MUMBAI: One 97 Communications, the parent company of Paytm, has reported a consolidated net profit of Rs 123 crore in the June quarter as against a net loss of Rs 839 crore a year ago, boosted by strong lending business that helped it report Rs 1,918 crore in revenue, up 28%, and a tight leash on expenses.
The year-ago quarter saw the company taking the full impact of the RBI direction, which came into force from mid-February 2024, to shutter its key payments business for not properly following the KYC norms and a host of other failures despite repeated warnings.
Operating revenue for the quarter stood at Rs 1,918 crore, growing 28% on-year and marginally up from Rs 1,911 crore in Q4 of FY25. Total income, which includes other income, rose to Rs 2,159 crore.
Contribution profit (sales revenue minus all variable costs) rose 52% to Rs 1,151 crore, with contribution margin expanding to 60%, up from 50% a year earlier. Total expenses came in at Rs 2,016 crore, 19 percent lower than Rs 2,476 crore in the year-ago period, aided by tighter control over employee and marketing spends.
Net payment revenue rose 38% to Rs 529 crore, driven by an expanding base of high-quality subscription merchants and better payment processing economics, the company said in a statement Tuesday.
Sequentially, the payments revenue remained largely stable. The number of subscription-based merchant devices rose to an all-time high of 1.3 crore in the quarter. Another bottomline booster was reduced capex by optimising device costs and increasing field sales productivity.
The financial services revenue doubled to Rs 561 crore, driven primarily by growth in merchant loans, trail income from legacy portfolios backed by default loss guarantee and improved collection efficiency.
While personal loan disbursals may have softened amid the RBI’s tighter stance on unsecured lending and default loss guarantee structures, merchant lending business continued to grow robustly through partnerships. Compared to Q4FY25, financial services revenue also saw a sequential uptick, reflecting a steady recovery and deeper credit penetration among small businesses.
The company ended the quarter with a cash balance of Rs 12,872 crore, providing capital flexibility to expand merchant payments, distribution of financial services, and AI-led innovations.