– Marks a year of disciplined compounding driven by market share gains, expansion in payment processing margins and AI-led operating leverage
– Gained UPI consumer market share every single month in FY 2026, with consumer UPI GTV growing 2.2 times the industry growth
– Distribution of financial services revenue grew 37% YoY to ₹750 Cr in Q4 FY 2026, reflecting a high-growth, high-margin engine
– Gained UPI consumer market share every single month in FY 2026, with consumer UPI GTV growing 2.2 times the industry growth
– Distribution of financial services revenue grew 37% YoY to ₹750 Cr in Q4 FY 2026, reflecting a high-growth, high-margin engine
Paytm (One 97 Communications Limited), India’s full stack merchant payments leader serving MSMEs and enterprises, and a leading financial services distribution company, and the pioneer of mobile payments, QR codes, and Soundbox, today announced its financial results for the quarter and fiscal year ending March 2026 (Q4 and FY 2026), marking an important milestone as Paytm achieved full-year profitability for the first time, with PAT of ₹552 Crore. This performance reflects a year of disciplined compounding driven by market share gains across both consumer and merchant payments, expansion in payment processing margin, scaling distribution of financial services, and continued AI-led operating leverage.
In Q4 FY 2026, operating revenue stood at ₹2,264 crore, up 18% YoY on a reported basis and 26% YoY on a comparable basis. Revenue momentum continued, led by market share gains in both merchant and consumer payments, and growth in distribution of financial services. Contribution profit stood at ₹1,254 crore, up 17% YoY on a reported basis and 31% YoY on a comparable basis, with contribution margin at 55%. EBITDA for the quarter stood at ₹132 crore with an EBITDA margin of 5%, reflecting an improvement of ₹330 crore YoY on a comparable basis.
Paytm's consumer UPI GTV grew 46% YoY in Q4 FY 2026, at 2.2x industry growth levels of 21% YoY, with Paytm gaining market share every single month for the last 12 months. Average Monthly Transacting Users (MTU) expanded by 50 lakh YoY to 7.7 Crore. Merchant GMV growth also accelerated sequentially, rising from 24% YoY in Q3 FY 2026 to 27% YoY in Q4 FY 2026, driven by continued product innovation and disciplined execution.
Payment services revenue was ₹1,265 Crore in Q4 FY 2026. Net payment revenue was ₹583 crore, up 25% YoY on a comparable basis, driven by expansion in payment processing margin and an increase in merchant subscriptions. Subscription merchants reached 1.51 Cr, with 27 lakh net additions YoY. Payment processing margin continued to trend comfortably above 4 bps, supported by higher growth of profitable MDR-bearing instruments including credit cards on UPI and affordability offerings such as EMI.
In Q4 FY 2026, distribution of financial services revenue grew 37% YoY to ₹750 Crore. Customers availing financial services through Paytm's platform increased from 5.5 Lakh to 7.5 Lakh YoY. Paytm Postpaid continued to scale well in monthly sign-ups and disbursements, deepening user engagement and serving as a funnel for cross-selling additional consumer credit products. The company also improved monetisation across equity broking, Margin Trade Funding and other wealth products including Paytm Gold, with AI-powered offerings expected to drive further growth.
The company continues to embed AI across its platform to improve revenue growth, reduce costs, manage risk, and enhance user and merchant engagement for small and medium businesses. AI-led innovations across consumer products, merchant tools, payments intelligence and operations are driving productivity gains and supporting operating leverage.
Indirect expenses were down 3% YoY at ₹1,122 crore, reflecting disciplined cost control even as Paytm continued to invest in platform expansion. Cash balance increased to ₹13,315 crore as of March 2026, providing continued capital flexibility to expand the business.
For FY 2027, Paytm expects acceleration in revenue growth and further expansion in EBITDA margins. This is expected to be driven by expansion of merchant payments, consumer lifecycle monetisation, scaling distribution of financial services, and continued AI-led operating leverage.