Digital payments major Paytm reported a net profit of Rs 225 crore in the third quarter of the current fiscal, swinging from a loss of Rs 208 crore in the year-ago period. The Noida-headquartered payments firm also saw its operating revenue jump 20% to Rs 2,194 crore, from Rs 1,828 crore a year back.
The growth in the topline of the business was mainly driven by higher payment processing volumes, expansion of the financial services business, and increasing merchant subscriptions.
The company has managed to keep its marketing costs in check, spending around Rs 140 crore in the December quarter, roughly the same as the previous two quarters. The payments major spent Rs 69 crore on incentives, up from Rs 37 crore in the September quarter due to the gold coin campaign, which was aimed at increasing customer retention.
It was around Rs 140 to 145 crore over the last three quarters.
At Rs 721 crore, employee expenses continued to be the highest cost head for the company, but it was slightly lower than Rs 756 crore a year back. The company’s overall expenses stood at Rs 2,175 crore, down from Rs 2,220 crore a year back.
Paytm said that it has a cash balance of Rs 12,882 crore, which can be used for corporate expansion and business development. The company further said it had earned Rs 216 crore in incentives from the PIDF (Payments Infrastructure Development Fund), which was operational till December 2025. Now the company will focus on higher revenue from the business channels to offset the absence of this revenue line.
The firm has managed to grow its merchant subscriptions to 1.4 crore by the end of the December quarter, from 1.37 crore in the September quarter. More such subscriptions means greater revenues from payment processing, and a higher opportunity to cross-sell financial products.
While the merchant business has grown, Paytm has found it tough to acquire retail users, many of whom had left the platform after the Reserve Bank of India shut down its payments banking business. Here, the company’s monthly transacting users stood at 7.6 crore, compared to 7 crore a year back.
In a separate stock exchange filing, the firm said it had appointed Vijay Shekhar Sharma, the chairman of One 97 Communications (which runs Paytm), as the chief executive officer of Paytm Payment Services (PPSL).
One97 recently moved the entire offline and online payments business under this subsidiary entity. Sharma will not take any separate remuneration from PPSL for this, the company said. PPSL received the final approval from the RBI for its payments aggregator business in December 2025.
Additionally, Pallavi Shroff, an independent director on the board of the company, will be completing her second stint in the role and will demit the position on February 8, the company said.
The growth in the topline of the business was mainly driven by higher payment processing volumes, expansion of the financial services business, and increasing merchant subscriptions.
The company has managed to keep its marketing costs in check, spending around Rs 140 crore in the December quarter, roughly the same as the previous two quarters. The payments major spent Rs 69 crore on incentives, up from Rs 37 crore in the September quarter due to the gold coin campaign, which was aimed at increasing customer retention.
It was around Rs 140 to 145 crore over the last three quarters.
At Rs 721 crore, employee expenses continued to be the highest cost head for the company, but it was slightly lower than Rs 756 crore a year back. The company’s overall expenses stood at Rs 2,175 crore, down from Rs 2,220 crore a year back.
Paytm said that it has a cash balance of Rs 12,882 crore, which can be used for corporate expansion and business development. The company further said it had earned Rs 216 crore in incentives from the PIDF (Payments Infrastructure Development Fund), which was operational till December 2025. Now the company will focus on higher revenue from the business channels to offset the absence of this revenue line.
The firm has managed to grow its merchant subscriptions to 1.4 crore by the end of the December quarter, from 1.37 crore in the September quarter. More such subscriptions means greater revenues from payment processing, and a higher opportunity to cross-sell financial products.
While the merchant business has grown, Paytm has found it tough to acquire retail users, many of whom had left the platform after the Reserve Bank of India shut down its payments banking business. Here, the company’s monthly transacting users stood at 7.6 crore, compared to 7 crore a year back.
In a separate stock exchange filing, the firm said it had appointed Vijay Shekhar Sharma, the chairman of One 97 Communications (which runs Paytm), as the chief executive officer of Paytm Payment Services (PPSL).
One97 recently moved the entire offline and online payments business under this subsidiary entity. Sharma will not take any separate remuneration from PPSL for this, the company said. PPSL received the final approval from the RBI for its payments aggregator business in December 2025.
Additionally, Pallavi Shroff, an independent director on the board of the company, will be completing her second stint in the role and will demit the position on February 8, the company said.