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Informist, Wednesday, Nov. 5, 2025

 

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--One 97 Comm Jul-Sept consol net profit INR 210 mln 
--Analysts saw One 97 Comm Jul-Sept consol net profit at INR 1.50 bln 
--One 97 Comm Jul-Sept consol revenue INR 20.61 bln 
--Analysts saw One 97 Comm Jul-Sept consol revenue at INR 20.36 bln 
--One 97 Comm Jul-Sept consol PAT INR 210 mln vs INR 9.28 bln yr ago 
--One 97 Comm Jul-Sept consol revenue INR 20.61 bln vs INR 16.59 bln yr ago 
--One 97 Comm to invest INR 22.50 bln into Paytm Payments via rights issue 
--One 97 Comm Apr-Sept consol PAT INR 1.44 bln vs INR 890 mln year ago 
--One 97 Comm Apr-Sept consol revenue INR 39.79 bln vs INR 31.61 bln yr ago 
--One 97 Comm Jul-Sept PAT includes one-time impairment loss of INR 1.90 bln 
--One 97 Comm: Impairment loss of INR 1.9 bln against loan to JV First Games 
--One 97 Comm Jul-Sept profit excluding exceptional cost INR 2.11 bln 
--One 97 Comm Jul-Sept payment services revenue INR 11.46 bln, up 10% on qtr 
--One 97 Comm Jul-Sept contribution margin 59% vs 60% qtr ago, 54% year ago 
--One 97 Comm Q2 consol EBITDA INR 1.42 bln vs INR 720 mln qtr ago 
--One97 Comm: Merchant device subscribers 13.70 mln on Sept 30 
--One 97 Comm Q2 marketing svcs revenue INR 2.28 bln vs INR 2.47 bln qtr ago
--One97 Comm cash balance INR 130.68 bln on Sept 30 vs INR 99.99 bln yr ago

 

By Krity Ambey

 

NEW DELHI – The government's ban on online money games weighed on One 97 Communications Ltd.'s net profit for the September quarter as the company suffered an impairment loss against loan to its online gaming joint venture First Games Technology Pvt. Ltd. The company's bottom line fell in the reporting quarter despite healthy growth in revenue from operations.  

 

The Paytm parent's consolidated net profit for the September quarter dropped 83% on quarter to INR 210 million. An on-year comparison of net profit would be skewed, as One 97 Communications' profit had inflated to INR 9.28 billion in Jul-Sept 2024 due to an exceptional gain of INR 13.45 billion from the sale of its ticketing business. The company would have been in the red in the year-ago quarter if not for the divestment proceeds.

 

At INR 210 million, the company's net profit for the September quarter was much lower than analysts' expectation of INR 1.50 billion. But if not for the impairment loss, Paytm's net profit would have been INR 2.11 billion, much above the estimate. Paytm incurred a one-time impairment loss of INR 1.90 billion in the September quarter due to its loan to joint venture First Games Technology. 

 

The company beat analysts' expectation of consolidated revenue from operations, which jumped 24% on year to INR 20.61 billion in the September quarter. Brokerages had expected net sales in the reporting quarter to be INR 20.36 billion. Sequentially, the company's revenue from operations was up 7.5%.

 

The momentum in the fintech company's core business continued and improved in Jul–Sept as One 97 Communications witnessed the second consecutive quarter of positive earnings before interest, tax, depreciation, and amortisation since its listing on bourses in 2021. Its EBITDA nearly doubled to INR 1.42 billion from INR 720 million in the trailing quarter.

 

The company ended the quarter with a cash balance of INR 130.68 billion, up nearly 31% on year. 

 

The company's focus areas to sustain growth are payments and distribution of financial services. Its income from payment services rose 21% on year and 10% on quarter to INR 11.46 billion in Jul-Sept, and that from financial services nearly doubled to INR 6.11 billion from INR 3.76 billion a year ago. Marketing services sales, on the other hand, fell to INR 2.28 billion from INR 2.47 billion in the June quarter and INR 3.02 billion a year ago.

 

The company's contribution margin improved to 59% in Jul-Sept from 54% in the corresponding quarter a year ago due to improved net payment revenue, higher share of distribution of financial services revenue, and a reduction in direct expenses. However, the contribution margin was lower than 60% in the trailing quarter. One 97 Communications has estimated a contribution margin of 55% to 60% for the year. The company added around 700,000 merchant subscribers in Jul-Sept, taking the base to 13.70 million as of Sept. 30.

 

After the Reserve Bank of India's in-principle approval to One 97 Communications' wholly-owned subsidiary Paytm Payments Services Ltd. for an online payment aggregator licence, the parent firm has decided to invest INR 22.50 billion into the arm through a rights issue.

 

Paytm's net profit for the first six months of the financial year was INR 1.44 billion, up 62% on year. Revenue from operations for the period was up 26% at INR 39.79 billion. The company released its financial results after market hours on Tuesday. Its shares closed 0.5% lower Tuesday at INR 1,268 on the National Stock Exchange on Tuesday. Equity markets are closed on Wednesday.  End

 

Edited by Avishek Dutta

 

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