One 97 Communications Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript One 97 Communications Ltd filed with BSE on 12 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Paytm management reported growth across payments and financial services for Q4 FY26, with net payment margin above four basis points despite the PIDF subsidy phase-out, and EBITDA of about 500 crores for the year. Management said marketing services revenue had declined last year but expects a recovery contributing to FY27 growth, alongside continued strength in merchant loans and recovering personal loans. Management also discussed AI investment plans, the Paytm Postpaid relaunch, and reiterated commitment to pending regulatory applications including the wallet license.
Numbers mentioned
Payments revenue share: about 55% of the revenue
p. 3
“I think the overall acceleration given payments is about 55% of the revenue, and financial services is about 30% of the revenue, growth is across the board.”
Mr. Madhur Deora, page 3 of the filed PDF · View the filing
Financial services revenue share: about 30% of the revenue
p. 3
“I think the overall acceleration given payments is about 55% of the revenue, and financial services is about 30% of the revenue, growth is across the board.”
Mr. Madhur Deora, page 3 of the filed PDF · View the filing
GMV growth: 27% (Q4 FY26 vs Q4 FY25)
p. 9
“If I see this quarter versus last year, fourth quarter, both your GMV up 27%, and the margins are moving from less than three to more than four basis points, that actually throws up a very high growth number on the payment processing margins, more like 50-60%.”
Mr. Jayant Kharote, page 9 of the filed PDF · View the filing
Device additions: 27 lakh devices, 22% growth on base
p. 9
“And this is despite us adding 27 lakh devices, which is 22% growth on our base.”
Mr. Jayant Kharote, page 9 of the filed PDF · View the filing
Merchant lending penetration (customer base): less than 5% or 5.5%
p. 12
“On our customer base, we are penetrated less than 5% or 5.5% right now?”
Mr. Vijay Shekhar Sharma, page 12 of the filed PDF · View the filing
Merchant lending penetration (merchant base): about 7%
p. 12
“On merchant base, about 7% penetration.”
Mr. Madhur Deora, page 12 of the filed PDF · View the filing
Indirect/employee costs: Rs 1,150 Cr (current quarter)
p. 7
“Should we expect that to remain in the current Rs 1,150 Cr thereabouts, or it can be significantly higher than that?”
Mr. Pranav Kshatriya, page 7 of the filed PDF · View the filing
EBITDA: 500 crores (FY26)
p. 16
“So your observation about last year is correct. 500 crores of EBITDA, but we have capex.”
Mr. Madhur Deora, page 16 of the filed PDF · View the filing
PIDF cost offset achieved: 30 to 40% (Q4 FY26)
p. 11
“our Q4, and I think it was in response to a question, was that we would be able to offset 30 to 40%. So I'm pleased to report that we did achieve that”
Mr. Madhur Deora, page 11 of the filed PDF · View the filing
Merchants with EMI-enabled machines: more than half
p. 17
“I think the one thing I can say is more than half of our machines are enabled for disbursing EMIs.”
Mr. Vijay Shekhar Sharma, page 17 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
EBITDA margin — 15 to 20% · two and a half to three years from now
stated as an aspiration by Mr. Madhur Deora
p. 3
“And EBITDA, we will maintain about two and a half to three years from now, that we should be able to get to those sorts of EBITDA margins.”
Mr. Madhur Deora, page 3 of the filed PDF · View the filing
Revenue growth — more than 22% growth · FY27
stated firmly by Mr. Jayant Kharote
p. 10
“And lastly, on costs and margin, we are guiding for more than 22% growth”
Mr. Jayant Kharote, page 10 of the filed PDF · View the filing
Indirect costs — significantly lower than revenue and contribution profit growth · next year
stated firmly by Mr. Madhur Deora
p. 7
“But, if we look outwards towards the next year, we do think that like we have said, this will grow significantly lower than revenue and contribution profit growth and continued operating leverage as a result of that.”
Mr. Madhur Deora, page 7 of the filed PDF · View the filing
EBITDA vs capex — EBITDA significantly higher than capex · next year
stated firmly by Mr. Madhur Deora
p. 16
“On question number three, it is the case that we have capex, but next year we expect EBITDA to be significantly higher than capex So your observation about last year is correct.”
Mr. Madhur Deora, page 16 of the filed PDF · View the filing
PIDF cost offset — near full offset · over time
stated conditionally by Mr. Madhur Deora
p. 11
“and we're confident that over time we'll be able to significantly achieve a near full offset.”
Mr. Madhur Deora, page 11 of the filed PDF · View the filing
Wealth/broking market position — top five · sooner than later
stated as an aspiration by Mr. Vijay Shekhar Sharma
p. 5
“It may not, and I've said it in our last earnings call that we want to see ourselves in the top five sooner than later.”
