Paytm surprises with Q1 profit; revenue surges 28% to ₹1,917cr
What's the story
One 97 Communications, the parent of fintech giant Paytm, has posted a consolidated net profit of ₹122.5 crore for the first quarter of FY26. This is a major turnaround from the loss of ₹839 crore it reported in the same period last year. The company's revenue from operations also saw a significant jump, rising by 28% during Q1 FY26.
Financial performance
Revenue from operations at ₹1,917 crore
The revenue from operations for One 97 Communications was ₹1,917 crore, an increase from ₹1,502 crore in the same quarter last year. The company's contribution profit stood at ₹1,151 crore (up 52% YoY), with a contribution margin of 60% (up 10% points YoY). This was driven by improved reduction in direct expenses, net payment revenue, and higher share of distribution of financial services revenue.
Financial stability
Cash balance at ₹12,872 crore
One 97 Communications reported a cash balance of ₹12,872 crore at the end of Q1 FY26. This gives the company enough capital flexibility to expand merchant payments, distribution of financial services, and AI-led innovations. The company's Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) before employee stock option costs was positive at ₹102 crore for the quarter under review.
Revenue sources
Net payment revenue up 38% YoY
One 97 Communications's net payment revenue was up 38% YoY to ₹529 crore. This growth was led by the rise in high-quality subscription merchants and an increase in payment processing margins. The distribution of financial services revenue also doubled YoY to ₹561 crore, driven by an increase in merchant loans, trail revenue from Default Loss Guarantee (DLG) portfolio, and improved collection performance.