Network People Services Technologies Limited ($NPST)

Ladies and gentlemen, good day, and welcome to the Network People Services Technologies Q4 FY '26 Earnings Conference Call hosted by Valorem Advisors. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Ms. Purvangi Jain from Valorem Advisors. Thank you, and over to you, ma'am.

Thank you. Good morning, everyone. My name is Purvangi Jain from Valorem Advisors. We represent the Investor Relations for NPST Limited. On behalf of the company, I would like to thank you all for participating in the company's earnings call for the fourth quarter and full year ended of the financial year 2026. Before we begin, let me mention a short cautionary statement. Some of the statements made in today's earnings call may be forward-looking in nature. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from those anticipated. Such statements are based on management's belief as well as assumptions made by and information currently available to the management. Audiences are cautioned not to place any undue reliance on these forward-looking statements in making any investment decision. The purpose of today's earnings call is purely to educate and bring awareness about the company's fundamental business and financial quarter under review. Now let me introduce you to the management participating with us in today's earnings call. I'll hand it over to them for their opening remarks. We have with us Mr. Deepak Chand Thakur, Chairman and Managing Director; Mr. Ashish Aggarwal, Joint Managing Director; and Ms. Savita Vashist, Executive Director. Without any delay, I request Mr. Deepak Thakur to start with his opening remarks. Thank you, and over to you, sir.

Thank you so much. Good morning, everyone. Thank you for joining the results call today. It is indeed my pleasure to connect with you guys, share our progress, take your opinion and better the future prospect that we can take it from here. We have worked tirelessly last year to rebound and rebuild the business model needed for growth engine. And I think every -- and I thank every NPSTian for these efforts. I would call FY '26 a year of transformation, derisking and rebuilding NPST for sustainable, scalable and diversified growth. Like I always tell my people, we have to build one of the finest PayTech company coming out of India, and we should take India's digital payment story globally. I must say that we are now moving in that direction. This time, we have clearly outlined our organization charter in our investor presentation. This is to bring in much needed clarity on the business and how we have built the future road map for the next 3 years. A clear guidance with strategic road map would help you understand the fundamental values we are chasing and build an organization for decades to come from now. Strategically, we have focused on a few core areas that will reap better future prospects and growth margins. Our first focus was about regulatory derisking. This is an effort to lower down on our exposure to reduce any business prospects that can impact -- that can get impacted due to regulatory guidance in future. The second focus being revenue model evolution. While UPI has grown tremendously in volume, its revenue model and potential in payments has remained more or less stagnant for the past 5, 6 years. This brings down the prospect of incremental opportunity in the same segment, and that's why it was critical to relook at the segment and build verticals and focus on the international market where fee-based economics are structurally embedded. Third one was to focus on improvisation of business metrics. Considering the nature of TSP business and the pace of acquiring business every quarter, we had created longer credit period in our business. Our target is to improve this business mix that will have major impact on improvisation of payment terms from FY '27 onwards. The company is now consciously reducing volumes from concentrated dependencies and low monetization payment flow towards high-margin SaaS-based RegTech and international opportunity. And the fourth one is about AI being our central strategy. We have set target for integrated AI across product development and operations. We have target to improve efficiency by 30% in support functions, accelerate development by 50% and enhance capacity by 1.5x, more from the existing business. Additionally, AI-led products in RegTech will begin contributing revenue from FY '27. We already bagged one large order. This will help improve revenue per employee metrics by 300% in next 3 years. If we map the organization with industry, we can notice that structurally, digital payment remain extremely strong. And if we add innovation and future-ready products, this will definitely read better results. Our opportunity is driven from open banking expansion of UPI globally and CBDC evolution. Again, while we operate in large and fast-growing market, we see that payment processing market will grow with a 22% CAGR, RegTech with about 32% and emerging segments like digital lending and orchestration will grow upwards of 40%. We have also -- we also want you to be aware and track the growth opportunity we are targeting. You can refer second section from Slide 9 to 16, where we have shared insights into 3 of our verticals and international growth strategy. Investment into SaaS-based hosted engine will trigger at least 200-plus tenants by FY '29 in TSP vertical. We have pivoted into newer opportunities in international market for PPaaS, launched AI-based risk engine and bagged one of the large public sector order. And internationally, we believe we can build an export opportunity from India around the digital payment stack we have built here. FY '26 Q4, we have bagged a large RegTech order, including central payment body internationally. We have added about 9 accounts in Bank-in-a-Box and payment devices. We have got about 2 of the PSU orders recently. And we have entered IoT-based payment solution, where we are extending our technology to one of the newest fintech in the market. If you look at the quarterly performance, our revenue has grown by about 2.4x year-on-year to about INR 68.46 crores. Our EBITDA has increased to INR 19.26 crores and net profit has doubled compared to last year to about INR 12.24 crores. Our FY '26 performance, like we said it's about INR 209 crores now. I mean it's over INR 200 crores, which we were targeting. EBITDA about INR 65 crores and net profit about INR 41 crores. Over the past year, last 4 years, if we see consolidated, our revenue has grown with about 81% CAGR, EBITDA with about 103% and profit about 128% in 4 years' operations. In future, we see about 70% CAGR growth for the next 3 years, which shift from low margin to high-margin metrics and increasing contribution from international market, SaaS and subscription model and AI-driven products. FY '26 was a year of transformation and derisking. We have built a stronger, more resilient business model. Our strategy is clearly focused on international expansion, AI and high-margin growth. We are confident that the steps we have taken will position NPST to deliver sustainable growth and long-term stakeholder value. I thank you so much for your continued support and the trust in the organization. We really look forward to engaging with you here onwards. Thank you, and I open the forum for the questions.

