One97 Communications (PAYTM) Q3 25/26 earnings summary

Executive summary

• Focus remains on core payment and financial services, with strong merchant ecosystem dominance and renewed push on consumer business through technology and product innovation.

• 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 offline merchant payments business was transferred to Paytm Payment Services Limited (PPSL), a wholly owned subsidiary, effective November 30, 2025.

• Buy Now, Pay Later (BNPL) and Paytm Postpaid are seeing rapid adoption, with over 100,000 customers and INR 100 crore in disbursements within six months.

• AI-led product development and cost optimization are central to operational strategy, with ongoing investment in high-quality user acquisition and retention.

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.

• Consolidated net profit for Q3 FY26 was ₹225 crore, compared to a net loss of ₹208 crore in Q3 FY25; nine-month net profit was ₹369 crore, versus a loss of ₹119 crore year-over-year.

• Payment processing margin exceeded 4 basis points, supported by favorable instrument mix and RuPay/UPI growth; expected to remain above this level.

• Like-for-like revenue growth was 25% year-over-year, with reported revenue growth at 20%.

• Financial services segment posted double-digit sequential growth, driven by merchant lending and BNPL expansion.

Outlook and guidance

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

• The company continues to focus on strengthening its merchant payments leadership and expanding its technology-powered payments platform.

• Expect to offset 30%-40% of PIDF revenue loss in the current quarter, with further recovery over time.

• Payment processing margin guidance may be revisited in 2-3 quarters, depending on market and regulatory trends.

• Focus on acquiring and monetizing high-quality merchants and consumers, aiming for 250 million monetizable customers in 3-4 years.