Paytm reports first profitable quarter as Q1 FY26 PAT stands at ₹122.5 cr

Paytm parent, One97 Communications Ltd. , registers its first-ever consolidated net profit since the day of its listing in 2021 in this quarter. Net profit stood at ₹122.5 crore the first quarter of this fiscal year that ended on June 30, 2025. Last year, during the same period, the company recorded a loss of ₹84.01 crore.

In the September quarter last year, the company had amassed a Profit after Tax (PAT) of ₹930 crore, due to a one-time exceptional gain of ₹1,345 crore on account  of sale of entertainment ticketing business. As a result, this is the first quarter since its 2021 listing, when the company has achieved PAT profitability. Paytm saw over 7.4 crore Monthly Transacting Users (MTU) in Q1 FY26.

Consolidated total income stood at ₹2,158.9 crore, up 31.7% from ₹1,639.1 crore in the same quarter last year. Total expenses declined 18.58% to ₹2,016.1 crore from ₹2,476.4 crore during the same period.

The company had the highest reduction in its marketing and promotional expenses, which dropped by 58% to just ₹99.8 crore from ₹221.4 crore a year ago. This decline was followed by its sharp 32% cut in employee benefit expenses to ₹642.6 crore from ₹952.5 crore a year ago. Meanwhile, sales team costs also went up 19% YoY to strengthen tier-1 presence and grow in tier-2/3 cities

“[On a standalone basis] EBITDA and PAT turned profitable at ₹72 crore (margin of 4%) and ₹123 crore respectively, demonstrating AI-led operating leverage, disciplined cost structure and higher other income,” the company said in a statement.

The company saw a 23% year-on-year (YoY) growth in Payment Services Revenue that rose to ₹1,110 crore in the quarter that ended on June 30, 2025. Net Payment Revenue stood at ₹529 crore, up 38% YoY, driven by higher payment processing margins and increased device additions.

The gross merchandise value of the company also rose 27% to ₹5.39 lakh crore, with payment processing margin above the guided 3 bps. Merchant subscriptions also grew 19% and stood at 1.30 crore as of June due to quality devices and service network. Lower device costs, increased refurbishment, and higher sales productivity led to lower capex despite device growth. Improved retention, market share, and larger loan distribution funnel, boosting merchant monetisation, the company stated.