Paytm's lending revenue jumps to ₹2,594 Cr as payments growth slows
In FY26, Paytm's financial services distribution reached ₹2,594 Cr, accounting for 31% of its ₹8,437 Cr topline, as the firm returned to profit with a net gain of ₹552 Cr. In Q1 FY27, operating revenue climbed 28% to ₹2,448 Cr and merchant GMV rose 31% to ₹7.1 lakh Cr, signalling continued momentum.
Payment services remained the largest segment at 58% of revenue, expanding at a 19% CAGR between FY21 and FY26. Paytm exited entertainment ticketing, scaled back e‑commerce ambitions and sharpened its focus on payments and financial services. Payment processing margins stayed above four basis points and subscription merchant deployments reached 1.57 crore storefronts. Paytm offsets the lack of UPI fees by offering merchant loans, insurance and point‑of‑sale device subscriptions. Paytm's super app approach now targets active payments users and merchants instead of chasing every consumer.
Paytm started as a digital wallet, expanded into a payments leader powered by UPI, and two years ago pivoted to lending after facing challenges with its payments bank. The move lifted Paytm to a net profit of ₹552 Cr in FY26, reversing a ₹663 Cr loss the prior year. Plans to introduce a 0.4% MDR fee on high‑value UPI transactions have been delayed, leaving the zero‑MDR framework in place.
What we know
Payment services brought in ₹1,981 Cr of its ₹2,802 Cr operating revenue in FY21, about 71%.
It now makes up 31% of the ₹8,437 Cr topline.
More importantly, in FY26, the company reported a net profit of ₹552 Cr against a ₹663 Cr loss in FY25.
In Q1 FY27, operating revenue rose 28% to ₹2,448 Cr YoY, so the company is on pace to stretch its profitability in FY27 too.
Merchant GMV rose 31% year on year to ₹7.1 Lakh Cr in Q1 FY27.