Paytm Q1 Results: Net Profit Surges 79%; Board Decides Against Bonus Issue

One97 Communications Ltd, the parent company of fintech platform Paytm, has decided not to proceed with a proposed bonus issue of equity shares. The company's Board has choosen instead to prioritise compounding growth and profitability to create long-term shareholder value.

The decision was announced alongside the company's financial results for the quarter ended June 30, 2026, which showed continued improvement in profitability and operating performance.

Paytm reported a consolidated net profit of ₹220 crore for the June quarter, up 79% year-on-year from ₹123 crore and 20% higher sequentially.

Revenue from operations rose 28% year-on-year to ₹2,448 crore, while EBITDA reached a record ₹203 crore, with margins expanding to 8%.

Board Defers Bonus Issue

Explaining its decision, the company said the Board reviewed the proposal from the perspective of long-term shareholder returns before deciding against issuing bonus shares at this stage.

"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. Accordingly, the board decided not to proceed with the said proposal at this time," Paytm said in a regulatory filing on Monday, as per PTI.

The move reflects a conservative capital allocation strategy as the company consolidates its profitability while retaining financial flexibility to invest in growth opportunities.

Payments And Financial Services Drive Growth

Paytm's merchant gross merchandise value (GMV) increased 31% year-on-year to ₹7.1 lakh crore, supported by investments in merchant products, distribution and servicing, as well as growing traction in its online merchant business following the receipt of its online Payment Aggregator licence last year.

Consumer UPI gross transaction value (GTV) rose 45% year-on-year to ₹5.9 lakh crore, more than twice the industry's growth rate, while monthly transacting users increased by 60 lakh to 8 crore.

The merchant subscription base also expanded, with the company's Soundbox network reaching 1.57 crore storefronts after adding 27 lakh devices over the past year.

Revenue from financial services distribution grew 45% year-on-year to ₹814 crore, driven by continued expansion in merchant lending, improving consumer loan trends and higher monetisation across equity broking and wealth management products.

Board Approvals And Capital Allocation

The Board approved an additional investment of up to ₹100 crore in wholly owned subsidiary Paytm Money Ltd through a rights issue to support technology investments, regulatory capital requirements and the expansion of its investment and wealth management business.

The company will reportedly seek shareholder approval to revise the utilisation of the remaining ₹1,686 crore from its IPO proceeds and extend the deployment timeline until March 31, 2029.

In addition, the Board approved the appointment of Amitabh Kumar Singhal as an Additional Director (Non-Executive, Non-Independent), subject to shareholder approval at the forthcoming annual general meeting.