New Delhi, Jan 30, 2026: Paytm (One 97 Communications Limited), India’s leading full-stack merchant payments and financial services platform, today announced its financial results for the quarter ending December 2025 (Q3 FY26), reporting its third consecutive profitable quarter. The performance was driven by strong monetisation across payments and financial services, higher payments GMV, and increased merchant subscriptions.

For the quarter, Paytm posted a profit after tax (PAT) of ₹225 crore, reflecting strong year-on-year growth. EBITDA rose to ₹156 crore with a margin of 7%, reflecting revenue growth and operating leverage. Contribution profit stood at ₹1,249 crore, with a contribution margin of 57%, improving from the previous year.

Payments and UPI Growth:

  • Paytm UPI consumer GMV grew 35% over the past nine months, more than double the industry growth rate of 16%, marking the third consecutive quarter of market share gains.

  • Payments services revenue (including other operating revenue) grew 21% YoY, while net payment revenue increased 25% YoY, supported by improved payment processing margins and a growth in merchant subscriptions to 1.44 crore.

  • Payments GMV rose 24% YoY.

Financial Services Distribution:

  • Revenue from distribution of financial services grew 34% YoY, driven by growth in merchant loans and wealth product distribution.

  • The growth occurred despite lower volumes under the Default Loss Guarantee (DLG) program.

Operational Efficiency and Cash Position:

  • Indirect expenses declined 8% YoY due to lower employee costs (including ESOPs) and reduced Provisions for Doubtful Debt (PDD).

  • Cash balance remains strong, providing flexibility for business expansion.

Regulatory Milestones:
During the quarter, Paytm’s offline merchant business was transferred to Payments Services Limited, a wholly owned subsidiary, in line with regulatory guidelines. Payments Services Limited received RBI approval to operate as an Online Payment Aggregator, while PPSL was authorised to operate as a Payment Aggregator for offline and cross-border payments.

Strategic Highlights:

  • Sustained profitability and growth driven by industry-leading monetisation across payments and financial services.

  • Expanded merchant payment leadership and higher consumer UPI market share leveraging AI capabilities.

  • Revenue growth remained resilient despite regulatory changes impacting rent payments via credit cards and the Real Money Gaming Act, reflecting proactive compliance measures.

Commenting on the results, Paytm said

“Q3 FY26 marks our third consecutive profitable quarter, reflecting continued execution excellence, strong monetisation, and growing market leadership in payments and financial services. Our focus on AI-driven insights, operational efficiency, and regulatory compliance positions us well for sustainable growth in the coming quarters,” the company stated.