Latest news with #VijayShekharSharma
Mint
7 days 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
7 days 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
22-07-2025
- Business
- Mint
Paytm swings to ₹123 cr Q1 profit, aided by AI-led cost efficiency; rejigs board
Advertisement One97 Communications, Paytm's parent company, on Tuesday reported a net profit of ₹123 crore in the April-June quarter of FY26 (Q1FY26), buoyed by artificial intelligence-led improvements in its cost structure. This sharp turnaround comes after a ₹539.8 crore loss in the three months through March, driven mainly by a one-time exceptional expense of ₹492 crore from accelerated ESOP cost and an additional ₹30 crore in other impairments. Excluding these exceptional items, the adjusted loss had stood at ₹23 crore in Q4FY25. The Noida-based company's first-quarter results, announced in an exchange filing after market hours, mark a significant recovery from an ₹840 crore net loss in the June quarter of the previous fiscal year. Advertisement Shares of the company settled 3.4% higher at ₹1,052.60 apiece on the BSE on Tuesday. The company also reported a positive Ebitda (earnings before interest, taxes, depreciation, and amortization) of ₹72 crore in the quarter. 'This is the first quarter where we've reported pure Ebitda, without adjusting for ESOP costs. Going forward, we'll remove the ESOP line entirely, and report pure employee expenses,' Vijay Shekhar Sharma, Paytm founder and chief executive officer, said during an earnings call on Tuesday. Consolidated revenue from operations in Q1FY26 rose 28% year-on-year to ₹1,918 crore, helped by an increase in merchant subscription and growth in financial services revenue, the company added. Meanwhile, sequentially, the revenue remained almost flat. Advertisement 'Merchant payments, across both small and large online and offline enterprises, will remain a key focus, and we expect a lot of innovation in that area,' said Madhur Deora, president and group chief financial officer. 'While wallet and BNPL (buy now, pay later) are not immediate quarterly priorities, we are actively working on them. We will continue to grow our merchant lending business, while personal loan growth will depend on a broader recovery in the market.' Rahul Jain, director at Dolat Capital, noted that while Paytm has mentioned about focus on these products, no timelines were provided for some new product initiatives. 'Growth for now will be led by merchant payments and merchant loans.' The company also announced a rejig of its board. Deora will step down from the board after the upcoming AGM but will continue in his role as the company's finance head. Advertisement 'Operating responsibilities are far more important for now, especially with our future growth line items, they're all geared towards consistent profitability from the same core businesses, international expansion,' said Sharma. He added that Deora's focus will, hence, shift towards active business decisions and growth opportunities. The board also appointed Urvashi Sahai, currently Paytm's General Counsel, as a Whole-time Director for a five-year term starting 22 July. Independent Director Bimal Julka also resigned, citing a desire to focus on interests in emerging technologies and ease of doing business. Forward looking plans Overall, analysts believe the company has shown recovery across financial metrics. Dolat Capital's Jain said, 'The results were better on all fronts, with strong profitability driven by steady growth, efficient cost management, and improved execution.' Advertisement Paytm earns most of its revenue from payments, financial, and marketing services. Payment services revenue (including other operating revenue) rose 23% YoY to ₹1,110 crore. Net payment revenue increased 38% YoY to ₹529 crore due to a rise in payment processing margin and device additions, the company said. For incremental revenue, while the company had expressed optimism in the last quarter about monetising its UPI services if the government re-introduced the Merchant Discount Rate (MDR), that potential revenue lever for the payments business now appears to be off the table. In June, finance minister Nirmala Sitharaman clarified that no MDR will be levied on transactions via the Unified Payments Interface (UPI), putting to rest earlier industry speculation that large merchants might soon be subject to the charge again. Advertisement This policy clarity may impact Paytm's plans to drive incremental revenue through UPI monetisation. 'We will see what happens as and when we get informed. We are not basing our business on some distant hope of the future. We are committed to continue to drive profitable business even without it,' said Sharma. In October last year, National Payments Corporation of India had allowed Paytm to onboard users on its UPI platform through partner banks, after the RBI barred Paytm Payments Bank from onboarding new customers due to compliance concerns. Revenue from financial services rose to ₹561 crore, up 3% quarter-on-quarter from ₹545 crore. This revenue also doubled year on year from ₹280 crore, led by merchant loan disbursements and improved collections from the default loss guarantee (DLG) portfolio. However, a shift to non-DLG disbursements by its largest lending partner is expected to slow sequential revenue growth even as disbursements rise. Advertisement Under DLG, Paytm gives a guarantee to its lending partners for a portion of the loans it facilitates in case of a default. The overall financial services customer count increased slightly in the quarter to 560,000. 'There is no significant recovery in terms of personal loans, the mix of merchant and personal loans remains the same as of last quarter,' said Deora.
