{"id":182449,"date":"2026-05-07T00:04:15","date_gmt":"2026-05-07T04:04:15","guid":{"rendered":"https:\/\/alphastreet.com\/india\/one97-communication-ltd-paytm-q4-2026-earnings-call-transcript\/"},"modified":"2026-05-07T00:07:13","modified_gmt":"2026-05-07T04:07:13","slug":"one97-communication-ltd-paytm-q4-2026-earnings-call-transcript","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/one97-communication-ltd-paytm-q4-2026-earnings-call-transcript\/","title":{"rendered":"One97 communication Ltd (PAYTM) Q4 2026 Earnings Call Transcript"},"content":{"rendered":"

Note:<\/strong> This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.<\/em><\/p>\n

One97 communication Ltd (NSE: PAYTM) Q4 2026 Earnings Call dated May. 07, 2026<\/span><\/strong><\/p>\n

Corporate Participants:<\/h2>\n

Anush Mittal<\/strong> \u2014 Investor Relations<\/em><\/p>\n

Vijay Shekhar Sharma<\/strong> \u2014 Chairman, Managing Director and Chief Executive Officer<\/em><\/p>\n

Madhur Deora<\/strong> \u2014 President and Group Chief Financial Officer<\/em><\/p>\n

Analysts:<\/h2>\n

Unidentified Participant<\/strong><\/p>\n

Manish Adukia<\/strong> \u2014 Analyst<\/em><\/p>\n

Sachin Salgaonkar<\/strong> \u2014 Analyst<\/em><\/p>\n

Pranav Kshatriya<\/strong> \u2014 Analyst<\/em><\/p>\n

Vijit Jain<\/strong> \u2014 Analyst<\/em><\/p>\n

Jayant Kharote<\/strong> \u2014 Analyst<\/em><\/p>\n

Unidentified Participant<\/strong><\/p>\n

Piran Engineer<\/strong> \u2014 Analyst<\/em><\/p>\n

Sachin Dixit<\/strong> \u2014 Analyst<\/em><\/p>\n

Unidentified Participant<\/strong><\/p>\n

Presentation:<\/h2>\n

Anush Mittal<\/strong> \u2014 Investor Relations<\/em><\/p>\n

Good morning everyone. Thank you for joining and welcome to paytm’s earnings call to discuss our financial results for the quarter and year ending March 31, 2026. We will start off all with Q A after introduction to the management from PTM’s management. We have with us Mr. Vijay Shekhar Sharma, Founder and CEO Mr. Madhur Deora, President and Group CFO and Mr. Anush Mittal, SEP Investor Relations. A few standard announcements before we begin. The information to be presented and discussed here should not be recorded, reproduced or distributed in any manner.<\/p>\n

Some statements today may be forward looking in nature. Actual events may differ materially from those anticipated in such forward looking statements. Finally, this earnings call is scheduled for 45 minutes. A replay of this earnings call and transcript will be made available on the company’s website. Subsequently, if you seek to ask a question, kindly utilize the raised hand feature on your zoom dashboard. Please ensure that your name is visible as your name, last name followed by your company name for us to be able to identify you.<\/p>\n

We will unmute your line and take questions in the respective sequence of the raised hands. I would request if on folks can limit their questions to do. We will start a Q and A now. Just waiting for the queue to line up.<\/p>\n

Vijay Shekhar Sharma<\/strong> \u2014 Chairman, Managing Director and Chief Executive Officer<\/em><\/p>\n

Hi, good morning. I think with this. Thank you for joining us. Early in the morning and like I’ll say it all the time, you may not switch on the video because I understand this is early in the morning. That’s very very much fine. Keeping the tradition. We are in the switch on video and at the same point in time. This time we change the earning release. We try to make it crisper. We try to make it simpler. We try to bring about what is important and our communication style to tune a little more about how.<\/p>\n

How we believe that it should be read. So I’m sure you will have feedback. Love to get the feedback and we will tune accordingly. I hope you like the one. Right now with me is Madhuri here and we can start. Thank you.<\/p>\n

Anush Mittal<\/strong> \u2014 Investor Relations<\/em><\/p>\n

Thanks Vijay. The first question will be from Mr. Manisha Dukia from Goldman Sachs. Manish, you may unmute your line and please ask a question.<\/p>\n

Questions and Answers:<\/h2>\n

Unidentified Participant<\/strong><\/p>\n

It’s not adding.<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

Hey Manish, you can talk now.<\/p>\n

Anush Mittal<\/strong><\/p>\n

I think we’re facing some technical difficulty. Please allow us. Okay. Manish is here.<\/p>\n

Manish Adukia<\/strong><\/p>\n

Hi, good morning. Thank you. Sorry it took me a while to get in the room. Morning Vijay. Morning. It’s good to see you and thank you for taking my question. First one. Maybe just on the guidance a bit more color on the revenue growth acceleration that you’ve talked about in fiscal 27. Now I understand that you know F26 you had double digit decline in your marketing services revenue growth. So how much of the guidance acceleration in F27 is just a function of marketing services revenue growth recovering versus you probably also seeing an acceleration in revenue growth across payments and financial services.<\/p>\n

And maybe a related question also on the EBITDA margins. I know in the past you’ve talked about medium term aspirational margin of 15 to 20% EBITDA and you have ended the year at about 6% with very strong expansion. Qualitatively how far away are we from getting to that 1520% EBITDA margin number? That’s my first set of question. Please<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

Talk about marketing services. Marketing services and cloud and commerce. If you remember all this combined we call marketing services because we help small merchant large merchants about making sure they get a from checkout to check in. I mean we call these services that once the customer is checking out on the shop or counter or online the customer comes back thanks to a agents. This is the area of focus for us in the next 12 months and let’s see how we do it. I do believe that it is an extraordinary big opportunity considering we’ve been able to take care of our core payment and financial services.<\/p>\n

So it was rather about choose what is your mode, head down, execute it and then extend towards next slide. If you read the intent in our AI page it is hinting towards that.<\/p>\n

Madhur Deora<\/strong><\/p>\n

But just to add, I think the overall acceleration given payments is about 55% of the revenue and financial services about 30% of the revenue. To answer, I think the short answer to your question is it is across the board we are seeing strong tailwinds in payments both in offline merchants as well as online merchants which obviously have the full license now and is adding new customers and so on. And we are also seeing very good growth in financial services. As we have mentioned before, merchant loans continues to be solid and we are now seeing recovery in personal loan and market share growth in wealth.<\/p>\n

