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Informist, Tuesday, Jul. 21, 2026

 

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--One 97 Comm: Don't expect material change from UPI monetisation 
--CONTEXT: Comments by One 97 Comm's mgmt in post-earnings analyst concall 
--One 97 Comm: Seeing accelaration in large, small merchants offline 
--One 97 Comm: Expect indirect expenses to grow a lot slower than revenue 
--One 97 Comm: Expect to continue improving EBITDA profitability 
 

 

By Pratiksha and Meera Nair

 

NEW DELHI – One 97 Communications Ltd.'s top management is seeing a significant upside in the consumer financial services business segment, it said in a post-earnings analyst conference call on Tuesday. "Until about six months ago, we were seeing headwinds in the personal loan business," the management said. "So, now that these things are starting to turn around, we are starting to see a significant upside on the consumer side," it added.

 

The call was attended by One 97 Communications Chief Executive Officer Vijay Shekhar Sharma and Chief Financial Officer Madhur Deora. The company said that its consumer payments business is growing more than two times the industry growth. 

 

The fintech company's net profit for the June quarter rose sharply on year to INR 2.20 billion. Its revenue from operations jumped almost 28% on year to INR 24.48 billion in the June quarter. Revenue from payments services, the largest contributor to total revenue, rose 33% on year to INR 13.84 billion in the reporting quarter.

 

Further, the management said that it was on a 'wait and watch' mode regarding the details of the government's potential re-introduction of merchant discount rate on Unified Payment Interface transactions. 

 

"We don't have any clue of actually the number that it (merchant discount rate) could be or not, and what kind of line item it could be paid for, so we are trying to model it in ourselves based on various other newspaper in the corridor," it said. "There's no materiality to it as a discussion, when you don't know what the formula is."

 

The government is considering bringing back a small merchant discount rate in UPI transactions for large retailers, as per media reports. The management, however, added that the monetisation of UPI will not materially change things for them. 

 

Further, One 97 Communications's top management expects to continue improving profitability of earnings before interest, tax, depreciation, and amortisation margin. In Apr-Jun, the company's consolidated EBITDA rose to INR 2.03 billion, up 182% year on year. The consolidated EBITDA margin rose to 8% from 4% a year ago.

 

 

The company said in a press release that it has better visibility to achieve 15-20?ITDA margin due to accelerating top-line growth and the opportunity for AI to drive operating leverage faster, as well as set higher margin targets for the long term. Talking about this guidance, the management said," I think at the core of it, why we're saying this is (due to) the revenue growth acceleration and the fact that indirect expenses are going significantly slower than revenue growth." 

 

The management said that it was seeing an acceleration in each of its offline business segment, ranging from large merchants to small merchants. On Tuesday, shares of One 97 Communications closed 3.5% lower at INR 1,300.50 on the National Stock Exchange.  End

 

Edited by Akul Nishant Akhoury

 

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