Network People Services Technologies Limited (NSE: NPST) Q3 2025 Earnings Call dated Feb. 14, 2025
Corporate Participants:
Deepak Chand Thakur — Co-founder and CMD
Savita Vashist — Co-founder and Executive Director
Ashish Aggarwal — Co-founder and Jt. MD
Analysts:
Vaishnavi Ambokar — Analyst
Akshay — Analyst
Venkatesh — Analyst
Keshav — Analyst
Priya Jain — Analyst
Rajesh Jain — Analyst
Gaurav Didwania — Analyst
Hardik Gandhi — Analyst
Saurabh — Analyst
Parikshit Kabra — Analyst
Ashish Soni — Analyst
Prateek Chaudhary — Analyst
Subhash — Analyst
Yash — Analyst
Mahesh Sheth — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Network People Services Technologies Limited Q3FY25 earnings conference call hosted by Kirin Advisors Private Limited. As a reminder, all participant line will be in listen only mode and there will be an opportunity for you to ask question after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchtone phone. Please note that this conference is being recorded.
I now hand the conference over to Ms. Vaishnavi Amborkar from Kirin Advisors Private Limited. Thank you. And over to you, ma’am.
Vaishnavi Ambokar — Analyst
Thank you, Sejan. On behalf of Kirin Advisor, I would like to extend a warm welcome to everyone attending the NPST Limited Q3FY25 conference call. We are pleased to have with us NPST’s senior management team. Mr. Deepak Chand Thakur, Chairman and Managing Director. Mr. Ashish Agarwal, Joint Managing Director and Ms. Savita Vashisht, Executive Director. This call is scheduled to run approximately 40 to 50 minutes. To ensure that everyone has a chance to engage, we kindly request that each participant limit their questions to two. This allows the management team to address as many queries as possible within the given time. If we are unable to answer any questions during the call, please don’t hesitate to reach out us at infoecareenadvisors.com we will gladly coordinate with the management team to arrange the discussion. We greatly appreciate your understanding cooperation and we look forward for a productive and engaging session with that. Now I will hand over the call to Mr. Deepak Chand Thakur. Over to you sir.
Deepak Chand Thakur — Co-founder and CMD
Hey. Thanks Vaishnavi. And thanks everyone for joining the quarterly call so early today. Good morning everyone. Like always say, this is the only time when we connect to all of you and your questions help us understand the market view well. These inputs have helped us in rectifying directions and build a stronger growth story for the organization. If you ask us how has been our last quarter, let me tell you that we have realized that we have a break in our car so that we can drive faster and control better.
Thanks to all my advisors. I know you guys have a lot of questions around numbers today, but I’m more confident than ever about the organization’s growth plan. Let me tell you that our numbers have dipped but our overall performance in the key parameters that we look at has never gone down. In fact, our business risk has been mitigated last quarter and the revenue model has strengthened. We have been honest, transparent and believe in good governance.
Hence we informed our shareholders right at the end of Q2 that we expect business impact in short term. So we are firm with the point that the impact is temporary and we’ll be back soon with similar growth numbers that you have seen quarter on quarter. Some of the critical points that I want to mention and I want to address up front, you know, obviously there are a lot of questions around what has caused the depth.
So let me tell you that we have two business verticals. The technology service provider and the payment platform. As a service in second vertical, we provide payment platform to banks and aggregators. A primary source was a bank from the cooperative segment. It was during the end of Q2 when the bank policies changed and the acquiring policy was to be relooked. For the cooperative banks. This took some time where we got space to really look at the future challenges. We can come across. This has caused the dip in payment platform vertical having an overall impact in the pnl. We did not anticipate it will impact the entire quarter, but it did. We were better off since the policy changes. We are now better off and we have completed the entire policy changes and the cooperative banks can restart the acquiring business. That’s the recent update. The new onboarding which was completely halted has now already begun. In the last nine quarters we were swamped with customer demands due to the nature of the digital payment industry. We would never anticipate such challenge as a future risk mitigation and solution to this challenge. Last quarter we completely fast tracked our technical journey to add more banks in the ecosystem which will take away which will de risk these challenges. As well as the new product addition which were majorly in the pilot stage, we were able to push that completely into production. Beyond the existing banks from cooperative segment we now have private sector and a payments bank. Apart from these three, we have two more banks lined up from the small finance bank category. So our entire offering is complete. We soon intend to commit the best success rate in transaction in the entire industry thanks to the focus we had on the technical upgrade last quarter. In fact all three banks have started onboarding customers already. What we essentially have done is de risked and diversified the business model in payment platform to average the future challenge and deliver better results. But that’s not where we have stopped. We were agile and quick enough to bring all the future roadmaps early to de risk and diversify the entire payment segment. Yes, I mean the entire payment segment. We have used this space to build the revenue engine from other segments which was otherwise to be built a year later. We have added rectech as vertical and built an AI ML engine for predicting fraud as well as bringing stronger compliance in the entire banking ecosystem. We want to contribute to the regulators vision of stronger and better digital payment ecosystem. Since we are the only one working between banks and payment aggregator we have massive understanding of this requirement and we have built our own IP in rectech we are confident being the first mover as well as industry expert in domain as well. In fact we recently won the award for this product in Bharat Fintech Summit. Apart from rectech we launched credit line for UPI which is an opportunity for banks to encash on UPI network. We went live with one bank and we are in the midst of multiple tenders right now we are building the credit line platform for NBSCS BBPS which we launched last quarter. We are soon to monetize it here on. In fact this quarter itself. Our bet on offline payment by becoming partner to bank on building QR and Soundbox solution has paid well. We have not only received incremental orders, we have added more accounts in this space. That’s majorly our story for last quarter. You can say that we have been like fishermen who couldn’t go to sea due to storm. But we sat and fixed our net during this time to get a better cash tomorrow. That has been major efforts for last quarter. Let me take you through numbers. Our revenue for The Q quarter 3 has gone to 23.23 crore. I know that’s not what you would like as against 31.39 in Q3 last year and 68.97 which was a marquee quarter for us in, you know, last quarter while the revenue got dipped. But EBITDA and PAT has remained strong and positive that we have ensured. Our EBITDA is 35.33% as 8.21 crore and PAT is about 5.14 crore which is still maintaining 22% PAT ratio. We have still managed a healthy P and l and our nine months consolidated numbers are upward with about 78% growth in revenue, 96% in EBITDA and 133% growth in PAT. Our guidance for this year seems getting impacted due to Q3 results. However, we are trying our best to achieve better and stay put on the numbers. But like I said, we believe in being transparent and we feel the guidance may have an impact. But this can be ascertained only by the end of quarter four. So that has been the major point is about the last quarter rest. I think it will be more of a Q and A that you know we can better address your queries. Thank you for being with us during this time and believe your support will help build a strong and sustainable growth story for the organization which we always look forward to. Yeah, Vaishnavi, you can take up the questions please.
