Paytm Share Price Today Down Despite One97 Communications Q1 Profit Jumping 79% to Rs 220 Cr; No Bonus Issue

Paytm Q1 Results: One97 Communications Reports Rs 220 Crore Profit; Revenue Touches Rs 2,448 Crore

One97 Communications delivered another profitable quarter as its core businesses continued to expand. The company reported a consolidated net profit of Rs 220 crore for the June quarter, marking a 79% year-on-year increase from Rs 123 crore reported in the same period last year. Profit also improved sequentially from Rs 183 crore recorded in the March quarter, extending the company's profitability streak.

Revenue from operations also registered robust growth during the quarter. The company posted Rs 2,448 crore in revenue, up 28% from Rs 1,918 crore a year earlier, reflecting higher payment volumes, growth in merchant subscriptions and continued expansion of its financial services distribution business.

Overall income rose to Rs 2,630 crore, while profit before tax (PBT) nearly doubled to Rs 247 crore, highlighting further improvement in operational efficiency.

One97 Communications Q1 Results: EBITDA Jumps to Rs 203 Crore, Margin Improves to 8%

Paytm also reported a sharp improvement in its operating performance during the June quarter. The company's EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) climbed to Rs 203 crore, compared with Rs 72 crore in the corresponding quarter last year. EBITDA margin also expanded to 8%, up from 4% a year ago.

Excluding the impact of the government's Payment Infrastructure Development Fund (PIDF) incentive, comparable EBITDA stood at Rs 195 crore, significantly higher than Rs 18 crore reported in the year-ago quarter. Comparable EBITDA margin improved to 8% from 1%, indicating stronger underlying operating performance.

Similarly, comparable profit after tax (PAT), excluding the PIDF benefit, rose to Rs 212 crore, registering more than a three-fold increase over the corresponding period last year.

Paytm Bonus Issue: No Bonus Share Issue for Now

Apart from the quarterly earnings, investors were also awaiting clarity on the proposed bonus share issue.

After reviewing the proposal, the Board decided not to move ahead with the bonus issue at this stage. The company said its immediate priority remains accelerating business growth and improving long-term profitability. According to the Board, reinvesting in the business is currently a better strategy for creating sustainable value for shareholders than issuing bonus shares.

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