O9One 97 Communications543396Earnings call transcript

Q2 FY27 call: UPI MDR seen adding 2.5 bps to payment margin, AI tools for merchants in focus

Transcript of the earnings call held on October 27, 2026, on Q2 FY27 results.

By ScoutQuest · Fri 30 Oct 2026, 7:36 PM IST · 2 min read

Payment processing margin improvement from MDR

2.5 bps

GMV

28 lakh crores

AI services monetisation horizon

about one year

This is the transcript of the earnings conference call held on October 27, 2026, covering the unaudited standalone and consolidated results for the quarter and half year ended September 30, 2026.

Payments margin and MDR

• Asked about the 2.5 bps improvement in payment processing margin mentioned in the shareholder letter, the CEO said it is a bottom-line accretive number and an upside, and that consumer acquisition spending is not dependent on it.
• He said the 2.5 bps figure is a conservative estimate and does not factor in any potential additional revenue from platform fees, which he said exist on both the consumer app and the acquiring side.
• The CFO said that on GMV of 28 lakh crores, at current scale, 2.5 bps would give slightly more than 700 crores. On an FY28 view, he said the analyst's figure of close to 900 crores of incremental EBITDA "sounds ballpark", adding that the company expects GMV to grow faster than the market on both the consumer and merchant side.

Strategy as described by the CEO

• The business model is described as acquiring customers through payments and cross-selling financial services, with credit as the main earning line and insurance, wealth and AI deepening the relationship.
• He said the company will go "all in on market share" in consumer acquisition, calling it a primary KPI for his team.

AI services for merchants

• Management said the model would be subscription plus transaction fee, one or both. It said it has started acquiring customers on a monthly platform fee basis, working with Meta, plus a percentage of spend.
• Asked when monetisation picks up, the CEO indicated about one year, noting three months have already passed and nine remain.
• He said the current focus is on building agents for small businesses.

Credit distribution and DLG

• The CEO said the consumer app business has moved fully to distribution without requiring any upside or DLG in the consumer business, and that this has shown results.
• On the DLG mix, he said the company does not look at the mix but at availability of capital and lenders, since lenders willing to take DLG open up more merchants.
• The DLG cost is booked as a straight charge in the same quarter rather than any future-forward discounting of revenue, which he said means the quarter's revenue carries a related cost.

What investors may take away

• The call sets out quantitative guidance points: 2.5 bps of payment processing margin, slightly more than 700 crores at current GMV of 28 lakh crores, a ballpark of close to 900 crores on an FY28 view, and an AI monetisation horizon of about one year.
• Management also indicated no change to its consumer acquisition plan despite the margin improvement.

Nothing here is a view, opinion or recommendation of ScoutQuest, its parent, directors or employees. ScoutQuest is a technology company: this page was assembled automatically from public sources using artificial intelligence, and may contain errors or omissions. Confirm everything against the original source before you act on it. Any use of this page is at your own risk, and neither ScoutQuest nor its parent, directors or employees accepts liability for it.

About ScoutQuest · Logos provided by Logo.dev