Paytm Q1 FY26 Results: Net Profit At Rs 122.5 Crore, Revenue Up 28% YoY—Details

Paytm Q1 FY26 Results: One 97 Communications Ltd, the parent of Paytm, reported a strong performance in Q1 FY26, posting a net profit of Rs 122.5 crore, a sharp improvement from a loss of Rs 839 crore in the same quarter last year.

The company’s financial and operational metrics showed healthy growth across key business segments.

Revenue and Profitability

Paytm’s revenue rose 28% YoY to Rs 1,917 crore, compared to Rs 1,502 crore in Q1 FY25. Profitability also improved significantly on the back of strong operating performance and higher other income. One-time interest income from tax refunds contributed to the increase in PAT (Profit After Tax), which stood at Rs 123 crore.

EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation) turned positive at Rs 72 crore, with an EBITDA margin of 4%, reflecting a more disciplined cost structure and margin expansion.

Strong Growth in Payments and Financial Services

Gross Merchant Value (GMV) processed during the quarter grew 27% YoY to Rs 5.39 lakh crore. Net payment revenue rose 38% YoY to Rs 529 crore, supported by an increase in payment processing margins and growth in high-quality subscription merchants.

Distribution of financial services revenue doubled to Rs 561 crore, driven by growth in merchant loans, improved collection efficiency, and higher trailing revenues from the digital lending portfolio.

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Record Merchant Subscriptions

As of June 2025, Paytm had 1.30 crore merchant device subscriptions, marking an increase of 21 lakh devices YoY. Growth was attributed to the company’s focus on high-quality devices and a strong service network.

To fuel further expansion, especially in tier-2 and tier-3 cities, Paytm is continuing to invest in its sales network. Sales-related costs rose 19% YoY. However, overall capital expenditure remained in check, as the company focused on refurbishing old devices and reducing new device costs.

Other Income and Cash Reserves

Other income increased to Rs 241 crore from Rs 138 crore last year, supported by interest income. However, the company expects this to decline gradually due to lower reinvestment yields following a 100 bps repo rate cut earlier this year.

Paytm reported a cash balance of Rs 12,872 crore as of June 2025, up from Rs 8,108 crore in June 2024. The company saw a cash increase of Rs 4,764 crore over the year, primarily due to the monetisation of two non-core assets: its entertainment ticketing business and stock rights in PayPay, which together contributed Rs 4,386 crore.