Paytm posts fifth straight profitable quarter as Q1 revenue reaches ₹2,448 crore
One97 Communications reported Q1 FY2026-27 revenue of ₹2,448 crore, up 8.1% quarter-on-quarter. Net profit rose 20% sequentially to ₹220 crore, while EBITDA climbed 54% to ₹203 crore and margin improved to 8.3%.
What happened
Paytm parent One97 Communications reported its fifth consecutive profitable quarter, with Q1 FY2026-27 revenue rising 8.1% sequentially to Rs 2,448 crore. Net
Key facts
- Q1 FY2026-27 consolidated revenue: Rs 2,448 crore, up 8.1% QoQ from Rs 2,264 crore
- Net profit: Rs 220 crore, up 20% QoQ from Rs 184 crore
- EBITDA: Rs 203 crore, up 54% QoQ from Rs 132 crore
- EBITDA margin: 8.3%, versus 5.8% in the prior quarter
- Fifth consecutive profitable quarter
- Share price: Rs 1,347.50, down 0.04%
- Market capitalisation: Rs 78,186.71 crore
Why this matters
Paytm’s accelerating EBITDA and sustained profitability make it a stronger potential partner or competitor across payments, merchant services and fintech distribution.
What to watch
- Whether revenue growth accelerates beyond the reported 8.1% quarter-on-quarter pace in the next two quarters.
- EBITDA margin holding above the current 8.3% level after investment in sales, technology and compliance.
- Merchant subscription/device additions, payment GMV growth and growth in high-margin financial-services revenue.
- Loan disbursal growth, collection performance, credit-loss trends and the breadth of NBFC/bank partnerships.
- RBI, NPCI or other regulatory developments affecting Paytm's payments, wallet, UPI or lending-distribution operations.
- Management commentary on the share of profit improvement driven by recurring operating leverage versus exceptional cost or revenue items.
- Prioritize high-margin merchant monetization through soundbox/device subscriptions, payment processing and software-led services rather than broad consumer cashback spending.
- Use improved profitability to deepen bank and NBFC partnerships for loan distribution, while maintaining conservative underwriting and compliance controls.
- Increase cross-sell of financial services to active merchants and consumers to lift revenue per user faster than payment volume growth.
- Communicate recurring versus one-off drivers of EBITDA improvement to reinforce the durability of the profitability narrative.
- Defend merchant retention against PhonePe, Google Pay and bank-led payment competitors through service reliability and bundled merchant tools rather than price-led incentives.