Paytm Share Price Dips 2% Despite Turning Profitable in Q1 FY26

Market Performance

On July 23, the Paytm share price slipped nearly 2%, trading at ₹1,031 per share as of 9:45 AM.

This drop came in despite the company reporting its first operationally-driven quarterly profit since listing on the stock exchanges.

Main News

One 97 Communications, the parent company of Paytm, posted a net profit of ₹123 crore in Q1 FY26. This marks a major turnaround from the net loss of ₹839 crore in Q1 FY25.

This is a notable shift in the company’s financial trajectory, indicating stronger operational performance.

Company Details

In addition to turning profitable, Paytm reported key financial highlights that reflect steady growth and improved efficiency:

• Revenue from operations: ₹1,917.5 crore in Q1 FY26
  ↳ 28% increase year-on-year
• EBITDA: ₹72 crore
  ↳ Up from losses in Q4 FY25 and Q1 FY25
• EBITDA Margin: 4%
• Net Profit: ₹123 crore
  ↳ Against a net loss of ₹839 crore last year

The company attributed this performance to:

• Growth in subscription-based merchants
• Increase in Gross Merchandise Value (GMV)
• Boost in revenues from financial service distribution

Paytm also emphasized its AI-led operating leverage, a disciplined cost structure, and higher other income as contributing factors to profitability.

Summary of the Article

• Paytm share price fell by 1.9%, even after reporting a net profit of ₹123 crore in Q1 FY26.
• This marks the company’s first profit driven by operations since going public.
• Revenue grew 28% YoY, while EBITDA stood positive at ₹72 crore.
• Performance improvement was supported by subscription growth, higher GMV, and strong financial service distribution.
• No brokerage, analyst, or future expectation data has been included to maintain neutrality.