Analyst Concall
One 97 Comm sees 15-20% EBITDA growth over next 2-3 years
This story was originally published at 19:44 IST on 22 July 2025
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By Krity Ambey and Vaishali Tyagi
NEW DELHI – One 97 Communications Ltd, which posted its first earnings before interest, taxes, depreciation, and amortisation, or EBITDA, in the June quarter, expects the metric to grow 15% to 20% in the next two to three years, according to the company's management. The fintech firm posted an EBITDA of INR 720 million for the June quarter against an operating loss of INR 880 million in the trailing quarter.
"That (EBITDA growth of 15-20%) seems more achievable today than a few quarters ago because the contribution margin is very good," the company's management said in a call with analysts. "We are also seeing that keeping a tight leash on expenses overall does still allow us to grow very well."
The company's contribution margin rose to 60% in the June quarter from 50% in the corresponding period a year ago and 56% in Jan-Mar due to improved net payment revenue, higher share of distribution of financial services revenue, and reduction in direct expenses. The company's management expects its contribution margin to be in the range of 55% to 59% for the year. The company's capital expenditure was a mere INR 790 million in the quarter ended June.
One 97 Communications beat analyst expectations by a wide margin in the June quarter with a profit of INR 1.23 billion, with support from strong consolidated revenue from operations and a slump in expenses. The company's net sales jumped 27.7% on year to INR 19.18 billion and total expenses fell 6.4% to INR 20.16 billion.
On Tuesday, shares of One 97 Communications ended 3.3% higher at INR 1,051.05 on the National Stock Exchange. The company released its financial results for Apr-Jun after market hours. End
Edited by Akul Nishant Akhoury
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