[Operator Instructions] Our first question comes from the line of [Akshay Sena] from AK Investment.

First of all, congratulations on the great set of numbers, sir. And my first question is on the cash flow side. We have generated negative cash flow from operations in FY '26. So what was the reason for that? And how much EBITDA to operating cash flow conversion do we expect in FY '27 and going forward?

Well, Ashish, would you like to take that up?

Can you please repeat the question. I think I had some network issues, I was not able to hear you.

Akshay, please repeat your question.

Yes. Sir, we have the negative cash flow operating cash flow in FY '26. So how much EBITDA to operating cash flow do we expect to generate in FY '27 and going forward? So what is our credit period in all these things?

Actually, Deepak has already told this year is transformation year. This year we have shifted from PPaaS to [indiscernible] average debtor period is high. That we have already mentioned in our report also. Now we are gradually shifting from TSP to the better areas or interaction where credit period will be less. So I hope this gradually will reduce this overall sales period and increase the EBITDA versus debt ratio.

Okay. Fair enough. And the second question is on the guidance, sir. You have given the guidance of growing 70% CAGR in the next 3 years. So how confident are we to achieve these numbers? And also if you can put some light on the EBITDA margins going forward because we had the lowest EBITDA margin in the quarter 4. So going ahead, what is your take on that?

Akshay, we have -- there has been -- I mean that's why it was very critical to share the overall insight of the organization growth. Last year, if you see the overall vertical contributing to the business has been TSP, where the contribution coming from TSP was nothing less than almost about 90-odd percent, and this has majorly impacted the overall journey of the EBITDA that we were earlier giving. However, this year, we have focused completely -- in fact, last year, we have focused completely on building this particular piece, right, from investing into SaaS going international, reinvesting into the products that can have a market fit for the international market. So all of that has been taken care, and that is the reason why you will see impact in Q4. Yes, coming this year, I think that mix will be much higher. The confidence on 70% CAGR for 3 years is high because we have a very, very strong funnel. In fact, if you see Slide 9 to 16, we have not only given the projected numbers, we have also given our funnel understanding as well, wherein the SaaS can add almost about 200-plus tenants on our platform. International foray is 10-plus countries that we are looking at. And at the same time, in the PPaaS, we are seeing nothing less than 40-plus accounts adding. So all of that is part of the funnel which we see is there. And that is the reason why we are extremely confident in giving this number.

Okay. So sir, on the EBITDA front, when do we expect to achieve 33% to 35% EBITDA by what quarter -- by which quarter, sorry?