The Print
22-07-2025
- Business
- The Print
Paytm posts first-ever profit of Rs 122.5 crore in Q1 FY26
'EBITDA and PAT turned profitable at Rs 72 crore and Rs 123 crore respectively, demonstrating AI-led operating leverage, disciplined cost structure and higher other income,' Paytm said in a statement. Paytm had posted a net loss of Rs 840 crore in the year-ago period. New Delhi, Jul 22 (PTI) Fintech firm One97 Communications, which owns the Paytm brand, reported its first-ever consolidated net profit at Rs 122.5 crore in the quarter ended June 2025, mainly on account of cost optimisation and an increase in payment revenue. The company slashed marketing and promotional expenses by more than half to Rs 99.8 crore during the reported quarter from Rs 221.4 crore a year ago and Rs 142.7 crore in the March 2025 quarter. Paytm reduced employee benefits by about Rs 300 crore or one-third to about Rs 643 crore from Rs 952.5 crore on a year-over-year basis. While the company increased sales employee cost by 19 per cent on a YoY basis to Rs 266 crore, it recorded a reduction in non-sales employee cost by 28 per cent YoY to Rs 346 crore due to the use of artificial intelligence in various processes across its business. Paytm's average number of sales employees increased by 23 per cent YoY basis to 38,945. The consolidated revenue from operations in the reporting quarter increased by about 28 per cent to Rs 1,917.5 crore from Rs 1,501.6 crore in the June 2024 quarter mainly on account of an increase in payment processing margins. 'In the first quarter of FY'25, payment services revenue (including other operating revenue) was up 23 per cent YoY at Rs 1,110 crore. Net payment revenue was up 38 per cent YoY at Rs 529 crore due to an increase in payment processing margin and device,' the company said. Paytm reported 27 per cent YoY increase in gross merchandise value to Rs 5.39 lakh crore in the reported quarter. The company said that merchant subscriptions were at an all-time high of 1.3 crore, an increase of 21 lakh YoY, on the back of high-quality devices and superior service network as of June 2025. 'To further strengthen tier-1 market position and expand in tier-2 and tier-3 cities, we are investing in expanding our sales network (sales people costs are up 19 per cent YoY),' the statement said. During the reported quarter, Paytm said that average monthly transacting users (MTU) base reached 7.4 crore. The company said that distribution of financial services revenue grew 100 per cent YoY to Rs 561 crore, driven by continued expansion in merchant loans, trail revenue from Default Loss Guarantee (DLG) portfolio, and improvement in asset quality. Paytm reported an 88 per cent decline in ESOP (employee stock ownership plan) costs to Rs 30 crore from Rs 169 crore in the March quarter and Rs 247 crore a year ago. The company had made ESOP cost related adjustments in the March quarter when its CEO Vijay Shekhar Sharma voluntarily surrendered his ESOPs. PTI PRS PRS MR MR This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
India.com
22-07-2025
- Business
- India.com
Good news for Vijay Shekhar Sharma, Paytm's strong comeback, earns Rs 1220000000 in…, how did it achieve this?
Fintech firm One97 Communications, the parent company of Paytm, posted its first-ever consolidated net profit of Rs 122.5 crore for the quarter ended June 2025, driven by cost optimisation measures and higher payment revenue. In comparison, the company had reported a net loss of Rs 840 crore in the same quarter last year. How Paytm Turned Profitable? 'EBITDA and PAT turned profitable at Rs 72 crore and Rs 123 crore respectively, demonstrating AI-led operating leverage, disciplined cost structure and higher other income,' Paytm said in a statement. The company slashed marketing and promotional expenses by more than half to Rs 99.8 crore during the reported quarter from Rs 221.4 crore a year ago and Rs 142.7 crore in the March 2025 quarter. Paytm reduced employee benefits by about Rs 300 crore or one-third to about Rs 643 crore from Rs 952.5 crore on a year-over-year basis. While the company increased sales employee cost by 19 per cent on a YoY basis to Rs 266 crore, it recorded a reduction in non-sales employee cost by 28 per cent YoY to Rs 346 crore due to the use of artificial intelligence in various processes across its business. Paytm's average number of sales employees increased by 23 per cent YoY basis to 38,945. Paytm Q1 Results: Revenue The consolidated revenue from operations in the reporting quarter increased by about 28 per cent to Rs 1,917.5 crore from Rs 1,501.6 crore in the June 2024 quarter mainly on account of an increase in payment processing margins. 'In the first quarter of FY'25, payment services revenue (including other operating revenue) was up 23 per cent YoY at Rs 1,110 crore. Net payment revenue was up 38 per cent YoY at Rs 529 crore due to an increase in payment processing margin and device,' the company said. Paytm reported 27 per cent YoY increase in gross merchandise value to Rs 5.39 lakh crore in the reported quarter. The company said that merchant subscriptions were at an all-time high of 1.3 crore, an increase of 21 lakh YoY, on the back of high-quality devices and superior service network as of June 2025. 'To further strengthen tier-1 market position and expand in tier-2 and tier-3 cities, we are investing in expanding our sales network (sales people costs are up 19 per cent YoY),' the statement said. The company said that distribution of financial services revenue grew 100 per cent YoY to Rs 561 crore, driven by continued expansion in merchant loans, trail revenue from Default Loss Guarantee (DLG) portfolio, and improvement in asset quality. Paytm reported an 88 per cent decline in ESOP (employee stock ownership plan) costs to Rs 30 crore from Rs 169 crore in the March quarter and Rs 247 crore a year ago. The company had made ESOP cost related adjustments in the March quarter when its CEO Vijay Shekhar Sharma voluntarily surrendered his ESOPs. (With Inputs From PTI)
