One97 Communications Ltd, the parent company of Paytm, reported a net profit of ₹225 crore for the quarter ended December 31 (Q3 FY26), marking its third consecutive profitable quarter. The company had posted a net loss of ₹208 crore in the same period last year.
This recovery is explained by strong growth in payment transactions, merchant subscriptions – notably sounding boards – and the distribution of financial services, including personal and commercial loans.
Operating revenue grew 20 per cent year-on-year to ₹2,194 crore, supported by a 24 per cent rise in gross merchandise value (GMV) to ₹6.2 lakh crore. The company’s EBITDA improved to ₹156 crore with a margin of 7%, a year-on-year improvement of ₹379 crore. Indirect costs declined 8% to ₹1,092 crore, helped by lower personnel costs and provision for bad debts.
Paytm’s payment services revenue grew 21% year-on-year to ₹1,284 crore, while net payments revenue grew 25% to ₹613 crore. Merchant subscriptions reached 1.44 crore, with 27 lakh devices added in the past year.
Revenue from financial services distribution jumped 34% year-on-year to ₹672 crore. Contribution profit increased by 30% to ₹1,249 crore, with a contribution margin of 57%.
Paytm also benefited from incentives under the RBI’s Payments Infrastructure Development Fund (PIDF), earning ₹216 crore for the nine months ended December. With the PIDF set to expire by the end of 2025, the company expects its contribution margin to remain near 50%.
The company highlighted consumer UPI share gains, with its UPI GMV growing 35% over the past nine months, more than double the industry growth of 16%. Backed by an AI-driven strategy and product-led innovation, Paytm continues to strengthen its leadership across merchant categories and improve unit profitability.
The company closed the quarter with a cash balance of ₹12,882 crore.
Actions of One 97 Communications Limited closed the day at Rs 1,171.80 (down 0.44%) on January 29.
