1) At a Glance
Imagine a fintech so efficient it squeezes72% ROCEout of a ₹148 crore top line — and then imagine the market rewarding that wizardry with a122x P/E. That’s NPST in Q1 FY26: revenue at ₹33.6 crore, PAT ₹7.2 crore, and margins fatter than your neighbour’s mithai box. From UPI switches to CBDC experiments, NPST has gone from “who?” in 2013 to “take my money” in 2025. The only catch? At 43x book value, even Warren Buffett would roll his eyes.
2) Introduction
Welcome to India’s fintech theatre, where the plot twists are written not by Bollywood but by the NPCI, RBI, and every bank CEO tired of creaky IT systems. Into this chaos walks NPST, a fintech born in 2013 that decided to play both theTechnology Service Provider (TSP)andPayment Platform-as-a-Service (PPaaS)card. In English: the company is basically the plumber of the Indian banking sector, making sure UPI pipes don’t leak, CBDC taps don’t explode, and merchant QR codes actually beep when scanned.
Banks love NPST because it saves them from building payment plumbing in-house. Fintechs love NPST because it hands them APIs and says, “Here, play with this toy set and don’t break compliance.” Merchants tolerate NPST because the QR and soundboxes actually work.
Today, the company runs ~700 merchant locations, ~15 banks, 150k+ merchants, 15 billion+ transactions a year, and enough APIs to make a CTO weep. And yet — despite all this — NPST doesn’t pay dividends. Because why share mithai when valuations already taste like jalebi?
3) Business Model (WTF Do They Even Do?)
NPST is like the guy who builds the backstage rigging for a rock concert. You don’t see him, but if he screws up, the entire show collapses.
Two Verticals:
- TSP (Technology Service Provider):Payment switches, UPI rails, IMPS, mobile banking engines, and the famous “Super App” that banks now flash in investor calls.
- PPaaS (Payments Platform-as-a-Service):EvoK 3.0, the cloud-native darling that handles online + offline pay-ins, pay-outs, AutoPay, dispute management, chargebacks, fraud monitoring, and even “CBDC switch” bragging rights.
Products in the wild:
- Qynx:Offline merchant platform with QR codes and soundboxes.
- ODR:Online dispute resolution — because every UPI fight needs a referee.
- Bill Aggregation Switch:NPST now handles your boring BBPS bill payments.
- Super App:A 3-in-1 buffet of banking + lifestyle services.
Translation: If you’ve used UPI, there’s a non-zero chance NPST was somewhere in the plumbing, silently charging rent on each packet of data.
4) Financials Overview
| Metric | Q1 FY26 | Q1 FY25 | Q4 FY25 | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 33.6 | 58.9 | 26.4 | -42.9% | +27.5% |
| EBITDA (₹ Cr) | 9.8 | 20.8 | 8.8 | -53.0% | +10.8% |
| PAT (₹ Cr) | 7.2 | 15.6 | 6.0 | -54.0% | +20.0% |
| EPS (₹) | 3.7 | 8.1 | 3.1 | -54.3% | +19.4% |
Commentary:Q1 YoY numbers look like a car crash (sales halved, profit halved). But QoQ is a cheeky comeback story. Annualised EPS: ₹14.8. At CMP ₹2,302, that’s a 122x multiple — i.e., you need 122 years of NPST’s current earnings to pay for a share. Great-grandkids will inherit this one.
5) Valuation (Fair Value RANGE Only)
Method 1: P/EAnnualised EPS ~₹14.8. Industry band 30–40x. FV: ₹444 – ₹592.
Method 2: EV/EBITDAAnnualised EBITDA ~₹39 Cr. EV/EBITDA band 25–30x. EV ~₹975 – ₹1,170 Cr. Divide by ~1.94 Cr shares → ₹502 – ₹603.
Method 3: DCF LiteAssume 30% CAGR (historic fintech swagger) for 5 years, discount 12%. FV range: ~₹600–₹750.
Educational FV Range:₹450 – ₹750.(This FV range is for educational purposes only and is not investment advice.)
6) What’s Cooking – News, Triggers, Drama
- Big Contracts:Secured BBPS switch orders, ODR rollouts, Super App for Kerala & Karnataka Gramin Bank.
- Subsidiary:Timepay Digital Infotech — NPST’s consumer payments experiment. Will it fly or flop? Jury’s out.
- Alliances:Bank of Maharashtra, SBM, Jupiter, DCB Bank — basically everyone wants NPST’s tech.
- Global Fintech Fest:Launched Instant Credit Line on UPI + Risk Intelligence Platform. Sounds cool, no revenue disclosed.
- Promoter Trim:August 2025 — promoters sold 5.3 lakh shares (2.75%). “We’re confident in the company… but we’ll also take cash, thanks.”
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