NPST profit rises 19.64% as faster costs squeeze operating margin
Revenue growth remained strong sequentially, but the 23.60% operating margin fell 0.92 percentage points and stayed below the sector median.
Filed 12 Nov 2026, 15:42 IST · after market close · Network People Services Technologies Ltd (NPST)
Key takeaways
- Consolidated net profit rose 19.64% quarter on quarter to Rs 13.22 cr, helped by a 1.78 percentage-point fall in the tax rate.
- Revenue grew 19.94% sequentially, but expenses grew faster at 21.39%, narrowing operating margin by 0.92 percentage points.
- Other income contributed 30.76% of pre-tax profit, making reported earnings partly dependent on non-operating income.
Price around the results
Revenue momentum came with faster expense growth
Consolidated revenue increased 19.94% quarter on quarter in Q2FY27, while expenses rose 21.39%. That cost growth outpaced revenue and reduced operating margin by 0.92 percentage points to 23.60%. Operating profit still grew 15.45% sequentially, but more slowly than revenue.
Lower tax and other income supported reported profit
Net profit increased 19.64% sequentially as the tax rate fell 1.78 percentage points to 21.96%; interest expense also declined 19.05%. Other income accounted for 30.76% of pre-tax profit, so the quarter's earnings were not entirely generated by operations. Depreciation was unchanged from the previous quarter.
Margin remains below the Financial Services peer median
NPST's 23.60% operating margin was 28.06 percentage points below the 51.66% median for 107 Financial Services peers that had reported the quarter. Sequentially, margin declined from 24.52% in Q1FY27, marking the only quarter-over-quarter direction available in the reported trend.
Management outlined new products and expansion plans
Management said NPST began a six-month development and readiness programme for Compliance-in-a-Box in Q2FY27 and plans its commercial launch in 2027. The company said the platform combines RIDP, EFRM, DPDP, HSM and EWS, while management also said it has an initial ambition to reach 100 banks by March 2028. Management said NPST won its first private-sector bank CBDC order, converted a telecom SuperApp opportunity into a confirmed deal and remains on track for a 30% efficiency target from its AI transformation.
Results were filed after market close
The consolidated results were filed on 12 November 2026 at 15:42 IST, after market close. No post-results stock reaction is included yet, so the quarter can be assessed here through its sequential profit growth, margin pressure and earnings contribution from other income.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹68 cr | ₹56 cr | +19.94% |
| Other income | ₹5 cr | ₹5 cr | +5.47% |
| Expenses | ₹52 cr | ₹43 cr | +21.39% |
| Operating profit | ₹16 cr | ₹14 cr | +15.45% |
| Operating margin (%) | 23.60% | 24.52% | — |
| Interest | ₹0 cr | ₹0 cr | -19.05% |
| Depreciation | ₹4 cr | ₹4 cr | +0.00% |
| Profit before tax | ₹17 cr | ₹14 cr | +16.91% |
| Tax | ₹4 cr | ₹3 cr | +8.14% |
| Net profit | ₹13 cr | ₹11 cr | +19.64% |
| EPS (₹) | ₹6.34 | ₹5.26 | +20.53% |
Operating margin of 23.60% compares with a Financial Services sector median of 51.66% across 107 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- Compliance-in-a-Box is planned for commercial launch in 2027.
- NPST has an initial ambition to reach 100 banks by March 2028.
- NPST is on track for a 30% efficiency target from its AI transformation.
Expansion
- NPST initiated a six-month development and readiness programme for Compliance-in-a-Box in Q2 FY27.
New orders
- NPST converted a telecom SuperApp opportunity into a confirmed deal.
New products
- Compliance-in-a-Box is a new RegTech platform combining RIDP, EFRM, DPDP, HSM and EWS.
- NPST added Digital Currency as a new product and won its first CBDC order from a private-sector bank.
New initiatives
- NPST is standardising, automating and governing AI across the organisation.
What to watch
- Whether operating margin holds above 23.60% after the 0.92 percentage-point sequential decline.
- Whether expenses continue to grow faster than revenue after the 21.39% versus 19.94% gap in Q2FY27.
- Progress on the Compliance-in-a-Box launch planned for 2027 and the stated ambition of 100 banks by March 2028.