Paytm Q1 Results: One97 Communications Returns to Rs 123Cr Profit, Revenue Rises 28%YoY, EBITDA Turns Positive

One97 Communications, the parent company of leading fintech platform Paytm, reported a strong turnaround in its financial performance for the first quarter (Q1) of FY26. The company posted a consolidated net profit of Rs 122.5 crore, a significant improvement compared to the net loss of Rs 839 crore in the same quarter last year.

This marks a key milestone for the company, as it moves from a loss-making position to profitability, reflecting improved operational efficiency and cost control measures.

Paytm Q1 Results 2026 Live: One97 Communications Revenue

In its Q1FY26 earnings, One 97 Communications reported that its revenue from operations grew by 0.3% on a sequential basis, coming in at Rs 1,918 crore, compared to Rs 1,911 crore in the previous quarter Q4 FY25.

While the quarter-over-quarter growth was modest, the company's year-on-year performance was more robust, with operating revenue increasing by 28% from Rs 1,502 crore in Q1FY25. This growth was primarily driven by a rise in the number of subscribing merchants, increased gross merchandise value (GMV) processed on the platform and strong traction in revenue from the distribution of financial services.

Paytm Contribution Profit in Q1 FY2026

Paytm's contribution profit, a key profitability metric rose to Rs 1,151 crore, representing a 52% year-on-year increase. The contribution margin also expanded significantly, reaching 60%, up by 10 percentage points compared to the same period last year. This improvement was attributed to several factors, including higher net payment revenues, an increased share of revenue from financial services distribution and a reduction in direct operating expenses.

One97 Communication EBITDA

For the quarter, Paytm also reported positive numbers in terms of profitability at both the operating and net levels. The company's Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) turned positive at Rs 72 crore, with an EBITDA margin of 4%. Net profit (PAT) also swung into the black at Rs 123 crore.

Furthermore, Paytm ended the quarter with a healthy cash balance of Rs 12,872 crore, giving it ample financial flexibility to pursue strategic growth initiatives. These include expanding its merchant payment ecosystem, accelerating the distribution of financial products, and investing in AI-led innovations to further enhance efficiency and user experience.

Paytm Market Leadership

Paytm's net payment revenue increased by 38% year-on-year to Rs 529 crore. This was driven by growth in high-quality subscription merchants and improved payment processing margins. Additionally, revenue from financial services distribution doubled year-on-year to Rs 561 crore due to growth in merchant loans and better collection performance.

The company claimed its "undisputed leadership" in merchant payments during this quarter. They reported having 1.30 crore merchant device subscriptions across MSMEs and enterprise payment merchants.