📈 Paytm Flips the Script—₹123 Cr Profit

☀️ Good morning, it’s Wednesdaaaay!

Friday junior is almost here—and so is your midweek booster of news, nonsense, and nuance. Whether you're dodging Delhi’s drizzle or debating whether Paytm is finally back, we’ve brewed up your daily fix of the boldest business bites and startup spice.

🫖 Chai Shots

• 💸 Paytm finally flips profitable with ₹123 crore in Q1: After years in the red, Paytm turned a corner this quarter, riding a 28% jump in revenue to ₹1,918 crore. With improved payment margins and soaring financial services income, contribution margins hit 60%—a 10-point YoY jump. Cash reserves now stand at ₹12,872 crore. More in the Big Brew 👇

• 📵 TRAI, DoT squabble leaves spam fighters in limbo: TRAI has declined DoT’s proposal to directly regulate pesky telemarketers, arguing it’s too complex to implement. As a result, telcos remain on the hook for the 55 billion promotional messages sent monthly—despite lacking full control over third-party bulk SMS senders.

• 🛬 Air India seeks $200M loan to buy planes it’s already flying: To bridge fleet gaps ahead of its mega 570-aircraft order, Air India is borrowing $200 million via its GIFT City arm to purchase Boeing 777s it currently leases—many of which serve India–US routes.

• 🥃 Tilaknagar eyes Imperial Blue in big whiskey shake-up: Mansion House maker Tilaknagar Industries is reportedly acquiring the Imperial Blue brand from Pernod Ricard. The deal aligns with Pernod’s global restructuring and could revive Imperial Blue’s slowing sales in India’s 260-million-case whiskey market.

📈 Market Masala

• 📉 Markets end flat as Nifty slips below 25,100: Sensex fell 14 points to 82,187 and Nifty dropped 30 points to 25,061. All sectoral indices closed red—media (-2.5%) and PSU banks (-1.6%) led losses. Midcaps underperformed with BSE Midcap index down 0.6%.

• 🏢 Invesco to sell ₹3,400 crore stake in Oberoi & Lodha: Invesco plans to offload holdings in Oberoi Realty (₹1,987 crore) and Lodha Developers (₹1,425 crore) via block deals, both at a 4% discount. Goldman Sachs is managing the sale.

• 🏗️ GMR Airports to raise ₹5,700 crore to refinance costly debt: GMR is borrowing at a blended 10.5% rate to replace high-interest loans. The refinancing includes support from Tata Capital, JP Morgan, and Deutsche Bank, and comes after restructuring helped cut rates for Delhi Airport debt.

• 📊 Dixon Tech’s profits double as revenue nears ₹13K crore: Dixon posted ₹280 crore profit in Q1, a 100% YoY jump. Revenues soared 95% to ₹12,836 crore as the electronics maker saw strong demand across verticals, though shares dipped slightly ahead of the results.

🌍 Global Masala

• 🌏 S&P 500 hits record as Trump seals Japan trade pact: U.S. markets were buoyant as Trump’s “massive” deal with Japan included 15% reciprocal tariffs and $550B investment promises. The S&P 500 notched its 11th record close, even as GM warned of tariff pain. Trump also teased upcoming Europe and LNG deals.

• 💊 AstraZeneca to invest $50B in U.S. pharma push: Facing looming 200% tariffs from the US, the British drugmaker is pouring money into a new Virginia facility focused on obesity drugs, part of a broader reshoring trend in pharma.

• 📉 European markets drop on weak earnings and tariff anxiety: France’s CAC 40 and Germany’s DAX slipped alongside the pan-European Stoxx 600, with big losers in defense and healthcare after disappointing results from Lindt and Sartorius.

🧉 The Big Brew: Paytm’s Big Pivot Pays Off

After being battered in the markets post-IPO and wrestling with massive quarterly losses, Paytm has finally pulled off what many thought was unlikely—a profitable quarter. And not just barely.

The fintech firm reported a ₹123 crore profit in Q1FY26, a dramatic turnaround from a ₹839 crore loss in the same quarter last year. This marks the first time Paytm has entered the black since its listing in 2021.

Here’s how they did it:

• 💰 Revenue up 28% YoY: Driven by higher merchant subscriptions, financial services, and GMV.

• 📊 Contribution margin at 60%: A 10 percentage point YoY jump shows leaner operations and better margins on each rupee earned.

• 💸 Financial services revenue doubled: ₹561 crore came from loans, insurance trail fees, and better collections.

• 💳 Net payment margin rose 38%: Thanks to higher processing margins and stickier merchants.

• 🧠 AI + cost discipline = operating profit: EBITDA hit ₹72 crore (4% margin), while the company dropped ESOP costs and embraced a leaner backend.

🧐 What does this mean?

It’s a credibility win for Paytm. With cash reserves at ₹12,872 crore and margins trending higher, the company is no longer just a cash-burning story. While regulatory hurdles remain (especially in credit), Paytm’s core payments engine now looks sustainable—even without MDR (Merchant Discount Rate) support.

As it looks to hit 15–20% EBITDA margins in 2–3 years, Paytm’s finally giving the Street a reason to believe. For India’s startup ecosystem, this could signal a new wave of cautious optimism toward fintech IPOs.

🚀 Startup Scoop

• 🏢 IndiQube raises ₹374 crore from top investors before IPO: The managed workspace provider raised funds from marquee names like WhiteOak, Invesco, and Motilal Oswal ahead of its ₹700 crore IPO. Domestic Mutual Funds bagged 67% of the anchor allotment. IndiQube saw 27.5% revenue growth last year.

• 🏋️ ApClub lands ₹2 crore pre-seed to grow at-home fitness: Bengaluru-based ApClub raised funds from Curefit and PedalStart to scale its doorstep fitness services. Already present in 40+ apartment complexes, the startup plans to launch a mobile app and hit $1M ARR by 2026.

• ☀️ Candi Solar aims for major Series D to expand in India & Africa: The decentralised solar firm is targeting “tens of millions” in Series D funds by 2026. Backed by Norfund and STOA, it plans to grow its sustainable energy footprint in India and South Africa’s booming commercial solar market.

🧠 Chai Break Trivia

🤔 Did you know? India is the world’s largest whiskey market by volume (the US is by value), clocking over 260 million cases sold in 2024 alone- nothing to be proud of here 🥲. That’s more whiskey than the U.S., U.K., and France combined. 🥃 No wonder Tilaknagar is gunning for Imperial Blue!

🔮 What’s Brewing Next

• 📊 Big tech earnings to drop tomorrow: Tesla and Alphabet’s Q2 reports will test investor faith in AI and robotaxis.

👋 That’s a wrap for July 23!

Whiskey deals, solar surges, and profit party at Paytm—today’s brew had range. Hit forward and sip with a friend. We’ll be back tomorrow with more stories that stir your morning right.

Stay caffeinated, stay curious.
— Team Masala Chai ☕️