Paytm posts net profit of Rs 184 crore in Q4, revenue rises 18.4%

One97 Communications reported a consolidated net profit of Rs 184 crore in Q4 FY26, supported by higher revenue and controlled indirect expenses

One97 Communications, which operates the Paytm brand, posted a consolidated net profit of ₹184 crore in the fourth quarter of FY26 (Q4 FY26) compared to a loss of ₹540 crore in Q4 FY25.

 

Sequentially, the Noida-based company’s net profit declined 18.2 per cent from ₹225 crore in Q3 FY26. In Q2 FY26, the company had posted a net profit of ₹21 crore.

 

It reappointed Ashit Ranjit Lilani as non-executive independent director for a second consecutive term of five years from July 2026 to July 2031.

 

Paytm’s revenue from operations grew 18.41 per cent year-on-year (Y-o-Y), while expenses marginally increased 5.3 per cent in Q4 FY26.

 

 

The firm earned ₹2,264 crore in revenue from operations in Q4 FY26 compared to ₹1,912 crore in Q4 FY25. Sequentially, this was up 3.2 per cent from ₹2,194 crore in Q3 FY26.

 

Revenue from operations includes earnings accrued from services such as payments, distribution of credit, marketing, and other items.

 

Paytm received ₹70 crore in Unified Payments Interface (UPI) incentives from the Centre. Its Payments Infrastructure Development Fund (PIDF) incentive was recorded at ₹50 crore.

 

In total, Paytm spent ₹2,269 crore in Q4 FY26 compared to ₹2,155 crore in Q4 FY25. On a quarter-on-quarter (Q-o-Q) basis, expenses grew 4.32 per cent from ₹2,175 crore in Q3 FY26.

 

These expenses include payment processing charges, marketing and promotional expenses, employee benefits, cloud, data-centre and software expenses, among others.

 

Meanwhile, Paytm’s indirect expenses, which include sales and marketing and non-sales employee costs, among other things, declined marginally by 3 per cent from ₹1,160 crore in Q4 FY25 to ₹1,122 crore in Q4 FY26.

 

“ESOP costs (included within indirect costs) for FY26 came in at ₹174 crore, below the guided range of ₹250-275 crore, on account of ESOP lapses upon attrition. For FY27, ESOP costs are expected to be in the range of ₹250-300 crore,” the company said in its release.

 

The company’s other income declined 20.5 per cent from ₹224 crore in Q4 FY25 to ₹178 crore in Q4 FY26. Sequentially, this declined 16 per cent from ₹212 crore.

 

Other income refers to the company’s non-core earnings such as dividends or interest, among others.

 

On having ₹13,315 crore in the bank as of FY26, the company said the cash would be used for reinvestment across capital expenditure, scaling the margin trade funding (MTF) business, investments in artificial intelligence (AI), and others.

 

Paytm may also consider inorganic growth through investments, it said.

 

“We also want to keep dry powder for selective inorganic action, only at the right price and only where strategically additive. We will not deploy capital simply because we have it; the optionality of cash is itself worth something in the present environment,” it added.

 

The number of merchants subscribing to Paytm’s Soundbox, a device that provides audio alerts on transaction completion, grew to 15.1 million, with the company adding 2.7 million devices during the year.

 

The company stated that it was deploying agentic assistance across engineering operations such as coding, review, testing and deployment, allowing faster delivery cycles and lower software development costs.

 

“AI also strengthens fraud detection and collections prioritisation, contributing to the cost discipline visible in FY26,” it added.