One 97 Communications Reports Ten-Fold Profit Increase in Q2 FY27

One 97 Communications Ltd, the parent company of Paytm, reported a ten-fold increase in net profit to ₹225 crore for the September quarter (Q2 FY27), rising from ₹21 crore the previous year. This result marks the company's sixth consecutive profitable quarter. Operating revenue grew 28% year-over-year to ₹2,648 crore, while EBITDA reached a record ₹270 crore with margins expanding to 10% for the first time.

Growth was driven by a 49% increase in financial services distribution revenue, which reached ₹912 crore, and a 42% rise in UPI transaction value. The company expanded its monthly transacting users to 8.5 crore and grew its merchant device network to 1.64 crore. One 97 Communications attributed these gains to the integration of AI across risk management, collections, and personalization, which improved operating leverage and reduced indirect expenses.

Global brokerages responded positively to the results. Bernstein maintained an Outperform rating with a target price of ₹2,200, noting that the expanded merchant network alleviates concerns over competition. J.P. Morgan maintained an Overweight rating with a target price of ₹2,100, stating the company has proven the resilience of its merchant-led business model and achieved EBIT breakeven through sharp cost control.