Date: July 20, 2026

Financial Results (Standalone & Consolidated)

Revenue Performance:

  • Revenue from Operations: ₹2,448 Cr for Q1 FY27, up 28% YoY from ₹1,918 Cr in Q1 FY26
  • Payment Services revenue: ₹1,384 Cr, up 33% YoY from ₹1,044 Cr
  • Distribution of Financial Services revenue: ₹814 Cr, up 45% YoY from ₹561 Cr
  • Marketing Services revenue: ₹239 Cr, down 3% YoY from ₹247 Cr
  • Other Operating Revenue: ₹11 Cr, down 84% YoY from ₹67 Cr

Profitability Metrics:

  • Net Profit: ₹220 Cr for Q1 FY27, up 79% YoY from ₹123 Cr
  • EBITDA: ₹203 Cr, up 182% YoY from ₹72 Cr
  • EBITDA Margin: 8% in Q1 FY27 vs 4% in Q1 FY26
  • Contribution Profit: ₹1,350 Cr, up 17% YoY from ₹1,151 Cr
  • Contribution Margin: 55% in Q1 FY27 vs 60% in Q1 FY26

Expense Breakdown:

  • Payment processing charges: ₹794 Cr (0.11% of GMV), up 37% YoY
  • Promotional cashback & incentives: ₹90 Cr, up 143% YoY
  • Other direct expenses: ₹214 Cr, up 45% YoY
  • Total Indirect Expenses: ₹1,147 Cr, up 6% YoY
  • Marketing expenses: ₹79 Cr, up 27% YoY
  • Employee costs (including ESOP): ₹742 Cr, up 15% YoY
  • Software, cloud and data centre: ₹159 Cr, down 5% YoY
  • Other indirect expenses: ₹167 Cr, down 19% YoY

Other Financial Items:

  • Finance costs: ₹7 Cr, up 75% YoY
  • Depreciation and amortization: ₹131 Cr, down 21% YoY
  • Other income: ₹182 Cr, down 24% YoY
  • Income Tax expense: ₹27 Cr, up 575% YoY

Operational Metrics

Scale Metrics:

  • GMV: ₹7.1 Lakh Cr, up 31% YoY from ₹5.4 Lakh Cr
  • Merchant Transactions: 1,669 Cr, up 28% YoY from 1,303 Cr
  • Total Transactions: 1,989 Cr, up 36% YoY from 1,464 Cr
  • Registered Merchants: 5.0 Cr, up 12% YoY from 4.5 Cr
  • Subscription Merchants including devices: 1.57 Cr, up 21% YoY from 1.30 Cr
  • Monthly Transacting Users (MTU): 8.0 Cr, up 8% YoY from 7.4 Cr
  • Key financial services customers: 7.6 Lakh, up 34% YoY from 5.6 Lakh

Payment Metrics:

  • Customer UPI GTV: ₹5.9 Lakh Cr, up 45% YoY
  • Payment Processing Margin: comfortably above 4bps (structurally improved from 3bps earlier)
  • Net Payment Revenue: 8.4bps of GMV (8.8bps in Q1 FY26)

Employee Metrics:

  • Average Number of Sales Employees: 43,715, up 12% YoY from 38,945
  • Sales and service employee costs: ₹339 Cr, up 26% YoY from ₹266 Cr

Loan Distribution Performance

Merchant Loans Indicators:

  • Bounce Rates: NA
  • Bucket 1 Resolution %: 83% to 90%
  • Recovery Rate Post 90+: 30% to 35%
  • ECL%: 4.5% to 5.0%
  • Repeat Borrower Mix: >50% of merchant loan disbursements

Cash Balance & Capital Structure

Cash Position:

  • Total Cash Balance: ₹13,529 Cr (up ₹657 Cr YoY)
  • Breakdown: Deposits with banks ₹6,478 Cr, Investments ₹5,086 Cr
  • Excludes: PML customer funds ₹420 Cr, Balances in Escrow/Nodal Accounts ₹2,832 Cr
  • Includes: Pre-funded balance in escrow account from PPSL post transfer of offline business

ESOP Pool:

  • Basic shares outstanding: 64.0 Cr
  • ESOPs vested and unexercised: 0.3 Cr
  • ESOPs granted and unvested: 1.0 Cr
  • ESOPs available for distribution: 2.7 Cr
  • Estimated fully diluted shares: 67.9 Cr

International Expansion Update

European Operations:

  • Paytm Europe Payments S.A. (wholly-owned step-down subsidiary) granted Payment Institution License by Luxembourg's CSSF on July 2, 2026
  • License covers: execution of payment transactions, execution of payment transaction where funds are covered by credit line, acquiring of payment transactions

Indonesian Partnership:

  • Partnership with Flip (Indonesian technology company) and its subsidiary DTK
  • Company to provide device hardware and technology to DTK
  • Flip to lead local market execution
  • DTK holds PJP1 licence for merchant acquiring in Indonesia

Business Strategy & Outlook

Growth Engines:

1. Expansion of merchant payments business with accelerating market share gains

2. Growth in high-margin merchant loan distribution business with AI-led capabilities

3. Consumer payments business growing more than 2x of industry growth

4. Tailwinds in consumer monetization through Postpaid, personal loans and wealth products

AI Implementation:

  • AI applications across engineering, merchant services, and consumer acquisition
  • AI agents accelerating delivery and cost discipline
  • AI-led personalization driving higher engagement and revenue per active customer
  • Machine-first systems driving efficiencies across workflows

EBITDA Margin Outlook:

  • Company has visibility to achieve 15-20% EBITDA margin targets
  • Accelerating top line growth and AI-driven operating leverage supporting margin expansion

Governance & Compliance

Governance Strengthening:

  • Board strengthened with appointment of four new directors in last one year
  • Conservative revenue recognition policy on merchant subscription revenue
  • Discontinued use of any adjusted metrics, all disclosures on GAAP basis
  • Proactive conservative compliance policies implemented

Regulatory Updates:

  • Paytm Payments Services Limited (PPSL) has applied for wallet license
  • Company calibrated business to achieve profitable growth without government subsidies (UPI or PIDF incentives)

Investor Communications

Earnings Call:

  • Q1 FY 2027 earnings call scheduled on July 21, 2026, 3:30 PM – 4:15 PM
  • Zoom video conference webinar format