$PAYTM Paytm has reported strong Q1 FY27 results with net profit up 79% YoY

Paytm has reported strong Q1 FY27 results with net profit up 79% YoY to ₹220 crore, while the Delhi High Court has officially ordered the winding up of Paytm Payments Bank after RBI’s licence cancellation. The company has cut payment processing costs by 35% by shifting UPI operations to private banks, and is now focusing on profitability, new features, and AI-led growth. 📊 Key Financial Highlights Net Profit (Q1 FY27): ₹220 crore, up 79% YoY. Revenue: ₹2,448 crore, up 28% YoY. EBITDA: ₹203 crore, up 182% YoY, with margins expanding to 8%. Merchant GMV: ₹7.1 lakh crore, up 31% YoY. UPI GTV: ₹5.9 lakh crore, up 45% YoY, outpacing industry growth of 20%. Cash Balance: ₹13,529 crore, giving Paytm strong liquidity for organic growth and acquisitions. ⚖️ Regulatory Update Delhi High Court: Ordered winding up of Paytm Payments Bank after RBI cancelled its licence in April 2026. Reason: Persistent non-compliance and operations deemed detrimental to depositors’ interests. Impact: Paytm shifted backend operations to Axis, HDFC, and Yes Bank, reducing processing costs by 35%. 🚀 New Features & Services Split Bills Feature: Allows users to track and settle group expenses via UPI, cards, or cash. ₹11 ITR Filing Service: Partnership with ClearTax to offer low-cost tax filing through the Paytm app. FASTag & Wallet Distribution: Expanded product offerings to maintain competitiveness. 📌 Strategic Outlook Profitability Focus: Cost savings and AI-led monetisation are driving Paytm toward sustainable profits. AI Integration: Early use cases in merchant services are generating revenue. Acquisition Plans: Open to inorganic growth if valuations are attractive, but prioritising organic expansion. ⚠️ Risks & Considerations Regulatory Pressure: RBI’s strict stance on compliance remains a key risk. Revenue Dip: FY25 saw a 20% revenue decline due to the Payments Bank transition, though FY26-27 recovery is strong.