Paytm reported yet another profitable quarter, posting a consolidated net profit of ₹183 Cr in Q4 FY26 as against a loss of ₹545 Cr in the year-ago quarter
Its operating revenue for the quarter under review stood at ₹2,264 Cr, growing 18.4% from ₹1,912 Cr in the same period last year
Including other income of ₹178 Cr, total income for the period stood at ₹2,442 Cr
Fintech major Paytm reported yet another profitable quarter, posting a consolidated net profit of ₹183 Cr in Q4 FY26 as against a loss of ₹545 Cr in the year-ago period. However, profit declined 18.7% sequentially from ₹225 Cr.
The company’s operating revenue for the quarter under review stood at ₹2,264 Cr, growing 18.4% from ₹1,912 Cr during the same period last year. Sequentially, revenue rose 3.2% from ₹2,194 Cr.
On a comparable basis (excluding UPI and payments infrastructure development fund (PIDF) incentives), revenue growth stood at 26% YoY, indicating strong underlying momentum.
Including other income of ₹178 Cr, total income for the period stood at ₹2,442 Cr. Reported numbers during the quarter were impacted by the discontinuation of the PIDF scheme and the pending finalisation of UPI incentives.
Meanwhile, Paytm’s total expenses grew a meagre 5.3% YoY to ₹2,269 Cr, reflecting continued cost discipline even as the company continued to invest in growth.
In Q4 FY26, Paytm also reported an EBITDA profit of ₹132 Cr against an EBITDA loss of ₹88 Cr in the year-ago quarter. EBITDA margin stood at 6% during the quarter as against -5% in the same period last year.
Contribution profit also rose 17% YoY to ₹1,254 Cr, with contribution margin at 55%, supported by improving payment processing margins and higher contribution from financial services.
For the full fiscal year FY26, the company posted a profit of ₹552 Cr compared to a loss of ₹663 Cr in the previous year, marking its first full year of profitability. Operating revenue zoomed 22.3% to ₹8,437 Cr from ₹6,900 Cr in FY25.
On the profitability front, EBITDA saw a sharp improvement to ₹502 Cr in the fiscal under review compared to a loss of ₹1,506 Cr in FY25, an improvement of over ₹2,000 Cr. The annual profit also included a one-time impairment of ₹190 Cr related to its now-defunct gaming joint venture, Paytm First Games.
The company also continued to see strong momentum across its core payments and financial services businesses. Payment services revenue grew 21% YoY to ₹1,265 Cr in Q4 FY26, while financial services distribution revenue rose 38% YoY to ₹750 Cr during the quarter.
Merchant GMV grew 27% YoY to ₹6.5 Lakh Cr in Q4 FY26 and monthly transacting users stood at 7.7 Cr, reflecting continued scale across both merchant and consumer ecosystems. Total transactions during the quarter rose to 1,822 Cr.
Meanwhile, the fintech giant’s financial services distribution vertical remained a key growth driver, with revenue from the segment zooming 52% YoY to ₹2,593 Cr, supported by higher adoption of merchant and consumer lending products.
Paytm also highlighted the expansion in its payment processing margins, which jumped to more than 4 bps on the back of higher share of MDR-bearing instruments such as credit cards and EMI products. Meanwhile, its subscription merchant base grew to 1.5 Cr, aided by device-led expansion including Soundbox deployments.
On the cost side, the company underscored AI-led operating leverage and disciplined spending, with indirect expenses declining 3% YoY in Q4 FY26 even as it continued to invest in growth and technology.
The company’s cash balance stood at ₹13,315 Cr as of March 2026, providing ample headroom for future investments and expansion.
Looking ahead, Paytm expects revenue growth to accelerate further in FY27, alongside continued expansion in EBITDA margins, driven by operating leverage and growth across its payments and financial services verticals.
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