Latest news with #One97Communications
Mint
15 hours ago
- Business
- Mint
One97 Communications shares drop nearly 3 pc post Q1 earnings announcement
New Delhi, Jul 23 (PTI) Shares of fintech firm One97 Communications, which owns the Paytm brand, declined nearly 3 per cent on Wednesday morning trade largely due to profit-taking in the counter. The stock dropped 2.62 per cent to ₹ 1,025 on the BSE. At the NSE, it went lower by 2.46 per cent to ₹ 1,025.10. One97 Communications on Tuesday reported its first-ever consolidated net profit at ₹ 122.5 crore in the quarter ended June 2025, mainly on account of cost optimisation and an increase in payment revenue. Paytm had posted a net loss of ₹ 840 crore in the year-ago period. "Q1 results of Eternal and Paytm indicate steady growth potential of the digital stocks which have a long runway of growth," VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said. "EBITDA and PAT turned profitable at ₹ 72 crore and ₹ 123 crore respectively, demonstrating AI-led operating leverage, disciplined cost structure and higher other income," Paytm said in a statement. Paytm Founder and CEO Vijay Shekhar Sharma said that the company has filtered out words related to adjustments under various heads. "This is the first quarter where we have pruned out every word which included EBITDA (operational profit) before ESOP, PAT (profit after tax) before ESOP or anything before ESOP. Next quarter onward, we will stop giving the ESOP line. It will be only employee cost. We are maturing towards absolute complete employee cost, including EBITDA or PAT, where the ESOP cost is the cost of the management. No more adjusting anything," he said. Paytm earlier issued profitability targets after complex adjustments.
Time of India
16 hours ago
- Business
- Time of India
Paytm share price today: One 97 Communications stock up over 3%; fintech platform posts Rs 122 crore profit
The 28% year-on-year operational revenue growth was attributed to increased subscription-based merchants. Paytm share price today: One 97 Communications, Paytm's parent firm, saw its stock price increase by 3.5% on Wednesday, reaching a new 52-week peak of Rs 1,090 on BSE. The share price rise comes on the back of the company achieving a significant milestone by reporting a consolidated net profit of Rs 122.5 crore in Q1FY26, contrasting with its Rs 839 crore loss during the same period last year. The company's operational revenue showed substantial growth, increasing by 28% year-on-year to Rs 1,917 crore from Rs 1,502 crore in Q1FY25. The sequential growth remained modest at 0.3% compared to Rs 1,911 crore in Q4FY25, during which the company recorded a net loss of Rs 540 crore, according to an ET report. The 28% year-on-year operational revenue growth was attributed to increased subscription-based merchants, enhanced Gross Merchandise Value (GMV), and expanded revenue from financial services distribution. The contribution profit demonstrated strong performance with a 52% year-on-year increase to Rs 1,151 crore. The contribution margin reached 60%, showing a 10 percentage point improvement, primarily due to enhanced net payment revenue, increased financial services revenue share, and reduced direct expenses. The company achieved profitability with EBITDA at Rs 72 crore (4% margin) and PAT at Rs 123 crore. This positive performance was attributed to AI-driven operating efficiency, structured cost management, and increased other income, as stated in the company's filing. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 15 most beautiful women in the world Undo The organisation maintained a robust cash position of Rs 12,872 crore, providing financial flexibility to enhance merchant payment services, expand financial services distribution, and advance AI-driven innovations. Payment revenue showed a significant increase of 38% year-over-year, reaching Rs 529 crore, attributed to expanding premium subscription merchants and enhanced payment processing margins. Financial services distribution revenue doubled year-over-year to Rs 561 crore, supported by expanded merchant lending activities, increased trail revenue from Default Loss Guarantee (DLG) portfolio, and superior collection efficiency. The company, under Vijay Shekhar Sharma's leadership, stated its "undisputed leadership" in the merchant payments sector during the quarter, with 1.30 crore merchant device subscriptions spanning across MSMEs and enterprise payment merchants. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Mint
16 hours ago
- Business
- Mint
Paytm share price drops 3.5% after hitting 52-week high. Should you buy, sell or hold after Q1 profit?
