PAYTM
Paytm Posts ₹552 Crore Net Profit in FY26, First Since 2021 IPO
India’s largest fintech company stages a dramatic comeback after RBI’s payments bank crackdown in 2024.
Paytm has reported a net profit of ₹552 crore for FY26, marking its first full-year profit since listing on Indian stock exchanges in 2021. The result is a sharp reversal from a net loss of ₹540 crore posted in the same quarter last year. TradeAlone learns the turnaround comes just two years after the Reserve Bank of India effectively shut down Paytm Payments Bank, triggering one of the most severe crises in Indian fintech history. The company's revenue also grew 22% year-on-year, signalling a broad-based operational recovery.
From Crisis to Comeback: What the Numbers Say
Paytm's FY26 results have caught analysts and investors off guard. The company swung from a ₹540 crore net loss to a ₹552 crore net profit in a single year. Revenue grew 22% year-on-year, driven by a recovery in payments and merchant services. EBITDA also improved significantly, reflecting tighter cost controls and a leaner operating structure. The scale of the turnaround is rare in Indian corporate history. Very few companies have recovered this quickly after a direct regulatory intervention of this magnitude. CEO Vijay Shekhar Sharma and his leadership team are widely credited for executing a difficult and fast-paced restructuring plan.
One 97 Communications Limited belongs to the Technology › Software – Infrastructure sector. Here’s a quick read on where the business and the stock stand today.
The RBI Shock That Nearly Broke Paytm
On January 31, 2024, the RBI issued a sweeping order against Paytm Payments Bank. The bank was directed to stop onboarding new customers immediately. It was also barred from accepting new deposits, processing fresh wallet top-ups, and crediting FASTag accounts. The RBI cited persistent non-compliances as the reason, indicating that the company had been warned multiple times but failed to act. The payments bank was the backbone of Paytm's entire ecosystem. It held wallet licenses, processed UPI settlements, and supported the company's fast-growing lending business. Before the RBI order, Paytm was disbursing loans at a peak rate of ₹14,000 crore per quarter. After the order, loan disbursements collapsed by more than 70%, falling to under ₹3,800 crore per quarter. Revenue fell 35% and losses more than doubled in the months that followed. The company's stock lost over 50% of its value within weeks of the RBI announcement. At its lowest point, Paytm had shed more than 80% of its market value since its IPO in November 2021.
How Paytm Rebuilt Its Business and What Comes Next
Paytm's recovery rested on three key pillars: rebuilding its payments infrastructure through third-party banking partners, rationalising costs aggressively, and refocusing its lending business on higher-quality borrowers. The company migrated its UPI and merchant payment operations away from its own payments bank and onto partner banks. This allowed it to retain its merchant network and continue processing transactions without the restricted banking subsidiary. The lending business, though still below its peak, has been gradually recovering as Paytm rebuilt its distribution model with new banking and NBFC partners. TradeAlone understands that management has also reduced its fixed cost base substantially since early 2024, which has directly contributed to the improvement in profitability margins. Looking ahead, the key question is whether Paytm can scale its lending business back toward its pre-crisis levels. Loan disbursements remain well below the ₹14,000 crore quarterly peak. However, the return to profitability gives the company a stronger balance sheet and renewed credibility with financial partners. Investors will now watch closely whether FY26's profit is a one-time recovery or the beginning of a sustained earnings cycle for India's most closely watched fintech company.
Key Facts
- Paytm reported a net profit of ₹552 crore in FY26, its first full-year profit since its 2021 IPO.
- In the same quarter last year, Paytm had posted a net loss of ₹540 crore.
- Revenue grew 22% year-on-year in the latest quarterly results.
- The RBI ordered Paytm Payments Bank to stop onboarding new customers on January 31, 2024.
- Loan disbursements fell more than 70%, from ₹14,000 crore per quarter to under ₹3,800 crore per quarter after the RBI order.
- Paytm's stock had lost more than 80% of its value from its 2021 IPO price before the recovery began.
Market Impact
Paytm's return to profitability is likely to renew institutional investor interest in the stock, which had been heavily discounted following the RBI crisis. A sustained recovery in loan disbursements and revenue growth could drive a significant re-rating of the company's valuation multiples. However, investors will remain cautious until Paytm demonstrates that its lending volumes can consistently return toward pre-crisis levels.
PAYTM Technical and Fundamental Analysis
One posts a 5.7% three-month gain, but softens in the last few weeks. Thin margins at 6.6% leave limited room for error — any demand softness or cost spike hits the bottom line hard. Revenue grows at only 2.2% and profits at 0.0% CAGR. In effect, the business treads water. The stock gives back 10.9% in the last month despite a positive three-month run. As a result, the earlier momentum appears to be fading. Revenue grows at 2.2% CAGR and the PEG stands at 99.00. The growth does not match the price the market asks. Furthermore, flat price action adds no technical catalyst. A lower price or faster revenue growth would improve the odds. Check Fundamentals of One 97 Communications Limited.
PAYTM
One 97 Communications Limited (NSE: PAYTM) gains 10% intraday, tests resistance
One 97 Communications Limited (NSE: PAYTM) stock moves up 10% intraday to ₹1590.1, testing resistance at ₹1575.
