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Paytm reports 79% profit rise in Q1 on AI-driven growth

Paytm posted a 79% year-on-year jump in profit to ₹220 crore in the first quarter of fiscal 2027, driven by strong revenue growth and improved operating leverage.

Paytm posted a 79% year-on-year jump in profit to ₹220 crore in the first quarter of fiscal 2027, driven by strong revenue growth and improved operating leverage. Operating revenue rose 27.6% to ₹2,448 crore, while EBITDA surged 182% to a record ₹203 crore, according to inc42.com. Total expenses increased 18.2% to ₹2,383 crore during the quarter.

The fintech company attributed its robust performance to four key growth drivers: accelerating merchant payments, compounding merchant loans, expanding consumer payments, and enhanced B2C monetisation through wealth products. Paytm credited the deployment of artificial intelligence across core workflows for unlocking operating leverage and improving profit margins. The payments segment contributed over half of the total revenue, benefiting from stronger merchant gross merchandise value growth, better processing margins, and device-led expansion.

Paytm’s financial services vertical also saw healthy growth, supported by increased credit and wealth distribution. Both merchant and personal loan disbursements rose, while new monetisation avenues such as equity broking, margin trading funding, and gold products boosted high-margin engagement. The company’s AI integration helped scale user base and improve retention on the consumer side, reinforcing its position in India’s competitive fintech market.

The fintech major’s Q1 results reflect sustained momentum in its core businesses, with payments and lending driving growth. Paytm’s next quarterly earnings release is scheduled for October 2026, when investors will assess whether the AI-led gains continue to support profitability and revenue expansion.

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