Paytm achieves first full-year profit milestone, but earnings heavily reliant on cash reserves.

Paytm achieves first full-year profit milestone, but earnings heavily reliant on cash reserves. The fintech giant reported ₹552 Cr profit in FY26, a major turnaround from ₹663 Cr loss previously. However, nearly half of this profit comes from "other income" generated by its ₹13,315 Cr cash balance earning interest and investment returns, rather than core business operations. Revenue from operations grew 22% to ₹8,437 Cr, signaling strong scaling in payments and financial services. Analysts note this reflects the J-curve phenomenon where platform companies invest heavily before achieving scale-driven profitability. The key positive indicator is that core businesses have stopped burning capital and are now generating cash.