Paytm: Payments Bank Disruption to Merchant-Focused Fintech

has undergone a significant business-model reset following the Reserve Bank of India’s restrictions on Paytm Payments Bank. The company has increasingly shifted its focus towards merchant payments, financial-services distribution and operating efficiency, with the transformation now visible in its financial performance. The most visible change is the improvement in profitability. Paytm reported its first full-year profit of ₹552 crore in FY26, compared with a ₹663 crore loss in FY25. Operating revenue increased 22% YoY to ₹8,437 crore, while EBITDA improved by ₹2,008 crore YoY to ₹502 crore. The momentum continued into Q1FY27. Revenue from operations rose 28% YoY to ₹2,448 crore, while PAT increased 79% YoY to ₹220 crore. Quarterly EBITDA reached a record ₹203 crore, with the company attributing the improvement to growth across payments and financial services and better operating leverage.