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Paytm Posts Third Straight Quarterly Profit at Rs 225 Crore, UPI Share Soars

One 97 Communications Ltd, Paytm's parent company, reported a profit after tax of Rs 225 crore for the December quarter, marking its third consecutive profitable quarter. The company's operating revenue grew 20% year-on-year to Rs 2,194 crore, driven by strong performance in payments and financial services distribution. Paytm significantly outperformed the broader UPI ecosystem, with its consumer transaction growth of 35% far exceeding the industry's 16% growth rate. The fintech firm also expanded its merchant base to 1.44 crore subscriptions and reported a strong cash balance of Rs 12,882 crore to fund future growth.

Key Points: Paytm Q3 Profit Rs 225 Cr, UPI Growth Outpaces Industry

  • Third straight profitable quarter
  • UPI growth outpaces industry by wide margin
  • Merchant subscriptions hit 1.44 crore
  • Revenue from financial services jumps 34%
2 min read

Paytm records third consecutive quarter profit at Rs 225 Cr; gains UPI Marketshare outpacing industry growth rate

Paytm reports third consecutive quarterly profit of Rs 225 crore, with 35% UPI transaction growth significantly outpacing the industry average of 16%.

"Paytm's UPI GMV growing 35%, well ahead of the industry growth of 16%. - Company Report"

New Delhi, January 29

One 97 Communications Ltd on Thursday reported a profit after tax of Rs 225 crore for the December quarter, marking its third consecutive profitable quarter, as industry-leading customer monetisation and sustained UPI market share gains helped drive growth across its core payments and financial services businesses.

The company continued to outperform the broader UPI ecosystem, with consumer transaction growth (35%) significantly ahead of industry levels (16%) during the quarter.

During the quarter, Paytm's operating revenue climbed 20% year-on-year to Rs 2,194 crore, driven by higher payments volumes, an expanding merchant base and higher contribution from financial services distribution. Earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter stood at Rs 156 crore, translating into a 7% margin, reflecting a sharp year-on-year improvement of Rs 433 crore. The company said indirect expenses fell 8% YoY, supported by lower employee stock option costs and reduced provisions for doubtful debt.

Payments continued to be a key growth driver, with payments services revenue rising 21% YoY to Rs 1,284 crore, while net payment revenue grew 25% YoY to Rs 613 crore. Payments GMV increased 24% YoY to Rs 6.2 lakh crore, indicating sustained momentum across merchant and consumer transactions.

Paytm's merchant ecosystem also expanded during the quarter, with merchant subscriptions reaching 1.44 crore, following the addition of 27 lakh devices year-on-year, further expanding its recurring revenue base. On the consumer side, the company recorded market share gains in UPI transactions for the third straight quarter, with Paytm's UPI GMV growing 35%, well ahead of the industry growth of 16%.

Revenue from the distribution of financial services segment rose 34% YoY to Rs 672 crore, driven by growth in distribution of merchant loans and wealth products. Contribution profit increased 30% YoY to Rs 1,249 crore, with contribution margin improving to 57%, supported by a favourable revenue mix and lower direct costs.

As of the end of the quarter, Paytm reported a cash balance of Rs 12,882 crore, which it said provides ample headroom to fund growth initiatives. The company said it is reinforcing its leadership across small and large merchants, online and offline, through deeper adoption of its full-stack payment solutions, with product innovation and AI-led merchant acquisition improving unit economics and driving sustained profitability.

- ANI

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Reader Comments

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Priya S
Impressive numbers, especially the 35% UPI growth vs industry's 16%. It shows they're doing something right with user experience. My entire family uses Paytm for everything now. However, I hope this profitability means they can reduce some of the transaction charges for merchants, especially the small ones.
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Rohit P
Cash balance of almost 13,000 crore is huge! That gives them a lot of room to innovate and compete. The focus on merchant subscriptions is smart – recurring revenue is key for stability. Good to see an Indian company holding its own.
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Sarah B
As someone who moved to India recently, the digital payment ecosystem here is amazing. Paytm, along with others, has made transactions so seamless. This kind of growth story is what attracts global investors to the Indian market.
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Vikram M
Profit is good, but the real test is sustaining it. The competition from PhonePe and Google Pay is fierce. They need to keep innovating – maybe more focus on tier 2/3 cities and rural areas where penetration can still grow massively.
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Kavya N
The growth in financial services distribution (34%!) is the hidden gem here. Moving from just payments to loans and wealth management is a brilliant strategy. It shows they understand the Indian consumer's need for a one-stop financial app. 👏

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