One 97 Communications Reports Record Profit and Rejects Bonus Shares

One 97 Communications Limited, the parent company of Paytm, reported record financial results for the first quarter of FY2027 ending June 2026. The company achieved its highest-ever quarterly EBITDA of ₹203 crore, a 182% year-on-year increase, and a consolidated net profit of ₹220 crore, up 79% from the previous year. Operating revenue rose 28% to ₹2,448 crore, driven by AI-led operating leverage, lower cloud infrastructure costs, and a 45% surge in financial services distribution revenue.

Despite these gains, the board of directors rejected a proposal for a maiden bonus issue of equity shares on July 20, 2026. The board stated that "prioritising business growth is in the best interest of shareholders" and sought to focus on long-term profitability. Additionally, the board approved an investment of up to ₹100 crore in its subsidiary, Paytm Money, and proposed extending the deadline for utilizing IPO proceeds to March 31, 2029.

Market reactions on July 21 were mixed. Paytm's share price on the BSE fell approximately 3% as investors reacted to the shelved bonus issue, though other reports indicated volatility due to profit booking. Analyst sentiment diverged, with Goldman Sachs and Citi raising target prices to ₹1,500 and ₹1,560 respectively, while CLSA maintained an Underperform rating with a target of ₹1,050. As of June 30, 2026, domestic ownership of the company reached 51.6%.