Paytm reports highest ever quarterly EBITDA of Rs 203 crore in Q1 FY27; revenue rises 28 pc to Rs 2,448 crore

Mumbai, July 20 (IANS) Paytm (One 97 Communications Limited), India’s full stack merchant payments leader serving MSMEs and enterprises, and a leading financial services distribution company, and the pioneer of mobile payments, QR codes, and Soundbox, on Monday announced its financial results for the quarter ending June 2026 (Q1 FY 2027), reporting its highest ever quarterly EBITDA, driven by growth acceleration across merchant and consumer businesses, EBITDA margin expansion, and AI-led accelerating operating leverage.

During Q1 FY27, operating revenue increased 28 per cent YoY to Rs 2,448 crore, while EBITDA rose 182 per cent YoY to a record Rs 203 crore, with EBITDA margin expanding to 8 per cent. Profit after tax increased 79 per cent YoY to Rs 220 crore, according to its official statement.

On a comparable basis, excluding the Payments Infrastructure Development Fund (PIDF) incentive, which was applicable till December 2025, operating revenue grew 31 per cent YoY, while EBITDA margin expanded by 7 percentage points YoY, reflecting the strength of the underlying business.

Merchant GMV growth accelerated to 31 per cent YoY to Rs 7.1 lakh crore, led by investments in product, distribution and service of device merchants and increasing momentum in the online merchant business following receipt of the online Payment Aggregator licence last year.

Net payment revenue increased 25 per cent YoY on a comparable basis to Rs 601 crore, supported by payment processing margin structurally improving to above 4 bps and continued growth in device merchants, which reached 1.57 crore.

Distribution of financial services revenue grew 45 per cent YoY to Rs 814 crore, driven by continued growth in merchant loan distribution alongside tailwinds in consumer loans, and improved monetisation in equity broking and wealth products. The merchant loan distribution business continued to benefit from the company’s growing merchant base, improving penetration, scale up of lending partners, as well as AI-led lifecycle management of device merchants. More than half of merchant loan disbursements came from repeat borrowers. The company also continued to improve monetisation across equity broking, Margin Trade Funding and wealth products, including Paytm Gold, with AI-powered offerings expected to drive further growth.

Paytm Consumer UPI continued to gain market share for five consecutive quarters, with Consumer UPI GTV growing 45 per cent YoY to Rs 5.9 lakh crore, at 2.2 times the industry growth rate. Monthly Transacting Users increased by 60 lakh YoY to 8 crore. Continued AI-led product innovation helped improve engagement, retention and monetisation across the consumer business.

AI continued to power every merchant and consumer journey on the platform driving greater productivity and intelligence for merchants, and deeper personalisation for consumers. Cash balance increased to Rs 13,529 crore as of June 2026, providing continued optionality for business expansion.

The company said its accelerating revenue growth and EBITDA margin expansion, combined with a large addressable market and accelerated operating leverage on account of AI, provide significant potential for long term sustainable profit growth.

–IANS

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