> ## Content Index
> Fetch the complete content index at: https://www.theglobalbanker.com/llms.txt
> Use this file to discover other available public pages before exploring further.

# Paytm returns to profit in Q1 FY2026 with net profit of INR 122.5 crore
- URL: https://www.theglobalbanker.com/paytm-returns-to-profit-in-q1-fy2026-with-net-profit-of-inr-122-5-crore/
- Published: 2025-07-22T14:09:00.000Z
- Updated: 2026-09-29T10:59:14.000Z
- Description: Paytm parent One97 Communications swung to a net profit of INR 122.5 crore in the April–June 2025 quarter from a loss of INR 838.9 crore a year earlier, as revenue from operations rose 28%.
- Author: TGB Editorial Team
- Tags: Fintech, Asia-Pacific, #archive

One97 Communications, the parent of Indian payments company Paytm, reported on 22 July 2025 a net profit of INR 122.5 crore for the first quarter of the 2025–26 financial year, the three months to 30 June 2025, compared with a net loss of INR 838.9 crore in the same quarter a year earlier. It was the company's first quarter of positive profit after tax driven by normal business operations.

Revenue from operations rose 27.7% year on year to INR 1,917.5 crore. Payment services revenue increased 18% to INR 1,044 crore, while revenue from financial services distribution doubled to INR 561 crore from INR 280 crore.

#### COSTS FALL AS MERCHANT BASE GROWS

Total expenses fell 18.6% year on year to INR 2,016.1 crore, with non-sales employee costs down 28% to INR 346 crore. Paytm said merchant subscriptions, which include its payment devices, reached an all-time high of 1.3 crore (13 million), while registered merchants rose 11% to 4.5 crore (45 million).

Paytm distributes loans on behalf of partner lenders rather than lending from its own balance sheet. The company said a majority of its merchant loans in the quarter were disbursed under a non-default loss guarantee model, with more than half going to repeat borrowers.

The company reported a cash balance of INR 12,872 crore. Its cash position had been strengthened by the sale of its entertainment ticketing business to Zomato for INR 2,048 crore in August 2024 and the sale of its stock acquisition rights in Japan's PayPay for INR 2,364 crore in December 2024.