Paytm Q1FY27 Results: Profit Jumps 79% To ₹220 Crore

One97 Communications, the parent company of Paytm, posted its fourth consecutive quarterly profit on Thursday, with net profit rising 79% year-on-year (YoY) to ₹220 crore for the June 2026 quarter. The company had earned ₹123 crore in the same period last year and ₹183 crore in the March quarter.

Revenue from operations grew 28% year-on-year to ₹2,448 crore from ₹1,918 crore and rose 8% sequentially from ₹2,264 crore.

Shares of One 97 Communications Ltd (Paytm) slipped in early trade on Tuesday even after the fintech company reported a strong first quarter.

On 21 July 2026, Paytm shares were down 1.99% and trading at ₹1,320.70 at 11:15 AM.

What Drove The Numbers

Three business lines carried the quarter:

• Payment Services: Revenue up 33% YoY to ₹1,384 crore, supported by higher merchant payment volumes and the online Payment Aggregator licence received last year.

• Financial Services Distribution: Revenue up 45% YoY to ₹814 crore on strong traction in merchant loans, personal loans and other products.

• Marketing Services: Stable at ₹239 crore.

Gross Merchandise Value (GMV) growth accelerated to 31% year-on-year in Q1FY27, up from 27% in Q4FY26 and 24% in Q3FY26.

The company added 2.7 million Soundboxes over the past year, with high merchant retention and improving payment processing revenue supporting better monetisation and shorter payback periods.

Profitability Improving Sharply

• Reported earning before interest, taxes, depreciation, and amortisation (EBITDA): ₹203 crore in Q1FY27, up 182% YoY from ₹72 crore

• EBITDA margin: 8% in Q1FY27, up from 4% a year ago

• Comparable EBITDA excluding Payments Infrastructure Development Fund (PIDF) incentive: ₹195 crore in Q1FY27 vs ₹18 in Q1FY26.

• Comparable profit after tax (PAT) excluding PIDF: ₹212 crore in Q1FY27, up 207% YoY from ₹69 crore.

Board Decisions

The board approved an investment of up to ₹100 crore in wholly owned subsidiary Paytm Money through a rights issue to support technology investments, regulatory capital and expansion of its wealth management business.

The board also sought shareholder approval to revise utilisation of the remaining ₹1,686 crore of unutilised initial public offering (IPO) proceeds and extend the timeline to 31 March 2029.

A proposal for a bonus share issue was reviewed and dropped. The board said it remains focused on compounding growth and profitability and concluded that prioritising business growth is in the best interest of shareholders at this stage.

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