Mumbai, July 21: India’s leading merchant payment company, Paytm (One 97 Communications Limited), announced its financial results for the quarter ending June 2026 on Monday. The company reported its highest-ever quarterly EBITDA, driven by significant growth in merchant and consumer businesses, an expansion in EBITDA margins, and accelerated AI-based operational gains.
Paytm is a prominent provider of services to MSMEs and enterprises, excelling in financial service distribution, mobile payments, QR codes, and soundboxes.
During the first quarter of FY2027, operational revenue surged by 28% year-on-year, reaching ₹2,448 crore, while EBITDA skyrocketed by 182% year-on-year to a record ₹203 crore. Consequently, the EBITDA margin increased to 8%. According to the official statement, profit after tax saw a 79% year-on-year rise, amounting to ₹220 crore.
On a comparative basis, excluding the Payment Infrastructure Development Fund (PIDF) incentives applicable until December 2025, operational revenue still grew by 31% year-on-year, with EBITDA margins improving by 7 percentage points.
Investments in merchant device products, distribution, and services, along with the surge in online merchant business following the acquisition of an online payment aggregator license last year, contributed to a 31% year-on-year increase in Gross Merchandise Value (GMV), which reached ₹7.1 lakh crore.
Net payment revenue also rose by 25% year-on-year, reaching ₹601 crore, attributed to structural improvements in payment processing margins and a continuous increase in the number of device merchants, which now totals 1.57 crore.
Revenue from financial services distribution grew by 45% year-on-year, reaching ₹814 crore. This growth was fueled by a consistent rise in merchant loan distribution, positive trends in consumer loans, and improved monetization in equity broking and wealth products. The expanding merchant base, better penetration, and AI-based lifecycle management for device merchants have consistently benefited the merchant loan distribution business, with over half of the loans coming from repeat borrowers.
Paytm’s consumer UPI has maintained market share growth for five consecutive quarters, with the Gross Transaction Value (GTV) for consumer UPI increasing by 45% year-on-year to ₹5.9 lakh crore, outpacing the industry growth rate by 2.2 times. The number of monthly transacting users rose by 6 million year-on-year to 80 million. AI-driven product innovations have enhanced engagement, retention, and monetization in the consumer business.
The AI platform continues to empower the journey of each merchant and consumer, ensuring greater productivity and intelligence for merchants and more personalization for consumers. By June 2026, cash reserves increased to ₹13,529 crore, providing ongoing options for business expansion.
The company stated that the rapid revenue growth and expansion of EBITDA margins, combined with a large target market and AI, offer significant potential for sustainable long-term profit growth.
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