Paytm parent One97 Communications Ltd posted a net profit of Rs 225 crore for the quarter ended December 31 (3Q FY26), marking its third consecutive profitable quarter. The company had posted a net loss of Rs 208 crore during the same period last year.

The turnaround was driven by strong growth in payment transactions, merchant subscriptions, particularly sound box devices, and the distribution of financial services, including personal and business loans.

Operating income rose 20% year-on-year to Rs 2,194 crore, supported by a 24% increase in gross merchandise value (GMV) to Rs 6.2 crore. The company’s EBITDA improved to Rs 156 crore with a margin of 7%, a year-on-year improvement of Rs 379 crore. Indirect costs declined by 8% to Rs 1,092 crore, thanks to lower employee expenses and provision for bad debts.

Paytm’s payment services revenue grew 21% year-on-year to Rs 1,284 crore, while net payment income rose 25% to Rs 613 crore. Merchant subscriptions reached 1.44 million, with 27,000 devices added over the past year.

Revenue from financial services distribution rose 34% year-on-year to Rs 672 crore. Contribution profit grew 30% to Rs 1,249 crore, with a contribution margin of 57%.

Paytm also benefited from RBI’s Payments Infrastructure Development Fund (PIDF) incentives, earning Rs 216 crore in the nine months ended December. Although the PIDF will expire at the end of 2025, the company expects its contribution margin to remain in the mid-50% range.

The firm highlighted gains in consumer UPI share, with its UPI GMV growing 35% in the past nine months, more than double the industry growth of 16%. Backed by a strategy that prioritizes artificial intelligence and product-led innovation, Paytm continues to strengthen its leadership in merchant categories and improve unit economics.

The company ended the quarter with a cash balance of Rs 12,882 crore.

Shares of One 97 Communications Limited closed the day at Rs 1,171.80 (up 0.44%) on 29 January.