Founder, MD, and CEO of One97 Communications Ltd.Bengaluru: Paytm on Thursday reported a net profit of ₹225 crore for the FY26 third quarter ended December, swinging from a loss of ₹208 crore a year earlier.
The Noida-headquartered payments firm saw its operating revenue jump 20 per cent year-on-year to ₹2,194 crore from ₹1,828 crore.
The growth in the topline of the business was mainly driven by increasing payment processing volumes, expansion of the financial services business and increase in merchant subscriptions.
The company managed to keep its marketing costs under check over the last one year. It incurred around ₹140 crore in marketing spends in the December quarter. Its expenses against incentives stood at ₹69 crore, up from ₹37 crore in the September quarter. The push was driven by a gold coin campaign aimed at increasing customer retention.
At ₹721 crore, employee expenses continued to be the highest cost point for the company in the last quarter. But it was slightly lower than ₹756 crore a year back.
Overall, expenses stood at ₹2,175 crore, down slightly from ₹2,220 crore a year back.
On the business side, Paytm said it has cash balances of ₹12,882 crore on its books, which can be used for corporate expansion and business development.
The company earned ₹216 crore in incentives through the PIDF (Payments Infrastructure Development Fund), which was operational till December 2025. Now, it will focus on higher revenue from the business channels to offset this loss of revenue line, Paytm said.
The firm has managed to grow its merchant subscriptions to 14 million by the end of December from 13.7 crore at the end of September 2025. More merchants with subscriptions indicated greater revenues from payment processing and a higher opportunity for cross-selling of financial products.>
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