Paytm shares climb over 3% as company swings to Rs 122 crore profit from YoY loss

Shares of One 97 Communications, the parent company of fintech platform Paytm, surged 3.5% to hit a new 52-week high of Rs 1,090 on BSE on Wednesday, after the company reported a consolidated net profit of Rs 122.5 crore for Q1FY26 – marking a turnaround from a loss of Rs 839 crore in the same quarter last year.

Revenue from operations rose 28% year-on-year (YoY) to Rs 1,917 crore, up from Rs 1,502 crore in Q1FY25. On a sequential basis, topline growth was marginal at 0.3%, compared to Rs 1,911 crore in Q4FY25, when the company had posted a net loss of Rs 540 crore.

Operating revenue grew 28% YoY, supported by an increase in subscription-based merchants, higher Gross Merchandise Value (GMV), and growth in revenue from financial services distribution.


Contribution profit rose 52% YoY to Rs 1,151 crore, with a contribution margin of 60%—a 10 percentage point improvement—driven by better net payment revenue, a greater share of financial services revenue, and lower direct expenses.

Company's contribution profit stood at Rs 1,151 crore, up 52% YoY, with a contribution margin of 60% (up 10 percentage points YoY), driven by improved net payment revenue, higher share of distribution of financial services revenue, and reduction in direct expenses.

The Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) and PAT turned profitable at Rs 72 crore (margin of 4%) and Rs 123 crore respectively, demonstrating AI-led operating leverage, disciplined cost structure and higher other income, the company filing said.

Its Cash balance stood at Rs 12,872 crore, providing capital flexibility to expand merchant payments, distribution of financial services, and AI-led innovations.

Business highlights

Net payment revenue was up 38% YoY to Rs 529 crore, led by growth in high-quality subscription merchants and an increase in payment processing margins.

Distribution of financial services revenue increased by 100% YoY to Rs 561 crore, driven by growth in merchant loans, trail revenue from Default Loss Guarantee (DLG) portfolio, and improved collection performance.

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The Vijay Shekhar Sharma-led company in a statement claimed that its "undisputed leadership" in merchant payments continued in the quarter under review with 1.30 crore merchant device subscriptions across MSMEs and enterprise payment merchants.

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