One 97 Communications, the parent company of Paytm, reported a consolidated net profit attributable to equity holders of Rs 122.5 crore for the quarter ended June 30, 2025 (Q1 FY26), compared with a loss of Rs 838.9 crore in the same period last year.
Revenue from operations stood at Rs 1,917.5 crore, up 27.7% from Rs 1,501.6 crore in Q1 FY25. Its total income rose 31.7% year-on-year to Rs 2,158.9 crore from Rs 1,639.1 crore.
Employee benefits expense declined 32.5% to Rs 642.6 crore, compared with Rs 952.5 crore in the year-ago period. Payment processing charges increased 12.3% to Rs 580.9 crore from Rs 517.1 crore.
Other expenses were Rs 355 crore in Q1 FY26, down from Rs 420 crore in Q1 FY25.
Total expenses fell 18.6% to Rs 2,016.1 crore in the quarter, compared with Rs 2,476 crore a year earlier.
The company also posted positive EBITDA of Rs 72 crore, marking its first quarter of profitability across all major financial metrics.
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“This performance marks a key milestone in our journey,” the company said in its shareholder update. “We have turned profitable on both EBITDA and PAT metrics, driven by AI-led operating leverage, disciplined cost structure, and robust growth in our merchant ecosystem.”
Net payment revenue for the quarter rose 38% year-on-year to Rs 529 crore, supported by an expanding base of subscription merchants and higher payment processing margins. Gross merchandise value (GMV) processed through the platform reached Rs 5.4 lakh crore, a 27% increase over the previous year.
Merchant device subscriptions rose to 1.30 crore, up 21 lakh year-on-year.
The company said it its core payment processing operated at a breakeven but earned monetisation through device subscriptions and value-added services.
“We believe that over time, 40-50% of the 10 crore addressable merchant base will require subscription services,” the company said in its earnings release. It added that the full-stack payments gateway model, wherein it offers hardware, software, and financial services, helps it drive higher retention and monetisation than traditional POS-led models.
Revenue from the distribution of financial services rose 100% year-on-year to Rs 561 crore. Growth was led by increased disbursements in merchant loans, improved collection performance, and higher trail revenue from previously disbursed loans.
Approximately 5.6 lakh merchants and consumers availed loans, insurance, or broking services via the platform during the quarter. Repeat loans accounted for over half of merchant loan disbursements, indicating stable credit behaviour.
The company noted a shift in disbursements by its largest lending partner from the Default Loss Guarantee (DLG) model to a non-DLG structure. While this reduces upfront cost and risk, it is expected to result in slower revenue growth compared to disbursement growth in the coming quarters.
Edited by Kanishk Singh