Questions and Answers:
Operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press STAR and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. 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 is from the line of Akshay from CD Integrated Services Ltd. Please go ahead.
Akshay
Hello. Am I audible?
Operator
Yes, sir.
Deepak Chand Thakur
Yeah.
Akshay
Yeah, I had, I had the question regarding. Recently we had the news that Razorpay and Caspi stop direct integration with the third party service providers like Just Pay. And so can you put some light on that and what is the impact of this type of development in our types of business?
Deepak Chand Thakur
For the, for the captive business, Razorpay and Cash Free has the ability to build their own payment switch so they don’t need a third party. Ideally everyone else has a dependency on third party who build their technology platform. So Just Pay has been that technology partner and I think they have invested and reinforced building the technology themselves internally. And now they don’t need, you know, Just Pay. So they have their own internal team. Their spend accordingly will increase.
So that’s, that’s majorly how this structure is between Just Pay and these guys.
Akshay
Okay, so so means we don’t have this type of partnership and our types of business don’t impact it by such developments. Is this right?
Deepak Chand Thakur
No, we don’t have partnership with large players. We don’t work in this model. We work majorly for the acquiring banks and then we also work with payment aggregators who need our platform. The ability to have their own switch and behave like a bank rests with these top four to five payment aggregators.
Akshay
Okay, and my second question is that in the last phone call and the online investor meet, you were extremely confident about almost achieving the 2 revenue with 75 to 100% growth guidance. However, the actual sales has been very very poor this quarter. You already, you have given reason for the same as well. But given this significant miss, what is your revised guidance for the next quarter and why should investor trust now your projections going forward?
Deepak Chand Thakur
See, to be very honest, this is a temporary impact. And like the moment we anticipated, we informed that there will be a short term impact. However, we didn’t anticipate that it will last this longer. And that is the reason why my entire. Well, about the trust of the investor trust, I feel that this is the first quarter where you have seen the impact and we did not sit only on one single point. And then we realized what more has to be done and that has been relentless effort. Efforts all these days in last three to four months. So guidance, when it comes to guidance, I feel that we are still focused on that number so that it doesn’t change. But to be honest, it will be only at the end of quarter four where we will get the entire result because now we have multiple banks with us.
Akshay
Okay, so. So are you confident of achieving.
Operator
Sorry to interrupt sir. I would recommend.
Deepak Chand Thakur
I’ll just, I, I’ll continue answer. Yeah please.
Akshay
Yeah, yeah, yeah. I just said the last question that are you confident of means you stated your minimum guidance is in the lower end of your guidance is 75%. So are you confident of achieving that in the quarter?
Deepak Chand Thakur
I, I. Let me be honest. I personally feel that, that it, it is difficult to achieve 75% but that we are still trying. So my confidence is not 100, little lower than that. But that is what we are still working on.
Akshay
Oh, okay. Thank you.
Vaishnavi Ambokar
Yeah,
Operator
Thank you. The next question is from the line of Venkatesh from JM Financial. Please go ahead.
Venkatesh
Yeah, a couple of questions from my side now. Firstly, the results in this quarter were not good. You were also aware you are hosting a call at 9 in the morning where 15 minutes the market is going to open. Wouldn’t it have been advisable that you hosted the call either yesterday evening? Maybe the results came late. It would have been advisable to host the call at maybe 8:30 or something so that people got a fair idea of what exactly was happening.
The second aspect, other way to inform investors would have been that you also put out a presentation yesterday. The presentation talks about just numbers. It doesn’t give you any idea whether this was a 1/2 problem or this problem could have been can has got you worked on it and you have resolved some of these issues. This could have been mentioned in the presentation. Also why is it that you know you’ve not put in that thought of actually mentioning this in your presentation?
Deepak Chand Thakur
Honestly Venkatesh, this is the first time we take this. We are not even aware that this would help in the presentation. But we’ll take this up for the next time every quarter to put such kind of pointers also in it. Our intention if you look, look at the presentation, we have completely changed the presentation. If you see all the presentations for last all the quarters.
If you could see we have changed the presentation and we have added few slides in such a way that people can understand that what was there earlier and what we have right now. So what is the change which has happened? However, I completely understand the notes would have definitely helped. So we’ll take this up and if you want maybe post this call we can put this note also and I believe this transcript will anyways be available for everyone. So. Yeah, point taken. Second,
Venkatesh
Just a solution. Either you mention it in the presentation or you put out a press release. What exactly? You know, the qualitative aspects which do not come through in the presentation. Some data point would be very useful, especially before. If for example the results are poor or results are extremely good, it is good to give an explanation why that has happened in your press release or in the presentation.
