Paytm’s parent company One97 Communications share price traded 0.56% higher during the early trade on July 21 after the company reported its highest-ever quarterly EBITDA, backed by strong growth across merchant payments, financial services and consumer payments. SBI Securities said the quarterly performance points to sustained earnings momentum.
Record EBITDA and profit mark a strong quarter
One97 Communications reported revenue of Rs 2,448 crore for the June quarter, up 28% year-on-year, while EBITDA surged 182% to a record Rs 203 crore. Profit after tax climbed 79% to Rs 220 crore, supported by higher payment volumes, expanding financial services revenue and operating efficiencies driven by AI. The company said EBITDA margin expanded to 8% during the quarter.
Merchant payments business continues to gather pace
Merchant Gross Merchandise Value (GMV) rose 31% year-on-year to Rs 7.1 lakh crore as One97 Communications added more merchants across offline and online channels. Net payment revenue increased 25% on a comparable basis to Rs 601 crore, while payment processing margin remained comfortably above four basis points. Merchant subscriptions reached 1.57 crore after the addition of 27 lakh devices over the past year.
Financial services revenue climbs 45%
Revenue from financial services distribution increased 45% year-on-year to Rs 814 crore. Merchant loan distribution remained the biggest growth driver, with more than half of disbursements coming from repeat borrowers. The company also reported better monetisation from consumer loans, equity broking and wealth products.
Consumer payments outpace industry growth
Paytm’s consumer UPI business maintained its expansion, with customer UPI Gross Transaction Value rising 45% to Rs 5.9 lakh crore, more than double the industry’s growth rate. Monthly transacting users increased by 60 lakh over the past year to reach 8 crore, helped by product improvements and customer engagement initiatives.
SBI Securities: Quarterly performance indicates earnings momentum
According to SBI Securities, Paytm’s quarterly numbers indicate healthy earnings momentum, supported by expanding profitability across payments and financial services as the company continues to strengthen its operating performance.
Conclusion
Paytm entered FY27 with its strongest quarterly EBITDA on record, alongside sharp growth in revenue, profit, merchant payments and financial services. Early gains in the stock suggest the market has responded positively to the earnings update, while the company continues to build on higher payment volumes, stronger monetisation and improving profitability.
