Paytm Hits ₹123 Cr Profit in Q1 FY26 – Merchant Payments at All-Time High

Paytm, officially known as One 97 Communications Limited, has reported a profit of ₹123 crore in the first quarter of FY26. This marks a strong financial performance for the Noida-based company, which leads India’s digital payments for merchants, especially small and medium businesses. Paytm’s revenue for the quarter reached ₹1,918 crore, showing a 28% year-on-year growth. This was supported by more high-quality merchant subscriptions, a rise in Gross Merchandise Value (GMV), and the success of its financial services. The company's EBITDA stood at ₹72 crore, while contribution profit jumped 52% to ₹1,151 crore. The contribution margin rose to 60%, thanks to better payment margins and lower direct costs.

Record Growth in Merchant Subscriptions

The company now has a record 1.3 crore merchant subscribers. Paytm has also improved efficiency by cutting down on the cost of its devices and making its sales teams more productive. It has reduced its capital spending while still expanding its user base. The firm claims to be India’s first and only AI-powered omni-channel payments platform, offering a complete package of hardware, software, and services for digital payments.

Future Goals and Focus on AI

Paytm expects that over 10 crore merchants in India will adopt digital payments, with nearly half needing subscription-based services to manage their businesses. With its focus on innovation and strong financial growth, Paytm aims to stay at the forefront of India’s digital economy. The company has deeply integrated AI across its operations—from merchant onboarding to monitoring transactions—ensuring smoother service and greater customer satisfaction.