Paytm swings to profit in Q3 FY26; net profit at ₹225 crore as revenue surges 20%
ADVERTISEMENT
Fintech major One97 Communications , the parent company of Paytm, reported a strong performance for the third quarter ended December 31, 2025, turning profitable on a year-on-year basis. The company posted a consolidated net profit of ₹225 crore for Q3 FY26, against the net loss of ₹208 crore reported in the same quarter of the previous fiscal year.
The company’s revenue from operations grew 20% year-on-year to ₹2,194 crore, compared to ₹1,828 crore in Q3 FY25. This growth was primarily driven by a increase in merchant subscription revenues, expansion in financial services distribution, and a rise in gross merchandise value (GMV).
Operational turnaround and EBITDA growth
Paytm’s operational metrics showed a sharp recovery during the quarter. The company reported an EBITDA of ₹156 crore, reflecting a 7% margin, in contrast to an EBITDA loss of ₹223 crore in the year-ago period.
UPI dominance and merchant expansion
Paytm reported that its consumer UPI GMV grew by 35% over the last nine months, outperforming the industry’s 16% growth. Its merchant base also saw robust expansion, with the number of subscription-led payment devices (Soundbox and POS machines) reaching 1.44 crore, an addition of 27 lakh devices over the past year.
January 2026
Netflix, which has been in India for a decade, has successfully struck a balance between high-class premium content and pricing that attracts a range of customers. Find out how the U.S. streaming giant evolved in India, plus an exclusive interview with CEO Ted Sarandos. Also read about the Best Investments for 2026, and how rising growth and easing inflation will come in handy for finance minister Nirmala Sitharaman as she prepares Budget 2026.
Leadership and restructuring
In a move to streamline operations, the board approved the transfer of the offline merchant payments business to its subsidiary, Paytm Payment Services Limited (PPSL). Concurrently, the Board announced the appointment of founder Vijay Shekhar Sharma as the Managing Director and CEO of PPSL for a five-year term, effective January 29, 2026.
The company also informed the exchanges that Pallavi Shardul Shroff will step down as an independent director on February 8, 2026, following the completion of her second term.
Strong liquidity position
Paytm ended the quarter with a robust cash balance of ₹12,882 crore. Management noted that the company has adopted a more conservative revenue recognition policy and increased provisions for doubtful debts to ensure long-term balance sheet resilience.
The shares of One97 Communications ended 0.44% lower at ₹1,171.80 apiece on the national stock exchange on Thursday. In the past one year, the stock has risen over 40% , outperforming the benchmark Nifty 50 index that has risen close to 10% during the same period.