So in addition to what Vijay said about marketing services and sort of drugs to your question. Yes, we expect that to be a contributor going forward. It has been a bit of a drag last year but we think the growth will be across the board. EBITDA we will maintain about two and a half to three years from now that we should be able to get to those sorts of EBITDA margins.<\/p>\n

Manish Adukia<\/strong><\/p>\n

Very clear. Thank you Madhuran. Vijay, maybe second question on financial you touched upon in the earlier question and I know you Stopped giving out dispersal number but from the postpaid launch that you made earlier. If you can just talk about the traction this time versus the earlier postpaid is the traction in terms of ramp up of the product scale or dispersal tracking better or similar versus the last iteration. Any differences in consumer traction that’ll be great to<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

Yeah Manish better than last time. Classic Internet dissemination or diffusion of services style. It did. It took X number of time this is taking X by a significant large number and so it’s. I mean I’m really happy we would not give this first ones. I think this pushes us towards as if that we are a credit issuing entity which we are not. So we are a pure technology platform which helps different people distribute. This is the nearest most ajaxn product to our payment and I think it is doing phenomenally well.<\/p>\n

I’m not using say it is doing well. I’m going to use the word phenomenally well and I’m very happy about it that on the back of it our personal loan disbursements in last month, I mean this will show up in the next quarter have started showing up. I mean we have started to go back to. If you read a particular text of personal loan disbursement it is not that we are any more measured about or limited about it, it is rather going next level.<\/p>\n

Madhur Deora<\/strong><\/p>\n

And just to remind everyone this is a classic compounding business because our signups are very strong and repeat rates are very strong so it just sort of compounds upwards as you sort of just go through time. So we’re seeing that sort of compounding traction and is significantly faster as you can imagine from the first time we started the postpaid journey.<\/p>\n

Manish Adukia<\/strong><\/p>\n

Sure. Just a quick clarification on that one and I know you don’t give dispersals but I recall last time when you used to give dispersal the peak of the disbursal for Postpaid was about 9,000 crores a quarter and given that you’re saying that the ramp up is actually faster no reason why you should not get to the number at some point in time in the foreseeable future. I mean would that be a fair statement?<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

No comments towards any guidance of hint of it.<\/p>\n

Manish Adukia<\/strong><\/p>\n

All right, great. I tried maybe just last question before I just jump back in the queue. PPBL ban. I know you’re an associate, it’s an associate for you. You don’t have any management control there but in terms of just any early impact on your listed entity ocl just because you share a common brand in terms of consumer merchant acquisition or churn and what does that mean now from your own wallet or prepaid instrument application to the RBI and the outlook for that. That’s my last question. Thank you.<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

I think no impacts. We did it in press earning release on the system and we remain committed.<\/p>\n

Manish Adukia<\/strong><\/p>\n

Sure. And wallet license<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

We remain committed<\/p>\n

Manish Adukia<\/strong><\/p>\n

To. Okay, sure. Thank you. Vijay Madhur, all the best and thanks for taking my questions.<\/p>\n

Anush Mittal<\/strong><\/p>\n

Thanks Manish. The next question we’ll take from Mr. Sachin Salgankar from GofA followed by Pranav Kshatriya from MK Sachin, you may please go ahead.<\/p>\n

Sachin Salgaonkar<\/strong><\/p>\n

Thanks Anandita. Good morning management. First question, generally a follow up. You know, when we look about growth accelerating in FY27 there are multiple other small businesses which are yet to scale up. Wealth management, brokerage, mortgage insurance, even on the personal loan basis. Any color in terms of. I mean should we see a good amount of acceleration coming from these businesses scaling up or it’s the existing merchant loan business Soundbox as well as the core payments business which will help accelerate the growth in a very simplistic manner.<\/p>\n

Should the core business show acceleration of growth or should we see a combination of both actually.<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

So first of all the business model is straight and simple that we acquired customers using payments and we cross sell financial services. We’ve done good in credit. We definitely are right now focused on wealth or wealth or securities brokerage. Whatever the line item that we want to call combined into one wealth item, it is critical for us to make it a third leg of growth. It is. It may not and I’ve said it in last earning call that we want to see ourselves in top five sooner than later and that remains a focus area individually for me also.<\/p>\n

In other words, I’m saying that payment has to scale because that is the tam. So there is no alternate to that. We will keep investing. If you notice, we have very clearly articulated the amount of invested in expansion amount in creation. So our cost optimization is rather about creation of the product and platform of payments because the cost is much lesser than that and continue to reduce. But the attention is more about expanding that platform to a dramatic large enough optimum time. A dramatic large from today optimum because we don’t want to acquire everyone that is the word I’m using.<\/p>\n

So it is an obligation. And right now we are so happy seeing the monetization cycle showing up that that is the primary opportunity of it. In fact over the period PDM could be looked at as the payment platform that monetized in financial services over<\/p>\n

Madhur Deora<\/strong><\/p>\n

But such a message you should take away is it is more or less across the board. Our large established businesses, we see huge opportunity ahead. We love our merchants online and offline. Last year online had a headwind that we did not have permission to onboard new customers for about half the year. That’s lifted. We’re seeing good traction there offline. Obviously there’s huge market opportunities still ahead. I know this is a very popularly asked question which is, hey, you have added X number of merchants.<\/p>\n

Do you still see growth ahead? Absolutely. We are seeing market expansion and we are seeing market share growth. So that’s going really well. So that’s one bucket of large established, overall profitable businesses. The second bucket is businesses which had scaled but had some headwinds in the last couple of years. So advertising, because of our MTU and app revamp had a headwind. Personal loans had a headwind because of credit cycle, a lot of that is turning into tailwinds from a slightly lower base.<\/p>\n

And then the third one they’ve been you said is where is the third pillar? And the third pillar we think is in wealth. And there I would characterize that as a slightly different business where we are younger and have low market share with great opportunity to increase market share. And these are proven businesses. So that’s why, well, sort of retail broking, if you will, gets filtered to the top. So those are sort of the three legs of revenue growth and we’re quite excited about each one of those three buckets.<\/p>\n

Sachin Salgaonkar<\/strong><\/p>\n

Great, thanks for the detailed answer. My next question is a statement you mentioned in your shareholders letter that you’re looking to keep some dry powder for selective inorganic action. Now on a really big picture basis, how could we think about this? Any specific areas in the current business you are looking to focus, Is it more on international alliance or is it any kind of a new opportunity which is going to open given the fact that AI could open up doors for new businesses as well.<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

AI. Any new investment only in AI. Sorry,<\/p>\n

Sachin Salgaonkar<\/strong><\/p>\n

Any.<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

Any new investment only in AI.<\/p>\n

Sachin Salgaonkar<\/strong><\/p>\n

Oh, in. Only in AI. Okay. And you know, I mean Vijay, and when we talk about AI, is it something which is going to help the existing businesses or it could be a completely new line of business? Actually<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

