MUMBAI: Paytm swung to profit in the June quarter after two straight quarters of losses, posting net profits of Rs 123 crore on a consolidated basis as attempts to check costs and streamline operations leveraging AI paid off. The Noida-based fintech, whose business had been impacted following RBI’s directive to wind down its banking unit due to non-compliance, had posted its first profit in Q2FY25 but it was due to a one-time gain accrued through the sale of its entertainment ticketing business to Zomato. Paytm had reported losses of Rs 840 crore in the year-ago quarter. The company said that it expects further improvement in profitability going ahead.“EBITDA and PAT turned profitable, demonstrating AI-led operating leverage, disciplined cost structure and higher other income (receipt of interest on tax refund in Q1FY26),” the company said in its earnings statement on Tuesday. Revenue from operations increased to Rs 1,917.5 crore in Q1 from Rs 1,501.6 crore, translating into a year-on-year growth of nearly 28% on the back of a strong growth in the number of merchant subscriptions and distribution of financial services. Paytm had been working to turn around its business after the RBI action, shifting its focus to core businesses and sharpening compliance processes. The company said that its cash balance increased by Rs 4,764 crore over the past year on account of the monetisation of two non-core assets.The stock price of Paytm ended at Rs 1052.6 apiece on the BSE on Tuesday, up nearly 3.4%.