Paytm Q1 FY 2026: Solidifies Unrivalled Leadership in India’s Merchant Payment Business, turns Profitable with ₹123 Cr PAT

We have announced our financial results for Q1 FY26, and turned profitable across all key financial metrics, including EBITDA and Profit After Tax (PAT). The company expects continued improvement across all key profit metrics in the coming quarters.

“In the June-ending quarter, we reported a PAT of ₹123 Cr and EBITDA of ₹72 Cr,” said the company.

Our operating revenue rose 28% YoY to ₹1,918 Cr. Contribution profit increased 52% YoY to ₹1,151 Cr with the contribution margin improving to 60%, on account of higher share of distribution of financial services revenue, increase in net payment revenue and lower other direct expenses.

You can read the Q1FY26 results here:

The net payment revenue rose 38% YoY to ₹529 Cr, led by growth in high-quality subscription merchants and increase in payment processing margins, as we consolidated our leadership in merchant payments. Financial Services revenue grew 100% YoY to ₹561 Cr, driven by continued expansion in merchant loans, trail revenue from Default Loss Guarantee (DLG) portfolio, and improved collection performance.

As of June 2025, merchant subscriptions were at an all-time high of 1.30 Cr. With growth in device merchants, we continue to enhance operational efficiencies and reduce our capital expenditure (CAPEX) by lowering device costs, ramping up and increasing sales team productivity.

India’s Full Stack Merchants Payments Leader

“We remain India’s first and only AI-powered omni-channel payments platform, providing an end-to-end seamless payments tech stack, including hardware, software, and services,” said the company.

On the back of this, the company estimates that over 10 Cr merchants will accept digital payments, and anticipates that 40-50% of them will require subscription-based services for managing their business operations.

As one of the earliest and most aggressive adopters of AI in India’s fintech space, we have embedded AI into each product and service journey, including merchant onboarding, transaction monitoring while ensuring customer delight.

We remain grateful for your continuous support and remain committed to our mission to building a profitable company and creating shareholder value while driving digitisation and inclusive financial access