Paytm posts net profit of Rs 225 crore in December quarter, revenue up 20%

In the September quarter, the firm had posted a net profit of Rs 21 crore.

One97 Communications, the parent firm of Paytm, swung to a net profit of Rs 225 crore in the quarter ended December 31, a stock filing said on January 29.

The company had registered a net loss of Rs 208 crore in the corresponding period of the previous financial year.

The strong performance was attributed to higher payment transaction volume and value, merchant subscriptions (the popular soundbox devices), and the distribution of financial services (mostly personal and merchant loans) revenue.

In the September quarter, the firm had posted a net profit of Rs 21 crore, after writing off its real-money gaming investment post the government ban.

The company’s revenue from operations surged 20 percent to Rs 2,194 crore in the reported quarter, compared to Rs 1,828 crore in the year-ago period. The revenue stood at Rs 2,061 crore in the July to September period, the filing showed.

The Noida-based fintech's financial services revenue went up 34 percent year-on-year and stood at Rs 672 crore. Customers availing financial services through Paytm grew to 7.1 lakh during Q3 from 5.9 lakh during the previous fiscal.

The company's margin expansion was also helped by higher festive sales and lower loan costs

distribution under default loss guarantee (DLG), where Paytm will have to earmark funds for any gap in collections.

The company has seen its net payment revenue go up 25 percent YoY at Rs 613 crore. "We continue to see an increase in payment processing margin on account of the higher growth of credit cards, including credit cards on UPI and affordability offerings (such as EMI)," it said in the media statement.

Paytm has gained market share in UPI payments for the last three quarters, and its gross merchandise value (GMV) went up by 35 percent, compared with industry GMV growth of 16 percent, the company said.

Paytm added 27 lakh new Soundbox subscriptions, which stood at 1.45 crore at the end of the December quarter. The merchants pay around Rs 100 per device, net of taxes and other discounts.

The company's cash balance approached Rs 13,000 crore, strengthening its balance sheet.

During the quarter, Payments Services Limited (PPSL), a wholly owned subsidiary of the company, gained all three key payment licences - offline, online and cross border.

Paytm has also appointed its CEO Vijay Shekhar Sharma as the CEO and managing director of PPSL. He would not be drawing any salary for the additional role.

"In order to ensure that our leadership in merchant payments is reinforced, and to provide continuity of leadership for merchant payments, Sharma has additionally been appointed as MD and CEO of PPSL for a period of five years, effective from January 29, 2026, subject to applicable approvals, if any," the company said in a statement to stock exchanges.