No, it’s primarily the same customer, same merchant, primarily making their life better. Like I told last Manisha’s question that we believe there will be significant amount of opportunity for us to create agents and so on.<\/p>\n

Sachin Salgaonkar<\/strong><\/p>\n

So. Got it. And last, just a bit of a follow up on this RBI thing where what kind of further permissions licenses are we expecting from RBI One is wallet which is largely known but beyond wallet is there anything which is pending per se from a RBI point of view where you guys have applied? And Vijay, any timeline when we could expect the wallet license?<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

I rather put head down and execute journey. There is so much on the plate and table that I would say that M is behind us.<\/p>\n

Sachin Salgaonkar<\/strong><\/p>\n

Okay, great. Thanks and all the best.<\/p>\n

Anush Mittal<\/strong><\/p>\n

Thanks Ashen. We’ll take the next question from Pranav Kshatriya from MK followed by Vijit Jain from City Pranav, please go ahead.<\/p>\n

Pranav Kshatriya<\/strong><\/p>\n

My first question is you know, regarding the higher promotional and cashback incentives. So we’ve seen this expense going up quarter on quarter but you know, correspondingly we’ve not really seen any jump in the marketing services. I understand this is a seasonally lean for marketing services but there is no increase in the MTU as well. So how should we see this, you know, trending and what is the you know, timeline for it to give outcome?<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

I think it is the marketing services where you sort of expect let’s say our commerce line items to do the good job but it is also going in expansion and cleanup of our existing customers trying towards other services beyond just marketing services. For example like there is digital gold on our platform, there is element of deal discount gift vouchers. We believe that strengthening the mode of customers and locking in on our platform is a first priority which is what the payments core job is and we do acquire customers.<\/p>\n

I mean it’s a 2 choice to put that we can continue to acquire incremental, costly, incremental lower cost customer who is not in the ecosystem. And the cost of that is that you will not have large users because the new incremental customer left in the ecosystem is a very low tronnecting or low value customer if you will. So we are trying to acquire high quality, good quality customers so the increase in spend will consistently go up, but it will not go up in the ratio of what you could just recklessly spend.<\/p>\n

So we have been measured and we remain measured in spending but at the same point in time we are conscious about which kind of quality of customer are we getting and what purpose the customer is coming. So there these things go through quarter on quarter measurements and recalibrations at the same point in time. I’m committing this once again that we will continue to spend it not more than what the ratios have been right now like we have always said it. So it is not an incremental exercise spend at all.<\/p>\n

First of all it is within the guidance we have given at the same point in the usage of this money will continue to calibrate towards which service is what we continue to do it.<\/p>\n

Madhur Deora<\/strong><\/p>\n

Just a couple of tactical things to just contextualize. One is you have to look at it sort of like marketing expenses and cash back together because some of those are decisions that the teams make in terms of where they want to spend their marketing dollars. The second is while the MTU number may not reflect all the impact of this spend, but if you look at our engagement, that has gone up dramatically. So the market share growth that you’re seeing is far exceeding, if you will, MTU growth. To underline the point that Vijay mentioned about quality of customers and engagement of customers and take a step back.<\/p>\n

If we were to break our business into consumer side and merchant side, we have had the best quarter from a profitability standpoint on the consumer side in the last eight quarters. So it is flowing down to the bottom line despite these additional spends.<\/p>\n

Pranav Kshatriya<\/strong><\/p>\n

Okay, fantastic. My second question is regarding indirect cost. So, you know, typically Q1 will have, you know, higher employee cost on account of appraisals and salary hikes. So how should it trend from here on? Should we, should we expect that to remain in current, you know, 1150 thereabouts, or it can be significantly higher than that.<\/p>\n

Madhur Deora<\/strong><\/p>\n

So there are quarter on quarter changes, particularly including the impact of appraisals. But if we look outwards towards the next year, we do think that, like we have said, this will grow significantly lower than revenue and contribution profit growth and continued operating leverage as a result of that. And the second point I would make is that we still see efficiencies in various parts of the organization due to use of AI.<\/p>\n

Pranav Kshatriya<\/strong><\/p>\n

Okay, excellent. From my side. I’ll get back in queue. Thank you so much.<\/p>\n

Madhur Deora<\/strong><\/p>\n

Thank you.<\/p>\n

Anush Mittal<\/strong><\/p>\n

The next question is from Vijayan from Citi, followed by Jayant Karoti from AccessCapt.<\/p>\n

Vijit Jain<\/strong><\/p>\n

Yeah, thank you. Can you hear me?<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

Yep.<\/p>\n

Vijit Jain<\/strong><\/p>\n

Yeah, hi, thank you. My first question is, you know.<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

Oh, he’s going to rejoin WebNow as a panelist, I think. I.<\/p>\n

Vijit Jain<\/strong><\/p>\n

Hi, can you hear me now?<\/p>\n

Anush Mittal<\/strong><\/p>\n

Yes,<\/p>\n

Vijit Jain<\/strong><\/p>\n

Yeah, sorry, I think, yeah. So my first question is on net payment margins. Good to see, you know, 9 basis point overall you’ve said that it’s remained above 4 basis points despite the PIDF subsidies. And on going away, looking ahead, what would you call the major drivers for it continuing to go up? I know you have various streams, merchant fees, instant settlement. I don’t know if you’re deploying working capital towards instant settlement. And then of course you have upi Credit and emi. So I just wanted to get your sense on all three or four different drivers where you still think there is decent upside and how do you get those upsides?<\/p>\n

Are these going to be more push driven or just organically will happen?<\/p>\n

Madhur Deora<\/strong><\/p>\n

I think there’s a whole bunch of smaller factors, but the two major factors, especially when we think about payment processing margin, which is what we have said is higher than 4 bips, the two major factors are our product improvements giving us the luxury of having pricing discipline. So we have talked about pricing discipline in the presentation, but the underlying piece is that our product keeps getting better and better and as a result customers, merchants in this case are seeing more value in our product.<\/p>\n

And the second is just a shift in the industry which is credit instruments being on UPI rails and growing at much faster pace than overall GMB. So we talked about credit credit card on UPI before. Obviously PayTM postpaid is starting to be a contributor as well. Still, still relatively smaller compared to a couple of years ago, but becoming a contributor as well. And if you can have a small, even a small percentage of your GMP giving you 20, 30, 40bps of margin, then obviously it does change the overall mix significantly.<\/p>\n

