Paytm Q1 results: Revenue jumps 28% YoY to ₹2,448 crore, EBITDA zooms 182% YoY - check key metrics

One 97 Communications, the parent company of Paytm, on Monday night (July 20) reported its June-quarter (Q1 FY27) earnings.

In its earnings release, the company said that June quarter marked a broad-based accelerated growth in Payments and Financial Services for Merchant and Consumer Businesses.

Paytm said its revenue for the period jumped 28% YoY and 8% QoQ to ₹2,448 crore, while EBITDA, or operating profit, came in at ₹203 crore, up 182% YoY and 54% QoQ.

The company's profit after tax (PAT) came in at ₹220 crore, up 79% YoY.

"With large addressable TAM and AI-led operating leverage, accelerating revenue growth and EBITDA margin expansion position us for long-term sustainable profit growth," the company added.

Accelerating market share gains is leading to an increase in GMV growth, driven by continued strength in the offline business and tailwinds in the online business.

Merchant loan distribution continues to compound, led by a growing base, while AI-led capabilities drove gains in merchant engagement, retention, risk insights for partners, and strong collection efficiency.

Product innovation and AI-optimised consumer acquisition have resulted in consumer payment market share gains for five consecutive quarters.

Led by distribution of Postpaid, personal loans and wealth products, consumer monetisation becoming powerful revenue engine.

Merchant Payments business

The company said its Merchant GMV (Gross Merchandise Value) jumped 31% YoY to ₹7.1 lakh crore. Paytm said the increase was led by investments in product, distribution and service of device merchants. "We have started to see momentum in online merchant business, post receipt of online PA license last year," it added.

Payment Processing Margin structurally improved

"This improvement is owing to a combination of factors such as higher growth in profitable MDR-bearing instruments such as credit cards on UPI and credit line on UPI (Postpaid), market share gains, and pricing discipline. We expect this to continue in the mid to long term," it added.

Soundbox update

Paytm added 27 lakh net devices YoY. High merchant retention, improving payment processing revenue and loan distribution revenue, resulting in higher overall merchant monetisation and better payback periods. Now, it is deployed at 1.57 crore storefronts in India.

The total net payment revenue stood at ₹601 crore, up 25% YoY comparable (excluding PIDF incentive) and 13% (reported).

Consumer Payments and Monetisation Engines

Paytm's customer UPI Gross Transaction Value (GTV) rose 45% year-on-year to ₹5.9 lakh crore during the quarter. The company also reported that its monthly transacting users (MTUs) increased by 60 lakh from a year ago to 8 crore.

Paytm said it is expanding its user base while deepening engagement per user. Consumer payments recorded faster growth in both GMV and revenue, driven by market share gains.

The company added that AI-led enhancements, along with improvements in fraud detection and risk models, have helped lower customer acquisition costs, improve user retention and support long-term monetisation.

Consumer Monetisation Engines

Paytm Postpaid (credit line on UPI) is expected to compound over the coming quarters, leading to meaningful revenue and EBITDA contribution from FY 2028 onwards.

“AI-led personalisation is driving higher engagement and revenue per active customer across equity broking, MTF and wealth products. We are seeing tailwinds in postpaid, personal loans and wealth products,” the company added.