910
2 months ago
Paytm Q3: Profit At INR 225 Cr, Revenue Jumps 20% YoY
Summary
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Get featured, partner or work with India's #1 startup media & intelligence platform and explore what else Inc42 has to offer.
D2CX by Inc42 is a 12-week hands-on program to help you level up your D2C game. Learn from India's top 1% D2C founders and experts through actionable insights, proven strategies and tactics on how to 10X your D2C brand.
ManagementX by Inc42 – India’s first Startup Management Program is a 6-month hands-on program that will take you on an intense journey that shatters the outdated “employee mindset” and equips you with the “leader mindset”.
D2CX Foundations by Inc42 is a 6 week hands-on program to help you launch your D2C brand successfully and profitably. Learn from India’s top 1% of D2C founders & experts through actionable insights, proven strategies and tactics on how to launch a successful D2C Brand in 6 weeks.
Paytm reported yet another profitable quarter in Q3 FY26, posting a consolidated net profit of INR 225 Cr as against a loss of INR 208 Cr in the year-ago quarter. On a QoQ basis, profit surged over 10X from INR 21 Cr
Revenue from operations jumped 20% to INR 2,194 Cr in Q3 FY26 from INR 1,828 Cr in the same period last year. Sequentially it increased 6.5% from INR 2,061 Cr
Including other income of INR 212 Cr, total income stood at INR 2,406 Cr during the period under review
Fintech major Paytm reported yet another profitable quarter in Q3 FY26, posting a consolidated net profit of INR 225 Cr as against a loss of INR 208 Cr in the year-ago quarter. On a QoQ basis, profit surged over 10X from INR 21 Cr.
Important to highlight that the company incurred an exceptional loss of INR 190 Cr in the previous quarter, barring which it would have reported a profit before tax of INR 211 Cr in Q2.
Meanwhile, operating revenue increased 20% YoY and 7% QoQ to INR 2,194 Cr in the quarter under review. Including other income of INR 212 Cr, total income stood at INR 2,406 Cr during the period under review.
Meanwhile, total expenses declined 2% to INR 2,175 Cr from INR 2,220 Cr in the previous year’s quarter.
During the quarter under review, Paytm also incurred an additional expense of INR 12 Cr pertaining to the recently implemented labour codes.
Meanwhile, Paytm reported an EBITDA of INR 156 Cr and a margin of 7%, against an EBITDA loss of INR 223 Cr in the year-ago period.
The company’s average monthly transacting users (MTUs) for the period increased 60 Lakhs YoY to INR 7.6 Cr.
Besides the company’s financial performance, Paytm board also approved the transfer of its offline merchant business to its wholly owned subsidiary Paytm Payment Services Ltd (PPSL). In order to ensure that our leadership in merchant payments is reinforced, the company’s board also approved founder and CEO Vijay Shekhar Sharma appointment as PPSL’s MD and CEO for five years.
Meanwhile, the company’s cash balance declined slightly to INR 12,882 Cr from INR 13,068 Cr at the end of the previous quarter. The company said that the movements in its cash balance during Q3 were driven by higher working capital requirements following the festive season, regulatory-led pre-funding of escrow accounts and growth in its margin trading facility (MTF) book.
To meet peak merchant settlement needs, it pre-funded INR 700 Cr into an escrow account after transferring its offline merchant business to PPSL, a balance that was negligible earlier but is now being maintained on an ongoing basis.
During the quarter under review, Paytm reported steady business momentum across both its consumer and merchant segments, driven by higher payments activity, deeper merchant penetration and growing traction in financial services.
On the consumer side, Paytm claimed to have seen growth in its UPI market share for the three consecutive quarters in FY26. This growth led to a 35% uptick in consumer UPI GMV over the last nine months, outpacing the industry’s 16% growth.
The company said this was aided by its AI-first, product-led approach and calibrated promotional spending focused on retention rather than short-term acquisition.
In the merchant segment, Paytm’s merchant device subscriptions reached 1.44 Cr, adding 27 Lakh devices YoY and expanding its base of recurring revenues.
