Paytm Q1 Profit Soars Nearly 79%, NVIDIA Offers GPU Financing

Fintech major Paytm announced strong financial results for the first quarter of fiscal year 2027, with net profit soaring by nearly 79% year-over-year to ₹220 crore. Operating revenue also saw a substantial rise of 27.6% to ₹2,448 crore. The company attributed its improved performance to accelerated merchant payments, expanding merchant lending, consumer payment growth, and enhanced monetization through wealth products, driven by AI integration.

The core payments business continued to be the primary revenue driver, contributing over half of Paytm's total topline. Growth in this segment was fueled by increased merchant Gross Merchandise Value (GMV), better processing margins, and expansion in device-led services. The financial services vertical also demonstrated healthy acceleration, with growth in both merchant and personal loan disbursements.

Despite the positive financial performance, Paytm's board rejected a proposal for issuing bonus shares, prioritizing long-term growth over short-term optics. However, the board did approve an investment of up to ₹100 crore in its wholly-owned subsidiary, Paytm Money, via a rights issue. Future plans include strategic acquisitions, re-acquiring a wallet license, and increasing market share in merchant card processing.

In related technology news, chip manufacturer NVIDIA is initiating a new strategy by offering credit support to AI cloud providers for the purchase of its GPUs. This move allows NVIDIA to generate revenue not only from chip sales but also by taking a share of the future earnings of these cloud players. This program could aid homegrown providers like Yotta and NxtGen in scaling their AI infrastructure without massive upfront hardware investments, though it may also consolidate NVIDIA's influence in the sector.