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One97 Communications Ltd, parent of Paytm, reported a net profit of Rs 123 crore for Q1 FY 2025-26, reversing a Rs 840 crore loss from a year ago.
Paytm Shares Price:
Paytm Q1FY26 Results: In a remarkable turnaround, One97 Communications Ltd, the parent of fintech Paytm, on Tuesday reported a net profit of Rs 123 crore for the first quarter of the financial year 2025-26, compared to a loss of Rs 840 crore a year ago. It is driven by AI-led operating leverage, disciplined cost structure and higher other
income, said the company.
The fintech major’s operating revenue rose 28% year-on-year to Rs 1,918 crore during the quarter ended June 30, 2025.
The company’s contribution profit stood at Rs 1,151 crore, up 52% YoY, with a contribution margin of 60%. This growth was led by improved net payment revenues, a stronger financial services portfolio, and reduced direct expenses. Paytm also reported a positive EBITDA of Rs 72 crore — a margin of 4% — indicating early signs of sustainable profitability.
growth in merchant loans, trail revenue from DLG portfolio, and improved collection performance.
As of June 2025, Paytm had 1.30 crore subscription-based merchants. The company sees a long-term potential of catering to 10 crore merchants, out of which 40–50% are expected to subscribe to its services.
Its total gross merchandise value (GMV) grew 27% YoY to Rs 5.4 lakh crore. Paytm’s cash balance rose to Rs 12,872 crore, up by Rs 4,764 crore in a year, providing strong capital flexibility for future growth.
As of June 2025, Paytm had 1.30 crore subscription-based merchants. The company sees a long-term potential of catering to 10 crore merchants, out of which 40–50% are expected to subscribe to its services.
Going forward, we expect a higher share of non-DLG disbursements, which reduces upfront DLG costs and also lifetime revenue by corresponding amount. Hence, distribution of financial services revenue growth will be slower sequentially as compared to the disbursements growth (we saw revenue growth
higher than disbursement growth since start of DLG model in Q2 FY 2025), the management said in Q1FY26.
Paytm shares climbed 3.48 per cent on Tuesday to end at Rs 1053 apiece. Shares are up 19 per cent in the past one month.
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More
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