One 97 Communications Reports Strong Profitability in Q1 FY 2027, Driven by Accelerated Monetization and AI Leverage

One 97 Communications Reports Strong Profitability in Q1 FY 2027, Driven by Accelerated Monetization and AI Leverage​

One 97 Communications Limited reported substantial growth and record profitability for the first quarter of Fiscal Year 2027 (Q1 FY 2027), marked by a significant surge in EBITDA. The company stated that its performance was driven by accelerated growth across Payments and Financial Services for both Merchant and Consumer businesses, underpinned by the expansion of its ecosystem and AI-led operational efficiency.

The Earnings Release highlighted that revenue stood at ₹2,448 Cr, achieving 28% year-on-year (YoY) growth and 8% quarter-on-quarter (QoQ) growth. The most striking financial metric was EBITDA, which reached ₹203 Cr, representing a 182% increase YoY and a 54% increase QoQ.

Four Engines Fueling Growth​

The company attributed its robust results to four core growth engines: merchant payments expansion, high-margin merchant loan distribution, accelerating consumer payments business, and tailwinds in consumer monetization.

Merchant Payments:
GMV (Gross Merchandise Value) for the merchant payments segment accelerated to 31% YoY in Q1 FY 2027, up from 27% YoY in Q4 FY 2026. The payment processing margin structurally improved to comfortably above 4 basis points (bps), attributed to increased profitable MDR-bearing instruments like credit cards on UPI and the growth of Postpaid services. Furthermore, soundbox devices were deployed at 1.57 Cr storefronts in India, with a net addition of 27 lakh devices YoY.

Financial Services Distribution:
The distribution of financial services posted revenue of ₹814 Cr, representing a 45% increase YoY. This segment saw active customers grow by 34% (2 lakh YoY), with over 50% of merchant loan disbursements made to repeat borrowers. The company continued its focus on the merchant base, leveraging AI-led lifecycle management for risk insights and collections efficiency in the merchant loan distribution business.

Consumer Payments:
The consumer payments sector saw MTU (Monthly Transacting Users) expand by 60 lakh YoY to 8 Cr. Consumer payments experienced acceleration in both GMV and revenue growth due to market share gains, while the industry UPI growth stood at 20%.

Monetization:
Consumer monetization proved to be a powerful new revenue engine, driven by the distribution of Postpaid services, personal loans, and wealth products. AI-led personalization has been used to drive higher engagement and revenue per active customer across equity broking, MTF (Margin Trade Funding), and other wealth offerings.

Operational Efficiency Through AI Integration​

The Earnings Release detailed how AI is serving as a multiplier across various workflows, accelerating inbuilt operating leverage. The data presented showed effective cost management despite continued platform investment.

A summary of the company's expenses for Q1 FY 2027 (Quarter ending in ₹ Cr) was:


Costs related to building the platform showed a marginal decline (3%) YoY, driven by significant AI-led optimization, while software and cloud expenses reduced 5% YoY, supported by improved commercials and efficiencies.

Financial Health and International Expansion​

The company reported a strong cash balance of ₹13,529 Cr for the quarter ending June 2026, an increase of ₹657 Cr YoY (excluding PML customer funds and Escrow/Nodal Account balances). Depreciation and Amortization (D&A) was recorded at ₹131 Cr in Q1 FY 2027, a reduction of 21% YoY, largely due to the reduced cost of devices.

In terms of international expansion, a wholly-owned step-down subsidiary, Paytm Europe Payments S.A., secured a Payment Institution License from Luxembourg's Commission de Surveillance du Secteur Financier (CSSF). Furthermore, Paytm entered into a partnership with Flip in Indonesia, providing device hardware and technology to Flip’s subsidiary DTK, which holds a PJP1 licence for merchant acquiring in Indonesia.

The company affirmed that it remains calibrated to achieve profitable growth without relying on government subsidies such as UPI or PIDF incentives.

PAYTM Stock Price Movement​

On Monday, shares of One 97 Communications Limited edged higher in the market, settling at ₹1348.5, which represented a gain of 0.04%. The equity traded with a volume of 2.40 million shares during the session.