Paytm Q1 results: After posting the first-ever profit, here's what long term charts indicate

Paytm shares are in focus in Wednesday’s trading session after the company reported a sharp turnaround in its financials in the Q1FY26 earnings. The company reported first first-ever net profit of ₹122 crore for the Q1FY26, led by multiple factors. Following the results, the share price showed a muted strong response by opening 3.4% higher. Later, the gains were erased in the late-morning session. However, shares recouped the losses to trade back in green in the mid-market session.

Q1FY26 results

The fintech firm reported its first-ever consolidated net profit at ₹122.5 crore for the Q1FY26, mainly on account of cost optimisation and an increase in payment revenue. Paytm had posted a net loss of ₹840 crore in the year-ago period.

"EBITDA and PAT turned profitable at ₹72 crore and ₹123 crore, respectively, demonstrating AI-led operating leverage, a disciplined cost structure and higher other income," Paytm said in a statement. The company reduced its employee benefit expenses by a substantial margin from ₹952 crore in the previous year’s same quarter, as compared to ₹643 crore in the Q1FY26.

Structural turnaround in the company cheered the investors. However, analysts sound a little cautious about Paytm as its financial segment revenue was largely aided by non-DLG (Default Loss Guarantee) models, which the analyst of global brokerage firms expect to taper in coming quarters.

Chart check

Shares of Paytm have gained nearly 60% since March 2025, indicating sustained momentum in the stock price. They shares made a new record low level of ₹310 in May 2024 after RBI took regulatory action on the company. The shares swung back to ₹1000 levels in December 2024 as the restriction on the firm eased. Later, it witnessed profit booking at higher levels, which led to a nearly 40% drop in the share price by March 2025.

However, shares are back in focus after jumping nearly 60% from the recent lows. On technical charts, the shares are showing renewed momentum due to strong fundamentals. On monthly charts, the stock has formed a cup & handle chart pattern, which indicates a breakout from long-term resistance of the stock. The monthly chart indicates the stock giving a breakout from the resistance line of ₹1000.

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