We have announced our financial results for the quarter ending June 2026 (Q1 FY27), reporting strong growth across our merchant and consumer businesses. Operating revenue increased 28% year-on-year (YoY) to ₹2,448 crore, while Profit After Tax (PAT) rose 79% to ₹220 crore. Revenue growth acceleration and margin expansion helped us achieve our highest ever quarterly EBITDA of ₹203 crore, with the EBITDA margin improving to 8% from 4% in the year ago quarter.
At Paytm, we are building India’s AI-first payments and financial services platform for consumers and small businesses. Further, strong execution is creating a business with accelerating growth, deeper monetisation and expanding profitability.
You can read the Q1 FY27 Results here.
Growth Acceleration and Margin Expansion Drive Record Profitability
Q1 FY27 marked another quarter of broad based growth across our payments and financial services businesses. Comparable operating revenue, excluding the impact of the Payments Infrastructure Development Fund (PIDF), increased 31% YoY to ₹2,440 crore, reflecting the continued strength of our core businesses.
Contribution profit increased 17% YoY to ₹1,350 crore, while contribution margin remained healthy at 55%. Revenue growth acceleration, together with continued operating leverage, enabled us to deliver our highest ever quarterly EBITDA and further strengthen profitability.
Our Profit After Tax increased to ₹220 crore, reflecting the benefits of sustained revenue growth, improving margins and disciplined execution across the business.
Merchant Payments Business Continues to Scale
Our merchant payments business continued to deliver strong growth during the quarter. Merchant Gross Merchandise Value (GMV) increased 31% YoY to ₹7.1 lakh crore, led by investments in product, distribution and service of device merchants, with growing momentum in the online merchant business following receipt of the online Payment Aggregator licence last year.
Our subscription business also continued to expand, with the number of merchants paying for our payment devices increasing to 1.57 crore, an addition of 27 lakh merchants over the past year.
Payment processing margin continued to remain comfortably above 4 basis points, while net payment revenue increased to ₹601 crore, up 13% YoY on a reported basis and 25% YoY on a comparable basis, supported by sustained merchant payments growth and improving monetisation.
Financial Services Business Delivers Strong Growth
Our financial services distribution business continued to perform well, supported by growth across merchant loans, personal loans and insurance distribution. Revenue from financial services increased 45% YoY to ₹814 crore, as more merchants and consumers accessed financial products through our platform. Key financial services customers grew 34% YoY to 7.6 lakh.
Financial services remains a high growth and high margin business and continues to contribute meaningfully to our overall profitability.
Consumer UPI Business Continues to Gain Market Share
Our consumer business maintained strong momentum during the quarter. Consumer UPI Gross Transaction Value (GTV) increased 45% YoY to ₹5.9 lakh crore, growing at 2.2 times the industry growth rate. This reflects continued market share gains and increasing engagement from consumers using Paytm for everyday payments.
Monthly Transacting Users (MTUs) increased by 60 lakh YoY to 8 crore, supported by higher customer engagement across payments and financial services.
AI Continues to Drive Productivity and Operating Leverage
Artificial Intelligence continues to play an important role in improving productivity across Paytm. We are deploying AI across engineering, customer support, sales, merchant operations and internal workflows to automate repetitive tasks, improve efficiency and enhance customer experience.
AI is also helping us build new capabilities for merchants and consumers while contributing to operating leverage across the business. As we continue to scale, AI remains a key enabler of innovation, efficiency and profitable growth.
Building a Strong and Sustainable Business
Our revenue growth acceleration and EBITDA margin expansion, combined with a large addressable market and accelerated operating leverage on account of AI, give us potential for long-term profit growth. This is driven by four compounding engines that are already in motion: expansion of merchant payments, growth in our high-margin merchant loans distribution business, consumer lifecycle monetisation, and AI accelerating in-built operating leverage in our model.
As of June 2026, we had a consolidated cash balance of ₹13,529 crore, up ₹657 crore YoY, providing continued optionality for business expansion.
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