Vijit Jain<\/strong><\/p>\n

Got it. So Madhu, safe to say there are plenty of upside drivers to those core net payment margins right from what is right now greater than 4 basis points. Thank you. And then specifically on some of these, you know, a lot of your merchants are obviously in the, you know, long tail, mid market side of things. And I would imagine, you know, things like I think settling the balances faster and so on and so forth is potentially more useful thing to those kinds of merchants than to larger merchants.<\/p>\n

Is that, is that a, is that a product that has a lot of success and adoption from merchants? Just want to get a sense of, you know, whether you see more avenues for where you could deploy your capital. It gets you some fees and is, you know, useful to your merchants as well.<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

We do settlement as a product. It’s a, it’s a good product. It’s a nice, it’s an industry product. We do it.<\/p>\n

Vijit Jain<\/strong><\/p>\n

Got it. The next question I had was on PAYTM Money. So in general, you know, are there any product investments that you still need to do within PAYTM Money to kind of, you know, make the proposition more compelling to heavy users, traders versus say investors. Any. I’m just trying to get a sense of whether there are gaps there.<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

Short answer dramatic more. I mean, obviously the AI is changing everything, my friend. I mean the agents will show up that will do trading. Agents will take care of your portfolio readjustment. Agents will show up. The trading strategy of yours will be reviewed. Agent will create optional chain for you. Agent will create scalper. I mean there is, I would rather say I feel lucky that we did not dump a lot of money earlier because in the AI world everything resets. So we see it as an opportunity of bringing some product that is materially metal for from now to 2030.<\/p>\n

I mean the point is what got created in 2020 is not going to work in 2030. That I can write it. So anybody who’s not investing is an opportunity for us. That person’s customers.<\/p>\n

Vijit Jain<\/strong><\/p>\n

Got it. And Vijay, so just sticking to that point a little bit more. So what you’re talking about is consumer facing experience of how you trade. Is there anything on the back end also that you need to invest in to be, to be able to serve?<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

I mean rather consumer facing is going to get easier because you will not tap, tap, tap, tap, tap, tap.<\/p>\n

Vijit Jain<\/strong><\/p>\n

So<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

Everything is a backend investment. I mean everything is the core investment machine. Anything that shows up in the front, it is only as good as it is in the back.<\/p>\n

Vijit Jain<\/strong><\/p>\n

Understood? Understood. My last question, you know, any comments on how PAYTM check in has done since you’ve launched it? I think it’s been a few quarters. This is<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

So, so, so this is our dip test that how Indian consumers are okay for an interface that is chat interface, agent interface, completely identic. So it’s our perfect experiment to look at it and we picked up a different brand name so that people don’t perceive that okay, this is what popped out or something. It is completely identic approach towards consumer interfaces. I see agentic interface as rejuvenated new opportunity for PAYTM to gain consumer shares in dramatic in number of categories.<\/p>\n

Vijit Jain<\/strong><\/p>\n

Okay. And<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

This is our experiment.<\/p>\n

Vijit Jain<\/strong><\/p>\n

Good to hear. Thank you.<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

One side note.<\/p>\n

Vijit Jain<\/strong><\/p>\n

Yeah.<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

You will be shocked. The funnel conversion on agent tech when a customer starts it typically is 2 or 3% in a funnel that starts with a commitment is the customer can be browsed. But funnel converts meaning 100 people if they’re searching it goes to 3%. In a good scenario, good product company would do that. I mean it’s seven or eight times more than that, my friends. Seven or eight times more. It is 700% better funnel because of agentic. I mean boom.<\/p>\n

Vijit Jain<\/strong><\/p>\n

So people go closer to transaction complete<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

More. Seven times more people complete the funnel in agentic workflow than a tap workflow.<\/p>\n

Vijit Jain<\/strong><\/p>\n

Okay, good to hear. Yeah, thank you so much. Best of luck for FY27.<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

Thank you.<\/p>\n

Anush Mittal<\/strong><\/p>\n

Thank you. We’ll take the next question from Jaya from Active Capital followed by Kaushik Agarwan.<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

Oh, I think it forces people if I end them so I got it.<\/p>\n

Anush Mittal<\/strong><\/p>\n

Hi Jayant.<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

No, no, I just made him a panelist and because you can get someone else. I’m not. Am I audible?<\/p>\n

Jayant Kharote<\/strong><\/p>\n

Hello.<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

Yeah, yeah you are. I<\/p>\n

Jayant Kharote<\/strong><\/p>\n

Don’t know how got promoted to panelists. So anyways, congratulations for great performance on financial services guys. First question was on the payments piece. I see you have done very strong growth over there. If I see this quarter versus last year, fourth quarter, both your GMV is up 27% and the margins are moving from that’s more than three to more than four basis points. That actually throws up a very high growth number on the payment processing margins. More like 50, 60%. Is this a real number or are we missing something?<\/p>\n

I mean that is quite high growth in entertainment processing. So<\/p>\n

Madhur Deora<\/strong><\/p>\n

Just to be clear, our guidance earlier was greater than 3, which is not to say that we were exactly at 3. But the math that you’re doing while adjusted for that number is correct that our payment processing margin has been very strong.<\/p>\n

Jayant Kharote<\/strong><\/p>\n

Great. Now unfortunately what that implies is that subscription revenue is not grown at all. Yoyo and this is despite us adding 27 lakh devices which is 22% on our base. Is that because a lot of these would have gone for PIDF linked devices. And then of course, how do we think about this without any price hike it means the device addition is not fully translating to revenue growth.<\/p>\n

Madhur Deora<\/strong><\/p>\n

So it is the case that PIDF has an impact and it is also the case that adjusted for even. Sorry, without adjusting for that the device subscription per device overall is slightly lower. But we do see this as a very good funnel to merchant lending. So what we look at internally is payback periods at a very very detailed cohort level and those payback periods are improving significantly. And part of that is also because we are getting more efficient at acquiring customers at our CapEx per device as well as retention of merchants.<\/p>\n

Jayant Kharote<\/strong><\/p>\n

But does that mean because we have two strong pillars in the net payment revenues, does that mean that essentially looking ahead, it’s going to be largely net payment processing margin that’s going to do the heavy lifting on this revenue line item.<\/p>\n

Madhur Deora<\/strong><\/p>\n

It is the case that payment processing margin is growing faster and because payment partly because payment processing margin is growing faster, but combined with the fact that our lending penetration is going up, we are okay to make a little bit less money on device. Device Subscription per merchant.<\/p>\n

