One 97 Communications, the parent company of Paytm, reported strong financial results for Q2 FY26, with revenue increasing by 24% YoY to ₹2,061 Cr. EBITDA improved significantly to ₹142 Cr, representing a 7% margin. The company continues to focus on AI-led opportunities and improvements to profitability. PAT improved to ₹211 Cr before one-time charges.
Financial Performance Highlights
For the second quarter of fiscal year 2026, One 97 Communications showcased substantial growth and improvements across key financial metrics:
- Operating Revenue: Increased by 24% YoY to ₹2,061 Cr.
- Contribution Profit: Rose by 35% YoY to ₹1,207 Cr, with a 59% contribution margin.
- EBITDA: Improved to ₹142 Cr, yielding a 7% margin.
- PAT: Improved to ₹211 Cr before a one-time charge related to an investment impairment. Reported PAT stood at ₹21 Cr.
Business Growth Drivers
The company’s performance was driven by several key factors:
- Increase in subscription merchants.
- Higher payments GMV (Gross Merchandise Value).
- Growth in the distribution of financial services.
Key Business Segments
The company experienced notable growth in its various business segments:
- Net Payment Revenue: Up by 28% YoY.
- Financial Services Revenue: Increased by 63% YoY.
- Merchant Subscriptions: Reached 1.37 Cr.
Focus on Innovation and Expansion
One 97 Communications is focused on several key areas to drive future growth:
- Leading enterprise and MSME merchant payments.
- Expanding the distribution of financial services.
- Enhancing UPI payment consumer acquisition through AI.
- Exploring international expansion opportunities.
Consistent User Growth
Paytm continues to see growth in its user base:
- Monthly Transacting Users (MTU): Reached an average of 7.5 Cr in Q2 FY26.
Source: BSE