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Fintech major Paytm reported a net profit of Rs 225 crore in Q3 FY26 ended December 2025, its third consecutive profitable quarter. Revenue from operations grew 20% year-on-year to Rs 2,194 crore, driven by strong UPI payment volumes and merchant subscriptions, according to a stock exchange filing released today.
Paytm Q3 FY26 Revenue Jumps 20% to Rs 2,194 Crore
One 97 Communications Ltd, Paytm’s parent company, reported the financial results in the regulatory filing. The company’s revenue from operations increased from Rs 1,828 crore in Q3 FY25 to Rs 2,194 crore in Q3 FY26, representing a 20% year-on-year jump.
Including other non-operating income of Rs 212 crore, Paytm’s total revenue reached Rs 2,406 crore during the quarter. For the nine-month period ending December 2025, the company’s revenue rose 24% to Rs 6,173 crore compared to Rs 4,989 crore in the previous year.
Payments services remained the primary revenue driver, generating Rs 1,284 crore, up 21% YoY. Net payment revenue grew 25% year-on-year to Rs 613 crore, while payments gross merchandise value (GMV) increased 24% to Rs 6.2 lakh crore.
Paytm Swings to Rs 225 Crore Profit from Year-Ago Loss
Paytm swung to a net profit of Rs 225 crore in Q3 FY26, compared to a loss of Rs 208 crore in the same quarter last year. On a sequential basis, the company’s profit jumped more than 10 times from Rs 21 crore recorded in Q2 FY26.
The profitability improvement was supported by controlled operational expenses. Employee benefits, which constitute 33% of overall costs, decreased 5% to Rs 721 crore in Q3 FY26. Payment processing charges increased 17.5% to Rs 671 crore, while marketing expenses rose modestly by 3.5% to Rs 146 crore.
Total expenditure stood at Rs 2,175 crore in Q3 FY26, lower than Rs 2,220 crore in Q3 FY25. The company’s EBITDA (earnings before interest, tax, depreciation and amortisation) reached Rs 156 crore, translating to a 7% margin.
Paytm UPI Transactions Grow 35%, Outpacing 16% Industry Rate
Paytm continued gaining UPI market share for the third consecutive quarter, with consumer transaction growth of 35% significantly outpacing the industry growth rate of 16% during Q3 FY26, according to the filing.
The merchant ecosystem expanded with subscriptions reaching 1.44 crore, following the addition of 27 lakh devices year-on-year. This expansion strengthened Paytm’s recurring revenue base through popular products like Soundbox devices.
RBI Grants Paytm Payment Aggregator License in Q3
The quarter was eventful beyond financial performance. Paytm received authorisation from the Reserve Bank of India (RBI) to operate as a payment aggregator for offline payments and cross-border transactions, marking a significant regulatory milestone.
The company granted employee stock options (ESOPs) worth Rs 76.6 crore under its ESOP Scheme 2019 during the quarter.
Elevation Capital, BNP Paribas Exit Paytm with Rs 2,887 Cr Sale
Paytm witnessed significant shareholding changes in Q3 FY26. Elevation Capital (formerly SAIF Partners) offloaded a 1.86% stake through a bulk deal worth Rs 1,556 crore.
Within days, BNP Paribas sold 1 crore shares valued at Rs 1,331 crore. Integrated Core Strategies also exited with a sale of 32.55 lakh shares worth Rs 410 crore.
What Paytm’s Financial Performance Means for Digital Payments Sector
The sustained profitability and market share gains demonstrate Paytm’s successful transition to a profitable growth model after regulatory challenges faced in 2024. The company’s ability to grow UPI transactions at double the industry rate while maintaining merchant device expansion signals strong competitive positioning.
The RBI‘s payment aggregator approval enables Paytm to tap into offline merchant acquiring and international payment processing, potentially opening new revenue streams beyond its core UPI business.
As of the latest trading session, Paytm’s share price stood at Rs 1,172, with total market capitalisation of Rs 74,963 crore ($8 billion), according to stock exchange data.
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