The company also scaled its distribution of financial services, with the number of customers availing loans, wealth and allied products increasing to 7.1 Lakh from 5.9 Lakh a year ago. The company said this growth was despite lower volumes under DLG, which leads to lower revenue and lower ‘other direct costs’. The total customers availing financial services via Paytm increased to 7.1 lakh in the quarter, led by growth in merchant loans and equity broking users.
Additionally, it must be highlighted that Paytm received all three key RBI payment licences under Paytm Payment Services Limited, enabling it to resume online merchant onboarding and further deepen its full-stack omni-channel payments offering during the quarter.
Meanwhile, its marketing services revenue for Q3 declined 11% to INR 238 Cr from INR 267 Cr in the same period last year. Paytm’s GMV for ticketing, deals and gift vouchers was around INR 2,232 Cr in the quarter under review.
Paytm’s shares ended today trading session 0.73% lower at INR 1,168.7 on the BSE.
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ManagementX by Inc42 – India’s first Startup Management Program is a 6-month hands-on program that will take you on an intense journey that shatters the outdated “employee mindset” and equips you with the “leader mindset”.
D2CX Foundations by Inc42 is a 6 week hands-on program to help you launch your D2C brand successfully and profitably. Learn from India’s top 1% of D2C founders & experts through actionable insights, proven strategies and tactics on how to launch a successful D2C Brand in 6 weeks.
Stay ahead with the latest news, funding, startup financials, & governments policies on the hottest tech industries in the Indian startup ecosystem.
Get featured, partner or work with India's #1 startup media & intelligence platform and explore what else Inc42 has to offer.
Stay ahead with the latest news, funding, startup financials, & governments policies on the hottest tech industries in the Indian startup ecosystem.
Get featured, partner or work with India's #1 startup media & intelligence platform and explore what else Inc42 has to offer.
D2CX by Inc42 is a 12-week hands-on program to help you level up your D2C game. Learn from India's top 1% D2C founders and experts through actionable insights, proven strategies and tactics on how to 10X your D2C brand.
ManagementX by Inc42 – India’s first Startup Management Program is a 6-month hands-on program that will take you on an intense journey that shatters the outdated “employee mindset” and equips you with the “leader mindset”.
D2CX Foundations by Inc42 is a 6 week hands-on program to help you launch your D2C brand successfully and profitably. Learn from India’s top 1% of D2C founders & experts through actionable insights, proven strategies and tactics on how to launch a successful D2C Brand in 6 weeks.
Paytm reported yet another profitable quarter in Q3 FY26, posting a consolidated net profit of INR 225 Cr as against a loss of INR 208 Cr in the year-ago quarter. On a QoQ basis, profit surged over 10X from INR 21 Cr
Revenue from operations jumped 20% to INR 2,194 Cr in Q3 FY26 from INR 1,828 Cr in the same period last year. Sequentially it increased 6.5% from INR 2,061 Cr
Including other income of INR 212 Cr, total income stood at INR 2,406 Cr during the period under review
Fintech major Paytm reported yet another profitable quarter in Q3 FY26, posting a consolidated net profit of INR 225 Cr as against a loss of INR 208 Cr in the year-ago quarter. On a QoQ basis, profit surged over 10X from INR 21 Cr.
Important to highlight that the company incurred an exceptional loss of INR 190 Cr in the previous quarter, barring which it would have reported a profit before tax of INR 211 Cr in Q2.
Meanwhile, operating revenue increased 20% YoY and 7% QoQ to INR 2,194 Cr in the quarter under review. Including other income of INR 212 Cr, total income stood at INR 2,406 Cr during the period under review.
Meanwhile, total expenses declined 2% to INR 2,175 Cr from INR 2,220 Cr in the previous year’s quarter.
During the quarter under review, Paytm also incurred an additional expense of INR 12 Cr pertaining to the recently implemented labour codes.
Meanwhile, Paytm reported an EBITDA of INR 156 Cr and a margin of 7%, against an EBITDA loss of INR 223 Cr in the year-ago period.
The company’s average monthly transacting users (MTUs) for the period increased 60 Lakhs YoY to INR 7.6 Cr.
Besides the company’s financial performance, Paytm board also approved the transfer of its offline merchant business to its wholly owned subsidiary Paytm Payment Services Ltd (PPSL). In order to ensure that our leadership in merchant payments is reinforced, the company’s board also approved founder and CEO Vijay Shekhar Sharma appointment as PPSL’s MD and CEO for five years.
