One97 Communications shares recover early lost ground; end higher post Q1 earnings

New Delhi: Shares of fintech firm One97 Communications, which owns the Paytm brand, ended nearly 2 per cent higher on Wednesday after the company reported its first-ever consolidated net profit at Rs 122.5 crore in the June quarter.

After falling 3.15 per cent to Rs 1,019.35 in the morning trade, the stock later bounced back and ended at Rs 1,070.95 apiece, up 1.74 per cent on the BSE.

On the NSE, it climbed 1.64 per cent to end at Rs 1,068.30 per share. During the morning trade, it went lower by 3 per cent to Rs 1,019.40.

The company's market valuation jumped Rs 1,190.98 crore to Rs 68,357.65 crore.

In volume terms, 17.15 lakh shares of the firm were traded on the BSE and 263.39 lakh shares on the NSE during the day.

One97 Communications on Tuesday reported its first-ever consolidated net profit at Rs 122.5 crore in the quarter ended June 2025, mainly on account of cost optimisation and an increase in payment revenue.

Paytm had posted a net loss of Rs 840 crore in the year-ago period.

"Q1 results of Eternal and Paytm indicate steady growth potential of the digital stocks which have a long runway of growth," VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said.

"EBITDA and PAT turned profitable at Rs 72 crore and Rs 123 crore, respectively, demonstrating AI-led operating leverage, disciplined cost structure and higher other income," Paytm said in a statement.

Paytm Founder and CEO Vijay Shekhar Sharma said that the company has filtered out words related to adjustments under various heads.

"This is the first quarter where we have pruned out every word which included EBITDA (operational profit) before ESOP, PAT (profit after tax) before ESOP or anything before ESOP. Next quarter onward, we will stop giving the ESOP line. It will be only employee cost. We are maturing towards absolute complete employee cost, including EBITDA or PAT, where the ESOP cost is the cost of management. No more adjusting anything," he said.

Paytm earlier issued profitability targets after complex adjustments. PTI SUM SUM SHW