Deepak Chand Thakur
Honestly Venkatesh, never in earlier calls we have got this input when the results were good. It is only today when we are getting these inputs and like I said this will be added and we can take it further. There is no harm about it because we have and we knew that there should be more visibility about this to our investors. And that’s the reason why you see the. The presentation itself has changed to ensure that all these points are available. If you need more notes on it we will definitely put it.
But the attempt and the. And the effort has gone into it. Second, about hosting this call early at 9am I think we took advice and accordingly we have hosted. However, if it was to be even earlier than this then I think we have. We have actually taken the advice and gone ahead with this. So there can be differences in advice. But I don’t think you also know that we have ensured that this is as early as possible so that you know, people are more aware and they can actually take decisions.
But anyway, point taken. We’ll do. We’ll see the next time.
Venkatesh
Yeah, just just one or two questions about the business now. See nine months your revenues have grown 78%. So as of now you are actually tracking ahead of your 75 to lower end of your 75 to 100 growth guidance. Okay. At least on the lower end. Now you said you had a problem with one cooperative bank which has got resolved now. So we are maybe in February. And you also mentioned in your opening speech that we will go back to the original growth numbers quarter on quarter and yoy kind of growth numbers.
So why wouldn’t you? I mean. But you are still saying 75% looks slightly tough. So is there like you know 75 looks slightly tough but you can at least get to 50% kind of growth. Yoyo some. Some kind of a. What is the minimum growth you can do? I mean you can give a conservative number but is it something which you can share?
Deepak Chand Thakur
See there’s a spillover to this quarter. That’s the reason why I said otherwise. We would have definitely crossed 75. There is no doubt about it. And at the same time, the revenue, the, the. Revenue engines have multiplied so we are going to get a full blown numbers here onwards. In fact more than what we were looking at earlier. But if you. But. But then it gets balanced out. It gets averaged for the entire quarter. And that is the reason why I. I said that by end of quarter we’ll get the right numbers. However it I. And at the same time if I give you a number right now, push it to you, that will be wrong on my behalf if at all. I don’t have the visibility of the closure of the quarter. So to be very honest, yes, the numbers will be definitely be better and much much better than your Q3. However if you ask me to benchmark it with 75 to 100% odd that is where I am saying that we need more clarity to actually come out with those numbers. But there is no doubt about it that we will do good. We’ll do Definitely better than Q3. Much higher than that.
Operator
Thank you. The next question is from the line of Kesha from Navesha. Please go ahead.
Keshav
Yeah, thanks for the opportunity. So as I can see there has been the employee benefit expense. So does it feel like we have fired them or is it like they are left the company?
Deepak Chand Thakur
No. So the entire structure of the organizations remain as is. We are fundamentally very strong in terms of what we are building and what we are investing. So there is no change at all. The increase in cost was in Q3 majorly because of ESOPs and because of certain variable payments. So all taken together it has come down to this number Q4 and that’s not because it has anyone has been fired or there has been any challenge there.
In fact we are hiring more and our positions are still open and right now there is about 50% more hiring. I mean we are at 300 plus people organization and we have 150 open positions in the organization.
Keshav
Got it. Thanks. That answers my question.
Deepak Chand Thakur
Yeah,
Operator
Thank you. The next question is from the line of Priya Jain from Green Capital. Please go ahead.
Priya Jain
Hello. Good morning sir. So my question is very far, very far from your quarter results. So my question is how is NPST integrating AI into its service to drive innovation and more customer friendly application for interface.
Deepak Chand Thakur
So for about one and a half years now, from the time we started the payment platform, we are always looking forward to. To what more problem we can solve in the industry. We have lot of visibility around banks functions compliances and at the same time the payment aggregator gateways and merchants functions and their compliances. So all taken together it is very, very difficult to process billions of transactions and bring out the meaningful information to manage compliances and predict frauds. So we have fraud engines in the market which is, you know, reactive in the sense it can tell you how fraud has happened but it cannot tell you the possibility of fraud in it. It cannot tell you that your compliance rate is getting impacted. For that you need a strong machine learning system. You, you need AI to build those models. And we have been able to train our engine with about 644 million data transaction data. And that is what I was talking about rectech where we got awarded. So that’s how we are integrating AI in the system and wherever we have payment platform this will be one of the core deliverable for the banks and the aggregators and even large merchants. So that’s the core focus right now. And then learning from this we’ll definitely be looking at more areas around the business impact the business growth and you know, many other areas.
Priya Jain
Okay, fair enough. So my next question is with budget allocation to our digitalization, how big opportunity do you foresee for the fintech industry in general and NT50 in particular?
Deepak Chand Thakur
So like I said, rectech is extremely big. The bigger the transition volume in the country, bigger is the risk associated with the digital payment. Now this realization and this quality of information we have very clearly right now and all taken together we have, we, we believe that the budget approves of the entire fintech and payment industries growth path. And at the same time miteis focus on building the rural India and how the rural penetration has to be looked up.
That is clearly called out. Nabad is more powerful than ever to bridge the gaps. The cooperative segments are now more empowered with better and stronger policies. So all of this will pave the way for our growth story.
Priya Jain
So I have one more follow up question on this. How many banks are in pipeline and how many will you add in next quarter?
Deepak Chand Thakur
So we were at 12 banks last financial year. We are almost done. At 18 to 20 odd banks right now. And we have. And when it comes to payment platform we were just one bank and now we have three banks and two are in pipeline this quarter itself. So that’s the number.
Keshav
Good to hear sir. Thank you. And all the best.
Operator
Thank you. The next question is from the line of Rajesh Jain from RK Capital. Please go ahead.
