperative banks, regional rural banks, NBFCs, and new-age Fintechs seeking robust, embedded payment

infrastructure. With the digital shift reaching offline-first regions, our offerings are well-positioned to support the next wave of adoption in underserved markets.

New Products ?€“ Existing Customers

We are actively introducing new products to meet the evolving needs of our existing clients. Solutions like the Risk Intelligence Decisioning Platform (RIDP) open up new avenues for large banks and Fintechs to scale digital infrastructure. Additional innovations include digital lending rails, integrated bill payment platforms, and credit line management tools. These are complemented by AI-based risk, compliance, and fraud monitoring layers that deliver added value to our clients.

New Products ?€“ New Customers

Our diversification strategy focuses on identifying new customer-product combinations to unlock fresh revenue streams. We are expanding into adjacent verticals such as insurance tech, micro-lending, and public sector digitization. New offerings, such as cash disbursement networks, credit- on-UPI services, and banking super app frameworks, help us reach a broader base. Strategic initiatives such as Bank- in-a-Box offer hosted, full-stack banking infrastructure, accelerating digital transformation for cooperative banks and regional institutions.

Competitive Strengths

Brand Recognition

NPST is a trusted and well-recognized brand known for its thought leadership and innovation in financial services. Our strong reputation is built on a foundation of reliable execution, customer-centric design, and active collaboration across the banking and fintech landscape. This has positioned us as a preferred PayTech partner in a rapidly evolving industry.

Extensive Domain Expertise

With deep experience across the financial services spectrum, NPST stands out as the only provider offering fully integrated solutions across the financial value chain. Our two business lines, Technology Service Provider and Payment Platform-as-a-Service, create a powerful flywheel effect, amplifying customer value. This unique positioning enables us to anticipate client needs and develop tailored, future-ready solutions that are aligned with regulatory and market trends.

Long-Tenured Customer Relationships

Long-term, recurring contracts with leading banks and PayTechs drive a significant portion of our revenue. These durable relationships enable us to gain deep access within

customer organizations, fostering trust and collaboration. As our suite of offerings expands, we continue to unlock cross-selling and up-selling opportunities across multiple business functions and use cases.

Modern, Cloud-Native Technology Stack

Our platforms are built on modern, cloud-native architectures that support seamless integration, rapid scalability, and system interoperability. This technical agility enables us to embed our solutions within client ecosystems. It helps us empower them to modernize their operations with minimal disruption while maintaining regulatory compliance and high availability.

Branding

The NPST brand is built on a foundation of technology innovation and customer-centric service. As a new- generation PayTech partner, we empower banks and fintechs to modernize their payments infrastructure, drawing on over a decade of experience in delivering full-stack digital platforms. By combining deep industry expertise with cutting-edge technologies, including generative AI, we help our clients navigate the fast-moving landscape of regulatory shifts, technological disruption, and evolving business models.

Marketing Models

NPST has activated a robust multi-channel strategy, driving event participation, social media campaigns, and amplified PR efforts. This has significantly enhanced its presence in the PayTech industry. This strategy was closely aligned with major product launches, participation in key industry events, and customer-centric workshops aimed at building trust and fostering adoption

Industry Engagement

The Company actively participated in marquee industry events including Global Fintech Festival and conducted a series of customer-centric workshops designed to build trust and foster adoption of its products and services.

We participate in premier business and industry events, while also organizing our own signature events and CXO roundtables. Paynovate, our bespoke workshops for customers and clients to deepen product awareness, showcase value, and nurture long term relationships is gaining traction.

Awards and Recognition

NPSTs efforts were recognized with over 12 prestigious awards across corporate and product categories. Notably, the Company received the Frost & Sullivan 2024 India Company of the Year Award in the payment technology

industry. Thus, highlighting its pioneering solutions and market-leading position.

