The report highlighted Paytm’s growing market share in UPI payments, noting consistent gains in both transaction volume and value, ahead of peers who have seen a decline in recent months. “Paytm has shown a consistent increase in its volume and value share over the last two months, standing at 7% and 5.8%, respectively. This is in stark contrast to its biggest competitor, which has experienced a continuous decline in market share over the last two months. This achievement, without much spending on marketing, highlights the resilience of Paytm’s business model,” said the report.
Mirae Asset’s analysts expect Paytm’s revenue to grow at a CAGR of 21% over FY25-FY30, supported by margin expansion driven by AI-led efficiencies and operational leverage. The company’s EBITDA margin is projected to reach 8.7% by FY27 and 14.6% by FY28, as it maintains its guidance of achieving 15–20% EBITDA margins over the next 3-4 years.
According to Mirae Asset’s report, Paytm has delivered a 63.2% return over the past year and 13.8% year-to-date, driven by operational efficiencies, positive earnings momentum, and sustained growth across key business segments. The report notes that Paytm’s EBITDA turned positive in Q1 FY26, reflecting effective cost optimisation and disciplined spending. Marketing expenses dropped by 39% quarter-on-quarter, even as the platform continued to expand organically through innovative, product-led growth.
Apart from strengthening its leadership in fintech, Paytm also relaunched its postpaid service as a bank-led Credit Line on UPI in partnership with Suryoday Small Finance Bank. The revamped product retains the ease of Buy Now, Pay Later (BNPL) while aligning with the UPI framework, creating new growth avenues across the merchant network.
With strong fundamentals, expanding financial services offerings, and a focus on sustainable profitability, Paytm continues to stand out as one of India’s most promising digital finance companies. Moreover, the company’s emphasis on targeted cost management, strategic marketing, and efficiency improvements through AI adoption is expected to drive future profitability.
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