Paytm Swings to Profit on AI Cost Savings, Payments Biz

Fintech reports ₹123 crore Q1 profit against a loss in the previous quarter and a year earlier

- Mansi Verma

Ne97 Communications, Paytm's parent, on Tuesday reported a net profit of ₹123 crore in the April-June quarter of FY26 (Q1FY26), buoyed by artificial intelligence-led improvements in its cost structure.

This turnaround comes after a ₹539.8 crore loss in the three months through March, driven mainly by a one-time exceptional expense of ₹492 crore from accelerated ESOP cost and an additional ₹30 crore in other impairments. Excluding these exceptional items, the adjusted loss had stood at ₹23 crore in Q4FY25.

The Noida-based company's first-quarter results, announced in an exchange filing after market hours, mark a recovery from an ₹840 crore net loss in the June quarter of the previous fiscal year.

This is the first time that Paytm has reported profit after its business gained scale. It had reported a small quarterly profit in 2014 when it had just started.

Shares of the company settled 3.4% higher at ₹1,052.60 apiece on the BSE on Tuesday.

The company also reported a positive EBITDA (earnings before interest, taxes, depreciation, and amortization) of ₹72 crore in the quarter.