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Paytm posted a net profit of ₹184 crore, bouncing back from a ₹540 crore loss last year, and grew revenue by 18.4% to ₹2,264 crore.
After months of falling share prices earlier this year, the stock has now rebounded 20% from its March low.
Paytm also cleared up worries about Paytm Payments Bank by confirming it has no exposure after the Reserve Bank of India canceled the bank's license.
With profits rolling in and concerns addressed, further upside for Paytm shareholders is anticipated.