Rajesh Jain
Hi, good morning. I understand that the guidance will be impacted this year. What is likely to be on growth rates going forward for FY26 and FY27 based on whatever eligibility you have now what is the most conservative number that you can give for the next two years?
Deepak Chand Thakur
See to be honest, the numbers for next year we have never given. We have only given numbers for this financial year. We want to account whatever happened in Q3 and how we are closing Q4 and then give the number for the next financial year. We, our aspiration, our wish list is to maintain whatever we. We have achieved, whatever we intend to do around 75 odd percent. But the final numbers I would say that let us reserve it for the Q4 call.
Rajesh Jain
Okay, but. But on a high base of the last few years you are still maintaining your aspiration at 75%. Yes. There’s not an official guidance. What you got a. You think it is achievable if it can things go well over the next few years?
Deepak Chand Thakur
Yes, because there. There are a lot of new segments which we were able to tap last quarter due to you know the time and space we got. And all these segments will be definitely be monetized in next year. However, the number calculation for those monetization will happen only during the process. And that’s the reason why for me if I have to give guidance, I can give guidance on payment platform and I can give you guidance on the.
The bill aggregation. But when it comes to other segments, rectech credit line, you know, in fact offline payment is also picked up. So if I have to give guidance for two more segments to be added that will be difficult to account. That’s why I said my. Our wish list will still remain same but it is only at the end of quarter where we can actually see the monetization impact for the other segments.
Rajesh Jain
Okay, and what are the opportunities in the rectech space? Can you explain a little bit in detail? And who are your global.
Deepak Chand Thakur
Okay, so the global rectech market is $37 billion. And the payment alone if we look at is between 2 to 5 billion dollars in India. The product that we have built, we intend to. So we are the first mover in that and it doesn’t exist. I don’t want to detail out more the call due to competitive information we are readying up for massive industry launch for this particular product. So competition for this product does not exist because this is, this is built on the. The huge data points that we had already and anyone claiming it has to go through 644 million transaction record to arrive where we are. So. So yeah, I can give you a market size but monetization will be also on SaaS based model. Going forward, the more you utilize the platform accordingly you pay for it. So this will be more on SaaS based model. That is what I can say. Yeah, that’s. That’s about it.
Rajesh Jain
Okay. And last question is Pace Print or Sprintax, are they in the same business and are they a competition for you?
Deepak Chand Thakur
Face Print is my customer. They can consume services from me.
Rajesh Jain
Okay. Okay.
Deepak Chand Thakur
In fact they are my customer.
Rajesh Jain
Okay, understood. Thank you.
Operator
Thank you. The next question is from the line of Gaurav Dadwania from Quote Invest Quote Advisors. Please go ahead.
Gaurav Didwania
Thanks Deepak for taking a call. Hi, Tell me. Hi. So my question is can you give us exactly during what time were the revenues affected and starting what time has the business been back to normal?
Deepak Chand Thakur
Somewhere around. Ashish, from the billing perspective, can you.
Savita Vashist
I think somewhere about in the month of August, if I’m not wrong.
Deepak Chand Thakur
End. Almost end of. I think somewhere billing got impacted. Somewhere end of August. That means would have been somewhere in September early. And this has gone to almost about, you know, January 3rd, fourth week. Yeah, January 3rd week.
Ashish Aggarwal
So we can expect about two months of full revenue in March quarter, for example.
Deepak Chand Thakur
Yeah, that, that will come across.
Gaurav Didwania
Got it. Thank you. And the second question is you always quoted the GTV numbers. You know,
Deepak Chand Thakur
This time it will be difficult. It’s almost 90% drop. Almost so difficult to go now.
Gaurav Didwania
Okay, that’s it from my side. Thank you.
Deepak Chand Thakur
Yeah,
Operator
Thank you. The next question is from the line of Hardik Gandhi from HPMG shares and securities. Please Private limited, please go ahead.
Hardik Gandhi
Hello, Can I am audible?
Deepak Chand Thakur
Yeah, yeah, you’re audible. Tell me.
Hardik Gandhi
Yeah, so good morning sir and thank you for hosting the con call. Just wanted to know two things. First, to understand the kind of business model we have, how much of the revenue is fixed and how much of it is variable and how is the billing system work? Just to understand the dynamics of it.
Deepak Chand Thakur
So in two articles the first vertical works on. So to help you, you know you can pull this from the annual report as well. But I’ll explain right now. But if you can, if you want more detail, it’s there in the last general report. So we have two articles. One is technology service provider. Second is payment platform. The technology service provider vertical works on software license and software as a service model. So when you say variable I would, I don’t know if you consider SAS as variable model but payment per.
I mean paper use model wherein you have revenue coming in from the TSP vertical. That’s, that’s one portion. The other one is license based model wherein some of the large customers they don’t believe in pay per view, they buy the entire license. That’s one in the payment platform. It is entirely. Yeah, sorry,
Hardik Gandhi
The license would be a fixed thing then. Correct,
Deepak Chand Thakur
License is a fixed thing. But then it comes with. Now because this is, this is our product. The manpower provisioning and the, the. The customization change request, everything gets paid per mandate or per man month. So that is where the incremental revenue comes in. So any, any order that we book on the license model we also get paid on the man days and the man month that we invest. So there is a portion of license, fixed license AMC and then there is a portion of this variable income.
The Second one is SaaS based model which is pay per use. When it comes to payment platform as a service, we believe everything in everything should be SaaS based model. So the more you use platform the more is you more is that and accordingly you pay for it.
Hardik Gandhi
Understood? Understood. So what was exactly affected, which model was affected in the last
Deepak Chand Thakur
Payment platform which was almost about 70 to 80% of our revenue share coming in. That is the platform which got last quarter.