I would suggest that you see this year because there is a tremendous trigger from the SaaS and the international revenue coming in. And if you balance out the entire year, you will see the EBITDA at the same level what you have seen last year -- last to last year.

The next question comes from the line of Raj Kumar Vaidyanathan from RK Investment.

Thank you so much for the opportunity. The first question is...

I'm sorry to interrupt, Rajkumar your voice is a little muffled. I would request you to use your phone on handset mode in case if you're on a handsfree mode.

Is it better now?

Much better.

Okay. The first question is on your Slide 18, where you are giving this revenue -- expected revenue 70% CAGR. Slide 18, yes. So can you tell me what is the number because there's no scale given for FY '27, '28, '29, what are the absolute numbers that we are looking at.

We're in the range of INR 850 crore to INR 900 crore by the end of FY '29. So if you can take from FY '26, the number that we have closed right now INR 209 crores. And approximately, that's where the baseline can be driven for the next 3 years.

And the CAGR 70, is uniform across 3 years, is it? Or less than...

No. No, no, no. So the thing is, see, last year, we have invested fundamentally heavy in realizing where exactly we can have higher margin coming in, how we can add more of a recurring prospect to the organization. And at the same time, how do we derisk completely from the current domestic non-MDR and non-interchange landscape. So these were the few factors that we have focused completely. Last year, the major impact has been building this all of these engines. And this year, when we leverage that, as and when our funnel starts clicking because we already have some of the executions going on, large-scale execution. As and when these start coming in, it will have all the cumulative impact. And that is why we believe that 3 years journey will be much better to visualize.

And what is the number you're looking at for FY '27?

Anywhere around that, 70% should look good. That's what we are targeting.

Yes. And you're going zero from all the international business that you have given the outlook for '27 through '29, we are moving from 0 to whatever 10 to 15 for TSP and payment platform is 5 to 8 and RegTech also similar number. So I just want to know because if I see your employee cost line item in your Q4, the employee cost has come down. So where are these investments sitting? Is it sitting on some other expense line? Are these platforms have been built over a period of time. I should not be looking at this employee cost driver.

No, you shouldn't be. Because...

We are primarily product company. So there are multiple products that we have developed in last year. So that amount you can see in our asset side also.

Okay. And for this '27, how much of this international business that we are giving is all sold, or anything unsold is included in this? Because you've given a range...

Yes. So beginning of the year, we already have some funnel which needs execution very soon. And over this and next quarter, we see the executions coming in. And these will give instant cumulative impact over the top line and the bottom line both for the Q3 and Q4. We have given this number because there is an execution going on for the international one. That's the main thing. And we have the entire year now to add more funnel and close them.

Okay. No, I just want to what is sold percentage and what is unsold in this category. Whatever growth that you're projecting for international, how much of that business for FY '27 is already in the kitty and how much you need to really work to get the order?

Almost 40% is in our kitty right now. At the beginning of the year.

The next question comes from the line of Ketan Patil , an individual investor.

Congrats on a good set of numbers. While most of my questions have been answered. I just wanted to check you are talking about 70% CAGR. So full year '27, are we looking at INR 340 crores, INR 350 crores of revenue.

Anything around that range.

Okay. And in the presentation, I see the project expenses going up by almost 60%. So is that because of the new capacities that we are building -- sorry, the new product lines that we are building?

Yes, it has impact of that. Let me answer. I think majorly this is shifting from PPaaS to TSP. That's the major reason you can say. Any new development will not be part of the P&L.

Okay. Okay. Got it. And the margins at PAT level, PAT level, which have come down from 25% to about 20% this year. When do we see that going back to 25% or even more than that?

I believe that by this financial year, we should be able to -- we are back on it. But definitely this require -- this will be much better when it comes to the next 2 years that we are projecting.

Okay. Great. One last question. We kind of took this funding from Tata. We raised money from Tata Mutual Fund. A good amount of that is still with us. So are we not seeing opportunities for inorganic this thing? Any thoughts on that?

