Paytm Q1 reviews: Net profit jumps 79%, here's what brokerages say
Paytm Q1 reviews: Goldman Sachs has assigned a Buy call to Paytm with a target price of Rs 1,500.
- Jul 21, 2026,
- Updated Jul 21, 2026 8:57 AM IST
One97 Communications, the parent company of Paytm, reported a strong set of earnings for the quarter ended June 30, 2026, with consolidated net profit rising 79% year-on-year to Rs 220 crore, driven by sustained momentum in its payments business, merchant subscriptions and financial services distribution.
The fintech company had posted a consolidated net profit of Rs 123 crore in the corresponding quarter last year. On a sequential basis, profit increased from Rs 183 crore reported in the March 2026 quarter. The latest performance builds on Paytm's first-ever annual profit of Rs 552 crore in FY26.
Revenue from operations climbed 28% year-on-year to Rs 2,448 crore during the April-June quarter, compared with Rs 1,918 crore in the same period last year. Total income rose to Rs 2,630 crore from Rs 2,159 crore, reflecting broad-based business growth across key segments.
Profit before tax nearly doubled to Rs 247 crore from Rs 126 crore a year earlier. Total expenses for the quarter stood at Rs 2,383 crore.
The company attributed the improved financial performance to higher payment transaction volumes and values, continued expansion of its merchant base through Soundbox subscriptions, and increasing contribution from financial services distribution, including personal and merchant loans.
Paytm said merchant subscription growth remained robust as more businesses adopted its payment devices, while rising demand for credit products distributed through its platform supported growth in its financial services business.
In a separate development, the company's board approved an investment of up to Rs 100 crore in its wholly owned subsidiary, Paytm Money, through a rights issue. The fresh capital will be used to strengthen the platform's technology infrastructure, meet regulatory capital requirements and accelerate the expansion of its investment and wealth management offerings.
The board also cleared a proposal to seek shareholder approval for revising the utilisation of the remaining Rs 1,686 crore in unutilised IPO proceeds. The company has proposed extending the utilisation deadline to March 31, 2029, providing greater flexibility to deploy the funds across strategic growth initiatives.
According to Paytm, the revised utilisation plan will enable the company to invest more effectively in expanding its payments and financial services ecosystem while capitalising on emerging business opportunities.
Brokerages on Paytm
Goldman Sachs has assigned a Buy call to Paytm with a target price of Rs 1,500.
Paytm logged an acceleration in revenue growth in 1QFY27 & reported a meaningful beat on EBITDA (+20% vs Goldman Sachs estimates).
Within the payments segment, growth was driven by market share gains in both offline and online, with latter a function of ability to onboard new merchants starting late last year.
Additionally, strong traction in merchant loan distribution has sustained, while scale up of consumer products such as postpaid is likely to continue to keep revenue growth elevated.
The brokerage forecasted 27% YoY revenue growth in FY27 for Paytm (against 22% in FY26), with EBITDA more than doubling on a YoY basis.
CITI assigned a Buy call to the stock as target price raised to Rs 1560. Q1 EBITDA at Rs 200 crore beat estimates (+16% vs Citi) on in-line revenue (+28% YoY) & contribution profits (55% of revenue), largely owing to lower indirect costs (cloud) and higher loan distribution (merchant), which offset lower net payment margins (device rentals).
CLSA assigned a target price of Rs 1050. Q1FY27 EBITDA of Rs 200 crore was marginally ahead of its Rs 190 crore estimates.
One97 Communications, the parent company of Paytm, reported a strong set of earnings for the quarter ended June 30, 2026, with consolidated net profit rising 79% year-on-year to Rs 220 crore, driven by sustained momentum in its payments business, merchant subscriptions and financial services distribution.
The fintech company had posted a consolidated net profit of Rs 123 crore in the corresponding quarter last year. On a sequential basis, profit increased from Rs 183 crore reported in the March 2026 quarter. The latest performance builds on Paytm's first-ever annual profit of Rs 552 crore in FY26.
Revenue from operations climbed 28% year-on-year to Rs 2,448 crore during the April-June quarter, compared with Rs 1,918 crore in the same period last year. Total income rose to Rs 2,630 crore from Rs 2,159 crore, reflecting broad-based business growth across key segments.
Profit before tax nearly doubled to Rs 247 crore from Rs 126 crore a year earlier. Total expenses for the quarter stood at Rs 2,383 crore.
The company attributed the improved financial performance to higher payment transaction volumes and values, continued expansion of its merchant base through Soundbox subscriptions, and increasing contribution from financial services distribution, including personal and merchant loans.
Paytm said merchant subscription growth remained robust as more businesses adopted its payment devices, while rising demand for credit products distributed through its platform supported growth in its financial services business.
In a separate development, the company's board approved an investment of up to Rs 100 crore in its wholly owned subsidiary, Paytm Money, through a rights issue. The fresh capital will be used to strengthen the platform's technology infrastructure, meet regulatory capital requirements and accelerate the expansion of its investment and wealth management offerings.
The board also cleared a proposal to seek shareholder approval for revising the utilisation of the remaining Rs 1,686 crore in unutilised IPO proceeds. The company has proposed extending the utilisation deadline to March 31, 2029, providing greater flexibility to deploy the funds across strategic growth initiatives.
According to Paytm, the revised utilisation plan will enable the company to invest more effectively in expanding its payments and financial services ecosystem while capitalising on emerging business opportunities.
Brokerages on Paytm
Goldman Sachs has assigned a Buy call to Paytm with a target price of Rs 1,500.
Paytm logged an acceleration in revenue growth in 1QFY27 & reported a meaningful beat on EBITDA (+20% vs Goldman Sachs estimates).
Within the payments segment, growth was driven by market share gains in both offline and online, with latter a function of ability to onboard new merchants starting late last year.
Additionally, strong traction in merchant loan distribution has sustained, while scale up of consumer products such as postpaid is likely to continue to keep revenue growth elevated.
The brokerage forecasted 27% YoY revenue growth in FY27 for Paytm (against 22% in FY26), with EBITDA more than doubling on a YoY basis.
CITI assigned a Buy call to the stock as target price raised to Rs 1560. Q1 EBITDA at Rs 200 crore beat estimates (+16% vs Citi) on in-line revenue (+28% YoY) & contribution profits (55% of revenue), largely owing to lower indirect costs (cloud) and higher loan distribution (merchant), which offset lower net payment margins (device rentals).
CLSA assigned a target price of Rs 1050. Q1FY27 EBITDA of Rs 200 crore was marginally ahead of its Rs 190 crore estimates.