Paytm Q1 results are out, and this time it’s a big win. Paytm’s parent company, One97 Communications, reported a net profit of Rs 122.5 crore for the quarter ending June (Q1 FY26). That’s a huge turnaround from a loss of Rs 839 crore last year during the same period.
The good news didn’t stop there. Revenue jumped 28% year-on-year to Rs 1,918 crore, thanks to more merchant subscriptions, higher GMV (gross merchandise value), and stronger growth in financial services.
What Drove the Profit?
Paytm didn’t just cut costs—it also earned more from other income, which grew by 74.6% to Rs 241 crore. That’s up from Rs 138 crore last year.
But it’s not just about “other income.” Paytm also improved in its core business. The EBITDA (earnings before interest, tax, depreciation, and amortisation) turned positive. It posted Rs 71.5 crore in EBITDA, compared to a loss of Rs 793 crore in Q1 last year.
The EBITDA margin stood at 3.7%, which shows that Paytm is now managing costs better and making more money per transaction.
Strong Contribution Margins
Another highlight from the Paytm Q1 results is the contribution profit—which reached Rs 1,151 crore, a 52% jump year-on-year. The contribution margin stood at 60%. This was driven by:
- Better payment margins
- More revenue from financial services
- Lower direct costs
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Stock on the Rise
Paytm’s stock is riding high. On Tuesday, it rose again, marking three straight days of gains. Over the past month, it’s up 19%. That’s a strong bounce, though the stock still trades 50% lower than its IPO price of Rs 2,150.
Analyst Take: Still a Mixed Bag
Market experts are not all on the same page. Out of 19 analysts watching the stock:
- 9 say Buy
- 7 suggest Hold
- 3 recommend Sell
While the profit is a big win, some are unsure if this kind of other income can be repeated. Also, questions remain around RBI rules and regulations after the recent crackdown.
The Paytm Q1 results show that the company is on the road to recovery. With better cost control, rising revenues, and strong contribution margins, this could be the turning point. But the real test will be how Paytm performs without relying on “other income.”
For now, investors seem happy. Let’s see if this momentum continues.
Also Read IDBI Bank Q1 Profit Jumps 17% to Rs 2,007 Cr in FY26
