One97 Communications (PAYTM) Q3 25/26 earnings summary

Executive summary

• Focus remains on core payment and financial services, with strong merchant ecosystem dominance, renewed consumer acquisition, and expanding profitability and market share in both merchant and consumer payments.

• Strategic shift to technology and product-led growth for consumers, avoiding excessive marketing spend.

• Commitment to building a long-term, free cash-generating business, emphasizing sustainable monetization.

• 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.

• Mrs. Pallavi Shardul Shroff will cease to be Independent Director and committee member effective February 8, 2026, after completing her second term.

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.

• GMV up 24% year-over-year to ₹6.2 L Cr, with revenue up 22% in the same period.

• Payment processing margin consistently exceeds 4 basis points, supported by favorable instrument mix and RuPay/UPI growth.

• EBITDA margin improved to 7% from -12% YoY; EBITDA reached ₹156 Cr, up from a loss of ₹223 Cr in the prior year.

• 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 remains robust, targeting more than 30% growth with 15%-20% EBITDA margin over the next 2-3 years.

• 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.

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

• Payment processing margin expected to stay above 4 basis points for the next few quarters.