Paytm marketing spend up 27% to Rs 79 Crore in Q1 FY27

Paytm has reported a mixed operational performance in the first quarter of FY27, with robust growth in its high-margin payments business offset by continued weakness in its marketing services segment despite higher promotional outlays.

Revenue from marketing services declined 3% year-on-year to Rs 239 crore in the April-June quarter, compared with Rs 246 crore in the same period last year. In contrast, payment services revenue grew 33% to Rs 1,384 crore from Rs 1,044 crore a year ago, reinforcing the payments business as the company's primary growth engine.

To strengthen customer acquisition and retention, Paytm increased its marketing investments during the quarter. Marketing expenses rose 27% year-on-year to Rs 79 crore, up from Rs 62 crore in Q1 FY26.

"Marketing costs combined with promotional expenses have increased year-on-year, with spends already paying back, reflecting in improved retention and continued market share gains," the company said in its quarterly shareholder report.

Despite the pressure on marketing services revenue, Paytm delivered a strong overall financial performance. Operating revenue rose 31% year-on-year to Rs 2,440 crore, while EBITDA more than doubled, increasing 182% to Rs 203 crore from Rs 72 crore in the corresponding quarter last year. Net profit also climbed 79% to Rs 220 crore, compared with Rs 123 crore a year earlier.
The company said other income stood at Rs 182 crore in Q1 FY27, lower than the previous year due to reduced returns from reinvesting maturing investments after cumulative repo rate cuts of 125 basis points over the past year. It expects this income stream to remain broadly stable through the rest of FY27.

Paytm's cash balance stood at Rs 13,529 crore at the end of the quarter, an increase of Rs 657 crore year-on-year, giving the company ample financial headroom to invest in future growth initiatives.

"We do have a large cash balance and want to maintain that position of being very well capitalised. We are working on attractive organic and inorganic opportunities, and are seeing early signs through MTF, etc., for partial use of this capital with high return on investment," the company said.