Enhanced Public Relations and Brand Storytelling

By strengthening its social media presence and public relations initiatives, NPST amplified its visibility, strengthened credibility, and reinforced its leadership in the rapidly evolving PayTech landscape.

Strengthen Customer Centricity

A t NPS T , cus t ome r centricit y is mo r e than a priority ; it is a core value woven into our culture. We place great emphasis on listening to our customers needs and integrating their insights into our product development and strategic planning.

Our commitment extends beyond innovation; we are dedicated to enhancing customer service and delivery. We aim to create positive experiences throughout the project lifecycle by integrating our people, processes, and systems to bolster support and delivery frameworks. This holistic approach positions NPST as a trusted partner and advisor.

We are on a relentless path of improvement, consistently engaging with key customers and industry leaders to gather feedback. This input drives our ideation, collaboration, and growth, reinforcing our commitment to enhancing stakeholder value and maintaining their confidence in us.

In alignment with our customer-centric philosophy, we are strengthening our functions in marketing, sales, account management, and delivery. We enforce rigorous governance standards to ensure that our product, technology, operations, sales, pre-sales, and delivery teams are aligned in their efforts to drive customer satisfaction and achieve excellence.

Organizational Transformation

A t NPS T , w e beli ev e that o r ganizationa l g r owt h and cultu r al evolution must go hand in hand. We operate with a mindset of continuous improvement. This holds true not just in the platforms we build but in the culture we cultivate. In 2023, we expanded our team to its largest size to date, marking a significant milestone in our journey.

To support this trajectory, we are investing in the development of future leaders who will advance NPSTs mission. We are actively hiring senior levels to deepen our product orientation and establish dedicated business lines. This includes strategic expansion across compliance functions, marketing and branding, pre-sales, delivery, and account management functions.

With a growing, geographically diverse workforce, we have institutionalized our organizational value framework,

ICARCI: Integrity, Collaboration, Accountability, Respect, Customer Value, and Innovation Focus. This framework is the cornerstone of our culture and leadership model. It is designed to guide our next phase of growth and align our people and product excellence.

Talent Development

NPST is committed to nurturing a future-ready workforce and embedding a culture of lifelong learning. Every NPST associate is empowered to take ownership of their development journey. We continue to invest in internal talent pipelines through focused talent acquisition and reskilling programs.

Talent readiness for critical capabilities is being accelerated through initiatives such as the Employee Talent Grid. This supports assessment upskilling and specialization in emerging areas like AI, data, cybersecurity, and product management. Our learning infrastructure is designed to adapt to market needs and individual aspirations. Thus, ensuring that our workforce remains both agile and ambitious.

Compensation and Recognition

NPSTs compensation philosophy is merit-based and benchmar k ed against indust ry s bes t p r actices. Remuneration levels are determined by qualification, experience, specialized skills, and performance. This transparent and performance-oriented structure supports our goal of rewarding excellence and encouraging long- term commitment.

Strengthen ESOP Policy FY 2025-26

The Company is in the process of revisiting and strengthening its ESOP policy framework. The objective is to enhance inclusivity, align employee goals with long- term business strategy, and reward performance through meaningful ownership opportunities. This initiative reflects the Compan y s commitmen t t o fosterin g a cultu r e o f sha r ed growth, accountability, and long-term value creation.

Employee Engagement

Our talent engagement strategy is rooted in our Engagement with Purpose (EWP) model. It places associates at the heart of an integrated approach to work-life well-being. Health, financial security, and emotional wellness are key priorities. We provide comprehensive support programs and foster hyper-engagement through community initiatives, leadership connects, and cross-functional collaboration, strengthening the sense of belonging and unity across the organization.

Retention and Leadership Continuity

NPSTs values-driven culture, progressive people practices, and substantial investment in individual growth have improved retention rates. We are focusing on strengthening our mid-management layer to ensure continuity, contextual depth, and a robust succession pipeline into senior roles. This evolving leadership bench is instrumental in integrating new talent and sustaining organizational resilience.