Paytm posts Q4 profit at ₹184 cr vs year-ago loss; EBITDA turns positive, revenue up 18%

One 97 Communications (Paytm) reported a consolidated net profit of ₹183 crore for the quarter ended March 2026, marking a complete turnaround from the loss recorded in the year-ago period.

The results were boosted by a sharp focus on operating leverage and the absence of heavy one-off charges that weighed down previous earnings. For the full financial year 2025-26, the company turned profitable with a net profit of ₹552 crore, compared to a loss of ₹663 crore in FY25.

Revenue from operations for the quarter rose 18.4% year-on-year to ₹2,264 crore, up from ₹1,912 crore in Q4FY25, driven by steady growth in the company’s payments and financial services distribution.

Operating performance and margins

At the operating level, Paytm reported an EBITDA (before ESOP cost) of ₹132 crore for the quarter, a major swing from the ₹88 crore loss in the same period last year. This ₹220-crore improvement indicates a shift toward sustained operating profitability.

The company’s total income for the full year stood at ₹9,291 crore, a 22% increase over the previous year. Management's focus on cost optimization and rationalization of marketing spending helped drive efficiency gains, supporting the transition to positive EBITDA.

Base effect and exceptional items

The year-on-year comparison remains influenced by substantial exceptional items in the previous fiscal year. In FY25, the company recorded a gain of ₹1,345.4 crore from the sale of its entertainment ticketing business to Zomato Limited. This was partially offset by a ₹492.1 crore ESOP cancellation charge related to founder and CEO Vijay Shekhar Sharma, as well as other impairment provisions.

The earnings announcement coincides with major regulatory updates. On April 24, 2026, the RBI officially cancelled the banking license of Paytm Payments Bank Limited (PPBL). The company clarified in its filing that it has no material business arrangements with PPBL and maintains no exposure to the entity, stating there is no direct financial impact.

Additionally, the company addressed an ongoing ₹611 crore show cause notice from the Enforcement Directorate (ED) regarding alleged FEMA contraventions. As of March 31, 2026, the RBI has compounded matters totalling ₹33 crore for the company.

While the audited filing does not provide formal quarterly guidance, the Board expressed confidence in the current trajectory by approving the re-appointment of Ashit Ranjit Lilani as a non-executive independent director for a second five-year term, effective through July 2031.

The company also disclosed that it still holds ₹1,986 crore in unutilised IPO proceeds, currently invested in fixed deposits, providing a liquidity cushion for future expansion.

Market reaction

Shares of One 97 Communications ended 2.08% higher at ₹1,110.60 on the NSE ahead of the earnings announcement. The stock has outperformed the broader market over the last year, gaining over 36% compared to a 15% rise in the Nifty Midcap 50 index.