One97 Communications, the parent company of Paytm, reported a mixed performance for the first quarter of FY27, with robust growth in its core payments business offset by a decline in marketing services revenue despite increased spending on promotions and customer acquisition.

During the April–June quarter, Paytm’s marketing services revenue fell 3% year-on-year to Rs 239 crore, compared to Rs 246 crore in the corresponding period last year. In contrast, its payments services business continued to gain momentum, with revenue rising 33% to Rs 1,384 crore, highlighting the growing strength of the company’s core fintech operations.

To support customer acquisition and retention, Paytm increased its marketing investments. Marketing expenses climbed 27% year-on-year to Rs 79 crore, up from Rs 62 crore in Q1 FY26. The company said the higher spending has already begun delivering results through improved customer retention and sustained market share gains.

Overall, Paytm delivered a strong financial performance during the quarter. Operating revenue increased 31% year-on-year to Rs 2,440 crore, while EBITDA surged 182% to Rs 203 crore. Net profit also grew significantly, rising 79% to Rs 220 crore, reflecting improved operational efficiency.

The company noted that other income declined to Rs 182 crore, primarily due to lower returns on investments following cumulative repo rate cuts over the past year. It expects this income stream to remain broadly stable through FY27.

Paytm ended the quarter with a healthy cash balance of Rs 13,529 crore, an increase of Rs 657 crore from a year ago. The company said it remains well-capitalised and is evaluating both organic and inorganic growth opportunities while maintaining a disciplined approach to capital allocation.

With strong profitability, a growing payments business and a robust cash position, Paytm continues to strengthen its long-term growth strategy despite softer performance in its marketing services segment.