Paytm swings to ₹123 cr Q1 profit, aided by AI-led cost efficiency; rejigs board
One97 Communications, the parent company’s parent company, reported a clear profit on Tuesday. La26 financial years (Q1FY26), which were floated with improvements in artificial intelligence in cost structure, 123 Crore in April-June quarter.
This sharp turn is a La539.8 Crore loss, essentially one -time extraordinary expenses La492 crore from accelerated esop cost and additional La30 crore in other disorders. Except these extraordinary elements, corrected loss La23 Crore in Q4fy25.
The first quarter results of the NOIDA -based company, a stock market file after the market hours La840 Crore net loss in June quarter of the previous financial year.
The company’s shares reached 3.4% higher. La1,052.60 at BSE on Tuesday.
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The company also reported a positive EBITDA (pre -interest earnings, taxes, depreciation and depreciation). La72 crore in the quarter.
Vijay Shekhar Sharma, Founder and Chairman of the Executive Board of Paytm, said during the call for earnings on Tuesday, “This is the first quarter we declare without setting esop costs and setting the costs of ESOP.
Consolidated income from operations in Q1FY26 increased by 28% annually LaThe company has helped to help the growth in the 1,918 Crore, trader subscription and growth in financial services income. In the meantime, in turn, the income remained almost constant.
Mayor and Group Chief Finance Director Madhur Deora said, “Merchant payments in both small and large online and offline enterprises will remain a key focal point and we expect a lot of innovation in this field”. “Although the wallet and BNPL (now buy, then pay) are not just a priority every three months, we work actively on them. We will continue to expand our merchant loan business, and personal credit growth will depend on a wider improvement in the market.”
Donda Capital Director Rahul Jain, although the focus of Paytm on these products, said that some new product initiatives have not been provided for a timeline. “For now, growth will be managed by merchant payments and merchant loans.”
The company also announced that the board of directors rejected. Deore will resign from the board of directors after the upcoming AGM, but will continue its role in the company’s finance chairman.
Sharma, “business responsibilities are much more important for now, especially with future growth line elements, all of the same basic enterprises, the consistent profitability of international expansion,” he said. He added that Deora’s focus will go to active business decisions and growth opportunities.
The Board has also appointed Urvashi Sahai, the General Advisor to Paytm, as a full -time director for a five -year period from 22 July. Independent director Bimal Julka also resigned and expressed his desire to focus on the interests of interest in developing technologies and the ease of doing business.
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In general, analysts believe that the company improves financial metrics.
“The results were better on all fronts with its strong profitability due to the results of the results, stable growth, efficient cost management, and powerful profitability arising from the orientation of improved execution.” He said.
Most of the Paytm revenues are obtained from payment, financial and marketing services. Payment Services Income (including other operating revenues) increased by 23% La1.110 Crore. Net payment income increased by 38% LaThe company is 529 Crore due to the increase in payment processing margin and device additions.
For incremental income, if the company re -determines the Government Trader Discount Rate (MDR) in the last quarter, the potential income for payment business is now out of the table, although it has expressed optimism in making money from the UPI services.
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In June, Finance Minister Nirmala Sithaman announced that no MDR would be taken into operations through the United Payment Interface (UPI), and heard about the previous industry speculation that large traders may soon be accused of re -accusing.
This policy clarity may affect Paytm’s plans to increase increasing income through Money Making Money. Sharma, “What and when we will see what we are informed.
In October last year, the Indian National Payments Corporation prevented RBI Paytm Payments Bank from being included in new customers due to compliance concerns, allowing Paytm to buy users on the UPI platform through common banks.
Income from financial services increased La561 Crore, 3% increase in the quarter La545 Crore.
This income doubles every year LaMerchant credit payments and 280 Crore managed by better collections than the assumed loss guarantee (DLG) portfolio. However, the transition to non -DLG payments by the largest credit partner is expected to slow down sequential income increase even as payments increase.
In accordance with the DLG, the paytm guarantees the lendt -giving partners a guarantee for some of the loans it facilitates in case of default.
General Financial Services Number of customers increased slightly in the quarter to 560,000.
“There is no significant improvement in terms of personal loans, the mixture of traders and personal loans remains the same as the last quarter, de said Deore.
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