Paytm shares jumped 6% in early trading on Thursday, May 7, following the company's impressive Q4 FY26 results that marked a fourth consecutive quarter of profitability. The fintech major reported a consolidated net profit of ₹183 crore for the quarter ended March 31, 2026, marking a dramatic turnaround from the loss of ₹545 crore recorded in the year-ago period. According to reports from Mint, the company's revenue from operations grew 18.4% YoY to ₹2,264 crore, up from ₹1,912 crore in the corresponding quarter last year. The stock opened at ₹1,105 on NSE with an intraday high of ₹1,121 versus Wednesday's close of ₹1,088, as investors reacted positively to the quarterly results.
For the complete fiscal year 2025-26, Paytm demonstrated strong operational improvements across key metrics. As reported by Mint, the company achieved revenue of ₹8,437 crore, up 22.3% YoY, while EBITDA came in at ₹502 crore against a loss of ₹1,506 crore in the previous fiscal. The profit after tax (PAT) for FY26 stood at ₹552 crore compared to a loss of ₹663 crore in FY5, reflecting the company's successful turnaround strategy and sustained profitability momentum. The sequential decline in Q4 PAT from Q3's ₹225 crore to ₹183 crore represents an 18.2% drop, with total expenses rising 4.3% quarter on quarter from ₹2,175 crore to ₹2,269 crore, indicating some margin pressure as the company scales operations.
According to Mint reports, Paytm's financial services revenue demonstrated robust growth of 12% QoQ and 38% YoY, supported by strong traction in merchant lending. The company's UPI volumes surged 46% YoY, significantly ahead of the industry growth of around 21%, indicating improving customer engagement. Device additions remained healthy at around 0.7 million during the quarter, easing concerns around competitive intensity in the market. The merchant GMV grew 27% YoY to ₹6.5 lakh crore in Q4 FY26, while monthly transacting users (MTU) reached 7.7 crore, adding 50 lakh users year on year. The subscription merchant base reached 1.51 crore devices with 27 lakh net additions year on year, providing a predictable, recurring revenue base that makes the Paytm share price story fundamentally different from a pure transaction-volume play.
As reported by Mint, analysts expressed broadly positive sentiment following the earnings announcement, highlighting resilient operating performance despite the discontinuation of PIDF incentives and absence of UPI incentive accruals during the quarter. Bernstein noted that profitability remained resilient despite the loss of PIDF incentives and no UPI incentive accrual in the quarter. The company achieved its guidance of 30-40% offset of PIDF impact in Q4 FY2026. With four straight quarters of profitability, there is anticipation of further upside for Paytm's share price, supported by the company's improved operational performance and growth in core financial services distribution business. Univest research analysts Ankit Jaiswal and Kunal Singla note that the ₹1,300 to ₹1,400 target range is achievable within 12 months if financial services revenue maintains its 38-52% year-on-year growth, payment processing margins hold above 4 basis points, and Q1 FY27 PAT recovers above ₹200 crore. However, they caution that the sequential Q4 PAT dip is a data point to monitor through Q1 FY27 before treating the Paytm share price re-rating as complete.