Jayant Kharote<\/strong><\/p>\n

Agree. And just one follow up on that only that the credit card on UPI growth. You’ve seen the whole industry credit card growth is just created right now to single digit. And generally what we’ve been observing is credit card on rupee UPI moves 2x of that number roughly. So that has been like 30% when industry was at 15. Now that industry is down to 7 to 10. Are you observing a similar moderation from that 30 or to 2025? And then of course the worries are GMP growth then moves in sync with credit card on rupee UPI and then how does the margin expansion happen?<\/p>\n

Madhur Deora<\/strong><\/p>\n

What you’re saying logically should have some impact but I don’t think we’re seeing anything noticeable there. I mean I would point out that credit card and UPI is still very small. Very, very small percentage of overall credit card. But<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

One thing we can tell that our credit card on UPI percentage is more than the standard bank account payment percentage. That tells that we have a higher quality customers on our app.<\/p>\n

Jayant Kharote<\/strong><\/p>\n

Definitely that has been giving a very good margin improvement. Improvement<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

Is rather about because we have a high quality. I mean PTM has been ever since and all these events have still made the customers retain means they are long old customers and that means that they are high quality which extends towards credit worthiness which extends towards their credit card usage. Our credit card usage is more than the market share an order of magnitude once again. I mean that is why our JV growth has been higher. Because if you notice the same number of MDU didn’t grow but usage grew because the product became better.<\/p>\n

Product became better for the customers who are better quality customers. So we talk about product quality, customer quality, not just the volume.<\/p>\n

Jayant Kharote<\/strong><\/p>\n

Great. And lastly on costs and margin we are guiding for more than 22% growth and if I’m correct now contribution margins we should expect between 55 to 60 but maybe more 55 to rather than 60. What, what was happening because of the PIDF impact. So that I mean and then indirect costs I’m seeing after a great performance for eight quarters is rightfully so. Your investing in growth is is picking up. So does that mean that from here on the journey is going to be incremental rather than what we saw last year?<\/p>\n

If you see Q4 versus Q3 registered EBITDA growth is a decent 30 crore. But does it mean we should look at something more linear now than the exponential numbers that we saw through last year?<\/p>\n

Madhur Deora<\/strong><\/p>\n

I assume you’re talking about EBITDA margin. Like we said in writing, we do expect significant operating leverage going forward because logically the math that you were doing, if we have a revenue growth acceleration which you’re confident of and indirect expenses growing significantly lower than just the math is just embedded in that that you would see significant operating leverage going forward.<\/p>\n

Jayant Kharote<\/strong><\/p>\n

I was just talking about the journey, Madhur. Is it, is it going to be upfronted or should we now think of this to be slightly more back ended? I don’t<\/p>\n

Madhur Deora<\/strong><\/p>\n

Want to get into quarter on quarter but if we are sitting here a year from now we’re confident that we would see, we would have, we’ll look back and say there was significant operating leverage and EBITDA margin expansion as a result.<\/p>\n

Jayant Kharote<\/strong><\/p>\n

Great. Thanks and congratulations once again for a great set of results. Thank<\/p>\n

Madhur Deora<\/strong><\/p>\n

You.<\/p>\n

Anush Mittal<\/strong><\/p>\n

Thanks Jen. We’ll take the next question from Kaushik Agarwal followed by Rahul Jain from Dollar Capital. Kaushik will go ahead please. You are on mute. If you can unmute your line.<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

You can. Oh. Go ahead. You could ask us the question.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Yeah. Hi, thanks for the opportunity. Firstly, we have highlighted about the investment we intend to do on the cashback side. Can you highlight some of the consumer use cases and also from a run rate point of view do we see a meaningful increase from the exit of 1 billion odd we invested in this quarter?<\/p>\n

Piran Engineer<\/strong><\/p>\n

All right, can you just go to the first question again and quit cash out?<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Yeah. The cashback investment that we want to do, are there any specific areas where we are trying to. Because we highlighted there’s a high margin segment that we would like to invest.<\/p>\n

Madhur Deora<\/strong><\/p>\n

Yeah. So Vijay, I think sort of already touched upon this. Our digital gold is one of those categories and then which, which is covered in financial services just as a housekeeping point and in there are several use cases on marketing services, particularly travel where we see good ROI on investments and then there’s also always a chunk of investment that goes into ensuring that you’re building more engagement and more retention of merch of customers.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Surely. And on the sales headlound side, do we see some more optimization to happen since the sunset on the PIDF scheme?<\/p>\n

Madhur Deora<\/strong><\/p>\n

I think it’s a combat the. It’s a combination of sales optimization as well as subscription revenue per device optimization. We had said last quarter in end of January that we’ll be able to significantly offset it over the next few quarters and our Q4 and I think it was in response to a question was that we would be able to offset 30 to 40%. So I’m pleased to report that we did achieve that and we are confident that over time we’ll be able to significantly achieve near full offset and some of that will show up in sales cost impact.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Sure. And just lastly of course people have tried asking this on the AI investments. Would this could be also in line of creating a captive data center for more data inferencing or this could be purely from an M and a point of view.<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

There is nothing like we don’t have a capex plan on here. I mean there is enough amount of capex that us big guys are doing and we don’t think that we have a game in that yet. We do believe there is an opportunity for us to invest in AI. Equal to like saying let’s say we are using agents for our customers. You can rent somewhere a data center. We can rent let’s say Nvidia’s and then run our own model on top of it. That kind of investment, investment is attention and effort, not just capital. We don’t have a material capital investment plan right now on the table or in plan.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Thank you. Those were my questions.<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

Thank you.<\/p>\n

Anush Mittal<\/strong><\/p>\n

Thank you. We will take the next question from Harshit from Premji followed by Sachin Dixit from JM Financial. You may please unmute your line and go ahead.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Vijay. Hi Madhur. So the question was more to get some sense of our merchant ecosystem base. So I think the the point was that probably we are lending to a segment where they are okay to borrow at that 25, 30% rough IRR for them now and probably obviously I know that you guys don’t give the decision disbursement number but some sort of back calculations etc whatever that number is. But that number is even if I take a 40 50,000 crore of annual run rate we would be a large part of that market itself, the addressable market now.<\/p>\n

So just want to get a sense that our payment service or financial distribution revenue growth from here on will it be driven by the consumer loan product incrementally. And in case of merchants, do you envisage a situation that probably it’s the lower yielding segment where we’ll have to move to expand to maintain this growth run rate. So broadly some color on on the merchant profile and probably your market share within the whatever you guys think as the addressable market share market for this range of merchant lending.<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

The best part is that we don’t own the book. So everybody who wants to serve this customer is our potential partner including banks or anybody else if you want to acknowledge that. So we don’t have a market share Problem because we own certain book versus somebody else owns certain book. They go to the current lenders who are interested in the vendor. We become the channel. Now the most logical captive customer of the customer arc. Merchant where we are capturing everyday payment flow is us most logical.<\/p>\n

