Network People Services Technologies Limited (NSE: NPST) Q1 2026 Earnings Call dated Aug. 12, 2025
Corporate Participants:
Unidentified Speaker
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
Analysts:
Unidentified Participant
Harshil Panshani — Analyst
Akshay — Analyst
Srinivas — Analyst
Suman Patara — Analyst
Harish Kumar Gupta — Analyst
Keshav — Analyst
Nitin Gupta — Analyst
Ashish Soni — Analyst
Hardik Gandhi — Analyst
Pratik Chaudhary — Analyst
Nishant — Analyst
Presentation:
operator
SA.
operator
Ladies and gentlemen, good day and welcome to Network People Services Technologies Limited Q1 FY26 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 on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Harshil Panshani from Kiran Advisors. Thank you. And over to you sir.
Harshil Panshani — Analyst
Yes, thank you. On behalf of Kirin Advisor, I would like to extend a warm welcome to everyone joining for the NPSC Limited Q1 FY26 conference call. We are pleased to have with us today the esteemed senior management. Mr. Deepak Chand Thakur, Chairman and Managing Director. Mr. Ashi Sagarwa, Joint Managing Director and Ms. Savita Vasish, Executive Director. The call is headed for 40 to 15 minutes. To ensure that everyone has the opportunity to participate we kindly request that each participant participate limit their questions to two. Hence this will help the management address as many as queries possible within the time frame.
If we are unable to address any questions during the call, please free to reach out as@infoadvisor.com we’ll be happy to coordinate with the management team and arrange further discussions. We appreciate your understanding and cooperation. We look forward to an engaging and productive call. Now I hand over the call to Mr. Deepak Chantakur. Over to you sir.
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
Thanks. Thanks Ashid. 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. And 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. Also I thank our board for backing up very strongly when it was required. And you know the results are only upward from here. So what I’ll do is I will just like you know what I do usually I’ll split this call into three to four sections.
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. This will, you know, give you some sense about the the immediate and the. Long term impact over the business. Then I’ll also let you know some. Roadmaps that we have built which is. Going to trigger larger potential for the company. As and when we go forward then that’s something to look up to and then I’ll open this up for the Q and A. So you know the total income for Q1 has grown by almost about 25% as compared to Q4. This is about, you know from 28 crore we have gone to about 35 crore odd. And although you see there is 500. Basis point dip in EBITDA percentage now major contribution of course coming from TST business. Now that’s being the nature of the business. However the absolute number is on a higher side which is about 7.5% higher from 10.5 to about 11.3 crore. At the same time net profit is. About 19.7% higher from 6 crore it has gone to about 7.19 crore. Now this being the first quarter for FY26 we have successfully presented our financials in accordance with. Ind as along with. The comparative figures from the previous year. Now you know 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 desk. 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 300 crores. We have EGM due by August 10 to take all your approvals post that we can further proceed with the process of completing the transition.
Now you know what, what does this mean? It further validates our strong positioning in. The pay tech industry. It further talks about our growth story which will continue over a long term period. Our strategic steps and decision which is not limited to what we are doing but the agility with which we are. Picking up the opportunities, solving industry use cases and creating a revenue roadmap by. Building value proposition in the industry. Now that has been forte of npst. Our performance over 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 fast track the requirement. We have around 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 a 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 empanelled with. The government PSUs looking at an opportunity in this segment you have secured a. Major bill pay order from a large psu. Now this reinforces our position in the bill payment segment. We are driving deeper engagement with corporates. And fintechs by getting into the turnkey project solution. At the same time PPAAS business which everyone wants to hear. We have started scaling steadily with significant growth projected in upcoming quarters. So the scale has already started. Beyond papg we have started collaborating with large merchant federation which we have already signed that gives an access to, you know, mid to large 150 odd merchants. At the same time we are strategically. Partnered with industry players which gives an access to 50 plus 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 new revenue stream which is around, you know, the auto pay and payout. We have already given the access to our partners, they’re 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 system. Beyond this the additional area which you know last year was not contributing to our P and L but like I said that you know the agility with which we work is try to add. More and more opportunities and more and. More products every year and that is acceptance ecosystem. One big order which you heard last. Time was Central bank of India