Hardik Gandhi
I think so missed the initial detail. But what exactly went wrong there?
Deepak Chand Thakur
So you know, like I said, there was this policy changes in the cooperative segment and our platform was like. With the cooperative bank and that is where until the policy change happened we had to wait and that is where the business got impacted. However, what we have mitigated this is with a cooperative bank, obviously it has gone, it has gone live again. And along with that your private sector bank, payment bank, small finance bank, we went extremely aggressive and were able to add multiple banks in the platform so that we have more customers through these banks to cater to.
Hardik Gandhi
Understood. And the last question from my end. I understand.
Deepak Chand Thakur
Can you ask again? I lost you.
Hardik Gandhi
Yeah. Am I audible now?
Deepak Chand Thakur
Yeah.
Hardik Gandhi
Yeah. So on the future growth, right. I know we are going into a very new product which you think it’s very niche, it’s one of a kind and everything. But on the, on the existing business front are we targeting any non cooperative international banks or something? Because there. I think so. There are still a lot of adoption of UPI and other payment solutions are pending. So just wanted your thoughts on that.
Deepak Chand Thakur
I didn’t get your question because I just mentioned that we have already added private sector and payment banks in the platform
Hardik Gandhi
International front. Because on the international front.
Deepak Chand Thakur
The international front I think. Let me say that again. Whenever there is, you know you have NPCI taking or government taking UPI rupee to global front to those countries that is where the opportunity opens up. Right now the opportunity is majorly around nre, NRO accounts, NRI accounts who can add UPI as, as. As one of the payments platform in their mobile app or you know, they can transact. However, this has to open up further. So I still feel that if you go via UPI there is still a lot of time that you have to invest.
Maybe a year or more. But if you go as a payment expert you will definitely have you know, footprint earlier. So that has been our strategy so far.
Hardik Gandhi
Understood, Understood. Thank you sir. All the best for the future.
Deepak Chand Thakur
Thank you so much.
Operator
Thank you. The next question is from the line of Saurabh from Sahastra Capital. Please go ahead.
Saurabh
Hi, good morning everyone. To ask about the TimePay app. So I reviewed some. I saw the reviews on the Play Store and seeing that users are not very happy with the app. It’s not about means there are problems that there could be problems like the UI is not. It’s buggy or laggy maybe for some devices. But the problem that users are expressing is that their money is getting stuck while making payments. So I would like to know what is happening there.
Deepak Chand Thakur
I, I feel that, I mean every single of those issues have been addressed because. Okay, let me tell you that we did not have larger focus in Timepay and, and every time anyone has asked us about this product we have said that it is slightly futuristic in nature. However, last quarter we took a decision to also take this towards monetization. And that is the reason why you will see a lot of action happening on Timepay now for last four to five months maybe during this time. Since this is the stage wherein we have just gone ahead with, you know, with a renewed pressure on taking this product customer centric, we have come across these challenge.
There is no denial to that. However, now we are, we have product tech business team completely aligned to timepay and they are contributing to complete revamp of the solutions. Second point, when it comes to the money getting stuck or anything like that, there is a very strong compliance from our sponsor bank, RBI npci. Wherein as per the complaint ombudsman complaint, we are supposed to resolve this in specific time. So we do not have any complaint as such, which is pending.
And all of these have been settled really well. So it will, it is a slight bit of journey more, maybe a month more wherein we will be up to the mark as for the industry.
Saurabh
Okay. Okay. Thank you.
Deepak Chand Thakur
Yeah,
Operator
Thank you. The next question is from the line of Parikshit Kabra from PK Day Advisors nlp. Please go ahead.
Parikshit Kabra
Hi Deepak.
Deepak Chand Thakur
Hi Parishit.
Parikshit Kabra
Hi. I just want to first begin by saying that, you know, I appreciate you taking the call this thing. It wouldn’t have been an easy call to pick up today morning. But I appreciate that you have maintained the discipline of doing the investor calls every quarter, even though you don’t technically have to. So your update so far has been very helpful. Deepak, just one thing I wanted to ask is since Jan, 4th quarter, 4th week was when things started returning back to normal in the last couple of weeks,
What kind of return of your existing customers, your old customers, how quickly are they redivering their traffic to you? How quickly are you able to add new customers? How’s that run rate going for you? Are you finding any sense in your old customers?
Deepak Chand Thakur
Yeah, there’s a lot of challenge in reinitiating everything, platform being completely new and then adding more banks to it. So obviously there was an impact and that’s why the scaled up team were. Able to maintain that. So most of the aggregators whom we work with, they are now all aligned with us. And at the same time, the onboarding processes completely begin for all the banks. It’s not that one bank, but all of these banks. When it comes to run rate, it will, in fact, I would say that it is, it will pick up. Able to maintain that. So most of the aggregators whom we work with, they are now all aligned with us. And at the same time, the onboarding processes completely begin for all the banks. It’s not that one bank, but all of these banks. When it comes to run rate, it will, in fact, I would say that it is, it will pick up. I mean it is still picking up. So the numbers will be difficult to share right now. But these are early stages wherein first two, I mean, when I say fourth week of January, almost by then we were completely able to close the pilot and then start the onboarding process. So numbers are still working in the sense it is early stages wherein they will now go through that. Initial numbers. Initial numbers and then they will actually put the entire traffic. So that’s, that’s what I see right now. So Feb and March you will get.
Parikshit Kabra
Got it. And now that you have three sponsor banks and you know, two more in the pipeline, how going ahead, how will you channel your fund your leads towards one bank or the other? How do you, how will you be prioritizing the decision, the new business?
