Paytm on Wednesday reported its first-ever full-year profit, posting a profit after tax of Rs 552 crore for FY2026, a milestone that marks a significant turnaround for the payments company after years of losses that deepened following the regulatory shutdown of its banking arm in early 2024.
The company reported revenue of Rs 8,437 crore for the full year, up 22% year-on-year, driven by market share gains in both merchant and consumer payments and a fast-growing financial services distribution business.
For the January–March quarter, operating revenue stood at Rs 2,264 crore, up 18% on a reported basis. Net profit for the quarter came in at Rs 183 crore, an improvement of Rs 370 crore year-on-year on a comparable basis.
The clearest growth story in the results was on UPI. Paytm's consumer UPI gross transaction value grew 46% year-on-year in Q4 FY26 — more than twice the industry growth rate of 21% — with the company gaining UPI market share every single month through FY2026. Monthly transacting users expanded by 50 lakh over the year to reach 7.7 crore.
On the merchant side, GMV growth accelerated from 24% in the December quarter to 27% in the March quarter. Subscription merchants reached 1.51 crore, with 27 lakh net additions over the year. Payment processing margins held above 4 basis points, helped by rising volumes in credit cards on UPI and EMI-based affordability products.
Financial services distribution, which Paytm has been positioning as a high-margin growth engine, delivered revenue of Rs 750 crore in Q4 alone, up 37% year-on-year. The number of customers accessing financial services through the platform rose from 5.5 lakh to 7.5 lakh over the year. The company also reported improved monetisation in equity broking, margin trade funding and wealth products including Paytm Gold.
Cost discipline was equally visible. Indirect expenses fell 3% year-on-year to Rs 1,122 crore even as the company continued investing in its platform. Cash on hand stood at Rs 13,315 crore as of March 2026.
Looking ahead, Paytm said it expects revenue growth to accelerate in FY2027 alongside further expansion in EBITDA margins, citing merchant payments expansion, consumer lifecycle monetisation, financial services scaling, and continued deployment of artificial intelligence across operations as the primary drivers.
