Q1 2026 One 97 Communications Ltd Earnings Call Transcript
Key Points
- One97 Communications Ltd (BOM:543396) reported a significant improvement in contribution margin, reaching 60% compared to 50% in the same quarter last year.
- The company has achieved positive EBITDA margins and is focusing on maintaining high contribution margins while controlling indirect expenses.
- Merchant lending has shown strong performance, with significant growth in both revenue and disbursals.
- The company has successfully increased its market share in the POS segment, with a focus on owning both the customer and the machine.
- One97 Communications Ltd (BOM:543396) has been able to implement price increases for its products due to superior hardware and software offerings, indicating strong customer satisfaction and product differentiation.
- There is limited room for further cost-cutting without impacting revenue growth, as the company is focusing on long-term growth investments.
- The personal loan segment has not shown significant recovery, with growth remaining linear and no substantial improvement in the mix between personal and merchant loans.
- The company has faced challenges in providing detailed disclosures on its lending book, leading to potential misunderstandings about its role as a distributor rather than a lender.
- Marketing services revenue has decreased sequentially, despite an increase in monthly transacting users, indicating potential challenges in monetizing the user base.
- The non-UPI GTV contribution to overall GDP has been declining, and while there is growth in the Rupay credit card business, it is not expected to outpace UPI growth.
Thank you for joining, and welcome to Paytm's earnings call to discuss our financial results for the quarter ending June 30, 2025. We will start our call with Q&A after introduction to the management. From Paytm's management, we have with us Mr. Vijay Shekhar Sharma, Founder and CEO; Mr. Madhur Deora, President and Group CFO; and Mr. Anuj Mittal, SVP, Investor Relations.
A few under announcements before we begin. The information to be presented and discussed here should not be recorded, reproduced or distributed in any manner. Some statements made today may be forward-looking in nature. Actual events may differ materially from those anticipated in such forward-looking statements.
Finally, the earnings call is scheduled for 45-minutes. A replay of this earnings call and transcript will be made available on the company's website subsequently. We will start our Q&A now.
Questions & Answers
(Operator Instructions) Mr. Sachin Salgaonkar.
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