Paytm Share Price Update: One 97 Communications Stock Sees Gains
One 97 Communications, the parent company of Paytm, has achieved a remarkable turnaround, reporting a consolidated net profit of Rs 122.5 crore for the first quarter of FY26. This marks a significant improvement from a loss of Rs 839 crore during the same period last year. The company’s share price surged by 3.5% on Wednesday, reaching a new 52-week high of Rs 1,090 on the Bombay Stock Exchange, driven by a 28% year-on-year growth in operational revenue.
Strong Revenue Growth
Paytm’s operational revenue climbed to Rs 1,917 crore in Q1FY26, up from Rs 1,502 crore in the same quarter last year. This impressive growth of 28% year-on-year was primarily fueled by an increase in subscription-based merchants, a rise in Gross Merchandise Value (GMV), and enhanced revenue from financial services distribution. However, the sequential growth was modest, with a slight increase of 0.3% compared to Rs 1,911 crore in Q4FY25, when the company reported a net loss of Rs 540 crore. The substantial year-on-year revenue growth reflects Paytm’s successful strategies in expanding its merchant base and improving service offerings.
Profitability and Contribution Margin
The company’s contribution profit also showed a robust performance, increasing by 52% year-on-year to Rs 1,151 crore. The contribution margin improved to 60%, a 10 percentage point rise, largely due to better net payment revenue, a higher share of financial services revenue, and reduced direct expenses. Paytm achieved profitability with an EBITDA of Rs 72 crore, translating to a 4% margin, and a profit after tax (PAT) of Rs 123 crore. This positive financial performance has been attributed to enhanced operational efficiency driven by artificial intelligence, effective cost management, and increased other income, as detailed in the company’s financial filings.
Cash Position and Future Prospects
Paytm maintains a strong cash position of Rs 12,872 crore, which provides the company with the financial flexibility to enhance its merchant payment services, expand its financial services distribution, and invest in AI-driven innovations. The payment revenue experienced a notable increase of 38% year-on-year, reaching Rs 529 crore, thanks to the growth in premium subscription merchants and improved payment processing margins. Additionally, revenue from financial services distribution doubled year-on-year to Rs 561 crore, supported by expanded merchant lending activities and improved collection efficiency.
Leadership in Merchant Payments
Under the leadership of Vijay Shekhar Sharma, Paytm has asserted its “undisputed leadership” in the merchant payments sector. The company reported 1.30 crore subscriptions for merchant devices, catering to both micro, small, and medium enterprises (MSMEs) and larger enterprise payment merchants. This growth in subscriptions underscores Paytm’s commitment to enhancing its service offerings and solidifying its position in the competitive payments landscape.
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