Meanwhile, the company’s cash balance declined slightly to INR 12,882 Cr from INR 13,068 Cr at the end of the previous quarter. The company said that the movements in its cash balance during Q3 were driven by higher working capital requirements following the festive season, regulatory-led pre-funding of escrow accounts and growth in its margin trading facility (MTF) book.
To meet peak merchant settlement needs, it pre-funded INR 700 Cr into an escrow account after transferring its offline merchant business to PPSL, a balance that was negligible earlier but is now being maintained on an ongoing basis.
During the quarter under review, Paytm reported steady business momentum across both its consumer and merchant segments, driven by higher payments activity, deeper merchant penetration and growing traction in financial services.
On the consumer side, Paytm claimed to have seen growth in its UPI market share for the three consecutive quarters in FY26. This growth led to a 35% uptick in consumer UPI GMV over the last nine months, outpacing the industry’s 16% growth.
The company said this was aided by its AI-first, product-led approach and calibrated promotional spending focused on retention rather than short-term acquisition.
In the merchant segment, Paytm’s merchant device subscriptions reached 1.44 Cr, adding 27 Lakh devices YoY and expanding its base of recurring revenues.
The company also scaled its distribution of financial services, with the number of customers availing loans, wealth and allied products increasing to 7.1 Lakh from 5.9 Lakh a year ago. The company said this growth was despite lower volumes under DLG, which leads to lower revenue and lower ‘other direct costs’. The total customers availing financial services via Paytm increased to 7.1 lakh in the quarter, led by growth in merchant loans and equity broking users.
Additionally, it must be highlighted that Paytm received all three key RBI payment licences under Paytm Payment Services Limited, enabling it to resume online merchant onboarding and further deepen its full-stack omni-channel payments offering during the quarter.
Meanwhile, its marketing services revenue for Q3 declined 11% to INR 238 Cr from INR 267 Cr in the same period last year. Paytm’s GMV for ticketing, deals and gift vouchers was around INR 2,232 Cr in the quarter under review.
Paytm’s shares ended today trading session 0.73% lower at INR 1,168.7 on the BSE.
Unlock special offers and join 10,000+ founders, investors & operators staying ahead in India’s startup economy.
Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the
hottest startup deals, supercharge your innovation projects, and stay updated with expert
curation.
Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn
to validate ideas, acquire customers, secure funding, and navigate the journey to startup
success.
Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence,
understand market landscapes, and decode emerging trends to make informed decisions.
Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful
investors, and keep track of upcoming funds, accelerators, and more.
Join a community of 10,000+ leaders & operators – unlock unlimited access to Inc42 stories,
videos, deals, member-only perks, and more.
Unlock unlimited access to 500+ monthly new stories and Inc42’s complete archive of
40,000+ stories.
Unlock unlimited access to 500+ monthly new stories and Inc42’s complete archive of
40,000+ stories.
Over $250,000 worth deals on software & tools to help your business scale up.
Network with industry leaders & operators with exclusive invites to Inc42’s
member-only virtual events
Enjoy an ad-free and clutter-free
experience as a member, focus on
what really matters to you
Your contribution will go on to
support and empower our unbiased
& data-driven journalism
Join 1000's of entrepreneurs, business leaders & makers and stay ahead with our sharp,
incisive & data-driven analysis on India’s tech and startup economy!
Unlock personalised stories, ad-lite reading, and exclusive newsletters on Inc42.
Tired Of Playing Catchup On Indian Tech?
Stay Ahead. Every Morning at 8
Get The Week’s Most Consequential Developments.
Inc42 In-Depth is your daily 9 PM newsletter with sharp insights from India’s startup economy.
Inc42 Moneyball is your Thursday newsletter on India’s venture capital trends. 4 PM sharp.
Inc42 Markets is your weekly newsletter on tech IPOs & startup stocks. Every Sunday
get access to a list of 200+ family offices betting big on startups
Get access to a list of Alma Mater Of India's Unicorn & Soonicorn Founders
Login or create a free account to continue reading in private mode.
AI Description
This article discusses Paytm's financial performance in Q3 FY26, highlighting a significant profit increase. The report emphasizes the company's strategic growth and financial health.