which. We got at the end of Q4. So we have now secured additional orders. From all our existing clients. We are Preparing to launch 10 new devices in GFF which is required as. And when we are going forward. We are seeing the gap in the industry so that opens up a lot more opportunity for us. At the same time we have identified an investment opportunity in device as a service model. Now this will enhance our scalability in. Bringing business through the acceptance ecosystem. Now for last one year we have. Been working on building NPST’s own hosted ecosystem. So the idea was how do we bring all our products and services in one single environment and give it a SaaS based model. Now that is what we have been working on for quite long and last quarter we were able to complete our compliances and we are in a position. Right now that by this quarter we. Should be able to, you know, get that piece done where all our products. And services will be hosted for small to medium sized banks, regulated entities and fintechs. Now this opens up lot of opportunity. Around this area when it comes to global footprint Q1 we got the order. For the Africa opportunity somewhere mid quarter and let me tell you that we have enabled AI for the development strategy and this is the reason why within. Two and a half months we were. Able to execute and close phase one of the order. Now 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 Middle East. Apart from this, we are currently in process of working in new business model. Sorry new products which are, 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 NCMC payments transit. So that is also an area that we are working on. And third is obviously apart from web and apps we see huge potential through the devices the POS business. So that is the area that we are also trying to target in this global fintech fest. That’s majorly from us on the business updates. Beyond this I would say, you know, let us get on call, try to. Understand from you guys and I’m happy. To answer your questions. So Harshin over to you.
operator
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 Touchstone 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 Akshay from AK Investment. Please go ahead.
Akshay — Analyst
Hello sir, good evening. Thanks for the opportunity and thanks for. The good improvement in the financials. Yeah, you’re audible, you’re little low but I can hear you. Yeah. Now it is better, much better. Yes. So sir, my first question is how much of our revenue was transaction based and how much was SaaS based in quarter one of FY26?
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
Quarter one our major revenue was TSP so and very less, very less revenue. From PPAs it has picked up in this quarter. The second.
Akshay — Analyst
Okay. And yeah we are already progressing well on quarter on quarter but year on year still we have shown very significantly growth in this quarter. So what is your thought process on upcoming quarters and how much do we see progress in FY26 as a whole?
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
We are very strong in our anticipation that somewhere by Q3 we will be breaching the highest quarter which we achieved last year. So that’s well on mark. So, so you can anticipate from that the positiveness in the organization. So we have already picked up that thread.
Akshay — Analyst
Okay sir. And sir, my last question is do we have any update about mdr? Because recently one of the one of the members said that UPI can’t be free anymore and MDR will be implemented in upi. So do we expect in near time that MDR will be implemented in UP and we will some better, you know growth about that.
Akshay — Analyst
Dr. This is a regulatory question. I would like to stay away from. That because that’s in the news by. And 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. So let us observe that and as a company we’ll try and see how to you know, structure us. But this question is not for us. It is for the regulator or maybe someone who is the decision maker that site.
Akshay — Analyst
Okay sir. Okay. And sir, last one small, small question is payment gateways are our customers and they are not our direct competitors. Is this that understanding?
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
Right? Absolutely correct. Payment aggregators are all our customers. Okay.
Akshay — Analyst
Okay. And payment gateway also, right?
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
Yeah.
Akshay — Analyst
Okay sir. Okay. Thank you so much and all the best for the future upcoming quarters.
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
Thanks Akshay.
operator
Thank you. The next question comes from the line of Srinivas. Okay. From tia please go ahead.
Srinivas — Analyst
Hi Deepak. Tell me congratulations for the strong numbers. Thanks Mike. My question is about the new launch that you talked about. Posted cloud for payment product. I just wanted to understand how this is different from the competitors like Sauratra Gita offering this kind of services. Is it similar one or it’s. Are you having any ho.
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
So one name was correct, the other one was not. Not 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. So the competition again if you split. That competition product wise you’ll realize that. All the product which has been built. So far now that’s where you know. They may have the edge. Okay.
Srinivas — Analyst
But every year there are new products and solutions launched by the regulator. Now what we decided was every single product that we have let us bring it on the hosted model.
