Paytm Q3 PAT raises to ₹225 crore

Paytm (One 97 Communications Ltd.), for the third quarter ended December 2025, reported profit after tax (PAT) of ₹225 crore, as against a net loss of ₹208 crore in the year-ago period, an improvement of ₹433 crore year-on-year. 

Revenue from operations grew 20% to ₹2,194 crore during the quarter from ₹1,829 crore a year ago, led by higher payments GMV, an increase in merchant subscriptions and growth in distribution of financial services, the company said.

Paytm UPI continued to gain market share for the third consecutive quarter. Its consumer UPI GMV grew 35% in the last nine months versus industry GMV growth of 16%, the company said. 

Paytm said there was an ‘insignificant’ impact on revenue from industry stoppage of rent payments through credit card (PA PG guidelines, September 2025) and the Real Money Gaming (RMG) Act, August 2025, as the company had taken proactive compliance measures over the past few years.

Payments services revenue (including other operating revenue) grew 21% YoY to ₹1,284 crore. 

Net payment revenue increased by 25% YoY to ₹613 crore, due to improved payment processing margin and an increase in merchant subscriptions, which grew by 27 lakh YoY to reach 1.44 crore. Payments GMV grew 24% YoY to ₹6.2 lakh crore, the company said.

In Q3 FY 2026, distribution of financial services revenue grew 34% YoY to ₹672 crore, driven by continued growth in distribution of merchant loans and wealth products. 

This is despite lower volumes under the Default Loss Guarantee (DLG) program, which leads to lower revenue and lower other direct costs, the company said.  Cash balance stood at ₹12,882 crore as of the quarter ending December 2025.

During the quarter, the offline merchant business was transferred to Payments Services Limited, a wholly owned subsidiary of the company, in line with regulatory guidelines. 

Payments Services Ltd received final approval from the Reserve Bank of India (RBI) to operate as an Online Payment Aggregator. Further, the RBI authorised PPSL to operate as a Payment Aggregator for offline and cross-border payments, it said.