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Informist, Tuesday, Apr. 29, 2025

By Krity Ambey

NEW DELHI – Analysts appear divided on the March quarter financial results of One97 Communications Ltd. While two brokerages projected a net profit for the financial technology company in Jan-Mar, two others anticipate a loss, reflecting mixed expectations on revenue growth and cost efficiencies.

Emkay Global Financial Sevices Ltd. and Motilal Oswal Financial Servies Ltd. have estimate the net loss in the March quarter to be INR 522 million and INR 1.12 billion, respectively. JM Financial Institutional Securities Pvt. Ltd. and YES Securities (India) Ltd. expect a net profit of INR 45 million and INR 360 million, respectively, in Jan-Mar. In the corresponding period a year ago, the company was in the red with a loss of INR 5.50 billion.

The Paytm parent firm has reported a profit only once--in Jul-Sept of 2024, since its listing on the exchanges in 2021. In the quarter ended December, the company had reported a loss of INR 2.10 billion. One97 Communications is set to announce its Jan-Mar earnings on May 6.

"We expect Paytm to report positive EBITDA (earnings before interest, taxes, depreciation, and amortisation), driven by better financial services revenue and lower indirect costs. However, lower UPI (Unified Payments Interface) incentives may weigh on profitability," said Emkay Global in its report. Meanwhile, JM Financial noted that "Paytm's payments business is likely to remain flat sequentially, with take rates declining due to a higher UPI mix. Merchant loans could drive financial services, while personal loans remain weak."

One97 Communications' consolidated revenue from operations is expected to recover to INR 20.72 billion in Jan-Mar, as per the average of estimates from the four brokerage firms, after falling 35% in Oct-Dec to INR 18.28 billion. YES Securities said in a report, "We forecast a 6% QoQ growth in payments services revenue and 30% QoQ growth in financial services, leading to overall revenue growth of 20% QoQ, aided by UPI incentives."

The fintech company's net sales have been under stress since the Reserve Bank of India imposed operational restrictions on Paytm Payments Bank in January 2024. One97 Communications has been focusing on cost optimisation and regulatory compliance after the RBI's action. The company has since worked to stabilise operations, including resubmitting its application for a payment aggregator licence.

At 1030 IST, shares of One97 Communications traded 1.3% lower at INR 870 on the National Stock Exchange.  

Following are the Jan-Mar earnings estimates of One97 Communications Ltd. based on reports from four brokerages in descending order of the estimate of net profit:

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Tanima Banerjee

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