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
Now although there is a consolidation you. May be aware that one one big thing that happened early this year was cooperative banks was were also given the acquiring opportunity. Right now this opens up gate for. Everyone who are in the. So there are about 70 odd acquiring. Banks but total bank in UPI issuer is 670 plus. Now look at the gap. So 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. So we see this as an equal opportunity for everyone. So this is the right space where. We feel SaaS based revenue will kick. In for the company when it comes. To the payments and the digital solution being demand as and when we go ahead, the cooperative banks, the small finance banks, all of them payment bank or. Or every fintech they will require more. And more digital solutioning. So here onwards it’s only upward of the demand and this being consolidated between. 1, 2, 3 players. I think there is a need for 4, 5, 6 also in this. So you want to have that space.
Srinivas — Analyst
I see. So how many tenants you are planning like how many are pilot and how many you think it will be live in this year?
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
100 plus tenant in next 24 months. I think that’s. We already have six. We have. We already have six lined up. As soon as we go live we’ll start with six.
Srinivas — Analyst
Okay, my next question is in your introductory comments you talked about new opportunity like device as a service model. Right? So yeah. So can you walk me like walk me through how that works like power device economics, how it will work.
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
So. So I don’t know if you. I think on the retail side when you go to market, have you observed in last few months, last six, seven months you have started seeing bank devices. Now have you started observing that you see eu, tmb, sbi, some bank device. In some model you’ll find somewhere. Okay, so earlier it was zero.
Srinivas — Analyst
Okay. Now what has happened is banks have started taking the note of CASA impact. Of acquiring an offline business and staying there.
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
Now this is where the opportunity is much larger. So device as a service model what it usually does is it takes away the entire capex cost for a bank to start entering into the offline business. Now here again there are two things we need to understand. We got some of the large order in the country including CBI which happened last year. We are doing, you know Karnataka Bank. So we currently have about 11 odd banks where we are working. So the learning is great. What we intend to do is going. Forward what more. Channel of payments can. Be added to these particular solution? 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 So as and when. This multiplies again the overall market demand increases. That’s device as a service module.
Srinivas — Analyst
Thanks. Thanks for explaining that. And my last question is about a fraud thing that you talked about it. What kind of models are in production for your AI fraud engine? Like real time, scoring, latency, all those things. What kind of models are in production?
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
There are three things that we’ll be doing. One is in the enterprise level. We are going to plug in this. Particular solution as part of our payment platform data way. This goes as a value added service to every single acquiring bank and every. Single payment aggregator who 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.
Srinivas — Analyst
So that’s what it does. What essentially does is it predicts and it gives you an idea that there.
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
Is a possible fraud in the system either through the bad merchants or through bad transaction. You need to address that now basis that it start triggering the alerts and. Then you have to take an action. So we have done both as a part of our platform and as separate. So that’s, that’s how we are working right now.
operator
Thank you. The next question comes from the line of Suman Patara from Texas and consultant. Please go ahead.
Suman Patara — Analyst
Hello. Hi Deepak. Congratulations. Excellent numbers.
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
Thanks.
Suman Patara — Analyst
Suman, I have just two questions. One is I believe you have raised a lot of cash. What are your plans for that? Hmm. I’ll answer this first.
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
Yeah. Okay. So you know, 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 lot of guidance to this organization. So more than money, it was also. About the kind of association and the kind of, you know, strength this organization. Can get with such kind of guidance. So that’s, that’s something. But when it comes to money, you know what we have done is we have a very structured and thought through process around the growth. So just a second, I will give you. So one is we want to ensure that our growth path around inorganic structuring of the business is rightly achieved. So one product, second service, third business. Okay. Irrespective of the domain that we are operating like it can be pay pass, 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. And the new area of interest like. You know, are what, what we further try to See that what more can we do for the expansion? So we built APIs and then we gave web solutions, we give app solutions. But the acceptance of payment beyond this is also through devices. And we believe there’s a huge gap. And that’s why we have a literally. Plan around payment infrastructure development fund by the government. So that’s the area that we really. Wanted to target because it not only has the domestic demand, it has the global demand and it is agnostic to the domestic design of payments. So now that is a specific vertical. Where we see 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 and credit card domain, I mean 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 line available around msme. 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 and having a platform around that. Will be a great opportunity for us. So these are three to four areas where we feel there will be a right utilization of funds.
