One97 Communications (PAYTM) investor relations material

Executive summary

• Strong growth in payment processing margins and GMV, with payment processing margin up over 50% year-over-year and GMV up 27% compared to the same quarter last year.

• Financial services, especially merchant and personal loans, showed robust traction and are expected to be major growth drivers in the coming year.

• Marketing services revenue declined in FY26 but is expected to recover and contribute to growth in FY27.

• AI-driven product enhancements and agentic interfaces are being prioritized for both consumer and merchant engagement.

• 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.

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.

• EBITDA margin ended the year at about 6%, with management reiterating a medium-term target of 15%-20% within 2.5 to 3 years.

• Contribution margin guidance is between 55%-60%, with operating leverage expected to drive further margin expansion.

• Cash and cash equivalents (consolidated) increased to INR 3,285 crores as of March 31, 2026, from INR 2,077 crores a year earlier.

Outlook and guidance

• Revenue growth acceleration is expected in FY27, driven by recovery in marketing services and continued strength in payments and financial services.

• Management expects significant operating leverage and EBITDA margin expansion over the next year.

• No plans to pursue an NBFC license; focus remains on distribution and technology partnerships with lenders.

• Any new inorganic investments will be focused on AI, not on international expansion or large CapEx.

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