Deepak Chand Thakur
So banks are the decision maker now as per how we have, we have actually looked at the entire structure wherein banks will have all three. Because we have now three banks. Each bank will have to be the decision maker of getting these guys onboarded. So if at all one of the aggregator is onboarded with two of the banks, that is the advantage with us and the advantage for them also because now any, any downtime or any success issue, they will have two banks to support as an alternate system.
And that was the Beauty of Evoke 3.0 which we launched. So we feel that this will also further add to the increased confidence in traffic. So the decisions will come from banks and then depending on how many banks these guys are onboarded, we will get an advantage.
Parikshit Kabra
Got it. So basically every acquirer that you get on board, you will make them available to all the three or four or five banks and the bank can decide if they want to approve or not. Whichever banks approves you will, you will provide the acquirer the ability to use all three of them, four of them, five of them or whatever number that is available through your single API.
Deepak Chand Thakur
Yes, correct.
Parikshit Kabra
Perfect. Last question. The rectech and UPI credit lines, when are you planning on launching them and commercializing them?
Deepak Chand Thakur
Rec tech on payment platform not credit line rectech on payment platform. We have already completed, we are talking to a couple of big four to, you know, to, to launch this solution as one of the best in industry because we know that. That it doesn’t exist. It should be by mid April that we will have a complete full blown product. However, let me tell you that this product we have already deployed as a mandatory feature for all our acquiring banks. So wherever we go as an acquiring bank we ensure that this is deployed. Because this is more of machine learning and AI process it is ultimately building a better IP for the product. So it is already live I would say it is already commissioned in a certain phase right now.
Parikshit Kabra
And UPI credit line
Deepak Chand Thakur
UP credit line we already went live last December for Kendra Bank. Now we are waiting for the upgrades in credit line. There are two more tenders where we are part of. So it’s already there. The product is live as and when we go ahead as and when the industry takes it forward the guidance that we get from NPCI we get it more and more monetized.
Parikshit Kabra
Take rate that you take on the loans that you dispose how what is the revenue model here?
Deepak Chand Thakur
So the first year the revenue model will be purely TSP because the the credit line is yet to be, you know to be to be looked at. So that because there is lending involved in it there will be lot of inputs which will come as and when it goes ahead from banks. So right now it is ETB banks existing customer. So it will be more of a TSP business where we’ll get paid for license. We don’t want to do SaaS model initially because the transactions will be lower and as soon as it moves ahead we have multiple banks who have the credit line in it then the acquiring piece will also start moving.
So I feel that first year 2526 it will add to the TSP revenue and it is later end of or I would say later half of 2526 is when we will be able to see that as payment as a lending platform where we can then start looking at the revenue from the SaaS based model.
Parikshit Kabra
Perfect, perfect. Thanks a lot. Thank you Deepak. Thank you Ashish.
Deepak Chand Thakur
Thanks for the shift. Yeah,
Operator
Thank you. The next question is from the line of Ashish Dhoni from family office. Please go ahead.
Ashish Soni
And regarding this slide 12 I think NFC devices you said it’s 37 billion dollar. So what’s our target? The market we want to target? Because I can see practically PETM and phone pay all over the place. So what are exactly we’re targeting in this?
Deepak Chand Thakur
So PayTM Bharat Pay. The way they have captured the market with these devices now banks also want to cap these devices. Each tender from a PSU bank is as big as 1.52 lakh odd sound boxes and they pay for it. If you compare with PAYTM or Bharat model, we are not in the cash burn business. In fact we can be your technology service provider and we can support your sound box QR code the entire recon, the entire platform on a subscription based model. That is our pitch in the industry. So. So yeah so we started with about thousand odd sound boxes earlier. We have gone to as much as 50, 50,000 sound boxes by the end of this year. So we see huge jump right now happening in this particular segment especially after PIDS fund coming in where the government is supporting for the expansion of the payment infrastructure development in the country now that in in fact subsidizes the cost for banks. So out of 30 I would say that you know, for us even if it is about you know half a million to a million sound box being serviced every month that will add tremendously good revenue for us. So the target is to have at least a million sound boxes being managed through our platform.
Ashish Soni
Okay. And about international market. So can you give floor like what’s the update on that that last time I think you were doing some sort of mapping. If I recollect based on the last call maybe a quarter earlier. So where are we on that?
Deepak Chand Thakur
So this quarter end I think we’ll have an office in Dubai. So we have already applied for it. Middle east is the market where we are actually penetrating first one of the deal for Middle east we have already closed. I think I. I guess we might have. We might be monetizing it and the deal is more from the being the payment expert, the software business provider. So yeah Middle east will be Dubai will we will have our first office by March mid maybe current
Ashish Soni
And what services are. I didn’t understand that this clearly.
Deepak Chand Thakur
So these banks usually don’t have the in the interoperable ability or they don’t have the acquiring network. They are entirely dependent on Visa Master to bring their knowledge around acquiring. Whereas Middle east market follows a lot of they really look at RBI whatever innovation it does and then they adopt. This is the story of Middle east and African market. So we being a technology partner to Indian banks we are looked at someone who can actually provide the software solutions for them.
So a platform wherein they can manage their customers merchants a platform where they can manage the reconciliation, they can manage the overall interoperable payments. So that is where we are not working with them.
Ashish Soni
Okay, thanks. Just one suggestion. If you can elaborate for next year financial planning this slide 12 maybe add more depth to it that will be helpful for investors. That’s a suggestion for myself.
Deepak Chand Thakur
What is light? Well, sorry, slide 12. Oh sorry. Okay,
Ashish Soni
So that for our reference in terms of what we are targeting that will help in terms of what is the strategy of the company maybe next, next financial year forward.
Deepak Chand Thakur
See like I said, I think indirectly answered this. But let me reiterate the fact that you know, last quarter has been, has been really a lot of pressure in ensuring that we fail through maintain profitability, maintain positive EBITDA and at the same time bring the agility that we have plus diversify de risk whatever we can. So the result of it is next year the revenue will not only be from payment platform alone but monetizing the other segments also.