Suman Patara — Analyst
Okay, you, you can give some ballpark. Figure where you can be let’s say. Three years down the line, four years down the line in terms of top. Line 20, 29 or 30.
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
The expiration is very high. I don’t want to bound, 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. But there is lot that we are developing and building which will start hitting our P L maybe you know, 3/4 down the line or 6/4 down the line. And the fund, and the fundraise that we are doing right now, it will also have a significant impact. So all that said and done, you. Know, we of course want to, you know, go back to the trend that. We set last year. You know, every quarter, the pace at. Which we were going every year, the. Number that we were achieving. So that’s what we intend to achieve. You know, going forward from this financial year. So not good to put a number. To it for now. But yes, the intent is let us. Breach the highest performing quarter in, you know, in next two quarters and then. From there pick up the same trend, whatever we were trying to build. So I hope that gives you an idea of what number we want to achieve.
operator
Thank you. The next question comes from the Line of Harish Kumar Gupta from HK Marpa Trading. Please go ahead.
Harish Kumar Gupta — Analyst
Hello sir. Hello. Hello. A couple of times mentioned highest performing. Quarter means to be more precise. September quarter 67 crores up by in December quarter. Yes. Is because Hamara platform business. Revenue or margin. Okay, okay, okay. I think I got my answer. Okay, thank you. Thanks a lot and congratulations. Thanks. Thanks sir.
operator
Thank you. The next question comes from the line of Keshav from Nivisha. Please go ahead.
Keshav — Analyst
Yeah, thanks for the opportunity and congrats on the strong quarter. So can you please elaborate more on your hosted cloud for payments vertical. Keshav we currently have all our solutions and forever we have been focused on the. Large to mid sized banks like Kanga bank or two of the largest RRB. In the country, second largest cooperative bank, one of the largest, you know, PPI. Holder in the country. So that’s, that’s how we have been working so far. So our solution was designed for large scale consumption. But can we do a sachet based solutioning for small to mid size banks now? That’s a much larger opportunity. So what we did was whatever solution.
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
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. Now when we have such kind of. Agility and the modules are built in. Such a way that it’s way too productized and there’s very less customization, it. Brings down the cost heavily and then. Consumption of infra consumption of that, you know, service required to continue this kind of delivery. So all that is part of the hosted platform. So when we say hosted it’s not the in freight, it’s about the end. To end turnkey solution required by a bank. For example, if you need upi, I. Am your de facto solution provider, right. From infra application services and the future scale and then going forward, whatever is. The new industry trend, everything you have. You can look up to npst. So we wanted to bring all our learning, decade long learning onto a hosted. Platform and take it to these banks.
Keshav — Analyst
Who are agile and really look up to growth strategy. So that’s the hosted platform. So UPI imps, Mobile Banking Omni, all of these will be hosted on this platform. Are you going to host your own servers for this or.
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
So we’ll be hosting it on private cloud which will be of course managed and managed by the data center, not by us. But the entire ecosystem will be built. And certified by us. So all the compliances around running that cloud will belong to us. Whereas Managing those security and infra will. Be done by the expertise who are running the data centers.
Keshav — Analyst
Got it. And all of those that you have raised. So how much percentage are you going to spend on this vertical? Like if the number is there otherwise. You’Re referring to hosted.
Keshav — Analyst
Yeah, no, we are driving it through our cash flow.
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
So as in when we scale further, like I said, anything, wherever there is, there is a, there is a growth opportunity through inorganic then going forward in a year’s time, if this particular hosted solution demands some kind of strategic scale. That is where we can look up. To, you know, utilizing those funds. But for now, we are driving it through our cash flow.
operator
Thank you. The next question comes from the line of Nitin Gupta, an individual investor. Please go ahead.
Nitin Gupta — Analyst
Am I audible?
operator
Yes sir.
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
Yes Nathan, tell me.
