One97 Communications (PAYTM) Q3 25/26 earnings summary

Executive summary

• Focus remains on core payment and financial services, with continued dominance in the merchant ecosystem and renewed emphasis on consumer growth through technology and product innovation.

• Revenue for the quarter ending December 2025 grew 20% year-over-year to ₹2,194 Cr, with EBITDA improving to ₹156 Cr and a margin of 7%.

• Profit after tax showed a significant year-over-year improvement, with a reduction in losses by ₹433 Cr compared to the same quarter last year.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, were approved by the Board on January 29, 2026.

• The business continues to expand profitability while gaining market share in both merchant and consumer payments.

Financial highlights

• Consolidated revenue from operations for Q3 FY26 was ₹2,194 crore, up from ₹1,828 crore in Q3 FY25; nine-month revenue was ₹6,173 crore, up from ₹4,989 crore year-over-year.

• Payment processing margin exceeded 4 basis points, with expectations to remain above this level in coming quarters.

• Contribution margin improved to 57% from 52% YoY; EBITDA margin improved to 7% from -12% YoY.

• Payment services revenue grew 19% YoY to ₹1,192 Cr; distribution of financial services revenue rose 34% YoY to ₹672 Cr.

• Net cash balance (excluding escrow and customer funds) stood at ₹12,182 Cr, with total cash including pre-funded escrow at ₹12,882 Cr.

Outlook and guidance

• Revenue growth outlook of over 30% and EBITDA margin of 15%-20% over the next 2-3 years remains intact.

• Expectation to offset the impact of the Payment Infrastructure Development Fund (PIDF) incentive expiry through higher revenues and targeted sales.

• International expansion is being evaluated, with meaningful contributions expected in 2-3 years.

• Management expects to accelerate growth as consumer credit cycles normalize and new products scale.

• Focus on acquiring high-quality, monetizable merchants and expanding cross-sell opportunities.