Paytm shares in focus as Co swings to Rs 122 crore profit in Q1 from YoY loss
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Shares of One 97 Communications, the parent company of fintech platform Paytm , will be in focus on Wednesday after the firm reported a consolidated net profit of Rs 122.5 crore in Q1FY26, marking a turnaround from a loss of Rs 839 crore in the same quarter last year.Revenue from operations rose 28% year-on-year (YoY) to Rs 1,917 crore, up from Rs 1,502 crore in Q1FY25. On a sequential basis, topline growth was marginal at 0.3%, compared to Rs 1,911 crore in Q4FY25, when the company had posted a net loss of Rs 540 crore.Operating revenue grew 28% YoY, supported by an increase in subscription-based merchants, higher Gross Merchandise Value (GMV), and growth in revenue from financial services distribution.Contribution profit rose 52% YoY to Rs 1,151 crore, with a contribution margin of 60%—a 10 percentage point improvement—driven by better net payment revenue, a greater share of financial services revenue, and lower direct expenses.Company's contribution profit stood at Rs 1,151 crore, up 52% YoY, with a contribution margin of 60% (up 10 percentage points YoY), driven by improved net payment revenue, higher share of distribution of financial services revenue, and reduction in direct expenses.The Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) and PAT turned profitable at Rs 72 crore (margin of 4%) and Rs 123 crore respectively, demonstrating AI-led operating leverage, disciplined cost structure and higher other income, the company filing said.Its Cash balance stood at Rs 12,872 crore, providing capital flexibility to expand merchant payments, distribution of financial services, and AI-led innovations.Net payment revenue was up 38% YoY to Rs 529 crore, led by growth in high-quality subscription merchants and an increase in payment processing margins.Distribution of financial services revenue increased by 100% YoY to Rs 561 crore, driven by growth in merchant loans, trail revenue from Default Loss Guarantee (DLG) portfolio, and improved collection performance.Also Read: 7 Nifty500 stocks with highest dividend yields. Do you own any? The Vijay Shekhar Sharma-led company in a statement claimed that its "undisputed leadership" in merchant payments continued in the quarter under review with 1.30 crore merchant device subscriptions across MSMEs and enterprise payment merchants.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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Economic Times
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