One 97 Communications, the parent company of fintech firm Paytm, delivered exceptional Q1 FY27 results that sent shares trading 0.56% higher during early trading on July 21. According to The Financial Express, the company reported revenue of ₹2,448 crore for the June quarter, up 28% year-on-year, while EBITDA surged 182% to a record ₹203 crore. The standout performance was further highlighted by profit after tax climbing 79% to ₹220 crore, with the company achieving EBITDA margin expansion to 8% during the quarter. As reported by SBI Securities, the quarterly numbers indicate healthy earnings momentum, supported by expanding profitability across payments and financial services as the company continues to strengthen its operating performance.
The company's Merchant GMV (Gross Merchandise Value) jumped 31% YoY to ₹7.1 lakh crore, with the increase led by investments in product, distribution and service of device merchants. According to Paytm's earnings release, the company has started to see momentum in online merchant business, post receipt of online PA license last year. The Soundbox update showed addition of 27 lakh net devices YoY, with the solution now deployed at 1.57 crore storefronts in India. The net payment revenue increased 25% on a comparable basis to ₹601 crore, while payment processing margin remained comfortably above four basis points. The GMV growth accelerated to 31% year-on-year in Q1 FY27, compared with 27% in Q4 FY26 and 24% in Q3 FY26, driven by continued investments in products, merchant distribution, and servicing of device merchants.
Revenue from financial services distribution demonstrated robust growth, increasing 45% year-on-year to ₹814 crore. As reported by Paytm, merchant loan distribution remained the biggest growth driver, with more than half of disbursements coming from repeat borrowers. The company also reported better monetisation from consumer loans, equity broking and wealth products. This strong performance in financial services revenue contributed significantly to the overall growth trajectory and supported the company's diversified revenue streams beyond traditional payments.
Consumer payments recorded significant growth with customer UPI Gross Transaction Value (GTV) rising 45% year-on-year to ₹5.9 lakh crore during the quarter, more than double the industry's growth rate. As reported by Paytm, monthly transacting users (MTUs) increased by 60 lakh from a year ago to 8 crore. 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. AI-led personalisation is driving higher engagement and revenue per active customer across equity broking, MTF and wealth products. The growth was primarily driven by the company's Payment Services business, where revenue climbed 33% YoY to ₹1,384 crore, supported by higher merchant payment volumes and the continued expansion of its payments ecosystem.
According to Ace Equity data, Paytm is among 12 companies in the NIFTY 500 index that have posted net profit growth of over 50% in Q1 FY27. The company's revenue from operations was up 66% to ₹1,501 crore in the June quarter, while on a consolidated basis, profit after tax came in at ₹220 crore, up 79% YoY. At an operational level, EBITDA stood at ₹971 crore in Q1 FY27, marking a 100.85% surge from ₹483 crore in the June quarter of FY26. The strong performance positions Paytm alongside other notable companies like TVS Motor, Punjab National Bank, and Groww that have demonstrated exceptional quarterly results in the current financial year.