One 97 Communications Limited (PAYTM) gained +10% to test resistance at ₹1590.1 on the NSE on 10 Aug 2026. The stock has hit resistance but has not cleared it, shifting the trendline status from approaching resistance to hitting resistance. This move comes as the stock is 19% above its 50-DMA, indicating an extended position. PAYTM operates in the technology sector under software infrastructure, and today’s move appears to be driven by technical factors rather than sector-wide momentum.
Technical setup — trendlines & DMA
Currently, the 6-month support trendline stands at ₹1367.42, which is 14.00% below today’s price. Resistance was previously at ₹1574.64, and the stock has just hit this level, though it has not yet cleared it. The 50-DMA is at ₹1211.5, and the 200-DMA is at ₹1192.5, both of which the stock is well above, indicating a bullish trend. PAYTM is trading in the upper third of its 52-week range, which spans from ₹930.6 to ₹1459.5, suggesting that a significant portion of the move is already priced in.
Snapshot: ₹1,590.10 on 2026-08-10 (chart frozen at publication)
Fundamentals & business context
With a PE ratio of 142.9 and profit margins at 7.2%, PAYTM’s valuation appears stretched given its revenue CAGR of 2.2% and lack of profit CAGR over the past five years. This suggests that the market may be pricing in future growth or a turnaround that hasn’t yet materialized in the financials. Institutional ownership stands at 46.2%, indicating a level of confidence from sophisticated investors, though this doesn’t necessarily align with the current fundamental picture. There is no NSE catalyst today driving the move, which is primarily technical in nature.
Algorithmic scorecard
The overall algorithmic scorecard reflects a technically strong but fundamentally weak position for PAYTM. Two of the strongest signals are the bullish trend, with the 50-DMA above the 200-DMA, and the breakout above resistance levels with momentum. These indicate positive technical sentiment and upward price trajectory. However, the weakest signals are the slow revenue CAGR of 2.2% and the declining profit CAGR, which highlight the company’s struggle to grow earnings consistently. Additionally, the low profit margin of 7.2% leaves little room for error, posing a risk if costs rise or revenue growth stalls.
Company outlook
In the latest concall, PAYTM’s management highlighted sustained improvement in EBITDA profitability, with indirect expenses growing slower than revenue. They also pointed to the potential for higher margins in the long term due to AI-driven efficiencies and market opportunities. Growth in financial services revenue per customer was noted, with a focus on scalable business models and achieving product market fit. These elements suggest a business in transition, with efforts underway to improve profitability and drive future growth.
Management’s forward guidance includes sustained improvement in EBITDA profitability and the potential for higher margins in the long term. They are focusing on AI-driven efficiencies and market opportunities to achieve this. The growth drivers appear to be the financial services segment, with an emphasis on increasing revenue per customer through scalable models. Management did not provide specific revenue growth percentages or margin targets but outlined initiatives aimed at improving profitability and expanding market presence.
Get all details on PAYTM — P&L, peers, shareholding and more on TradeAlone.
PAYTM
One 97 Communications Limited (NSE: PAYTM) extends gains, moves up 5% intraday
One 97 Communications Limited (NSE: PAYTM) stock price moves up 5% intraday to ₹1525.9, approaching resistance at ₹1575.
One 97 Communications Limited (PAYTM) extended gains by +5% to ₹1525.9 on the NSE on 10 Aug 2026, pushing higher within a consolidating uptrend. The stock is approaching resistance at ₹1575, which is just 3.2% away. This move is technical, driven by the stock’s positive momentum and bullish sentiment, despite not having cleared the resistance level yet. PAYTM operates in the technology sector, specifically in software infrastructure, and today’s move reflects its strong technical position rather than sector-wide momentum.
Technical setup — trendlines & DMA
The current 6-month trendline structure shows PAYTM trading above its 6-month support floor at ₹1367.42, which is 10.39% below today’s price. Resistance is at ₹1574.64, just 3.19% above the current price. The 50-DMA at ₹1211.5 is above the 200-DMA at ₹1192.5, indicating a bullish trend. PAYTM is currently 18.99% above the 50-DMA and 20.89% above the 200-DMA, suggesting it is in an extended position. The stock is in the upper third of its 52-week range, indicating that a significant portion of its move is already priced in.
Snapshot: ₹1,525.90 on 2026-08-10 (chart frozen at publication)
Fundamentals & business context
With a PE of 142.9 and profit margins at 7.2%, PAYTM’s valuation appears stretched relative to its current earnings, especially given its revenue CAGR of 2.2%. This suggests that the market may be pricing in future growth or a potential turnaround, despite the slow revenue growth. Institutional ownership stands at 46.2%, indicating that a significant portion of the smart money views PAYTM as a viable investment. There was no NSE catalyst today, so the move is purely technical.
