Profitability Achieved
One 97 Communications, the parent entity behind Paytm, announced a profit after tax (PAT) of Rs 211 crore for the September 2025 quarter, marking a second
consecutive quarter of profitability. The financial results displayed significant improvement compared to the previous quarter. The company demonstrated a clear pathway towards sustainable profitability. The growth was spearheaded by their payments and financial services divisions.
Revenue Growth Soars
Paytm's revenue experienced a substantial increase, rising 24% year-on-year to reach Rs 2,061 crore. This expansion was greatly supported by the strong performance of both the payments and financial services businesses. After considering a one-time impairment of Rs 190 crore tied to First Games Technology Pvt Ltd, PAT stood at Rs 21 crore. The report highlighted a substantial rise from the prior quarter, clearly signaling Paytm's movement towards consistent profitability.
EBITDA and Margins
EBITDA saw an uplift, reaching Rs 142 crore with a 7% margin, supported by revenue growth and operating leverage. Contribution profit grew by 35% year-on-year, totaling Rs 1,207 crore, while maintaining a healthy 59% margin, bolstered by enhanced net payment margins and an increasing contribution from financial services revenue. The rise in contribution profit highlighted the efficient management of operational costs and a focus on high-margin services. These factors played a key role in the company's financial success.
Payment Services Expansion
The revenue from payment services increased by 25% year-on-year to reach Rs 1,223 crore, while net payment revenue also rose by 28% to Rs 594 crore. Furthermore, the Gross Merchandise Value (GMV) climbed 27% to reach Rs 5.67 lakh crore, largely aided by stronger performance in credit cards on UPI and affordability products such as EMI. These figures reflect an expanding customer base and increased adoption of digital payment solutions, underscoring Paytm’s continuing influence in the payments sector.
Merchant Network Growth
Paytm’s merchant network continued to broaden, with device subscriptions hitting a record high of 1.37 crore, which is up by 25 lakh year-on-year. This growth indicates Paytm’s leading position in omni-channel merchant payments. This expansion also reflects the trust and utility merchants find in the platform's services. The focus on merchant acquisition and retention has significantly contributed to the positive results.
Financial Services Surge
Revenue derived from financial services distribution experienced a 63% year-on-year jump, reaching Rs 611 crore. This notable increase was fueled by robust merchant loan disbursements and enhanced collection performance from lending partners. During the quarter, over 6.5 lakh consumers utilized Paytm’s financial services, demonstrating growing acceptance across its ecosystem. This reflects increased demand for financial products within the Paytm platform, contributing significantly to revenue.
Cost Management Efforts
Indirect expenses saw an 18% year-on-year reduction and a 1% decrease sequentially to Rs 1,064 crore, showcasing effective cost management strategies. At the same time, marketing expenses for customer acquisition declined by 42%, mainly due to greater customer retention and enhanced monetization strategies. The company has stated it would continue to invest strategically to grow its market share while maintaining financial discipline, setting the stage for sustainable growth in the future.
