Mumbai, July 20 (IANS). India’s leading merchant payments company Paytm (One97 Communications Ltd) on Monday announced its financial results for the quarter ending June 2026 (Q1FY2027). The company has recorded its highest ever quarterly ‘Ebitda’ driven by robust growth in merchant and consumer businesses, expansion in ‘Ebitda’ margins and an uptick in AI-based operating profit.
Paytm is a leading financial services delivery and mobile payments, QR code and soundbox provider of services to MSMEs and enterprises.
Operating revenue during Q1FY27 grew by 28 per cent YoY to Rs 2,448 crore, while ‘Ebitda’ grew by 182 per cent YoY to a record Rs 203 crore. With this, ‘Ebitda’ margin increased to 8 percent. According to the official statement, profit after tax increased by 79 percent on an annual basis to Rs 220 crore.
On a comparative basis, operating revenues excluding Payment Infrastructure Development Fund (PIDF) incentives applicable till December 2025 grew by 31 per cent yoy, while ‘Ebitda’ margins increased by 7 percentage points yoy.
Merchant gross retail value (GMV) grew by 31 per cent year-on-year to Rs 7.1 lakh crore, driven by investments in product, distribution and service by device merchants and the uptick in online merchant business after getting the online payment aggregator license last year.
Net payment revenue recorded a growth of 25 percent on an annual basis and reached Rs 601 crore. Payment processing margins structurally improved by over 4 bps due to continued growth in the number of device merchants (which reached 1.57 crore).
Income from distribution of financial services registered a 45 percent year-on-year increase to Rs 814 crore. The growth was driven by sustained growth in merchant loan disbursements, positive trend in consumer loans and better monetization in equity broking and wealth products. The merchant loan distribution business continued to benefit from the company’s growing merchant base, better penetration, expansion of loan partners and AI-based lifecycle management of device merchants. More than half of merchant loan disbursements came from repeat borrowers.
Paytm Consumer UPI has continued to grow market share for five consecutive quarters, and the gross retail value (GTV) of consumer UPI has grown 45 per cent year-on-year to Rs 5.9 lakh crore. This is 2.2 times more than the growth rate of the industry. The number of users making monthly transactions has increased by 60 lakh to 8 crore on an annual basis. AI based product innovations have helped improve engagement, retention and monetization in consumer businesses.
AI continues to power every merchant and consumer journey on the platform, ensuring greater productivity and intelligence for merchants and greater personalization for consumers. Cash balance has increased to Rs 13,529 crore by June 2026, providing continued options for business expansion.
The company said the rapid growth in revenues and expansion in ‘Ebitda’ margins, coupled with the larger target market and rapid increase in operating leverage due to AI, provide significant potential for long-term sustainable profit growth.
–IANS
MS/ABM