Mr. Vijay Shekhar Sharma, page 5 of the filed PDF · View the filing
New investment focus — AI only
stated firmly by Mr. Vijay Shekhar Sharma
p. 5
“Any new investment, only in AI.”
Mr. Vijay Shekhar Sharma, page 5 of the filed PDF · View the filing
AI capex plan — no material capital investment plan · right now
stated firmly by Mr. Vijay Shekhar Sharma
p. 11
“We don't have a material capital investment plan right now on the table or in plan.”
Mr. Vijay Shekhar Sharma, page 11 of the filed PDF · View the filing
Marketing/cashback spend — not more than existing ratios/guidance
stated firmly by Mr. Vijay Shekhar Sharma
p. 6
“At the same time, I'm committing this once again that we will continue to spend it not more than what the ratios have been right now, like we have always said it.”
Mr. Vijay Shekhar Sharma, page 6 of the filed PDF · View the filing
NBFC license — not pursuing an NBFC license
stated firmly by Mr. Madhur Deora
p. 16
“The short answer is we're not super excited about going for an NBFC license.”
Mr. Madhur Deora, page 16 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said growth is broad-based across payments, financial services and marketing services, with EBITDA margin target expected in about two and a half to three years.
Answered by Mr. Madhur Deora
Asked by Mr. Manish Adukia: How much of the FY27 revenue growth acceleration guidance comes from marketing services recovery versus broader payments/financial services acceleration, and how far from the 15-20% EBITDA margin target is the company?
p. 3
“So, in addition to what Vijay said about marketing services and sort of addressed your question, yes, we expect that to be a contributor going forward.”
Mr. Madhur Deora, page 3 of the filed PDF · View the filing
Management said traction is better and faster than the prior launch, though disbursement numbers would not be disclosed.
Answered by Mr. Vijay Shekhar Sharma
Asked by Mr. Manish Adukia: How does the current Postpaid traction compare with the earlier iteration?
p. 4
“Yeah, Manish, better than last time. Classic internet dissemination or diffusion of services style.”
Mr. Vijay Shekhar Sharma, page 4 of the filed PDF · View the filing
Management declined to give any forward figure or hint.
Answered by Mr. Vijay Shekhar Sharma
Asked by Mr. Manish Adukia: Could Postpaid disbursals return to the prior peak of about Rs 9,000 crore a quarter?
p. 4
“No comments towards any guidance or hint of it.”
Mr. Vijay Shekhar Sharma, page 4 of the filed PDF · View the filing
Management said there was no impact and reiterated commitment to the wallet license process.
Answered by Mr. Vijay Shekhar Sharma
Asked by Mr. Manish Adukia: Is there any impact on Paytm's listed entity from the PPBL ban, and what is the status of the wallet license application?
p. 4
“I think, no impact. We did a press release on the system. And we remain committed.”
Mr. Vijay Shekhar Sharma, page 4 of the filed PDF · View the filing
Management described three growth legs: established profitable payments/merchant businesses, recovering advertising and personal loans, and a new wealth pillar.
Answered by Mr. Madhur Deora
Asked by Mr. Sachin Salgaonkar: Will FY27 growth acceleration come from scaling new businesses like wealth, insurance and personal loans, or from the core payments and merchant loan business?
p. 5
“So, that is why retail broking, if you will, gets filtered to the top. So, those are the three legs of revenue growth, and we are quite excited about each one of those three buckets.”
Mr. Madhur Deora, page 5 of the filed PDF · View the filing
Management said any new investment would be only in AI, tied to existing customers and merchants.
Answered by Mr. Vijay Shekhar Sharma
Asked by Mr. Sachin Salgaonkar: What areas is the company considering for selective inorganic investment mentioned in the shareholder letter?
p. 6
“No, it's primarily the same customer, same merchant, primarily making their life better.”
Mr. Vijay Shekhar Sharma, page 6 of the filed PDF · View the filing
Management said spend is being used to acquire and retain higher-quality customers and expand into services like digital gold and vouchers, within existing guided ratios.
Answered by Mr. Vijay Shekhar Sharma
Asked by Mr. Pranav Kshatriya: Why is marketing and cashback spend rising without a corresponding jump in marketing services revenue or MTU?
p. 6
“So, we have been measured, and we remain measured in spending.”
Mr. Vijay Shekhar Sharma, page 6 of the filed PDF · View the filing
Management cited product-driven pricing discipline and the growing share of credit instruments like credit card on UPI and Postpaid on payment rails.
Answered by Mr. Madhur Deora
Asked by Mr. Vijit Jain: What are the major drivers for continued net payment margin expansion?
p. 7
“The two major factors are our product improvements, giving us the luxury of having pricing discipline.”
