Paytm Swings to ₹123 Cr Profit in Q1 FY26, Lifts Outlook with Lending & AI Push

One97 Communications, the parent company of Paytm, has reported a consolidated net profit of ₹123 crore in the first quarter of FY26, driven by strong lending business and putting a cap on expenses. However, a year ago, the fintech major witnessed net loss of ₹839 crore.

Its consolidated revenue from operations increased 28% to ₹1,918 crore in Q1 FY26, compared to ₹1,502 crore in the same period last year. The firm’s contribution profit stands at ₹1,151 crore, up 52% year-on-year basis.

The growth in contribution profit was driven by improved net payment revenue, higher share of distribution of financial services revenue, and reduction in direct expenses.

Paytm’s EBITDA and PAT turned profitable at ₹72 crore (margin of 4%) and ₹123 crore respectively, demonstrating AI-led operating leverage, disciplined cost structure and higher other income.

The company said its cash balance stands at ₹12,872 crore, providing capital flexibility to expand merchant payments, distribution of financial services, and AI-led innovations.

Paytm's net payment revenue rose 38% (YoY) to ₹529 crore in the June quarter, supported by growth in high-quality subscription-based merchants and better margins from payment processing.

Meanwhile, revenue from the distribution of financial services doubled to ₹561 crore, driven by a surge in merchant loans, steady trail income from the DLG portfolio, and stronger collection efficiency.

The fintech also retained its leadership in the merchant payments space, with 1.3 crore device subscriptions now deployed across small businesses and large enterprises.

Its net payment revenue was up 38% YoY to ₹529 crore, led by growth in high quality subscription merchants and increase in payment processing margins.

The company's distribution of financial services revenue increased by 100% YoY to ₹561 crore, driven by growth in merchant loans, trail revenue from DLG portfolio, and improved collection performance.