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NOIDA, India — One97 Communications Limited, the parent entity of digital payments giant Paytm, announced a significant financial turnaround for the third quarter ending December 31, 2025 (Q3 FY26). The company posted a consolidated net profit of ₹225 crore, a sharp reversal from the ₹208 crore loss reported in the same quarter last year.
This performance marks Paytm’s third consecutive quarter of profitability, signaling a stabilized growth trajectory following a period of intense regulatory scrutiny and market volatility.
Key Financial Highlights (Q3 FY26)
The company’s “AI-first” strategy and focus on high-margin services appear to be paying off. Revenue from operations climbed to ₹2,194 crore, driven by robust growth in merchant subscriptions and financial services distribution.
Metric Q3 FY26 Q3 FY25 Year-on-Year (YoY)
Revenue from Operations ₹2,194 Cr ₹1,828 Cr +20%
Net Profit / (Loss) ₹225 Cr (₹208 Cr) Turnaround
Contribution Profit ₹1,249 Cr ₹961 Cr +30%
EBITDA (Excl. ESOP) ₹156 Cr (₹223 Cr) Significant Gain
Core Business Engines Drive Growth
The surge in numbers was fueled by three primary segments:
Payments & Merchant Services: Revenue from payment services rose 21% YoY to ₹1,284 crore. The company saw its merchant device subscriptions (Soundboxes and POS machines) reach 1.44 crore, adding 27 lakh new devices over the past year.
Financial Services: Revenue from this segment grew by 34% YoY to ₹672 crore, supported by increased distribution of credit and other financial products.
UPI Dominance: Paytm’s consumer UPI Gross Merchandise Value (GMV) grew by 35% over the last nine months, significantly outpacing the industry average of 16%.
Cost Discipline and Cash Reserves
The company also demonstrated tighter control over its balance sheet. Total expenses fell slightly to ₹2,175 crore (down 2% YoY), largely due to lower employee benefit costs and optimized marketing spend.
Paytm ended the December quarter with a formidable cash balance of ₹12,882 crore, providing what the management describes as “substantial capital flexibility” for future expansion and potential strategic acquisitions.
Management Outlook
In a statement, the company attributed the results to “sustained growth across core payments and financial services businesses” and improved operating leverage. Despite the expiry of certain government incentives (PIDF), Paytm expects to maintain contribution margins in the mid-50% range by focusing on high-quality user engagement and AI-led operational efficiency.
