One 97 Communications, the parent company of Paytm, has reported a significant financial turnaround for the fiscal year 2026, showcasing a ₹2,008 crore improvement in EBITDA. The company’s EBITDA improved from a negative ₹1,506 crore in FY 2025 to a positive ₹502 crore in FY 2026. This marks Paytm’s first full year of profit, with a PAT of ₹552 crore, up from a negative ₹663 crore the previous year, reflecting a ₹1,215 crore improvement.
The revenue for FY 2026 reached ₹8,437 crore, representing a 22% year-over-year increase. The company attributed its growth to market share gains in both merchant and consumer payments, with consumer UPI GTV growth at 2.2 times the industry levels and a 27% year-over-year increase in merchant GMV. This was driven by continued product innovation and disciplined execution.
Paytm also reported an expansion in its payment processing margin, which exceeded 4 basis points, up from the previous guidance of over 3 basis points. This improvement was driven by pricing discipline and higher growth of profitable MDR-bearing instruments, including credit cards on UPI and affordability offerings such as EMI.
The distribution of financial services revenue scaled to ₹2,593 crore, growing 52% year-over-year and contributing an additional ₹890 crore to the company’s revenue. Paytm highlighted the role of AI-led operating leverage in cost optimisation, which was reflected in the company’s strong operating leverage embedded in its business model.
In Q4 FY 2026, Paytm reported revenue of ₹2,264 crore, an 18% increase year-over-year, with a contribution profit of ₹1,254 crore and an EBITDA of ₹132 crore, showing a ₹220 crore year-over-year improvement. The company noted that its reported numbers were impacted by the discontinuation of the PIDF scheme, and the FY 2026 UPI incentive is yet to be finalised.
Looking forward to FY 2027, Paytm expects revenue growth to accelerate with further EBITDA margin expansion. The company plans to drive this growth through the expansion of merchant payments, structural growth in its high-margin merchant loans distribution business, consumer lifecycle monetisation, and continued use of AI across the organisation.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).