One97 Communications (PAYTM) Q4 25/26 earnings summary

Executive summary

• Strong growth in payments and financial services, with payments contributing 55% and financial services 30% of revenue for the year ended March 31, 2026.

• Audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, were approved, with an unmodified audit opinion from the statutory auditors.

• Merchant loans and personal loans showed robust traction, with personal loan disbursements recovering and expected to contribute more in the next quarter.

• Wealth management and brokerage are being positioned as the third pillar of growth, with a focus on increasing market share.

• AI-driven product innovation is a key strategic focus, with investments aimed at enhancing customer and merchant experiences.

Financial highlights

• Consolidated revenue from operations for FY26 was INR 8,437 crores, up from INR 6,900 crores in FY25; Q4 FY26 revenue was INR 2,264 crores.

• Consolidated net profit for FY26 was INR 552 crores, compared to a net loss of INR 663 crores in FY25; Q4 FY26 net profit was INR 183 crores.

• Payment processing margins improved from over 3 to over 4 basis points year-over-year, driving 50-60% growth in payment processing margin.

• GMV for payments grew 27% compared to the same quarter last year.

• EBITDA margin ended the year at about 6%, with a medium-term aspirational target of 15-20%.

Outlook and guidance

• Revenue growth acceleration is expected in FY 2027, driven by recovery in marketing services and continued growth in payments and financial services.

• EBITDA margin expansion is anticipated over the next 2.5 to 3 years, with significant operating leverage expected.

• Management continues to monitor regulatory and legal developments, including labor code changes and ongoing regulatory matters.

• No material capital investment planned for AI; focus is on leveraging existing infrastructure and partnerships.