Paytm Q1 Results: Net profit jumps 79%, revenue up 28%; board opts not to proceed with bonus shares

One97 Communications, the parent company of Paytm, reported a strong set of numbers for the quarter ended June 2026 (Q1FY27) today, post-market hours, with robust growth across its core businesses driving a sharp improvement in profitability.

The company's revenue from operations rose 28% year-on-year to ₹2,448 crore from ₹1,918 crore in the corresponding quarter last year, while increasing 8% sequentially from ₹2,264 crore in the March quarter.

The growth was primarily led by its Payment Services business, where revenue increased 33% YoY to ₹1,384 crore, supported by higher merchant payment volumes and continued expansion of its payments ecosystem.

The company said its Gross Merchandise Value (GMV) growth accelerated to 31% year-on-year in Q1 FY27, compared with 27% in Q4 FY26 and 24% in Q3 FY26.

The improvement was driven by continued investments in products, merchant distribution, and servicing of device merchants. The company also said it has started witnessing strong momentum in its online merchant business following the receipt of the online Payment Aggregator (PA) licence last year.

The company added 2.7 million (27 lakh) Soundboxes over the past year. According to the management, high merchant retention, improving payment processing revenue, and strong growth in loan distribution revenue led to higher overall merchant monetisation and better payback periods.

Revenue from the Distribution of Financial Services segment jumped 45% YoY to ₹814 crore, reflecting strong traction in merchant loans, personal loans, and other financial products.

Meanwhile, marketing services revenue remained largely stable at ₹239 crore.

The company's profitability improved significantly during the quarter. Reported EBITDA surged 182% year-on-year to ₹203 crore, compared with ₹72 crore in the year-ago period, with the EBITDA margin expanding to 8% from 4%.

On a comparable basis, excluding the impact of the government's PIDF incentive, EBITDA climbed to ₹195 crore from ₹18 crore a year ago, while the comparable EBITDA margin improved sharply to 8% from 1%.

On the bottom line, the net profit jumped 79% year-on-year to ₹220 crore, compared with ₹123 crore in the corresponding quarter last year. On a comparable basis, excluding the PIDF incentive, PAT surged 207% to ₹212 crore from ₹69 crore.

The sharp improvement in earnings was driven by strong operating leverage, healthy growth in high-margin payment and financial services businesses, and better cost efficiencies as revenue outpaced operating expenses.

Bonus issue proposal dropped

Along with the June quarter results, the Board also reviewed the proposal for a bonus share issue but decided not to proceed with it at this stage. The Board said it remains focused on compounding growth and profitability to create long-term shareholder value and, after due deliberation, concluded that prioritising business growth is in the best interest of shareholders.

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