Paytm Posts ₹122.5 Cr Profit in Q1 FY26—Its First-Ever from Core Operations
In a major milestone for the Indian fintech giant, Paytm (One97 Communications Ltd) has announced its first core operational profit for the quarter ending June 2025 (Q1 FY26). The company reported a consolidated net profit of ₹122.5 crore, a dramatic turnaround from a loss of ₹839 crore in Q1 FY25 and ₹540 crore in the previous quarter (Q4 FY25).
This isn’t just another balance sheet victory—this is the company’s first-ever profit driven by actual business operations, not one-time gains.
Breaking Down Paytm Q1 FY26 Profit: Key Highlights
- Net Profit: ₹122.5 crore vs. ₹839 crore loss in Q1 FY25
- Revenue from Operations: ₹1,917 crore (up 28% YoY)
- Contribution Profit: ₹1,151 crore (52% YoY growth), with a 60% contribution margin
- EBITDA: ₹72 crore profit with a 4% EBITDA margin
- Financial Services Revenue: ₹561 crore (2x YoY), led by merchant lending and DLG trail revenue
- Merchant Subscriptions: Hit a record high of 1.3 crore active merchants
From Losses to Profits: What Changed for Paytm?
While Paytm had technically reported a profit in Q2 FY25 (Sept 2024), it was largely due to a one-off gain from the sale of its movie ticketing business. This time, it’s the real deal.
The turnaround is largely attributed to:
- Cost Optimizations: Significant cuts in marketing, promotions, and employee benefits
- Lending Focus: Strong momentum in merchant loans and subscription revenue
- Strategic Pivot: After regulatory hurdles in early 2024, Paytm shifted parts of its payments business to third-party banks and doubled down on financial services and subscription devices
Subscription Surge and GMV Growth
With 1.3 crore merchant subscriptions, Paytm has hit an all-time high, indicating strong adoption of its soundbox and QR device ecosystem. This surge contributed to higher GMV (Gross Merchandise Value) and better sales productivity.
A New Chapter for Indian Fintech?
Paytm’s Q1 FY26 results mark a turning point not just for the company, but for the Indian fintech space at large. With regulatory challenges still fresh in memory and investor confidence shaken earlier this year, this profit from core operations signals a successful reset.
Whether this trend sustains remains to be seen—but for now, Paytm has finally flipped the script.