Paytm Reports First Profit in Q1 FY26 After Yearly Loss

Paytm, owned by One97 Communications, reported its first-ever quarterly net profit of approximately Rs 123 crore for Q1 FY26, a significant turnaround from a Rs 840 crore loss in the same period last year. The fintech company’s revenue rose nearly 28% year-on-year to around Rs 1,918 crore, driven by growth in merchant payments, subscription merchants, and a doubling of financial services revenue, particularly from loans. Contribution profit increased 52% to Rs 1,151 crore with a 60% margin, supported by improved payment revenues and cost discipline, including a sharp reduction in ESOP expenses. Paytm also reported a positive EBITDA of Rs 72 crore, indicating early sustainable profitability, and maintained a strong cash balance of Rs 12,872 crore. The company attributes its improved performance to AI-led operating leverage, a focus on core businesses, and expansion in tier-2 and tier-3 cities, while planning to scale its AI-powered technology stack and explore international growth. These results reflect Paytm's strategic shift towards profitability by capitalizing on its financial services and payments ecosystem alongside controlled expenses.