Paytm Q1 Results: Merchant GMV jumps 31% to ₹7.1 lakh crore; board defers bonus issue

Fintech major One97 Communications Ltd (Paytm) on Monday (July 20) reported continued growth across its payments business, with merchant gross merchandise value (GMV) rising 31% year-on-year to ₹7.1 lakh crore during the June quarter.

Paytm reported a 79% year-on-year increase in consolidated net profit to ₹220 crore for the quarter ended June 30, 2026, compared with ₹123 crore in the corresponding period last year. On a sequential basis, net profit rose 20% from ₹183 crore in the March quarter.

Revenue from operations increased 28% year-on-year to ₹2,448 crore during the April-June quarter, up from ₹1,918 crore a year ago. On a quarter-on-quarter basis, revenue grew 8%.

The company also said its customer Unified Payments Interface (UPI) gross transaction value (GTV) increased 45% year-on-year to ₹5.9 lakh crore, more than double the industry's 20% growth rate. It said its monthly transacting users (MTUs) increased by 60 lakh year-on-year to 8 crore, while the number of merchants on subscription plans rose by 27 lakh to 1.57 crore.

Net payment revenue, excluding the Payments Infrastructure Development Fund (PIDF) incentive, increased 25% year-on-year to ₹601 crore on a comparable basis. On a reported basis, net payment revenue rose 13% year-on-year.

Paytm said the growth in merchant GMV accelerated from 27% in the March quarter and 24% in the December quarter to 31% in the June quarter, driven by investments in products, distribution and servicing of device merchants. The company also said it has started witnessing momentum in its online merchant business after receiving the online payment aggregator licence last year.

The company said its Soundbox network has expanded to 1.57 crore storefronts, with 27 lakh net devices added year-on-year. According to the company, higher merchant retention, improving payment processing revenue and loan distribution revenue have contributed to better merchant monetisation and payback periods.

Paytm's cash balance stood at ₹13,529 crore at the end of the quarter, up ₹657 crore year-on-year. The company clarified that this excludes customer funds held by Paytm Money Limited (PML) and balances in escrow or nodal accounts but includes the pre-funded balance in escrow from Paytm Payments Services Limited (PPSL).

The company said other income declined year-on-year to ₹182 crore, attributing the decline to lower reinvestment yields following 125 basis points of repo rate cuts during the previous year. It expects other income to remain broadly stable through FY27.

Depreciation and amortisation declined 21% year-on-year to ₹131 crore, largely due to lower device costs. The company expects depreciation and amortisation for FY27 to be in the range of ₹550 crore to ₹600 crore, while stating that capital expenditure has become more efficient despite adding, replacing and upgrading devices for high-value merchants.

Board decisions

Separately, the board approved an additional investment of up to ₹100 crore in its wholly owned subsidiary Paytm Money Limited through a rights issue. The investment will support technology investments, regulatory capital requirements, and the expansion of its investment and wealth management businesses, subject to necessary approvals.

IPO proceeds

The board also approved a proposal to seek shareholders' approval to revise the utilisation of the remaining IPO proceeds. As of July 20, 2026, ₹1,686 crore out of the ₹2,000 crore originally earmarked for investments in new business initiatives, acquisitions and strategic partnerships remained unutilised.

The company has proposed using the remaining balance interchangeably under the existing IPO objects, including strengthening Paytm's ecosystem through customer and merchant acquisition, retention, and technology-led financial services. It has also proposed extending the utilisation timeline for these funds to March 31, 2029, subject to shareholders' approval through a special resolution at the upcoming Annual General Meeting (AGM).

The board also decided not to proceed with a proposed bonus issue after reviewing the proposal. It said the company will continue to focus on compounding growth and profitability for long-term shareholder value creation.

In another board decision, Amitabh Kumar Singhal was appointed as an Additional Director under the category of Non-Executive Non-Independent Director, effective July 20, 2026. The board has also recommended his appointment as a director liable to retire by rotation, subject to shareholders' approval at the forthcoming AGM.

The company said Singhal is a former Senior Vice President of Google Search with expertise in computer science. He is currently the founder of the Sitare Foundation and Sitare University.

Shares of One 97 Communications Ltd ended at ₹1,348.00, up by ₹0.55, or 0.041%, on the BSE.