Nitin Gupta — Analyst
Thank you for the opportunity. Because I was listening to your contact points earlier in this call, my first question is with respect to the fundraise that you have done, I understand that you indicated a lot of things in which you will be working on for which this fundraise may be required or so is it like it’s only for the external or the incremental manpower that will be putting in, we require this or it’s like for purchase of some hardware or something? Because I don’t think it’s.
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
It varies for Nitin, right? Your name is Nitin, correct? Yeah, so it varies. Nitin. So for example, if it is acceptance ecosystem wherein, wherein there is an OPEX. Based revenue over the period of, let’s say three years committed over the device. As a service model, then in that case if at all there is a need to pick up a larger order and then the pace of delivery is way too fast, the demand has come really fast. Then in that case if at all required, then we can think about utilizing this fund for the hardware piece and. That for us may be hardware, but. When it comes to building a very strong domain around lending, then 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, then that is an opportunity for us. So I say that’s why Nitin, it varies with the kind of opportunity we see forward.
Nitin Gupta — Analyst
Okay. Because see as a DNA we have built payment stack, right?
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
If you want to, if you want to scale it to lending, if the journey can be brought down from 24 months to 6 months now that’s the opportunity that we want to capture. So in that case it can be people process everything taken together platform all these. Okay.
Nitin Gupta — Analyst
Okay, thanks for that. One final question which I was hearing is like I think since I’ve been attending calls of NPSP. So I think one or two quarters back you indicated that there were some 150 odd open positions in NPS.
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
Sorry, there was. There are some 150 odd open positions. I mean with respect to hiring, correct?
Nitin Gupta — Analyst
Yeah. So I was asking like if you can update this information and there is a suggestion like in the investor day, if you can put in the employee count, will it be possible for you like in the investor day had this information published?
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
Okay, if you can help me understand the objective. Sorry. Yeah, the first one was with respect to the open positions which were there like I think one or two quarters back you had said that there was a 150 odd open position. I wanted to relate to as to are we able to what we are looking for in the market for the person. So how are we basically moving on to that path? So that’s why I said like if you can indicate the employee call on a quarterly basis like every it’s. I mean basically we have the services come to indicate that. But if you can also include that information then it will be helpful for us to basically see how we are growing from.
Nitin Gupta — Analyst
I got the point. Employee as an indicator. You want to see employee account as an indicator? Fine. I mean okay, fine, we can do that. But let me tell you that we still have 100 plus open positions and I think currently our headcount is more than 350. In fact there is. There is a growth and beyond this just to give you an idea about this. When you adopt a certain technology now we all know what AI can do.
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
And I believe that this next one, two years is very critical for tech companies to understand the importance and adopt it. So one of the use case which. I 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. We just shifted few people to this particular role and within two and a half years we were able to deliver that. So there can always be a. So I hope you understand that the. Incremental work if you are trying to relate to that may not necessarily be related to the head count. However, the head count will only multiply that. That is what I can see right now. So we still have 100 plus open positions. We have added much larger number of employees in last one year. So I hope that answers your question. So we will. I’ll give the feedback to my IR. Guys to include some indicator around it.
operator
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.
Ashish Soni — Analyst
Regarding usage of the fund so in how much duration do you want to utilize and whatever you spoke I think it’s lending platform you’re targeting, is that correct in terms of acquisition? If my reading is correct. Because your domain expertise is in payment space.
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
Yeah. So we are, we are extending credit. Line over payments now. So we are, we are looking at that segment also. We don’t want to let that go. So credit line over UPI is an area. Lending over payments is an area. Invoicing over payments is an area. So these are all areas that we want to capture. So. So it’s not just lending but also we have acceptance ecosystem, we have global growth and then wherever there is an inorganic opportunity in the existing set of. Business so it is such a spread across these areas will be way too early to you know, close on these points. And in terms of growth aspiration for. Next three, four years. So which all areas of segments of verticals you are targeting like most revenues if you have any high level thought process on that in terms of percentages at least. So we believe payment platform which was, we actually built that particular engine in the market and brought it first. So that’s one area that will continue. To grow tremendously and this will follow. The trend wherein UPI going from 18 billion transactions a month to about 30 which was initial target and now 100 billion transactions a month. If that’s the aspiration this country is holding on until 2029-30. We are seeing that the market growth. Itself is 5x so either we are. 5X or we are more than that. So we see payment platform as, as. A much stronger contributor. Secondly RBI brought in their vision document in. You know recently we see lot of. Potential around the rectech frauds and compliances so that for sure in next two years not in first two years but. Next two years will contribute heavily to the growth. Third all new payment products like Internet banking interoperability that’s completely new stack great opportunity there. Digital currency only with about 16, 17 banks again regulator demand.
