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Informist, Saturday, Oct. 24, 2026

 

By Mahima

 

NEW DELHI - One 97 Communications Ltd., the parent company of Paytm, is expected to record strong growth in consolidated net profit, both on year and sequentially, for the September quarter. The earnings will be led by a rise in revenues from payments services and financial services, according to brokerages.

 

One 97 is expected to report a consolidated net profit of INR 2.67 billion for the September quarter, up 27% on year and about 21% on quarter, as per the average of estimates from five brokerages. The highest estimate for net profit is INR 2.78 billion from JM Financial Institutional Securities Pvt. Ltd., while the lowest is INR 2.53 billion from Emkay Global Financial Services Ltd.

 

The financial technology major's consolidated net sales are expected to be around INR 26 billion, up almost 26% on year and 6% sequentially. The highest estimate for net sales is INR 26.33 billion from Motilal Oswal Financial Services and the lowest is INR 25.75 billion from YES Securities (India) Ltd.

 

YES Securities Institutional Equities expects One 97 Communications' payments services revenues to rise 6% on quarter. Revenues from financial services and other verticals are also expected to be up 6% on quarter. The brokerage expects the company's payment processing charges to be 55% of its payments revenues, down from 57.4% in the June quarter. The company's earnings before interest, tax, depreciation, and amortisation margin are expected to be up 143 basis points on quarter to 9.7%.

 

JM Financial expects EBITDA margin expansion of 123 bps on quarter to 9.5% and adjusted EBITDA margin of 12.1%. Sales of merchant subscription devices are expected to rise 18% on year to 16.2 million. The company's revenue from financial services is likely to jump 42.3% on year and 7% on quarter and revenue from payment services is likely to grow 20% on year and 5% on quarter, JM Financial said.

 

The contribution margin is expected to fall 40 bps on quarter to 54.7%. This decline is likely because payment processing charges are growing faster than gross merchandise value, amid a higher share of card payments and normalisation of promotional cashback expenses, the brokerage said. This will raise the contribution profit 17.5% to INR 14.2 billion, the brokerage added.

 

Dolat Capital expects sustained growth across payments and lending to drive the company's growth to 6.6% on quarter. Key monitorables include payment revenues, gross merchandise value momentum, financial services scaling across loans, and wealth offering.

 

Emkay Global expects the growth momentum of the company's financial services revenue to continue on the back of the merchant lending business and scale-up in the postpaid business. The total number of merchant subscription devices is expected to reach 15.7 million with the addition of 800,000 devices, including 600,000 in the previous quarter.

 

As speculation over the merchant discount rate payment on payments made through the Unified Payments Interface continue, most brokerages remain optimistic about the company on MDR front. One 97 Communications will detail its September quarter earnings on Monday, Oct. 26.

 

Friday, shares of the company ended down almost 3% at INR 1,616.10 apiece on the National Stock Exchange. The stock is up over 24% since the company reported its June quarter earnings. Of the 10 brokerage reports on the company available with Informist, nine have a "buy" recommendation on the stock with an average target price of INR 1,747. This implies an 8% upside over the current market price. One brokerage has a "hold" recommendation with a target price of INR 1,475.8.

 

Following are the Jul-Sept earnings estimates for One 97 Communications from five brokerages, in the descending order of estimates of net profit, in INR billion:

 

Brokerage	Net Sales	Net Profit
JM Financial Institutional Securities Ltd.	25.91	2.78
YES Securities (India) Ltd.	25.75	2.74
Motilal Oswal Financial Services Ltd.	26.33	2.73
Dolat Capital Market Pvt. Ltd.	26.09	2.54
Emkay Global Financial Services Ltd.	25.90	2.53
Average	26.00	2.67

 

End

 

Edited by Biswadip Mitra

 

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