Mr. Madhur Deora, page 7 of the filed PDF · View the filing
Management confirmed PIDF has an impact on subscription revenue per device but said improving payback periods support continued merchant lending funnel economics, with payment processing margin growing faster.
Answered by Mr. Madhur Deora
Asked by Mr. Jayant Kharote: Is device subscription revenue growth being held back by PIDF-linked devices, and will payment processing margin do the heavy lifting on net payment revenue going forward?
p. 9
“It is the case that PIDF has an impact, and it is also the case that without adjusting for that, the device subscription per device overall is slightly lower, but we do see this as a very good funnel to merchant lending.”
Mr. Madhur Deora, page 9 of the filed PDF · View the filing
Management pointed to digital gold and travel as areas seeing good ROI, and said sales and subscription revenue optimization achieved 30-40% offset in Q4 with more expected.
Answered by Mr. Madhur Deora
Asked by Mr. Rahul Jain: Are cashback investments targeted at specific high-margin consumer use cases, and is sales cost optimization continuing after PIDF sunset?
p. 11
“Our digital gold is one of those categories, which is covered in financial services, just a housekeeping point, and there are several use cases on marketing services, particularly travel, where we see good ROI on investments”
Mr. Madhur Deora, page 11 of the filed PDF · View the filing
Management said the company does not own the loan book and acts as a distribution channel, with penetration around 7% of subscription merchants leaving significant room to grow.
Answered by Mr. Vijay Shekhar Sharma
Asked by Mr. Harshit: Will merchant lending growth increasingly depend on consumer loans, and will the company need to move down-market on merchant lending yield to sustain growth?
p. 12
“About 7%, and that too based on the subscription merchant, denominator.”
Mr. Vijay Shekhar Sharma, page 12 of the filed PDF · View the filing
Management said the proportion is broadly flat to slightly higher but declined to disclose a specific number.
Answered by Mr. Madhur Deora
Asked by Mr. Piran Engineer: What proportion of merchant loan disbursements carry DLG (default loss guarantee)?
p. 13
“Proportion of DLG is broadly flat, maybe slightly higher. The proportion of loans that come with DLG is probably slightly higher. The amount of DLG is flat, flattish.”
Mr. Madhur Deora, page 13 of the filed PDF · View the filing
Management said they are not keen on an NBFC license, preferring the current distribution partnership model with lenders holding the loan book.
Answered by Mr. Madhur Deora
Asked by Mr. Sachin Dixit: Is Paytm considering pursuing its own NBFC license given the PPBL license situation?
p. 16
“So we do think this is a win-win partnership, and Paytm does try to be a win-win partner for whoever we partner with, across the board, and here, obviously, we're talking about lending.”
Mr. Madhur Deora, page 16 of the filed PDF · View the filing
Management said more than half of machines are EMI-enabled across enterprise and long-tail segments, spanning categories beyond electronics.
Answered by Mr. Vijay Shekhar Sharma
Asked by Mr. Alok Srivastava: What is the outlook and current penetration for affordability/EMI-enabled machines?
p. 17
“I think the one thing I can say is more than half of our machines are enabled for disbursing EMIs.”
Mr. Vijay Shekhar Sharma, page 17 of the filed PDF · View the filing
Risks flagged
Marketing services revenue had a double-digit decline last year, acting as a drag on overall growth
p. 3
“It has been a bit of a drag last year, but we think the growth will be across the board.”
Mr. Madhur Deora, page 3 of the filed PDF · View the filing
Online merchant onboarding was restricted for about half of last year due to lack of permission
p. 5
“Last year, online had a headwind that we did not have permission to onboard new customers for about half the year.”
Mr. Madhur Deora, page 5 of the filed PDF · View the filing
Advertising revenue went through a revamp linked to MTU changes, creating a headwind
p. 5
“So, advertising, because of our MTU, went through a revamp, had a headwind.”
Mr. Madhur Deora, page 5 of the filed PDF · View the filing
Personal loans faced a headwind from the credit cycle
p. 5
“Personal loans had a headwind because of credit cycle.”
Mr. Madhur Deora, page 5 of the filed PDF · View the filing
PIDF subsidy withdrawal is reducing device subscription revenue per device
p. 9
“It is the case that PIDF has an impact, and it is also the case that without adjusting for that, the device subscription per device overall is slightly lower”
Mr. Madhur Deora, page 9 of the filed PDF · View the filing
Broader credit card industry growth has moderated to single digits, a potential factor for credit card on UPI growth
p. 9
“Now that industry is down to 7 to 10, are you observing a similar moderation from that 30-odd to 20, 25”
Mr. Jayant Kharote, page 9 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.