One 97 Communications, which operates Paytm, reported a consolidated net profit of ₹123 crore in the quarter ended 30 June 2025—an impressive turnaround from a ₹839 crore loss in Q1 FY25. This marks the first profitable quarter since Paytm’s IPO.
🚀 Revenue & EBITDA Growth
- Revenue from operations rose 28 % YoY to ₹1,918 crore, up from ₹1,502 crore in Q1 last year
- EBITDA turned positive at ₹71–72 crore, with a margin of approximately 3.7 %–4 %
📈 Stock Reaction & Market Sentiment
Paytm’s shares surged over 3 % ahead of the earnings announcement, closing around ₹1,053 on the NSE. The increase reflects renewed investor confidence, with shares hovering near 52-week highs
🔍 What Fueled the Profitability
- Payments & fintech growth: Net payment revenue jumped 38 % YoY to ₹529 crore, and financial services distribution doubled, underpinned by rapid merchant loan growth
- Cost discipline: Control on expenses and operational leverage turned EBITDA positive.
- Healthy cash reserves: With a cash balance of ₹12,872 crore, Paytm has ample liquidity to fuel expansion in merchant payments, lending, and AI investments
🧭 Key Implications
- Milestone: This marks Paytm’s shift from a loss-making to a profitable business model—an important restoration of investor trust.
- Growth resurgence: A 28 % revenue jump showcases recovery in payments and financial services demand.
- Caution ahead: With EBITDA margins at 4 %, sustaining this profit requires continued revenue rise and margin stability. Rising UPI incentives, fee pressures, and scaling expenses could limit growth.
📊 Q1 FY26 at a Glance
| Metric | Q1 FY26 | Q1 FY25 / Notes |
|---|---|---|
| Net Profit | ₹123 cr | ₹ –839 cr (loss in Q1 FY25) |
| Revenue | ₹1,918 cr (+28% YoY) | ₹1,502 cr |
| EBITDA | ₹71–72 cr; ~3.7–4% margin | Negative |
| Cash Balance | ₹12,872 cr | — |
| Stock Price (NSE close) | ₹1,053 (+3.5 %) | Near 52-week high |
🔮 What Comes Next
- Scale Fintech Offerings: Building on merchant payments, BNPL, and lending to boost take-rates and margins.
- Monetize AI Stack: Paytm’s investment in AI-driven services could improve operational efficiencies and user engagement.
- Maintain Profitability: Crucial to offset competitive pressure and maintain discipline in incentives/rewards spending.
