India · Delayed Price · Currency is INR One97 Communications Earnings Call Transcripts
Fiscal Year 2026
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Core payment and financial services continue to drive growth, with strong merchant lending, BNPL traction, and payment processing margins above 4 bps. PIDF withdrawal impacts margins short-term, but management expects to offset most of it through higher subscription revenue and AI-driven sales.
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AI integration and merchant ecosystem expansion are driving margin improvements and new revenue streams, with strong growth in lending, wealth, and device segments. Postpaid product relaunch and international expansion are set for gradual, sustainable scaling.
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Positive EBITDA and a 60% contribution margin highlight strong cost control and revenue growth, with merchant lending and payment services driving performance. Outlook remains optimistic, with further margin expansion and product innovation expected.
Fiscal Year 2025
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Adjusted EBITDA breakeven achieved, driven by strong merchant business and AI-led cost efficiencies. Merchant lending and device deployments grew, while personal loans remained subdued due to credit tightening. Revenue and margin guidance maintained, with ESOP costs set to decline.
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Merchant lending and payment processing margins remain strong, with DLG models now dominating merchant loans and international expansion focused on merchant ecosystems. Contribution margins are stable, CapEx is low, and profitability is expected soon, with significant growth potential in financial services penetration.
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Transition to a DLG model for merchant loans is expected to keep net take rates above 5%, with strong cost reductions and improved contribution margins. Focus remains on scaling lending, device monetization, and leveraging AI for efficiency, while maintaining a robust cash position.
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Business stabilized with focus on profitability, cost control, and core payments and financial services. Indirect expenses rose due to one-offs, but are expected to decline, while CapEx will be lower as inactive devices are redeployed. Medium-term EBITDA margin target is 15%-20% by FY27-28.