Ashish Soni — Analyst
That’s a great opportunity. Then again, you know, so. So what I’m trying to say is that there is so many new product requirements around payment which will Keep on getting added. So 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 solution coming in there. Third is the regulatory technology which takes care of the frauds and the compliance requirement of regulated entities. And of course I believe that acceptance ecosystem will play much larger role in the entire state.
And then we have much more that we are working on. Lending apps still not counted but that will be really big contributor. But that is again two years down.
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
The line then global, that is again. Going to be another contributor. So there are a lot of triggers. The first two, three are critical for us to continue because that has really matured well. And in terms of headcount, you said.
Ashish Soni — Analyst
AI, you didn’t require too many headcounts. So in terms of like two, three years, where do you see a headcount growing? I, I suppose it will not grow. In line with your revenues, right? It will be like lesser. Is that understanding correct?
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
No, no, no, no. I was just giving an idea that if you are taking headcount as an indicator that 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. So that’s, that’s what they are sitting on right now. And this may continue to multiply but skill set will differ. The, the, the type of people and, and the position will differ. AI will then bring down the, you know, laborious job around tech and product. So there the headcount may not be required.
So it will not be like you know, in 24, if I was expecting 100 people to be hired in tech. And product for the same job today. I may not be hiring 100, I may be hiring 50 odd. But the incremental number will always be there. That is what I’m trying to say. And in terms of disruption from.
operator
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 Hardik Gandhi from HPMG Shares and securities Limited. Please go ahead.
Hardik Gandhi — Analyst
Hello. So 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 promoters sold in the open market also. So was that a part of a requirement from Tata?
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
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. OFSP as well now because we bought. That opportunity from Tata and they were. Actually you know, looking at you know. The overall, you know, the size. So that was that. I think that was informed I guess in last Q1.
Hardik Gandhi — Analyst
Okay, I might have missed that. Apologies for mine. And the second, so what happened was in Q1 we took the board approval and then we had put this up already but after one year it expires. If I’m not wrong, I think my CS explained me this. And then now this year when, when the, when we got onto main boards then 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, that really helped. Yeah, sorry, carry on. And what would be your holding post stake sale as well as the preferential if every. Everything was as bad?
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
Ashish, can you help answer that?
Unidentified Speaker
Yeah, yeah. Till now we have 67.55% holding and. After this dilution it’s near about 65. And after preferential share it will change maybe around 61% you can say.
Hardik Gandhi — Analyst
Okay, okay, understood. And second question is on the business front, where the 300 crores out of this all will be used for inorganic growth? Or do you plan to, you know, use 200 crore for inorganic? Like is there a bifurcation which you. Have in mind and how, how confident are or how have we selected a target company?
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
Just your thoughts on those things say. As and when we go forward you will get that in news.
Hardik Gandhi — Analyst
Okay, so. So just, 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.
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
Yeah, maybe you will buy a. Yeah, maybe you’ll buy your IP product or. Maybe I’ll buy a ready product. So. Or maybe I’ll buy accounts business, you know, so that, that’s about inorganic area. Second is building the entire vertical altogether. So creating an absolute DNA for this. Segment around and lending and acceptance ecosystem. Now that, that is also something that we are keen on. So. And then going global, designing the solution such a way that we are able to capture larger piece in Africa, Southeast Asia and Middle East. Then that is also something where we feel that now we have a. Now our hands are flexible. We can actually go beyond and you know, go faster. That’s. That’s the overall objective. So it’s not only inorganic but since you mentioned I.P. I was just wondering how for the newer products which we have have, we do we have a paid like registered IP for like the fraud detection as well. Not international, domestic, but every single solution till date is design conceptualized, indigenously and. We hold the trademark nip for that.
