One 97 Communications Ltd: A Financial Turnaround

In a remarkable turnaround, One 97 Communications Ltd, the parent company of the widely recognized brand Paytm, has reported a significant shift in its financial performance for the first quarter of the fiscal year 2026. On July 22, 2025, the company disclosed its quarterly results, revealing a consolidated profit of ₹122.5 crore, a stark contrast to the net loss reported in the same quarter of the previous year. This positive outcome has sparked interest among investors and analysts alike, as it marks a pivotal moment for the company.

The earnings per share (EPS) for the quarter ending June 30, 2025, stood at ₹1.92, a substantial improvement from the -₹13.00 per share recorded in the corresponding quarter of the previous year. This turnaround is not just a reflection of improved profitability but also an indication of the company’s strategic initiatives bearing fruit.

Emkay Global Financial, in its research report, highlighted that One 97 Communications’ Q1FY26 revenue aligned with market expectations, while profitability significantly exceeded forecasts. The contribution margin saw a notable increase of 400 basis points quarter-over-quarter, reaching 60%. This improvement in margins underscores the company’s enhanced operational efficiency and cost management strategies.

Despite the positive financial results, Paytm’s shares experienced a 2% decline on July 23, 2025. This drop occurred even as the company swung into the black, reporting a net profit of ₹123 crore for the quarter. The market’s reaction suggests a complex interplay of factors influencing investor sentiment, including broader market dynamics and perhaps expectations of future growth trajectories.

The company’s market capitalization stands at ₹637.91 billion, with a close price of ₹1,051.05 on July 21, 2025. Over the past year, the stock has seen significant volatility, with a 52-week high of ₹1,062.95 and a low of ₹448.55. The price-to-earnings ratio remains negative at -95.85, reflecting the company’s recent transition from loss to profit.

One 97 Communications Ltd, headquartered in Noida, India, operates in the financial sector, offering a wide array of services through its Paytm platform. These services include digital payments, bill payments, online payment gateways, and financial services such as credit distribution, insurance, mutual funds, and equity broking. The company’s offerings cater to diverse customer needs, facilitating transactions and access to financial services.

As the company navigates its post-turnaround phase, investors and market watchers will be keenly observing its strategies to sustain profitability and drive growth. The recent financial results have set a positive tone, but the true test will be in maintaining this momentum in the face of competitive pressures and evolving market conditions.