Mumbai, 23 July 2025: Paytm (One 97 Communications Limited), India’s full stack merchant payments leader serving MSMEs and enterprises, has announced its financial results for Q1 FY26, and turned profitable across all key financial metrics including EBITDA and Profit After Tax (PAT). The company expects continued improvement across all key profit metrics in the coming quarters.
In the June-ending quarter, Paytm reported a PAT of ₹123 Cr and EBITDA of ₹72 Cr respectively. The company’s operating revenue rose 28% YoY to ₹1,918 Cr. Contribution profit increased 52% YoY to ₹1,151 Cr with the contribution margin improving to 60%, on account of higher share of distribution of financial services revenue, increase in net payment revenue and lower other direct expenses.
The net payment revenue rose 38% YoY to ₹529 Cr, led by growth in high quality subscription merchants and increase in payment processing margins, as the company consolidated its leadership in merchant payments. Financial Services revenue grew 100% YoY to ₹561 Cr, driven by continued expansion in merchant loans, trail revenue from Default Loss Guarantee (DLG) portfolio, and improved collection performance.
As of June 2025, merchant subscriptions were at an all time high of 1.30 Cr. With growth in device merchants, the company has continued to enhance operational efficiencies and reduced its capital expenditure (CAPEX) by lowering device costs, ramping up and increasing sales team productivity.
India’s Full Stack Merchants Payments Leader
Paytm remains India’s first and only AI-powered omni-channel payments platform, providing an end-to-end seamless payments tech stack including hardware, software and services. On the back of this, the company estimates that over 10 Cr merchants will accept digital payments, and anticipates that 40-50% of them will require subscription-based services for managing their business operations.
As one of the earliest and most aggressive adopters of AI in India’s fintech space, Paytm has embedded AI into each product and service journey, including merchant onboarding, transaction monitoring while ensuring customer delight.