One97 Communications, Paytm’s parent company, on Tuesday reported a net profit of ₹123 crore in the April-June quarter of FY26 (Q1FY26), buoyed by artificial intelligence-led improvements in its cost structure. This sharp turnaround comes after a ₹539.8 crore loss in the three months through March, driven mainly by a one-time exceptional expense of ₹492 crore from accelerated ESOP cost and an additional ₹30 crore in other impairments. Excluding these exceptional items, the adjusted loss had stood at ₹23 crore in Q4FY25.The Noida-based company’s first-quarter results, announced in an exchange filing after market hours, mark a significant recovery from an ₹840 crore net loss in the June quarter of the previous fiscal year.Shares of the company settled 3.4% higher at ₹1,052.60 apiece on the BSE on Tuesday. Read more: What if AI didn’t need the internet? Indian semiconductor startups have an answerThe company also reported a positive Ebitda (earnings before interest, taxes, depreciation, and amortization) of ₹72 crore in the quarter.“This is the first quarter where we’ve reported pure Ebitda, without adjusting for ESOP costs. Going forward, we’ll remove the ESOP line entirely, and report pure employee expenses,” Vijay Shekhar Sharma, Paytm founder and chief executive officer, said during an earnings call on Tuesday.Consolidated revenue from operations in Q1FY26 rose 28% year-on-year to ₹1,918 crore, helped by an increase in merchant subscription and growth in financial services revenue, the company added. Meanwhile, sequentially, the revenue remained almost flat.“Merchant payments, across both small and large online and offline enterprises, will remain a key focus, and we expect a lot of innovation in that area,” said Madhur Deora, president and group chief financial officer. “While wallet and BNPL (buy now, pay later) are not immediate quarterly priorities, we are actively working on them. We will continue to grow our merchant lending business, while personal loan growth will depend on a broader recovery in the market.”Rahul Jain, director at Dolat Capital, noted that while Paytm has mentioned about focus on these products, no timelines were provided for some new product initiatives. “Growth for now will be led by merchant payments and merchant loans.”The company also announced a rejig of its board. Deora will step down from the board after the upcoming AGM but will continue in his role as the company’s finance head.“Operating responsibilities are far more important for now, especially with our future growth line items, they’re all geared towards consistent profitability from the same core businesses, international expansion,” said Sharma. He added that Deora’s focus will, hence, shift towards active business decisions and growth opportunities.The board also appointed Urvashi Sahai, currently Paytm’s General Counsel, as a Whole-time Director for a five-year term starting 22 July. Independe in a formal or creative style for better SEO.Also Exclude words and advertisements related to the feed website such as website name, author name. You must only respond with the modified content. Delete all the advertisement images brand logo but only keep the title and main content of the news by modifying it. You must only respond with the modified content. 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Paytm reports a profit of ₹123 crore for Q1, boosted by cost-saving measures driven by AI, and has restructured its board.
