Summary
India's Paytm (One97 Communications) reported its first full-year profit of ₹552 crore ($60M) in fiscal 2026, swinging from a ₹663 crore loss a year earlier, with operating revenue up 22% to ₹8,437 crore. Founder and CEO Vijay Shekhar Sharma said the fintech will step up investment across AI, financial services, and its merchant ecosystem after turning profitable for a full year, ending two years of regulatory disruption and cost focus. The shares have rebounded more than fivefold from their February 2024 low.
Key Facts
- First full-year profit: FY26 PAT ₹552 Cr vs ₹663 Cr net loss in FY25
- Operating revenue rose 22% to ₹8,437 crore
- EBITDA improved by ₹2,008 crore to ₹502 crore (6% margin)
- Sharma: "This has been a defining year for Paytm," business is "sustainably profitable"
- Plans to invest profitably in AI, financial services, and merchant ecosystem more than ever before
- Merchant GMV rose 26% to ~₹23.8 lakh crore in FY26; subscription merchant base grew to 1.51 crore
- Financial services segment revenue surged 52% to ₹2,594 crore, 31% of revenue (up from 25%)
- June quarter: record EBITDA ₹203 crore (+182% YoY), PAT ₹220 crore (+79% YoY)
- Consumer UPI GTV grew 46% YoY at 2.2x industry growth; MTU up 50 lakh to 7.7 crore
- Turnaround follows the Jan 2024 RBI restriction on Paytm Payments Bank (which led it to move UPI/payments to partner banks); PPBL license later cancelled
- Sharma pursuing AI: applied AI on open-source models, small language models for SMBs/voice/Indian languages; agentic tools to boost engineering output
- Board proposed raising Sharma's fixed pay to ₹7 crore in FY27 (subject to shareholder approval)
Why It Matters
Paytm's first full-year profit marks a turning point after one of the most disruptive regulatory episodes in Indian fintech, demonstrating that a payments company can recover profitability after a license crisis and pivot toward AI and financial services. It signals India's leading payment and financial services platform is entering a new phase of profitable growth with AI-led operating leverage. The recovery and rising share price show the resilience of India's fintech sector and set the stage for further AI and financial services investment.