Paytm Q1 net profit rises 79% in FY27

Fintech company Paytm has registered a 79% rise in net profit for the first quarter of FY27, while revenue grew 28%, on the back of broad-based growth across all business segments.

However, the stock markets have not reacted positively to these numbers. Paytm's stock price was down 2.14% on the National Stock Exchange on Tuesday morning trading.

The company reported a net profit of Rs 220 crore for the first quarter of FY27 compared to Rs 123 crore a year ago. Revenue touched Rs 2,448 crore, compared to Rs 1918 crore in the similar period a year ago.

Paytm attributed the first-quarter performance to the expansion of the merchant payments business, which accelerated market share gains and led to an increase in GMV (gross merchandise value). The performance was also driven by continued growth in the offline business and tailwinds in the online business, the company said.

According to the company, the merchant loan distribution continues to compound, led by a growing base, while AI-led capabilities drove gains in merchant engagement, retention, risk insights for partners, and strong collection efficiency. It said product innovation and AI optimised consumer acquisition resulted in market share gains in the consumer payment segment for five consecutive quarters.

Consumer monetisation saw strong growth led by distribution of postpaid service, personal loans, and wealth products.

On the role of artificial intelligence, Paytm said it has developed function specific models and agents by fine-tuning open source models to achieve higher efficiency and productivity.

A large addressable TAM and AI-led operating leverage have positioned Paytm for long-term sustainable profit growth, said the company.

The payment services business, which is the highest contributor to Paytm’s revenue at 56%, saw a 32% increase at Rs 1,384 crore. Revenue from distribution of financial services was Rs 814 crore, while revenue from marketing services was Rs 239 crore.