Paytm Achieves First-Ever Full-Year Profit

Paytm's parent company, One 97 Communications, has reported its first full-year profit of Rs 552 crore for FY26, marking a significant turnaround in India's fintech sector. This achievement follows a period of intense scrutiny regarding the company's future direction. Revenue from operations for FY26 climbed 22 percent year-on-year to Rs 8,437 crore.

The company's EBITDA improved dramatically, moving from a loss of Rs 1,506 crore in FY25 to a positive Rs 502 crore in FY26. This was driven by Sharma's decisive actions on cost control, which saw total indirect expenses fall 16 percent. Employee costs and marketing expenses also saw substantial reductions.

Paytm also focused on enhancing payment economics, expanding its processing margin and significantly growing its UPI consumer GTV by 46 percent. The distribution of financial services saw substantial growth, scaling to Rs 2,593 crore for FY26. A key strategic decision for the next decade is Paytm's commitment to artificial intelligence.

Sharma has declared that all future investments will be directed towards AI, positioning it as the core operating system for the company. For FY27, Paytm anticipates revenue growth exceeding the 22 percent achieved in FY26, with indirect expenses growing at a slower pace. The company's proactive compliance with new regulations has minimal financial impact.