One 97 Communications, the parent company of Paytm, has announced a positive EBITDA of ₹156 Crore for Q3 FY26, marking a significant improvement driven by revenue growth and cost management. Revenue increased by 20% YoY to ₹2,194 Cr. The company witnessed consistent gains in the UPI consumer market share and expanded merchant subscriptions. Paytm is optimistic about long-term profitable growth, citing strategic investments in technology and expanded service offerings.
Financial Performance Highlights
One 97 Communications has announced its financial results for the third quarter of fiscal year 2026, highlighting a return to profitability and strong revenue growth:
- Revenue: Increased by 20% YoY to ₹2,194 Cr, driven by payments GMV, merchant subscriptions, and financial services.
- EBITDA: Reported a positive ₹156 Cr, with an EBITDA margin of 7%.
- Contribution Profit: Stood at ₹1,249 crore, reflecting a 30% YoY increase.
- PAT: Improved by ₹433 Cr YoY to ₹225 Cr.
Business Segment Performance
The company experienced notable growth across key business segments:
- Payment Services Revenue: Increased by 21% YoY to ₹1,284 Cr.
- Financial Services Revenue: Grew by 34% YoY to ₹672 Cr.
- Merchant Subscriptions: Increased to 1.44 crore.
Strategic Initiatives and Outlook
Paytm is focused on leveraging AI to expand its leadership in merchant solutions and drive higher UPI market share. Key strategies include:
- Expanding core merchant acquisition through AI-led initiatives.
- Driving consumer UPI adoption via product-led innovation.
- Maintaining strong expense management.
Updated Financial Targets
The company provided the following targets:
- Target mid-50s (%) contribution margin with no PIDF incentive going forward.
Regulatory and Compliance Updates
PPSL received authorisation for online and offline payment aggregation and cross-border transactions. This solidifies Paytm’s end-to-end payment aggregation capabilities.
International Business Expansion
Paytm Cloud Technologies Limited (PCTL) is expanding its international presence by:
- Incorporating new subsidiaries in Indonesia and Luxembourg.
- Issuance of shares in Paytm Arab Payments L.L.C (PAPL) to enhance business in the UAE.
Source: BSE
