Network People Q1 FY27 Results (NSE: NPST)
Signal: Earnings grew
The read
The operating trajectory inflected positively after four quarters of consolidated margin contraction: revenue grew 68.0% YoY to ₹56.48 crore and EBITDA margin recovered to 33.3% from 29.0% in Q1FY26, but PAT growth of 53.7% lagged revenue and EPS growth of 41.8% lagged PAT because other income contributed 34.1% of PBT and the preferential issue enlarged the share base.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹56.48 Cr | 68.0% | N/A |
| EBIT | ₹14.7 Cr | 48.9% | |
| Net profit | ₹11.05 Cr | 53.7% | |
| EPS | ₹5.26 | 41.8% | |
| EBIT margin | 33.3% |
P&L walk
Revenue of ₹56.48 crore rose 68.0% YoY and EBITDA of ₹18.79 crore rose 66.3% YoY, with EBITDA margin recovering to 33.3% from 29.0% in Q1FY26; PAT growth of 53.7% was slower because other income of ₹4.94 crore represented 34.1% of PBT.
Segments
No segment results table is disclosed; consolidated revenue of ₹56.48 crore grew 68.0% YoY versus standalone revenue growth of 48.4%, indicating the incremental growth sits outside the parent entity.
Key positives
- Consolidated revenue reached ₹56.48 crore, up 68.0% YoY, reversing the 42.4% YoY decline reported in Q1FY26.
- EBITDA rose 66.3% YoY to ₹18.79 crore and EBITDA margin expanded to 33.3% from 29.0% in Q1FY26, reversing the 21.0% margin in Q4FY26.
- The company received a ₹300.0041 crore preferential-allotment pool and reported no deviation in its approved utilisation; ₹35.6409 crore had been utilised by June 30, 2026.
- The filing records a June 22, 2026 order from a Maharatna PSU for development and implementation of a UPI TPAP application as a technology service provider on a SaaS model.
Key concerns
- Consolidated PAT of ₹11.05 crore grew 53.7% YoY, below 68.0% revenue growth, so earnings conversion has not matched the top-line rebound.
- Standalone revenue grew 48.4% YoY to ₹49.89 crore versus 68.0% consolidated growth, creating dependence on the subsidiary or other non-parent operations for incremental growth.
- EPS grew 41.8% to ₹5.26, 11.9 percentage points below PAT growth, indicating dilution following the preferential allotment.
- Other income of ₹4.94 crore represented 34.1% of consolidated PBT, making the quality of reported profit dependent on non-operating income.
Earnings quality: includes non-operating other income
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