PaytmImage Credit source: PTI
Shares of One 97 Communication, the parent company of digital payment and fintech company Paytm, saw a strong rise on Thursday. After the company's quarterly results came out, investor confidence strengthened and the stock rose by about 6 percent. During Thursday morning trading, Paytm shares rose by about 5.8 percent to Rs 1,175.
In the last one year, the company's shares have registered a rise of about 34 percent. During this period, while Nifty 50 index remained almost flat, Paytm has performed better. The market cap of the company has reached more than Rs 74 thousand crores.
Profit of Rs 184 crore in the fourth quarter
The company has registered a net profit of Rs 184 crore in the fourth quarter of the financial year 2025-26 i.e. Q4 FY26. The company had suffered a loss of Rs 540 crore in the same quarter last year. That means the company has shown a big change in one year. Paytm said that profit has increased due to improvement in operating performance and growth in financial services business. Financial year 2026 has been the first year for the company when the company has registered profit for the entire year. The total PAT i.e. profit after tax of the company in FY26 was Rs 552 crore.
Good increase in company's earnings also
In the March quarter, the company's total income i.e. revenue increased by 18.4 percent on annual basis to Rs 2,264 crore. At the same time, EBITDA has also become positive now. While last year the company's EBITDA was at a loss of Rs 88 crore, this time it reached a profit of Rs 132 crore. EBITDA Margin was 5 percent. According to the company, this improvement was seen due to cost control and better operating efficiency.
Strong growth in UPI and loan business
Paytm's payment and lending business also witnessed continuous strength. The company's Consumer UPI Gross Transaction Value increased by 46 percent on an annual basis. Apart from this, the number of users doing monthly transactions increased to 7.7 crores. It is clear from this that active users on the company's platform are continuously increasing. Earnings from financial services also increased by 37 percent to Rs 750 crore. Whereas payment services revenue stood at Rs 1,265 crore.
Contribution profit and margin improvement
Contribution profit of the company increased to Rs 1,254 crore. Contribution margin has also increased to 55 percent. This means that the company is now able to earn better earnings from its business model and is getting the benefit of increasing scale. The last one year has been challenging for Paytm. After the RBI action on Paytm Payment Bank, many business operations of the company were affected. This had an impact on the growth of the company.
However, now the company is running UPI and payment services through partner-based model. Under the new model, Paytm is gradually trying to stabilize its business and expand it rapidly again. The latest quarterly results have indicated that the company now seems to be coming out of the difficult times and investor confidence is getting stronger again.
-
Mother’s Day 2026: You can make your mother feel special with these 10 gifts, that too in budget
-
Characteristics of men who attract women
-
Akshay Kumar undergoes vision correction surgery, takes a break from shooting
-
Mamta Banerjee refuses to resign! Can she remain CM even after defeat? Know what the Constitution says and when action can be taken
-
Daughter of Hong Kong ‘furniture king’ Cathy Wong sells apartment at reported loss
