Digital payments company Paytm has entered a new phase after reporting its first-ever full-year profit in FY26. At the same time, some of its early investors sold shares worth around ₹964 crore through a major block deal.
The company’s improving financial performance, regulatory approvals, and stronger focus on its core business have helped rebuild market confidence, even though the recent stake sale caused temporary pressure on its stock price.
The latest transaction involved entities linked to SAIF Partners and Elevation Capital, which sold nearly 8.6 million shares in Paytm. This accounted for around 1.34% stake in the company. The shares were sold at an average price of ₹1,120.65 each, taking the total deal size to nearly $100 million.
Following the deal, Paytm shares fell between 3.5% and 5% during trading and slipped close to the ₹1,110 mark. However, market experts believe this was mainly profit booking by early investors and not a sign of weakness in Paytm’s business.
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Paytm Turns Profitable for the First Time
FY26 became a milestone year for Paytm as the company posted a consolidated net profit of ₹552 crore. In comparison, it had reported a loss of ₹663 crore in FY25.
The company also recorded strong revenue growth during the year. Paytm’s total revenue for FY26 stood at ₹8,437 crore, up 22.2% from ₹6,900 crore in the previous financial year.
The January-March quarter also showed major improvement. In Q4 FY26, Paytm reported a net profit of ₹183 crore, compared to a loss of ₹545 crore in the same quarter last year. Revenue for the quarter increased 18.4% year-on-year to ₹2,264 crore.
The turnaround was mainly supported by lower expenses and better operational efficiency. The company used AI-based systems to reduce costs and improve margins. Its EBITDA also turned positive at ₹502 crore in FY26, compared to a negative ₹1,507 crore in FY25.
Paytm’s financial position became stronger as well. By March 31, 2026, the company had cash reserves of ₹13,315 crore. This was supported by asset sales and improved working capital management.
Industry observers say Paytm’s focus on profitability instead of aggressive expansion has started giving positive results.
Large Block Deal Creates Market Buzz
Even as Paytm improved its financial performance, some of its early investors decided to reduce their holdings through large market deals.
Entities connected to SAIF Partners and Elevation Capital sold nearly 8.6 million shares in the company. Citigroup Global Markets India reportedly managed the transaction.
The deal attracted several large institutional investors. Major buyers included Societe Generale, hedge funds Ghisallo Master Fund LP and Viridian Asia Opportunities Master Fund, along with domestic fund houses such as Nippon India Mutual Fund, Sundaram Mutual Fund, and Edelweiss Mutual Fund.
The transaction also led to heavy activity in Paytm’s derivatives segment, with a sharp rise in open interest, showing increased trader participation.
This was not the first major exit by Paytm’s early investors. In November 2025, SAIF Partners and Elevation Capital had sold around 2% stake in the company through another deal worth ₹1,722 crore.
Despite the temporary fall in share price, analysts believe strong institutional buying reflects confidence in Paytm’s future growth potential.
Regulatory Issues and Strategic Changes Help Recovery
Over the past two years, Paytm has faced several regulatory challenges. One of the biggest setbacks came when the Reserve Bank of India cancelled the banking licence of Paytm Payments Bank in April 2026 due to compliance-related concerns.
The issue initially affected Paytm’s payment business and UPI market share. However, the company shifted its merchant settlement operations to Axis Bank, helping maintain business continuity.
Paytm also received an important regulatory boost when Paytm Payments Services got final approval from the RBI to operate as a Payment Aggregator in November 2025 after resolving earlier compliance issues.
Another key development was the exit of Antfin, an Alibaba Group-backed investor. After Antfin sold its remaining stake in 2025, Paytm became a fully Indian-owned company.
The company has also shifted its focus towards its core payments and financial services business. It sold non-core businesses like movie and event ticketing to Zomato and monetised overseas investments to improve its financial strength.
At the operational level, Paytm continued expanding its merchant network. Its Soundbox and POS device subscriptions reached 1.51 crore by March 2026, with 27 lakh new additions during the year.
The company’s monthly transacting users also recovered to 7.7 crore. Recently, Paytm introduced “Paytm Pocket Money,” a feature designed for teenagers with parental controls, aiming to attract younger users to digital payments.
With profitability achieved and major regulatory hurdles gradually easing, Paytm now appears focused on building stable and long-term growth in India’s competitive fintech market.