One97 Communications reported a 28% jump in operating revenue to Rs 2,648 crore for the September 2026 quarter. Net profit before exceptional items rose 9% to Rs 229 crore, driven by growth in merchant subscriptions and payment volumes. Investors are weighing these gains against a one-time Rs 190 crore loss from a loan write-down in its gaming subsidiary.
One97 Communications, the company behind Paytm, posted a 28% year-on-year increase in operating revenue, reaching Rs 2,648 crore for the quarter ending September 2026. This performance was supported by strong growth in payment volumes and merchant-side financial services. The company reported a net profit of Rs 229 crore before considering exceptional items, marking a 9% improvement over the Rs 211 crore reported in the same quarter last year.
A significant aspect of the results was the company’s focus on merchant subscriptions. Paytm added 27 lakh new Soundbox devices during the quarter, bringing the total cumulative base to 1.64 crore. This segment is critical for investors as it provides a predictable and recurring revenue stream, helping to buffer the business against volatility in transaction-based income. The gross merchandise value (GMV) also grew by 26% to reach Rs 7.1 lakh crore, reflecting the continued adoption of digital payments in the Indian market.
Impact of Non-Operating Losses
While core operations showed growth, the reported financials included a one-time impact of Rs 190 crore. This charge was due to a write-down of a loan previously extended to its real-money gaming subsidiary, First Games Technology. For investors, this event highlights the risks associated with the company’s historical capital allocation in non-core business segments. Although the company remains profitable on a sequential basis—growing from Rs 220 crore in the June quarter—such one-time write-downs can reduce the overall bottom line and affect investor sentiment regarding capital management.
Sector and Regulatory Outlook
The fintech sector in India faces upcoming regulatory changes, particularly regarding UPI Merchant Discount Rates (MDR), which are expected to materialize in late 2026. The MDR represents the fee paid by merchants to payment processors. Management has indicated that these potential policy shifts could impact future payment revenues. For shareholders, the key monitorable will be how the company navigates these regulatory adjustments while maintaining its market share in the competitive digital payment space. Continued expansion in financial service distribution, which contributed Rs 912 crore to the revenue this quarter, will also be a critical factor in maintaining growth momentum in the coming quarters.