Paytm Q1 FY26: net profit at Rs 122.5 Cr, revenue rises, costs fall

Fintech firm Paytm posted a net profit of Rs 122.5 crore in Q1 FY26, a strong turnaround from a Rs 839 crore loss in Q1 FY25. 

The company also reported solid growth across major business areas which reflecting improved financial and operational performance.

Paytm Revenue and Profitability

Paytm’s Q1 FY26 revenue grew 28% YoY to ₹1,917 crore. Strong operations and a one-time tax refund pushed PAT to ₹123 crore. EBITDA turned positive at ₹72 crore, with a 4% margin, showing improved cost control and profitability.

Growth in Payments and Financial Services

Paytm’s GMV rose 27% YoY to ₹5.39 lakh crore in Q1 FY26. Net payment revenue grew 38% to ₹529 crore, aided by better margins and more high-quality merchants. Financial services revenue doubled to ₹561 crore, driven by merchant loan growth and stronger collections.

In Q1 FY26, Paytm saw strong momentum in its merchant subscription business, reaching 1.3 crore device subscriptions as of June 2025—an increase of 21 lakh year-on-year. This growth was supported by the company’s focus on high quality devices and a robust service network. 

To drive deeper market penetration, especially in tier-2 and tier-3 cities, Paytm continued investing in its sales infrastructure, resulting in a 19% YoY increase in sales-related expenses. However, overall capital expenditure remained under control, aided by efforts to refurbish older devices and reduce the cost of new ones.

Depreciation and amortisation expenses stood at ₹166 crore for Q1 FY26, 7% lower than the same period last year but 11% higher quarter-on-quarter. For FY26, the company expects D&A to be in the range of ₹500–₹600 crore, a decline from FY25 levels, owing to reduced device costs and increased refurbishment.

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Other income rose to ₹241 crore in Q1, up from ₹138 crore a year earlier, largely driven by interest income. However, it anticipates a gradual decline in other income due to lower reinvestment yields following a 100 basis point repo rate cut earlier in the year.

As of June 2025, Paytm cash balance stood at Rs 12,872 crore, a significant increase from Rs 8,108 crore in June 2024. The Rs 4,764 crore rise in cash was primarily attributed to the monetisation of two non-core assets—its entertainment ticketing business and stock rights in PayPay—which together contributed ₹4,386 crore.