Paytm Q4 Results: From Red to Black, Company Posts Rs 184 Crore Profit After Previous Year’s Loss

One 97 Communications, the parent company of Paytm, showcased a significant financial turnaround in its fourth quarter, reporting a net profit of Rs 184 crore, a notable recovery from a loss of Rs 540 crore in the comparable quarter last year. This improvement was partially attributed to the previous year’s one-time expense involving CEO Vijay Shekhar Sharma’s relinquishment of his employee stock options. Furthermore, the company’s revenue from operations increased by 18% year-over-year, reaching Rs 2,264 crore, indicating robust operational growth in a competitive market.

Another highlight of Paytm’s performance is its positive Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of Rs 132 crore, contrasting with the loss of Rs 88 crore reported in the same quarter last year and slightly down from Rs 156 crore in the preceding December quarter. The EBITDA margin achieved a commendable 6%, recovering from a negative margin of 5% one year prior. The company’s efforts to enhance its comparable EBITDA have resulted in an impressive year-on-year improvement of Rs 330 crore, signaling a solid trajectory toward profitability through organic growth.

For the full financial year FY26, Paytm recorded its first annual profit of Rs 552 crore, a strong turnaround from a loss of Rs 663 crore in FY25. Annual revenue increased 22% to Rs 8,437 crore, with EBITDA recovery to Rs 502 crore, up from a significant loss of Rs 1,506 crore last year. With cash reserves bolstered to Rs 13,315 crore, representing an increase of over Rs 500 crore year-on-year, management is optimistic about accelerating revenue growth in FY27. This growth is anticipated to be driven by expanded merchant payments, scaling of financial services, consumer monetization, and operational efficiencies through AI integration.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova team.)