Paytm Q3 FY 2026 marked another milestone for One 97 Communications Limited as the company reported its third straight profitable quarter, supported by strong monetisation across payments and financial services, higher payments GMV, growing merchant subscriptions, and expanding financial services distribution.
For the quarter ended December 2025, Paytm recorded a profit after tax (PAT) of ₹225 crore, reflecting a year-on-year improvement of ₹433 crore.
EBITDA improved to ₹156 crore, translating into an EBITDA margin of 7%, an increase of ₹379 crore YoY, driven by revenue growth and sustained operating leverage.
Contribution profit stood at ₹1,249 crore, up 30% YoY, with contribution margin improving to 57%, an expansion of 5 percentage points year-on-year.
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Paytm Q3 FY 2026: Strong Growth in UPI and Payments Monetisation
During Paytm Q3 FY 2026, the company continued to strengthen its position in consumer UPI, gaining market share for the third consecutive quarter.
Paytm’s consumer UPI GMV grew 35% over the last nine months, significantly outperforming the industry growth rate of 16% during the same period.
Operating revenue for the quarter grew 20% YoY to ₹2,194 crore, led by higher payments GMV, an increase in merchant subscriptions, and growth in financial services distribution.
On a like-for-like basis, revenue growth was approximately 25%.
The company stated that the impact of the industry-wide stoppage of rent payments through credit cards under PA PG guidelines (September 2025) and the Real Money Gaming (RMG) Act (August 2025) was insignificant due to proactive compliance measures taken over recent years.
Payments services revenue, including other operating revenue, grew 21% YoY to ₹1,284 crore.
Net payment revenue rose 25% YoY to ₹613 crore, supported by improved payment processing margins and an increase in merchant subscriptions, which expanded by 27 lakh year-on-year to 1.44 crore merchants. Payments GMV increased 24% YoY to ₹6.2 lakh crore during the quarter.
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Paytm Q3 FY 2026: Financial Services and Cost Optimisation Drive Profitability
In Paytm Q3 FY 2026, revenue from the distribution of financial services grew 34% YoY to ₹672 crore, driven by continued growth in merchant loan distribution and wealth products.
This growth was achieved despite lower volumes under the Default Loss Guarantee (DLG) programme, which resulted in lower associated revenue and direct costs.
Indirect expenses declined 8% YoY to ₹1,092 crore, primarily due to reduced employee-related costs, including ESOP expenses, and lower provisions for doubtful debt.
As of December 2025, Paytm’s cash balance stood at ₹12,882 crore, providing significant financial flexibility for business expansion.
During the quarter, Paytm transferred its offline merchant business to Payments Services Limited (PSL), a wholly owned subsidiary, in line with regulatory requirements.
Payments Services Limited received final approval from the Reserve Bank of India (RBI) to operate as an Online Payment Aggregator and was also authorised to provide offline and cross-border payment aggregation services.
