May 7: Paytm (One 97 Communications Limited), announced its financial results for the quarter and fiscal year ended March 2026 (Q4 & FY26), marking a major milestone with its first-ever full-year profitability.
The company reported a net profit (PAT) of ₹552 crore in FY26, alongside a 22% year-on-year revenue growth to ₹8,437 crore, driven by strong execution across payments, financial services, and AI-led operational efficiencies.
Strong business momentum across payments and financial services
Paytm continued to strengthen its leadership in digital payments, supported by sustained market share gains and improved monetisation:
- Consumer UPI GTV grew 46% YoY in Q4 FY26, outperforming industry growth of 21%
- Gained UPI market share every month throughout FY26
- Monthly transacting users increased by 50 lakh YoY to 7.7 crore
- Merchant GMV growth accelerated to 27% YoY in Q4 FY26
Payment services revenue stood at ₹1,265 crore, with net payment revenue rising 25% YoY (comparable basis), supported by expanding merchant subscriptions and improved processing margins.
Merchant subscription base reached 1.51 crore, with 27 lakh net additions YoY, reinforcing Paytm’s deep penetration across MSMEs and enterprises.
High-growth financial services engine
Distribution of financial services continued its strong growth trajectory:
- Revenue grew 37% YoY to ₹750 crore in Q4 FY26
- Financial services users increased from 5.5 lakh to 7.5 lakh YoY
- Strong momentum in Paytm Postpaid, broking, MTF, and wealth products including Paytm Gold
The segment continues to evolve into a high-margin growth engine, with expanding cross-sell opportunities across credit and investment products.
Profitability driven by operating leverage and cost discipline
Paytm delivered significant profitability improvement through operating leverage and disciplined cost control:
- Contribution profit: ₹1,254 crore (55% margin) in Q4 FY26
- EBITDA: ₹132 crore (5% margin), improving by ₹330 crore YoY (comparable basis)
- Indirect expenses reduced 3% YoY to ₹1,122 crore
- Cash balance strengthened to ₹13,315 crore, enabling strategic flexibility
AI-led transformation powering efficiency and growth
AI continues to be deeply embedded across Paytm’s ecosystem, enhancing:
- Merchant and consumer engagement
- Risk and fraud management
- Payments intelligence and operational efficiency
- Revenue optimisation and cost efficiency
These innovations are driving sustainable operating leverage and productivity gains across the platform.
Outlook for FY27
Paytm expects:
- Accelerating revenue growth
- Further EBITDA margin expansion
- Strong performance in merchant payments
- Scaling financial services distribution
- Continued AI-led efficiency gains
