New Delhi [India], January 29 : One 97 Communications Ltd (Paytm) on Thursday reported a profit after tax (PAT) of Rs 225 crore for the December quarter (Q3 FY26), marking its third consecutive profitable quarter, as industry-leading customer monetisation and sustained UPI market share gains helped drive growth across its core payments and financial services businesses.
The company continued to outperform the broader UPI ecosystem, with consumer transaction growth (35%) significantly ahead of industry levels (16%) during the quarter.
During the quarter, Paytm's operating revenue climbed 20% year-on-year to Rs 2,194 crore, driven by higher payments volumes, an expanding merchant base and higher contribution from financial services distribution. Earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter stood at Rs 156 crore, translating into a 7% margin, reflecting a sharp year-on-year improvement of Rs 433 crore. The company said indirect expenses fell 8% YoY, supported by lower employee stock option costs and reduced provisions for doubtful debt.
Payments continued to be a key growth driver, with payments services revenue rising 21% YoY to Rs 1,284 crore, while net payment revenue grew 25% YoY to Rs 613 crore. Payments GMV increased 24% YoY to Rs 6.2 lakh crore, indicating sustained momentum across merchant and consumer transactions.
Paytm's merchant ecosystem also expanded during the quarter, with merchant subscriptions reaching 1.44 crore, following the addition of 27 lakh devices year-on-year, further expanding its recurring revenue base. On the consumer side, the company recorded market share gains in UPI transactions for the third straight quarter, with Paytm's UPI GMV growing 35%, well ahead of the industry growth of 16%.
Revenue from the distribution of financial services segment rose 34% YoY to Rs 672 crore, driven by growth in distribution of merchant loans and wealth products. Contribution profit increased 30% YoY to Rs 1,249 crore, with contribution margin improving to 57%, supported by a favourable revenue mix and lower direct costs.
As of the end of the quarter, Paytm reported a cash balance of Rs 12,882 crore, which it said provides ample headroom to fund growth initiatives. The company said it is reinforcing its leadership across small and large merchants, online and offline, through deeper adoption of its full-stack payment solutions, with product innovation and AI-led merchant acquisition improving unit economics and driving sustained profitability.