Paytm Parent One 97 Communications Q3 Revenue Rises 20% to ₹2,194 Crore

30 Jan 2026 , 11:57 AM

One 97 Communications Ltd, which operates the Paytm platform, reported a sharp operational turnaround in the December quarter, supported by strong growth in payments and financial services, margin expansion, and positive EBITDA. Revenue for Q3 FY26 rose 20% year on year to ₹2,194 crore, compared with ₹1,828 crore in the same quarter last year. The company said like for like revenue growth was around 25%, while reported growth was impacted by the timing of the festive season, lower loan disbursements under default loss guarantee arrangements, and a more conservative revenue recognition policy.

Payments services revenue increased 21% year on year to ₹1,284 crore during the quarter, while net payment revenue grew 25% to ₹613 crore. Revenue from the distribution of financial services climbed 34% year on year to ₹672 crore. Contribution profit rose 30% year on year to ₹1,249 crore, with contribution margin improving to 57%, aided by higher payment processing margins and a rising share of financial services distribution revenue.

EBITDA turned positive at ₹156 crore during the quarter, translating into an EBITDA margin of 7% and marking a year on year improvement of ₹379 crore, despite higher promotional expenses and the full impact of the new labour code. The company reported a profit after tax of ₹225 crore for the quarter, compared with a loss of ₹208 crore a year earlier. Cash balance remained strong at ₹12,882 crore, which the company said provides continued capital flexibility.

On the business front, Paytm recorded consistent gains in consumer UPI market share for the third consecutive quarter. Consumer UPI GMV increased 35% over the past nine months, compared with industry growth of 16%. Merchant device subscriptions rose to 1.44 crore, with an addition of 27 lakh on a year on year basis. Customers availing financial services through the platform increased to 7.1 lakh from 5.9 lakh a year earlier.

The company also said it has received all three key payment licences from the Reserve Bank of India for online, offline, and cross border payments under Paytm Payment Services Limited. It added that onboarding of online merchants has resumed after receiving the payment aggregator licence in the previous quarter.

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