Yes. Yes, absolutely. So inorganic, we had a few of the deals on our table. And when we actually spent a lot of time on it, we realized that although the deal was good, however, it was taking our focus away from what exactly we wanted to build and would have added something which we were unaware of. So we decided to dwell more. And there are a couple of deals we have said no right now after the due diligence and some of the discussions we had over a period of time. Right now, our focus is to see a deal which can instantly give us a global presence, global market and global exposure -- not just exposure, but the execution capability as well. The second one is obviously beyond payments when we see a lot of effort around DPDP, the new regulation coming in around lending and all of that taken together. These are the areas where we want to invest. So we just don't want to jump on to it, and that is the reason why we are taking some time to have some fundamental investments.

The next question comes from the line of Nandan Kumar, an individual investor.

First of all, many congratulations. I mean I can see that from FY '25 to FY '26, you have completely transformed your business from PPaaS to TSP, and there is a significant jump in the revenue contribution which is not easy task to do in a particular short period of time. Really good to see that. I have just one question, sir. One more thing, the presentation itself is very good this time. I think it gives us a clear picture and clear roadmap that what the company is going to do. A really good PPT. My question is on International vertical. Sir, what is the margin that we get on the International business. You, sir, mentioned that in one of the line as high margin, and one of the line is a very high margin. So if you can give that some color, because this revenue, it will keep on going up. It's a completely new vertical [indiscernible].

I'm sorry to interrupt. You're not quite audible.

Nandan, is there any further question? Because -- what I could get is what kind of margins do we have in the international market?

That's correct sir.

And what about high end, very high -- how does that differ, if I'm not wrong?

Yes, yes. That's my question.

Okay. Got it, Nandan. So see, the thing is we should be proud as Indian that what we have built over the last 15, 20 years is a premium now in a global market. And we consider that as commodity here. So this is what I always tell my team. When it comes to digital payments, we are the first world. And when we go out, we have that respect coming in from everywhere. And that is the reason why the margins in this particular segment will be better when you go globally. So when it comes to high margin, we believe anything which is over 50%, 70% from the existing margin that we are able to get in India, that's higher margin for us. So if we are able to get anywhere around 15%, 20% here and if we're able to add -- if we're able to make it to about 30%, 35% globally or maybe 40%, that's higher margin. Anything above that, anything which is more than double or much higher than double is actually a very high margin for us. That's how we look at the margin ratio. So for sure, the products are designed in such a way that if we stay invested globally in the sense for that particular country, if we build something and stay there, then for sure, we reap benefits for at least 5 to 10 years in that particular margin.

The next question comes from the line of Rajkumar Vaidyanathan from RK Investment.

Sir, just one question on Slide 17. You are saying that the TSP revenue will kind of taper down from 90%, 95% currently to 30% to 40% in FY '29. So I just want -- I just want the absolute value of these services will come down or as the size of the cake increases, the absolute value will increase, but it will increase at a lower rate. What is -- I mean, is understanding correct?

Yes. That's the understanding correct. So we have given business contribution. We've not given absolute value. So considering the exposure that we have right now on TSP domestic market only, we believe taking TSP to international market. And then the number in the domestic market will continue to scale. However, our focus and the opportunity coming from the other segment will be higher. That's why the contribution may go down, but the absolute number will be higher.

Okay. Got it. And the second question is you mentioned that 40% of the new business, international business in the kitty. is there a risk for the 60%? I mean what is your confidence level for FY '27 numbers to be achieved? Will it be on the lower range of whatever the 10% to 15% and 5% to 8% that you mentioned or it will be...

You're referring to the international numbers...

That's right. I just want the confidence level...

I mean I said -- like I said, closure of March 31, we already had funnel in hand, and we are in execution stage right now. And there are some advanced discussions going on basis the same win that we are getting, which we anticipate in Q1 and Q2 as well. So our confidence level is very high, and that is the reason why we gave this number because we have closed deals and we are almost heading towards execution now. And thanks to AI, our journey will be faster now.

The next question comes from the line of Sajal Gupta with [SP Securities].

Congratulations on the good set of numbers...

Sajal, you're not quite audible. Could you be a little louder, please?

Congratulations on good set of numbers and the presentation is excellent. So my only question to you is that we talk of AI. So could you tell us how the journey for NPST will be on the AI products going forward from here?

