Paytm parent One97 Communications achieved a historic milestone by reporting its first full-year profitability since listing, marking a significant turnaround for the fintech company. The company posted a profit of ₹552 crore for FY26, compared to a loss of ₹663 crore in FY25, as reported by The Times of India. This represents a substantial improvement in the company's financial performance despite ongoing regulatory challenges, with the turnaround primarily driven by tighter control on costs and a major increase in revenue from financial services. The company's EBITDA swung dramatically from a loss of ₹1,506 crore in FY25 to a positive ₹502 crore in FY26, demonstrating exceptional operational efficiency and strategic focus. Analyst consensus for Q4 FY26 PAT sits in the ₹2,549–2,585 crore range, with revenue estimated at ₹15,422–15,538 crore, up 27–28% year-on-year, per HDFC Securities.
The company demonstrated robust quarterly performance with consolidated net profit of ₹183 crore for Q4 FY26, marking a complete turnaround from the loss recorded in the year-ago period. Revenue from operations for the quarter rose 18.4% year-on-year to ₹2,264 crore, up from ₹1,912 crore in Q4FY25, driven by steady growth in the company's payments and financial services distribution. At the operating level, Paytm reported an EBITDA (before ESOP cost) of ₹132 crore for the quarter, a major swing from the ₹88 crore loss in the same period last year, indicating a shift toward sustained operating profitability. The total income for the full year stood at ₹9,291 crore, representing a 22% increase over the previous year, with the company's operating revenue reaching ₹8,437 crore for FY26. Goldman Sachs maintains a Buy on the stock with a ₹1,400 target and forecasts around 14% year-on-year revenue growth for Q4.
Paytm's growth strategy focused on four key pillars that drove its exceptional performance. Market share gains in payments saw consumer UPI growth outpace industry levels by 2.2x, while payment processing margins expanded to over 4 basis points, supported by growth in high-margin MDR-bearing instruments. The distribution of financial services reached ₹2,593 crore, representing a 52% year-on-year increase. The company's strategic application of AI across the organization enabled significant operating leverage and optimized costs. Looking ahead to FY2027, Paytm plans to accelerate revenue growth while continuing to expand EBITDA margins, focusing on consumer lifecycle monetization and scaling its merchant loans distribution business. The underlying order book of ₹7.4 lakh crore is at an all-time high, providing strong foundation for future growth.
The earnings announcement coincides with major regulatory updates, including the RBI's official cancellation of Paytm Payments Bank Limited's banking license on April 24, 2026. The company clarified that it has no material business arrangements with PPBL and maintains no exposure to the entity, stating there is no direct financial impact. Bernstein and Emkay both confirmed no financial or operational impact, with the RBI cancellation under Section 22(4) of the Banking Regulation Act, effective April 24, 2026, and the bank's operations having been suspended for more than a year. Despite these regulatory challenges, shares of One 97 Communications ended 2.08% higher at ₹1,110.60 on the NSE ahead of the earnings announcement, with the stock having outperformed the broader market over the last year, gaining over 36% compared to a 15% rise in the Nifty Midcap 50 index. The board meets May 6 to consider a share buyback proposal, with the previous buyback in 2024 priced at ₹10,000 per share.
Paytm maintains a robust financial foundation with ₹13,315 crore in cash and bank balances, providing a strong foundation for future growth initiatives. The company has strategically utilized ₹6,133 crore out of its total IPO proceeds of ₹8,500 crore for technology investments, general corporate purposes and new acquisition opportunities. Out of its total IPO proceeds of ₹8,500 crore, Paytm has strategically utilized ₹6,133 crore for technology investments, general corporate purposes and has invested ₹14 crore in new acquisition and partnership opportunities. The company continues to pivot towards merchant payments, lending distribution and artificial intelligence-led automation to navigate regulatory challenges, maintaining an asset-light, 'distribution-only' model while investing in AI-led innovation for long-term profitability. Notably, the company still holds ₹1,986 crore in unutilised IPO proceeds, currently invested in fixed deposits, providing a liquidity cushion for future expansion.