Shares of Paytm parent company One97 Communications reversed gains as it declined over 3.51 per cent after hitting a 52-week high in Wednesday's early morning session following the announcement of the Q1 results for fiscal year 2025-26 (FY26) a day ago. Paytm share price opened at fresh high of ₹ 1,090 apiece today. However, it declined quickly to ₹ 1,039, giving up early gains. On Tuesday, One97 Communications share price rose 3.5 per cent to close at ₹ 1,053.10. The stock has gained over 5 per cent in past five trading sessions and nearly 19 per cent in a month. The company posted a consolidated net profit of ₹ 122.5 crore in Q1FY26, a significant improvement from a net loss of ₹ 839 crore in the same period last year. Its operating revenue climbed 28% year-on-year to ₹ 1,917 crore, up from ₹ 1,502 crore in Q1FY25. On a quarter-on-quarter basis, revenue growth was modest at 0.3%, compared to ₹ 1,911 crore in Q4FY25, when the firm had recorded a net loss of ₹ 540 crore. The revenue boost was driven by a rise in subscription-based merchants, increased Gross Merchandise Value (GMV), and higher income from financial services distribution. The company reported a turnaround in its financials, with EBITDA reaching ₹ 72 crore (a 4% margin) and profit after tax (PAT) at ₹ 123 crore. This improvement was attributed to AI-driven operational efficiencies, a disciplined approach to cost management, and increased other income, according to the company's filing. 'In Q1 FY26, Paytm delivered a steady performance, turning profitable across key financial metrics and reinforcing its leadership in India's digital payment ecosystem. Operating revenue grew 28% YoY to Rs.1,918 crore, driven by a surge in merchant subscriptions, rising Gross Merchandise Value (GMV) of Rs.5.4 lakh crore (+27% YoY), and a 100% YoY increase in financial services distribution revenue to Rs. 561 crore. The company's contribution profit surged 52% YoY to Rs.1,151 crore with a robust contribution margin of 60%, reflecting improved net payment revenue, a favorable shift towards non-default loss guarantee (non-DLG) loan disbursements, and tighter control on direct expenses. EBITDA turned positive at Rs.72 crore, and PAT came in at Rs.123 crore, aided by improved operational leverage and higher other income,' said Seema Srivastava, Senior Research Analyst at SMC Global Securities. Srivastava further added, ' Moreover, net payment revenue rose 38% YoY to ₹ 529 crore, and merchant device subscriptions reached an all-time high of 1.30 crore. Strategic cost rationalization was evident, with indirect expenses (ex-ESOP) down 19% YoY and ESOP costs slashed 88% YoY due to voluntary surrenders. Despite a decline in marketing service revenue ( ₹ 247 crore, -23% YoY), the company continued to optimize ad targeting using AI. The quarter also highlighted strong adoption of AI across operations from fraud detection to personalized product offerings. With ₹ 12,872 crore in cash reserves and reduced ESOP and D&A burdens, Paytm is well-positioned for sustained profitability. Its AI-driven, full-stack merchant ecosystem and increased focus on non-DLG lending mark a strategic pivot toward high-margin, scalable revenue streams.' Brokerage firm Motilal Oswal has reiterated its 'neutral' rating on the Paytm stock, with a target price of ₹ 1,025. 'We maintain our contribution profit estimates and project Paytm to turn EBITDA positive by FY26. We value PAYTM at ₹ 1,025 based on 21x FY27E EBITDA, which corresponds to 6.8x FY27E sales. We reiterate our NEUTRAL rating on the stock,' the brokerage firm said in a note. Meanwhile, global brokerage firm Jefferies has upgraded the Paytm stock to 'buy' from earlier rating of 'hold', along with raising the target price to ₹ 1,250 from ₹ 900 earlier after the Q1 results. Jefferies is of the view that although the sequential growth in Monthly Transacting Users (MTU) and Gross Merchandise Value (GMV) is promising, contribution margins are likely to settle at slightly lower levels over the next two to three quarters.