We see AI as a two-pronged strategy. One is how do we internalize AI as practice within the organization. Until last year, we were just trying to understand how this can impact development cycle, how it can impact my support functions, and whether there is a need across organization. And patiently, we stayed on it. And this year, now it's an actual targets within organization. So the first role that AI is going to play is obviously the productivity, efficiency and the faster delivery cycle. Now that becomes core to actually achieving good numbers this year. Second is AI product design. So to sell the AI-based product, we first got into the RegTech segment rather than focusing completely on payments because anything we would have built on payment even if it is AI would have been nothing less than a commodity because we taking this product would have definitely not picked up that much. So RegTech for sure, made good impact. It is an enterprise product that we have been able to build. One of the large public sector bank has already bought it, and we are in close discussion with about multiple public sector and private banks right now. So this, we intend to now extend to payments and the other verticals. So what we have been able to do last year with RegTech, this year, we intend to monetize from RegTech and fundamentally build pillar on the AI-based payment and banking solution. That's the overall strategy.

So as I understand, in RegTech, it is a mandatory for every bank to have that business that...

It's a pseudo -- I would say it's a pseudo mandate because the kind of challenges the payment industry is going on, either there are banks coming up with an RFP or those banks who are not coming up with an RFP or those banks who have not called out for the request at all, are 8 out of 10 pitch goes into either POC or it goes into a sales pitch. So that's the kind of demand that we are sitting on right now. So even if there is no mandate, for sure, this is a definite mandate from the internal CRO and CISO of a bank.

Okay. And is there a lot of competition in this kind of a product in the market?

Limited. Because this kind of product takes at least a couple of years to build. AI needs training, your machine learning has to go through pattern studies. There is a lot and lot of effort it has to go through. So we have spent 3 years to arrive here. So I believe that journey has to go through the amount of data. It has to learn through the pattern. It has to learn through domain. It has to learn through being in this practice for at least this long. I mean we have been in payment for a decade now. So all of this combination has to reserve into the product. So I believe the competition may come, but not now. It will take a couple of years from here.

Wonderful. Wonderful. And this product has a potential to go international also, if I'm not wrong.

Absolutely. Absolutely. Yes.

The next question comes from the line of [Rajeev Saigal] , an individual investor.

Congratulations for a set of excellent numbers in FY '26. We noticed quarter-on-quarter growth in revenue from operations. And it's very heartening to see a projected growth rate in revenue at CAGR of 70% that should take us to revenues of almost INR 950 crores by FY '29. I have a question on Slide #17, which gives a breakup of your low margin, high margin, very high-margin businesses. In FY '26, literally 90% to 95% of your business was subject to low to medium margins with virtually no international business. And this is expected to change dramatically in the coming 3 years, like your international business -- and despite this in FY '26, your EBITDA margin was 33%. Now your international business is slated to grow to about 25% in the current financial year, 40% next year and almost 50% in FY '29. And you are classifying your international business as high margin and very high margin. So can you give us at least some indication of what kind of EBITDA margin can we look at? I'm not asking you for a breakup between domestic and international, but at least for the company as a whole, what kind of EBITDA margin can we look at, although you achieved 33% in FY '26. And now you're moving to high margin, very high margin business. So at least give us some indication of what kind of EBITDA margin we can expect in each of these 3 financial years.

Thanks, [Rajiv]. Well, I think if you look at EBITDA margin, we -- what we are essentially doing is, we are slowly trying to focus on funnels where the margin and the recurring impact can be seen. And you see that it is spread across 3 years. It is not just a quarter or a half yearly impact. It will have its accumulation over a period of time. So I believe that the margin -- EBITDA will start improving from nothing less than a 10% higher -- I'm not saying the absolute 10%, but overall, the number that we have in the EBITDA from there to as high as 40%, 50%. Now that's, again, as and when we keep on adding the blocks that is mentioned in Slide 17, as and when we start improving the numbers on every block, I think that's where we will be able to achieve the kind of EBITDA that I have mentioned right now. So the range is very clear. I mean we have to improve here onwards. And it can start kicking in by about over the existing EBITDA, the EBITDA margin incremental 10% to about 40%, 50% somewhere at the end.

