One 97 Communications, the parent company of Paytm, has reported a remarkable turnaround in FY26, achieving sustained profitability for the first time. The company posted an operating revenue of ₹8,437 crore, reflecting a 22% year-on-year growth, alongside a net profit of ₹552 crore, a significant recovery from a previous loss. This financial performance has shifted market sentiment, with eight out of ten brokerages now maintaining Buy ratings on the stock. Analysts from firms like Goldman Sachs and Jefferies praised the company's operational efficiency and growth potential, with stock prices rallying over 6% following the earnings announcement. Key business drivers include a 27% increase in Merchant GMV and improved payment processing margins. Additionally, the implementation of AI has led to cost optimizations, with indirect expenses decreasing by 16%. Looking ahead, management has set ambitious targets for FY27, expecting revenue growth to surpass FY26 levels and aiming for EBITDA margins of 15-20% within three years.