Shares of Paytm parent One 97 Communications surged over 6% in early trade on Thursday after the company reported a sharp turnaround in profitability and posted its first-ever full-year profit.
The stock rose 6.06% to Rs 1,177.55 in morning trade. Over the past one year, the stock has gained more than 34%, outperforming the benchmark Nifty 50 index.
The rally comes after the company reported strong March quarter earnings and a return to profitability despite regulatory challenges linked to Payments Bank.
Paytm posted a net profit of Rs 184 crore in Q4 FY26, compared to a loss of Rs 540 crore in the same period last year.
The company also reported its first-ever annual profit, with profit after tax (PAT) of Rs 552 crore for FY26.
Revenue for the quarter rose 18.4% year-on-year to Rs 2,264 crore.
Meanwhile, EBITDA turned positive at Rs 132 crore against a loss of Rs 88 crore a year earlier. EBITDA margin stood at 5%, helped by operating leverage and cost discipline, the report said.
Investor sentiment was also supported by continued growth in Paytm’s payments and lending businesses.
Consumer UPI gross transaction value rose 46% year-on-year during the quarter, while monthly transacting users increased to 7.7 crore.
Revenue from financial services climbed 37% to Rs 750 crore, while payment services revenue stood at Rs 1,265 crore.
The company’s contribution profit rose to Rs 1,254 crore, with contribution margin improving to 55%, reflecting better operating efficiency and scaling benefits.
The strong earnings come at a time when Paytm is trying to stabilise its business after regulatory action against Paytm Payments Bank disrupted parts of its ecosystem last year.
The company has since shifted to a partner-led model for payments and UPI operations.
Despite the regulatory overhang, investors appeared encouraged by the company’s improving profitability, revenue growth and operational performance.
Analysts and investors are closely watching whether Paytm can maintain profitability after years of losses.
The latest results indicate:
The company’s return to annual profitability is being viewed as a key milestone for the fintech major.
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