One97 Communications (PAYTM) Q1 25/26 earnings summary

Executive summary

• Achieved profitability with ₹123 Cr PAT in Q1 FY26, marking a milestone across EBITDA and PAT metrics, with further improvement expected.

• Board approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2025, with no material misstatements identified.

• Leadership in India's merchant payment business solidified, serving MSMEs and enterprises with a full-stack technology platform.

• AI-first approach is being implemented across customer products and internal processes.

• BNPL and wallet products are not yet resumed; recovery in personal credit is key for their return.

Financial highlights

• Consolidated revenue from operations for Q1 FY26 was INR 19,175 million, up from INR 15,016 million year-over-year.

• Contribution margin improved to 60% from 50% year-over-year.

• EBITDA margin turned positive, currently at 4–5% for the first quarter.

• Net income swung to a profit of ₹123 Cr from a loss of ₹840 Cr year-over-year.

• Payment services revenue rose 18% year-over-year to ₹1,044 Cr; distribution of financial services revenue doubled to ₹561 Cr.

Outlook and guidance

• Guidance for contribution margin remains in the high 50s, allowing for quarter-to-quarter fluctuations.

• EBITDA margin target of 15–20% over the next 2–3 years is reaffirmed, with significant improvements expected by year-end.

• Expects continued profitability improvement, with a focus on scalable monetization and customer experience through AI-led processes.

• Nonlinear revenue growth expected from consumer products like BNPL and wallet once market conditions improve.

• Exploring international expansion leveraging technology-led merchant payments and financial services.