- Sustained profitability and growth driven by industry-leading monetisation across payments and financial services
- Continued leveraging AI capabilities led to expanded merchant payment leadership and higher consumer UPI market share
- Recorded more than double the UPI industry growth rate, with consumer UPI GMV up 35% over the last nine months
- Received all three key payment licenses for online, offline and cross-border payments for PPSL from RBI; resumed onboarding of online merchants
Paytm (One 97 Communications Limited), India’s full stack merchant payments leader serving MSMEs and enterprises, and a leading financial services distribution company, and the pioneer of mobile payments, QR codes, and Soundbox, today announced its financial results for the quarter ending December 2025 (Q3 FY26) reporting its third consecutive profitable quarter, driven by strong monetisation, higher payments GMV, merchant subscriptions, and distribution of financial services revenue.
In the December quarter, Paytm reported a profit after tax (PAT) of ₹225 crore, an improvement of ₹433 crore year-on-year. EBITDA for the quarter improved to ₹156 crore with an EBITDA margin of 7%, reflecting an improvement of ₹379 crore YoY driven by revenue growth and continued operating leverage. Contribution profit stood at ₹1,249 crore, up 30% YoY with a contribution margin of 57%, an improvement of 5 percentage points YoY.
Paytm UPI continued to gain market share for the third consecutive quarter. Paytm’s consumer UPI GMV grew 35% in the last nine months versus industry GMV growth of 16%.
In Q3 FY26, operating revenue grew 20% YoY to ₹2,194 crore, led by higher payments GMV, increase in merchant subscriptions and growth in distribution of financial services. On a like-for-like basis, revenue growth was approximately 25%. Paytm said that there was an insignificant impact on revenue from industry stoppage of rent payments through credit card (PA PG guidelines, Sep 2025) and Real Money Gaming (RMG) Act, Aug 2025, as the company has taken proactive compliance measures over the past few years.
Payments services revenue (including other operating revenue) grew 21% YoY to ₹1,284 crore. Net payment revenue increased by 25% YoY to ₹613 crore, due to improved payment processing margin and increase in merchant subscriptions which grew by 27 lakh YoY to reach 1.44 crore. Payments GMV grew 24% YoY to ₹6.2 lakh crore.
In Q3 FY 2026, distribution of financial services revenue grew 34% YoY to ₹672 Cr, driven by continued growth in distribution of merchant loans and wealth products. This is despite lower volumes under the Default Loss Guarantee (DLG) program, which leads to lower revenue and lower other direct costs.
Indirect expenses declined 8% YoY to ₹1,092 crore, driven by lower employee costs (including ESOP costs) and lower Provisions for Doubtful Debt (PDD). Cash balance stood at ₹12,882 crore as of the quarter ending December 2025, providing continued capital flexibility to expand business.
During the quarter, the offline merchant business was transferred to Payments Services Limited, a wholly owned subsidiary of the company, in line with regulatory guidelines. Payments Services Limited received final approval from the Reserve Bank of India (RBI) to operate as an Online Payment Aggregator. Further, the RBI authorised PPSL to operate as a Payment Aggregator for offline and cross-border payments.