Algorithmic scorecard
The overall algorithmic scorecard reflects a technically strong but fundamentally weak position for PAYTM. Two of the strongest signals are the bullish trend, indicated by the 50-DMA being above the 200-DMA, and the breakout above resistance levels with momentum. These signals suggest that the stock has strong upward momentum and is in a positive trend. On the weaker side, the low profit margin of 7.2% and the negligible dividend yield of 0% represent risks. The low profit margin leaves little room for error, while the lack of dividend income reduces the appeal for income-seeking investors.
Company outlook
In the Q4FY26 concall, PAYTM highlighted sustained improvement in EBITDA profitability, with indirect expenses growing slower than revenue. The company also noted the potential for higher margins in the long term due to AI-driven efficiencies and market opportunities. Growth in financial services revenue per customer was emphasized, with a focus on scalable business models and achieving product market fit.
Management provided forward guidance indicating sustained improvement in EBITDA profitability, with indirect expenses expected to grow slower than revenue. They highlighted the potential for higher margins in the long term, driven by AI-driven efficiencies and market opportunities. The growth drivers include financial services revenue per customer, with a focus on scalable business models and achieving product market fit. Specific initiatives mentioned were AI-driven efficiencies and expanding market opportunities, though no exact timelines were provided.
Get all details on PAYTM — P&L, peers, shareholding and more on TradeAlone.
PAYTM
One 97 Communications Limited (NSE: PAYTM) gains 6% intraday, tests resistance
One 97 Communications Limited (NSE: PAYTM) stock gains 6% intraday, testing resistance at ₹1431.9. The technology sector stock shows a strong upward trend.
One 97 Communications Limited (PAYTM) tested resistance today, gaining +6% intraday to close at ₹1431.9 on the NSE. This move comes as the stock approaches its 6M resistance level of ₹1431, though it has not yet cleared this barrier. The rise may be attributed to the company’s recent NSE filing disclosing the allotment of 4,48,629 equity shares under its Employees Stock Option Scheme 2019. PAYTM operates in the technology sector, specifically software infrastructure, and today’s move appears to be more company-specific rather than a sector-wide trend.
Technical setup — trendlines & DMA
The current 6M trendline structure shows PAYTM’s support floor at ₹1367.42, which is 4.50% below today’s price. Resistance is at ₹1431, just 0.1% away from the current price. The stock is trading 14% above its 50-DMA of ₹1183.0, indicating an extended move. Despite the 50-DMA being below the 200-DMA of ₹1190.1, PAYTM’s price is comfortably above both moving averages, suggesting a strong position. The stock is in the upper third of its 52W range, indicating that a significant portion of the move is already priced in.
Snapshot: ₹1,431.90 on 2026-08-03 (chart frozen at publication)
Fundamentals & business context
With a PE of 134.4, PAYTM’s valuation appears stretched given its current profit margin of 7.2% and a modest revenue CAGR of 2.2% over the past five years. This suggests that the market may be pricing in expectations of a future turnaround or higher growth, which the current business performance does not yet justify. Institutional ownership stands at 46.3%, indicating a level of confidence from sophisticated investors, though there was no specific NSE catalyst today to drive the move.
Algorithmic scorecard
The overall algorithmic scorecard reflects a technically strong but fundamentally weak position for PAYTM. Two of the strongest signals are the stock’s position above both moving averages and its bullish sentiment over the last 30 days, with a higher average volume on up days. These indicators suggest systematic accumulation and positive momentum. On the flip side, the two weakest signals are the slow revenue CAGR of 2.2% and the thin profit margin of 7.2%, which leave the company vulnerable to market fluctuations and limit its room for error.
Company outlook
Management provided a cautiously optimistic outlook in the Q4FY26 earnings call. They highlighted sustained improvement in EBITDA profitability, with indirect expenses growing slower than revenue. The company sees potential for higher margins in the long term due to AI-driven efficiencies and market opportunities. Growth in financial services revenue per customer is expected, with a focus on scalable business models and achieving product market fit. Management did not provide specific revenue growth percentages or margin targets but emphasized the importance of AI efficiencies and scalable models for future performance.
Get all details on PAYTM — P&L, peers, shareholding and more on TradeAlone.
-
ARVIND2 days agoArvind Limited (arvind) Inaugurates State-of-the-art Garment Manufacturing Facility in Varanasi
-
COFORGE1 day agoCoforge Limited (NSE: Coforge) Named Leader in Everest Group QE Services for AI Applications and Systems PEAK Matrix® Assessment 2026
-
Consumer Defensive1 day agoLt Foods Limited Launches Campaign for Rozana with Celebrity Chef Ranveer Brar
-
Healthcare1 day agoSudeep Pharma Limited (sudeepphrm) FDA Approval Enables New Pharma Greenfield Facility Operations
-
E2E1 day agoE2e Networks Limited Plans 5.4 MW Nvidia Blackwell Expansion of India’s AI Factory
-
Conglomerates1 day agoDcm Shriram Limited (dcmshriram) Q2 FY27: 22% Revenue Growth at ₹3,977 Crore
-
RAYMONDREL1 day agoRaymond Realty Limited (raymondrel) Secures ₹210 Crore Investment for Ten X Realty West
-
Auto Parts1 day agoJbm Auto Limited Q2fy27: Revenues Up 21.06%, Net Profit Grows 12.46%