Hardik Gandhi — Analyst
Okay, thank you. Thank you. That’s it from mine. All the best for the future.
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
Thank you.
operator
Thank you. The next question comes from the line of Suman Patara from Texas and consultant. Please go ahead.
Suman Patara — Analyst
Yeah. Again. Yes. Can we just quantify what percentage of our operations are AI based and maybe three, four, five years down the line what will be, what percentage will be the AI based operations? Is it possible? Way too early. But I can just let you know.
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
That I have given goals in within. The organization to you know, to like tech product and ops. I have the goal this year Is. To adopt AI to an extent of 30 of their entire workload. So that’s what 30 of their entire workload. And this year’s, this year’s target when so. So tech products are sticking together. Okay. Now next year we’ll have to see how the industry evolves and what is. The impact basically that we can set. The target going forward. But I believe it is only going to be incremental. Definitely. Yeah. Maybe at some stage one can go 60, 70, 80%. Never know. I guess the trend at which we are seeing, we never know.
Suman Patara — Analyst
Fine, thanks. All the best. Thanks.
operator
Thank you. The next question comes from the line of Pratik Chaudhary from Samartha Capital. Please go ahead.
Pratik Chaudhary — Analyst
Good evening sir and congratulations for very good numbers and guidance for future. Sir. On our future for this, the payment platform as a service where we are going to see majority of the growth. How have we, you know, de risk the business, business model there in terms of like I saw in the presentation that now we have three banks instead of one earlier. So if you could maybe name those. And second in terms of the end segment of merchants where we were getting business earlier has that, I mean going forward, will that also diversify very significantly for us such that you know, 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 so for the second one the answer is simple. We are not acquiring merchant. We are not the aggregators.
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
Okay. We sit inside banks ecosystem and create. The acquiring space between bank and payment aggregators. So the idea is how do we. Bring the acquiring capability more and more. In the payment space. So that’s how we look at it. So because on the other side is not direct merchant but aggregators and the master merchants and banks customers and banks account holders. So we don’t look at a specific segment. So. So it depends on what they bring in. So we have built our structure in such a way that any merchant category which is. Which is approved or authorized they can. Use this particular platform. So other side, I think that particular. De risking is always there. The second one is on the bank side. We initially had only cooperative bank. Now we have a private sector bank and then we have a payment bank. So these are three types of bank. More than the name of banks. The type of banks also matter at. The time de risking. So these. I hope that has the business started with the. With all three of them. Yeah, yeah. Two of them majorly. The third one is. Is not third one is yet to pick up. So it’s. It’s. It’s taking time but it will do. That.
Pratik Chaudhary — Analyst
Great, great. Two years. And the last question. This major bill pay order from a large psu. If you could disclose what sort of range is that order in in terms of maybe 0 to 50 or 50 200tr.
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
No, no, that’s not how the. It cannot be so it is. It is such kind of orders are under. So we are not. There is no hardware component in this. It’s a software. So the range is obviously over a crore. There is no doubt about it. But this was the. 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. So we have like I think four or five accounts already on bill pay. And this was a large deal which. We got through rfp. It’s not fifty hundred crore. It is. It is under two crore maybe.
Pratik Chaudhary — Analyst
Okay, thank you sir. I will get back in the K.
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
Yeah, yeah, thank you.
operator
The next question comes from the line of Nathan Gupta and individual minister. Please go ahead.
Unidentified Participant
Yeah. Thank you for the opportunity. One more time, just one question I was having with regards to the guidance which you have given for Q3 like hitting the all time high. Sorry. Guidance I’ve given for. Just a. Okay. Yeah. Is it better now? Yeah, much better.
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
Yeah. I was saying like the guidance as. In Q3 being the. I mean we being able to touch. Our all time high quarter in this Q3 or current financial year. So I was thinking like will it. Be completely organic or we are assuming. That some kind of an acquisition or something with the help. Sorry I missed that. Organic. Organic.
Pratik Chaudhary — Analyst
Okay. Thanks. Yeah, that’s all for my side. Thank you.
operator
Okay, thank you. The next question comes from the line of Nishant from xgs, Please go ahead.
