Paytm Parent Posts First Core Profit Since IPO in Q1 FY26
One 97 Communications Ltd, the parent company of Paytm, has reported a remarkable turnaround in its financial performance. In the first quarter of the fiscal year 2026 (Q1FY26), the company posted a net profit of Rs 123 crore, marking its first core profit since its initial public offering (IPO) in 2021.
The company's total revenue reached Rs 2,159 crore in Q1 FY26, including other income. This significant revenue growth was driven by a 28% year-on-year increase in operating revenue to Rs 1,918 crore. Notably, net payment revenues climbed by 38% to Rs 529 crore, supported by an expanded base of subscription-based merchant devices.
Paytm's financial services vertical played a pivotal role in this turnaround. The revenue from this segment doubled to Rs 561 crore, primarily due to merchant loans. The company facilitated services for 5.6 lakh financial services customers in Q1. Additionally, the contribution profit surged by 52% to Rs 1,151 crore, with a contribution margin of 60%.
The company's improved performance was also reflected in its expenses, which declined by 19% year-on-year to Rs 2,016 crore. This reduction was largely due to significant cuts in marketing and employee costs. Consequently, Paytm reported an Ebitda of Rs 72 crore in Q1, turning around from Ebitda losses in the prior two quarters.
One 97 Communications Ltd's Q1FY26 results demonstrate a strong recovery, with the company posting its first core profit since its IPO. This turnaround was driven by increased revenue, a surge in contribution profit, and a significant reduction in expenses. The company's financial services vertical, in particular, showed robust growth, with revenue doubling and the customer base expanding.
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