Paytm On Track To Deliver Profit In Q1 FY26: Vijay Shekhar Sharma 

Fintech major Paytm is on track to deliver profit in the next quarter (Q1 FY26) as per the management’s guidance, founder and CEO Vijay Shekhar Sharma said.

“We are committed to working on profitability. We have not made any profit in the last few years. I can tell you very happily that with the team and the effort in the business that we have done, we are clearly committed to delivering profit in the next quarter,” Sharma said at ET Now Global Business Summit. 

It is pertinent to note that in its Q3 FY25 earnings call, Paytm CFO Madhur Deora outlined that the company is expecting to turn profitable on an adjusted EBITDA basis in one or two quarters.

Meanwhile, Sharma said that Paytm will focus on payments, credit, and wealth management in the next two years, as per Economic Times.

“Very clearly, payments are our foundation and we believe that payments can make profits on a standalone basis,” Sharma noted. 

He said that the company aims to serve 200-250 Mn people in the country, and added that it is recalibrating its strategy around credit distribution. For this, it is incorporating mechanisms like first loss default guarantee (FLDG) to manage risks. Credit would be one of the drivers for the company’s profitability.

On the insurance front, Sharma pointed out that the company will not put a lot of effort into the segment and will retain it as it is. 

Commenting on the rising retail investor participation in the country, Sharma inferred that the growth of demat accounts and mutual fund investments will be India’s next big achievement after the digital payments revolution.

Paytm’s consolidated net loss narrowed 6% year-on-year (YoY) to INR 208.5 Cr in Q3 FY25 from INR 221.7 Cr in the same quarter last year on the back of recovery in its digital payments business.

In the preceding September quarter, the fintech major posted a net profit of INR 930 Cr on the back of the sale of its movie and events ticketing business to foodtech major Zomato.

It is pertinent to note that Paytm faced a setback last year when the Reserve Bank of India (RBI) clamped down on Paytm Payments Bank on January 31, 2024. Following this, the company lost its stronghold in the payment business and its share price slumped to as low as INR 310 apiece in May 2024 from over INR 1,000 in January last year. 

Following this, the company streamlined its business operations by divesting non-core businesses. It sold its movies and events ticketing business to Zomato for INR 2,048 Cr in an all-cash deal. Later, it also approved the sale of its 100% stake in its wholly owned subsidiary, Xceed IT Solutions Private Limited. 

Meanwhile, Paytm said on Monday (February 17) that its wholly owned mutual fund distribution subsidiary,  Paytm Services, has partnered with SBI Mutual Fund to roll out a new SIP plan starting at INR 250. 

SEBI chairperson Madhabi Puri Buch and SBI chairman C S Shetty launched the initiative today. The partnership will enable new users to begin their investment journey with just INR 250, which can be invested daily, monthly, or on a weekly basis. 

Shares of Paytm ended today’s trading session 1.8% higher at INR 737.75 on the BSE.