Network People Services Technologies Ltd Reports Strong Quarterly Turnaround Amid Mixed Annual Trends

Quarterly Financial Performance Surges

In the quarter ended December 2025, Network People recorded net sales of ₹52.62 crores, the highest in its recent history. This represents a marked improvement compared to the previous quarters where sales growth was subdued. The company’s PBDIT also reached a peak of ₹14.19 crores, reflecting enhanced operational efficiency and margin expansion. Net profit after tax (PAT) surged to ₹11.54 crores, while earnings per share (EPS) rose to ₹5.53, both figures setting new quarterly highs.

This positive financial trend is underscored by the company’s financial trend score, which improved dramatically from -11 in the prior three months to +9 in the latest quarter. Such a shift indicates a reversal from negative to positive momentum, a critical development for investors monitoring the company’s turnaround prospects.

Margin Expansion and Operational Efficiency

The expansion in PBDIT margin is particularly noteworthy. While the company has historically faced margin pressures in the competitive software and consulting sector, the latest quarter’s results suggest improved cost management and pricing power. This margin expansion has been a key driver behind the surge in PAT, despite the broader challenges faced by the industry.

However, it is important to note that the nine-month PAT figure stands at ₹28.57 crores, reflecting a year-on-year decline of 26.56%. This indicates that while the recent quarter has been strong, the company is still in the process of recovering from earlier setbacks experienced during the fiscal year.

Stock Price and Market Performance

Network People’s stock price closed at ₹1,306.55 on 12 Feb 2026, down 4.85% from the previous close of ₹1,373.10. The stock has traded within a 52-week range of ₹1,140.25 to ₹2,388.00, reflecting significant volatility over the past year. Intraday trading on the day saw a high of ₹1,389.70 and a low of ₹1,251.00, indicating active investor interest amid the company’s turnaround narrative.

When compared to the broader market, Network People’s returns have been mixed. Over the past week, the stock outperformed the Sensex with a 6.98% gain versus the benchmark’s 0.68%. However, over the one-month and year-to-date periods, the stock underperformed, declining 3.48% and 6.54% respectively, while the Sensex remained flat or positive. Longer-term returns data is not available, but the Sensex has delivered robust gains over three, five, and ten-year horizons, underscoring the importance of sustained performance for Network People to catch up.

Mojo Score Upgrade Reflects Improved Outlook

Reflecting the improved financial performance and positive outlook, Network People’s Mojo Grade was upgraded from Sell to Hold on 1 Feb 2026. The current Mojo Score stands at 54.0, signalling a moderate investment appeal. The Market Cap Grade remains at 3, indicating a mid-tier market capitalisation within its sector.

This upgrade is significant as it marks a shift in analyst sentiment, recognising the company’s efforts to stabilise and grow after a challenging period. Investors should note that while the Hold rating suggests cautious optimism, further confirmation of sustained growth will be necessary to warrant a stronger buy recommendation.

Industry Context and Competitive Positioning

Operating within the Computers - Software & Consulting sector, Network People faces intense competition from both established players and emerging technology firms. The sector has seen rapid innovation and evolving client demands, which have pressured margins industry-wide. Against this backdrop, Network People’s recent margin expansion and profitability gains are encouraging signs of operational resilience.

Nevertheless, the company must continue to innovate and expand its service offerings to maintain momentum. The negative nine-month PAT growth highlights the lingering challenges from earlier quarters, emphasising the need for consistent execution going forward.

Investor Takeaway and Outlook

Network People Services Technologies Ltd’s latest quarterly results mark a pivotal moment in its financial journey. The company has demonstrated the ability to reverse negative trends and deliver record quarterly sales, profits, and earnings per share. This turnaround is supported by margin expansion and improved operational metrics, which bode well for future quarters.

However, investors should remain mindful of the broader context, including the negative nine-month PAT growth and the stock’s recent price volatility. The Hold rating and moderate Mojo Score suggest that while the company is on a positive trajectory, it has yet to fully convince the market of sustained growth potential.

Going forward, Network People’s ability to capitalise on its recent momentum, maintain margin improvements, and navigate competitive pressures will be critical. Market participants should watch upcoming quarterly results closely for confirmation of this emerging trend.

Comparative Market Performance

Relative to the Sensex, Network People has shown mixed returns. The stock outperformed the benchmark over the past week with a 6.98% gain compared to Sensex’s 0.68%, signalling short-term investor interest. However, over the one-month and year-to-date periods, the stock lagged behind, declining 3.48% and 6.54% respectively, while the Sensex remained flat or positive. This divergence highlights the stock’s sensitivity to company-specific developments and the importance of sustained operational improvements to align with broader market gains.

Conclusion

Network People Services Technologies Ltd’s recent quarterly performance represents a meaningful step forward in its financial recovery. The company’s highest-ever quarterly sales, profits, and EPS, combined with margin expansion, have shifted its financial trend from negative to positive. While challenges remain, particularly in year-to-date profitability, the upgrade in analyst sentiment and improved Mojo Score reflect growing confidence in the company’s turnaround strategy.

Investors should consider the stock’s current Hold rating as a signal to monitor upcoming results closely, assessing whether Network People can sustain its growth momentum and improve its competitive positioning within the software and consulting sector.

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