Paytm Q1 profit swings to Rs 122 crore; revenue jumps 28%

Paytm just pulled off what many thought was still a few quarters away – a profit. In Q1 FY26, One97 Communications (Paytm’s parent) posted a consolidated net profit of Rs 122.5 crore. That’s a sharp reversal from a Rs 839 crore loss a year ago.

This isn’t just a financial stat. It’s a sentiment shift. After months of regulatory overhang, scepticism, and intense scrutiny, Paytm’s comeback attempt finally has some teeth.

Q1 FY26 results snapshot

Why this matters now

This is Paytm’s first full quarter post the regulatory blow in early 2024, when the RBI clamped down on Paytm Payments Bank. Many wrote the stock off. But since then, Paytm has pivoted—moved parts of its payments business to third-party banks and focused more on scaling lending and subscriptions.

Investors are warming up. The stock is up over 130 per cent from its 52-week low and is now hovering around Rs 1,050. Still, it’s nearly 50 per cent below IPO levels.

About the company

In case you’ve lost track, Paytm isn’t just your neighbourhood QR code. It started as a mobile wallet and has since become a full-blown fintech platform – offering payments, lending, insurance, ticketing, wealth products and more. It serves both consumers and merchants and is backed by its tech-led ecosystem and partnerships with NBFCs and banks.

The bottom line

Paytm’s Q1 FY26 results mark a significant milestone – it’s finally making money. But it’s too early to declare a full turnaround. Lending growth, cost discipline, and platform strength are ticking the right boxes. However, the regulatory scars haven’t fully healed, and Paytm needs to sustain profitability across multiple quarters to really win back long-term investor confidence.

If you’re betting on Paytm, know that the story is getting better, but it’s not a finished product yet.

Should Paytm be a part of your portfolio?

Markets will always have their ups and downs. That’s why basing your investment decisions on short-term results or market noise can be risky. True wealth is built by staying invested for the long haul.

At Value Research Stock Advisor, our analysts cut through the noise to help you focus on what really matters: Identifying long-term compounders. So instead of reacting to a single quarter, ask the bigger question: Can Paytm become a wealth compounder over the next decade?

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Disclaimer: This story was created with the assistance of artificial intelligence and has been reviewed by human experts for accuracy and is intended for informational purposes only. Please do your own due diligence and research before making any investment decisions.