Paytm brand owner One 97 Communications, India’s full-stack merchant payments leader serving MSMEs and enterprises and a leading financial services distribution company, announced its financial results for the second quarter ended September 2025, reporting a strong improvement in profitability alongside solid revenue growth.
During the quarter, Paytm's operating revenue rose 24 % year-on-year to ₹ 2,061 crore, driven by continued growth in its payments and financial services businesses.
The company reported a profit after tax (PAT) of ₹ 211 crore, before a one-time charge for full impairment of ₹ 190 crore loan to our JV, First Games Technology Pvt Ltd.
Reported PAT stood at ₹ 21 crore. The result marks a significant improvement from the previous quarter, underscoring Paytm’s progress towards sustainable profitability.
EBITDA improved to ₹ 142 crore, with a 7 % margin, on account of revenue growth and operating leverage.
Contribution profit grew 35 % year-on-year to ₹ 1,207 crore, with a healthy 59 % margin, driven by higher net payment margins and an increased share of financial services revenue.
Paytm’s payment services revenue rose 25 % year-on-year to ₹ 1,223 crore, while net payment revenue increased 28 % to ₹ 594 crore.
Gross Merchandise Value (GMV) surged 27 % year-on-year to ₹ 5.67 lakh crore, supported by improved processing margins on account of higher growth of credit cards on UPI and affordability offerings (such as EMI).
The company’s merchant ecosystem continued to expand, with subscriptions reaching an all-time high of 1.37 crore, up 25 lakh year-on-year, reinforcing Paytm’s leadership in omni-channel merchant payments.
Its revenue from the distribution of financial services jumped 63 % year-on-year to ₹ 611 crore, led by robust merchant loan disbursements and improved collection performance experience for lending partners.
Over 6.5 lakh consumers availed Paytm’s financial services during the quarter, reflecting growing adoption across its ecosystem.
On the operational front, indirect expenses declined 18 % year-on-year and 1 % quarter-on-quarter at ₹ 1,064 crore. Marketing costs for consumer acquisition decreased 42 % year-on-year, reflecting stronger retention cohorts and improved monetisation.
The company said it will continue to invest strategically to further drive market share gains while maintaining a disciplined approach to spending.
