Paytm (One 97 Communications Limited) posted a strong set of earnings for the quarter ended June 30, 2025 (Q1 FY26), with both revenue and profitability showing significant improvement. The company turned profitable at both EBITDA and PAT levels, driven by robust growth in merchant payments and financial services.
Key financial highlights
For Q1 FY26, Paytm reported an operating revenue of ₹1,918 crore, up 28% year-on-year (YoY) from ₹1,502 crore in Q1 FY25. This was supported by higher gross merchandise value (GMV), a rise in subscription merchants, and growth in distribution of financial services.
Contribution profit stood at ₹1,151 crore, increasing 52% YoY, with contribution margin improving to 60% from 50% a year ago. The company achieved profitability at the EBITDA level, reporting ₹72 crore (a margin of 4%), compared to a loss of ₹792 crore last year. Net profit came in at ₹123 crore, marking a turnaround from a net loss of ₹840 crore in Q1 FY25.
Business performance
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GMV for the quarter rose 27% YoY to ₹5.4 lakh crore.
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Merchant subscriptions (including devices) grew to 1.30 crore, up 21 lakh from last year.
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Distribution of financial services revenue doubled to ₹561 crore, led by merchant loans and improved collections.
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Net payment revenue rose 38% YoY to ₹529 crore.
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Average Monthly Transacting Users (MTUs) were 7.4 crore during the quarter.
The company also maintained a healthy cash balance of ₹12,872 crore as of June 2025, providing flexibility for expansion and innovation.
Segment-wise revenue (₹ crore)
| Segment | Q1 FY26 | Q1 FY25 | YoY Change |
|---|---|---|---|
| Payment Services | 1,044 | 884 | ↑18% |
| Distribution of Financial Services | 561 | 280 | ↑100% |
| Marketing Services | 247 | 321 | ↓23% |
| Other Operating Revenue | 67 | 16 | ↑319% |
| Total Revenue from Operations | 1,918 | 1,502 | ↑28% |
Operational efficiency
Paytm continues to reduce costs and improve efficiency:
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Indirect expenses (excl. ESOPs) fell 19% YoY to ₹1,049 crore.
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ESOP costs dropped sharply to ₹30 crore from ₹247 crore last year.
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Marketing costs for customer acquisition fell 65% YoY to ₹62 crore.
Outlook
The company stated that it expects to maintain its leadership in merchant payments and financial services while scaling its AI-powered technology stack. It aims to deepen penetration in tier-2 and tier-3 cities, expand internationally, and improve monetization opportunities across its ecosystem.
With a turnaround in profitability and improving margins, Paytm is optimistic about sustaining its growth trajectory in the coming quarters.