The next question comes from the line of Abhishek, an individual investor.

Congratulations on the great set of numbers this year. As you mentioned, our trade payable -- our trade receivable days went up because of the credit period that was increased to derisk the business, and we are actively pursuing that to come down. So what number actually would be we'll be looking at in the current year -- in the current financial year and the next coming years, which we expect to stabilize around?

I didn't get your question. Ashish?

Yes. Yes. I'll answer. Abishek, actually, I told it is complete shift from PPaaS to TSP. This is the nature of business in TSP. The credit period is quite longer. Year-on-year, we are now changing our mix from our TSP to multiple domains. I believe this will decrease gradually over a period of time because of change in mix in our entire business. That's the main reason. We'll not be completely dependent on TSP.

Okay. We'll expect it around to be 180 days only, going forward. Is that correct?

It should be. And it will reduce. So as and when the total mix will change, this will reduce gradually. This is our thought.

The next question comes from the line [Surender] [indiscernible], an individual investor.

Congratulations on the great numbers. Question. I think the PPaaS business, I think that has come down greatly 2026 -- FY 2026 from 2025, right? So it was a great contributor in FY '25. So are we going to get back to those good revenue from PPaaS going forward? That's number one question. And the second question is going forward, the guidance that you gave 75% CAGR for next 3 years. So can we see the growth very gradually every quarter-on-quarter? Or is going to be like distributed over one quarter less than the other quarter is very high, something like that?

So first one about PPaaS, I think we have honestly spent more than a year now on this particular vertical reviving it, pushing it forward. But honestly, we are not getting the kind of results, the result versus the effort is not great. That's the reason why we decided whatever engine we have built, we need to pivot it completely. And there are 2 areas that we have now looked at is definitely the merchant orchestration, which is in the domestic segment and how do we take PPaaS globally. Quite interestingly, even at the start of the year, we have some of the discussions going on at a very, very advanced stage, which we should be closing at least by the end of Q1 or early Q2. That brings in the contribution what you have seen in the slide. I've already given the number. But again, we don't want to overexert in this particular segment unless and until we see results. This can change as and when we see a lot of upside and a lot of demand and a complete turnaround coming from the international market, then we will definitely revise this. We'll definitely relook at this number. But the efforts are across 3 segments, equal efforts. It may be TSP, it may be PPaaS, it may be RegTech. Any deviation, any incremental impact we will definitely let you know. Second, I think your question was -- I'm so sorry, I forgot the second one.

The second question was whether the growth will be gradual...

Okay. Got it. So the growth is going to be triggered heavy as and when the executions of large projects are taken care. In the sense, we have signed a large OpEx deal wherein we will get paid every transaction. As soon as the execution is done, the revenue will get triggered. So there is a possibility that in certain quarter, it may spike and it will start giving the results. However, as and when we go to year 2, year 3 from here onwards, we will see the stability around all of these triggered revenues coming into a cumulative impact. And that's exactly how you should be seeing. So this year, you should be looking at the yearly number for sure. And going forward, you should start seeing as a stable, in fact, a regular trigger coming in business from '28, '29.

The next question comes from the line of [indiscernible] Jain, an individual investor.

Congratulations on your robust performance in Q4. So like I just wanted to ask if the revenue grew 143% Y-o-Y in Q4, but full year EBITDA margin declined from 37% to 31% and the net profit fell 9.7%. So like what are the key reasons behind the decline in the profitability despite the strong revenue growth?

Like I said, I think from the beginning, we have been talking and I have called out exactly the impact of the change in business vertical contribution in my presentation, and I've clearly presented that. So if you see how the margins play between TSP and PPaaS and RegTech and the contribution from each of this vertical coming in. Again, we have to understand the demand from the market. The demand from the market in the domestic PSP will be higher. And you may not fetch a great demand even if there is a very high-margin business. It may take time to conceptualize and sell. It may take time to start getting the recurring number from the very high pockets. So one of the main reasons last year has definitely been our revenue going down from the high-margin PPaaS business to a low-margin TSP business. That's where the contribution came up. So we were able to sustain, we were able to grow our numbers for sure. However, the segment in which we operated last year, that is where we got an impact around the EBITDA impact. And if you see the learning from this segment and what action and efforts we have taken to take it from here to FY '27, '28, '29, that is what we have given a split in Slide #17. So that will give a much, much better clarity.

