Fintech major Paytm (One 97 Communications Ltd.) has reported a significant turnaround in its financial performance, clocking a profit after tax (PAT) of ₹123 crore in Q1 FY26, as per the company’s latest regulatory filing. This marks a strong start to the fiscal year for India’s first and only AI-powered omni-channel payments platform.
Strong Revenue Growth and AI-Driven Efficiency
For the quarter ending June 2025, Paytm’s operating revenue grew 28% year-on-year (YoY) to ₹1,918 crore. The company also reported an EBITDA of ₹72 crore, highlighting its disciplined approach to cost management and ongoing focus on operational efficiency, aided by its embedded AI capabilities.
Contribution Profit Soars, Financial Services Revenue Doubles
Paytm’s contribution profit surged 52% YoY to ₹1,151 crore, driven by:
-
Higher net revenue
-
A greater share of financial services distribution
-
Lower direct operating expenses
Revenue from the distribution of financial services doubled to ₹561 crore, reinforcing Paytm’s growing dominance in the digital financial ecosystem.
Record Device Subscriptions Among MSMEs and Enterprises
The fintech leader continues to expand its reach among MSMEs and large enterprises, with merchant device subscriptions reaching an all-time high of 1.30 crore as of June 2025. Devices such as Paytm Soundbox, All-in-One POS, and card-enabled payment terminals continue to see strong adoption, supported by the company’s high-quality service network and robust merchant retention strategy.
Dominance in Offline Payments and Omnichannel Infrastructure
Paytm reiterated its position as India’s full-stack merchant payments leader, offering a seamless tech stack encompassing software, hardware, and AI-driven services. Within just six years of launching its offline payments offering, Paytm has emerged as a serious contender to traditional POS players, outperforming capex-heavy models in both scale and service.
Strong Cash Reserves Fuel Future Growth
With a healthy cash balance of ₹12,872 crore, the company is well-capitalized to drive further growth across its core segments—merchant payments, financial services distribution, and AI-led innovations.
“As the company continues to strengthen its full-stack offerings, it remains committed to empowering merchants with scalable, secure, and inclusive digital tools for long-term growth,” Paytm said in its statement.
Key Highlights:
-
PAT: ₹123 crore in Q1 FY26
-
Revenue: ₹1,918 crore (28% YoY growth)
-
EBITDA: ₹72 crore
-
Contribution Profit: ₹1,151 crore (52% YoY growth)
-
Financial Services Distribution Revenue: ₹561 crore (2X YoY)
-
Device Subscriptions: 1.30 crore
-
Cash Reserves: ₹12,872 crore
Paytm’s performance in Q1 FY26 signals a strong foundation for sustainable profitability and innovation-led expansion in the evolving digital payments landscape of India.
