The company’s operating revenue for the quarter under review stood at ₹2,448 Cr, growing 27.6% from ₹1,918 Cr during the same period last year.
Paytm’s latest quarter shows a business that is still scaling volume, but now with profitability moving more firmly into view
Paytm attributed its Q1 growth to accelerating consumer and merchant payments businesses, enhanced B2C monetisation via wealth tech products and deployment of AI
Fintech major Paytm’s consolidated net profit zoomed 78.8% to ₹220 Cr in Q1 FY27 as against ₹123 Cr in the year ago quarter. Sequentially, profit also rose 20.2% from ₹183 Cr in Q4 FY26.
The company’s operating revenue for the quarter under review stood at ₹2,448 Cr, growing 27.6% from ₹1,918 Cr during the same period last year. The top line also rose 8.1% sequentially from ₹2,264 Cr.
On a comparable basis (excluding UPI and payments infrastructure development fund (PIDF) incentives), revenue growth stood at 31% YoY, indicating strong underlying momentum.
Paytm attributed its Q1 growth to five key engines:
- Accelerating market share gains in merchant payments business, which led to an increase in GMV growth
- Compounding merchant loan distribution
- Growing consumer payments vertical
- Enhanced B2C monetisation via wealth tech products
- Deployment of AI across core workflows, which unlocked operating leverage and improved profit margins.
Including other income of ₹182 Cr, total income for the period stood at ₹2,630 Cr. Meanwhile, Paytm’s total expenses also grew a hefty 18.2% to ₹2,383 Cr in the quarter under review compared to ₹2,016 Cr in Q1 FY26.
Payment processing charges remained the company’s largest expense at ₹794 Cr, up 36.7% from ₹581 Cr a year ago, reflecting higher payments volumes.
In Q1 FY27, Paytm also reported a record EBITDA profit of ₹203 Cr, up 182% YoY, while EBITDA margin stood at 8% during the quarter under review as against 4% in the same period last year.
The improved profitability also translated into stronger earnings per share (EPS), with basic EPS rising to ₹3.44 during the quarter from ₹1.92 a year earlier and ₹2.87 in the preceding quarter.
Paytm’s Payments Mainstay
As usual, the core payments vertical contributed the lion’s share to Paytm’s top line in Q1 FY27. Revenue from the payment services jumped 33% YoY and 9% QoQ to ₹1,384 Cr during the quarter under review.
Merchant GMV scaled 31% YoY to ₹7.1 Lakh Cr, with the company attributing the growth to the traction in recently-operationalised payments aggregator business and investments in product, distribution and service of device merchants.
In line with this, registered merchants on the platform rose 12% YoY to 5 Cr at the end of June 2026. Of the 1,989 Cr total transactions, merchants processed 1,669 Cr transactions, up 28% YoY.
Meanwhile, the company said that it deployed 27 Lakh Soundboxes during the quarter, growing its subscription merchant base to nearly 1.6 Cr, up 21% YoY.
As a result of the growing scale, Paytm said that its payment processing margin improved to “comfortably above 4 bps”, citing higher growth in profitable MDR-bearing instruments (such as credit cards on UPI and credit on UPI) and market share gains.
On the consumer side, monthly transacting users stood at 8 Cr in the April-July 2026 quarter, up 8% from 7.4 Cr in the year ago period. The UPI gross transaction value (GTV) stood at ₹5.9 Lakh Cr during the quarter, up 45% YoY.
“Consumer payments saw an acceleration in both GMV and revenue growth, led by market share gains. We continue to make AI-led improvements (alongside fraud and risk models) that are improving acquisition costs and retention outcomes, and hence long-term monetisation,” added the company in a statement.
Going forward, Paytm expects its credit-on-UPI offering (Paytm Postpaid) to compound over the coming quarters, which could bring “meaningful” revenue and EBITDA contribution from FY28 onwards.
The Lending Engine
The financial services arm remained Paytm’s growth engine, contributing ₹814 Cr to Paytm’s total revenue in Q1 FY27, up 45% YoY. On the operational front, “key” financial services customers rose 34% to 7.6 Lakhs in the quarter under review as against 5.6 Lakh in Q1 FY26.
The company attributed the revenue jump to broad-based growth across both merchant loan distribution and consumer-facing financial services businesses like loans, broking and wealth tech.
“(The) merchant loan distribution business is anchored on our deeply engaged, and growing merchant base… We continue to see lower cyclicality and sustainable growth, with more than half of disbursements to repeat borrowers. The credit quality for partners has remained robust even during recent geopolitical uncertainty,” added Paytm.
With regards to its consumer credit business, the fintech major said that its credit-on-UPI offering continues to scale “well” on both monthly sign-ups and disbursements.
The company also noted that it saw improved monetisation across equity broking, margin trade funding (MTF) and other wealth tech products such as Paytm Gold. It expects AI-powered offerings to drive further growth going forward.
“AI-led personalisation is driving higher engagement and revenue per active customer across equity broking, MTF and wealth products. We are seeing tailwinds in postpaid, personal loans and wealth products,” added the company.
Separately, Paytm’s board approved an investment of up to ₹100 Cr in wholly-owned subsidiary Paytm Money via a rights issue to support technology investments, regulatory capital requirements and the expansion of its investment and wealth management business.
The board also approved a proposal to revise the utilisation of the remaining ₹1,686 Cr of IPO proceeds, allowing the funds to be deployed more flexibly across strengthening Paytm’s core ecosystem and pursuing new business initiatives until March 31, 2029. The proposal will now be presented before shareholders.
Paytm’s board also shot down the proposed bonus issue at this stage, adding that the fintech company should instead prioritise compounding growth and profitability to maximise long-term shareholder value.
Not just this, the fintech major’s board also approved the appointment of former Google executive Amitabh Kumar Singhal as a non-executive and non-independent director of the company. This proposal shall be subject to shareholder approval.
Further, Paytm also expanded its employee stock options pool with the grant of 15.4 Lakh stock options under One 97 Employees Stock Option Scheme 2019.
Shares of Paytm declined 0.04% to ₹1,348 on the BSE today.
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