So our bet on the revenue will still be our online payments which we have maintained the TSP business offline payment will start adding revenue. Bill aggregation will also start adding revenue. I see these coming really well for the next year when it, when the, the visibility around the monetization I have and beyond that the new lines of business around credit line and rectech, they, they are, I think only by next year we will come to know as in the process what kind of monetization we will be able to do.
So that’s, that’s how we intend to strategize the growth. My only suggestion was if you can add like how much percentage you’re targeting your revenue in strategy in this slide for the next right now to be, right now to be, to be open the existing business portfolio of the organization will be almost about, will contribute about, you know, 85 to 90% odd. And the new portfolio that we are building should add at least 10, 15% in the PNL.
Ashish Soni
Thanks. And all the rest.
Operator
Thank you. The next question is from the line of Pratik Chaudhary from Samatya Capital. Please go ahead.
Prateek Chaudhary
Good morning sir.
Deepak Chand Thakur
Good morning Pratik.
Prateek Chaudhary
Sir, this, you know, my question first is on the payment platform because that’s where we have had most of the churn that has happened. So in the time that.
Deepak Chand Thakur
This disruption was taking place at the cooperative bank. Our clients might have moved to, you know, other, other platforms who were giving similar service. So how, again, and this was one of the questions that was asked previously also. So how, how easy would it be for us to get back those clients? And second, would there be any changes as far as the take rate is concerned? Because the now we are starting with new relationships with these newer banks who are our sponsor banks in this plain payment platform.
Prateek Chaudhary
So would this mean that our take rate would undergo any significant change going forward?
Deepak Chand Thakur
Yeah, so you rightly pointed out earlier. Also, like I said, I think the first part of your question, we, I mean, because these guys got impacted, they obviously moved out to other banks. But the industry needs multiple banks to manage such huge volume of business.Secondly, what is the value added services and what is the problem that you are solving? Which bank is able to solve? The problem really matters. And that’s the, that’s the hook when these guys come back.
And we took almost a month to bring back these customers. So we have already gone through that journey. So I would say that now it’s about the onboarding which is going on. They are already, you know, in a phase wherein they are putting in numbers, they’re committing numbers and then the transition volume.
So all that is going on right now. So that journey we have gone through, the second one is the take rate. I would say that the take rate will change because, and, and it will balance out because now you don’t, you don’t have one bank, you have multiple banks. So each bank has its own policy, how they want to monetize. So the moment they go ahead, the moment they, you know, they, they go in the structure, the kind of engagement that we have, we personally feel that the volume will balance out for whatever changes the take rate will go through.
So whatever change it is, I, I believe that it, it will not have an impact on the revenue if that is what you mean, because the numbers will, you know, the numbers will actually balance out based on the volume and the take rate taken together.
Prateek Chaudhary
Great, great. Sir, in this Regtech platform that we are building on top of our payment platform, what additional percentage. Percentage basis points would we be able to earn? You know basis this service offering,
Deepak Chand Thakur
Like I said it is only in the April when we go launch we will be able to commit the monetization. So it will not be basis points for sure that I can tell you. But it will be paper use. That means it can be based on transaction, it can be based on the number of merchants, it can be based on the number of the compliance reports. So all taken together it is. It is a massive data point that you will be mining. So. So let us reserve it for the Q4 end because we are yet to get the number.
That’s why I’m not committing the restic number right now.
Prateek Chaudhary
Right. And this final question.
Operator
I would request you to rejoin the queue for your follow up question. Thank you. The next question is from the line of subhash from Value Investments. Please go ahead.
Subhash
Hi sir. Thank you for taking the call so early. To clarify for the next. You mentioned about the rec and you also said you are all also in talks with couple of big four accounting contracts. What was that about? Like why are you in talks with big four?
Deepak Chand Thakur
So the, the, the. The. See when you say Rectech you are actually bringing compliances and you’re bringing auto audit process. So you’re actually creating that audit in the system which otherwise is only on demand or periodic in nature. What we intend to do is that make it real time right then and there itself. So there are certain advices we are taking that we are talking to you know these guys, we are also adding their inputs and that’s why, that’s, that’s the point here.
Subhash
So only to take that advice,
Deepak Chand Thakur
Take the advice and then how do we partner with them? So
Subhash
Got it.
Deepak Chand Thakur
Early stage. So you also mentioned that along with your. And when you go to acquire a bank you. You sen that this rectech will also be part of your service, right?
Ashish Aggarwal
Yes.
Subhash
So the batch then there are two different things. Would it reduce the work for the accounting firms in their audit work?
Deepak Chand Thakur
So when it comes to financial audit, that’s not what I’m touching. I’m talking about the, the compliance audit that you, you should be doing for the transactions and the merchants in your system. You should be looking at the re underwriting process. You should be looking at the process that you have implied in the acquiring system. So all of that has to be inbuilt which otherwise is more of a manual job or more of just a website. It being claimed that, you know, this is where it can work. So that’s the layer that we are deploying. Hence we are making it mandatory to push it on the acquiring system wherever we go forward with Second, that’s to ensure that our banks are much stronger and they have very strong value creation in the industry wherever whichever bank we work with. Second, monetizing it further is where, that’s the second part, the first part, the second part is monetizing it where we feel that working with these big four makes lot of value creation.
Subhash
Got. Thank you so much for the clarity. My last question is about the numbers again. So I know that you clearly said the 77% growth margin is achievable, but you’re not fully confident. But when I look at the revenue that you achieved in nine months, it’s 146 crores before the remaining would be like 75 crores. So in the last quarter you, you did 68 crores. So assuming that this quarter was the only quarter which got affected due to the change in policies in the cooperative banks, would you not be able to do at least the same revenue in Q4?
