Paytm Shares Rise 6% Following Q4 Profit and First Full-Year Profit After Tax

Paytm Posts Sharp Turnaround in Profitability for Fiscal Fourth Quarter

Shares of One 97 Communications, the parent company of fintech major Paytm, jumped nearly 6 percent in morning trade on Thursday after the company reported a sharp turnaround in profitability for fiscal fourth quarter and posted its first-ever full-year profit.

Paytm's Stock Performance The Paytm stock was trading at Rs 1,174, up 5.7 percent in morning trade. The stock has gained 34.1 percent over the past one year, outperforming the benchmark Nifty 50 index, which has remained marginally negative during the same period. The company's market capitalisation stood at over Rs 74,000 crore.

Paytm reported a net profit of Rs 184 crore for Q4 FY26, compared with a loss of Rs 540 crore in the year-ago period, driven by improvement in operating performance and growth in financial services distribution. The company also reported its first-ever full-year profitability, posting Profit After Tax (PAT) of Rs 552 crore for FY26.

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Key Financial Highlights

Revenue for the quarter rose 18.4 percent year-on-year to Rs 2,264 crore, while EBITDA turned positive at Rs 132 crore against an EBITDA loss of Rs 88 crore in the corresponding period last year. EBITDA margin stood at 5 percent, with the company citing operating leverage and cost discipline as key drivers of improvement.

The results also indicated continued momentum in Paytm's payments and lending businesses. Consumer UPI gross transaction value grew 46 percent year-on-year in Q4, while monthly transacting users rose to 7.7 crore. Revenue from financial services climbed 37 percent YoY to Rs 750 crore, while payment services revenue stood at Rs 1,265 crore.

Contribution profit rose to Rs 1,254 crore, with contribution margin improving to 55 percent, reflecting better unit economics and scaling efficiencies.

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The earnings come at a time when Paytm is attempting to stabilise and rebuild growth after regulatory action against Paytm Payments Bank disrupted parts of its ecosystem over the past year. The company has since transitioned to a partner-led model for payments and UPI operations.