Key Takeaways:
- Paytm swung to a ₹184 crore quarterly profit, compared to a ₹540 crore loss in the same period last year.
- Operating revenue grew over 18% to reach ₹2,264 crore for the quarter.
- Financial services distribution surged 52% annually, becoming a core engine for growth.
Fintech firm One 97 Communications, which operates Paytm, reported a consolidated net profit of ₹184 crore for the quarter ended March 31, reversing a ₹540 crore loss a year earlier, as revenue growth and expanding payment margins helped offset the impact of discontinued regulatory incentives.
Revenue from operations for Paytm Q4 Profits rose 18.4% year over year to ₹2,264 crore, compared with ₹1,912 crore in the same period last year, the company said in its earnings release issued Tuesday.
The company said quarterly results were affected by the discontinuation of the Reserve Bank of India’s Payments Infrastructure Development Fund, or PIDF, scheme and the pending finalization of fiscal 2026 UPI incentives.
“We were able to achieve our guidance of 30-40% offset of PIDF impact in Q4 FY2026,” the company said.
Comparable revenue, excluding incentives, stood at ₹2,254 crore, reflecting 26% year-over-year growth. Reported operating revenue also rose 3% sequentially, indicating sustained business momentum.
Payment Margins and Financial Services Drive Growth
Paytm said market share gains in merchant and consumer payments, along with expansion in financial services distribution, supported quarterly performance.
Paytm Q4 Profits reported contribution remained stable sequentially at ₹1,254 crore and increased 17% from a year earlier. Comparable contribution profit rose 31% year over year to ₹1,244 crore.
The comparable contribution margin improved to 55%, up 2 percentage points from the previous year, driven by higher payment-processing margins and a larger contribution from financial services.
The company said payment processing margin expanded to more than four basis points, exceeding earlier guidance of more than three basis points. It attributed the increase to pricing discipline and higher usage of profitable merchant discount rate-bearing payment instruments, including credit cards on UPI and EMI products.
Revenue from financial services distribution climbed 52% year over year to ₹2,593 crore during the fiscal year, making it one of the company’s fastest-growing business segments.
Reported EBITDA for the quarter stood at ₹132 crore, down 15% sequentially because of lower incentive income. However, comparable EBITDA rose 79% quarter over quarter to ₹122 crore, with margin improving to 5%.
The company also cited cost optimization and increased use of artificial intelligence across operations as drivers of operating leverage.
Company Flags PIDF Discontinuation Impact
The RBI introduced the PIDF scheme to accelerate the deployment of digital payment infrastructure in smaller towns and underserved regions, including northeastern states and the union territories of Jammu and Kashmir and Ladakh.
The scheme remained valid through Dec. 31, 2025. Paytm recognized ₹128 crore in PIDF incentive revenue during the six months ended Sept. 30, 2025.
In the latest quarter, PIDF incentives declined 89% sequentially and 80% year over year, while UPI incentives were absent, the company said.
In its investor communication, Paytm Q4 Profits advised investors to focus on comparable metrics that exclude PIDF and UPI incentives to assess the underlying business performance better.
For the full fiscal year ended March 31, Paytm reported revenue of ₹8,437 crore, up 22% year over year. EBITDA reached ₹502 crore, compared with a loss of ₹1,506 crore in the previous fiscal year.
Annual profit after tax stood at ₹552 crore, compared with a loss of ₹663 crore in fiscal year 2025.
