Paytm Q1 Results: Fintech major One97 Communications posts Rs 122.5 crore net profit, revenue up 28% YoY

Paytm parent One97 Communications Ltd reported a consolidated net profit of Rs 123 crore for the June quarter (Q1 FY26), marking a turnaround from a net loss of Rs 839 crore in the same period last year.

Contribution profit was at Rs 1,151 crore, an increase of 52 per cent year-on-year, and contribution margin was at 60 per cent, led by better net payment margins, a higher percentage of revenue from financial services distribution, and reduced direct costs. Revenue from operations grew 27.7 per cent YoY at Rs 1,918 crore, led by growth in subscription merchants, increased GMV, and better traction in financial services.

Higher other income drives net gain

The profit was aided largely by a sharp increase in other income, which rose 74.6 per cent year-on-year to Rs 241 crore from Rs 138 crore. However, core operational efficiency also improved considerably, with the company moving into the green at the EBITDA level.

EBITDA Margin

Paytm reported EBITDA of Rs 71.5 crore, a strong reversal from an EBITDA loss of Rs 793 crore in Q1FY25. The EBITDA margin stood at 3.7 per cent, underlining management efforts toward cost control and monetisation.

Revenue

Total revenue rose 27.7 per cent year-on-year to Rs 1,917.5 crore, reflecting continued growth in payments, merchant services, and financial products. The company’s lending and device business continued to scale up, contributing to the topline.

Stock up 19% in one month

Tuesday’s rally extended Paytm’s winning streak to three sessions. The stock has now climbed over 19 per cent in the last one month, gaining investor confidence ahead of the earnings print. However, at current levels, the stock still trades at a 50 per cent discount to its IPO price of Rs 2,150.

Analysts divided on valuation

Out of 19 analysts tracking the stock, nine have a ‘Buy’ rating, seven suggest a ‘Hold’, while three recommend a ‘Sell’. While profitability marks a key milestone, concerns remain around the sustainability of other income and regulatory clarity post-RBI’s crackdown earlier this year.