Paytm shares slipped nearly 1% despite reporting a strong Q1 FY27, with net profit rising 79% YoY and revenue growing 28% YoY. Record EBITDA, robust growth in payments and financial services, and a strong cash position highlighted the quarter. However, investors remained cautious amid valuation concerns and the company's decision to defer its proposed bonus issue.
Shares of One 97 Communications Ltd, the parent company of Paytm, declined nearly 1% in early trade on Tuesday despite the fintech company reporting strong Q1 FY27 results. The company delivered higher revenue, profitability and record EBITDA during the June quarter. However, market experts remained divided on the stock outlook, with some seeing further growth potential, while others believe recent gains have already priced in future optimism.
Paytm shares fell 0.92% to ₹1,335.10 in early trade, compared with the previous close of ₹1,347.50. The stock has gained 4.4% so far in 2026, outperforming the Nifty 50, which has declined 7.3% during the same period. The company’s market capitalisation stood at around ₹86,400 crore.
Paytm Q1 FY27 Results: Profit Rises 79%, Revenue Up 28%
One97 Communications reported a 79% year-on-year (YoY) rise in consolidated net profit to ₹220 crore for the quarter ended June 30, 2026, compared with ₹123 crore in the same quarter last year. Revenue from operations increased 28% YoY to ₹2,448 crore from ₹1,918 crore.
The company reported its highest-ever quarterly EBITDA of ₹203 crore, registering a growth of 182% YoY. EBITDA margin expanded to 8% during the quarter. Excluding the Payments Infrastructure Development Fund (PIDF) incentive, which was applicable until December 2025, operating revenue grew 31% YoY, while EBITDA margin improved by 7 percentage points.
Merchant Gross Merchandise Value (GMV) increased 31% YoY to ₹7.1 lakh crore, supported by investments in products, distribution and merchant services. Consumer UPI Gross Transaction Value (GTV) surged 45% YoY to ₹5.9 lakh crore, while monthly transacting users increased by 60 lakh YoY to 8 crore.
Financial Services Business Supports Growth
Paytm’s financial services revenue grew 45% YoY to ₹814 crore, driven by higher merchant loan distribution, consumer lending growth, equity broking and wealth management products.
The merchant loan distribution business continued to benefit from a growing merchant base, higher penetration and expansion of lending partnerships. More than half of merchant loan disbursements came from repeat borrowers, indicating stronger customer engagement.
Net payment revenue increased 25% YoY on a comparable basis to ₹601 crore, supported by improvement in payment processing margins above 4 basis points and growth in device merchants. The number of merchants on subscription plans increased to 1.57 crore.
Paytm’s cash balance stood at ₹13,529 crore as of June 2026, providing financial flexibility for future expansion. The company highlighted AI-led innovation as a key factor behind improving merchant productivity, consumer engagement and operating efficiency.
Paytm Shelves Bonus Issue Proposal
Paytm’s board decided not to proceed with the proposed bonus share issue at present, focusing instead on business expansion and improving profitability. The company may reconsider the proposal in the future.
The board approved an investment of up to ₹100 crore in Paytm Money to support technology development, regulatory capital requirements and expansion of investment and wealth management businesses.
Paytm will also seek shareholder approval to revise the utilisation plan for ₹1,686 crore of unspent IPO proceeds and extend the deployment deadline until March 2029. The company plans to use these funds for acquiring and retaining consumers and merchants while strengthening its payments and financial services ecosystem.
