One 97 Communications (Paytm) Reports Second Consecutive Quarterly Profit with Strong Revenue Growth

Tech

Updated on 04 Nov 2025, 05:46 pm

Reviewed By

Satyam Jha | Whalesbook News Team

Short Description :

One 97 Communications, the owner of the Paytm brand, has announced its second consecutive quarter of profit, posting Rs 211 crore Profit After Tax (PAT) for the September 2025 quarter. Revenue surged by 24% year-on-year to Rs 2,061 crore, driven by its payments and financial services businesses. The company also saw improvements in EBITDA and contribution profit, indicating a steady path towards sustainable profitability.

One 97 Communications (Paytm) Reports Second Consecutive Quarterly Profit with Strong Revenue Growth

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Stocks Mentioned :

One 97 Communications Limited

Detailed Coverage :

One 97 Communications, the parent company of Paytm, has reported a Profit After Tax (PAT) of Rs 211 crore for the September 2025 quarter, marking its second consecutive profitable quarter. Revenue grew by a significant 24% year-on-year, reaching Rs 2,061 crore.

The growth was primarily fueled by strong performance in its payments and financial services segments. The company's EBITDA improved to Rs 142 crore with a 7% margin, driven by revenue increases and operating leverage. Contribution profit saw a 35% year-on-year rise to Rs 1,207 crore, maintaining a healthy 59% margin. Payment services revenue increased by 25% to Rs 1,223 crore, with Gross Merchandise Value (GMV) climbing 27% to Rs 5.67 lakh crore.

The financial services distribution segment experienced a substantial 63% year-on-year jump in revenue to Rs 611 crore, boosted by merchant loan disbursements. Paytm's merchant network continued to expand, with device subscriptions reaching a record 1.37 crore.

Indirect expenses were reduced by 18% year-on-year, and marketing costs for customer acquisition fell by 42% due to better customer retention and monetization.

Impact: This news indicates One 97 Communications' successful pivot towards profitability, which is crucial for investor confidence and its long-term valuation. The sustained growth in revenue and profit margins suggests operational efficiency and market strength in its core businesses. This positive financial performance can lead to increased investor interest and potentially a rise in its stock price. Rating: 8/10

Difficult Terms Explained: • Profit After Tax (PAT): This is the profit remaining after all taxes have been deducted from a company's total earnings. • EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): A measure of a company's overall financial performance, used as an alternative to net income to provide a measure of a company's operating performance. • Contribution Profit: This is the revenue generated by a product or service minus the variable costs directly associated with producing it. • Gross Merchandise Value (GMV): The total value of merchandise sold over a given period through a marketplace or platform, before deducting fees or commissions.