One 97 Communications Limited (PAYTM) — Financial Results | 27 July 2026

Paytm reported accelerating growth with 28% YoY revenue increase in Q1 FY2027, driven by strong consumer payments and merchant expansion. EBITDA margins are projected to exceed 15-20% within 2-3 years, up from current levels, supported by AI-driven efficiency and operating leverage. The company added 25-30 lakh merchants annually, with payment processing costs rising slightly to 11.2 bps due to higher non-UPI volume. Cash reserves stand at INR 13,500+ crores, enabling capital allocation to high-ROI organic initiatives and selective inorganic deals. AI model optimization reduced token costs by 95% and eliminated call center expenses, while indirect costs declined as revenue grew faster. Merchant lending contributes 80-20 to profits, with disbursements at INR 25-30K crores monthly. Subscription revenue lags GMV growth but monetization improves with shorter payback periods. The board added three independent directors with tech, business, and finance expertise to support scaling. UPI monetization remains non-material, though potential take rate changes (5-7 bps) could benefit bottom line. Long-term margin expansion beyond current levels is targeted, with financial services emerging as a high-upside segment despite modest customer additions.