1. At a Glance – Smallcap With a Big Payment Ego
Market Cap: ₹2,440 Cr
Current Price: ₹1,170
Stock P/E: 70.6
ROCE: 69.2%
ROE: 56%
Debt to Equity: 0.02 (basically “chai ka kharcha”)
Q3 FY26 Revenue: ₹52.62 Cr
Q3 FY26 PAT: ₹11.54 Cr
3-Month Return: -33.3%
Now pause.
Revenue up 146% YoY.
Profit up 125% YoY.
EBITDA margin above 32%.
ROCE flirting with 70%.
And yet the stock is down 33% in three months.
Is the market confused… or just moody?
This is a fintech company riding India’s UPI tsunami, serving banks, payment aggregators, NBFCs, and now even Africa. It raised ₹300 crore from Tata Mutual Fund at ₹2,074 per share, while today it trades at ₹1,170.
Either someone overpaid… or someone is underestimating something.
Let’s open the UPI switch and see what’s actually happening behind the QR code beep.
2. Introduction – From “Unknown IT Vendor” to UPI Infrastructure Player
Back in 2013, while most of us were figuring out how to send money via IMPS without panic, NPST quietly started building payment infrastructure.
Fast forward to FY26 Q3:
- 20+ banks
- 100+ customers
- 60 million daily transactions
- ₹57 Cr quarterly income
This is not a “consumer app” story.
This is backend plumbing.
You don’t see NPST.
But your bank might.
They power:
- UPI switches
- IMPS engines
- Banking super apps
- QR + Soundbox ecosystems
- Fraud management systems
- CBDC switches
In fintech, there are two types of companies:
- The flashy apps.
- The ones actually processing money.
Guess which one earns recurring SaaS revenue?
But here’s the twist — TTM sales are ₹159 Cr, down 16% year-on-year. Profit TTM down 29%.
So is Q3 the beginning of a new growth cycle… or just a bounce?
Let’s decode.
3. Business Model – WTF Do They Even Do?
Imagine you are a bank.
You want:
- UPI
- IMPS
- QR payments
- Fraud monitoring
- Dispute resolution
- Super app
- CBDC integration
Do you build all this internally?
Or call NPST?
3 Vertical Structure:
1️ Technology Service Provider (TSP)
Licensed + SaaS revenue
UPI, IMPS, CBDC, SuperApp, BBPS
This is sticky, compliance-heavy business.
2️ Payments Platform-as-a-Service (PPaaS)
Pay-per-use SaaS
Merchant acquiring (Evok 3.0), QR, Soundbox, Merchant Management
Think of it
