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In today’s newsletter:

• Paytm swings back to profit
• Milky Mist's DRHP decoded
• Infosys' new council for frontier tech

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A quiet profit, at last...no family silver sold, no esop fireworks. Just margins behaving.

One97 Communications, the parent of Paytm, reported a Rs 123 crore net profit in Q1 FY26, a clean reversal from a Rs 839 crore loss a year ago.

• Revenue rose 28% YoY to Rs 1,918 crore, driven by lending growth and stable payment revenues; contribution margin expanded from 50% to 60%

• EBITDA turned positive at Rs 72 crore versus a loss last quarter, helped by lower marketing and employee costs, including a sharp drop in ESOP charges

This marks Paytm’s first profit driven by core operations since its 2021 listing — unlike the September 2024 quarter when a Rs 1,345 crore one-time gain from its Zomato ticketing deal led to temporary profitability.

• After regulatory chokeholds, a collapsed payments bank, and muted loan disbursals, the company seems to have stabilised on the back of merchant loans, non-DLG lending, and extreme cost discipline

Financial services revenue doubled YoY to Rs 561 crore, driven by non-DLG merchant loans and better collections.

• Over 5.6 lakh users took loans, insurance or broking services via Paytm this quarter

• Personal loan disbursals stayed soft, but repeat merchant borrowers now account for over 50% of disbursals — a sign of stickiness

Paytm’s payment revenue rose 38% YoY to Rs 529 crore supported by better processing economics and steady merchant device additions; sequential growth was flat.

• Merchant devices hit 1.3 crore, with lower capex due to refurbished redeployments

Paytm’s AI-led automation helped cut indirect costs by 19% YoY, with non-sales employee costs falling 36%.

Read more

From dropout to Dalal Street, Milky Mist is churning more than dairy – it’s whipping up a market debut.

A high-school dropout’s Erode-based dairy venture is headed for the big leagues.

• Milky Mist plans to raise Rs 2,035 crore, including a Rs 1,785 crore fresh issue and Rs 250 crore OFS, its draft red herring prospectus (DRHP) showed. 

Founder Sathishkumar T and Anitha S, who hold over 92%, will see partial dilution.

• Rs 750 crore will go toward debt repayment, Rs 414.7 crore into plant expansion, and Rs 129.4 crore for cold chain upgrades

Revenue is rising, profits are thickening and the product mix is delivering flavour.

• FY24 revenue rose 29% to Rs 2,349.5 crore, while net profit grew 137% to Rs 46 crore
  
  
• EBITDA came in at Rs 310.4 crore with a margin of 13.2%— solid for a non-liquid dairy player
  
  
• New launches drove Rs 511 crore in revenue; 75% of overall sales came from daily staples

All's not smooth in this churn, here’s what could curdle the story.

• Entire production depends on one plant in Perundurai, with no backup facility
  
  
• As much as 71% of revenue still comes from South India, raising concentration concerns

Competition is fierce — from Amul to Nestlé — but CEO K. Rathnam brings Amul experience to the table.

Dig deeper

Infosys is building a braintrust for the AI age.

Infosys has constituted a global Expert Advisory Council to guide its enterprise AI and emerging technology strategy.

• The council will offer independent insights and challenge internal thinking at a time when disruptive technologies are reshaping client priorities.

It also reflects Infosys’ intent to institutionalise innovation at the boardroom level.

The advisory team includes global experts like cybersecurity veteran Chris Painter, AI strategist Barbara Wixom, cognitive psychologist Jeremy Bailenson, and futurist Azeem Azhar. 

• These domain leaders bring academic and policy depth from institutions such as Stanford, MIT, Oxford, and global cyber forums

Infosys has already concluded preliminary discussions with the members and will jointly develop technology blueprints over the coming weeks.

This council is expected to boost Infosys’ credibility with clients navigating rapid GenAI adoption and platform shifts. 

• The Bengaluru-based firm's internal R&D and co-creation efforts will get a shot in the arm through the Infosys Innovation Network and Living Labs

Having invested in over 370 startups, Infosys is now betting on expert-led incubation to stay ahead of peers.

India’s draft Telecom Cybersecurity Rules, 2025, aim to curb cyber fraud. However, experts say they may do so at the cost of legal clarity and digital ease of business.

• Key concern: The rules introduce a new category, TIUEs, bringing digital platforms under telecom-style obligations, raising fears of regulatory overreach and added compliance costs.

Read our explainer

• ChatGPT processes 2.5 billion prompts daily, with 330 million originating from the US, reflecting both domestic and global scale.
  
  
• Young people should spend less time on social media and more on learning AI tools to stay competitive in the job market, says Perplexity AI CEO Aravind Srinivas.

Two decades after Hrithik and Amisha lit up the box office, 2025’s breakout stars of Saiyaara are channelling the same Kaho Na Pyaar Hai magic.

• From surprise to sensation–Saiyaara has stormed the box office and is now on track to become the second-highest grosser of 2025.

The film has delivered windfall for cinemas– a bonus hit no one saw coming.

• What worked? Relatability met fresh charm and just like that, Aneet Padda and Ahaan Panday became overnight sensations.

Click to know more

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