Paytm posts fifth consecutive quarterly profit, revenue rises 28%; board shelves bonus issue

One97 Communications, the parent company of Paytm, reported its fifth consecutive quarter of net profit, posting a 79% year-on-year (YoY) growth in consolidated profit after tax to ₹220 crore for the quarter ended June 30, 2026, as growth in its payments business, merchant subscriptions, and financial services distribution continued to gather pace.

The Vijay Shekhar Sharma-led fintech major had reported a net profit of ₹123 crore in the same period last year, while profit stood at ₹183 crore in the March quarter. The latest earnings build on Paytm's first-ever full-year profit of ₹552 crore reported for FY26.

Revenue from operations increased 28% YoY to ₹2,448 crore in Q1 FY27 from ₹1,918 crore a year earlier. Total expenses stood at ₹2,383 crore, while profit before tax nearly doubled to ₹247 crore from ₹126 crore in the year-ago period.

According to the Noida-based company, the strong quarterly performance was driven by rising payment activity, continued adoption of its Soundbox devices by merchants, and increased revenue from the distribution of financial products, including personal and merchant loans.

Board drops bonus issue proposal

Alongside its quarterly results, the company's board decided not to proceed with the proposed bonus share issue that was scheduled for consideration.

In its quarterly earnings release, Paytm said the board evaluated the proposal with a focus on creating long-term shareholder value and concluded that strengthening the company's growth trajectory and profitability should remain the priority.

"After evaluating the proposal from the perspective of long-term shareholder value and due deliberation, the Board was of the view that the Company should continue to focus on further compounding growth and profitability for shareholder value creation," the company said.

"Accordingly, the Board decided not to proceed with the said proposal at this time," it added.

The decision comes after Paytm had informed stock exchanges that its board would consider a proposal for issuing bonus shares alongside the June quarter results, raising expectations of what could have been the company's first bonus issue since its listing in 2021.

To infuse up to ₹100 crore into Paytm Money

The board of One97 Communications also approved an investment of up to ₹100 crore in its wholly owned subsidiary, Paytm Money Ltd, through a rights issue, as the fintech company steps up investments in its wealth management and broking business.

The proposed capital infusion, subject to the necessary approvals, will be used to support Paytm Money's growth plans, including technology investments, meeting regulatory capital requirements, and expanding its investment and wealth management offerings, the company said in an exchange filing.

Paytm Money, incorporated on September 20, 2017, offers a range of investment and wealth management services, including stock broking, mutual fund distribution, and other financial products. The company reported a turnover of ₹212.95 crore in FY26, up 23% from ₹172.93 crore in FY25, reversing the decline recorded in FY24, when its revenue stood at ₹194.11 crore.