Anybody else can also do it. But most logical is us. On our customer base we are penetrated less than 5% or 5.5%. Right now on<\/p>\n

Madhur Deora<\/strong><\/p>\n

Merchant base about 7%. About<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

7%. And that too based on subscription merchant denominator. Remember the person who’s who has a selection bias of paying a subscription, we are talking 7% penetration. All obviously there is a large number of merchant base. Otherwise beyond that we fundamentally. My,<\/p>\n

Unidentified Participant<\/strong><\/p>\n

My point in competition was more from. Yeah, no, my point on competition when I asked was more from the distribution itself. That for example many other players will also have access to that customer over time, if not today. And the engagement, they everyone will try to increase their engagement. So competition as a distribution partner is what I was trying to understand rather than from the lender’s point of view.<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

All right, so the merchant who is our merchant, if that merchant deflects from us as a payment merchant, we don’t think that we would be in a superior state or somebody who does not have that merchant will have a superior state of distributing. So it’s a counter share kind of question as you know that if you. So there are two kind of merchant exclusive to us or non exclusive to us. Only that in a non exclusive case if we are getting a lesser data we anyways are not going to help him get loan unless we have a larger enough payment flow data that we are able to partner with our lender.<\/p>\n

Lender believes that yes, this is good enough. I would like to extend the loan. We don’t, I mean we don’t have again much more to do but to retain a payment purchase and do a good job of distributing and collecting.<\/p>\n

Madhur Deora<\/strong><\/p>\n

And if I if I may just expand the question a little bit just to the building blocks of this. So one is we have the core product of merchant loans which you described is to smaller merchants, smaller ticket size. We’ve been doing it for six years, really, really well. And there as Vijay said, we have about 7% penetration. So huge room to expand that. The second is a TAM expansion story which I think you touched about a little bit harshit on the merchant loan product that we do have types of merchants who may not find our current products or the products that we had in FY26 suitable.<\/p>\n

So those could be larger ticket size loans for Example where like we just said, because we partner with lenders and if lenders want to distribute such loans to them, then we are logical partner for that. So that’s the merchant loan story and slightly more broadly, we expect things like wealth and personal loans to be a much bigger contribution computer next year than before. So what we’re excited about in this financial services line is that there are multiple drivers of growth next year which are quite visible.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Got it, Got it. Fair point. Perfect. Done. Thanks a lot.<\/p>\n

Madhur Deora<\/strong><\/p>\n

Thank you.<\/p>\n

Anush Mittal<\/strong><\/p>\n

Thanks. We will take the next question from P engineer from CLSA followed by Sachin Diksha. That’s okay, you can go ahead.<\/p>\n

Piran Engineer<\/strong><\/p>\n

Yeah. Hi. Hi. Good morning guys. Congrats on the quarter. Just firstly on, on the retail broking thing, you touched upon using AI to sort of grow that business. But firstly, are we targeting customers who don’t have a broking account or are we going after everyone? Because I’m assuming that out of your 7,8 crore active customers a lot would already be broking with one of the incumbent platforms. Right. So how are we thinking about that?<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

We add on both sides, we add customers from both sides. We are netsun dinner and from other platforms and we get new customers.<\/p>\n

Piran Engineer<\/strong><\/p>\n

But then from<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

New customers, mostly new are mostly towards mutual fund and the SIP creations. And typically it, it may be called churn from other platform or customers are okay to have multiple accounts.<\/p>\n

Piran Engineer<\/strong><\/p>\n

But then what’s our value proposition for the core FNO kind of traders versus say a Zerodha or a gross platform. See also I get a sense we analysts are not allowed to trade. But most traders want to be in charge of their trading. Right? They probably don’t want an AI agent to recommend, etc. So I’m not too sure how that strategy will help the core.<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

When we launch the product, you’ll get to see it. I mean there’s nothing more about it. I mean it’s nothing better to say than when it gets launched. I mean there is no, no, no secret spice. I’m going to say something. It’s very visible to everybody. I, I see it as writing on the wall. I see it as, everybody knows that what impact of AI and addition of AI will do to the product for any segment that you want. It’s, it’s as normal as that.<\/p>\n

Piran Engineer<\/strong><\/p>\n

And we will not indulge in price discounting, etc. Right. To gain share there.<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

So always remember our customer equation is payments. This is our monetization layer<\/p>\n

Piran Engineer<\/strong><\/p>\n

Which means that we are okay giving it slightly cheaper. Like if zerodha is doing 20 bucks a trade.<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

I don’t think this is a price question yet. I mean you going now probably the time when we are competing with anybody else for the price you so you see that, you see our pricing. We don’t think the price is a value. We believe product is a value. Pricing is like commodity. Any which ways for anybody to fight for.<\/p>\n

Piran Engineer<\/strong><\/p>\n

Okay.<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

Those who discount their product, they feel that is the value of their product<\/p>\n

Piran Engineer<\/strong><\/p>\n

Fair. Okay. Just secondly a data keeping question. This quarter and last quarter, what is the proportion of DLG in our merchant loan disbursements?<\/p>\n

Madhur Deora<\/strong><\/p>\n

Proportion of DLG is broadly flat. Maybe slightly higher as in proportion of loans that go through deal that comes with DLG is probably slightly higher. The amount of DLG is flat. Flattish.<\/p>\n

Piran Engineer<\/strong><\/p>\n

Should I take it at 20, 25% or a bit higher than that? I<\/p>\n

Madhur Deora<\/strong><\/p>\n

Don’t think we’ve guided that before. And it’s not a metric that honestly we try to sort of keep within certain guardrails or target a certain number. So I’d rather not get into that.<\/p>\n

Piran Engineer<\/strong><\/p>\n

Got it. Okay. And just lastly, can you give us some color on online versus offline growth on the merchant processing side?<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

Online I’d say we’ve started to grow the gmv, we’ve started to farm the account better and we obviously started to add new customers. So there is, I would rather say that online has bigger opportunity now considering there are D2C brands, there are offline people going online than we envisaged a year back that I can say. So we will address and are addressing it accordingly in that approach.<\/p>\n

Piran Engineer<\/strong><\/p>\n

And Vijay, what proportion of our merchant GMV would it be? Now I understand it’s small but like single digit small or<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

No, it’s. I mean I’m sorry, unless<\/p>\n

Madhur Deora<\/strong><\/p>\n

We are very significant player in online merchants despite the<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

