With more than Rs.13,500 crore in its reserves and growing free cash flow, Paytm aims to utilize that capital — primarily within its current operations, while also considering acquisitions at the “appropriate valuation.”

The cash balance of the Noida-based firm increased by ₹657 crore year-on-year, reaching Rs.13,529 crore at the conclusion of the first quarter of the financial year 2026-27 (Q1 FY27).

President and Group chief financial officer (CFO) Madhur Deora mentioned that the focus was mainly on finding organic opportunities that yield good returns within the current business, although the company would entertain an acquisition if the valuation was appropriate.

“We have previously stated that MTF (margin trading facility) constitutes a fraction of our funds, a tiny percentage of it, which is providing us with an excellent return on investment (ROI). We are constantly seeking additional opportunities within the business, primarily organic, and possibly a few inorganic if the right opportunity arises at the right valuation," Deora informed analysts.

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In the meantime, founder, CMD, and CEO Vijay Shekhar Sharma emphasized that maintaining a robust balance sheet is essential. He mentioned that fintech firms within the ecosystem were experiencing unease in both aspects of the funding market; going public presents a unique set of pressures, whereas remaining private introduces a different set.

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“I believe individuals ought to experience more stress, (ensuring that) more discounting (occurs), and then the cash and the activity will improve,” in relation to the use of cash reserves.

India's fintech sector is witnessing fierce rivalry among leading firms vying for clients of all sizes, including small and medium enterprises, while profit margins continue to be slim.

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Sharma stated that the firm was exploring AI-driven monetization in the current fiscal year, noting that a few initial use cases had begun to generate revenue.

He classified this as a segment of "non-payments" and "non-financial services" revenue for the company. He stated that these use cases would ultimately benefit the merchant aspect of Paytm's operations.