One97 Communications (PAYTM) Q1 26/27 earnings summary

Executive summary

• Achieved accelerated revenue growth across merchant and consumer segments, with market share gains in UPI and strong performance in Postpaid and financial services.

• Record quarterly EBITDA of ₹203 Cr, up 182% year-over-year and 54% sequentially, with EBITDA margin expanding to 8%.

• Daily active user and transaction KPIs surpassed January 2024 benchmarks, signaling recovery and renewed growth momentum.

• Board approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, and key corporate actions including director appointment and investment in a subsidiary.

• Added new independent board directors, enhancing governance and expertise in technology, business, and finance.

Financial highlights

• Consolidated revenue from operations for Q1 FY27 was INR 2,448 crores, up from INR 1,918 crores in Q1 FY26, with 28% year-over-year growth.

• EBITDA margin reached 8% this quarter, up from 1% last year, with a 7 percentage point improvement year-over-year.

• PAT increased 79% YoY to ₹220 Cr; comparable PAT (excluding PIDF) up 207% YoY to ₹212 Cr.

• Payment processing revenue up 33% YoY; financial services distribution revenue up 45% YoY.

• Marketing and sales expenses increased 27% year-over-year, yet margins improved due to operating leverage and AI efficiencies.

Outlook and guidance

• Confident in achieving 15%-20% EBITDA margin in the next 2-3 years, with potential for structurally higher margins long-term.

• Revenue growth acceleration expected to continue, supported by expansion in both merchant and consumer businesses.

• Postpaid business ramping up at twice the previous pace, expected to meaningfully contribute to revenue and EBITDA by FY 2028.

• Board seeks shareholder approval to allow flexible use of remaining IPO proceeds between ecosystem growth and new business initiatives.

• Continued investment in AI, consumer and merchant expansion, and financial services to drive future growth.