Paytm Q1 FY26: Profit at Rs 122.5 crore, strong turnaround from previous losses- 5 key highlights

Paytm, owned by One 97 Communications, has reported a consolidated net profit of Rs 122.5 crore for the first quarter of FY26 (April–June 2025). This marks a sharp turnaround from a loss of Rs 840.1 crore in the same period last year.

The company posted a revenue of Rs 1917.5 crore, up 27.7 per cent from the same quarter previous year at Rs 1501.6 crore.

Key highlights from the Q1FY26 results

one-time gain from ticketing business sale

Indian fintech company, Paytm which had faced a significant loss of Rs 840.1 crore Q1FY25 and Rs 544.6 crore in Q4FY25 has seen a strong turnaround. However, its first quarterly profit since the September 2024 quarter was driven by a one-time gain from the sale of its ticketing business.

Its total consolidated income rose to Rs 2158.9 crore, compared to Rs 1639.1 crore in Q1 FY25. EBITDA also turned profitable at Rs 72 Cr (margin of 4 per cent).

Company shifts focus to core operations

The firm had earlier posted losses due to weakness in its payments business after the RBI directed it to shut down its banking unit in January 2024. The company has now increased its focus on core businesses and cut expenses to move towards profitability.

Expenses fell 19 per cent year-on-year to Rs 2,016 crore.The company’s EBITDA before ESOP (employee stock ownership plan) cost — a key profitability metric — stood at Rs 102 crores in the June quarter. This reflects a major shift in the company’s financials after several quarters of losses.

Merchant subscriptions at an all-time high

Paytm’s Gross Merchandise Value (GMV) increased 27 per cent year-on-year to Rs 5.4 lakh crore. Subscription-based merchant devices hit a record 1.30 crore as of June 2025, an increase of 21 lakh from the previous year. Monthly Transacting Users (MTU) reached 7.4 crore.

Financial services revenue grew 100% YoY

Revenue from the distribution of financial services doubled to Rs 561 crore, backed by an increase in merchant loans and improved collection performance. Paytm said its largest lending partner shifted from the Default Loss Guarantee (DLG model) to a non-DLG model this quarter. This change is expected to reduce upfront costs but may also slow revenue growth sequentially.

Lending business sees strong momentum

The company disbursed loans to 5.6 lakh financial services customers in the quarter and expects continued growth in lending, mutual funds, and broking in the months ahead.