One97 Communications (PAYTM) Q3 25/26 earnings summary

Executive summary

• Focus remains on core payment and financial services, with strong merchant ecosystem dominance and renewed push into consumer business using technology and product innovation rather than heavy spending.

• Revenue for the quarter ending December 2025 grew 20% year-over-year to ₹2,194 Cr, with EBITDA improving to ₹156 Cr and a margin of 7%.

• Customer acquisition and long-term monetization are key priorities, aiming to build a sustainable free cash flow business.

• The business continues to expand profitability while gaining market share in both merchant and consumer payments.

• 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.

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.

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

• Payment processing margin exceeded 4 basis points, driven by favorable instrument mix and growth in RuPay and EMI transactions.

• Contribution margin improved to 57% from 52% YoY.

• 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

• Management maintains a long-term outlook of 30%+ revenue growth and 15-20% EBITDA margin over the next 2-3 years.

• Expectation to offset the impact of PIDF withdrawal through higher subscription revenues and targeted sales, leveraging AI-driven sales planning.

• International expansion is being evaluated, with meaningful contributions expected in 2-3 years.

• Focus on expanding omnichannel merchant acquisition and scaling Paytm Money to a top-five player in three years.