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Paytm (One97 Communications) | The payments major that posted its first full-year profit in FY2026

2026.03.26

Article summary

Paytm, operated by One97 Communications, is a digital payments and fintech company founded in 2010 by Vijay Shekhar Sharma. Operating revenue for FY2026 (fiscal year ending March 2026) was ₹8,437 crore (1 crore = 10 million rupees), up 22% year on year, and net profit was ₹552 crore, the first full-year profit since listing. Payment volume handled was ₹23.8 lakh (1 lakh = 100,000 rupees) crore, with 77 million monthly transacting users. In 2024, Paytm Payments Bank was ordered to halt operations, after which the company moved to the TPAP model.

This article is based on what we could verify As of September 19, 2026 This page is based on the disclosures and news reports from each company that we were able to confirm as of that date. Amounts in the text follow the notation commonly used in India, with ₹1 crore = 10 million rupees, and yen figures are approximations calculated at a little over 1.7 yen to the rupee. Store counts, funding raised, and results at Indian companies change over short periods, so when making a business decision, please check the latest information in primary sources such as each company's own announcements.

What Paytm is

Paytm (Pay Through Mobile) is an Indian payments and fintech company operated by One97 Communications Ltd. Vijay Shekhar Sharma started it in 2010 as a mobile phone recharge service, and it now covers payments, financial services, and marketing for merchants.

The scale of Paytm's business

The first full-year profit, in FY2026 (fiscal year ending March 2026)

Operating revenue for FY2026 was ₹8,437 crore (about 146.8 billion yen), up 22% year on year, and net profit was ₹552 crore (about 9.6 billion yen), a turnaround from a net loss of ₹663 crore the previous year. It is the first full-year profit since listing. EBITDA also improved, from minus ₹1,506 crore to ₹502 crore. Payment volume handled (GMV) was ₹23.8 lakh crore, up 26% year on year, and monthly transacting users numbered 77 million.

Segment breakdown for FY2025 (fiscal year ending March 2025)

Total revenue for FY2025 was ₹6,900 crore (about 820 million dollars). The breakdown is as follows.

Payment services: ₹4,039 crore (58% of the total)
Financial services distribution: ₹1,703 crore (25%)
Marketing services: ₹1,158 crore (17%)

The shift to the UPI multi-bank model

In FY2025 the company completed its shift to a multi-bank model as a third-party application provider (TPAP). It partnered with public sector and private sector banks and restructured UPI payments so that they do not depend on a single bank.

Paytm's main services

Payment services

QR code payments: Paytm QR is widely used, mainly by small and mid-sized shops across India. The merchant network is among the largest in the country
Paytm Wallet: A prepaid electronic wallet. This was the core service of cashless payments before UPI spread
Payment Gateway: Providing payment functions to e-commerce sites and apps

Financial services

Paytm Money: A mutual fund and stock trading platform
Paytm Insurance: Distribution of insurance products
Distribution of small loans: Loans for consumers and merchants through partner banks

Marketing and commerce

Mini App Store: A mini app platform inside the Paytm app
Sales of digital goods: Mobile recharges, ticket booking, and utility bill payments

The challenges Paytm faces and the changes it has made

Its subsidiary Paytm Payments Bank was ordered by the RBI in March 2022 to stop onboarding new customers, and on January 31, 2024 it was ordered to halt all deposit taking and credit transactions from February 29 of that year. With that, the payments bank business has effectively ended. From there Paytm abandoned the payments bank model and moved to the TPAP model, which runs through partner banks.

When a license is halted overnight, the entire business built on it becomes unusable. For Japanese companies involved in regulated industries in India, it is an argument for not resting the foundation of a business on a single license.

How Japanese companies can use Paytm

Use as payment infrastructure: Supporting Paytm payments widens the reach to consumers when selling in India
Use as a marketing platform: Advertising and promotions inside the Paytm app can reach hundreds of millions of users
Rollout on the Mini App Store: Services can be offered on Paytm's platform without developing a separate app
Understanding fintech regulation: Paytm's experience with regulation is an essential case study for understanding India's fintech regulatory environment

Conclusion

Paytm is a company that has been on top of the spread of payments in India from the start, and in FY2026 it posted its first full-year profit since listing, with net profit of ₹552 crore. Shifting the center of its revenue to payment terminals for merchants and fees from financial services after losing the payments bank license is what worked. If you are looking for a partner with a point of contact to merchants, it is one of the candidates.