Paytm shares jump 6% after Q4 profit rises to ₹184 crore
Revenue grows 18% as payments, lending and merchant subscriptions strengthen
AI deployment boosts efficiency across engineering, fraud detection and collections
Shares of One 97 Communications, the parent company of Paytm, surged over 6% in early trade on Thursday after the company reported a sharp improvement in earnings for the March quarter and full financial year FY26.
The stock rose as much as 6.24% to ₹1,181 apiece on the NSE after the results announcement.
1 May 2026
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Paytm reported a consolidated net profit of ₹184 crore for Q4 FY26, compared with a loss of ₹540 crore in the year-ago quarter, marking a significant turnaround in profitability.
Revenue from operations rose 18.4% year-on-year to ₹2,264 crore, driven by growth in payments, merchant subscriptions and financial services distribution.
The company said the quarterly performance was partly impacted by the discontinuation of the PIDF scheme, while FY26 UPI incentives are yet to be finalised. Despite this, it achieved its guidance of offsetting 30–40% of the PIDF impact during the quarter.
Payments, Lending and Merchant Growth Drive FY26
For the full financial year FY26, Paytm reported revenue of ₹8,437 crore, up 22% year-on-year, while EBITDA turned positive at ₹502 crore against a loss of ₹1,506 crore in FY25.
Profit after tax for FY26 stood at ₹552 crore, compared to a loss of ₹663 crore in the previous fiscal.
The company attributed the improvement to higher payment transaction volumes, growth in merchant subscriptions including soundbox devices, and strong traction in financial services distribution, especially personal and merchant loans.
Revenue from financial services distribution, a higher-margin segment, rose 52% year-on-year to ₹2,593 crore. Merchant gross merchandise value grew 27%, while consumer UPI gross transaction value increased 46% during the quarter. Monthly transacting users rose to 7.7 crore.
AI Deployment Expands Across Operations
Paytm also highlighted increased deployment of artificial intelligence across engineering, fraud detection, merchant onboarding and collections.
The company said AI-assisted coding, testing and deployment systems are being used internally to improve operating leverage and reduce software development costs.
The strong quarterly performance and return to profitability boosted investor sentiment, helping the stock rally sharply in early trade.