Deepak Chand Thakur
So I was very honest even for this quarter. I said that there is a spillover which has happened in this quarter for the month of January. However, the full blown income is now going on from here onwards. That entire calculation will happen later. That’s why I don’t want to commit a number where you know. But yeah, we, that is, that is definitely in our sight. What, what you’re saying.
Subhash
Yeah, yeah. Thank you so much for all the cl. I’ll fall back in the queue. I just have one more question but I’ll just leave it for a bit.
Deepak Chand Thakur
Okay. Okay,
Operator
Thank you. The next question is from the line of Yash from Stallion Assets. Please go ahead.
Yash
Hi. Thank you for the opportunity. I’m sorry I actually missed the additional commentary in the call. You know I joined late so apologies if my question is repeated. So I just want to understand what was the major decline in your revenue on Q? On Q basis like did you lose a customer or just if you can just sort of brief me quickly like what happened. And my second question is that you know your FY23 guidance of 70. FY25 guidance.
I understand that you, you’ll revise in Q4 but will you be able to possibly give FY26 as well? Will you have the visibility of Revenue 526? Those are my two questions. Thank you.
Deepak Chand Thakur
So first one, I’ll just, I’ll just share what I exactly have shared with everyone here right now. So we have two business vertical. One is technology service provider, second is payment platform. Okay. In the second vertical, we are providing the platform to banks and aggregators. Now, our primary source was a bank from the co producers. Segment. Now it was during end of Q2 when the bank policies change and the acquiring policy was to be relooked for cooperative banks. Now this is where we, when we, when we got to know this, we put up this message on NAC that there will be a short term impact on our revenue. Now this is temporary in nature. However, we didn’t know how long this will take and it has taken the entire quarter. In fact now this has caused the dip in the payment platform vertical. We did not anticipate this earlier but we are better off now because the policy changes has been completed. The the acquiring business has started. So yeah, that’s the major reason. Secondly, like I, I mean I don’t know if I’m supposed to touch the FY25 guiding question once again because I think I’m answering this question. I have already answered three times for FY26. Also I think there was one question which I clearly mentioned that we have a lot of visibility around the payment platform, around the new line of business that we have got through offline business which is coins platform and then monetization of bill aggregation which was launched in Q3. So these three will contribute well and the credit line business. So financial year 25 it was entirely payment platform. But in FY26 we have three more verticals all taken together. We have maintained the wish list for the similar growth strategy. However, I would still reserve my answer for Q4 end done.
Yash
So the cooperative bank that you’re talking about, so now they are not a part of our customer list.
Deepak Chand Thakur
They are. They are.
Yash
Okay, okay. Okay. Got it. Thank you. Thank you.
Operator
Thank you. The last question is from the line of Mahesh Sheth who is an individual investor. Please go ahead.
Mahesh Sheth
Yeah, good morning. Is that how is the planning for adding value added services progressing?
Deepak Chand Thakur
So very interesting. Good question. So when we say value added services as and when we go ahead we come to know what are more problems in the ecosystem which can be solved by bringing the value added services. So auto reconciliation was one of the problem statement which we have solved in Evo 3.0.
And let me tell you that we have been able to add revenue through this value added services in two new contracts that we got between Q3, Q4. So as and when we go ahead we will definitely find more options around it like dispute resolution. The dispute resolution in um. UPI was entirely manual in nature. Now we were one of the first one to step into it because our aspiration around building a strong merchant ecosystem for banks is very high. So we built the merchant online dispute resolution as a POC for with NPCI somewhere in you know 23 GSS FY20 somewhere over September 2023 now that we have been able to monetize here because now the volume of business has increased and the dependency on online dispute resolution is higher. So that is also we were able to monetize. So onboarding process is something which clearly depends if at all bank wants that as a separate piece that is also sellable. So that is how we look at the monetization of valuable services.
Mahesh Sheth
Okay, got it. That’s a great impact. And so the last question is like core banking like hdfc, ICI etc. So now on core banking UPI part how are you? How are we going? Right.
Deepak Chand Thakur
So wherever there is a demand for secondary switch we go for it. Now we are also selling only acquiring only switch as well. I mean majorly the, the the requirement will boost in the cooperative segment because they will now be coming and acquiring. So wherever there is an acquiring switch requirement they all are issuer in nature. Out of 64070 odd banks I don’t have the exact number. Let’s say on a higher side 80 odd banks have the acquiring switch as well.
So rest all 550 plus banks they are all in issuer stack alone of which all those banks who wants to add the UPI acquiring stack as well we get that as an opportunity. So that is one. Secondly wherever there are large bank and they see the volume increasing they feel that it can be balanced by bringing more switch in place. That opens an opportunity for us. So these are some of the changes in the industry happening and we are my sales team is actually able to create a better funnel than what we had last year.
Mahesh Sheth
Okay. Okay, got it. That’s it from my side. Thank you.
Deepak Chand Thakur
Yeah.
Operator
Thank you ladies and gentlemen. That was the last question for today. I now hand the conference over to Ms. Vaishnavi Amboorkar from Kirin Advisors. Type Weight Limited for closing comments.
Vaishnavi Ambokar
Thank you everyone for joining the conference call of NPSD Limited. If you have any queries you can write us@infojkadvisors.com. And once more, thank you. Thank you, management. Thank you, participant. And thank you, everyone.
Deepak Chand Thakur
Thanks, Vishnu. Thanks, everyone.
Vaishnavi Ambokar
Thank you, sir.
Operator
On behalf of Kiran Advisors Private Limited, that concludes this conference. Thank you for joining us. And you may now disconnect your lines.