Paytm posts ₹123 crore Q1 FY26 profit, reversing year-ago loss on lending growth, expense control, and AI-led efficiencies.

• Revenue up 28% YoY to ₹1,918 crore; contribution margin expands to 60% from 50% with strong merchant payments growth.
• Financial services revenue doubles to ₹561 crore, driven by merchant loans and improving MSME credit penetration.
• AI adoption boosts profitability; ends quarter with ₹12,872 crore cash, targets 10 crore merchants for digital services.