More Stories

Informist, Tuesday, Jul. 22, 2025

NEW DELHI – One 97 Communications Ltd. was in the black in the June quarter for only the second time since its listing on the stock exchanges in 2021. Before this, the Paytm parent had reported its maiden profit in the quarter ending September 2024 after the sale of its ticketing business. 

The fintech company beat analyst expectations by a wide margin in the June quarter with a profit of INR 1.23 billion. Brokerage firms had anticipated One 97 Communications' profit to be in the range of INR 24 million to INR 189 million.

Compared with last year's metrics, strong revenue growth was the main driver of the company's profit in the reporting quarter. The corresponding quarter a year ago was exceptionally poor due to the regulatory action on the company by the Reserve Bank of India. One 97 Communications had posted a record loss of INR 8.39 billion, as its consolidated revenue from operations had fallen 51% on year.

The company's revenue from operations jumped 27.7% on year to INR 19.18 billion in the June quarter. Sequentially, the company's net sales rose only marginally from INR 19.12 billion. 

The company was in the red in the trailing quarter as well due to exceptional expenses on account of accelerated charges on cancellation of employee stock ownership. The company had posted a loss of INR 5.40 billion with INR 24.76 billion total expenses, which included INR 1.69 billion of ESOP cost. The company's founder and Chief Executive Officer Vijay Shekhar Sharma had voluntarily forgone all 21 million ESOPs granted to him in the March quarter. In the reporting quarter, the fintech company's total expenses fell 18.6% on quarter and 6.4% on year to INR 20.16 billion, which included INR 300 million ESOP cost. In 2025-26 (Apr-Mar), the company expects its ESOP cost to be in the range of INR 2.50 billion to INR 2.75 billion. 

At INR 720 million, One 97 Communications reported its first earnings before interest, taxes, depreciation, and amortisation or EBITDA, compared with INR 880 million of operating loss in the trailing quarter. The company ended the reporting quarter with a cash balance of INR 128.72 billion, on the back of cash received from sale of entertainment ticketing business, and the sale of Stock Acquisition Rights of PayPay Corp.

The company's focus areas to sustain growth are payments and distribution of financial services. Its income from payment services rose 18% on year to INR 10.44 billion in the June quarter, and that from financial services doubled to INR 5.61 billion from INR 2.80 billion a year ago. The marketing services sales, on other hand, fell to INR 2.47 billion from INR 2.67 billion in the March quarter and INR 3.21 billion a year ago.

The company's contribution margin rose to 60% in Apr-Jun from 56% in Jan-Mar and 50% from Apr-Jun 2024 due to improved net payment revenue, higher share of distribution of financial services revenue, and reduction in direct expenses. "We expect the contribution margin to be in the mid to high 50s percent for the year," One 97 Communications said in its release. The company added around 600,000 merchant subscribers in Apr-Jun, taking the base to 13 million as of Jun. 30.

"To further strengthen tier-1 market position and expand in tier-2 and tier-3 cities, we are investing in expanding our sales network," the company said. "At the same time, we continue to enhance operational efficiencies by lowering device costs, ramping up the refurbishment of old devices, and increasing sales team productivity and the same is reflected in lower capex despite significant device growth over the last few years." One 97 Communications reported INR 790 million capital expenditure in Apr-Jun. 

"Product led innovation is showing early signs of success, through higher retention and market share gains despite low marketing spends," One 97 Communications asid. "We are committed to continue market share."

At Tuesday's board meeting, One 97 Communications also approved appointment of Urvashi Sahai as an additional director in the capacity of whole-time director and designated as key managerial personnel of the company for a term of five years. The board also took note of the resignation by non executive independent director Bimal Julka. 

On Teuesday, shares of One 97 Communications had ended 3.3% higher at INR 1,051.05 billion on the National Stock Exchange. The company released its financial results for Apr-Jun after market hour.  End

Reported by Krity Ambey

Edited by Akul Nishant Akhoury

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.