27-Oct-2026 08:07:45
Goldman Sacs on One 97 Comm ; Buy, Tp Rs 2010
2Q had a number of positives: (i) Revenue growth was strong at 28% YoY (33% LFL) and should accelerate further as MDR revenue starts flowing in from later this FY; (ii) EBITDA was a 10% beat vs GSe, with margins continuing to expand; (iii) Paytm has now quantified its expectation from UPI MDR (+2.5 bps payment processing margin), and per our calculation this should translate into Rs8-9 bn in EBITDA in FY28, largely in line with our estimate though it should help the market build more confidence on incremental EBITDA opportunity; (iv) Financial Services growth further accelerated and Paytm is seeing improving trends in personal loans, and expects meaningful revenue/EBITDA from postpaid from FY28; (v) Paytm's market share in payments saw another quarter of improvement, with one of the highest MTU adds in recent periods. The one negative in print was higher than expected capex (device related), which translates into higher D&A costs & thus leads to some cuts in EPS.
ONE 97 COMMUNICATIONS LTD