Paytm CEO Vijay Shekhar Sharma has revealed an ambitious target of building a cash balance of ₹40,000 crore, which would represent nearly 50% of the company's current market capitalisation of around ₹81,000 crore. As reported by CNBC TV18, this target would make Paytm's cash pile equal to nearly half its market cap, signaling a conservative capital strategy for the fintech giant. The company's current cash balance of ₹13,529 crore at the end of Q1 FY27 already represents significant financial strength, with the company growing this balance by ₹657 crore year-on-year.
Paytm shares gained 2.7% to ₹1,383 on the BSE on Tuesday following the company's robust Q1 results. The fintech company reported a 79% year-on-year jump in consolidated net profit to ₹220 crore for the quarter ended June 30, 2026, compared with ₹123 crore in the year-ago period. Revenue from operations rose 28% YoY and 8% QoQ to ₹2,448 crore from ₹1,918 crore, with sequential growth of 8% from ₹2,264 crore in the March quarter. The growth was led by the company's payment services business, where revenue climbed 33% YoY to ₹1,384 crore, supported by higher merchant payment volumes and continued expansion of its merchant ecosystem. Total income for the quarter stood at ₹2,630 crore, up 22% from ₹2,159 crore a year earlier, while profit before tax came in at ₹247 crore, compared with ₹143 crore in the year-ago quarter and ₹173 crore in the March quarter.
As reported by Upstox, One97 Communications reported a 79% year-on-year rise in consolidated net profit to ₹220 crore for the quarter ended June 30, 2026. Revenue from operations increased 28% year-on-year and 8% QoQ to ₹2,448 crore, while EBITDA came in at ₹203 crore, up 182% YoY and 54% QoQ. The company's merchant gross merchandise value (GMV) grew 31% to ₹7.1 lakh crore, with GMV growth accelerating to 31% YoY during the quarter, up from 27% in Q4FY26 and 24% in Q3FY26. The improvement was attributed to investments in products, merchant distribution and servicing of device merchants. Paytm's operating performance strengthened significantly, with reported EBITDA surging 182% YoY to ₹203 crore from ₹72 crore a year earlier, while EBITDA margin expanded to 8% from 4%. Excluding the impact of the government's PIDF incentive, comparable EBITDA rose to ₹195 crore from ₹18 crore a year ago, with comparable EBITDA margin improving to 8% from 1%.
According to Business Standard, founder, CMD and CEO Vijay Shekhar Sharma said the company was looking at artificial intelligence (AI)-led monetisation in the ongoing financial year, adding that some early use cases had started generating some revenue. He categorised this as a "non-payments" and "non-financial services" side of revenue for the firm. These use cases would end up serving the merchant-side of Paytm's business, Sharma explained. "We tune our own model, place on our own infra and then run it... (it ends up with) low latency and low cost of tokens, low inference costs, run and operated by us. We remove the cost of the call centre and the cost, which otherwise you would have bought from outside, and we have optimised and added a skill to us. We will sell it to people outside," Sharma said. Meanwhile, Sharma emphasised that having a strong balance sheet is crucial, noting that fintech companies in the ecosystem were finding discomfort on both sides of the funding market, going public brings one set of pressures while staying private another.
According to Upstox, Goldman Sachs has reiterated its 'Buy' rating and increased its target price to ₹1,500 (11% upside) from ₹1,430, citing stronger revenue growth and improving profitability. The brokerage noted that Q1 FY2027 was a strong quarter that warranted earnings upgrades, with growth driven by market share gains in both online and offline payments, continued strength in merchant loan distribution, and potential UPI MDR implementation as key growth drivers. Goldman Sachs also highlighted that revenue rose 28% YoY in Q1 while EBITDA margin expanded to 8.3% from 5.8% in Q4, indicating continued operational improvements. CITI has a 'Buy' rating and raised its target price to ₹1,560 from ₹1,425, noting that Q1 EBITDA at ₹200 crore beat estimates by 16% while revenue was in line with estimates. The firm raised its estimates and highlighted that the performance was largely supported by lower indirect costs, including cloud costs, and higher merchant loan distribution, which offset lower net payment margins from device rentals. CLSA has maintained its 'Underperform' rating with a target price of ₹1,050 (22% downside), noting that Paytm's Q1 EBITDA of around ₹200 crore was slightly ahead of estimates, aided by stable contribution margins and lower fixed costs. However, CLSA cautioned that payment take rates moderated during the quarter and trimmed its FY27-FY29 EBITDA estimates by 2-3% due to expectations of higher operating expenses.