Business Standard
16 hours ago
- Business
- Business Standard
Paytm Q1 results review: Check post-result strategy for One 97 Communications stock
Paytm Q1 review: One 97 Communications, the parent company of Paytm, shares rose 3.5 per cent in trade, hitting a 52-week high at ₹1,090 per share on BSE. The buying on the counter came after the company reported its Q1 numbers on Tuesday, after market hours. However, at 9:27 AM, Paytm share price pared gains and was trading 0.29 per cent higher at ₹1,055.7 per share on BSE. In comparison, BSE Sensex was up 0.24 per cent at 82,384.99. The market capitalisation of the company stood at ₹67,467.24. Paytm Q1 results The June quarter (Q1FY26) marked a turnaround for Paytm as the company reported the consolidated profit of ₹122.5 crore, against a net loss of ₹838.9 crore in Q1FY25. Paytm had posted a net loss of ₹539.8 crore in Q4FY25. One 97 Communications, the parent company of Paytm, shares rose 3.5 per cent in trade, hitting a 52-week high at ₹1,090 per share on BSE. The buying on the counter came after the company reported its Q1 numbers on Tuesday, after market June quarter (Q1FY26) marked a turnaround for Paytm as the company reported the consolidated profit of ₹122.5 crore, against a net loss of ₹838.9 crore in Q1FY25. Paytm had posted a net loss of ₹539.8 crore in Q4FY25. In Q2FY25, Paytm had reported a profit, but it was due to the sale of its ticketing business to Zomato. Now, Q1FY26 marks the first-ever profit after tax (PAT)-positive quarter for the company, led by normal business operations. ALSO READ: Paytm swings into black, makes ₹122.5 crore net profit in Q1 FY26 Additionally, its revenue from operations grew 27.7 per cent to ₹1,917.5 crore in Q1FY26 from ₹1,501.6 crore in Q1FY25. Sequentially, revenue from operations remained stagnant compared to ₹1,911.5 crore in Q4FY25. Analysts view on Paytm shares Analysts believe that while the results were largely in line with expectations, a few more quarters need to be observed to clearly understand the company's growth trajectory. Paytm's results were broadly in line with expectations and largely factored into the stock price, according to Kranthi Bathini, director – equity strategy at WealthMills Securities. He recommended 'holding' Paytm shares while keeping a watch on the profit sustainability and growth trajectory from hereon. Echoing a similar view, Khushi Mistry, research analyst at Bonanza, believes Paytm's Q1 results mark a steady step in its post-disruption recovery, driven by sustained merchant activity and platform resilience. 'In Q1, Merchant payment metrics have rebounded, and consumer metrics remain stable. The business continues to suffer from recent operational disruptions and regulatory changes, but management expects improvement in subsequent quarters as merchant activity recovers,' said Mistry. ALSO READ | Dixon Tech Q1 beats estimates; analysts upbeat on mobile gains, JV strategy The number of registered merchants with Paytm grew 11 per cent on a year-on-year (Y-o-Y) basis to 45 million in Q1FY26 from 41 million in Q1FY25. Sequentially, this count grew 3 per cent from 44 million in Q4FY25. The company reported an all-time high of 13 million merchant subscriptions, including payment acceptance devices, in Q1FY26. This number has grown from 10.9 million in Q1FY25 and 12.4 million in Q4FY25. Brokerages view on Paytm Macquaire iterated 'Underperform' with a target of ₹760 per share, according to reports. The brokerage said that there are potential levers for earnings upside going forward for the company, even as personal loan disbursements remain muted. On the flipside, Jefferies upgraded its rating from 'Hold' to 'Buy' and raised the target to ₹1,250 per share from ₹900, according to reports. The global brokerage reckons that while the Monthly Transacting Users (MTU) and Gross Merchandise Value (GMV) growth on a sequential basis is encouraging, contributing margins will stabilise a little lower over the next two to three quarters. Citi also increased its target to ₹1,215 per share from ₹915, maintaining 'Buy' rating. According to reports, Citi cited that the earnings beat was driven largely by incremental cost efficiencies and higher-than-expected benefits from the relatively upfront nature of non-DLG contribution profits. Domestic brokerage, JM Financial Institutional Equities has continued with a 'Buy', raising the target to ₹1,320 per share from ₹1,230 per share. The brokerage noted that with robust topline growth at key commerce merchants and controlled indirect expenses, Paytm is likely to witness a sharp improvement in profitability, with PAT estimated to reach ₹1,450 crore by FY27. The brokerage finds Paytm attractively positioned, citing its strong operating performance and multiple growth drivers, including the introduction of MDR on UPI transactions and the comeback of the Paytm wallet.
