Results · Financial Services

Paytm reports first quarterly profit after years of losses

By Startup Enthusiast · 29 January 2026

What they do

Paytm is a digital payments and financial services platform in India

The company posted a net profit of ₹225 Cr in Q3 FY26, reversing a loss from the previous year

Operating revenue grew 20% while total expenses fell slightly, signaling improved operational efficiency

Paytm reported a net profit of ₹225 Cr for Q3 FY26 compared to a loss in the prior year.
This marks a significant turnaround as the company achieved profitability after several quarters of losses.
Operating revenue increased by 20% year-on-year to reach ₹2,194 Cr during the quarter.
Total expenses decreased by 2% year-on-year, contributing to the improved bottom line.
EBITDA turned positive at ₹156 Cr with a margin of 7%, contrasting with an EBITDA loss previously.
Profit jumped more than 10 times sequentially from ₹21 Cr in the previous quarter.
The board approved transferring the offline merchant business to Paytm Payment Services Ltd (PPSL).
Vijay Shekhar Sharma was appointed as the MD & CEO of PPSL for five years.

Paytm has struggled with profitability due to regulatory challenges and intense competition in payments.
The company recently secured all three key RBI payment licenses via its subsidiary PPSL.
Shares had plunged earlier due to uncertainty regarding the discontinuation of PIDF incentives.
Investors are watching closely to see if this profitability trend can be sustained long-term.

Paytm offers UPI payments, mobile recharges, and bill payments for utilities and DTH services.
The platform facilitates flight bookings, credit card applications, and insurance products for users.
It provides margin trading facilities through its subsidiary Paytm Money for investment services.
Merchants use Paytm QR codes, Soundboxes, and card machines for accepting digital payments.
Payments services revenue grew 21% year-on-year to ₹1,284 Cr in the quarter.
Financial services distribution revenue rose 34% year-on-year to ₹672 Cr.
Average monthly transacting users reached 7.6 crore, showing strong user engagement.
Merchant device subscriptions grew to 1.44 crore as of December 2025.
Consumer UPI GMV growth outpaced the industry average over the last nine months.

Paytm expects indirect costs to grow slower than revenue in the medium term.
Depreciation and amortisation are expected to be between ₹500-600 Cr for FY26.
The company discontinued adjusted metrics to report using standard GAAP definitions.

Elevation Capital (seller) — Venture capital firm that sold a 1.86% stake via bulk deal worth ₹1,556 Cr.
BNP Paribas (seller) — Bank that sold approximately 1.05 crore shares worth around ₹1,331 Cr.
Integrated Core Strategies (seller) — Fund that sold 32.55 lakh shares worth approximately ₹410 Cr.