Fact that<\/p>\n

Madhur Deora<\/strong><\/p>\n

Until last year we were not really adding new customers for greater than three years. Right. So we’re very significant player there. It is very meaningful double digits gmv. So it’s not single digits. And also dispel that we don’t really look at it as a percent of total because they have independent growth drivers. There’s huge now hunting opportunities as well as farming opportunities in online merchants while maintaining pricing discipline and in the offline merchant base we have very large enterprise business as we have talked about before which is independently profitable.<\/p>\n

And then we have the SMB business as we call it which has investments because that is very sales team heavy. But then it also is the target market primarily, primarily for a merchant loan business. So these three things have sort of Independent growth drivers and run by very, very strong management teams in each cases. Each case. And they march ahead. There is a common issue that there are certain merchants who benefit from Omni Channel solutions. So that sort of overrides and that’s the sort of collaboration between the teams.<\/p>\n

But they’re largely sort of independent operations.<\/p>\n

Piran Engineer<\/strong><\/p>\n

Got it, Got it. Okay. Yeah, that’s it from my end. Thanks and all the best.<\/p>\n

Madhur Deora<\/strong><\/p>\n

Thank you.<\/p>\n

Anush Mittal<\/strong><\/p>\n

Thank you. We’ll take the next question from Sachin Dixit from JM Financial followed by the last question of the day from Aluksha Bastard from ups. Sachin, you may go ahead.<\/p>\n

Sachin Dixit<\/strong><\/p>\n

Thanks Ananda. Hi Vijay. And on the question side my first question was on basically monetization of some of the AI products. I do understand it’s still early days but can you talk about anything that we are seeing on the especially on the sound box with AI capabilities part or any other products where you are actually seeing some monetization benefits also creeping up already?<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

Yeah. So classically marketing which we used to give them tools now we are asking them to do it through agents. So we believe that merchant will be able to do it easier because agent will do the necessary job of workflow taking care versus let’s say we are giving certain market products. So that is the kind of approach that we are taking. So the product line item still will remain the same and it will become better as a penetration and usage because we are using AI or allowing merchant to use our customer to use AI.<\/p>\n

Sachin Dixit<\/strong><\/p>\n

Sorry Vijay, if I understand it right, monetization is users linked is it?<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

Monetization is let’s say. I’m saying the customer that you can use us for acquiring or retaining customers. So the person may be charged subscription plus usage or only the usage so that the person does more usage. So approach will be somebody wants to reach out make an outreach to their customers. We can give it on a. Let’s say you can run an ad on paytm app. You can run communications through different different communication channel to the customers and then you can get the customer acquisition sorted out through our platform platforms.<\/p>\n

So these platforms monetizations eventually what you’re doing it is a tool to achieve more customer acquired more customer retained and repeating or stopping the churn. Now the customers, our customers can pay for certain per consumer basis platform subscription basis per usage basis. We are in the midst of these kind of discussions that which of these line item workers or work for our customers.<\/p>\n

Sachin Dixit<\/strong><\/p>\n

Understood, Understood. Thanks for that. On the second question side sort of a top up on Harshit’s question as well. Is it possible for you to break down the growth drivers of merchant lending? Right. I do understand it’s growing almost like high 30s, if not 40s going ahead. Can we break it down between that? Maybe the sound box devices grow at this rate, penetration goes up by this rate when ticket size or any such things, just to make it more sort of apparent for people like us. So good<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

Modeling question. I think<\/p>\n

Madhur Deora<\/strong><\/p>\n

I have the data so I can share it. So historically what we have seen is three primary drivers of growth. One is the expansion of the base, the second is the penetration rate and the third is the increase in ticket size. And each one of these has been broadly similar. So roughly call it 15% give or take, on each one of these drivers. And we can dig into this if you would like to. Now, going forward for our core business, we think this will probably remain the same, but at an overall level because as you go for time expansion, you may see that ticket sizes might on a blended basis be slightly higher, especially if you are more successful in the slightly higher ticket sized loans and so on.<\/p>\n

So if you look at that separately, then the core business remains intact with those drivers. But there’s an opportunity to sort of expand time beyond that.<\/p>\n

Sachin Dixit<\/strong><\/p>\n

And where do we see the penetration levels reaching the 7ish percent that you mentioned in terms of merchant lending as a percentage of subscription devices?<\/p>\n

Madhur Deora<\/strong><\/p>\n

Yeah, I mean it has broadly been going up at 1% a year.<\/p>\n

Sachin Dixit<\/strong><\/p>\n

So<\/p>\n

Madhur Deora<\/strong><\/p>\n

If you think about a year ago we were probably at 6%, now we are closer to 7% and that’s about a 15% increase that I was talking about earlier.<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

And the core is about the more aged merchant on the platform, the better the lending partner have a trust and confidence that this person’s ability to repay back<\/p>\n

Madhur Deora<\/strong><\/p>\n

And. Right. And just to add to that, and this is sort of a logical follow up to this is that our engagement with merchants is going up very meaningfully and that shows up in our GMV data, etc. As you would see. And that could mean that the penetration rates start to look a little bit better, the ticket sizes start to look a little bit better and sort of break out a bit. So those things do happen and businesses obviously evolve as a result. But it is a very interesting, I think about 3\/4 ago we had sort of called out and we can share that earnings release with you separately exactly what we have seen over the last four years.<\/p>\n

Sachin Dixit<\/strong><\/p>\n

Understood, understood. I mean basically the method I was trying to do that we effectively can be talking about almost a 40% growth if we look at DC drivers is is how I’m seeing it. Understood. Just one final question and more like a quick response. There has obviously been chatter posted PAYTM Payments bank license thing happening that PAYTM might go for a new license, maybe an NBFC license as well. Any comments, any thoughts on that? That’s my last question. Thank you. We<\/p>\n

Madhur Deora<\/strong><\/p>\n

Do have a comment on that and it is in our Q and A at the back of the earnings release. But just to summarize for this audience, one is there are two broad thoughts on that. The short answer is we’re not super excited about going for an NBFC license and the rationale for that is broadly two things. One is we really like our model where we stick to what we are uniquely good at, which is distribution, building great technology so that customer merchants can convert better insights on these merchants as well as collection abilities.<\/p>\n

And our partners then they are very very blue chip partners are very good at managing capital, managing risk, managing cyclicality and so on. So we do think this is a win win partnership and PAYTM does try to be a win win partner for whoever we partner with across the board. And here obviously we’re talking about lending. The second point is to your earlier question. We see the opportunity as absolutely massive. We have very large payments market, that market is growing, our market share is growing and that combined with low penetration means that the opportunity in the short to medium term already is very very large.<\/p>\n

