1. At a Glance – Blink and You’ll Miss the Drama
One97 (a.k.a. Paytm, the app that refuses to uninstall itself from Indian phones) is sitting at a market cap of ~₹74,700 Cr with the stock hovering around ₹1,168. In the last 3 months, returns are negative (~-10%), but zoom out one year and suddenly it’s +44%. Confusing? Welcome to Paytm.
Q3 FY26 numbers show ₹2,194 Cr revenue (+20% YoY) and ₹225 Cr PAT (+208% YoY). Yes, profit. No, not a typo. EBITDA margin is finally positive at ~7%. Payments still dominate revenue, but financial services are growing up like a rebellious teenager. The company is almost debt-free (₹160 Cr debt — chai money at this scale) but ROE and ROCE are still negative, reminding us that one profitable quarter doesn’t make a monk.
So… is this a turnaround story or just a well-edited trailer? Let’s dig. 🍿
2. Introduction – From IPO Trauma to Therapy Phase
If Indian markets had a support group, Paytm would be the guy saying, “Hi, I listed at ₹2,150 and now I’m finding myself.” Since its infamous IPO, One97 has lived through regulatory punches, business transfers, RBI bans, Twitter trolls, and more board meetings than Diwali parties.
But FY25–FY26 feels different. Cost discipline is visible. Marketing burn is down. Payments bank drama is slowly ring-fenced. And operational EBITDA has crossed into positive territory. Investors who once laughed nervously are now… cautiously curious.
The core question today is simple: Is Paytm finally
behaving like a business, not a subsidy scheme?
3. Business Model – WTF Do They Even Do?
Think of Paytm as a Swiss Army Knife for money — payments, loans, tickets, ads, credit cards, insurance, soundboxes that shout “Payment received!” louder than your neighbour’s kid.
Three Main Buckets:
- Payments Services – boring, low margin, high volume
- Financial Services – sexy margins, regulatory mood swings
- Marketing & Commerce – ads, ticketing, credit cards, vibes
The trick is to use payments as bait, then upsell financial products and ads. Simple PowerPoint logic. Hard execution.
4. Financials Overview – The Numbers That Matter
Quarterly Performance Snapshot (Q3 FY26)
| Metric | Latest Qtr | YoY Qtr | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 2,194 | 1,828 | 2,061 | +20% | +6% |
| EBITDA (₹ Cr) | 155 | -223 | 140 | NA | +11% |
| PAT (₹ Cr) | 225 | -208 | 21 | +208% | +971% |
| EPS (₹) | 3.52 | -3.26 | 0.33 | NA | NA |
Commentary: This is the first time Paytm looks like it’s not bleeding from every limb simultaneously.
5. Valuation Discussion – Reality Check Time
Method 1: P/E
- Annualised EPS (conservative): still low
- Stock P/E ~138×
Conclusion: Market is pricing hope, not history.
Method 2: EV/EBITDA
