MS on One 97 Comm ; EW. TP Rs 1450

Key Takeaways (+) Clean operating beat: Revenue up 28% YoY (beat estimate by 5%/; EBITDA Rs2.7bn (+91% YoY) – in line with MSe (+) Financial services revenue growth rose to 49% YoY (+5% vs estimate), led by merchant (50%+ of loans to repeat borrowers), postpaid & personal loans. (+) Expects a 2.5bps lift in payment processing margin from MDR on select UPI P2M transactions (implies Rs9.7bn on F28 GMV estimate). (=) Per management, DLG costs to rise from 3QF27 as largest lender resumes DLG; CM to dip near term, but management expects EBITDA to improve in 3QF27. (-) Payment GMV was flat qoq and YoY growth moderated to 25% – industry growth itself moderated as festive season shifted to 3QF27

ONE 97 COMMUNICATIONS LTD

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