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Paytm (One 97 Communications Limited), India’s leading full-stack merchant payments platform, on Tuesday announced a Profit After Tax (PAT) of Rs 123 crore for the first quarter of FY26, marking a significant financial milestone for the company. The Noida-based fintech major attributed the growth to its expanding base of high-quality subscription merchants, increase in Gross Merchandise Value (GMV), and strong momentum in financial services distribution.
Operating revenue for the quarter surged by 28% year-on-year to Rs 1,918 crore. Paytm’s EBITDA stood at Rs 72 crore, while its contribution profit rose 52% YoY to Rs 1,151 crore. The contribution margin improved to 60%, reflecting better net payment margins, increased financial services share, and lower direct expenses.
Paytm also hit an all-time high in merchant subscriptions, reaching 1.30 crore. The company has further optimized operations by reducing device costs and enhancing the productivity of its sales teams, resulting in lower capital expenditure.
Reinforcing its leadership in the merchant ecosystem, Paytm continues to operate as India’s only AI-powered omni-channel payments platform—offering a complete tech stack that integrates hardware, software, and services.
"Based on current trends, we estimate over 10 crore merchants in India will accept digital payments, with 40–50% requiring subscription-based services to manage operations," the company said.
An early and aggressive adopter of AI in fintech, Paytm has embedded artificial intelligence across its operations—from merchant onboarding to transaction monitoring—ensuring greater efficiency and customer satisfaction.
With a strong financial base and an innovation-first approach, the company reiterated its commitment to digitally empowering India’s merchants and expanding its role in the country’s evolving digital economy.
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