Paytm Profit Fall: The Real Story

Paytm’s 98% drop in net profit looks alarming, but it’s largely a misunderstanding. Last year’s profit was boosted by a one-time ₹1,345 crore gain from selling its ticketing business, while this quarter saw a hit from a gaming company’s unpaid ₹190 crore loan recorded in other income. Despite the weak net profit, Paytm’s operating profit and margins have improved significantly—from –24% to +7%—showing a clear turnaround. DIIs also increased their stake by 4%, and the stock rose nearly 5% as the market focused on stronger fundamentals rather than one-off numbers.