We do think that logically that loan book should sit on multiple balance sheets, not a single balance sheet, not neither ours nor a single partners. So aggregating many many more balance sheets we think helps us achieve our medium term goals a lot better than trying to anchor it on one balance sheet.<\/p>\n

Sachin Dixit<\/strong><\/p>\n

Thanks. Thanks for that Madhur and all the best.<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

Yeah, I have Mr. Pasha asking a question in the chat window and I’m answering till the time period. Whom are you getting?<\/p>\n

Anush Mittal<\/strong><\/p>\n

So we have the last question from hello,<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

You could unmute yourself and so on, but I’m just answering what is written here that can you give color around asset quality and lending, distribution business and so on. Sir, we are absolutely not in the asset quality business because we do not own the risk or the credit that is dispersed on any book. If ever our commitment is towards fldg, it is completely the decision and ownership of the book that sits with lenders. So this question does not sit with us. This is our role is it’s like saying.<\/p>\n

So we are the retailers, not the manufacturers if you will of this. And then second question you are asking sir, is that what is the non MDR linked payment instrumental gmb? It’s very easy. RBI has different, different kind of datas. Our mix of MDR bearing instruments is growing. That is why net payment margin is growing. And I think<\/p>\n

Madhur Deora<\/strong><\/p>\n

On question number three it is the case that we have CapEx but next year we expect EBITDA to be significantly higher than capex. So your observation about last year is correct. 500 crores of EBITDA but. But we have capex. Should I take Sandhya’s question as well? Well<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

Yeah, that’s what I’m saying.<\/p>\n

Madhur Deora<\/strong><\/p>\n

On the merchant side we have three or four drivers of monetization. One like you mentioned is subscription. The second is MDR on MDR vending instruments. So if they’re accepting credit cards or credit card on UPI or PayTM postpaid, all of those are MDR bearing instruments. And the third as you pointed out is merchant. So those are the three big drivers of monetization. It is the case that not every merchant may be paying us at least one of the three but vast, vast majority of merchants do. And at a cohort level the payback period is always within acceptable bounce.<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

Yep. Thank you for asking these questions in the open chat. As you know we can take those also. And then we have Alok here.<\/p>\n

Anush Mittal<\/strong><\/p>\n

Thank you. Alok. You may unmute your line. Please go ahead.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Sure. Yeah. Hi. Morning. Morning Vijay. Morning Madhur. I just have one question. If you could provide some color on affordability. So in your earnings release you have mentioned that it has supported margin. So just in terms of whatever you are comfortable sharing in terms of let’s say GmbH, what percent of our machines have affordability enabled? What is the outlook here, value proposition and so on. Thank you.<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

I think the one thing I can say is more than half of our machines are enabled and for dispersing EMIs. I don’t think that we have GMB numbers by the instrument but you can be very sure this is in enterprise segment, in long tail segment, both alike. It is liked because they want to make affordability as a feature for the customers on the shop. And we continue to aggregate everybody and aggregation as you know is our primary role here. So we continue to get from as many people<\/p>\n

Madhur Deora<\/strong><\/p>\n

And we have very, very strong partnerships with both brands and banks who are the other piece of the ecosystem. So there’s merchants and there’s banks and brands and then there’s obviously, obviously the consumer and the fifth and rough greater than half number that Vijay gave for enablement on card machines that is very significant because not 100 of merchants need EMI necessarily. Right. So it is limited to certain categories of merchants, generally those who have higher ticket size transactions.<\/p>\n

And we’re making huge progress in this. We are gaining share because of our focus on this business. And obviously we have talked about the impact on processing margins.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Okay. And fair to say, Madhur, that this will be largely in electronics. The machine in terms of electronics<\/p>\n

Madhur Deora<\/strong><\/p>\n

Is an anchor category. But there are many other categories. Healthcare is a category. Cdit,<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

Normal Joe, Everything else beyond electronics, furniture, furniture,<\/p>\n

Madhur Deora<\/strong><\/p>\n

Fashion, even beauty products.<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

5000 plus ticket size helps us anywhere.<\/p>\n

Madhur Deora<\/strong><\/p>\n

Even something like quick commerce, which you may not expect does actually have some percentage EMI based based transaction. So I’m giving you the sort of contrasting example which might not be super obvious. It wasn’t to me until I saw the data of, you know, where is our EMI volume coming from.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Okay, got it. Thanks a lot.<\/p>\n

Madhur Deora<\/strong><\/p>\n

Thank you.<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

Thank you. I’ll take question from Arjun Juna who said that any interest in building paid loyalty program on consumer merchant side for drive greater loc. We have gold coin based product, my friend and it is not paid. It is for everybody who uses more PAYTM gets more gold coins. Use PayTM for every P2P2P2M payments or every other thing. And then dinner. Singh says congratulations on good set of numbers. Thank you sir. Eagerly waiting for AI led agent capabilities tools from ptm. Thank you. Same guest.<\/p>\n

Anush Mittal<\/strong><\/p>\n

Thank you. With that we come to an end of this call. A replay of this earnings call and the transcript will be made available on the company website subsequently. Thank you all for joining. You may now disconnect your lines. Thank<\/p>\n

Vijay Shekhar Sharma<\/strong><\/p>\n

You. Thank you. See you. Bye.<\/p>\n","protected":false},"excerpt":{"rendered":"

Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon. One97 communication Ltd (NSE: PAYTM) Q4 2026 Earnings Call dated May. 07, 2026 Corporate Participants: Anush Mittal \u2014 Investor Relations Vijay Shekhar Sharma \u2014 Chairman, Managing Director and Chief Executive Officer Madhur Deora \u2014 President […]<\/p>\n","protected":false},"author":2377,"featured_media":147581,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[6349],"tags":[10169,9175,9104,9092,14492,11638,10089],"class_list":["post-182449","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-transcripts","tag-earnings","tag-earnings-call","tag-earnings-conference","tag-earnings-transcripts","tag-financial-results","tag-paytm","tag-quarterly-earnings"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/Transcript-thumbnail.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":129847,"url":"https:\/\/alphastreet.com\/india\/one97-communication-ltd-q4-fy22-earnings-conference-call-insights\/","url_meta":{"origin":182449,"position":0},"title":"One97 communication Ltd Q4 FY22 Earnings Conference Call Insights","author":"Praveen","date":"May 23, 2022","format":false,"excerpt":"https:\/\/youtu.be\/OgwfSOow4ZE Key highlights from One97 communication Ltd (PAYTM) Q4 FY22 Earnings Concall Management Update: PAYTM said that in payments, which is the company\u2019s primary bet, it will be able to earn all its cost and achieve EBITDA contribution standalone for payment also. 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