Paytm shares surged 5.07% to ₹1,166.90 on the NSE following the company's Q4 and FY25 earnings announcement, though the stock has since moderated to around ₹1,110 as of May 6, 2026. According to reports from Goodreturns, the stock opened at ₹1,150 and continued witnessing buying momentum during the session. One97 Communications touched an intraday high of ₹1,168.20, while the day's low stood at ₹1,148. Investors reacted positively to the company's return to annual profitability, supported by stronger payments activity and growth in its financial services business, despite facing significant regulatory headwinds and competitive pressures.
The company posted a net profit of ₹552 crore in FY25, marking a significant turnaround from the net loss of ₹663 crore recorded in the previous financial year. As reported by Goodreturns, this development signals improving operational strength and renewed momentum in Paytm's core business segments. However, Q4 FY26 net profit declined to ₹184 crore from ₹225 crore in the December quarter, showing a sequential dip in profitability. The sequential decline raises serious questions about margin sustainability and operational efficiency, even with rising payment transaction volumes and increased merchant subscriptions. The Q4 profitability was particularly strong compared to the ₹540 crore loss recorded in the year-ago quarter, which was affected by one-time expenses related to CEO Vijay Shekhar Sharma giving up his employee stock options.
Revenue growth remained robust for Paytm during the quarter. As reported by Goodreturns, revenue from operations reached ₹2,264 crore in the March 2026 quarter, reflecting an 18% year-on-year increase from ₹1,912 crore in the same period a year ago. The figure also improved sequentially from ₹2,194 crore in the December 2025 quarter. Paytm also reported a positive EBITDA of ₹132 crore, versus a loss of ₹88 crore a year earlier, though it was lower than the ₹156 crore reported in the December quarter. EBITDA margin came in at 6%, compared with a negative 5% in the corresponding period last year. The company said comparable EBITDA, excluding UPI and PIDF incentives, improved by ₹330 crore year-on-year, indicating stronger underlying profitability driven by higher payment transaction volumes, increased merchant subscriptions like soundbox devices, and growth in financial services distribution.
The payments business remained the largest contributor, with revenue rising 21% to ₹1,265 crore in the quarter, while revenue from financial services distribution grew 38% to ₹750 crore. However, marketing services revenue declined 10% to ₹239 crore. Merchant payment volumes continued to expand, with gross merchandise value (GMV) rising 27% YoY to ₹6.5 lakh crore, while subscription merchants, including device merchants, rose to 1.51 crore from 1.24 crore a year ago. Monthly transacting users stood at 7.7 crore, up from 7.2 crore last year. Contribution profit for the quarter increased 17% to ₹1,254 crore, while direct expenses rose 20% to ₹1,010 crore, and indirect expenses declined 3% to ₹1,122 crore, aided by lower marketing and employee costs.
The company ended March with a cash balance of ₹13,315 crore, up from ₹12,809 crore a year earlier, giving it a cash addition of over ₹500 crore during the year. Management said revenue growth is expected to accelerate in FY27, supported by merchant payment expansion, scaling of its asset-light financial services business, consumer monetisation and AI-led operating leverage. Despite challenges, analysts maintain positive ratings on Paytm citing strong revenue momentum and controlled expenses. Jefferies has maintained a Buy rating with a target price of ₹1,400, noting structural improvements and core service strength. Haitong initiated coverage with an 'Outperform' rating and a ₹1,410 target. The consensus rating is 'Buy' with an average 12-month price target around ₹1,370, indicating potential upside.
