Revenue from operations during the period under review increased by 20.02% YoY to Rs 2,194 crore, driven by industry-leading customer monetization. The growth was led by higher payments GMV, increased merchant subscriptions, and stronger revenue from the distribution of financial services.
In Q3 FY26, contribution profit stood at Rs 1,249 crore, up 30% year-on-year. Contribution margin improved to 57%, driven by higher payment processing margins and an increased share of distribution of financial services revenue.
EBITDA in Q3 FY26 was Rs 156 crore, with an EBITDA margin of 7%, marking a Rs 379 crore year-on-year improvement, despite higher promotional expenses for consumer growth and the full impact of the new labour code.
Paytm UPI continued to gain market share for the third consecutive quarter. Its consumer UPI GMV grew 35% in the last nine months versus industry GMV growth of 16%, the company said.
Paytm said there was an ‘insignificant’ impact on revenue from industry stoppage of rent payments through credit card (PA PG guidelines, September 2025) and the Real Money Gaming (RMG) Act, August 2025, as the company had taken proactive compliance measures over the past few years.
Payments services revenue (including other operating revenue) grew 21% YoY to Rs 1,284 crore.
Net payment revenue increased by 25% YoY to Rs 613 crore, due to improved payment processing margin and an increase in merchant subscriptions, which grew by 27 lakh YoY to reach 1.44 crore. Payments GMV grew 24% YoY to Rs 6.2 lakh crore, the company said.
In Q3 FY 2026, distribution of financial services revenue grew 34% YoY to Rs 672 crore, driven by continued growth in distribution of merchant loans and wealth products.
This is despite lower volumes under the Default Loss Guarantee (DLG) program, which leads to lower revenue and lower other direct costs, the company said. Cash balance stood at Rs 12,882 crore as of the quarter ending December 2025.
During the quarter, the offline merchant business was transferred to Payments Services, a wholly owned subsidiary of the company, in line with regulatory guidelines.
Payments Services received final approval from the Reserve Bank of India (RBI) to operate as an Online Payment Aggregator. Further, the RBI authorised PPSL to operate as a Payment Aggregator for offline and cross-border payments, it said.
The company said, Vijay Shekhar Sharma, Chairman, MD & CEO, has been additionally appointed as managing director (MD) (designated MD & CEO) of PPSL for 5 years, with effect from 29 January 2026.
Paytm is India's leading mobile payments and financial services distribution company.
Shares of One 97 Communications slipped 2.03% to Rs 1,145 on the BSE.