Got it. And secondly, the presentation mentioned like INR 300 crores raised from Tata Mutual Funds. So what is the deployment status and how much has been deployed and towards what specifically?

I think I have already shared this insight. A couple of deals we let go, we did not go ahead because it was a great -- these are really good deals, but when we took advice and when we spoke to some right guys, we got to know that it was actually impacting our focus and our business areas. And that's the reason why we did not go ahead there. Our deployment will happen on the global front, wherein we get the execution and the reach capability if at all we are able to buy an asset outside of India from where we are able to capture global market because now that's going to be a major focus here onwards. Second is beyond payment because there is margin pressure around the payment segment that we have seen. For sure, RegTech, lending, these are certain segments we see as an opportunity area. So these are a few things which we are still considering and these are strong business parameters. There are certain strong business parameters basis which we'll close the deal.

[Operator Instructions] The next question comes from the line of [Saurabh Shah], an individual investor.

Congratulations on the results, first of all. I just had 2 questions relating to the company. So my first question is, if you can elaborate on the international markets you are targeting first for exporting India's digital payments model and if there are any regulatory hurdles involved in that?

Okay. So very clearly, when it comes to international market, we are playing a role of a technology partner. We are playing a role of a TSP. We have built platforms in India, which we are now exporting globally. Now if you look at this particular aspect, there is no regulatory direct risk on us because we are building solutions for the global players. Secondly, the opportunity is around digital payments, around the payment platform, which is still evolving in those countries. In some of the countries, if we compare, India is almost about 10 years ahead. So we get an opportunity to build something from scratch. And in the product we've built about 6, 7 years back, that becomes like a premium solution there. So that's about the international.

Got it, sir. And my second question is, is the international revenue model primarily license-based or it's like SaaS subscription based.

Combination...

And how does the margin profile for this differ from your domestic TSP business?

So it's a combination of both. We see an opportunity in -- in SaaS as well as license model. There were some really good deals last year wherein we realized that if we are in global market and there are certain license-based modules, but the payment terms were not very favorable. And there were some of the opportunities where we felt this wouldn't be feasible for organizations payment -- the trade receivables that we are talking about. So we decided to let go such deals, so such decisions will be taken. License and SaaS, both we see an opportunity. Revenue will come from both. RegTech as a platform is purely a SaaS-based platform. So that will be purely SaaS. PPaaS, again, is a SaaS-based platform. That will again be purely subscription revenue. TSP is where we'll have the split of license and SaaS both. When it comes to margin, I think someone asked me this question. I clearly mentioned anything which is around 50% higher than what we are -- the kind of margin that we have in India is something that we will be looking at. It can range anywhere between almost about 25%, 30%, 40% higher than what we have here, and it can go as high as 50%, 60%.

So what would be the reason for the margins being so high internationally compared to India?

Majorly because the product that we have built is for 2026 India and the countries that we are looking at is somewhere in -- yes, 2020, 2018. So the -- because the country is in that phase of policy, process and technology, local players have not built the solution what we have built. So if they want to take a leap 5, 6 years ahead, they need someone who has built a solution, which is 5, 6 years ahead of their time. I hope that makes sense.

[Operator Instructions] Ladies and gentlemen, as there are no further questions, I would now like to hand the conference over to the management for their closing remarks.

Thank you, guys, for attending this call. We've made our best efforts to ensure that you get much larger visibility, clarity. Please remember that we don't intend to build an organization in short run, but an organization which will stay there for years and decades together. That is our effort. It will -- it takes time to build such large value, such large brand and your efforts, I would say, your trust and confidence really gives us that kind of strength. Thank you so much for attending this call.

Thank you, sir. Ladies and gentlemen, on behalf of Network People Services Technologies, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.