Overall contribution profit was up 4.7% QoQ at Rs 12.1 billion, translating to a contribution margin of 58.5%, up by 466bps YoY but down -155 bps QoQ. Ebitda before ESOP cost stood Rs 1.41 billion, which translated to an adjusted Ebitda margin of 6.8%, as against -11.2% in Q2 FY25 and 5.3% in Q1 FY26
NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Yes Securities Report
We maintain an ‘Add’ rating on Paytm with a revised price target of Rs 1400.
One 97 Communications Ltd.'s total revenue from operations was up 24.2% YoY and 7.5% QoQ to Rs 20.6 billion for the quarter. Revenue from Payments services was up 9.8% QoQ and 21.1% YoY to Rs 11.5 billion.
Revenue from Financial Services business was up 8.9% QoQ and 62.5% YoY to Rs 6.11 billion. The revenue from Marketing Services in Q2 stood at Rs 2.28 billion, down by - 24.5% YoY and -7.7% QoQ.
Payment Services has grown close to a ~20% handle, after bouncing back from the crisis situation, which does not seem like high-growth phase.
Paytm has relaunched the BNPL business. The overall unit economics of the new BNPL offering will be within 20 bps of what the company used to earn from the earlier version.
In the earlier avatar, the BNPL product used to make 70-80 bps margin. Also, management stated AI expands the opportunity hugely on the merchant side.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
RECOMMENDED FOR YOU
GAIL Q2 Review— Tariff Hikes, Volume Uplift Key Catalysts In H2 FY26-27; Motilal Oswal Maintains 'Buy'
IDFC First Bank Q2 Review: Yes Securities Maintains Cautious 'Add' On The Stock — Here's Why
HCLTech Shares Upgraded To 'Add' By Dolat Capital Post Inline Q2 Results — Check Target Price
DMart Q2 Results Review — Expansion Pace Remains A Key Monitorable, Says HDFC Securities; Retains 'Add'
POPULAR