Merchant subscriptions hit 1.3 Cr; financial services revenue doubles; EBITDA at ₹72 Cr
Paytm (One 97 Communications Limited) has reported a consolidated profit after tax (PAT) of ₹123 crore for the first quarter of FY26, marking a profitable quarter across all key financial metrics. Operating revenue surged 28% year-on-year to ₹1,918 crore, driven by growth in merchant subscriptions and distribution of financial services. The company posted an EBITDA of ₹72 crore and a contribution margin of 60%, underscoring the strength of its AI-led cost discipline and monetization strategy.
Net payment revenue rose 38% YoY to ₹529 crore, bolstered by an increase in high-quality subscription merchants and better payment processing margins. Financial services revenue doubled to ₹561 crore, attributed to strong momentum in merchant loans, trail revenue from the Default Loss Guarantee (DLG) portfolio, and improved loan recovery performance.
Merchant subscriptions reached an all-time high of 1.30 crore as of June 2025. Paytm continues to enhance operating efficiency through reduced capital expenditure on devices and improved sales team productivity. With AI embedded across its operations, the company has successfully optimized its technology stack to serve MSMEs and large enterprises alike.
With a cash balance of ₹12,872 crore as of June 30, Paytm maintains capital flexibility to accelerate innovation in AI-first infrastructure, merchant services, and financial product expansion. The platform is India’s only full-stack, AI-powered omni-channel payments ecosystem, offering integrated hardware, software, and services.
Paytm anticipates that more than 10 crore merchants will adopt digital payments in the near term, with 40-50% likely to require subscription-based business services—a segment where Paytm holds market leadership.
As one of India’s earliest AI adopters in fintech, the company has integrated AI into merchant onboarding, transaction analytics, risk scoring, and customer support. This has helped unlock operating leverage, control direct expenses, and scale without proportionate cost increase.
About Paytm
Paytm is India’s leading mobile payments and financial services distribution company. As a pioneer of mobile QR payments in India, the company builds technologies that empower small businesses with seamless payments and commerce. Its mission is to serve half a billion Indians and integrate them into the mainstream economy through digital innovation.
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