Top IT Product Companies Stocks India (Week of May 10, 2026)

Sector Pulse

The IT Product sector is demonstrating high-velocity growth as digital payment infrastructure and spend management platforms scale. NPST reported a 145% YoY revenue increase to ₹57.17 Cr, while Zaggle achieved a record ₹498 Cr, up 47.9% YoY. Despite NPST missing its internal ₹67 Cr target due to order spillovers, the underlying demand remains improving, particularly in the Technology Service Provider (TSP) segment which now dominates NPST's mix at 85-90%.

Catalysts Playing Out Across the Pack

Operating leverage inflection via AI is the primary catalyst. NPST is targeting a 40% optimization in delivery mandates, while Zaggle has already 'considerably downsized' its IT team to leverage AI efficiencies. Geographical expansion is the second major theme; NPST is in discussions with 10 to 11 countries, and Zaggle is establishing a presence in the GCC region via Abu Dhabi and UAE. New product launches, such as NPST's PPI and Zaggle's ZAG.money, are expected to create high-value revenue streams, with Zaggle targeting INR 500 Cr from its retail pillar in 4-5 years.

What Managements Are Guiding

Managements remain confident, reaffirming all forward targets. Zaggle is maintaining its 40% to 45% organic revenue growth guidance and a long-term adjusted EBITDA margin goal of 14% to 15%. NPST is guiding for 15% to 20% sequential growth in Q4 FY26, expecting to hit all-time highs as delayed orders materialize. Capex is being directed toward platform scalability, with Zaggle earmarking over INR 100 Cr for its retail segment.

Sub-Sector Aggregates

Aggregate metrics reveal a sector in a high-growth phase, with YoY revenue growth ranging from 47.9% to 145%. EBITDA margins show a wide range (10.2% to 32.8%), reflecting different business models—NPST's bank-led infrastructure vs. Zaggle's platform-based spend management. Notably, 100% of analyzed constituents are now using AI as a primary lever for operational efficiency and headcount management.

Shared Risks (9-type taxonomy)

Regulatory risks are the most prominent, with NPST facing technical observations on IPO fund usage and Zaggle monitoring draft income tax rules for 2026. Labor risks are categorized as low, with both firms proactively managing the transition to AI-led delivery. No significant geopolitical or FX risks were highlighted this quarter despite the global expansion plans.

Bottom Line

The sector is successfully transitioning from a domestic-only focus to a global product play, supported by high-magnitude PAT growth (77.7% to 124% YoY). While regulatory technicalities require monitoring, the aggressive pursuit of operating leverage through AI and international expansion provides a clear path for margin expansion.