Paytm turns profitable, reinforces its position as India’s full-stack merchant payments leader

MUMBAI —  Paytm (One 97 Communications Limited), India’s full stack merchant payments leader serving MSMEs and enterprises, on Tuesday reported a profit after tax (PAT) of INR 123 crore in Q1 FY26, while the company’s operating revenue grew 28 per cent year-on-year (YoY) to INR 1,918 crore.

For the June-ending quarter, EBITDA stood at INR 72 crore, underscoring Paytm’s disciplined approach towards cost structure and driving growth and efficiency through embedded AI capabilities, according to its stock exchange filing.

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Contribution profit for the quarter increased 52 per cent YoY to INR 1,151 crore, driven through improved net revenue, increased share of distribution of financial services revenue, and reduced direct expenses.

Revenue from distribution of financial services also doubled to INR 561 crore YoY -- representing growth for the payments major.

Paytm has extended its leadership in India’s merchant payments landscape, as it continues to add new device subscriptions across MSMEs and enterprises.

As of June 2025, total device subscriptions merchants reached an all time high of 1.30 crore, the company said in its regulatory filing.

This growth reflects continued demand for Paytm’s Soundbox, All-in-One POS, and card-enabled payment devices, powered by high-quality service and a strong retention-led distribution network.

Paytm remains India’s first and only AI-powered omni-channel payments platform, providing an end-to-end seamless payments tech stack including hardware, software and services.

As part of its earnings, the company also claimed that it has outperformed traditional capex-led POS provider model and has become a major player in offline enterprise payments within 6 years of starting.