MUMBAI: One 97 Communications, the parent company of Paytm, has reported a consolidated net profit of Rs 123 crore in the June quarter as against a net loss of Rs 839 crore a year ago, boosted by strong lending business that helped it report Rs 1,918 crore in revenue, up 28%, and a tight leash on expenses.
The year-ago quarter saw the company taking the full impact of the RBI direction, which came into force from mid-February 2024, to shutter its key payments business for not properly following the KYC norms and a host of other failures despite repeated warnings.
Operating revenue for the quarter stood at Rs 1,918 crore, growing 28% on-year and marginally up from Rs 1,911 crore in Q4 of FY25. Total income, which includes other income, rose to Rs 2,159 crore.
Contribution profit (sales revenue minus all variable costs) rose 52% to Rs 1,151 crore, with contribution margin expanding to 60%, up from 50% a year earlier. Total expenses came in at Rs 2,016 crore, 19 percent lower than Rs 2,476 crore in the year-ago period, aided by tighter control over employee and marketing spends.
Net payment revenue rose 38% to Rs 529 crore, driven by an expanding base of high-quality subscription merchants and better payment processing economics, the company said in a statement Tuesday.