Nishant — Analyst
Hey, Deepak. Hi. I have multiple questions. One is that we. Our margins have fallen down. So is that sustainable?
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
Yeah, it is. Basically the contribution from TST was higher. So that’s the nature of the margin that we usually have in TSP. Earlier we had a balance with TSP and PPAs together. So you will see the impact in coming quarters.
Nishant — Analyst
So what is the sustainable margin? So I can see that June 24th was 35%, September was 35% and now it’s 30. Right. So is it a range of 30 to 35 or I can expect 35% margin to be.
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
It is 32. EBITDA you’re referring to. Right? It’s around 32 if I’m not wrong. But yeah, it is. It is always above 30. That’s. That’s what we see in. In these software sales.
Nishant — Analyst
Okay, I can see 29.24. So maybe I’m looking at a different.
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
Number this current quarter. 29.24. It’s open in front of my screen. I guess32.5. You’re referring to EBITDA. Yes. OPM margin. Yes. Maybe because due to. On the basis of sale or total. Income, which is okay. But yes, Deepak is right. We can anticipate more than 30%. Okay.
Nishant — Analyst
And also we mentioned that we will beat our September 24th quarter. Are we saying in September 25th and are we talking about sales only or are we talking about OPM and PAT as well?
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
We are targeting all the categories December, not September. So Yeah, I said Q3. Q3. So Q2 would be same. We will maintain the same 20 pad growth trajectory that we are maintaining. Trend will pick up so that Q2 is much higher. And then by then we should. That’s the aim is to breach that. That mental block by, you know, clear it in Q3. By Q3 and what’s the reason for.
Nishant — Analyst
The QIP and because that will bring down our Roe and Roce big time. So what are we planning to use that money for?
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
Okay, I’ll answer that again. Fourth time maybe. No, sorry. So, my apologies. I can go back and refer to the recording if you have already answered. It, please, because I’ve answered almost four times now.
Nishant — Analyst
Yeah, sorry about that. I joined late, so it’s on me. So I threw the transcript tomorrow. That’s okay. Yeah, I guess that’s all I had. And have we had any other wins like the South African project or the African project which you mentioned last time, which I’m assuming might be nice.
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
Here. But yeah, well the focus was ppa. So I think activating and getting the revenue started on that is where we bought one. Apart from that I just said that there was a bill pay order that we got this quarter and then majorly there are some wins. But it is not the number that I can put it here. No fair 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 and as well as the signups and the new, you know, collaborations, all that.
We have put up there in PPAAS. Segment there are aggregators that we signed there, federation that we signed. Then the order book, around 50 plus. Banks in the offline QR space. Yeah, that’s major.
Nishant — Analyst
Okay, and how about credit card on upi? Is that picking up now?
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
I mean it’s taking its time. It’s. It’s not actually the number that can significantly impact.
Nishant — Analyst
Okay, and would I be okay to say that quarter on quarter from June 25 to September 25 we can look at 25 to 30% PAT growth. Would that be a reasonable number? Maurice, what is the from June to September?
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
September. So last 3/4 September, December 24 to March 25 we had a 20 growth. In right now it will be only incremental. Yeah. So more than 20, right? You are saying this space of growth will grow, right? Yeah. Yeah. Okay. So that means I’m putting a number. Of 25 to 30. So yeah. Okay. Number. So yeah, you’re not giving a number. So that’s why I’m just saying am I on the right track? But okay, fine.
Nishant — Analyst
Yeah, I think that’s all. Thank you. Thanks for taking my questions.
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
Yeah, thank you.
operator
As there are no further questions from the participants, I now hand the conference over to Mr. Harshil Ghanshani for closing comments. Thank you. And over to you, sir.
Deepak Chand Thakur — Co-founder and Chairman and Managing Director
Yes, thank you. Thank you everyone for joining the conference call of NPSC Limited. If you have any queries, you can write us at info@careeradvisors.com Once again, thank you everyone for joining the conference call. Thanks. Thanks everyone.
operator
Thank you. On behalf of Kirin Advisors. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.
operator
SA.