Paytm is targeting sustained long-term profit growth as the fintech company looks to accelerate revenue, expand its consumer and merchant businesses and leverage artificial intelligence (AI) to drive operating efficiencies.
In a message to shareholders in the company’s Annual Report 2026, Paytm Founder & CEO, Vijay Shekhar Sharma said the business has become sustainably profitable, giving the company greater confidence to increase investments behind growth.
“Our business is now sustainably profitable, with strong momentum across our consumer and merchant businesses, giving us the confidence to invest profitably more than ever before,” Sharma said.
He attributed the shift to years of execution, customer focus and the company’s efforts to build a business model capable of combining growth with profitability.
According to Sharma, Paytm is positioned for long-term sustainable profit growth, supported by a large addressable market, accelerating revenue growth and AI-led operating leverage that is expected to contribute to EBITDA margin expansion.
Merchant business drives profitability
Payments continue to form the foundation of Paytm’s business, while its merchant ecosystem has emerged as the company’s largest profit contributor.
Sharma said Paytm has built India’s largest merchant payments business, with the model now fully proven. The company remains deeply integrated into merchants’ day-to-day operations and intends to continue investing in technology and services to support merchant growth.
“Most of our profits are generated through our merchant business,” Sharma said, adding that Paytm will continue to invest in the segment as it seeks to expand its growth opportunity.
Consumer business gains market share
On the consumer side, Paytm said it continues to grow at more than twice the pace of the UPI market and has gained market share for five consecutive quarters.
The company’s consumer monetisation initiatives are also beginning to deliver stronger results, with acceleration across its businesses, according to Sharma.
Paytm is also stepping up its focus on wealth management, covering equity broking, margin trade facilities and mutual fund distribution. The company expects the wealth business to become a meaningful contributor to revenue and profitability over the coming years.
AI to shape next phase of growth
Sharma said Paytm’s technology DNA will remain central to its evolution, even as payments and financial services have become its core businesses.
AI is now emerging as a key driver of the company’s next phase of development, with Paytm investing in AI across internal processes, products and merchant and consumer journeys.
The company is also developing AI-led capabilities aimed at improving operational efficiency, enhancing customer experiences and creating new revenue opportunities.
International expansion underway
Paytm’s international business is also beginning to take shape as the company takes its merchant payments technology, financial services capabilities and business model into select overseas markets.
Sharma said the company sees significant monetisation potential in these markets and will pursue expansion with disciplined execution and capital allocation.
As Paytm scales, governance and profitable growth will remain central to its strategy. Sharma said the company is focused on strengthening its Board, improving operating discipline and maintaining a business model capable of generating sustainable growth from its own economics.
“We will grow our consumer and merchant ecosystem, expand financial services distribution, and build for the AI era,” Sharma said.
He added that Paytm now has an opportunity to build on the strengths developed over the years and create the next generation of businesses for the company