India Today
17 hours ago
- Business
- India Today
Paytm posts Rs 123 crore profit in Q1: Is it a good time to buy the stock?
One97 Communications, the parent company of Paytm, reported a net profit of nearly Rs 123 crore for the quarter ended June 2025. This marks its first-ever quarterly profit across all major financial metrics, a significant milestone for the fintech player that has spent years trying to prove its business company's EBITDA stood at Rs 72 crore for the quarter, underlining a clear shift in the operating trajectory. The stock, however, slipped 1.60% to Rs 1,034.20 in early trade on the Bombay Stock Exchange, possibly due to profit-booking after a strong rally in recent the dip, brokerage houses are seeing long-term value. Brokerage firm JM Financial has maintained a 'Buy' rating on Paytm, with a target price of Rs 1,320 by June 2026. In its latest note, analyst Sachin Dixit highlighted that the company reported Rs 1,920 crore in revenue—a 4% increase over the previous quarter—along with a sharp rise in contribution margin to 60%, up 560 basis points to JM Financial, this margin expansion and improved operating leverage enabled Paytm to deliver its first-ever reported EBITDA and PAT profitability in the same quarter — a feat it believes signals a new phase of business maturity. The management's revised guidance of maintaining a mid-to-high 50s contribution margin (higher than earlier estimates of 54–56%) has further boosted Financial expects Paytm's profitability to scale sharply over the next two years, forecasting a net profit of Rs 1,450 crore by FY27, driven by high-margin financial services and monetisation opportunities like merchant discount rate (MDR) on UPI and a potential comeback of the Paytm Wallet. The brokerage values the stock at 40 times its projected FY27 adjusted EBITDA, reaffirming a bullish long-term to the results: the company said its turnaround has been powered by AI-led operational efficiencies, a rising share of financial services, and tighter control on from operations grew 28% year-on-year to Rs 1,918 crore, driven by a surge in subscription-paying merchants, stronger payment processing margins, and a steep rise in income from lending and credit-related services. Contribution profit jumped 52% year-on-year to Rs 1,151 crore, while contribution margin rose 10 percentage points to 60%, reflecting a healthier revenue payment revenue rose 38% to Rs 529 crore, aided by higher adoption of device-based payment subscriptions. Financial services revenue, on the other hand, doubled to Rs 561 crore, thanks to rising merchant loan volumes, stronger loan collections, and recurring trail income from its Default Loss Guarantee (DLG) now has a merchant base of 1.3 crore, and claims improved productivity of its sales team, along with falling hardware costs, helped it lower capital expenditure even as it expanded its network. The company closed the quarter with a cash reserve of Rs 12,872 crore, which it says provides ample runway for further growth in AI-led services and merchant ahead, Paytm believes the total addressable market is still under-penetrated. It estimates that over 10 crore merchants in India will accept digital payments in the coming years, and 40–50% of them may opt for subscription-based services. Management remains optimistic about sustaining and improving profitability through scale and sharper investors may want to weigh the sustainability of these gains. While the numbers are promising, the competitive landscape remains tough, with UPI still largely zero MDR, RBI regulations constantly evolving, and consumer preferences shifting fast.(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)- Ends
