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One97 Communications, the parent of Paytm, reported its first-ever net & EBITDA profit in its Q1 results. The stock ended 3% higher on the back of the results.
By the numbers:
- Net profit: ₹122.5 cr vs loss of ₹839 cr same time last year
- Revenue: ₹1,917.5 cr vs ₹1,501.6 cr, up 27.7% YoY
The deets: the net profit came in at ₹123 crore, compared to a net loss of ₹839 crore a year ago, driven by a strong lending business and tight control over expenses.
In addition to the jump in revenue, total expenses dropped 18% to ₹2,061 crore from ₹2,467 crore in the same quarter last year, contributing further to the fintech firm’s profitability.
The company added that its Q1 net payment revenue rose, supported by growth in high-quality subscription merchants and improved payment processing margins.
Zoom out: Paytm’s turnaround comes at a time when Indian fintechs are under pressure to shift focus from growth to profitability. Regulatory scrutiny, intense competition, and evolving digital payment norms have pushed players to optimise costs and double down on core revenue drivers.
Paytm’s return to profitability could signal renewed investor confidence, not just in the company, but in the broader fintech sector.
